American Airlines released a video today in which they explain how airline pricing works:
That’s truly one of the briefest yet useful explanations I’ve seen from someone in the industry. Well, minus the first sentence about the airline industry “being unlike any other industry, because [they’re] selling a perishable item.”
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Back in the mid 1990's, when automation of yield management was relatively new, AA lost about $50 million dollars in revenue when a software developer made an error causing AA to stop selling cheap seats too soon. I think that's what they call a "career limiting move". :-)
@Ryan H They have to offer either a 24 hour refund or a 24 hour hold.
@oleg - I believe all US airlines have to offer the 24 hour refund policy because of a law that came into effect in January.
LondonTim, LOL
"There's a lot of transparency in our industry". Ok Rev Man - tell us how YQ works
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