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Sciative Knowledge Series : Airline Pricing – Still primitive in otherwise optimized industry

Airline Pricing – Still primitive in otherwise optimized industry

Monday, June 6th 2016, 6.30 PM IST

Abstract

  • Airlines are by far the beneficiary of some of the most advanced optimization and analytical models amongst any industry in the world. Primarily driven by the need to realize or save “the last dollar”, this industry has been the breeding ground for several breakthroughs in the fields of Revenue Management, Network Optimization, Crew Scheduling etc.
  • Despite this rich legacy, and enormous amount of research dollars, the field of Pricing in airlines is still primitive, relatively speaking. Prices are set for the most part to match competition and not based on sound analysis or any notion of price-demand elasticity. 
  • In this talk, after introducing the field of Airline Revenue Management and the relationship between seat inventory management and pricing, we will discuss the complexity surrounding airline pricing, and opportunities for analytics-driven price optimization.

Speaker

Raj Sivakumar

Bio

Raj Sivakumar heads the Travel strategy, technology and consulting practice in WNS Global Services, one of the largest Business Process Management companies in the world. Raj has had more than 23 years of experience in the travel and aviation industry, with leadership roles in Revenue Management, Pricing, Network Planning, Global Sales, Information Technology, Strategic Sourcing and Research and Development. 

Prior to joining WNS, Raj was the Chief Commercial Officer in Jet Airways – the leading airline in India. In this role Raj was oversaw a five-fold expansion in Jet Airways’ network and was instrumental in the implementation of several Revenue Management and Pricing strategies. Before that Raj spent 15 years at United Airlines in Chicago. Raj led the Research and Development division for most of this tenure, deploying advanced optimization models in Revenue Management, Planning, Crew Scheduling, etc.

Raj has a Masters and Ph.D. in Operations Research. Raj lives with his wife and son in Mumbai.