How Airlines Are Using Big Data to Price Your Ticket

howairlinesbigdataprice

Airlines are now able to collect more data than ever on their passengers, and they’re using this data to build profiles on individual passengers. By building individual profiles on passengers with information such as lifestyle purchase choices, flying habits, and even passenger financial position, they’re able to come up with clever ways to give you pricing options for flights. This means that your travel and daily habits give airlines a glimpse into your price sensitivity and what you’re likely to be willing to spend on a plane ticket.

To understand how data is becoming important for airlines and how airline booking engines are getting more sophisticated, we’re going to look at how data about each passenger can be used, analyzed, and combined with other data sets. The analysis of data is a smart way for airlines to increase ticket sales because it allows them to understand passenger motivation for purchasing various products.

To get a clear understanding of passenger travel and other behavior, airlines heavily promote their frequent flyer programs. By getting customers to join loyalty programs, airlines have the opportunity to record behavior with a specific passenger tied to a number. [Read More]