Ancillary Sales and Dynamic Pricing: Fighting Through the Trough of Disillusionment

Summary

The idea that airlines could unbundle their content is not new, but it took a new direction in 2009 when they began using XML as a basis for data exchange. Most new initiatives that are triggered by technology go through the technology-hype cycle as described by Gartner Research. Expectations initially spike; this is followed by a letdown as the reality of the challenge sinks in (the trough of disillusionment). Then the slope of enlightenment ensues, leading to the plateau of productivity. In airline ancillary sales, various stakeholders are in decidedly different places along this path. This analysis will focus on the latest developments across the airline-ancillaries landscape to understand the current status and prognosis.