The Future of Airline Distribution and Revenue Management

Abstract

With the steep decline in asset values in 2008 and the deepening worldwide economic crisis, these are uncertain times for the tourism industry. In 2009 demand dramatically weakened across all customer segments. Under these economic conditions, airline CEOs are focused on airline profitability, capacity reductions, economic slowdown, escalating fuel costs, low-cost carrier (LCC) competition, ancillary revenues, channel efficiency, alliances/joint ventures and reducing complexity (Vinod, 2009b). Many of these core initiatives are influenced by Revenue Management and product distribution.