Making Data Work for Merchandising

The optimized pricing strategy uncovered $100M in annual upsell revenue, exceeding the revenue plan for a more advanced dynamic pricing program. The carrier achieved this without any new technology platforms, demonstrating that strategic thinking and data-driven decision making can deliver massive value from existing assets.
Situation
Despite implementing the industry's most advanced merchandising platform at the time, a North American carrier was still struggling to maximize revenue from their premium economy seating product. Despite having premium seats available prior to departure on most flights, the pricing strategy wasn't capturing customer willingness to pay, and the product was underperforming revenue expectations.
Approach
Rather than immediately implementing complex dynamic pricing, we focused on understanding customer behavior patterns and optimizing the existing pricing framework. We started by combining flown seat assignments with point-in-time EMD (Electronic Miscellaneous Document) and loyalty status data to understand what premium seats were paid versus given away as entitlement or for operational reasons. We combined this sold versus flown view with flight segmentation and competitive analysis to identify pricing sweet spots.
Solution
We developed a variable pricing strategy that could adjust premium seat prices based on route characteristics, booking patterns and competitive best practices. The solution leveraged existing revenue management and merchandising systems that simply needed more advanced business rules and decision frameworks, not additional technology investment.





