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3 Airline Contracting Changes You Should Know

The ability to use 2019 data has expired. Airlines are ready, and need, 2022 data to judge what actually happened. Prism, the airline corporate contracting data repository, has a shelf life of two years. 2015 to 2019 was a period of profitability for airlines, but COVID has wiped out all those profits and carriers need to recover with amended agreements. To that end, look for more stringent enforcement of contracts and performance targets to ensure a return to profitability.

To meet this goal, airlines are introducing dynamic pricing and the ability to present multiple options in a fare beyond just price and schedule, with the price created after consumption. This allows travelers to search for the best option for their needs, such as seat pitch, legroom, services onboard, and upgradeability.

Revisit your booking channel strategy, as loyalty program identification is likely to become a key connection point to access these new features. In order to measure the success of these booking channels, it is important to communicate the benefits to travelers, as this could result in a better overall experience.


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