The hidden factor behind your ticket purchase. Exploring the link between sales data and airline offers

Without a doubt, the Super Bowl is one of the largest sporting events, significantly affecting air travel. Millions of fans from all over the United States and around the globe meticulously plan their journeys to witness this major event. For example, when the Super Bowl is about to take place, cities like Las Vegas prepare for a massive influx of tourists. Airports increase flight frequencies to meet the demand for travel related to this event.

As an employee of Sabre Poland, you probably know a lot about flying. For instance, you know there is more than one option for every flight path out there. You also know that when looking for a flight, we use several comparison sites and brokers, and check results from several airlines. Prices can vary, and the broker’s site may be cheaper or more expensive than the airline directly.

You also most likely live in Krakow, which is why planning a trip to Las Vegas can be a daunting task. We have a few recommendations that might be interesting for you.

✈️  KRK-FRA-DEN-LAS (Krakow – Frankfurt – Denver – Las Vegas)

✈️  KRK-ZRH-ORD-LAS (Krakow – Zurich – Chicago – Las Vegas)

✈️  KRK-AMS-SLC-LAS (Krakow – Amsterdam – Salt Lake City – Las Vegas)

✈️  KRK-MUC-SFO-LAS (Krakow – Munich – San Francisco – Las Vegas)

✈️  KRK-VIE-LHR-LAS (Krakow – Vienna – London – Las Vegas)

✈️  KRK-HEL-DFW-LAS (Krakow – Helsinki – Dallas – Las Vegas) 

When planning a trip, many of us are wondering about the criteria airlines use to rank flight options. Airlines give results according to the cheapest, fastest and recommended flights, but it’s up to you, doing research, to decide what you prefer. Are you aware of the numerous factors that impact the decision-making process when choosing a flight from Krakow to Las Vegas?

From Trends to Preferences 

In addition to apparent criteria such as flight duration, price, and travel time, there are less noticeable factors that can significantly determine the order of presented options. Artificial intelligence, machine learning, and big data analysis facilitate more accurate planning and tailor-made travel experiences. Data collected during ticket sales is a crucial resource for airlines. It allows for tracking trends, discovering hidden routes, and planning journeys in line with passengers’ needs. Understanding trends and customer preferences, and adapting strategies accordingly is the key to success. By understanding which routes and services passengers prefer, airlines can deliver exactly what travellers are looking for. But is that all? Is there more to consider beyond raw data? 🤔

Sales Data Analysis 

Airlines carefully analyse whether the connections they offer align with customers’ preferences and needs. They rely on sales data to check whether the presented result in ticket purchases. Each proposed connection is subject to careful evaluation based on these standards. The business goal is to sell every ticket, every seat. This is where the Revenue Management mechanism comes in, which, seeing that a particular connection is not selling, raises the price of those connections that are selling and lowers the price of those that are not selling. Since airlines aim to sell every seat with maximum profit, analysis of what sells well and what doesn’t is crucial. Demand must match with supply, so that ultimately everything sells. Even if a particular connection is not ranked at the top of the recommendation list, it is still available for purchase. However, airlines strive to adapt their offer to customer preferences. Sales data analysis plays a vital role in shaping airlines’ sales and promotional strategies.

An old proverb says: every man to his taste. Thus, people may have different requirements and preferences for reaching their destination. Some individuals may focus primarily on travel time, regardless of cost, while others prioritise travel expenses, regardless of flight duration or the number of connecting flights. The process of searching for flights and finding the best connections can involve many steps, which is why booking systems have extensive data to analyse. Therefore, less obvious solutions may be overlooked, causing a loss of potential customers. Airlines and booking platforms meet the requirements of all types of travellers. For this reason, it’s crucial to analyse sales data that can be gained from many different sources.

Customers are Airline Strategists too

In today’s air travel landscape, customers are more than passengers as they actively contribute to shaping airline industry strategy. People are searching through many various offers for airline connections themselves, browsing dozens of options, comparing prices and choosing the best routes. It’s fascinating how their everyday behaviours become a valuable source of information for airlines.

Here’s how it works: when a given route becomes popular among customers, airlines react promptly. But how? Well, by analysing bookings and sales patterns, they can identify the latest trends and preferences. When they notice that a certain route is gaining popularity and starting to generate more revenue, they start promoting what doesn’t sell well yet, and they continue to extract profits from tickets that do sell well.

Thus, customers contribute to shaping airlines’ strategy. Their travel choices become the foundation for the carriers’ business operations. What seems like a normal decision for the traveller becomes valuable information (and data source) for airline companies. These findings are then used to optimise offerings, adjust prices, and even introduce new routes.

This is an interesting paradox of the modern aviation market. While browsing offers and booking tickets, we are shaping the market and airline companies’ strategies. Our actions not only reflect individual travel preferences but also play a crucial role in a broader context that impacts business-related decisions.

Buying a ticket to Las Vegas three months ahead doesn’t seem like much, but within a week, airlines could even observe many thousands of searches or purchases for similar tickets daily. For example, routes like KRK-FRA-DEN-LAS (Krakow – Frankfurt – Denver – Las Vegas) or KRK-ZRH-ORD-LAS (Krakow – Zurich – Chicago – Las Vegas) can become incredibly popular. This trend is not limited to just one route.

The main hubs offer the shortest flights, as they have the most connect flight options. This affects visibility of flights like KRK-AMS-SLC-LAS (Krakow – Amsterdam – Salt Lake City – Las Vegas) or KRK-MUC-SFO-LAS (Krakow – Munich – San Francisco – Las Vegas).

When prices go up on these popular routes, customers start seeing alternative connections that might not have been initially apparent. The combination that has sold tends to increase in price, while those that have not sold remain at a lower level (possibly like the initial one). Routes such as KRK-VIE-LHR-LAS (Krakow – Vienna – London – Las Vegas) or KRK-HEL-DFW-LAS (Krakow – Helsinki – Dallas – Las Vegas) start moving up in search results, showing growing interest. Thus, there begins to be a gradually increasing gap between cheap (alternative) and expensive (popular) options.

As these alternative routes grow in popularity, airlines analyse the data closely, identifying current trends in booking and search patterns. This allows them to adapt their strategies, optimise flight schedules, adjust pricing, and even introduce new routes in response to the changing preferences of their customers.

After all, the more airlines know about their customers’ preferences, the better they can tailor their offerings with attractive fares, convenient routes and additional benefits. Through careful analysis of these trends, airlines can better understand travellers‘ requirements, ensuring that their offerings remain competitive and attractive in an ever-changing market. This data-driven approach to exploring customer behaviours turns individual travel choices into valuable insights that shape the future of the air industry. This creates a closed-loop system where customer preferences stimulate airline strategies, which in turn impacts customer decisions. Through ongoing refinement of their services via a beneficial feedback-related approach, airlines can improve the overall travel experience, cultivating increased customer loyalty and satisfaction.

How it all comes together

The Super Bowl serves as a compelling case study of how sales data and airline offers interact, especially in the dynamics of air travel. Examining the sales data before the event reveals a fascinating narrative of demand and response.

Long before the event: Airlines start their initial analysis and planning based on sales data from past years. They set their flight schedules many months in advance, using archival data to predict demand and optimise their offerings for the upcoming event.

At this point, airlines begin to observe an increase in searches and bookings for flights to the host city, such as Las Vegas. The sales data starts to reveal early trends, including the most popular routes and the airlines of first choice among travellers anticipating the event. Moreover, brokers allow many customers to set up price alerts based on their specific budget pool. Customers set these alerts so that when the prices match their budget, the tickets are automatically purchased, leading to increased interest and subsequent price rises.

Later on, airlines employ revenue management and pricing strategies, such as dynamic pricing, yield management, and fare class management, to adjust prices according to demand and maximise revenue. This trend is apparent not only in the increasing prices of premium class tickets but also in economy class. As prices go up, ticket availability decreases, putting pressure on customers who are waiting for better deals. This often leads to a self-perpetuating cycle where the remaining customers either choose alternative routes or agree to pay higher prices.

As the event date approaches, there is a final surge in bookings. Furthermore, with rising ticket prices for flights to Las Vegas, customers’ attitudes towards alternative flights to nearby airports that offer convenient connections to the city improve. Throughout this period, price alerts persistently prompt purchases, increasing demand and prices and putting more pressure on travellers who haven’t decided yet.

Right before the event: The peak travel period begins, with airports bustling and airlines fully prepared to handle the influx of travellers. Airlines consider many aspects, including economic conditions, weather, regulations, strikes, and human factors, to prepare for increasing number of passengers. The sales data reflects months of anticipation and meticulous planning at this stage. The pressure on remaining customers intensifies as prices increase and ticket availability decreases, prompting many to finalise their travel plans, often at higher costs.

After the event: Following the Super Bowl, there is a notable decline in travel to Las Vegas, as evidenced by a drop in demand captured in the sales data. This demonstrates the cyclical patterns of air travel dynamics during major events. Airlines, often unaware of the exact purpose of a passenger’s journey, must use data to monitor decreasing interest in some destinations while recognising the growing popularity of other routes.

This thorough analysis demonstrates how sales data plays a significant role in helping airlines understand customer behaviour, anticipate demand, and customise their offerings accordingly. By leveraging insights from sales data, airlines can effectively manage demand, optimise operations, and enhance the overall travel experience for passengers.

Conclusion 

Planning a trip to the Super Bowl in Las Vegas can be quite a logistical challenge, but the experience is worth the effort. The fun of planning a trip starts at the very stage of searching for non-obvious connections. This way, you might unexpectedly discover new, better offers. You may be among the first people to take advantage of them! If these connections gain popularity, they will later increasingly appear in search results for other travellers, but at higher prices. Choosing the right flight will be crucial for your comfort and satisfaction with the journey. It’s certainly worth understanding data as much as you can. Thanks to this, we may rest assured that our journey will not only be comfortable but also satisfying!