The airline industry has notoriously thin margins, and airlines are constantly striving to maximize their revenue. Airlines use large quantities of data to decide how much to charge their customers.
Teams of revenue management professionals work behind the scenes at each airline to conduct complex data analysis and make pricing decisions. Here is what you need to know about jobs in airline revenue management.
What is Airline Revenue Management?
Airline pricing involves a multitude of decisions: how to price flights, how many tickets should be available in each fare class, whether or not to overbook a flight, and much more. The factors behind these decisions change depending on the circumstances of each particular flight, such as the route, the season, and the departure time.
Revenue management is the process of analyzing data to project future demand and set prices accordingly. Airlines have to consider a multitude of factors, including historical data, changing market conditions, and future capacity.
What Does a Revenue Management Analyst Do?
Analysts are the backbone of any revenue management team. They are responsible for reviewing and analyzing the vast amounts of data available to an airline. Revenue management analysts then use this data to make recommendations and decisions about pricing. To perform these tasks, analysts rely on a variety of software and other technological tools.
Revenue management workers monitor factors such as booking trends, competitor behavior and pricing, and financial performance. They also work with other teams within the airline – like network planning, sales, and marketing – to ensure that an airline’s overall strategy is being followed.
What Types of Jobs Are Available in Airline Revenue Management?
Revenue management jobs typically follow a common corporate structure found at airlines and other companies. The entry-level role is typically called an analyst. The next step up is a senior analyst. Subsequent career progression can include movement to manager and director roles. There are also often opportunities for revenue management professionals to move to other departments within an airline.
What Skills and Qualifications Do You Need to Work in Airline Revenue Management?
Prospective revenue management professionals should have strong analytical skills and a high level of attention to detail. Since revenue management requires teamwork and coordination with other stakeholders, communication skills are also very important. Similarly, airlines typically look for candidates who can work well both individually and in a team environment.
Some airlines also require a degree in a related field – such as finance, economics, or statistics – or relevant experience. Applicants should also have strong computer skills, and proficiency with specific data software can be an asset as well. Airlines also tend to prefer those who have relevant airline experience or an understanding of airline economics.
How Much Do Airline Revenue Management Workers Get Paid?
Airline revenue management analyst positions typically pay between $50,000 and $100,000. The wide range exists because an employee’s pay depends on the company and their individual experience and qualifications. Those in management positions can expect higher salaries.
