Accurate booking forecasts boost airline revenue by millions annually
Airline revenue management is about selling seats at the right price to maximize profit. A key part of this is forecasting how many seats will be booked. Accurate forecasting can increase revenue by up to 3%. However, predicting future demand is tricky due to factors like discounts and flight cancellations. The goal of the study was to improve booking forecasts for Kenya Airways. The researchers found that better forecasting can significantly boost airline revenue.