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Revenue Management Insights with Simon Pitt

Our guest today, Simon Pitt, brings vast experience in airline revenue management. From roles across Australia, the UK, the US, the Middle East, Japan, and even the Canadian Tourism Commission, Simon has worked on revenue strategies for airlines worldwide. Most recently, his expertise extended to Papua New Guinea, focusing on commercial management and revenue optimisation.

Welcome, Simon Pitt. Where are you dialling in from today? Tell us about your exciting career journey.

“Thank you, Dario, and I appreciate the opportunity. I’m dialling in from just north of Brisbane, Australia, where I’m currently based. My career in airline revenue management results from my interest in analytics, numbers, and a passion for travel. I’ve been fortunate to work in both head office and in-market environments, which has given me a dual perspective on commercial decision-making. This exposure — combined with experiencing different cultures and markets — has shaped my approach to maximising airline revenue.”

Your speciality is revenue management, working with systems, methodologies, and processes. Can you share some innovative highlights from your career?

“I’ve had the privilege to witness the evolution of revenue management first-hand. When I began, the focus was on capacity management, optimising individual flights through basic hierarchical systems. Over time, innovations like public and private pricing and the move to origin and destination (O&D) control transformed how airlines operate.

The implementation of O&D control is particularly noteworthy — it allowed airlines to shift from optimising individual flights to optimising their entire network. This transition wasn’t just about tools and technology. It required changes in people’s skills and organisational structures to fully leverage the innovation.

Additionally, I’ve found success in segmenting the market effectively — targeting students, corporate groups, families, and tour operators — and aligning appropriate inventory processes and fares to capture value while managing peaks and troughs.”

What gaps still need to be addressed for revenue management to be truly effective?

“While airlines have moved towards optimising networks, there’s still work to be done in optimising the entire customer journey.

The future lies in leveraging more parameters at the booking decision point. For instance, knowing where a customer is in their booking cycle enables better decisions. A corporate traveller booking five days out offers limited upsell opportunities, but a student or family booking months in advance provides time to offer ancillaries like seats, bags, or even non-air products — ultimately increasing the total value of that booking.”

Let’s talk about technology. Is revenue management tech still adequate? And what about data and KPIs?

“Airlines have made great progress with the technology available, but there’s still hidden potential. The current focus is on leveraging AI for pricing decisions, customer insights, and cross-selling opportunities.

The challenge lies in linking large data pools effectively to extract valuable insights. Revenue management departments need better tools to integrate data, forecasting, and personalization, which allows airlines to maximise revenue across all segments.”

Some airlines are integrating distribution and revenue management within their organisations. Do you think this is the right move?

“Absolutely. Leading airlines have always placed revenue management at the centre of their commercial organisations. With the shift to Offer and Order Management Systems (OMS), this discussion is being reignited.

The move away from traditional PSS (Passenger Service Systems) and EDIFACT standards is creating opportunities. Some airlines still own their PSS, giving them independence and flexibility. As these systems evolve, airlines will need to decide whether to rely on vendors or bring systems in-house to differentiate themselves.”

Looking ahead, what does the future of revenue management look like in an ideal world?

“I see revenue management maintaining its core focus on inventory, pricing, and demand, but with an added emphasis on:

• Operational Research and IT collaboration for deeper optimisation

• Optimising settlement processes through alternative finance options

• Integrating ancillaries — both air and non-air — into a unified product offering

• Enhancing collaboration with digital and e-commerce teams to improve user experiences across all booking channels.”

Is achieving this future realistic for airlines?

“Yes, it’s achievable, but it will take time. The challenge is the long timelines required for transformation, especially while running parallel systems. Airlines will need patience as they transition away from legacy systems, but the eventual benefits — greater independence and differentiation — will be worth it.”

Finally, what’s your advice for airlines starting their journey into modern revenue management and Offer/Order management?

“Start with people and organisation. Technology is important, but the real enabler of change is the team — its skills, structure, and communication. Airlines need to break down silos and create flexible, collaborative environments. By empowering people to fully leverage new technology, airlines can minimise lost opportunities and drive success.”

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