Netflix and Spill

Airline subscription models are viable, but there are complexities to solve

Young wonks taking their first steps in airline revenue management (RM) soon encounter the “spill and spoil” model. The idea is simple – an airline with high prices will not sell tickets and seats going empty are said to be spoiled. But if prices are too low, people who did fly might have paid more and revenue is said to have been spilled. RM is all abo…