How can airlines unlock additional revenue without introducing new products or services? The answer may lie in smarter fare packaging, clearer differentiation and more effective pricing strategies.

In The Hidden Value in the Fare Ladder, EPIC Insights explores how Aer Lingus could optimise its economy fare structure to better reflect customer preferences and increase ancillary revenue.

Using a choice-based conjoint study involving 287 Aer Lingus economy passengers, the research examined how travellers respond to different fare bundles and pricing options. The findings revealed a significant opportunity within the airline’s existing fare ladder. While passengers gravitated towards the lowest-priced option or the more comprehensive Advantage tier, the intermediate Plus fare attracted just 15% of choices.

By redesigning the fare structure to give each tier a clearer value proposition, EPIC’s simulations increased the modelled share of Plus to 25% and projected revenue per flight by 10.4%. Further pricing optimisation raised the potential revenue uplift to 16.7%, equivalent to approximately €3,545 per flight, without adding a single new product.

The study demonstrates how data-driven pricing and smarter product bundling can unlock hidden revenue opportunities, helping airlines create more compelling fare options while maximising the value of their existing services.