making money from air travel tons of data - can anyone make sense of it
TRANSCRIPT
Making Money from Air TravelTons of Data - Can Anyone Make Sense Of It
Overview‣ Why am I Here?
‣ Very Quick Background
‣ The Differentiator - Level the Playing Field for Consumers
‣ Data, Data and More Data
‣ Unintended Consequences - But Interesting None the Less
‣ What Do “Outside/Insiders” Do With Air Travel “Data”?
‣ Can an Ordinary Joe Do The Same?
Why Am I Here?‣ Founder, CEO FareCompare
‣ Portfolio.com Profile
‣ Middle Age “Techies”
‣ Very Complex Business- Security, Safety, Flights
- Airfares, Flights, IRS…
‣ Air Travel- Love it … Hate It
‣ Blogging- RickSeaney.com
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Quick Background FareCompare.com‣ Airfare “Stock Market” (ATPCO)
- Airfare Clearing House
‣ Flight Schedules - Only 2 Aggregators
‣ What Does the “Raw” Data Cost?- Handful of Companies in the World
‣ What Does It Take to Process the Information?
‣ B2B … Frustration … B2C
‣ Kelly Blue Book of “Airfare”- 100 / 10 Rule
Differentiator - Level the Playing Field‣ Site Started May 2006 - Level Playing Field
- Consumers vs. Airlines
‣ One of the Largest Databases in the World of Current and Historical Airfare Information
‣ Can We Add Value by Slicing and Dicing this Database
- Helping Air Shoppers Make the Best Buying Decision -- Every Time
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Data, Data & More Data‣ Few Hundred Million Airfare
- 30+ Rules Per Airfare
- Change 8 Times a Day
- Sometimes over 40% Change a Day
- Competitive Equilibrium
- Future Travel Dates and History
‣ Flights- ~4,100 Commercial Airports
- A Flight Per Second
- 720,000+ Passengers in Air Right Now
- LAX - NYC over 18,000 reasonable same day paths
Unintended Consequences‣ Short Straw
‣ Government Reports 4-6 months after
‣ Airline Analysts
- Guidance
- Trust But Verify
‣ Business Press
- Fuel Surcharges
- Fare Hikes
- Airfare Sales
What Do “Outside/Insiders” Do With Airfare?‣ They Model
- Revenue- RASM - Revenue Per Available Seat Mile
- Cost- CASM - Cost Per Available Seat Mile
‣ Cross Check- Supply (Schedules) vs. Demand (Load)
‣ Fret- Economy, Fuel, Mergers, Currency, Pricing, Biz Travelers,
Competition
Can an Ordinary Joe Benefit?‣ Sure
- Eternal Airfare Purchasing Question “When is the Best Time Buy”
- Started with Air Travel
- Continues to Fascinate with the Possibilities of Airline Financial Prediction
‣ Clever Technology on the Internet is in it’s infancy
- Keep your seat belt buckled as it starts to whiz buy
Contact Information‣ Rick Seaney
- CEO FareCompare.com
‣ Email: [email protected]
‣ Phone: +1 972 755 1058 x218
‣ Site: http://www.farecompare.com
‣ Blog: http://rickseaney.com
‣ Deals: http://deals.farecompare.com