making money from air travel tons of data - can anyone make sense of it

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Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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Page 1: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

Making Money from Air TravelTons of Data - Can Anyone Make Sense Of It

Page 2: Making Money from Air Travel Tons 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?

Page 3: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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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Page 4: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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

Page 5: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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

Page 6: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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Page 7: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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Page 8: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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

Page 9: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

Unintended Consequences‣ Short Straw

‣ Government Reports 4-6 months after

‣ Airline Analysts

- Guidance

- Trust But Verify

‣ Business Press

- Fuel Surcharges

- Fare Hikes

- Airfare Sales

Page 10: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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

Page 11: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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

Page 12: Making Money from Air Travel Tons of Data - Can Anyone Make Sense Of It

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