Abstract
We present a case study of Air Canada's online pricing model, which allows travelers to view and select air travel products based on transparent branded fares. Air Canada's online customers start the purchase process with a base product and fare, followed by the opportunity to upgrade to customizable price attributes and additional specific needs. This innovative pricing model, also known as a-la-carte pricing, has placed Air Canada as an industry leader in market innovation, being recently awarded the Market Leadership Award by Air Transport World. We also discuss the related technological implications for Air Canada and for the industry. Most recently, Air Canada embarked on a project to develop a state-of-the-art IT infrastructure to support their online pricing model, by replacing legacy reservation systems with advanced online technologies.
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