In my previous post I talked about the distribution strategy for an airline and how crucial it is to make it successful.
Today, I want to discuss another important part of the business which falls under revenue management and pricing strategy.
I’ve worked in aviation for years, yet I’m always fascinated by how the most fundamental aspects of our industry—things we often take for granted—can be the most misunderstood. Yes, I am talking about fare filing here.
It’s not widely acknowledged, but it’s essential. It’s the unseen mechanism that ensures airlines’ fares are accessible and competitive in the market. Without accurate fare filing, an airline simply can’t function at scale.
My recent conversation with a client reminded me of just how critical fare filing is. It’s a topic that shapes how airlines distribute their fares and why getting it right matters more than ever.
What Is Airline Fare Filing?
Fare filing, at its core, is the process airlines use to load their fares, rules, and pricing structures into platforms like ATPCO (Airline Tariff Publishing Company).
Think of ATPCO as the hub that connects airlines to Global Distribution Systems (GDS) like Sabre, Amadeus, and Travelport.
This system ensures that fares are:
Visible: Available across all sales channels, from travel agents to online platforms.
Consistent: Pricing and rules match regardless of where the ticket is purchased.
Adaptable: Airlines can tailor fares for specific markets or customer segments.
It’s a complex process, but it’s the backbone of how we ensure customers can easily find and book tickets.
Why Is Fare Filing So Important?
Imagine an airline trying to compete without filing its fares. Without fare filing, the airline’s inventory is invisible to travel agents in their GDS, and customers relying on these systems. Across today’s aviation landscape, that’s not just inconvenient, it’s untenable.
Here’s why fare filing matters:
1. Reaching the Right Customers
Fare filing ensures that airline’s fares are available where customers and travel agents look for them. Whether it’s a local travel agent or a corporate booking system, visibility is everything.
2. Maximizing Revenue
By filing fares strategically, airlines can target specific markets with tailored pricing, optimizing profitability.
3. Ensuring Operational Efficiency
ATPCO and similar systems centralize fare data, making updates seamless and ensuring accuracy across channels.
Even smaller airlines, like regional carriers, can benefit. Take FlyPelican, for example. With just five aircraft, FlyPelican uses fare filing to tap into the government and corporate travel markets. These segments and travel management companies (TMCs) would be challenged to access suitable inventory without GDS visibility.
What Happens When Airlines Don’t File Fares?
Not filing fares—or doing it poorly—can have severe consequences. Airlines might avoid fare filing because of perceived costs, a lack of expertise, or resource constraints. However, this choice often leads to bigger problems:
Limited Distribution: Without GDS access, an airline shuts itself off from travel agents and other key sales channels.
Higher Costs Elsewhere: Alternative systems, like manual ticketing, often end up being more expensive and less efficient.
Missed Opportunities: Corporate and government contracts frequently require fare visibility in GDS. Without it, those opportunities vanish.
A case in point is Bonza, an Australian carrier that chose not to file fares through ATPCO. As a result, their fares weren’t visible in GDSs, limiting their reach and limiting the ability to drive revenue and sustain operations.
How Anjuna Supports Fare Filing:
For airlines, fare filing can be daunting. That’s where we come in. At Anjuna, we specialize in fare filing solutions that simplify the process and deliver results. Here’s how we help:
Expertise - We handle the complexities of fare filing, ensuring accuracy and compliance with industry standards.
Cost Optimization - By auditing fare data, we identify redundancies and reduce costs associated with ATPCO’s database usage.
Efficiency - Airlines save time and resources by outsourcing fare filing to our team of professionals.
Even for airlines already filing fares, our services often uncover opportunities to streamline processes and cut unnecessary costs.
At the end of the day, I must reiterate that fare filing might not be the most visible part of the airline’s commercial operation, but it’s undoubtedly one of the most important.
It’s the backbone of how airline’s pricing department ensures their fares are accessible, competitive, and profitable.
By investing in proper fare filing strategies or partnering with experts like Anjuna, airlines can unlock greater efficiency, expand their market reach, and maximize revenue opportunities. In a competitive and ever-evolving industry, getting fare filing right isn’t just a necessity, it’s a game-changer.
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