Revenue Management and Turbulence: Why Bumps Are Part of the Journey

Ever been on a flight, cruising smoothly at 30,000 feet, when suddenly—BAM! The plane shakes, the seatbelt sign dings, and for a split second, you question your life choices.

That’s turbulence—completely normal, yet still unnerving.

And guess what? Revenue management is full of turbulence, too.

Why Does Turbulence Happen? (In the Air and in Revenue Management)

Planes hit turbulence for many reasons, just like your revenue strategy can suddenly get shaky. Here’s how aviation and RM turbulence go hand in hand:

✈ Clear Air Turbulence = Unexpected Market Shifts

The worst kind—invisible, unpredictable, and no warning on the radar. Think of sudden demand drops, last-minute cancellations, or an aggressive competitor slashing rates. You don’t see it coming, but you feel it when you’re in it.

How to succeed: Be agile, experiment! Limited downside, unlimited upside.

✈ Mountain Wave Turbulence = Economic Ripples

Even if you’re not near the “mountain” (i.e., a major event, recession, or policy change), you still feel its effects. A shift in consumer behavior, changing travel restrictions, or even a viral TikTok about bedbugs in hotels—ripple effects hit everyone.

How to succeed: Know your target market!

✈ Thunderstorm Turbulence = High-Impact Market Events

Major holidays, sudden demand spikes, or global disruptions—these storms create chaos. You try to avoid the worst, but turbulence extends beyond the visible problem.

✈ Wake Turbulence = Following the Wrong Competitors

Flying too close behind another aircraft (or blindly copying a competitor’s pricing strategy) can throw you off course. Just because a competitor drops rates doesn’t mean you should follow into their turbulence.

How to succeed: Know your USP, know your perfect customer.

✈ Frontal Turbulence = Demand Clashes

Warm and cold air masses colliding? That’s the revenue equivalent of high-end and budget demand fighting for the same space. If you’re unclear on your market position, you get tossed around by price-sensitive customers and premium guests who expect more for less.

How to succeed: Focus on your forecast! Ignore the segments you do not need.

Why It Feels Worse Than It Is

Turbulence feels dramatic, but in reality:

1. The plane isn’t actually plummeting—it’s adjusting.
2. Your revenue isn’t crashing—it’s adapting to market shifts.
3. Modern planes (and good revenue strategies) are built to handle extreme conditions.

Three tips to fly "smoothly"

Slow Down When Needed

When the market gets shaky, resist the urge to react instantly. Knee-jerk rate cuts make things worse. No action = action!

Check the Radar

Stay informed. Know your data! Market trends, competitor behavior, and customer sentiment reports help you anticipate bumps.

Keep the Seatbelt Sign On

Always be prepared. Diversify your demand sources, maintain flexible pricing strategies, and never get too comfortable.

The Comfort zone is a revenue managers enemy.

Enjoy the ride ;-)

Love,

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