Digital evolution and emerging revenue management practices: evidence from Aegean airlines distribution channels

Purpose The rapid digital transformation (DX) that airlines experienced during the past decade has been proven to be the driving force of significant benefits for the airlines when it comes to cost reduction, branding and revenue opportunities when passengers purchase tickets and ancillaries directly from their websites. This paper aims to contribute empirically to the theoretical approaches of DX and revenue management (RM) with the investigation of the Aegean airlines DX progress, focusing on emerging RM practices and digital distribution channels. Design/methodology/approach A content analysis of the airlines’ website and social media performance is used to note the current situation combined with previous and upcoming developments. Evaluation of the company’s digitalization progress is approached by using a combination of two selected DX models, the digital transformation maturity (DTM) concept and the technology acceptance model (TAM). Findings The analysis of qualitative and quantitative secondary data provided by the Aegean airlines indicates that the adoption of a digital evolution marketing plan, enriched with emerging RM practices, is leading to the increase of the bookings coming from the airline’s direct distribution channels (Web & Apps) over those from intermediaries (GDSs). Consequently, Aegean airlines’ DX progress favors cost reduction and revenue increase at the same time. Originality/value DX model-based airline steps combined with direct versus indirect ticket purchase pattern compose a tool to evaluate the airline digitalization progress toward revenue integrity and product customization, as the latest trend in customer-centric strategy of businesses and customer relationship management (eCRM).