Apartment Rents Are Now Managed Like Airline Ticket Prices, By Airline Revenue Managers [Roundup]

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About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Does anybody know the timeline for demolishing terminals A and C at DFW and replace them with something newer?? They’re old as crap and ugly as hell and are in need of some serious replacements. They’re at least 31 years old, as old as the Braniff days are!!

  2. The yield management approach to apartments is one spoke in the wheel of rent gouging that has exploded throughout the nation in the last two years or so. Although I am not generally a fan of Bernie Sanders and Elizabeth Warren, I wish they would re-direct their attention to this phenomen. Any relief would benefit many deserving and struggling people who are being evicted left and right.

  3. United is really doing a good job. And, of course, these moments always just happen to get caught on video or photo and uploaded to social media. Meanwhile, Delta is screwing its million miler elites with devalued gifts or no gifts at all.

  4. Isn’t their a risk of collusion and price fixing — even unintentionally — if all/most of the rental companies in one area use the same algorithm that bases rents on what that algorithm sets for other locations?

  5. @ Gary — Re rents, what goes up too fast must come down. It will be great when the bubble bursts, just like they always do.

  6. Well I hit 5 million miles with AA however no applause and no luggage tags
    Did get a nice call from Dallas corporate which has never happened previously in my 20 plus years
    First I thought uh oh what did I do wrong?Was it the double booking in case the other one cancels?
    It was funny because her first words were there is nothing wrong your an appreciated customer in good standing
    Did get 4 system-wides except 10 days from departure and still haven’t cleared 🙁

  7. The rental apartment pricing service developed by the former Alaska Airlines guy became a much bigger problem for consumers because the USG allowed a merger to happen that concentrated the power to goose up prices via third-party-enabled collusion means to price setting.

    Maybe some would say that this isn’t much different than a GDS system, but it is very different than what has gone on with the rental home pricing “tool”.

  8. Hate to say it, but these rent optimization systems have been around for 10 + years…its not new!

  9. The market power of the bigger commercially-sold “rent optimization” service providers is relatively new, as is the level of tacit collusion on price-fixing/hikes provided to big landlords nowadays.

  10. The obvious solution to high rental prices is to build more housing. The sad reality is that landlords effectively DO have government-sanctioned monopolies, because restrictive zoning and permitting regulations deliberately impede development of additional housing. Ultimately, higher rental yields should be spurring greater investment in rental units. If this isn’t happening, renters should be asking themselves why. Blaming either a revenue management algorithm or a “guy named Bob” misses the point. Sort of like when people complain of high airfares after the government allows airlines to merge, shed staff/routes, and squat gates to prevent new entrants.

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