Will continuous pricing change how we think about airfares?

By John Balloch, Chief Partnership Officer – Global Air & GDS, Corporate Travel Management

If you’ve been involved in travel for a while and have a good knowledge of airline distribution and the mechanics of it, you’ll know how much the landscape has changed.

For decades, we’ve relied on fare filing, those familiar lettered ‘buckets’ sitting in the global distribution system (GDS). They’ve served the industry well, but they’re also rigid. Prices only move when airlines update those ‘buckets’, which can be hours, days, or weeks apart.

Now, we’re in a new era defined by continuous pricing. It’s a shift that gives airlines far more flexibility to create fares dynamically, using data and algorithms to respond instantly to market demand, competition and even customer behaviour. For corporate travel, it’s a change that will have a ripple effect through the way we buy, sell, and benchmark air content.

What exactly is continuous pricing?

Think of it this way: continuous pricing breaks away from static fare levels. Instead of having fare buckets that move up with significant steps, (New Distribution Capability) NDC allows for multiple smaller steps between the fare buckets.

Think of NDC as the pipe, the infrastructure that lets these dynamic offers flow between airlines, travel management companies (TMCs) and booking tools. Continuous pricing is what flows through the pipe. It’s one of the strategies airlines use to deliver more targeted, data-driven offers to travellers.

For airlines, it’s an incredibly effective yield management tool. For buyers, it’s a new frontier in transparency, value measurement and travel programme design.

What does this mean for travel managers?

Here’s where things get interesting. Forecasting and benchmarking, the core of every travel programme, are changing. You can’t just rely on filed fares anymore. When prices move dynamically, you’ll need to look at trends, patterns, and real-time analytics, not single price points.

Historically, travel managers could reference filed fares to track spend and predict future pricing. That model starts to blur when fares become dynamic and personalised.

Instead, travel programmes will need to rely more on trend data, real-time analytics, historical averages, and insights provided by your TMC. Forecasting will become less about the ‘exact price’ on a given day and more about modelling patterns over time.

It’s a shift that rewards agility. The more visibility you have into your data, the better equipped you’ll be to identify what ‘good value’ looks like for your organisation.

What does ‘best fare’ really mean in the current landscape?

For years, “best fare” meant “lowest fare.” But under continuous pricing, that mindset shifts. The right fare might not be the cheapest; it’s the one that delivers the best outcome in line with travel policy. Maybe it’s more flexible, includes an ancillary, or just makes your traveller’s journey smoother.

Think about it this way: if a slightly higher fare reduces change fees, improves comfort, or boosts productivity, that’s value. That’s where travel managers will lean on TMC analytics to prove smarter decisions, not just cheaper ones.

Do TMCs and GDSs still matter?

As airlines build out more direct distribution strategies, a question I often hear is: “Do TMCs and GDSs still matter?” The short answer is yes, more than ever.

TMCs and GDSs remain essential for scale, comparison and servicing. Corporate travel programmes depend on having a single platform to compare fares, manage bookings and receive support. The role of TMCs, aggregators, and GDSs is evolving from simply distributing fares to ensuring the completeness and integrity of content across multiple channels.

TMCs will focus on ensuring customers see the full picture: all available fares, all levels of flexibility, and transparent insights to make the best decision for their business.

How do you navigate continuous pricing?

Let’s be honest, change can feel uncomfortable. Continuous pricing can make fare structures look unpredictable, and that can be challenging when you’re managing budgets.

The key? Evolve your benchmarking, strengthen communication, and keep travellers informed. Continuous pricing isn’t about paying more; it’s about paying smarter. With the right analytics and partnerships, you’ll adapt quickly and keep demonstrating value and control.

Will continuous pricing replace traditional fare filing?

I don’t think continuous pricing will replace traditional fare filing overnight. For at least the short-term, we’ll be operating in a hybrid environment with some airlines running continuous pricing and others maintaining filed fare structures. But there’s no doubt where the trend is heading.

As adoption grows, we’ll see a more retail-like airline marketplace emerge. One where every offer is tailored to the customer and where value is defined by data, and not static price points.

It’s an exciting evolution for our industry. The more we embrace these changes as TMCs, airlines, and travel buyers, the more opportunities we’ll have to create value for travellers and businesses alike.

Continuous pricing isn’t just a technology story; it’s a people story. It’s about how we, as an industry, adapt to deliver smarter and more flexible travel.

The partnerships between airlines, technology providers, and TMCs will shape how this next chapter unfolds. And I believe it’s one of the most positive developments we’ve seen in airline distribution in years, one that’s ultimately going to deliver better outcomes for everyone involved.

About the author:

John Balloch is the Chief Partnership Officer, Global Air & GDS at CTM, where he is directly responsible for negotiating with our service providers to deliver creative, innovative solutions for our customers.