How We Find Intelligence through Alternative Data

An Example Visualizing America's Growing Skyline

Visual Approach Construction Index

A big part of what we do here at Visual Approach is to find meaning in alternative data. The word “alternative” has come to mean something different these days, however there is no better word to describe it. Information that is useful, but not directly related to aviation is alternative. Yet, this data can give us great insights into how the market is performing, and more importantly, how it will perform in the future. Finding these relationships is a big part of what we are doing at Visual Approach. The amount of aviation data available is staggering when compared to other industries. Especially in the U.S., we have detailed traffic, flight, and even origin & destination information with fares. We recently released a tool to dive into some of this data recently, which you can use for free at our Traffic Pivot Tool . Yet, while this plentiful data is […]

Trend Suggests Domestic Fares Set to Rise into 2020

Domestic Fares vs Fuel

I have long disagreed with the notion that fares follow fuel price, at least directly. Fares (price) are a function of supply (seats) and demand. As such, too much capacity in a market, and fares will drop. Not enough capacity in a market, and fares will rise. Yet, as pricing moves to bring equilibrium to supply and demand, there is theoretically a floor to how low a price can go: the cost of flying that seat. Is the U.S. domestic market *gasp* rational? Since fuel is such a large piece of the cost puzzle (~20-25% of total expenses), it stands to reason that fares should, in some way, be affected by the price of fuel in a rational market. A market which collectively allowed pricing power to increase as costs increased, yet competitively drove fares down as fuel prices dropped would be a strong sign of rationality. The word “rational” […]