How LATAM Airlines Embraced Business Experimentation for Revenue Management

The LATAM Airlines’ Story

Hear first-hand how LATAM Airlines is turning experimentation into a competitive advantage with ADC. Watch this interview with LATAM Airlines’ Advanced Analytics Manager, Eduardo Kerchner for the full story – or explore the case study below.

Background

Six years ago, LATAM Airlines set out to become a data-driven organization, seeking a structured, reliable way to test new initiatives and drive innovation while minimizing risk. Recognizing the value of advanced experimentation and impact measurement – practices refined in academia and adopted by digital leaders like Booking.com, Uber, and Expedia – LATAM Airlines aimed to bring these proven methods into the airline business.

Video Caption: Joël Gastelaars of ADC Consulting talks with LATAM Airlines’ Eduardo Kerchner about embedding impact measurement and advanced experimentation (XP) into the airline’s commercial strategy.

The Problem

After identifying several use cases for advanced experimentation (XP) across the business, LATAM Airlines chose to start with Revenue Management (RM), a critical area where risks are high, and errors can be costly.

Implementing an impact measurement and XP solution in RM meant overcoming key challenges:

Adapting XP Methodology – Traditional A/B testing used in digital contexts doesn’t translate well to RM.
Managing Complexity and Interference – The approach needed to account for complex interference effects.
Handling Uncertainty – RM operates in a dynamic, interconnected environment where impact is hard to isolate.
Measuring Subtle Uplifts – It is difficult to distinguish meaningful improvements from background noise when detecting small differences in the key metrics.

LATAM Airlines chose ADC Consulting (formerly acmetric) as its XP partner, impressed by ADC’s expertise in applying battle-tested statistical methods – similar to those used by top tech firms – to measure the success of business initiatives.

Our Solution

We partnered with LATAM Airline’s Data & Analytics team to build an Impact Measurement and Advanced XP solution, centered on a dedicated centre of excellence and a tailored XP platform.

The Results

The solution successfully addressed the key challenges of implementing XP in the airline domain and laid the groundwork for an organization-wide experimentation culture.

XP Platform – Enabled precise measurement of pricing strategies for tickets and ancillary services.
Unified XP Workflows – Made it easier to communicate outcomes across the business.
Conclusive Experiments, Faster – Reduced time to actionable insight and improved scalability.
Increased Measurement Precision – Boosted confidence in decision-making.
Integrated Scientific Methodology – Handled the complexity of airline operations with ease.
Matured XP Practice – Encouraged experimentation at greater complexity and business impact.

”We can test new ideas much better than we could in the past. That’s why it’s a game changer for us.
— Eduardo Kerchner, Advanced Analytics Manager, LATAM Airlines

Future Potential

LATAM Airlines is committed to expanding ADC’s Impact Measurement and Advanced XP solution across additional functions—such as customer experience, loyalty programs, maintenance, and operations—to support smarter innovation and decision-making at scale.

Continue the Conversation

If you would like to learn more about this report or similar projects we have worked on in the transportation sector, please contact our experts, Vladimir Antsibor and Joël Gastelaars.