O&D (Origin and Destination)
What is O&D (Origin and Destination)?
O&D, or Origin and Destination, is a key concept in travel management and airline pricing that defines the full journey a passenger takes from their departure point to their final arrival location. It focuses on the overall trip rather than individual flight segments.
For example, a trip from New York (JFK) to London (LHR) with a layover in Paris (CDG) would be considered one O&D itinerary (JFK-LHR) rather than two separate flights. Airlines use O&D revenue management to set prices dynamically, ensuring profitability while balancing supply and demand.
In corporate travel, O&D analysis helps businesses optimize travel policies, negotiate better fares, and reduce costs by identifying frequently traveled routes and adjusting booking strategies accordingly.