Abstract
Pricing and especially fare structures have received little attention within the revenue management literature. For an airline, well-designed fare structures segment customers properly, selling to correct customers at intended prices. For a given origin and destination, the pricing manager seeks to maximize revenue by jointly optimizing all price levels in the airline’s menu of fares. Deterministic demand is modeled using booking periods as primary customer segments; inventory management is integrated as a secondary segmentation tool. Analytical solutions are attained under various demand functional forms, and comparative statics are juxtaposed to reveal characteristics of each demand type.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
