Abstract
In recent years, with the rapid development of China's air transport industry and the change in market consumption structure, service quality has become one of the important factors affecting airline revenue. How to formulate a reasonable pricing strategy and maintain competitiveness in the fierce market competition has become an urgent problem for airlines. First, the impact factor of service quality level in the traditional pricing model is introduced and a static price competition model for multi-oligopoly airlines based on service quality is established in this paper. And then, a dynamic pricing model based on service quality of the multi-oligopoly airlines is established. The model incorporates the weight factor of service quality impact, which is used to indicate the weight of the service quality level in the process of airline dynamic pricing. The research results show that the service quality level of airlines has an indispensable influence on its development. Airlines should improve service quality as soon as possible to enhance market competitiveness and achieve sustainable development.
Highlights
IntroductionService quality refers to the extent to which a service can meet the needs of the serviced person
Service quality refers to the extent to which a service can meet the needs of the serviced person.Traditionally, China’s four airlines have strong control in the air transport market
It is necessary to construct a pricing model based on service quality to study the effect of service quality on airline revenue management (RM)
Summary
Service quality refers to the extent to which a service can meet the needs of the serviced person. China’s four airlines have strong control in the air transport market. With the rapid development of the air transport industry, some newly developing airlines have gradually carved up market share by actively seeking differentiated competitive advantages. From the perspective of operation, the basic functions provided to passengers by airlines on the same route are consistent, and the competition among these airlines is based on the air route. The higher the service quality of airline, the higher the satisfaction of these passengers and the higher loyalty, and the market share of the airline can be increased. High-quality service has become the core competitiveness of airline to improve the revenue and achieve sustainable development [3]. It is necessary to construct a pricing model based on service quality to study the effect of service quality on airline revenue management (RM)
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