کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
1031045 | 1483593 | 2012 | 7 صفحه PDF | دانلود رایگان |
This paper conceptualizes various discount strategies used by airlines. Using a constrained revenue maximization model that assumes interdependent demand, it develops rules to guide decision-making, and shows that the large fare discount-many discount seats and small fare discount-few discount seats strategies are optimal. Empirical support is provided for the large fare discount-many discount seats, the no fare discount-moderate discount seats and small fare premium-few discount seats strategies. In addition it identifies the large fare premium-very few discount seats strategies. We argue that these strategies are used in various demand situations and allow airlines to price discriminate.
► The paper examines airline fare and seat management strategies with demand interdependency.
► It conceptualizes seat and fare management strategies.
► It identifies important characteristics of the strategies.
Journal: Journal of Air Transport Management - Volume 24, September 2012, Pages 42–48