Airline fare and seat management strategies with demand dependency
Airline fare and seat management strategies with demand dependency
- New search for: Obeng, K.
- New search for: Sakano, R.
- New search for: Obeng, K.
- New search for: Sakano, R.
Abstract 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.
Highlights ► 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.
Document information
Airline fare and seat management strategies with demand dependency
Journal of Air Transport Management ; 24 ; 42-48
2012-01-01
7 pages
Article (Journal)
Electronic Resource
English
Similar titles
Airline fare and seat management strategies with demand dependency
| Online Contents | 2012