Impacts of yield management in competitive airline markets

Peter P. Belobaba and John L. Wilson

Journal of Air Transport Management, 1997, vol. 3, issue 1, 3-9

Abstract: This paper presents the results of the first known study of the impacts of airline yield management (YM) under competitive market conditions, taking into account the YM capabilities of competing airlines. This study makes use of a simulation model that includes both passenger choice behavior and the actual functions of airline yield management systems. We used this simulation model to evaluate the impacts of YM systems on the market shares, traffic and revenues of each competitor in a hypothetical market, as well as on the market as a whole.

Keywords: airlines; yield management; revenue management; airline competition; market share; passenger choice behavior (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:3:y:1997:i:1:p:3-9

DOI: 10.1016/S0969-6997(97)82787-1

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