Global Distribution Systems (GDS) Capabilities, Origin and Destination (OD) Control and Dynamic Pricing

Karl Isler

Chapter 8 in Revenue Management, 2011, pp 108-119 from Palgrave Macmillan

Abstract: Abstract The key driver for the evolution of airline pricing and Revenue Management since the US deregulation in 1978 is the ability to price discriminate. Price discrimination can lead to increased efficiency and is tolerated by the public if it is not perceived as too unfair. We believe that the airline industry would not be able to offer its current public service level for both leisure and business customers without it. Since the whole industry is permanently operating on low or negative margins we also do not believe that such practices extract too much surplus from the customers.

Keywords: Price Elasticity; Round Trip; Dynamic Price; Price Discrimination; Differential Price (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1057/9780230294776_9

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