AN IMPLEMENTATION PROPOSAL OF INNOVATIVE PRICING IN GREEK COASTAL SHIPPING
Ioannis Sitzimis ()
Additional contact information
Ioannis Sitzimis: Department of business administration & Tourism, Hellenic Mediterranean University, Heraklion, Greece
Oradea Journal of Business and Economics, 2021, vol. 6, issue 2, 69-77
Greek coastal shipping is an industry which passed from the state regulatory interference to market forces. Its fare structure (tariff) was based on average (or total) cost and distance was the representative cost variable. As it is an industry facing strong economies of scale, average cost is higher than marginal cost. This means that companies equalizing prices to marginal cost, following Paretoâ€“efficient allocation of resources, are driven to losses and are forced to seek other methods of efficient pricing policy. The purpose of this article is to examine the implementation of â€œinnovativeâ€ pricing in Greek coastal shipping. â€œInnovativeâ€ pricing contains applicable measures in order to increase ticket prices in â€œpeakâ€ periods without affecting the level of quality, the number of passengers and the market share. The analysis results show that average fare will not necessarily raise. Ticket increases may be accompanied by quantitative discounts in periods of low demand. In these cases, â€œseason ticketsâ€ can be applied.
Keywords: Greek coastal shipping; peak periods; economies of scale; innovative pricing; season tickets (search for similar items in EconPapers)
JEL-codes: M21 R40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:6:y:2021:i:2:p:69-77
Access Statistics for this article
More articles in Oradea Journal of Business and Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Tomina SAVEANU ().