An implementable optimization of airfare structure

Brian So ()
Additional contact information
Brian So: Princeton University

Journal of Revenue and Pricing Management, 2017, vol. 16, issue 5, No 2, 465 pages

Abstract: Abstract Pricing and especially fare structures have received little attention within the revenue management literature. For an airline, well-designed fare structures segment customers properly, selling to correct customers at intended prices. For a given origin and destination, the pricing manager seeks to maximize revenue by jointly optimizing all price levels in the airline’s menu of fares. Deterministic demand is modeled using booking periods as primary customer segments; inventory management is integrated as a secondary segmentation tool. Analytical solutions are attained under various demand functional forms, and comparative statics are juxtaposed to reveal characteristics of each demand type.

Keywords: revenue management; airline pricing; optimization; advance purchase; airfare structure; customer segmentation (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41272-017-0081-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorapm:v:16:y:2017:i:5:d:10.1057_s41272-017-0081-5

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41272

DOI: 10.1057/s41272-017-0081-5

Access Statistics for this article

Journal of Revenue and Pricing Management is currently edited by Ian Yeoman

More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().