Constructing bundled offers for airline customers

Manini Madireddy, Ramasubramanian Sundararajan (ramasubramanian.sundararajan@sabre.com), Goda Doreswamy, Meisam Hejazi Nia and Amod Mital
Additional contact information
Manini Madireddy: Sabre Airline Solutions
Ramasubramanian Sundararajan: Sabre Airline Solutions
Goda Doreswamy: ANI Technologies Pvt. Ltd.
Meisam Hejazi Nia: Staples Innovation Lab (SparX)
Amod Mital: Sabre Airline Solutions

Journal of Revenue and Pricing Management, 2017, vol. 16, issue 6, No 2, 532-552

Abstract: Abstract We consider the problem of product bundling (seats and ancillaries) in the context of offering the right products to airline customers at the right price and in the right manner, so as to best satisfy customer needs and maximize airline revenue. This problem falls on the cusp of airline revenue management (apropos controlling price and availability) and retail e-commerce (apropos bundle design and shopping session management); therefore, we synthesize ideas from both domains to devise a solution framework. Our proposed solution is designed in a modular manner, so as to allow incremental and independent improvements to product design, pricing, and shopping session management. In this paper, we specifically focus on methodologies for offer construction: creating product bundles and estimating willingness to pay. We demonstrate the utility of these methodologies through illustrative results on real and simulated datasets.

Keywords: customer-centric retailing; product bundling; price testing; revenue management (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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DOI: 10.1057/s41272-017-0096-y

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