Optimal pricing ladders for the sale of airline tickets


Currie, C.S.M. and Simpson, D. (2009) Optimal pricing ladders for the sale of airline tickets. Journal of Revenue and Pricing Management, 8, 96-106. (doi:10.1057/rpm.2008.24).

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Original Publication URL: http://dx.doi.org/10.1057/rpm.2008.24

Description/Abstract

Pricing ladders are widely used in the airline industry to define the discrete set of prices that can be charged for seats on a flight. We consider the factors that affect the setting of these ladders for one-way economy tickets. The minimum and maximum fares are assumed to be fixed and we focus on maximising the revenue generated on a flight by changing the spacing of the intermediate fares. Three scenarios are
considered for the market: single flight with perfect market segmentation and imperfect market segmentation and multiple flights on one route.

Item Type: Article
ISSNs: 1476-6930 (print)
Related URLs:
Keywords: revenue management, optimal pricing, airlines
Subjects: H Social Sciences > HG Finance
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Q Science > QA Mathematics
Divisions: University Structure - Pre August 2011 > School of Mathematics > Operational Research
ePrint ID: 66329
Date Deposited: 02 Jun 2009
Last Modified: 27 Mar 2014 18:47
URI: http://eprints.soton.ac.uk/id/eprint/66329

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