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Optimal pricing ladders for the sale of airline tickets

Optimal pricing ladders for the sale of airline tickets
Optimal pricing ladders for the sale of airline tickets
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.
revenue management, optimal pricing, airlines
1476-6930
96-106
Currie, C.S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
Simpson, D.
d042b3c0-15dc-45a1-8c29-c2c197c90938
Currie, C.S.M.
dcfd0972-1b42-4fac-8a67-0258cfdeb55a
Simpson, D.
d042b3c0-15dc-45a1-8c29-c2c197c90938

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).

Record type: Article

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.

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More information

Published date: 2009
Keywords: revenue management, optimal pricing, airlines
Organisations: Operational Research

Identifiers

Local EPrints ID: 66329
URI: http://eprints.soton.ac.uk/id/eprint/66329
ISSN: 1476-6930
PURE UUID: 2130a1c3-a6fd-4c56-8a87-f138badd3b01
ORCID for C.S.M. Currie: ORCID iD orcid.org/0000-0002-7016-3652

Catalogue record

Date deposited: 02 Jun 2009
Last modified: 09 Jan 2022 03:11

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Contributors

Author: C.S.M. Currie ORCID iD
Author: D. Simpson

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