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Research on Revenue Management Pricing of Private Airlines in China

Author: ChenRuiRui
Tutor: JiangKeShen
School: Nanjing University of Aeronautics and Astronautics
Course: Industrial Economics
Keywords: Private airlines Revenue Management Multi- level differential pricing Dynamic pricing
CLC: F562.5
Type: Master's thesis
Year: 2010
Downloads: 377
Quote: 0
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Abstract


Oligopolistic market structure, airline fare system is a difference in the implementation of dominant behavior, and its development of different methods how class fare differential pricing method and dynamic pricing, these two methods are of a revenue management research category. Including private domestic airlines, including most airlines have adopted multi-level differential pricing method, but this method has some shortcomings. First in the domestic airline passengers for each grade is not an exact breakdown of the standard, leading to the formulation of each class fare are not standardized; secondly, private airline ticket limit measures are often relatively simple, and can not effectively prevent the high-yield visitors to buy cheap tickets; Again, under this approach usually requires the flight for seat inventory control, namely airlines based on supply and demand situation to decide whether to accept a certain level of a passenger ticket purchase requirements, which means that revenue management implementation of the method is based on the core airline decision-making behavior, and did not fully consider the passenger ticket choice behavior, making passengers and airline information asymmetry between a range of issues. Multi-level differential pricing and seat inventory control model is called a combination of traditional revenue management model, and the above analysis shows that there are many problems in this mode, so this paper can be used more effectively private airline revenue management model emerging - dynamic pricing ways to regulate their pricing process and make income levels have been improved. In the dynamic environment of the existing monopoly pricing model basis, the paper uses a recursive method constructs a dynamic competitive environment of continuous price-based pricing model, and a comprehensive analysis of private airlines on the application of dynamic pricing model. Monopolistic environment, the dynamic pricing model fully into account the behavior of both supply and demand; in a competitive environment, the model considers not only the flight itself supply and total market demand for its best ticket prices, supply and price competition will as decision variables into account. Articles by simulating the way examples of private airlines dynamic pricing model to analyze the application results show that compared to traditional revenue management model is concerned this method is more scientific, standardized, advanced and effective. The more complex dynamic pricing emerging revenue management model will be the future development of private airlines during a good choice.

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CLC: > Economic > Transportation and economic > Air transport and economic > China 's air transport > Transportation costs,tariffs,fares and economic accounting
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