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- Price Discriminination
- Airline pricing is one of the mysteries of our generation. The airline industry refers to its pricing game as "yield management." This means prices on the same plane can fluctuate wildly based on available seats at the time of purchase. Yield management is a form of price discrimination that allows...
- White papers 2003-08-26
- Dynamic Pricing in the Airline Industry
- The complexity and opaqueness of airline pricing has grown over time. As a result, the "Yield management" systems employed by airlines for pricing have become one of the most arcane and complex information systems on the planet, and one with a very large economic component. Airline pricing represents a great...
- White papers 2005-03-17
Additional Resources
- A Model of Airline Pricing: Capacity Constraints and Deadlines
- This paper studies monopolistic pricing, with a capacity constraint, of a good that loses its value T periods after it is put on sale for the first time. Buyers only obtain utility just before the good loses its value. Examples of such goods include airline tickets and hotel rooms. This...
- White papers 2004-05-11
- Exploring predatory pricing in the airline industry
- Abstract While there is broad agreement that airline deregulation has resulted in a general reduction in airfares, the industry has been criticized for unfair competition. The authors examine the charge that major airlines practice predatory pricing to drive out smaller competitors. First, the authors outline a brief history of...
- Research articles 2001-09-22
- Publishers Are Killing Web Advertising's Potential With Misguided Pricing
- Jim Spanfeller is president and CEO of Forbes.com. He is also treasurer of the Online Publishers Association and chairman emeritus of the Interactive Advertising Bureau.How is ad pricing different online and offline? Fundamentally, it isn’t.At this point, many internet sellers and buyers are reaching for the keyboard to declare...
- External links 2009-08-24
- Manugistics Showcases New Price Optimization Solution for the Airline Industry; New Capabilities Help Airlines Make Better Pricing and Revenue Management Decisions
- ROCKVILLE, Md. -- Manugistics Group, Inc. (NASDAQ:MANU), a leading global provider of demand-driven supply chain management solutions, today unveiled its newest airline price optimization tool at the 2004 International Air Transport Association IATA Airline Revenue Management & Pricing Conference in Budapest. As part of its portfolio of airline solutions, the...
- Research articles 2004-10-19
- Hawaiian Airlines selects Sabre Airline Solutions Revenue Planning Suite to enhance revenue management, pricing and scheduling.
- M2 PRESSWIRE-20 March 2003-Sabre Airline Solutions: Hawaiian Airlines selects Sabre Airline Solutions Revenue Planning Suite to enhance revenue management, pricing and schedulingC1994-2003 M2 COMMUNICATIONS LTD RDATE:03202003 Sabre Airline Solutions announce that Hawaiian Airlines have selected Sabre Airline Solutions' fares management...
- Research articles 2003-03-20
- TAP Portugal Implements ITA Software's QPX System to Deliver Expanded, More Flexible Online Airfare Pricing and Shopping Features
- Deployment Increases Travel Bookings and Improves Overall Customer Experience For Leading European Airline CAMBRIDGE, Mass. -- ITA Software, Inc., the leading provider of innovative Software as a Service SaaS solutions to the airline industry, today announced TAP Portugal has selected and implemented QPX, the industry's premier management system for...
- Research articles 2008-06-27
- Value-Pricing as a Viable Marketing Strategy for Travel Right Airlines
- It explains the value based pricing strategies, which are used by airline industry. Customers of the airline industry see it as a commodity like business. In general, passengers simply want to get from one city to another in the shortest amount of time, at a convenient time that fits their...
- White papers 2003-01-01
- Predatory pricing suit dismissed. (Airlines).(American Airlines)(Brief Article)
- A federal appeals court dismissed a lawsuit against American Airlines that alleged the airline engaged in predatory pricing on a handful of routes out of Dallas to force smaller ... A federal appeals court dismissed a lawsuit against American Airlines that alleged the airline...
- Research articles 2003-07-14
- Air New Zealand Redefines Long-Haul Pricing; Airline Sets New Industry Standard with Simplified Approach to Fares
- EL SEGUNDO, Calif. -- Air New Zealand took a closer look at the airline industry's overcomplicated and outdated long-haul pricing structure, and announced today that it is changing its policies. From implementing a new "Advance Deal" policy that enables consumers who book early to get the best deal to removing...
- Research articles 2005-06-28
- 2002 pricing for airline customers; Prices to rise by an average 2.0 per cent from 1 January 2002.
- M2 PRESSWIRE-30 November 2001-AMADEUS: 2002 pricing for airline customers; Prices to rise by an average 2.0 per cent from 1 January 2002 C1994-2001 M2 COMMUNICATIONS LTD RDATE:30112001 Madrid, Spain -- Amadeus, a leading global distribution system GDS and travel...
- Research articles 2001-11-30
- The Effect of the Internet on Pricing in the Airline Industry
- This paper examines the relationship between nonlinear pricing and consumer search costs in the airline industry during a period of increasing Internet use. The authors find that higher Internet usage increases the spread between unrestricted and restricted fares. The authors also find that the ratio of unrestricted to restricted ticket...
- White papers 2004-11-01
- Government Report Upholds Airline Policies On Hidden-City Ticketing
- Allowing Customers To Beat Pricing System Would Force Fare Increases The airline industry has praised a new government report that opposes any moves to allow passengers to engage in the practice of hidden-city ticketing, and defends airline ticketing practices. The report by the U.S. General Accounting Office GAO...
- Research articles 2001-08-10
- Online Dynamic Pricing: Efficiency, Equity and the Future of E-commerce
- There is little doubt that the recent "price tests" conducted by Amazon signal the eventual arrival of online dynamic pricing. It provides the full theory on dynamic pricing. The historical lessons of the airline industry, the innovations of technology, and the logic of economic efficiency all suggest on the cusp...
- White papers 2001-07-01
- American Airlines Gets Closer to A La Carte Pricing
- American Airlines Gets Closer to A La Carte PricingRE: American Airlines Gets Closer to A La Carte PricingIs the IT infrastructure at US legacy carriers to support Air Canada style a la carte pricing?RE: American Airlines Gets Closer to A La Carte Pricing@Nicholas - As far as I know, that's...
- Discussion threads 2008-10-13
- bmibaby Selects New Revenue Management Tools from Sabre Airline Solutions; Fast-Growing, Low-Cost UK Airline Uses New Technology to Address the Discount-Carrier Market
- DERBY, England & SOUTHLAKE, Texas -- bmibaby, the U.K.'s fastest growing low cost airline and the largest airline in the Midlands, announced it is implementing the industry's first revenue management solution -- Sabre AirMax Low-Fares Manager -- designed for the low-cost airline market. Developed by Sabre Airline Solutions, the core...
- Research articles 2004-10-25
- Worldspan bringing 'transparency' to airline ticket prices
- A new service by travel e-commerce firm Worldspan L.P. will let buyers compare today's ticket prices with historical prices over the past 12 months. The site is free for users, and Worldspan gets a small cut of every ticket purchased through the FareAware service. The fare structure is very complicated...
- White papers 2003-01-01
- Airline carriers scaling back bereavement rates
- As the airline industry revamps its pricing strategy, carriers are scaling back on discounted last-minute fares to close relatives of the dead and dying. No. 3 Delta Air Lines last month dropped so-called bereavement fares for travel in the 48 contiguous states, part of its change to a simplified...
- Research articles 2005-02-22
- Predatory pricing derided at airline fare-cut trial. (Originated from Houston Chronicle)
- GALVESTON--Aug. 4--An economist testifying for American Airlines said Tuesday it was unreasonable to think the carrier would adopt a predatory pricing strategy, considering the huge risk of failure. Continental Airlines and Northwest Airlines are suing American for $1 billion, contending it intended to put them out...
- Research articles 1993-08-04
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