Optimal pricing ladders for the sale of airline tickets
- First Online:
- Cite this article as:
- Currie, C. & Simpson, D. J Revenue Pricing Manag (2009) 8: 96. doi:10.1057/rpm.2008.24
- 7 Downloads
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.