Journal of Revenue and Pricing Management

, Volume 8, Issue 1, pp 96–106

Optimal pricing ladders for the sale of airline tickets

Original Article

DOI: 10.1057/rpm.2008.24

Cite this article as:
Currie, C. & Simpson, D. J Revenue Pricing Manag (2009) 8: 96. doi:10.1057/rpm.2008.24
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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.

Keywords

revenue management optimal pricing airlines 

Copyright information

© Palgrave Macmillan 2008

Authors and Affiliations

  1. 1.School of Mathematics, University of Southampton, Highfield, SouthamptonUK

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