Pricing and Revenue Management

Pricing and Revenue Management
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Pricing and Revenue Management
According to the dynamic pricing model, airline companies apply price discrimination based on the time of booking the flight (De-Bonfili, 2018). Although it is an opaque pricing strategy, the dynamic pricing model proves a feasible, innovative strategy in the airline sector. Given the current dynamic and tough economic times within which airlines are operating, Global Airlines is right to apply price discrimination and, thus, enhance its overall profitability (Aryal et al., 2021). In this context, the Airline management applied the dynamic pricing model to impact its ticket sale operations based on passenger characteristics and time of purchase. One customer could pay over $700 while the other pays $150 based on the dynamic pricing model, which the Airline management applies to ensure profitability (Fiig et al., 2018). Passengers purchase their tickets at different times and travel for different purposes, thus legitimizing price discrimination practices in the airline sector.
Based on the dynamic pricing model, Global Airlines might have used dynamic pricing algorithms to evaluate...