Pricing and Revenue Management. Management Assignment

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Some people travel for business, for a vacation or getaway, while it is a passion or a hobby for others. There are a lot of benefits traveling can offer, such as gaining new experience, meeting other people, and learning about different cultures while one of its disadvantages includes the expenses that go with it. Traveling domestically or internationally can be expensive or budget-friendly. However, one of the most important factors to consider when traveling is booking a flight going to that destination. To get the cheapest possible flight, one will try to book ahead of time. How would you react if you learned that the passenger who is seated next to you had paid $150 only while it cost you more than $700?
Several factors affect the pricing of airline tickets. Most of the airlines set their ticket prices depending on the demand. Its cost fluctuates daily and even hourly. A domestic plane ticket has different ticket prices for its various classes. It ranges from business or first class with the highest price to economy seats with the lowest price. Aside from the different seat class, the time of purchase also influenced the ticket pricing. The most expensive fares for both business and economy classes are usually bought during the last minute. Travelers who buy tickets with last-minute fares are traditionally business travelers who are willing to purchase tickets at their premium price. Airlines do not sell tickets closer to the time of departure at a lower price because it would devalue their product or the airline ticket in particular. To cover for the few unsold seats, last-minute plane tickets are sold at a higher price, whether it's a business or an economy class. Promo tickets that are sold were usually purchased in advance or during low peak season, where the demand is low. Moreover, one of the strategies of airline companies is to sell tickets at higher prices, especially during peak season or holidays, when most people are likely to travel and take a vacation. With higher demand, the airline would raise the prices being aware that travelers will pay (Chitty, 2018).
Another factor that affects the price of plane tickets is the destination. Fares are way more expensive with flights going to small cities or places with few airlines competit...