IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v19y2020i4d10.1057_s41272-020-00248-0.html
   My bibliography  Save this article

Optimizing airline fare structures

Author

Listed:
  • Octavian Oancea

    (Etihad Airways)

Abstract

Optimizing an airline’s fare structure has always been reliant on the expertise and market awareness of its Pricing professionals. Whether in the traditional airline world—with restrictions aiming to “fence” high-yield customer segments from the leisure ones, in the low-cost carrier competitive world with more simplified fare structures, or in the new world of dynamic offer generation and continuous pricing, how to establish the entry level price and all other prices, as well as the appropriate conditions associated to a price remains a challenge for any airline Pricing department. In this article we explore some of the common airline practices for determining fare levels and fare rules, as well as what the future holds for this field in the context of IATA New Distribution Capability, where offers will be generated dynamically, pricing could be continuous and traditional booking classes might not exist.

Suggested Citation

  • Octavian Oancea, 2020. "Optimizing airline fare structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(4), pages 230-233, August.
    • Handle: RePEc:pal:jorapm:v:19:y:2020:i:4:d:10.1057_s41272-020-00248-0
    DOI: 10.1057/s41272-020-00248-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-020-00248-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-020-00248-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Octavian Oancea & Razvan Horga, 2018. "The new wave of airline revenue and pricing management – what next for the leisure customer?," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 182-188, June.
    2. Thomas Fiig & Remy Guen & Mathilde Gauchet, 2018. "Dynamic pricing of airline offers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(6), pages 381-393, December.
    3. Michael D. Wittman & Peter P. Belobaba, 2019. "Dynamic pricing mechanisms for the airline industry: a definitional framework," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(2), pages 100-106, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Octavian Oancea, 2021. "The implications of behavioural economics for pricing in a world of offer optimisation," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 626-633, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Octavian Oancea, 0. "Optimizing airline fare structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 0, pages 1-4.
    2. Stacey Mumbower & Susan Hotle & Laurie A. Garrow, 2023. "Highly debated but still unbundled: The evolution of U.S. airline ancillary products and pricing strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 276-293, August.
    3. Daniel Schubert & Christa Sys & Rosário Macário, 2022. "Customized airline offer management: a conceptual architecture," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(5), pages 553-563, October.
    4. Kevin K. Wang & Michael D. Wittman & Adam Bockelie, 2021. "Dynamic offer generation in airline revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 654-668, December.
    5. Zhao, Guihong & Cui, Yue & Cheng, Shaoyu, 2021. "Dynamic pricing of ancillary services based on passenger choice behavior," Journal of Air Transport Management, Elsevier, vol. 94(C).
    6. Amine Dadoun & Michael Defoin-Platel & Thomas Fiig & Corinne Landra & Raphaël Troncy, 2021. "How recommender systems can transform airline offer construction and retailing," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(3), pages 301-315, June.
    7. Yanbin Long & Peter Belobaba, 2024. "Airline revenue management with segmented continuous pricing: methods and competitive effects," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(1), pages 14-27, February.
    8. Resul Aydemir & Mehmet Melih Değirmenci & Abdullah Bilgin, 2023. "Estimation of passenger sell-up rates in airline revenue management by considering the effect of fare class availability," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 501-513, December.
    9. Kevin K. Wang & Michael D. Wittman & Thomas Fiig, 2023. "Dynamic offer creation for airline ancillaries using a Markov chain choice model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(2), pages 103-121, April.
    10. Jin, Jie & He, Junliang & Wang, Xudong & Han, Chuanfeng & Meng, Lingpeng, 2024. "Contract design in ocean shipping market: A performance credit leveraged mechanism," International Journal of Production Economics, Elsevier, vol. 272(C).
    11. MadhuSudan Rao Kummara & Bhaskara Rao Guntreddy & Ines Garcia Vega & Yun Hsuan Tai, 2021. "Dynamic pricing of ancillaries using machine learning: one step closer to full offer optimization," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 646-653, December.
    12. Ku, Edward C.S., 2022. "Developing business process agility: Evidence from inter-organizational information systems of airlines and travel agencies," Journal of Air Transport Management, Elsevier, vol. 103(C).
    13. Sébastien Touraine, 2021. "The industry transformation to dynamic offering," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 611-614, December.
    14. Muzaffer Buyruk & Ertan Güner, 2022. "Personalization in airline revenue management: an overview and future outlook," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 129-139, April.
    15. Bazyli Szymański & Peter P. Belobaba & Alexander Papen, 2021. "Continuous pricing algorithms for airline RM: revenue gains and competitive impacts," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 669-688, December.
    16. Fukushi, Mitsuyoshi & Delgado, Felipe & Raveau, Sebastián & Santos, Bruno F., 2022. "CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 297-315.
    17. Ziaul Haq Adnan & Ertunga Özelkan, 2019. "Bullwhip effect in pricing under different supply chain game structures," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(5), pages 393-404, October.
    18. Masoud Talebian & Zhaolin Li & Qiang Lu, 2020. "Pricing and inventory management for mixed bundled products with stochastic demand," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 401-410, December.
    19. Lee, Boram & Fraser, Ian & Fillis, Ian, 2022. "To sell or not to sell? Pricing strategies of newly-graduated artists," Journal of Business Research, Elsevier, vol. 145(C), pages 595-604.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:19:y:2020:i:4:d:10.1057_s41272-020-00248-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.