Estimating sales and profitability impacts of airline branded-fares product design and pricing decisions using customer choice models

This article provides a simple-to-use decision support framework for evaluating the sales and profitability impacts of airline branded-fare product designs and pricing using customer choice models. Our framework is derived from standard marketing analysis techniques developed for the design of bundl...

Full description

Saved in:
Bibliographic Details
Published in:Journal of revenue and pricing management 2013-11, Vol.12 (6), p.509-523
Main Authors: Ratliff, Richard, Gallego, Guillermo
Format: Article
Language:English
Subjects:
Air fares
Airline industry
Airlines
Business and Management
Conjoint analysis
Customer relationship management
Decision support systems
Distribution channels
Generic products
Market segments
Marketing
Prices
Pricing policies
Product design
Profitability
Profits
Research Article
Studies
Valuation
Variables
Willingness to pay
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This article provides a simple-to-use decision support framework for evaluating the sales and profitability impacts of airline branded-fare product designs and pricing using customer choice models. Our framework is derived from standard marketing analysis techniques developed for the design of bundled products and adapted to the airline branded-fares problem. We also provide willingness-to-pay estimates from internal Sabre surveys along with a heuristic price optimization using genetic algorithms applied to an example airline branded-fares problem. Although focused on the technical aspects of the solution, this article is written in business terms and is oriented towards use by practitioners.
ISSN:1476-6930
1477-657X
DOI:10.1057/rpm.2013.18