Yield Management—A Sustainable Tool for Airline E-Commerce: Dynamic Comparative Analysis of E-Ticket Prices for Romanian Full-Service Airline vs. Low-Cost Carriers

For many years, the air travel market has been one of the most regulated sectors in economy. The airline industry was fast-growing until the COVID pandemic. However, it is still a main business sector considered by economists and policymakers highly competitive. Air transport has specific features c...

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Bibliographic Details
Published in:Sustainability 2022-11, Vol.14 (22), p.15150
Main Authors: Gabor, Manuela Rozalia, Kardos, Mihaela, Oltean, Flavia Dana
Format: Article
Language:English
Subjects:
Air transportation
Air transportation industry
Air travel
Aircraft
Airline industry
Airlines
Airports
Alliances
Aviation
Business competition
Business models
Comparative analysis
Competitive advantage
Customers
Electronic commerce
Evaluation
Finance
Financial management
Low cost
Market positioning
Pandemics
Passengers
Prices
Prices and rates
Pricing policies
Sustainability
Sustainable development
Technology application
Tourism
Travel
Willingness to pay
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Summary:For many years, the air travel market has been one of the most regulated sectors in economy. The airline industry was fast-growing until the COVID pandemic. However, it is still a main business sector considered by economists and policymakers highly competitive. Air transport has specific features contributing to the final price of a travel ticket and differentiating airline companies. The aim of this paper is to analyze if the concept of yield management is applied by the Romanian national full-service airline TAROM and to highlight which criteria could be used for evaluating airline companies, the differences between a full-service carrier (FSC) and a low-cost carrier (LCC) model, and the types of pricing techniques used by airline companies, of which consumers could take advantage. The methodology is based on the dynamic pricing analysis by a continuous online simulation method for the Romanian full-service carrier and two low-cost carriers. The research results confirm that for the investigated companies, yield management involves strategic control of available resources meaning to sell the product to the right customer at the right time for the right price and thus fill in a gap in international research. Being extremely competitive and customer-oriented, airline companies serve as an example for other businesses in which yield management can be applied.
ISSN:2071-1050
2071-1050
DOI:10.3390/su142215150