Revenue management has been commonly practised in the airline industry since the late 1970s to help airlines increase their revenues by managing price and seat availability. The perceived goal of Revenue Management and Pricing is to attempt to sell each seat at the highest possible price. Many complex factors are involved in achieving the goal and affecting the price. Most of them can be grouped into 3C definitions: Capacity – theoretically and on a short-term basis, a route is operated with an aircraft with a fixed capacity. However, in the mid-term,…
The Close-to-real-time Dynamic Pricing Model
