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Airline Pricing Strategies - Research Paper Example

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This essay discusses airline pricing strategies. Heavy competition, procurement issues, and even consumer buying power are present in the airline industry. Research provides that revenue management systems are not sufficient strategies when determining pricing policies in the airline industry…
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Airline Pricing Strategies
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Download file to see previous pages The airline industry faces an unpredictable and often uncertain environment that is driven by trends in consumer behavior, internal demands placed on specific organizations, and a competitive environment that often dictates forward momentum. Revenue management systems, on average, function as a tool with which to remove certain business activities that are calculated to be inefficient or budget-restrictive. In this system, “comparative trials of complex pricing policies are employed according to an application schedule that has a periodic character with respect to the arrival date of quoting circumstances” (patents.com, 2008, p.1). In many businesses, these systems become automated in order to link inventory with actual usage time that can be calculated on a variety of electronic systems. Marriott Hotels took advantage of combining two different revenue management systems to link customer needs with internal operational components to ensure that productivity measured with demand (Thibodeau, 2005).
Airline companies must develop methods to measure productivity with inventory strategy, labor, and other industry-specific activities. All of these are related to the financial goals or current economic position of the specific airway carrier. Whilst being driven to satisfy customers with different demands placed on marketing efforts, airline companies also manage expenditures balanced with the organization considered much like a system.
The research identifies information associated with revenue production, advertising as part of marketing, internal functions and organizational constraints with the design of the airline carrier, and general business activities in the airline industry.  ...Download file to see next pagesRead More
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