Data Analysis for Dynamic Pricing in Airline: The Role of Tactical Pricing

Data Analysis for Dynamic Pricing in Airline: The Role of Tactical Pricing

Rahul Bhaskar (California State University, Fullerton, CA, USA)
Copyright: © 2014 |Pages: 9
DOI: 10.4018/jcit.2014010102
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Abstract

The competitors in the airline industry often rely on pricing strategy to capture more sales as a main mean of competition. Thus, dynamic pricing is often utilized to maximize profit while allowing better pricing against competition at the same time. In order for dynamic pricing to be effective, airline company has to take in consideration both internal and external information. Tactical pricing is an important component for airline, for it provides both short term and long term strategies to ticket pricing. The case is an exemplification of how tactical pricing plays an important role in the decision making process of an airline company.

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