Abstract
The operational outcome of Revenue Management (RM) is manifested in different magnitudes of market level price volatilities. In this paper we take an analytics approach to the possible use of pricing data of revenue-managed goods to support market analysis. Quantifying the relationship between market-level price volatility in the airline industry and various market-level performance metrics, we find that higher levels of price volatility are associated with higher levels of transacted fares, lower load factors, higher revenues, and increased transacted fare dispersion. This suggests the potential in utilizing market price volatility as an input for market analytics.
| Original language | English |
|---|---|
| Pages (from-to) | 35-50 |
| Number of pages | 16 |
| Journal | Transportation Research Part E: Logistics and Transportation Review |
| Volume | 120 |
| Issue number | 35-50 |
| DOIs | |
| State | Published - Dec 1 2018 |
Keywords
- Airline industry
- Dynamic pricing
- Market analytics
- Market performance assessment
- Price volatility
- Revenue management
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