State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines
The modern air transport industry is highly competitive. To survive in the market, the implementation of a successful marketing strategy is fundamental. In particular, an effective pricing policy has become crucial for airlines to remain profitable. Correspondingly, the different types of airlin...
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| Format: | Article |
| Language: | English |
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University of Algarve, ESGHT/CINTURS
2018-07-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/1090/pdf_104 |
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| author | Christian Wehner Jesús Manuel López-Bonilla Luis Miguel López-Bonilla José António C. Santos |
| author_facet | Christian Wehner Jesús Manuel López-Bonilla Luis Miguel López-Bonilla José António C. Santos |
| author_sort | Christian Wehner |
| collection | DOAJ |
| description | The modern air transport industry is highly competitive. To survive in
the market, the implementation of a successful marketing strategy is
fundamental. In particular, an effective pricing policy has become
crucial for airlines to remain profitable. Correspondingly, the different
types of airline in the market have also established very distinct pricing
policies. The present study is based on a literature review and presents
the state of the art of pricing policy in air transportation. The aim is to
compare and discuss the pricing strategies of network carriers and lowcost airlines. Special attention is paid to Revenue Management, which
is a very important management tool used by airlines to take advantage
of the differences in willingness to pay of passengers. The pricing policy,
however, depends on the overall business strategy of the airline.
Results show many differences, resulting from the fact that these two
types of airline are characterized by very different fundamental
business models and, correspondingly, also target groups. Since
network carriers and also low-cost airlines have adjusted their pricing
strategies lately, these recent developments will be discussed as well.
This paper adds to the knowledge of this topic because it presents the
most up-to-date and complete study on pricing regarding network
carriers vs. low-cost airlines. |
| format | Article |
| id | doaj-art-01ffb5fa56bb4f959957ada41cade587 |
| institution | Kabale University |
| issn | 2182-8466 |
| language | English |
| publishDate | 2018-07-01 |
| publisher | University of Algarve, ESGHT/CINTURS |
| record_format | Article |
| series | Tourism & Management Studies |
| spelling | doaj-art-01ffb5fa56bb4f959957ada41cade5872025-02-02T10:44:57ZengUniversity of Algarve, ESGHT/CINTURSTourism & Management Studies2182-84662018-07-01143324010.18089/tms.2018.14303State of the art of pricing policy in air transportation: network carriers vs. low-cost airlinesChristian Wehner0Jesús Manuel López-Bonilla 1Luis Miguel López-Bonilla 2José António C. Santos3University of Seville, Faculty of Finance and Tourism, Seville, SpainUniversity of Seville, Faculty of Finance and Tourism, Seville, SpainUniversity of Seville, Faculty of Finance and Tourism, Seville, SpainUniversity of Algarve, ESGHT and CIEO/CINTOURS Research Centre, Faro, PortugalThe modern air transport industry is highly competitive. To survive in the market, the implementation of a successful marketing strategy is fundamental. In particular, an effective pricing policy has become crucial for airlines to remain profitable. Correspondingly, the different types of airline in the market have also established very distinct pricing policies. The present study is based on a literature review and presents the state of the art of pricing policy in air transportation. The aim is to compare and discuss the pricing strategies of network carriers and lowcost airlines. Special attention is paid to Revenue Management, which is a very important management tool used by airlines to take advantage of the differences in willingness to pay of passengers. The pricing policy, however, depends on the overall business strategy of the airline. Results show many differences, resulting from the fact that these two types of airline are characterized by very different fundamental business models and, correspondingly, also target groups. Since network carriers and also low-cost airlines have adjusted their pricing strategies lately, these recent developments will be discussed as well. This paper adds to the knowledge of this topic because it presents the most up-to-date and complete study on pricing regarding network carriers vs. low-cost airlines.https://tmstudies.net/index.php/ectms/article/view/1090/pdf_104pricing policyrevenue managementwillingness to paynetwork carrierslow-cost airlines |
| spellingShingle | Christian Wehner Jesús Manuel López-Bonilla Luis Miguel López-Bonilla José António C. Santos State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines Tourism & Management Studies pricing policy revenue management willingness to pay network carriers low-cost airlines |
| title | State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines |
| title_full | State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines |
| title_fullStr | State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines |
| title_full_unstemmed | State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines |
| title_short | State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines |
| title_sort | state of the art of pricing policy in air transportation network carriers vs low cost airlines |
| topic | pricing policy revenue management willingness to pay network carriers low-cost airlines |
| url | https://tmstudies.net/index.php/ectms/article/view/1090/pdf_104 |
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