Price discrimination in the airline industry - what are the advantages of dynamic pricing system for airways?

Ing. Ahmet Can Özkan

Master's thesis

Anotácia:

Abstract The aim of this diploma thesis is to demonstrate why dynamic price discrimination is the most widely implemented pricing strategy by airway companies. At the present time, dynamic price discrimination is commonly used by airways to increase the revenue. Ticket prices for a particular flight change based on the time. This diploma thesis focuses on which pricing policies are applied in the air transportation industry and why dynamic pricing is more advantageous than other pricing policies used by airline companies.

Abstract:

Abstract The aim of this diploma thesis is to demonstrate why dynamic price discrimination is the most widely implemented pricing strategy by airway companies. At the present time, dynamic price discrimination is commonly used by airways to increase the revenue. Ticket prices for a particular flight change based on the time. This diploma thesis focuses on which pricing policies are applied in the air transportation industry and why dynamic pricing is more advantageous than other pricing policies used by airline companies.

Keywords

Pricing, price discrimination, market structure, consumer surplus, producer surplus, total surplus, price elasticity, airline market structure, airline business models, revenue management, dynamic pricing, airline industry, first degree price discrimination, second degree price discrimination, third degree price discrimination

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 27. 4. 2015

Obhajoba závěrečné práce

• Obhajoba proběhla 26. 6. 2015
• Vedúci: Ing. Petr Mach, Ph.D.
• Oponent: Mgr. Ing. Dominik Stroukal, Ph.D.

University of Finance and Administration

Master programme / odbor:
Economics and Management / Business Management and Corporate Finance