How Does the Airline Industry Implement the Yield Management Pricing

question 61

Essay

How does the airline industry implement the yield management pricing strategy?

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Definitions:

Elasticities of Demand

Measures of how responsive the quantity demanded of a good or service is to a change in its price, income levels, or other factors.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on the willingness or ability of the customers to pay.

Marginal Revenue Curve

A graph that shows the change in total revenue resulting from selling one additional unit of a product or service.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.