Dynamic Pricing in the Airline Industry R. Preston McAfee and Vera te Velde California Institute of Technology Abstract: Dynamic price discrimination adjusts prices based on the option value of future sales‚ which varies with time and units available. This paper surveys the theoretical literature on dynamic price discrimination‚ and confronts the theories with new data from airline pricing behavior. Correspondence to: R. Preston McAfee‚ 100 Baxter Hall‚ California Institute of Technology‚
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Airline industry value chain Inbound logistics Primary activites Stock control airlines must store and handle fuel‚ food‚ and drinks. Stock is managed to ensure reductions in stock turnover‚ thus reducing costs and wastage. Route selection airlines must choose their flight routes. These will be selected upon desired routes‚ and deals negotiated with the airports. Airports are selected for their prime location‚ to allow consumers to get to their desired location. This then entails the
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2‚321‚580 people residing in the Borough. Queens County is the most expanded and second largest economy of the New York City. Immigration has had a strong impact over the Queens economy. Culturally this is the diverse populated borough of New York where around half of the population is consisting of foreign born residents. The airline industry is a major factor of the borough economy and is a main employer in the neighborhoods around JFK and LaGuardia airports. Health care and social assistance employment
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Airline Industry Competitive Structure The market structure of the Airline industry consists of a few corporations making its market structure an oligopoly. The airline industry is very volatile to changes in oil prices and can lead to fare increases and reducing overall profits. In 2011 for example jet fuel cost was at 2.84 a gallon up 243% from 1995 adjusted with inflation. In addition to what the current market is charging for a barrel of oil airlines have to deal with the “crack spread”‚ which
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THY has some features that makes it strong in the sector. First of all‚ THY charges close to a discount-airline. Secondly‚ it offers a business class service on both overseas and domestic flights. Moreover‚ THY offers a frequent flyer program (an example to this is; Miles&Smiles) Fourthly‚ it competes with international and domestic airlines and long distance inter-city bus services (through price cuts). Finally‚ THY has the best landing slots (in Istanbul & Ankara) and it is the only Turkey based
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Project Proposal On “Emerging trends in retailing” Prepared by Mr. Atanu Maity Roll No : 000-0000000 XXXX XXXX University Table of Content INTRODUCTION: 3 OBJECTIVES: 5 HYPOTHESIS: 5 METHODOLOGY: 6 PRIMARY DATA: 6 SECONDARY DATA: 6 BIBLIOGRAPHY: 6 Emerging trends in retailing INTRODUCTION: The term "Retailing" refers to any activity that involves a sale to an individual customer.The essence of retail marketing is developing merchandise
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Tallinn University of Technology Tallinn School of Economics and Business Administration Global Economic Trends Individual Work: “Ireland” Professor: Ricardo Vicente Student: Roksolana Sliusar Tallinn 2014 Content Introduction 1. General information about Ireland 2. Globalization in Ireland 2.1 General globalization information 2.2 Ireland Political Globalization 2.3 Ireland Social globalization 2.4 Ireland Economic Globalization Conclusion 2 Introduction When I was thinking about that I
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The Impact of Economic Reforms on Industry in India: A Case Study of the Software Industry N. R. Narayana Murthy The Indian economy‚ in the last decade‚ transitioned from an inward looking‚ closed economy‚ to a liberalized‚export-oriented one. The software sector witnessed unprecedented growth‚ with exports growing at a compounded annual growth rate (CAGR) of around 45 percent and domestic software sales at around 35 percent. In fact‚ before 1991‚ the Indian software sector was adversely affected
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The Economic Impact of Rising Oil Prices in Automotive Industry The rise in the oil prices plays a major role in the automotive industry. “The world consumes over 82 million barrels of oil per day (BPD)‚ with the united states taking roughly 20 million BPD” (McFarlane). Oil provides 97 percent of the transportation fuels that helps to run the cars‚ trucks and other vehicles in the nation’s highway (Heinberg). Thus‚ when the price of the oil rises‚ it clearly concerns the auto industry because the
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Justification According to the result of part A‚ the author has better understanding on her personality and preferable learning styles. And it briefly explained the reason that the author to select this topic. Working human resources in service industry should be a suitable career for the author‚ because she realizes that to work with a wide range of people and provide to others are the main preferences. Regarding to her career choice‚ it is important for the author to know the factors that affecting
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