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On the fairness of airlines' ticket pricing as a result of revenue management techniques
, Article Journal of Air Transport Management ; Vol. 40, issue , August , 2014 , pp. 56-64 ; 09696997 ; Modarres, M ; Sibdari, S ; Sharif University of Technology
Abstract
Pricing and availability of tickets have always been a source of confusion for customers in transportation industries. What is the best time to buy tickets? Why passengers taking the same flight might pay significantly different prices for the same seat? Why round trip tickets between two cities sometimes become cheaper than the one-way flights between them? Is it fair to buy a ticket for an itinerary cheaper than a ticket for just a part of it? These observations make customers wonder why they pay higher prices for shorter flights. In this paper, we study the airlines' revenue management systems and explain some of these pricing schemes in travel industries. We develop a simulator to study...