Designing and Pricing Services Based on Customer-Perceived Value: An Airline Company Feasibility Study

Authors:
Emmanuel Fragniè/re;Angela Lombardi;Francesco Moresino
Affiliations:
Haute É/cole de Gestion de Genè/ve, University of Applied Sciences Western Switzerland, CH-1227 Carouge Genè/ve, Switzerland/ and School of Management, University of Bath, Bath BA2 7AY ...;Lombardi Consulting Ltd., Xemxija, SPB 3921, Malta;Haute É/cole de Gestion de Genè/ve, University of Applied Sciences Western Switzerland, CH-1227 Carouge Genè/ve, Switzerland
Venue:
Service Science
Year:
2012

Citing 4
Cited 0

Revenue Management: Research Overview and Prospects

Transportation Science
Conjoint Optimization: An Exact Branch-and-Bound Algorithm for the Share-of-Choice Problem

Management Science
Consumer Preferences and Product-Line Pricing Strategies: An Empirical Analysis

Marketing Science
Estimating Primary Demand for Substitutable Products from Sales Transaction Data

Operations Research

Quantified Score

Hi-index	0.00

Visualization

Abstract

We propose a new integrated model for pricing airline tickets that takes into account the perceived value of multiple services associated with a given flight. For instance, clients perceive benefits on different attributes such as refund options, baggage allowances, time slots, days of operations, Web check-in services, as well as airline brand. These elements of perceived values are not, to our knowledge, modeled in existing yield management systems. Our integrated model includes a classical aggregate planner for services as well as a share of choice. In this paper, we have worked closely with an airline company and provided it with relevant managerial recommendations.