Part I.

a. Determine the revenue-maximizing price under a single pricing strategy. Your plane has 89 seats. All cancele

Group Number (after cancellations) Willingness to Pay

Aadvantage Platinum 3 $0 (You must book them)
Fabulous Cruise 15 $210
Miss Universe Contestants 20 $180
AA Vacation Travelers 16 $170
Bird Watchers 18 $215
Honeymooners 2 $275
Ski Bunnies 10 $225
Spring Break Revellers 5 $205
Semester Abroad 20 $315
Llama Farmers 8 $235
Additional Spring Breakers 3 $205
Wine Country Vacationers 0 $325
Gamblers Anonymous 4 $215
Senior Coupon Travelers 8 $170
Business Woman 1 $260
14-Day Excursion Fare 10 $205
AAdvantage Gold Travelers 4 $550
VIP Travelers 2 $650
RIO Carnival Tourists 2 $350
A1 Deadheading Crew 2 $0 (you must book them)
Businessmen 2 $750

Show your work down here.

Group Number (after cancellations) Price
Spring Break Revellers 5 $205
Additional Spring Breakers 3 $205
14-Day Excursion Fare 10 $205
Fabulous Cruise 15 $205
Bird Watchers 18 $205
Gamblers Anonymous 4 $205
Ski Bunnies 10 $205
Llama Farmers 8 $205
Business Woman 1 $205
Honeymooners 2 $205
Semester Abroad 20 $205
AAdvantage Gold Travelers 4 $205
VIP Travelers 2 $205
Total 102 $205
Total Revenue $ 20,910
Revenue Maximizing Price $205
Booked Passengers 102
No Shows 13
Passengers on Board 89
ne has 89 seats. All canceled bookings are refundable; no-shows are not. Assume you have perfect information on the no-shows

No-shows
2
0
0
4
2
1
2
0
2
1
0

0
5
0
2
2
1
0
0
0

No-shows
0
0
2
0
2
0
2
1
0
1
2
2
1
13
on on the no-shows
b. Assume you utilize first-degree price discrimination. Your plane has 89 seets. Assume you have perfect informati

Group Number (after cancellations) Willingness to Pay

Aadvantage Platinum 3 $0 (You must book them)
Fabulous Cruise 15 $210
Miss Universe Contestants 20 $180
AA Vacation Travelers 16 $170
Bird Watchers 18 $215
Honeymooners 2 $275
Ski Bunnies 10 $225
Spring Break Revellers 5 $205
Semester Abroad 20 $315
Llama Farmers 8 $235
Additional Spring Breakers 3 $205
Wine Country Vacationers 0 $325
Gamblers Anonymous 4 $215
Senior Coupon Travelers 8 $170
Business Woman 1 $260
14-Day Excursion Fare 10 $205
AAdvantage Gold Travelers 4 $550
VIP Travelers 2 $650
RIO Carnival Tourists 2 $350
A1 Deadheading Crew 2 $0 (you must book them)
Businessmen 2 $750

Show your work down here.

Group Number (after cancellations) Price Cahrged as per
Willingness to Pay
Businessmen 2 $750
VIP Travelers 2 $650
AAdvantage Gold Travelers 4 $550
RIO Carnival Tourists 2 $350
Semester Abroad 20 $315
Honeymooners 2 $275
Business Woman 1 $260
Llama Farmers 8 $235
Ski Bunnies 10 $225
Bird Watchers 18 $215
Gamblers Anonymous 4 $215
Fabulous Cruise 15 $210
Spring Break Revellers 5 $205
Additional Spring Breakers 3 $205
14-Day Excursion Fare 10 $205
106
Booked Passengers 106
No Shows 13
Oversold 4
Passengers on Board 89
ssume you have perfect information on the no-shows.

No-shows
2
0
0
4
2
1
2
0
2
1
0

0
5
0
2
2
1
0
0
0

No-shows Revenue
0 1500
1 1300
2 2200
0 700
2 6300
1 550
0 260
1 1880
2 2250
2 3870
0 860
0 3150
0 1025
0 615
2 2050
13 $ 28,510.00
Oversale Cost 400
Total Net Revenue $ 28,110.00