Assignment number 02

OTM-351 Introduction to Operations Management

Submission deadline: 25th December 2022 Max. marks= 10 marks

Note: The assignment should not exceed 1000-1200 words.

Q1. Airline passengers today stand in numerous lines, are crowded into small seats on mostly full
airplanes, and often spend time on taxiways because of air-traffic problems or lack of open gates. But
what gripes travellers almost as much as these annoyances is finding out that the person sitting next to
them paid a much lower fare than they did for their seat. This concept of revenue management results
in ticket pricing that can range from free to thousands of dollars on the same plane. The below figure
illustrates what passengers recently paid for various seats on an 11:35 A.M. flight from Minneapolis
to Anaheim, California, on an Airbus A320.

Make the case for, and then against, this pricing system. Does the public seem to accept revenue
management? What would happen if you overheard the person in front of you in line getting a better
room rate at a Hilton Hotel? How do customers manipulate the airline systems to get better fares?