drakedaa [printed: August 7, 2006 9:33 AM] [saved: August 7, 2006 9:40 AM] 07060K239 - 805ac688

PRICING FOR AIR TRAVEL

By: Garima, Karthikeyan, Katama Raju, Manish, Mansur, Nitish, Sooraj, Subodh, Vijayshankar, Vikas
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MAJOR COMPONENTS OF AN AIR FARE

Ticket price Fuel surcharge Airport tax Security charge Passenger service charge Passenger service charge (international) Passenger service charge (domestic ) Noise isolation charge fee

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FACTORS AFFECTING THE AIRFARE

The goal of an airline company to avoid flying with any seat empty and to maximize the total net revenue. The goal of an airline company to attract customers from other airlines and to create customer loyalty among regular flyers. Booking Time

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YIELD MANAGEMENT

Yield management is a tool that can be used to smooth the demand pattern.

In peak season, the airline can increase its revenues by increasing the fare on its tickets and in low season, it can increase capacity utilization by offering low prices.
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FACTORS THAT MAKE YIELD MANAGEMENT MORE EFFICIENT

q q q q q

Ability to segment markets Perishable inventory Products Sold in advance Fluctuating Demand Low marginal sales cost and high additional change costs.

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PRICING STRATEGIES IN AVIATION TO ATTRACT CUSTOMERS

Competition pricing. Pricing. Pricing. Pricing. Pricing.

Penetration Premium Optional Bundle

Pricing. in fare for the loyal

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Psychological Concession

customers.
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BOOKING TIME

We may get comparatively low fare on Tuesday, Wednesday and Thursday. The fare of airlines tickets starts increasing 14 days prior to date of journey. We can get extremely low fares at last moment of journey.

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PRICE CARTEL
A cartel It

is a formal agreement among competing firms. is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. usually occur in an oligopolistic industry. number of sellers and usually involve homogeneous products.
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Cartels Small

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REFERENCES

http://www.linkedin.com/answers/business-travel/air-travel/BTV_AIR/5778 http://www.maa.org/devlin/devlin_09_02.html http://www.ehow.com/facts_7440041_cheapest-buy-airfare_.html

http://abcnews.go.com/Travel/best-time-buy-airline-tickets/story?id=4519 www.wikipedia.com www.marketingteacher.com/lesson-store/lesson-pricing .html www.ieor.berkeley.edu/.../Yield%20Management%20in%20 airlines.pdf www.flykingfisher.com www.airindia.in

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THANK YOU

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