Presentation for

Report

TOPIC: Seat Allocation In Flights By Their Prices

Submitted By:
• Soumya Kushwaha
• Vansh shah
 Objectives
+ To know the impact of extra fees on revenue generation for
airlines.
+ To study the different pricing models adopted by airlines.
+ To know the factors that influence passenger’s decision to opt
for extra fees for seat allocation.
+ To know how do the extra fees affect the overall customer
satisfaction with the airlines.
+ To know the customer’s perception about extra fees for seat
allocation.
 Research methodology
This report is being conducted by the “doctrinal method of
research”. The reason behind the use of this method is to obtain
accurate information from secondary sources like articles, blogs
and websites.
 Findings
+ There is no clear consensus on the maximum percentage of seats for which airlines
should be permitted to charge a seat allocation fee. However, the majority of
respondents in the survey were in favour of limiting the percentage of seats that can be
charged with allocation fees.
+ The research problem revolves around finding the optimal pricing strategy for seat
allocation that balances the objectives of the airlines and the preferences of the
passengers. This involves a trade-off between charging high prices for premium seats
and attracting more customers who are willing to pay less for standard seats.
+ The study aims to analyse the factors that influence seat allocation in flights by high
prices, covering the demand and supply of seats, the pricing strategies of airlines, and
the consumer behaviour and preferences of passengers.
+ The report investigates the impact of additional fees on revenue generation for airlines,
the various pricing models adopted by airlines, the factors influencing passenger
decisions regarding extra fees for seat allocation, and the overall customer satisfaction
with airlines.
 Recommendations
+ Conduct a survey among frequent flyers to analyse their preferences, willingness to pay, and
satisfaction with the current system. The survey could also include questions about the factors that
influence their seat choice, such as comfort, privacy, safety, and convenience. The survey results
could provide valuable insights into the demand and supply of seats in different flight segments, as
well as the potential benefits and drawbacks of implementing a price differentiation strategy.
+ Provide more value and benefits for the customers who choose to pay for seat allocation, such as
priority boarding, extra legroom, complimentary snacks or drinks, etc. Segment the market and offer
different pricing strategies for different customer groups, experiment with different pricing models
and test their effectiveness and customer response, such as dynamic pricing, auction-based pricing,
etc.
+ Airlines should be cautious when implementing policies that charge extra for seat selection and
should consider the impact on their customers. They should also benchmark the best practices and
learn from the successes and failures of other players in the industry .
+ Airlines should ensure that they do not violate the rights of consumers, such as the right to choose,
the right to consumer education, and the right to safety. They should also take into account the
perceived value, fairness, and transparency of the pricing system, as well as the expectations and
 Limitations
+ Lack of data on the actual seat allocation process: The report may be limited
by the availability of comprehensive data on the actual seat allocation process used
by airlines, which could impact the depth of analysis and conclusions drawn.
+Possible variations in prices across different regions and seasons: The study
may not fully capture the potential variations in seat allocation pricing across
different regions and seasons, which could affect the generalizability of the findings.
+Ethical implications of price discrimination: The report acknowledges the
ethical implications of price discrimination in seat allocation, but the extent to which
this issue is addressed and its impact on the findings may be limited.
+Reliance on secondary sources: The report is conducted using the "doctrinal
method of research," relying on secondary sources such as articles, blogs, and
websites. While this method may provide valuable insights, it may also limit the
depth of primary research and firsthand data collection .
Thank you!!