Research On Dynamic Pricing Strategy Of Revenue Management

This thesis firstly introduces the definition and development of revenue management as well as its research objectives and research categories, points out the significance of dynamic pricing strategy to enhance the competitiveness of Chinese enterprises. Then this thesis reviews and summarizes the theory of dynamic pricing, classfies it into such general frameworks as single-product dynamic pricing without replenishment, single-product dynamic pricing with replenishment and multiproduct, multi resource pricing, and analyzes each of them in the context of deterministic demand and stochastic demand, respectively.. After that, two of dynamic pricing applications are researched. First, based on the theory of dynamic pricing in revenue management, this thesis utilizes the difference between the expected marginal revenues at selling time and refunding time to evaluate the refunds as well as formulates the corresponding mathematical model of it while analyzing the problem of refunding in airline industry, so that the amount of refunds is relative to both of the selling and refunding time and the state of selling. This method not only protects the interest of the airline company, but also ensures the interest of consumers, thus increases the utilization rate of airline resources in some degree. Second, the thesis proposes two strategies of dynamic pricing and inventory control for products and services representing the social orientation and financial goal of nonprofit organizations. One is weighted demand strategy that maximizes the total demand and the other is weighted surplus that optimizes the total customer surplus, both of which are tractable convex programming. Finally, this thesis previews some possible extensions and directions of dynamic pricing strategy in the future.