| The airlines industry has small profit margin, which leads to the fierce competition between airlines. The ticket price can directly influence airlines' income and it's an effective tool for airlines to deal with competition. Therefore, airlines' pricing strategy is a key to their survival and thrives. Because of government's regulation, competition among China's airlines is reduced. In year 2013 and 2014, The Civil Aviation Administration and the National Development and Reform Commission jointly issued two notices on improving domestic civil aviation passenger transportation price policy to further release airlines' pricing regulation.With the gradually withdraw of “government protection umbrella”, China's airlines have to figure out how to make the right price in a competitive business environment. Thus, in order to provide support and decision-making basis for airlines' pricing, to make the airlines' pricing strategy more scientific and to promote airlines' income and profit level and their competitiveness, a research on airlines' pricing strategy from the view of competitiveness is carried out.Firstly, domestic and international existing research on airlines' pricing activitives with literature analysis method is summerized. By doing this, the research angle of studying airlines' pricing in a competitive environment and studying their demand on the basis of travelers' purchase decision behavior is ascertained. Secondly, the pricing method of China's airlines and their deficiencies are analyzed and summerized. Thirdly, the impact of competition, demand and cost on airlines' pricing is analyzed. Fourthly, a two-flight game model is constructed considering the three influence factors and their logic relations. Then,the pricing game of two airlines competing respectively in leisure travelers and business travelers market is modeled. Finally, some suggestions for airlines' pricing are presented basing on all the qualitative and quantitative studies of this paper. |
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