Research On Ticket Pricing Strategy Of Shandong Airlines

In recent years,with the rapid development of the domestic economy,the air transport industry has also maintained its rapid growth.And the average passenger transport volume has increased by more than 10%per year.In 2013,the Civil Aviation Administration of China reopened the approval of new airlines.The low cost carriers poured into the airlines,and the number of domestic airlines was further expanded.At the end of 2016,there were 59 domestic airlines.In terms of capacity,the civil aviation transport aircraft in 2016 increased by 10.49%compared with the previous year.It is estimated that the average annual growth rate of domestic transport aircraft will remain at around 10%in the coming period.Overcapacity and the influx of low-cost carriers will have a great impact on air transport prices.From the outside,the high speed railway has a great impact on the civil aviation transportation,and it is accelerating the connection with the market in the aspects of service quality and income management.In 2016,the national development and Reform Commission,the Ministry of transport and China Railway Corporation jointly issued the"long-term railway network planning",draw the outline of the new era high speed rail network blueprint.At the end of 2015,the national high speed railway was 19,000 kilometers,and it is expected to increase to 30,000 kilometers by the end of 2020.Shandong Airlines has maintained a rapid development trend for 22 years.As of February 2018,it has 112 Boeing B737 series aircraft,and formed the "big triangle"route network with Shandong,Xiamen,Chongqing as the fulcrum.Since 2006,it has maintained a brilliant record of 12 consecutive years of profitability and is gradually moving toward large airlines.With the increasingly fierce competition in the domestic passenger market and the continuous impact of high-speed rail,civil aviation has entered an era of"popularization" and "meager profit" characterized by "low fares and low discount".In order to sustainably develop and enhance its competitiveness,Shandong Airlines must make reasonable pricing strategies under the premise of increasing total investment.By using PEST model and Porter five forces model,this paper analyzes the macro-environment and industry competition environment faced by Shandong Airlines.And analyzes the current situation of ticket pricing strategy by using the theory of pricing economics and revenue management theory.By combining the theoretical analysis with the actual case,this paper studies various pricing strategies,analyzes the specific pricing types,establishes the pricing target of maximizing seat kilometre income,and put forward specific optimization proposals aimed at the differential pricing strategy,the dynamic Pricing strategy,competition-based pricing strategy.It is considered that further market segmentation,improvement of air ticket restriction conditions and the implementation of accommodation productization will help the success of differential pricing strategy.Increasing the accuracy of forecasting will help to optimize the dynamic pricing strategy and introduce the index of reaction data dispersion to evaluate the competition The rationality of the distribution of flight class space in case,to provide a basis for decision-making to improve the distribution of class space in the later stage.When the two companies competed for a limited number of seats,the demand price model was established.Another company has the corresponding optimal pricing to maximize flight revenue.Finally,several schemes for the implementation of Shandong Airlines' ticket pricing strategy are put forward:improve the revenue management system,improve the internal control mechanism and strengthen the construction of talent echelon,in order to further improve the revenue management of Shandong Airlines and achieve the steady and healthy development of Shandong Airlines.