The Pricing Strategy And Intermediary Selling Mechanism For Airline With Strategic Passengers Behavior

As one of the main technologies of revenue management,dynamic pricing is an important means by which airlines adjust ticket prices for different levels of supply in order to get the most profits.With the rapid development of the Internet,dynamic pricing has become a hot research topic in academia in recent years and widely used in the sales of airline tickets.Currently,due to the presence of strategic passengers in the ticket sales market,which have a great impact on airline revenue.Therefore,in order to ease passengers' strategic behavior in the field of ticket sales,this article introduce an intermediary sales mechanism.Based on the current research on dynamic pricing of income management,through comprehensive consideration of passengers' strategic behavior and intermediary business,from the perspective of monopoly and competition,using game theory and dynamic optimization theories and methods.This paper discusses the pricing strategy of airlines and the effectiveness of intermediary sales mechanism,and provides theoretical guidance for airline to formulate appropriate prices and increase profits.The main contents of this paper include two parts.First,this paper study the pricing of airlines and the effectiveness of sales mechanism of intermediaries considering the strategic behavior of passengers in monopolistic environment.By using the backward induction method,this paper analyzes the equilibrium pricing strategy of airlines and intermediaries,obtains the sub-game equilibrium price and expected return,and discusses the effectiveness of the intermediary sales mechanism.The research shows that: 1)When the passenger has a valuation discount,the sales mechanism of the intermediary can effectively mitigate the impact of the passenger's strategic behavior on the airline's earnings within a certain discount range,and has the feasibility of implementation;2)Under the intermediary sales mechanism,when the passengers have the behavior of heterogeneous purchase,the optimal pricing of airlines is equal to or greater than the direct selling price,and as long as the air ticket sold by the airline to the intermediary is less than the sales price,the intermediary sales mechanism is effective.Secondly,this paper study the pricing strategy of airlines and the sales mechanism of intermediaries considering the strategic behavior of passengers in the competitive environment.Through the use of Hotelling model,this paper analyzes the pricing strategy of airlines and the impact of different market factors on airline revenue,and further explores the effectiveness of intermediary sales mechanism under competitive environment.The conclusion is drawn as follows: 1)In the direct sales,when the passengers have the strategic behavior,the two-cycle pricing of airline tickets is the same;2)Under the regional monopoly,when the airlines adopt partial sales strategies,the expected benefits obtained by the airlines are greater,and the existence of the intermediary sales mechanism is effective at this time;3)When there is a difference in service quality between airlines,the intermediary sales mechanism is effective under certain conditions.