The Airline Supply Chain Pricing Strategy Based On Passenger's Strategic Behavior

The airline supply chain pricing is an important means for airlines to engage in competitive market and increase revenue by reasonable pricing for air tickets,effective cooperation with agents and passengers,which can achieve optimal business behavior.With the rapid development of the Internet,passengers get information about tickets more and more easily.As a result,the proportion of strategic behaviors in this group will continue to increase.Ticket prices can affect the behavior of strategic passengers,and passenger's strategic behavior can affect pricing strategy of the airline in turn,which can affect the supply chain's decision-making.This paper considers passenger's strategic behavior in the supply chain pricing,and proposes airline-agent supply chain model and reasonable pricing strategy to increase revenues,which can provide airlines with some management implications.Based on the current research on supply chain pricing,this paper uses game theory,optimization theory and method to study the behavior of passengers' purchasing strategy.By considering factors such as the competitive market environment and the demand uncertainty,this paper studies the airline supply chain pricing strategy under the passenger's strategic behavior.First,this paper takes the two airlines that provide the same air tickets as the object,and studies the pricing strategy of airline supply chain when the passengers have the strategic behavior.First,using the Hotelling model,this paper constructs an airline-agent supply chain model to analyze the airline's equilibrium price and revenue in competitive markets.Then,compared with the direct sales model,it studies the validity of the airline-agent supply chain model.Finally,examples are used to discuss the influence of passenger's behavior on the pricing of the supply chain.Research shows that the airline's revenue in the airline-agent supply chain model is greater than the direct sales model.Then,this paper studies the airline supply chain pricing strategy considering the capacity constraints in the competitive market.First,the pricing strategies of the airline and the agent are analyzed,which their equilibrium prices and revenue are solved.Then,the optimal decision of each member of the supply chain is analyzed and it compares with the traditional direct sales model.Finally,examples are given to discuss the impact of different parameters on revenue sharing ratio,revenue of the airline and agent.The applicable scope of the supply chain model and the impact of capacity constraints on revenue of each member are solved.Finally,this paper extends the model to demand uncertainty.According to the characteristics of the aviation market,passengers are divided into short-sighted passengers and strategic passengers.It uses backward induction to study the equilibrium pricing and revenue of the airline and agent.Then it is extended to the traditional direct sales and analyzes the pricing decisions of each member.Finally,examples are given to show the practical application of the model.Research shows that the airline-agent supply chain is effective.