Airline Pricing Free Essay

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Airline Pricing

Clearly, the price attached to an airline ticket has got nothing to do with the length of the journey. It has everything to do with supply and demand. The airlines employ some complicated computer programs to try to meet a number of goals, the main two being to avoid flying with any seats empty and to maximize the total net revenue to the airline. A third goal is to attract customers from other airlines and a fourth is to create customer loyalty among regular flyers. These goals are what lie behind all those promotional packages and those loyalty membership programs like United's Mileage Plus or American Airlines' AA Advantage. These programs create additional complexities to the pricing system. For example, as a 100,000+ miles a year mem

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