The mysterious world of airline pricing: innovative practices and strategies for profit

Q2 Business, Management and Accounting

Journal of Business Strategy Pub Date : 2022-02-04 DOI:10.1108/jbs-12-2020-0270

Chiranjeev S. Kohli, Mohammad Reza Habibi

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引用次数: 1

Abstract

Purpose Business success and pricing are very closely intertwined. This study aims to explain how businesses can improve their profitability by relying on creative pricing strategies that managers across industries can adopt. Design/methodology/approach This study uses research from related fields and a detailed analysis of the airline industry to deconstruct its success and identify innovative pricing practices that have helped salvage it. Findings Based on our analysis, the authors propose several strategies that can help companies control their pricing and leverage it to increase profitability. These include decommoditizing, segmenting the market (up and down), scrutinizing customer behavior, offering versioning and ancillary services, actively promoting these add-ons and using dynamic pricing. Originality/value This study takes an unusual approach and look at the airline industry – literally a textbook example of an oligopoly. The authors argue that if companies in an oligopoly – with undifferentiated services – can dig themselves out of the depths of nonexistent profits by using innovative pricing, it should be much simpler for companies in other industries that offer easier differentiation.

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航空公司定价的神秘世界:盈利的创新实践和策略

目的商业成功和定价是紧密联系在一起的。这项研究旨在解释企业如何通过依赖各行业经理可以采用的创造性定价策略来提高盈利能力。设计/方法论/方法本研究利用相关领域的研究和对航空业的详细分析来解构其成功，并确定有助于挽救其成功的创新定价实践。这些措施包括取消修改、细分市场（上下）、仔细审查客户行为、提供版本控制和辅助服务、积极推广这些附加组件以及使用动态定价。独创性/价值这项研究采用了一种不同寻常的方法，着眼于航空业——实际上是寡头垄断的教科书式例子。作者认为，如果寡头垄断中的公司——拥有无差别的服务——能够通过创新定价从根本不存在的利润深处挖掘出来，那么对于其他行业中提供更容易差异化的公司来说，这应该会简单得多。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Business Strategy Business, Management and Accounting-Management Information Systems

CiteScore

4.50

自引率

0.00%

发文量

期刊介绍： The Journal of Business Strategy publishes articles with a practical focus designed to help readers develop successful business strategies. Articles should say something new or different and may propose a unique perspective. They should not offer prescriptions to CEOs on how to manage, but rather be directed toward middle and senior managers at companies of all sizes and types, as well as consultants and academics who want to think about their businesses in new ways. Coverage: As one of the few journals dedicated to business strategy, JBS defines strategy in the broadest sense and thus covers topics as diverse as marketing strategy, innovation, developments in the global economy, mergers & acquisition integration and human resources. We have a penchant for substantive, provocative and well-written articles. We also like to break the mould and include articles on topics readers are unlikely to find in other business publications.