ABSTRACT
This chapter sets out how, over time, airlines have developed multiple pricing strategies they can deploy in order to maximise the amount of revenue generated from passengers. Airlines now typically revenue manage each flight in order to maximise fare revenues based on the type of passenger, and thus booking profile, expected to use each service. The methods and reasons for deploying different pricing strategies tends to rest on the operational model of the airline and the ways in which they generate revenue from passengers on-board the aircraft. A wide range of distribution channels are used by airlines to reach, and sell to, as many customers as possible. Airlines are developing sophisticated ways of further maximizing overall revenue generation from passengers and minimsing operational costs to be as profitable as possible, which has implications on airport infrastructure and the ways in which airlines engage with customers.
