Talk: A Pricing Model To Optimize The Promotions Period In Airlines

Abstract

Promotions help increment the demand for a flight. Several decisions have to be made to offer a promotion such as its price and duration. We propose a method to estimate the behavior of customer inter-arrival time distribution, his buying probability distribution, and the dilution effect from data and develop a stochastic dynamic model to maximize the revenue, evaluating the decision of whether or not to offer the promotion. Finally we study the structural properties of the model and draw conclusions.

Date
Nov 15, 2016 11:00 AM — 12:30 PM
Location
Music City Center
Nashville, Tennessee

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