Theory of product policy and practices in airlines | Zendy

Ronald Wilczek | Zendy

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Theory of product policy and practices in airlines

Author(s) -

Ronald Wilczek

Publication year - 2019

Publication title -

autobusy – technika eksploatacja systemy transportowe

Language(s) - English

Resource type - Journals

eISSN - 2450-7725

pISSN - 1509-5878

DOI - 10.24136/atest.2019.186

Subject(s) - profitability index , business , product (mathematics) , industrial organization , revenue , distribution (mathematics) , personalization , revenue management , marketing , price discrimination , finance , mathematical analysis , geometry , mathematics

Pricing and product policy in the airline industry is very complex and different from other industries, thus a successful airline has to manage its products and pricing perfectly, otherwise it will not succeed on the extremely competitive airlines market. This paper has two main goals, firstly to generally define product policy and secondly to show the product policy of airlines. Currently, airlines operate in a very competitive industry with little to no option to differentiate their product which leads to low profitability. New Distribution Capability and another new technology have the potential to increase airlines’ revenue by better price discrimination and more personalization.

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