Low cost carriers in China: passenger segmentation, controllability, and airline selection

Pan, Jing Yu; Truong, Dothang

doi:10.1007/s11116-020-10105-z

Cited by 3 publications

(1 citation statement)

References 49 publications

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“…The current research on the travel behavior of civil aviation passengers is divided into two main directions: passenger behavior segmentation (Pan & Truong, 2021) and passenger value calculation (Nakahara & Yada, 2011). Most airlines subdivide passengers according to the fare of the ticket they purchased or the accumulated mileage distance.…”

Section: Introductionmentioning

confidence: 99%

Recognition of Air Passengers' Willingness to Pay for Seat Selection for Imbalanced Data Based on Improved XGBoost

Hong

Tang

et al. 2022

International Journal of Cognitive Informatics and Natural Intelligence

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Passenger-paid seat selection is one of the important sources of ancillary revenue for airlines, and machine learning-based willingness-to-pay identification is of great practicality for airlines to accurately tap potential willing passengers. However, affected by periodic statistical errors, air passenger order data often has some problems such as high noise, high latitude, and unbalanced category. In view of this, this paper proposes a method for identifying air passengers' willingness to pay for seat selection based on improved XGBoost, which is improved and integrated from three stages: data, feature, and algorithm. The feasibility of the proposed multi-stage improved integration method is verified by real airline passenger dataset, and the experimental results show that the proposed improved method has better classification effect when compared with the classical six imbalance classification models, which provides a basis for accurate marketing of airline paid seat selection programs.

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Section: Introductionmentioning

confidence: 99%

Recognition of Air Passengers' Willingness to Pay for Seat Selection for Imbalanced Data Based on Improved XGBoost

Hong

Tang

et al. 2022

International Journal of Cognitive Informatics and Natural Intelligence

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Heterogeneity in the transfer time of air-rail intermodal passengers based on ticket booking data

Yuan¹,

Yang²,

Feng³

et al. 2022

Transportation Research Part A: Policy and Practice

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Airline revenue management with segmented continuous pricing: methods and competitive effects

Long,

Belobaba

2023

J Revenue Pricing Manag

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With the introduction of IATA’s New Distribution Capability (NDC), airlines will no longer be limited to discrete fare classes for their fare product distribution but could show fare quotes from continuous ranges to booking requests. NDC will also allow airlines to present different fare quotes to passengers from different demand segments as identified by the airline. In theory, airlines can better extract passenger willingness to pay, and thus, see gains in revenue, by offering segmented continuous fare quotes to different passengers requesting to book. This paper describes the revenue management (RM) methods for Segmented Continuous Pricing and examines their potential effects on airlines’ revenue through simulations in the Passenger Origin–Destination Simulator (PODS). We describe a class-based algorithm for continuous pricing, a straightforward extension from the traditional methods used with existing RM systems. Our simulation results show that in a calibrated scenario in which only one airline adopts Segmented Continuous Pricing and has an 80% accuracy in identifying business versus leisure passenger booking requests, the first-mover airline can see as much as a 17% revenue gain, at the expense of competitors. The revenue gains come primarily from the leisure passenger segment by offering lower fares than competitors closer to departure. The first-mover airline loses bookings but does not see losses in revenue from the business passenger segment. We also explore potential response strategies by the competing airlines. We discover that competitors can reverse the first-mover’s revenue gain by removing their fare restrictions while still using traditional RM methods. We conclude that although adopting Segmented Continuous Pricing is promising in theory, its gains in practice will depend heavily on the competitive situation and the responses made by competing airlines.

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Low cost carriers in China: passenger segmentation, controllability, and airline selection

Cited by 3 publications

References 49 publications

Recognition of Air Passengers' Willingness to Pay for Seat Selection for Imbalanced Data Based on Improved XGBoost

Recognition of Air Passengers' Willingness to Pay for Seat Selection for Imbalanced Data Based on Improved XGBoost

Heterogeneity in the transfer time of air-rail intermodal passengers based on ticket booking data

Airline revenue management with segmented continuous pricing: methods and competitive effects

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