Research On Passenger Choice Behavior In Airline Revenue Management

Along with fierce competition in air transportation market, many airlines are seeking out the methods that can increase revenue and promote competition. This makes the revenue management system become popular in domestic market. This paper brings forward analytical groping study on the problem of airline passenger classes choice behaviour, which is based on the revenue management theory and bands together the theory of passenger choice behaviour. The aim of this paper is to develop a passenger classes choice model from the view of passenger choice theory. The main content of this paper includes the following aspects: Firstly this paper reviews the history of revenue management, discrete choice model and PODS passenger choice model. Then gets the factors that have an influence on passenger choice from the view of consumer choice theory and analyzes passenger preferences of all classes by the use of utility theory, and then expatiate on the research meanings in both theory and practice. Thirdly, with the use of discrete choice model and AHP, in this paper, we develop a passenger classes choice model and solve it. Finally, this paper gives an example to use the model and gets a conclusion that the model has good condition of practicability and correctness when using.