A Research On Fairness Perception In Airline Revenue Management

With the rapid development of China’s civil aviation transport industry, the competition between airlines increased gradually. How to enhance the airline’s economic efficiency has become the current focus of the reform of the CAAC. The traditional revenue management is based on the assumption of economic rational man that the customers with a clear preference system and powerful computing ability have a complete understanding of the market environment. While in the real life, the energy and computing power of a customer is limit, which means they can’t always make the optimization judgment. They usually prefer to find a satisfying purchase plan according to their limit knowledge and the individual’s own intuition. The human instinct, desire, emotion and other factors will affect their decision in this progress.Based on the background of airline revenue management, we will introduce the perceived price fairness into traveler’s choice behavior in this paper, which is more practical and provide new theoretical explanation and basis for analysis, understand, and adjust the deviation in the implementation process of the traditional revenue management system. We firstly introduce the history and research status of revenue management, fair price and the perceived price fairness. Then, we discuss the airline passenger’s preference and selective probably, introduce the perceived price fairness into the passenger’s selection progress and establish a model by the discrete choice model. After that, we test the perceived price fairness and choice behavior of the passengers, and find:(1) ticket price information and market reference price have significant interaction effect on the perceived price fairness, which means the inflation of price by uncontrollable external factors is most acceptable;(2) the loyalty of passengers have no significant effect on the perceived price fairness, but can improve the probability of buying tickets. Finally, we put forward some suggestions for airlines to deal with the perceived price fairness according to the experimental results.