Study On Dynamic Pricing Strategy For Railway Passenger Fares Considering Customer’s Choice Behavior

Dynamic pricing refers to the price to be adjusted according to market demand and inventory levels change dynamically. For rail system separating policy, reasonable pricing strategy will be applied to the dynamic pricing process in the railway system can help railway companies to better respond to changes in market demand, especially solving real low attendance in the high-speed rail so as to bring the railway company with huge gains. In order to effectively carry out dynamic pricing of railway passenger fares, analyzing the behavior characteristics of various types of travelers choosing different types of trains to accurately grasp the changing market demands is needed. Based on this, this paper by analyzing the behavioral characteristics of choice to establish passenger rail passenger trains on different types of selection probability model to predict railway market supply and demand, and thus gives a variety of train types of joint dynamic pricing strategy, which has important theoretical and practical significance.Based on the research of customer choice behavior and dynmic pricing in domestic and overseas, joint dynamic pricing strategy for types of train considering customer’s choice behavior were studied. The main contents of this paper include the following aspects.First, this paper analyzed the status of the passenger traffic to propose probabilistic model for travelers to choose different types of trains. By segmenting the passenger market, passenger behavior of choosing a different train types is analyzed. For bounded rationality behavioral characteristics of decision-making at different passenger groups choosing different types of trains, the paper analyzes reference point and the importance of passengers and gives calculation method to quantify the impact factors on the behavioral of choosing the type.Then the paper gives the customer choice probability model on the basis of perceived utility model for types of customs. At last, the selection probability model of different types of train is given.Secondly, this paper gives joint dynamic pricing model for various types of train refering to selection probability model of different types of train. It regards the probabilities of choice as the probabilities of market demand different types of rail passenger trains, takes the railway company’s overall revenue as the objective function, builds joint dynamic pricing model for various types of train. It analyzes the model theory based on revenue management theory, deduces fare strategies at different times in different situations remaining seat gain value corresponding relationship and gives heuristic algorithm for alternative approximate optimal strategy at last.Thirdly, in order to verify the validity of the rationality and feasibility of joint dynamic pricing strategy for types of train considering customer’s choice behavior, the proposed method is applied to joint dynamic pricing strategy for various types of train between S-D station.The results explain it can achieve the dual purposes of improving attendance and overall revenue of the railway company.Finally, we summarize the main findings and conclusions, noting that the main contribution of this paper and the limitations of the study, and further research needs to be undertaken outlook.