Study On The Airline Ticket Dynamic Pricing Mathematical Model

With the rapid development of economy and the continuous improvement of living standard,civil aviation is developing by passengers choosing airplane for travel.In this process,airline ticket price has always been the topic of debate among governments,airlines and passengers.For airlines,how to improve the revenues has also been attracting much attention.At present,the domestic and foreign scholars have done a mess of research from the view of pricing with the methods like revenue management,dynamic recurrent,calculus,game theory and so on.In comparison,game theory is one of the most effective way to solve the balance problems of conflicts of the parties under the same environment.In previous studies,the players are generally rival airlines.The game between airlines and passengers is relatively rare.Similarly,there are many uncertain objective factors in the game,such as season,climate,refund,NOSHOW and so on.These factors both can effect the results of the construction of model and the revenue.This paper has done a further exploration on the traditional model of game and considered NOSHOW and overbooking.Through the instance data and the dynamic pricing model under Nash equilibrium,it verifies that airlines can through the ways of adjusting price and combining with market demand to control the load factors and to maximize the revenue.Meanwhile,it gives some Nash equilibrium pricing schemes in which the revenue is higher than instance data.Any model cannot avoid the contradiction between load factor and air fare.In this paper,the original game model has been optimized based on the analysis of its result by using the ideas of solving contradiction problems in extenics.Based on the extension strategy generating method and the extensible innovation method,the incompatible problem between the load factor and ticket price can be transformed into compatible problem.Improving the related parameter values will expand the market demand,so as to solve the contradiction and expand the revenue.Considering in a short-term period of sales,it is very difficult for the airlines to affect the entire market demand by their own.So as the idea of extenics,solving the incompatible problem is equal to solve that how to improve the revenue under the same ticket price between competitors.Thus it improves the situation that the model just considers the game between airlines and passengers and excludes how to price between the rival airlines.Through the instance data,this paper contrasts and analyzes the revenue index between two competitors whose external environment are no difference and verifies the feasibility and practicability of using extension transformation to make the revenue of one flight higher than the other.