Research On Dynamic Pricing Strategy Of Airline Based On Service Quality

Recently,Chinese civil aviation market presents the situation of multi-oligopoly competition.With the rapid development of economy in our country,the civil aviation transportation industry is also thriving,and some emerging airlines have taken this opportunity to develop rapidly.Based on this,this thesis aims at assisting the traditional airlines to formulate reasonable pricing strategies,improve the market competitiveness and increase profits so as to further order the market.In order to make the research on pricing strategy more in line with the characteristic of air transport market,this thesis introduces the impact of service quality level into the traditional airline pricing model and establishes the market demand and profit functions based on service quality level.Analysis of the different levels of service quality,the airlines market share,equilibrium price and marginal profit changes.The results shows that with the improvement of service quality,the equilibrium price of airlines increases,and even if the ticket price is set higher,those service-oriented airlines still have strong competitive advantages.It means that the improvement of service quality of airlines can effectively enhance the market competitiveness.Subsequently,this thesis constructs a dynamic pricing model of multi-oligopoly airline based on service quality,introduce the time into this model,and build a variable cost function to make the game system more conform to the actual situation.The service quality factor weight is proposed to represent the weight of service quality considered in the dynamic pricing of airlines.The dynamic analysis of the model shows that considering the service quality level in dynamic pricing can effectively prolong the system stability,and in the system stability domain,the improvement of service quality can help increase the profits of the oligarchs.Finally,this thesis concludes that the airlines should position themselves as a development strategy of high level service quality in the early stage of air route development.Otherwise,as the game progresses,its competitiveness will fall behind that of service-oriented competitors and will eventually be replaced by the market elimination.