Research On Regional Flight Pricing Strategy Based On Passenger Choice Behavior

At present,regional airlines still face the constraints of increasingly fierce industry competition and development of bottlenecks.In order to properly cope with the dilemmas that the sources of passenger are divided by the high-speed rail and the instability of government subsidies.Airlines urgently need to solve the problem of how to improve the profitability of regional flights,and make effective pricing strategies.Because passenger preferences are different and will be further reflected in purchasing behavior,it is often ineffective to make pricing strategies what ignore the demands of passenger.It has important reference value what researches on pricing strategies for regional flights based on passenger selection behavior.This article first divides the regional aviation market into four types of passenger groups according to the situation of regional aviation passenger sources,and analyzes the factors affecting passenger selection.Then,the theoretical model of the regional flight pricing strategy is constructed,and the combination of utility theory,Logit model and EMSR model is used to construct the flight selection probability model and the cabin pricing model.Finally,the Xi'an-Korla route is taken as an example to conduct a case study.The research shows that compared with the existing revenue results,the revenue of regional flights under the model proposed in this paper has improved to a certain extent.Based on the analysis of the case,this study proposes the following strategies from the two dimensions of regional flights pricing and regional flight class pricing and from the four types of market segments for airlines: First,for regional flights,implement high-price strategies for business travelers,operate nonstop flights with good times,and implement low-cost strategies for tourist travelers to reduce flight operating costs.Second,regard to the class of cabin,according to the urgency of the travel of business passengers,the high-priced classes of different refund and change fees are allocated,and provide diverse and high-quality additional services,then increase the class of low total travel cost for emergency tourists.To offer planned travelers a bare fare class and a discounted product portfolio,they can optional additional services,and penetration pricing,at the same time airlines should accelerating service product innovation and build the comprehensive information platform.The purpose of this article is to improve the revenue of regional flights,while taking into account the travel utility of most passengers on regional flights,and provide a useful reference for airlines to implement revenue management of regional flights.