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Airline Pricing Strategies : A comparison of German Lufthansa and Scandinavian Airline System / Airline Pricing Strategies : A comparison of German Lufthansa and Scandinavian Airline System

<p><!--[if gte mso 10]> <mce:style><! /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Normale Tabelle"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} > <! [endif] ></p><p>This paper focuses on the pricing strategies of international airlines, being the key factor to match the supply with demand and accomplish market equilibrium. The aim of study is to find a pattern of how pricing takes place, if and how airlines implement market segmentation and take demand-related elasticities into account. We specialize on the Scandinavian Airline System (SAS) and German Lufthansa. Their flight prices were collected as primary data from the corresponding websites. We observed the following air travel services: Long-haul international, short-haul international and short-haul domestic; additionally, we differentiated price levels by the time of booking. Based on our findings we can say that the market segmentation model provides a good base for airlines. However, it has to be accompanied by additional strategies to react to arising problems (peak problem, currency fluctuation, etc). The patterns we found implemented by SAS and Lufthansa represent a firm market-responsive approach to the problems in the airline industry.</p><p>< >< ><--></p>

Identiferoai:union.ndltd.org:UPSALLA/oai:DiVA.org:miun-8521
Date January 2009
CreatorsLohmeier, Victoria, Hess, Simon
PublisherMid Sweden University, Department of Social Sciences, Mid Sweden University, Department of Social Sciences
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, text

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