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Yield Management for Developing Countries  airline industries.
Linköping University, Department of Management and Engineering. Linköping University, The Institute of Technology.
Linköping University, Department of Computer and Information Science, Statistics. Linköping University, The Institute of Technology.
2010 (English)Conference paper (Other academic)
Abstract [en]

Today’s world economy is lead by trading sector, which increased the demand of different types of cargo services. Among all types of cargo, demand in “Cargo by Air” increased rapidly. Which increased the demand of low cost airlines or on another side it push the airlines to reduce their fairs. There is no doubt that Operation Research shows a potential to entrepreneurs and investment banks to invest on this venture. In this domain, revenue or yield management principles have very strong relation to form it, which can be traced back over 30 years in the airline industry. In 1970 after release of pricing law by United States government, Pacific Southwest & Southwest Airlines was the one, who first time introduced low cost airlines. Later in the mid of 1980’s, most of the US airlines introduced revenue management in response to those low-cost airlines. Many airlines used this principle and their profit margins increased exponentially. In a similar way the history of European low cost carriers began with the liberation of the flight market in the European Union. By the passage of time all most, all the developed countries adopt yield management principles to increase the profit turn margins but there is a huge gape for adopting this concept in the developing countries. This is because of lack of awareness in the public sector and also there are very few companies, who offer such services. The applicability of this technology may be varied across different developing countries and this is dependent on the level of their economic condition and market growth.

   In this research will consider the history of yield management and factors that drive the multi-pricing in the perishable product pricing. We will also review the main methodologies that are used in each of these areas also investigate new scenario that can brought opportunities for developed countries. Furthermore, will try to identify reasons why this concept failed or not that much popular in the developing countries

Place, publisher, year, edition, pages
, Book of abstracts Lisbon July 10, 2010
Keyword [en]
Appropriate Technology for OR in Developing Countries, Revenue Management and Pricing, Airline Applications
National Category
Engineering and Technology Information Science
URN: urn:nbn:se:liu:diva-70416OAI: diva2:439179
EWG ORD-Operational Research for Development Working Group of EURO, 10 juli, Lissabon, Portugal
Available from: 2011-09-06 Created: 2011-09-06 Last updated: 2011-09-14

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Sadoghi, AmirhosseinJavad, Raheel
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