Industry Definition

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  • Topic: Price discrimination, Airline, Yield management
  • Pages : 2 (327 words )
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  • Published : December 23, 2012
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Industry Definition
An airline provides air transport services for passengers or freight, generally with a recognized operating certificate or license. Flights with different airlines almost
homogeneous
Pricing
Flights with different airlines almost
homogeneous
Because Airline is better off selling an empty seat at near
MC, but below AC, than flying with empty seats

Pegasus %24
Atlasjet 7%
Sun
THY %54

Frequent business traveler, seeking punctuality, high-service, reliability and business oriented schedules, Governmental and international organization travelers,
Leisure and cultural travelers, seeking higher level of service with an economical cost, Seasonal travelers, seeking convenience at low costs,
Education travelers, seeking the lowest possible costs among the given alterna

* Price discrimination is a pricing strategy that is common to the airline industry. * Airlines offer different prices to different groups of consumers which is second degree price discrimination. * Airlines are better off selling an empty seat at near MC, but below AC, than flying with empty seats.

* Generally, Airline industries has an oligopoly structure. * In Turkey was first constructed as a monopolistic market. * Turkish airline industry could be traced back to
1933, when Turkish Airlines (THY) was founded
* Between 1933 and 1982, monopol market structure was exist. * In 1982, the market was deregulated.
* EU standardization and privatization process. 
* With these steps market structure transform from monopol to ologipol.

Dynamic pricing
A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet based companies. By responding to market fluctuations or large amounts of data gathered from customers - ranging from where they live to what they buy to how much they have spent on past purchases - dynamic pricing allows online companies to adjust the prices of...
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