Use revenue management technique to help ME Airline to deciding which price set option is better for its flight number 331 from Beruit to Washingtion DC

 

One Price Set for flight seat pricing
ME  Flight number 331 ( from Beruit to DC) has	400	Seats in Economy Class
Has one price per seat (customer accept to pay $1000 per seat)	$1,000	per seat
the variable cost of seat being occupied is   (inculde meal,…etc)	$50	per seat (person)
Expecting number of seats to be sold ( with $1000 price)	300	seat per flight

 

 

Three Price Sets for flight seat pricing
1st price per seat ( customer will book the flight 3 month before departure day)	$600	per seat
Expecting number of seats to be sold ( with $600 price)	150	seats
2nd price per seat ( customer book the flight between 1 to 3 months before departure day	$800	per seat
Expecting number of seats to be sold ( with $800 price)	150	seats
3rd price per seat ( customer book the flight less than 1  month before departure day)	$1200	per seat
Expecting number of seats to be sold ( with $1200 price)	100	seats

 

Answer

Net Sales for one price set

 

Net Sales for three price sets

 

Explaining the methods is highly appreciated

Answer rating: 100% (QA)

Answers ME Flight Number331 400 Seats in economy class Variable Cost 50 per s... View the full answer