Aggregate Planning: Uneasy Skies?
Airline passengers today stand in numerous lines, are crowded into small seats on mostly full airplanes, and often spend time on taxiways because of air-traffic problems or lack of open gates.
But what gripes travelers as much as these annoyances is finding out that the person sitting next to them paid a much lower fare for their seat.
This concept of “yield management” or “revenue management” results in ticket pricing that can range from free to thousands of dollars on the same plane.
What are the arguments for and against this pricing system?
Are customers manipulating the airline system to get better fares?
Has this system contributed to the overall financial turmoil in the airline industry?
Why or why not?