Paper Example - Airline Pricing Strategy

Published: 2023-08-23
Paper Example - Airline Pricing Strategy
Essay type:  Quantitative research papers
Categories:  Airline industry Money Strategic marketing Financial management
Pages: 2
Wordcount: 429 words
4 min read

Contrary to tangible commodities, the airline industry always focuses on selling products that do not require advertisements through demonstration of pictures. Since the airline industry deals with passenger and cargo transportation, which cannot be stored until the demand arises, any seat that has not been sold at the departure cannot be sold later when the demand increases more than the real capacity of the plane (Fedorco & Hospodka, 2013). Therefore, marketing is a fundamental tool in the airline industry. Based on the airline's price policy, the pricing strategy is used to address particular categories of customers.

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Currently, airlines price tickets based on how the market and customers will bear, and they often profile their customers who assist them in adjusting the prices of the tickets. Thus, they categorize their customers into two groups, including business or leisure, as each group is priced differently. For leisure passengers, the seats are booked a few months in advance; hence the airline tends to set prices for such seats higher, and the prices are adjusted based on the market response. For business routers, the airline begins with lower prices to complete the minimum capacity and increases prices as passengers tend to capture the last-minute rush (Fedorco & Hospodka, 2013).

Factors Leading to Online Business Failure

Several factors cause failures for most online businesses. For instance, a lack of user-friendly websites causes a significant failure for online businesses. Understandably, customers should make a good impression about the business information which is placed on the business webpage; thus, every text, color, image, or symbol found on the website should impress prospective customers (Bajwa et al., 2017). Lack of a memorable business logo can also lead to business failure because it is a fundamental tool that engages potential customers. Also, lack of a good social media presence causes failure since some online businesses tend to ignore the power of social media channels in fostering business.

Regarding what such firms can do differently to enhance their success, online businesses require user-friendly websites. All the information about the business impresses potential customers, including good images, symbols, or colors. Such a business also needs a simple logo that is memorable and can engage any customer (Bajwa et al., 2017). Finally, they should recognize the critical role of social media channels in business promotion.


Bajwa, S. S., Wang, X., Duc, A. N., & Abrahamsson, P. (2017). “Failures” to be celebrated: an analysis of major pivots of software startups. Empirical Software Engineering, 22(5), 2373-2408., L., & Hospodka, J. (2013). Airline pricing strategies in European airline market. Faculty of Transportation Sciences, 2(8), 33-41.

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