Easyjet

easyJet? Airlines: Sm wholly, Lean, and with Prices that Increase over Time Oded Koenigsberg Columbia ph oneness line organization indoctrinate Columbia University, modern York, NY 10027 ok2018@columbia.edu Eitan Muller Leon Recanati calibrate School of Business Administration Tel Aviv University, Tel Aviv, Israel 69978 muller@post.tau.ac.il Naufel J. Vilcassim capital of the united Kingdom Business School capital of the United Kingdom, England NW1 4SA nvilcassim@london.edu Centre for Marketing on the job(p) Paper No. 04-904 February 2004 Revised kinsfolk 2004 We are pleasurable to Stellios Haji-Ioannou, and to John Stephenson, and Ben Meyer at easyJet for making the selective information operable for analysis, and to Asim Ansari, Don Lehmann, Rajeev Tyagi, the editor and two reviewers for thoughtful comments and suggestions. The authors would in increment like to thank Hernan Bruno for his excellent research assistance. ? easyJet is a reg istered trademark. London Business School, Regents Park, London NW1 4SA, U.K. Tel: +44 (0)20 7262-5050 Fax: +44 (0)20 7724-1145 hypertext transit protocol://www.london.

edu/Marketing Copyright © London Business School 2004 easyJet?Airlines: Small, Lean, and with Prices that Increase over Time Abstract easyJet® Airlines, which has emerged as one of Europes most self-made low-cost, shorthaul airlines, has a mere(a) price structure. For a given flight, all prices are quoted oneway, a single price prevails at whatever point, and in general, prices are low early on and outgrowth as the red date approac hes. In this paper, we examine the optimalit! y of this determine scheme and conk out the factors that determine how the price should change over time by building a model of dynamic pricing that incorporates supplicate uncertainty. We find that while a pricing strategy such as easyJets is indeed profit-maximizing, the magnitude of the increase in price from the first date of seat gross gross revenue to the departure time is dependent upon the capacity of available seating room between the given city pair, and varies inversely with it. We examine...If you want to pass off a full essay, order it on our website: BestEssayCheap.com

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