Price volatility and market performance measures: The case of revenue managed goods

Reference : Price volatility and market performance measures: The case of revenue managed goods


	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : Production, distribution & supply chain management
	To cite this reference:	http://hdl.handle.net/10993/39653

Title :	Price volatility and market performance measures: The case of revenue managed goods
Language :	English
Author, co-author :	Mantin, Benny [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > >]
	Rubin, Eran [> >]
Publication date :	2018
Journal title :	Transportation Research. Part E, Logistics and Transportation Review
Publisher :	Elsevier
Volume :	120
Issue/season :	December
Pages :	35-50
Peer reviewed :	Yes
ISSN :	1366-5545
e-ISSN :	1878-5794
Keywords :	[en] revenue management ; Price volatility ; Airline industry
Abstract :	[en] The operational outcome of Revenue Management (RM) is manifested in different magnitudes of market level price volatilities. In this paper we take an analytics approach to the possible use of pricing data of revenue-managed goods to support market analysis. Quantifying the relationship between market-level price volatility in the airline industry and various market-level performance metrics, we find that higher levels of price volatility are associated with higher levels of transacted fares, lower load factors, higher revenues, and increased transacted fare dispersion. This suggests the potential in utilizing market price volatility as an input for market analytics.
Permalink :	http://hdl.handle.net/10993/39653

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