Explain the concepts of price discrimination and capacity

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Segmentation of the customer market is one of the key components of airline revenue management, in particular on the exercising of price discrimination and capacity discrimination. To maximized revenue while minimize service failure, clear and proper 'fencings' should be built for each identified customer segments.

Briefly explain the concepts of price discrimination and capacity discrimination in the airline industry, elucidate the concepts with airline examples. Also Discuss 5 different airline customer market segments (for revenue management), identify the associated pricing terms and conditions and/or capacity rules to ring-fence the customers of the segments in both revenue-driven and customer-oriented fashions.

Reference no: EM132714876

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