A rail company choosing to modify its pricing for tickets as the departure day/time gets closer is utilizing which type of capacity management technique?
A) Overbooking
B) Capacity utilization
C) Differential pricing
D) Discounting

Question

Quizplus · Accepted Answer

"Differential pricing" involves modifying prices based on factors such as demand, time of day, and proximity to the departure date. This is different from overbooking, which involves selling more tickets than there are actual seats available. Capacity utilization refers to maximizing the use of available resources, and discounting involves lowering prices in order to increase sales. Therefore, the most appropriate choice here is C, differential pricing.

A Rail Company Choosing to Modify Its Pricing for Tickets