____________ balances keeping prices low enough to encourage everyone to purchase a ticket with discouraging those who can pay more for choosing a less-expensive option.
A) Administration costs
B) Flight operation costs
C) Revenue management
D) Average unit revenue
E) Load factor

Question

Quizplus · Accepted Answer

Revenue management is the practice of optimizing and adjusting ticket prices based on demand and capacity. This allows airlines to balance the need to keep prices low enough to encourage purchases from budget-conscious travelers while also pricing high enough to capture revenue from those who are willing to pay more for a certain level of service or flexibility. The other options listed are important factors in airline pricing, but revenue management specifically addresses the balance between maximizing profits and appealing to a wide range of customers.

____________ Balances Keeping Prices Low Enough to Encourage Everyone to Purchase