Finding an efficient pricing strategy is very importatn challange for many bussineses. Today in big data age using manual pricing decision won't satisfy client nor company. However pricing strategy doesn’t necessarily mean a race to discounts, promotions or offering the lowest fare.
For example assume an airline want to serve a new destination or grow an existing market. One naive way is constantly monitor existing fares (of competitors ) and decide based on how they are performing, but customer segmentation and willingness to pay is ignored in this way. Which could have great effect on profit. So in price optimization process one need to take care of various item.
Many pricing optimization applications are available todays different busineses:
There are also many succseful softwares specificly about Fare optimization:
In this repository we mainly try to review the most efficient pricing strategy for high speed rail(HSR).
pricing systems differ from HSR company to company. It can be classified into three types of selling method. (1) A ticket price is predetermined between origin and destination stations and it stays unchanged throughout the selling period. HSR companies in Japan, China and Taiwan are using this type of selling method. (2) Ticket prices are predetermined, but different prices are set depending on the day of week and time zone. This type of method is used by HSR companies in Korea, Germany (3) A price is adjusted based on the sales volume in real time. It is called dynamic pricing and HSR companies in France and the United Kingdom are adapting this method. Also each of them consider different element in their pricing model:
