A Real Time Application for Dynamic Pricing Model in the Passenger Air Transport

Dr. G Vijay Kumar

Our planet is more connected than at any time in its history. Especially in air travel industry we can see that 2011, some 2,8 billion people traveled on 35,000 routes connecting 3,800 commercial airports. Together they flew 5.1 trillion km. Tariff structure is a tool of a carrier to influence his profit and to react on competitors respectively. It is a strategically planned sophisticated system of offered seat capacity for specific prices depending on many variables. The tariff structure has considerably changed in last years, above all as a consequence of the entry of low cost carriers.