You are sitting next to a person in business class on a flight from Los Angeles to Sydney,Australia.You mention to that person that you got your ticket two months ago for only $12,500.The person responds that she bought her ticket two days ago for $7,800.This sometimes happens because airlines often use an approach called:
A)Capacity management.
B)Yield management.
C)Load management.
D)Workforce leveling.

Question

Quizplus · Accepted Answer

Yield management is the approach used by airlines to maximize revenue by adjusting ticket prices based on demand and other factors like time of booking, route popularity, etc. It allows the airlines to sell the same seat at different prices to different customers, thereby optimizing their revenue. This is why different passengers on the same flight can pay different fares for the same class. Capacity management and load management are related to managing the number of seats on the plane and the weight distribution of passengers and cargo, respectively. Workforce leveling is a term related to labor management and staffing levels, and is not directly related to airline ticket pricing.

You Are Sitting Next to a Person in Business Class