how apply price discrimination in Airline pricing: Off-season and peak season ?

Expert Solution

ANSWER:

MEANING:

Price Discrimination is a price which occurs when identical product or services are sell at different prices by same provider.For example price discrimination in multiplex a price of movie ticket is 150 Rs in a morning 9:00 am for front row but same will be charged 220 Rs in 4:30 pm.

Peak season is a time period in which their is highest demand of product or services.

Off season is a time period in which their is low demand of product or services.

Basically price discrimination can take place when it come to quantity bought in which if there is a higher quantity purchase it will charge less as compare to lower quantity and also by age differences,gender differences and time of buying ticket.

From the following we can know that how airline can do price discrimination during peak season and off season:Due to time of buying ticket- It really matter that when will n customer is going to purchase ticket for example if we can book ticket in advance prior to Diwali vacation so its off season so it cost less as compare to when we purchase same at the time of Diwali vacation so it will cost high because its a peak season.

Rahul Sunny answered 2 years ago

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