Optimal Pricing Strategy and Intermediary Selection of Airline Ticket Sales 

Xuexia Xiong, Hao Li* 

School of Economics and Management Chongqing Jiaotong University, Chongqing, 400074, China

Abstract: This paper researches the pricing strategy and intermediary selection of the decision makers in a dual channel supply chain of airline ticket sales with passenger preference. We establish the game model un-der fixed intermediary and common intermediary to analyze the equilibrium decision between airlines and intermediaries. By comparing the revenue of the two sales models, we get the intermediary selection threshold under different ticket supplies, and discuss the feasibility of the sales model from the perspective of airlines and intermediaries. The research shows that the two sales models can achieve market equilibrium, but passenger preference without affect on the intermediary selection; when the ticket supply is below the threshold, airlines choose the common intermediary sales model, otherwise, ｓｅｌｅｃｔ fixed intermediary sales model.

Keywords: Fixed intermediary; Common intermediary; Pricing  strategy; Passenger preference