August 3, 2012 Leave a comment
The practice of Yield management has been widely adopted by service organizations in the past three decades. Yield management originally started in the airline industry and this capacity management strategy is also most often applied by airlines. The practice of yield management, especially in the airline industry, has been discussed in many different studies. There is, however, limited empirical research on the effects on business-to-business relationships and knowledge on how the feelings of price fairness affect loyalty. This research paper will discuss the differences in perception and reactions of both business and leisure travelers. The main goal of this research is to give answers to the question: What are the impacts of yield management in the airline industry on customers feelings of price fairness and how does it affect loyalty?