Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice

Kellermann, Norman and Cleophas, Catherine (2015) Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice. Journal of Revenue and Pricing Management, 14 (3). pp. 155-165. ISSN 1476-6930

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Abstract

While railway transport appears well suited to revenue management (RM), establishing it in practice appears difficult. To explain this, we investigate the long-term consequences of repeated transactions and reference pricing. We consider the implications of reference pricing based on an agent-based simulation of passenger railway RM. The model is empirically calibrated using data provided by a European long-distance railway operator. On the long term, reducing fares to induce additional demand can foil revenue gains when customers learn and communicate reference prices. Accordingly, knowing customers' tendency to build reference prices becomes crucial.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Revenue and Pricing Management
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1408
Subjects:
ID Code:
87915
Deposited By:
Deposited On:
06 Oct 2017 19:34
Refereed?:
Yes
Published?:
Published
Last Modified:
24 Jun 2020 04:44