Estimating sales and profitability impacts of airline branded‐fares product design and pricing decisions using customer choice models

This article provides a simple‐to‐use decision support framework for evaluating the sales and profitability impacts of airline branded‐fare product designs and pricing using customer choice models. Our framework is derived from standard marketing analysis techniques developed for the design of bundled products and adapted to the airline branded‐fares problem. We also provide willingness‐to‐pay estimates from internal Sabre surveys along with a heuristic price optimization using genetic algorithms applied to an example airline branded‐fares problem. Although focused on the technical aspects of the solution, this article is written in business terms and is oriented towards use by practitioners.