The Pricing Strategy Of Bwi Airport Essay

1535 Words Mar 21st, 2016 null Page
This paper examines how the pricing strategy of BWI airport and how the market share values between air carriers impact BWI’s pricing of airline tickets. In analyzing the airfare, distance, average passenger, and market share over four years, the airport can determine which airline has the largest and smallest percent stake in the market. By finding out the market share’s impact, the airport can then adjust its flights and pricings to entice and attract more travelers to generate more profit.
After computing a statistical and tabular summary of data on the airfares from BWI (Figure 1), one can draw many conclusions about the distribution of airfares. The lowest price a ticket was purchased at, also known as the minimum price, was $55. The most expensive price a ticket was purchased at, also known as the maximum price, was $320. Consequently, the range, which measures variability takes the difference between the maximum and minimum price, is $265. However, the range can be easily effected by outliers or extreme values. From Figure 1, the distribution of airfares has an average mean of about $159. The mean is a measure of central tendency can be used to explain the average price a ticket was sold for. If one were to estimate the airfares for a randomly chosen route, based on the data the airfare would be the mean of $159. By constructing a pivot table that shows the relationship between fare and the number of tickets purchased within a certain price range (Figure 2a), one can…

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