Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Airline codeshare alliances
T2 - Marketing boon and revenue management information systems challenge
AU - Gerlach, Max
AU - Cleophas, Catherine
AU - Kliewer, Natalia
PY - 2013/6
Y1 - 2013/6
N2 - The paper juxtaposes the challenges that airline codeshare alliances\ncreate for analytical information systems on the one hand and their\nmotivation from a marketing perspective on the other. The authors review\nthe state-of-the-art literature on potential marketing benefits and\nanalyze the impact on airline planning systems. In this regard, revenue\nmanagement systems are of particular interest. Based on a simulation\nstudy, the authors infer a severe impact of decentralized codeshare\ncontrols as currently widely implemented in the industry on revenue\nmanagement performance. In the scenarios examined, complementary\ncodesharing reduces alliance-wide revenues by up to 1 %. Losses\nincrease when a carrier experiences high local demand or a high degree\nof codeshare demand, and disseminate over the whole network. Virtual\ncodeshares also cause losses of 0.3 % to 1.5 % depending on the\ndiscount level offered by the marketing carrier and on the demand\nstructure. Finally, the authors formulate a set of managerial\nimplications based on these findings.
AB - The paper juxtaposes the challenges that airline codeshare alliances\ncreate for analytical information systems on the one hand and their\nmotivation from a marketing perspective on the other. The authors review\nthe state-of-the-art literature on potential marketing benefits and\nanalyze the impact on airline planning systems. In this regard, revenue\nmanagement systems are of particular interest. Based on a simulation\nstudy, the authors infer a severe impact of decentralized codeshare\ncontrols as currently widely implemented in the industry on revenue\nmanagement performance. In the scenarios examined, complementary\ncodesharing reduces alliance-wide revenues by up to 1 %. Losses\nincrease when a carrier experiences high local demand or a high degree\nof codeshare demand, and disseminate over the whole network. Virtual\ncodeshares also cause losses of 0.3 % to 1.5 % depending on the\ndiscount level offered by the marketing carrier and on the demand\nstructure. Finally, the authors formulate a set of managerial\nimplications based on these findings.
KW - Airline alliances
KW - Codesharing
KW - Information systems
KW - Marketing
KW - Revenue management
KW - Simulation
U2 - 10.1007/s12599-013-0262-8
DO - 10.1007/s12599-013-0262-8
M3 - Journal article
VL - 5
SP - 153
EP - 163
JO - Business and Information Systems Engineering
JF - Business and Information Systems Engineering
SN - 1867-0202
IS - 3
ER -