Price discrimination in the airline industry - what are the advantages of dynamic pricing system for airways?

Abstract The aim of this diploma thesis is to demonstrate why dynamic price discrimination is the most widely implemented pricing strategy by airway companies. At the present time, dynamic price discrimination is commonly used by airways to increase the revenue. Ticket prices for a particular flight change based on the time. This diploma thesis focuses on which pricing policies are applied in the air transportation industry and why dynamic pricing is more advantageous than other pricing policies used by airline companies.