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This content is taken from the École Nationale de l'Aviation Civile's online course, An Introduction to Pricing Strategy and Revenue Management. Join the course to learn more.
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Warm-up stretching

Warm-up session

In this new pricing simulation game, you are no longer alone in your market, and have to compete with another airline: Air_ENAC.

You have been put in charge of an airline and have to choose a pricing strategy for your planes departing in three months’ time. You start with an initial cash of €50,000. Your competitor has exactly the same initial cash, the same timing, the same technology and the same goal as you: to make a profit that is to finish the game with more than €50,000.

For the purposes of this game, all tickets are return trips. There are no one-way flights available to your customers. You and your competitor both have 800 tickets for sale, corresponding to two round trips each of planes seating 400. The total amount of tickets for sale on the market is therefore 1600 tickets.

You and your competitor will have to make decisions while each having a fixed number of seats to sell. On the departure date, unsold seats will be lost. How much profit will you and your competitor make?

Warm-up game

This warm-up game is a training session set over one year so that you can familiarise yourself with the new gameplay (with a competitor), having a limited number of seats to sell.

As in the previous games, for each round, you and your competitor must choose the ticket prices for flights leaving on a given date (in exactly three months’ time). You will set the prices on three occasions:

  • three months before departure
  • six weeks before departure
  • two weeks before departure.

After each decision, you will see the decision made by your competitor.

Here again, there are two pricing rounds (corresponding to peak and off-peak periods), each requiring three pricing decisions to be made. Your competitor, Air_ENAC, will make decisions following the same schedule.

A year Both airlines make decisions following the same schedule (Click to expand).

A good strategy to get started is to make some decisions without overthinking them, and to observe the result. Observing the decisions of your competitor is also a good way to learn.

Hints and instructions are provided at each stage of the game. Note that you can change your team name by using the `Edit Profile’ menu option.

Play the game

In a new tab or browser window, log into the pricing simulation platform and create a warm-up game, by clicking on the link hereunder:

LAUNCH THE WARM UP GAME (right click to open in a new tab)

Enter the name of your airline, and play it through to the end (one year with peak and off-peak periods).

The game is on!

In the next step, you will play the full game over three years. In that game, you and your competitor will have also to make strategic decisions regarding your respective total capacity.

This game is provided by our partner Economics Games: Online Classroom Games for Teaching Economics (http://economics-games.com/) Economics Games logo

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This article is from the free online course:

Manage Your Prices: an Introduction to Pricing Strategy and Revenue Management

École Nationale de l'Aviation Civile

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