The Effects of Applying Revenue Management on CustomerSatisfaction in Airline Industry: An Experimental Study inIndonesia

This research mainly discusses about the effects of applying revenue management, specifically inthe contexts of inventory control (variation in ticket prices for the same flight and class) and deniedboarding (permissibility of reservations exceeding carrying capacity as a hedging practice over thepossibility of tickets cancellation) on the customers’ satisfaction toward airlines in Indonesia. Experimentalmethod was applied on the research, involving students from University of Indonesia asparticipants. The results showed that inventory control policy partly affected customer satisfaction,while the denied boarding policy fully affected their satisfaction. These research findings can contributeto further studies on consumers’ behaviour in dynamic airlines industry, mainly in emergingmarkets such as Indonesia.