In 2016, the global airline industry reached almost 70 billion dollars in ancillaries (up from 60 billion dollars in 2015), while the ancillary revenues on a global scale reached a 10% share of overall airline revenue, according to Ideaworks, a consulting firm that measures airline ancillary...

Abstract We study the welfare impact of revenue management, a practice which is widely spread in the transport industry, but whose impact on consumer surplus remains unclear. We develop a theoretical model of revenue management allowing for heterogeneity in product characteristics, capacity...