Refunds design based on the theory of dynamic pricing

Based on the theory of dynamic pricing in revenue management, this paper utilized the difference between the expected marginal revenues at selling time and refunding time to evaluate the refunds and formulated the corresponding mathematical model of it while analyzing the problem of refunding in airline industry. The amount of refunds is relative to both of the selling and refunding time and the state of selling. This method not only protects the interest of the airline company, but also ensures the interest of consumers, thus increases the utilization rate of airline resources to some degree.