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Technique for producing constructed fares

Technique for producing constructed fares description/claims

This invention relates to a process for producing constructed fares.

Airlines publish fares for various markets. A market is a city pair such as NYC-PAR (New York-Paris). For markets involving major cities like the NYC-PAR market, airlines provide published fares, that is, stated prices for travel between the two cities. For markets involving minor cities, however, the airlines rely on a process called fare construction to produce fares that are sometimes called “constructed fares.” Fare construction is particularly used for minor markets involving international travel.

In the NYC-PAR market there may be hundreds of published fares with corresponding rules to combine the fares. However, there are too many markets for airlines to actually publish fares for every single market. For example, for the OME-NCE (Nome, Ak./Nice, France) market, there may not be a published fare because the Nome-Nice market may be too small for airlines to actually publish fares. Nevertheless, the airlines need to be able to offer some price for an OME-NCE ticket. The fare construction process solves this problem by providing a mechanism to “extend” a published fare with add-ons also called arbitraries, in order to derive prices to minor cities. An arbitrary, like a published fare, lists two cities. However, unlike cities in a published fare (which establish a bidirectional market), the cities in an arbitrary are ordered: the first is the gateway (or major) city, and the second is the interior (or minor) city. Constructed fares can be either two-component constructed fares, i.e., one arbitrary combined with one published fare or three-component constructed fares, i.e., two arbitraries combined with one published fare. Examples of two-component constructed fares include OME-NYC arbitrary+NYC-PAR fare=OME-PAR fare NYC-PAR fare+PAR-NCE arbitrary=NYC-NCE fare

As the examples show, the arbitrary can be added to either end of the published fare. A three-component constructed fare is shown below, where arbitraries are added to both sides of the published fare OME-NYC arbitrary+NYC-PAR fare+PAR-NCE arbitrary=OME-NCE fare

In general, two-component constructed fares provide prices between a minor city and a major city, while three-component constructed fares provide prices between two minor cities.

One approach used to fare construction is to use a list of constructed fares called “The Unpublished Fares Product” that is available from Airline Tariff Publishing Company (ATPCO). ATPCO is an intermediary that maintains fares published by airlines and resellers. With “The Unpublished Fares Product” a cross-product of all arbitraries and all base fares is determined and provided into a list. That list can contain millions of constructed fares.

• Provisional Patent
• Utility Patent

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