Application of Call Option in an Airline Ticket Booking Process

Abstract

The demand for the ticket of a flight is uncertain. Due to uncertain travel plans, passengers either have to cancel their confirmed bookings or have to postpone their ticket booking. The passengers who book an airline ticket are unreliable about the cancellation charge. In this regard, all airlines charge progressively higher amounts which are unsatisfactory for customer. They don't know about the trek, regardless of whether they will travel or not on the grounds that what's to come is uncertain. The reasons can be anything such as delay of understudy’s examination, sickness of the client, change of timetable, and so forth. . To make the airline ticket booking polices economical and satisfactory for both buyer and seller we can utilize call option in airline industry for the betterment of both customer and industry.