Optimizing ticket booking strategies using Binomial Option Pricing Models.

Abstract\nHIGHLIGHTSA flexible financial instrument that is frequently used to assess the fair value of options is the Binomial Option Pricing Model (BOPM). This study examines the innovative use of the BOPM in booking tickets, highlighting how it might improve decision-making in the quickly changing ticketing sector. The option pricing model is used in the study to solve the problem of cancelation fees in ticket purchases. The aim is to provide a solution that enhances the company’s reputation while also being in line with client pleasure. This study probably considers the dynamic nature of ticket prices, variations in demand, and industry uncertainty by using the BOPM. The model’s adaptability is used to customize a response that considers consumer preferences and expectations regarding cancelation fees. The utilization of the BOPM in the ticketing industry highlights the tool’s capacity to enhance decision-making procedures by offering a more sophisticated and customer-focused method for setting prices and developing policies.Introducing a call option in the booking system to reduce the cancelation charges.Using BOPM, to fix a premium for the customer who books a ticket early.Introducing a call option will be eco-friendly for the customers. [ABSTRACT FROM AUTHOR]