The validation results also provide insights into potentially new package designs. That is, it is interesting to note that for
each of the packages shown in Table 8, on average three or four destinations have exclusion probabilities greater than 20%.
Also, note that the destinations with the highest exclusion probabilities are not common across an origin. For example, it
may be possible to further increase revenues by including destinations 7 and 14 in the Western European packages, destination
18 in the culture package for origin 1, or destinations 22 and 23 in the culture package for origin 2. It may also be
possible to further increase revenues by charging a premium to exclude particular destinations (e.g., those within a
500 km radius of the origin airport). Due to the limited variability in package designs available in the estimation data, further
experimentation will be required to determine the optimal number of ‘‘undesirable’’ destinations to include in a package and
how to price them, i.e., if too many destinations with high exclusion probabilities are included in the package we would expect
conversion rates to decrease. Discussions with the airline are currently underway to pursue these and other pricing
ideas.