Are Airlines’ Price-Setting Strategies Different?

نویسندگان

  • Volodymyr Bilotkach
  • Yuriy Gorodnichenko
  • Oleksandr Talavera
چکیده

Using a sample of fare quotes for non-stop travel from New York to London, this paper investigates the dynamics of offered fares as the departure date nears. We find that the general trend is toward fare increase at an accelerated rate as the departure date approaches. Clear differences in price-setting strategies among the carriers competing on a particular route are documented.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Taking Account

BEA economist looks at sumers essentially separate tion strategies at an airline, the airline price strategies themselves through the ticket authors developed a simple the-The role of pricing strategies, choices that they make. This oretical model of second-degree which can have a profound im­ type of self selection is referred price discrimination and applied pact on companies' profitability, ...

متن کامل

Joint optimization of pricing and capacity allocation for two competitive airlines under demand uncertainty

Nowadays, airline industries should overcome different barriers regarding the fierce competition and changing consumer behavior. Thus, they attempt to focus on joint decision making which enables them to set pricing and capacity allocation to maximize their profits. In this research, we develop a model to optimize pricing and capacity allocation in a duopoly of single-flight leg for two competi...

متن کامل

Has the “Golden Rule” Lost its Aura? Revisiting Multimarket Contact under Asymmetric Pricing in the U.S. Domestic Airline Industry (COMPLETED RESEARCH)

Extant research suggests that tacit collusion or the “golden rule” of refraining from aggressive pricing in jointly contested markets is an integral feature of the US airline industry. Our research revisits this past wisdom in the presence of airlines that pursue a distinctly different pricing strategy. Amongst airlines, Southwest and JetBlue largely practice an Everyday Low Price (EDLP) price-...

متن کامل

The impact of the internet on the pricing strategies of the European low cost airlines

This study seeks to analyse the price determination of low cost airlines in Europe and the effect that Internet has on this strategy. The outcomes obtained reveal that both users and companies benefit from the use of ICTs in the purchase and sale of airline tickets: the Internet allows consumers to increase their bargaining power comparing different airlines and choosing the most competitive fl...

متن کامل

Wait or buy? The strategic consumer: Pricing and profit implications

Using tools from operations research, airlines have, for many years, taken a strategic approach to pricing the seats available on a particular flight based on demand forecasts and information. The result of this approach is that the same seat on the same flight is often offered at different fares at different times. Setting of these prices using yield-management approaches is a major activity f...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2006