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Pricing of the long-distance bus service in Europe: The case of Flixbus

Author

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  • Gaggero, Alberto A.
  • Ogrzewalla, Lukas
  • Bubalo, Branko

Abstract

We study empirically the price dynamics in the long-distance bus market using posted fares by Flixbus, the market leader in Europe. We find that, at a given point in time, the fare increases with the number of sold seats. This result largely explains, why the lowest available fare increases as the departure date approaches. No evidence is found in favor of intertemporal price discrimination, probably because of low consumer-heterogeneity throughout the entire booking period that characterizes the long-distance bus market.

Suggested Citation

  • Gaggero, Alberto A. & Ogrzewalla, Lukas & Bubalo, Branko, 2019. "Pricing of the long-distance bus service in Europe: The case of Flixbus," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    • Handle: RePEc:eee:ecotra:v:19:y:2019:i:c:3
    DOI: 10.1016/j.ecotra.2019.100120
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    Cited by:

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    More about this item

    Keywords

    Capacity effect; Flixbus; Dynamic pricing; Revenue management; Temporal effect;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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