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

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  • Moreno-Izquierdo, L.
  • Ramón-Rodríguez, A.
  • Perles Ribes, J.

Abstract

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 flight, while companies can easily check the behaviour of users to adapt their pricing strategies using internal information.

Suggested Citation

  • Moreno-Izquierdo, L. & Ramón-Rodríguez, A. & Perles Ribes, J., 2015. "The impact of the internet on the pricing strategies of the European low cost airlines," European Journal of Operational Research, Elsevier, vol. 246(2), pages 651-660.
    • Handle: RePEc:eee:ejores:v:246:y:2015:i:2:p:651-660
    DOI: 10.1016/j.ejor.2015.05.013
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