A case study of pricing strategies in European airline markets: The London â€“ Amsterdam route
AbstractPublished fares Londonâ€“Amsterdam are used to examine the pricing practices of low-cost and legacy carriers when operating in a large and crowded market. We investigate two strategies of market segmentation involving the time before departure the ticket has been bought, inter-temporal segmentation, and the duration of the stay, implicit segmentation. We find inter-temporal price discrimination emerges as an important strategy for all pricing but the two legacy carriers involved, British Airways and KLM, differ in their use of stay restrictions; British Airways does not assign a specific role to the duration of stay, while KLM make use of such rules extensively in price setting.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Air Transport Management.
Volume (Year): 17 (2011)
Issue (Month): 6 ()
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Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/
Market segmentation; Stay restrictions; Inter-temporal discrimination; Pricing;
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