Advanced Search
MyIDEAS: Login to save this article or follow this journal

A case study of pricing strategies in European airline markets: The London – Amsterdam route

Contents:

Author Info

  • Alderighi, Marco
  • Cento, Alessandro
  • Piga, Claudio A.

Abstract

Published fares London–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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0969699711000226
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Air Transport Management.

Volume (Year): 17 (2011)
Issue (Month): 6 ()
Pages: 369-373

as in new window
Handle: RePEc:eee:jaitra:v:17:y:2011:i:6:p:369-373

Contact details of provider:
Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

Related research

Keywords: Market segmentation; Stay restrictions; Inter-temporal discrimination; Pricing;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Severin Borenstein & Nancy L. Rose, 1991. "Competition and Price Dispersion in the U.S. Airline Industry," NBER Working Papers 3785, National Bureau of Economic Research, Inc.
  2. Gillen, David & Mantin, Benny, 2009. "Price volatility in the airline markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 693-709, September.
  3. Alberto Gaggero & Claudio A. Piga, 2008. "Airline Competition in the British Isles," Discussion Paper Series 2008_12, Department of Economics, Loughborough University, revised Oct 2008.
  4. Marco Alderighi, 2010. "The Role of Fences in Oligopolistic Airline Markets," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 44(2), pages 189-206, May.
  5. Giaume, Stephanie & Guillou, Sarah, 2004. "Price discrimination and concentration in European airline markets," Journal of Air Transport Management, Elsevier, vol. 10(5), pages 305-310.
  6. Steven L. Puller & Anirban Sengupta & Steven N. Wiggins, 2009. "Testing Theories of Scarcity Pricing in the Airline Industry," NBER Working Papers 15555, National Bureau of Economic Research, Inc.
  7. Kristopher S. Gerardi & Adam Hale Shapiro, 2009. "Does Competition Reduce Price Dispersion? New Evidence from the Airline Industry," Journal of Political Economy, University of Chicago Press, vol. 117(1), pages 1-37, 02.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:17:y:2011:i:6:p:369-373. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.