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The effect of destination type and travel period on the behavior of the price of airline tickets

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  • Andrés Martínez, María-Encarnación
  • Alfaro Navarro, José-Luis
  • Trinquecoste, Jean-François

Abstract

The effects of customer characteristics, differentiating between tourist and business travelers, and the date of travel are considered important elements in airline price behavior. In the literature, the difference between tourist and business travel is based on consumer characteristics; however, the main contribution of this paper is to examine this difference with respect to the characteristics of the destination. Thus, in this paper, we consider the top- and bottom-ranked tourist destination cities (to differentiate between most-and least-visited tourist destinations) and two travel periods (a holiday period and an off-peak period) in order to analyze the effect of the destination and travel period on airline price behavior. The results show that the price level is highest during the holiday period to the lowest-ranked tourist destinations, and that the price dispersion is highest during the holiday period but to the top-ranked tourist destinations.

Suggested Citation

  • Andrés Martínez, María-Encarnación & Alfaro Navarro, José-Luis & Trinquecoste, Jean-François, 2017. "The effect of destination type and travel period on the behavior of the price of airline tickets," Research in Transportation Economics, Elsevier, vol. 62(C), pages 37-43.
    • Handle: RePEc:eee:retrec:v:62:y:2017:i:c:p:37-43
    DOI: 10.1016/j.retrec.2017.03.003
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    More about this item

    Keywords

    Pricing; Price dispersion; Price level; Price evolution; Price behavior; Customer characteristics; Date of travel; Destination; Tourist; Holiday; Airline fares; Airline tickets; Peak pricing; Airline market; Air travel;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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