Low–cost pricing strategies in leasure markets
AbstractThe practice of dynamic pricing, so typical of low cost carriers, is generally regarded as a form of price discrimination between "leisure" and "business" travellers on the single flight or on the single route. Across different routes, however, things may go differently. If price increases in the last 15 days prior to departure are meant to discriminate business demand, leisure demand should account for earlier price variations. Working on a database including the daily fare over the 3 months prior to each flights operated by easyJet during 2009, we assign to each route its own "leisure index", defined as the difference between the rate of price change during the ninety days prior to departure and the one during the last 15 days. Empirical results can be summarized by saying that "business" routes have lower average prices per kilometre, while "leisure" routes show a less dynamic price behaviour, with higher minimum prices and lower maximum prices per kilometre.
Download InfoIf 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.
Bibliographic InfoPaper provided by Department of Economics and Technology Management, University of Bergamo in its series Working Papers with number 1007.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: viale Marconi 5, 24044 Dalmine
Web page: http://www.unibg.it/struttura/en_struttura.asp?cerca=en_dige_intro
More information through EDIRC
price differentiation; price discrimination; market segmentation; dynamic pricing; low cost carriers;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Beria, Paolo & Grimaldi, Raffaele & Debernardi, Andrea & Ferrara, Emanuele & Laurino, Antonio, 2014. "Spatial and scenario analyses of long distance coach transport in Italy," MPRA Paper 54739, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (University of Bergamo Library).
If references are entirely missing, you can add them using this form.