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Analysis of the lowest airfares considering the different business models of airlines, the case of Budapest

Author

Listed:
  • Dudás, Gábor
  • Boros, Lajos
  • Pál, Viktor
  • Pernyész, Péter

Abstract

This study reports the findings of a research that compared the lowest airfares of full-service network carriers and low-cost airlines and mapped the cost distance between Budapest and European cities. The study investigated return air tickets for three time periods in 48 European cities for travellers who originated from Budapest. The study was based on quantitative research methods using automated internet data collection and a unique GIS-based mapping method to compare airfares and visualise the cost distance between European cities and Budapest. Our findings showed that low-cost airlines outperform full-service network carriers by offering lower-fare air tickets, while the cost distance maps showed that cities accessible by low-cost airlines are ‘closer’ to Budapest in general.

Suggested Citation

  • Dudás, Gábor & Boros, Lajos & Pál, Viktor & Pernyész, Péter, 2016. "Analysis of the lowest airfares considering the different business models of airlines, the case of Budapest," MPRA Paper 74502, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74502
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    File URL: https://mpra.ub.uni-muenchen.de/74502/1/MPRA_paper_74502.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    airfare; low-cost airline; cost distance; air transport; GIS;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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