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Impact of relative price on airline revenues

Author

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  • Hong, Subin
  • O'Connell, John Frankie
  • Kim, Bora
  • Cho, Janghee

Abstract

•Relative pricing impacts airline revenue, with market share as a key moderator.•Higher market share strengthens price signals and supports premium pricing.•Revenue gains from relative pricing depend on market competition intensity.•Findings provide practical insights for optimising airline pricing strategies.

Suggested Citation

  • Hong, Subin & O'Connell, John Frankie & Kim, Bora & Cho, Janghee, 2025. "Impact of relative price on airline revenues," Annals of Tourism Research, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:anture:v:113:y:2025:i:c:s0160738325000842
    DOI: 10.1016/j.annals.2025.103978
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    References listed on IDEAS

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    1. Jeng, Shih-Ping, 2016. "The influences of airline brand credibility on consumer purchase intentions," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 1-8.
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    4. Ramon Caminal & Xavier Vives, 1996. "Why Market Shares Matter: An Information-Based Theory," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 221-239, Summer.
    5. Baojun Jiang & Jian Ni & Kannan Srinivasan, 2014. "Signaling Through Pricing by Service Providers with Social Preferences," Marketing Science, INFORMS, vol. 33(5), pages 641-654, September.
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