A case study of pricing strategies in European airline markets: The London â€“ Amsterdam route
Published fares Londonâ€“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.
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.
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.
Volume (Year): 17 (2011)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/|
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.:
- Escobari, Diego & Jindapon, Paan, 2014.
"Price discrimination through refund contracts in airlines,"
International Journal of Industrial Organization,
Elsevier, vol. 34(C), pages 1-8.
- Escobari, Diego & Jindapon, Paan, 2014. "Price Discrimination through Refund Contracts in Airlines," MPRA Paper 53629, University Library of Munich, Germany.
- 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.
- Gaggero, Alberto A. & Piga, Claudio A., 2010. "Airline competition in the British Isles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 270-279, March.
- 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.
- Claudio A. Piga & Enrico Bachis, 2006. "Pricing strategies by European traditional and low cost airlines. Or, when is it the best time to book on line?," Discussion Paper Series 2006_14, Department of Economics, Loughborough University, revised Jul 2006.
- 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.
- Borenstein, Severin & Rose, Nancy L, 1994. "Competition and Price Dispersion in the U.S. Airline Industry," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 653-683, August.
- 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.
- 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.
- 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.
- Marco Alderighi, 2010. "The Role of Fences in Oligopolistic Airline Markets," Journal of Transport Economics and Policy, University of Bath, vol. 44(2), pages 189-206, May. Full references (including those not matched with items on IDEAS)
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: (Dana Niculescu)
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.