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Low–cost pricing strategies in leasure markets


  • Paolo Malighetti


  • Renato Redondi


  • Andrea Salanti



The 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.

Suggested Citation

  • Paolo Malighetti & Renato Redondi & Andrea Salanti, 2010. "Low–cost pricing strategies in leasure markets," Working Papers 1007, Department of Economics and Technology Management, University of Bergamo.
  • Handle: RePEc:brh:wpaper:1007

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    Cited by:

    1. Melis, Giuseppe & Piga, Claudio A, 2016. "Are all online hotel prices created dynamic? An empirical assessment," MPRA Paper 75896, University Library of Munich, Germany.
    2. Moreno, Luis & Ramon, Ana & Pedreño, Andrés, 2015. "The Development of Low-cost Airlines and Tourism as a Competitiveness Complementor: Effects, Evolution and Strategies," Journal of Spatial and Organizational Dynamics, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, vol. 3(4), pages 262-274.
    3. 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.


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