Abstract
This study analyzes the factors that explain the variations of daily airfares across fare histories, or dynamic price dispersion. Empirical analyses show that dynamic price dispersion is significantly influenced by demand characteristics variables such as population, income and the share of business passengers, as well as by competitive pressures stemming from the presence of low-cost carriers, but not by the competition intensity. The impact of these variables intensifies as the departure date approaches. These results imply that in the presence of low-cost carriers, full-service carriers tend to adopt a more aggressive high-low pricing strategy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Transportation Research Part E: Logistics and Transportation Review
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
