Abstract
In China, serious development of high-speed rail (HSR) is expected to affect airlines' intertemporal price strategies, which are important means for airlines to optimize revenue. We present the impact using a panel dataset of 22 city pairs. We found that HSR competition makes the airlines' intertemporal price curve steeper, meaning that the price strategy for leisure and business travelers has changed. Additionally, the increase in leisure demand increases airlines' average price (especially along HSR competition routes), while the airlines' average price is relatively low on the routes with high business demand. Notably, with HSR competition, a different pricing strategy is presented, wherein airlines’ average price is higher on the routes with higher business demand.
Sign-in/Register to access full text options 
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 callDisclaimer: 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.
