Abstract

ABSTRACTThis paper studies the optimal price and optimal profit for different online ticket booking strategies adopted by low-cost carriers (LCCs): official website or online travel agencies (OTAs). We consider the competitions among the airlines and the impact of passenger satisfaction on their choices. Moreover, we apply an empirical example (i.e. Spring Airlines and Qunar.com) to analyse the different strategies. The results show that when an OTA has advantage in ticket price, the optimal price has no relationship with the number of the airlines.

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