A case study of pricing strategies in European airline markets

The London - Amsterdam route

Marco Alderighi, Alessandro Cento, Claudio A. Piga

Research output: Contribution to journalArticle

18 Citations (Scopus)

Abstract

Published fares London-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.

Original languageEnglish
Pages (from-to)369-373
Number of pages5
JournalJournal of Air Transport Management
Volume17
Issue number6
DOIs
Publication statusPublished - 1 Nov 2011
Externally publishedYes

Fingerprint

European market
segmentation
pricing
market
duration of stay
Transportation charges
market segmentation
Costs
discrimination
costs
cost
Pricing strategy
Segmentation
Pricing
Airline market
price
Intertemporal price discrimination
Price setting
Market segmentation

Cite this

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A case study of pricing strategies in European airline markets : The London - Amsterdam route. / Alderighi, Marco; Cento, Alessandro; Piga, Claudio A.

In: Journal of Air Transport Management, Vol. 17, No. 6, 01.11.2011, p. 369-373.

Research output: Contribution to journalArticle

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