TY - JOUR
T1 - A case study of pricing strategies in European airline markets
T2 - The London - Amsterdam route
AU - Alderighi, Marco
AU - Cento, Alessandro
AU - Piga, Claudio A.
PY - 2011/11/1
Y1 - 2011/11/1
N2 - 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.
AB - 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.
KW - Inter-temporal discrimination
KW - Market segmentation
KW - Pricing
KW - Stay restrictions
UR - http://www.scopus.com/inward/record.url?scp=79958256945&partnerID=8YFLogxK
U2 - 10.1016/j.jairtraman.2011.02.009
DO - 10.1016/j.jairtraman.2011.02.009
M3 - Article
AN - SCOPUS:79958256945
VL - 17
SP - 369
EP - 373
JO - Journal of Air Transport Management
JF - Journal of Air Transport Management
SN - 0969-6997
IS - 6
ER -