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

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