Frequent flyer programs premium and the role of airport dominance

Diego Escobari

Applied Economics Letters, 2011, vol. 18, issue 16, 1565-1569

Abstract: This article estimates a Frequent Flyer Programs (FFP) price premium - higher fares associated with a larger proportion of travellers using FFP. The results show that FFP affect the entire price distribution, but the effect is larger on lower end fares. In addition, airport dominance increases the premium on less expensive fares but has no effect on the premium associated with the right tail of the price distribution.

Keywords: frequent flyer programs; pricing; airlines; panel data (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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DOI: 10.1080/13504851.2010.548780

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