Weekend effect in airfare pricing

Benny Mantin and Bonwoo Koo

Journal of Air Transport Management, 2010, vol. 16, issue 1, 48-50

Abstract: Internet traffic during weekends is lighter than at weekdays, allowing airlines to adopt a distinctive pricing policy during the weekend. By analyzing the daily airfares for 1000 US domestic routes, this study tests whether a weekend effect exists in the level and dispersion of airfares. It finds a strong weekend effect for airfare dispersion, but not for price level. This suggests that different arrival timing of online consumers during the weekdays motivate airlines to adopt a distinctive pricing mechanism during weekends, by offering occasional discounts while maintaining the same fare level on average.

Keywords: Airline industry; Daily airfare; Price dispersion; Internet (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:16:y:2010:i:1:p:48-50

DOI: 10.1016/j.jairtraman.2009.07.002

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