A case study of pricing strategies in European airline markets: The London – Amsterdam route

Marco Alderighi, Alessandro Cento and Claudio Piga

Journal of Air Transport Management, 2011, vol. 17, issue 6, 369-373

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.

Keywords: Market segmentation; Stay restrictions; Inter-temporal discrimination; Pricing (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:17:y:2011:i:6:p:369-373

DOI: 10.1016/j.jairtraman.2011.02.009

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