Airline Pricing Strategies Versus Consumer Rights

Gregor Bischoff, Sven Maertens and Wolfgang Grimme

Transportation Journal, 2011, vol. 50, issue 3, 232-250

Abstract: As airlines price‐discriminate, business travelers usually have to pay prices above average cost for flexible tickets. This allows the airlines to offer cheaper tickets to leisure travelers, albeit in the form of restrictive fares. Methods used by business travelers to circumvent strict rules of discounted fares are known as “cross‐” and “hidden‐city” ticketing. However, according to IATA Recommended Practice 1724, Article 3.3.1, airlines reserve the right to cancel all remaining legs of a booking if flight coupons are not used in full and sequential order. We discuss this issue from both a legal and commercial perspective. After providing an overview of various legal opinions, we predict the impact on airline marketing and economics if the described forms of fare rule circumvention are allowed.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.5325/transportationj.50.3.0232

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:transj:v:50:y:2011:i:3:p:232-250

Access Statistics for this article

More articles in Transportation Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().