Frequent flyer programs premium and the role of airport dominance

Diego Escobari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper estimates a Frequent Flyer Programs (FFP) price premium -- higher fares associated with a larger proportion of travelers 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)
JEL-codes: C23 L12 L93 (search for similar items in EconPapers)
Date: 2010-11
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Published in Applied Economics Letters 16.18(2011): pp. 1565-1569

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Journal Article: Frequent flyer programs premium and the role of airport dominance (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36231

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