Outline

  • Abstract
  • Keywords
  • 1. Introduction
  • 2. Current Research
  • 2.1. Dynamic Pricing and Low Cost Airlines Strategies
  • 2.2. Measuring the Impact of the Internet on Airfares
  • 3. Empirical Model
  • 4. Data
  • 5. Results and Discussions
  • 5.1. the Effect of Technology on the Price Fixing Strategies of Air Transport
  • 6. Conclusions
  • Appendix. Variables Included in the Study
  • References

رئوس مطالب

  • چکیده
  • کلید واژه ها
  • 1. مقدمه
  • 2. مطالعه ی فعلی
  • 2.1. قیمت گذاری پویا و استراتژی های خطوط هوایی کم هزینه
  • 2.2. بررسی اثر اینترنت بر قیمت حمل و نقل هوایی
  • 3. مدل تجربی
  • 4. اطلاعات
  • 5. نتایج و بحث و بررسی
  • 5.1. اثر تکنولوژی بر استراتژی های تثبیت قیمت حمل و نقل هوایی
  • 6. نتیجه گیری

Abstract

This study seeks to analyse the price determination of low cost airlines in Europe and the effect that Internet has on this strategy. The outcomes obtained reveal that both users and companies benefit from the use of ICTs in the purchase and sale of airline tickets: the Internet allows consumers to increase their bargaining power comparing different airlines and choosing the most competitive flight, while companies can easily check the behaviour of users to adapt their pricing strategies using internal information.

More than 2500 flights of the largest European low cost airlines have been used to carry out the study. The study revealed that the most significant variables for understanding pricing strategies were the number of rivals, the behaviour of the demand and the associated costs. The results indicated that consumers should buy their tickets before 25 days prior to departure.

Keywords: - - - -

Conclusions

This study seeks to analyse the price fixing strategy of low cost airlines in Europe and the effect that the Internet has on both supply and demand. In view of the results observed, there is no doubt that the concept of yield management has changed indefinitely. It has transformed from a discrimination process based on experience to strategies capable of responding to information in real time. The most significant results obtained are the following:

  1. The results revealed an opposite effect to the economies of density that were used to deregulate the industry (a greater concentration of the product tends to reduce prices), and the power of the monopoly increases the final price of the product.
  2. The Internet effect has been proven for the sample, both from the supply point of view and the demand perspective. The regions with greater access to the Internet find lower prices thanks to a higher level of competitiveness derived from the access to information; while the airlines have the possibility of using the information that is available to them to modify prices in real time. These types of connotations have opened a new panorama in ecommerce which has given rise to the exploitation of big data in every industry.
  3. The LCCs observed seem to define their strategies according to different elements, although the most significant are the number of rivals, the behaviour of demand, the associated costs and the subsidies received. The ICTs are responsible for periodic price alterations which do not affect demand.

In summary, the results obtained in this study are consistent with those found by authors such as Malighetti, et al. (2009), Bachis and Piga (2011) or Salanti, et al. (2012). The incorporation of new variables can be considered as a further step in the research of the low cost airline segment which should continue to analyse how complementary product, governments and particularly new technologies condition the access by the demand and the strategies of the airlines.

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