Tuesday, June 8, 2010

Airline Web Pricing During a Price War

Blog readers fluent in Portugese may be interested in Fabiana Todesco et al.'s Airline Web Pricing During a Price War: Where Are the Deep Discounts?, 2 Rev. Transp. Lit. 21 (available from SSRN here).  From the abstract:

This paper uses a reduced form econometric model to identify elements correlated with discounts in air fares three Brazilian airlines charge in a set of six domestic destinations flown out of the city of São Paulo. Our dataset was built with information extrated directly from the websites of the airlines especially with the intention of empirically modelling the statistics associated with the practice of the web pricing of the airlines, namely means and variations. Obtained results show that traveling with GOL, TAM, or late in the night represent the options for lower fares. Higher fares are associated with evening departures, and connecting flights.


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