The impact of the internet on the pricing strategies of the European low cost airlines

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Title: The impact of the internet on the pricing strategies of the European low cost airlines
Authors: Moreno-Izquierdo, Luis | Ramón-Rodríguez, Ana B. | Perles Ribes, José Francisco
Research Group/s: Economía del Turismo, Recursos Naturales y Nuevas Tecnologías (INNATUR) | Internacionalización de la Empresa y Comercio Exterior
Center, Department or Service: Universidad de Alicante. Departamento de Análisis Económico Aplicado | Universidad de Alicante. Instituto Interuniversitario de Economía Internacional
Keywords: Low cost airlines | Airline pricing | ICT | Travel industry strategies | Air fares
Knowledge Area: Economía Aplicada
Issue Date: 16-Oct-2015
Publisher: Elsevier
Citation: European Journal of Operational Research. 2015, 246(2): 651-660. doi:10.1016/j.ejor.2015.05.013
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.
ISSN: 0377-2217 (Print) | 1872-6860 (Online)
DOI: 10.1016/j.ejor.2015.05.013
Language: eng
Type: info:eu-repo/semantics/article
Rights: © 2015 Elsevier B.V. and Association of European Operational Research Societies (EURO) within the International Federation of Operational Research Societies (IFORS)
Peer Review: si
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Appears in Collections:INV - INNATUR - Artículos de Revistas
INV - Internacionalización de la Empresa y Comercio Exterior - Artículos de Revistas
INV - ECO-IA - Artículos de Revistas

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