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Airline daily fare differentiation in a medium-size travel market

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  • Obeng, K.

Abstract

This paper examines variation in airline fares for trips in a medium-size travel market. It develops a conceptual model of fares offered, and uses daily information about fare, plane and flight characteristics, and trip characteristics easily available on the internet. Based on this information it estimates a two-way fixed effects model of airline fares. The results show large differences in fares among the airlines, large variation in daily fares offered, and provide evidence of fare differentiation in the travel market analyzed.

Suggested Citation

  • Obeng, K., 2008. "Airline daily fare differentiation in a medium-size travel market," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 168-174.
  • Handle: RePEc:eee:jaitra:v:14:y:2008:i:4:p:168-174
    DOI: 10.1016/j.jairtraman.2008.04.001
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    References listed on IDEAS

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    Cited by:

    1. Narangajavana, Yeamduan & Garrigos-Simon, Fernando J. & García, Javier Sanchez & Forgas-Coll, Santiago, 2014. "Prices, prices and prices: A study in the airline sector," Tourism Management, Elsevier, vol. 41(C), pages 28-42.
    2. Obeng, K. & Sakano, R., 2012. "Airline fare and seat management strategies with demand dependency," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 42-48.
    3. Meire, Sarah & Derudder, Ben, 2021. "Virtual interlining within the European airport network: An airfare analysis," Journal of Air Transport Management, Elsevier, vol. 94(C).

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