作者
Stacey Mumbower, Laurie A Garrow, Matthew J Higgins
发表日期
2014/8/1
期刊
Transportation Research Part A: Policy and Practice
卷号
66
页码范围
196-212
出版商
Pergamon
简介
We estimate flight-level price elasticities using a database of online prices and seat map displays. In contrast to market-level and route-level elasticities reported in the literature, flight-level elasticities can forecast responses in demand due to day-to-day price fluctuations. Knowing how elasticities vary by flight and booking characteristics and in response to competitors’ pricing actions allows airlines to design better promotions. It also allows policy makers the ability to evaluate the impacts of proposed tax increases or time-of-day congestion pricing policies. Our elasticity results show how airlines can design optimal promotions by considering not only which departure dates should be targeted, but also which days of the week customers should be allowed to purchase. Additionally, we show how elasticities can be used by carriers to strategically match a subset of their competitors’ sale fares. Methodologically, we use …
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