DEVI seminar – Chantal Latgé-Roucolle

Date - Heure / Date - Hour
Date(s) - 13/10/2016
11h15 - 12h15

Emplacement / Location
ENAC, Building Breguet, Amphi Breguet

Dynamic Price Competition in the Air Transport Market: An Analysis on Long-Haul Routes

• The pricing policy of airlines is based on revenue management. Revenue management analysts daily observe competitive prices and adapt the pricing of their company. This could lead to a sound homogenization of airlines pricing strategies while competing on the market. We test empirically whether airline pricing strategies differ or not on a particular set of long-haul routes. Using data which include information on the price of the ticket, the date of purchase and the day of departure, we estimate the price evolution with the day to departure. We use a 3rd degree polynomial regression form between prices and day to departure and we introduce some interaction with airlines operating on the route. We show that the polynomial form is statistically significant and that the coefficients of the polynomial differ from one airline to the other. These results confirm the differences in pricing strategies implemented by airlines during the ticket sale period of their flights.

Chantal Latgé-Roucolle, DEVI, ENAC (speaker)
Miguel Urdanoz, TBS
Catherine Muller, TBS