Low-cost pricing strategies in leisure markets

Salanti, Andrea; Malighetti, Paolo; Redondi, Renato

doi:10.1016/j.tourman.2011.03.003

Cited by 31 publications

(30 citation statements)

References 11 publications

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“…4 In the case of Salanti et al (2012) the explanatory capacity of their model is 35% for the case of European tourism markets; Filippi (2012) -25%-andMalighetti et al (2010) -56%-also obtain lower R 2 in fairly similar exercises as those carried out here. However, these results are very similar to those obtained in or models before using the PCSEs.…”

Section: A C C E P T E D Msupporting

confidence: 56%

“…This effect is also observed in Salanti et al (2012). We should also refer to the variable VSD (Fridays, Saturdays and Sundays), which, although on business routes could be good days to travel, on tourist routes it is observed that this is the worst option for the user.…”

Section: A C C E P T E D Mmentioning

confidence: 69%

“…Therefore, airlines such as Ryan Air or EasyJet must segment the market depending on the type of route or flight. Different authors have observed that holidays (Malighetti et al, 2010), the day of the week or the month of purchase (Salanti et al, 2012), or even the number of days that the passenger is to stay in the destination (Alderighi et al, 2011) are used by airlines to differentiate between business passengers and tourists. The results of the study of EasyJet conducted by Salanti et al (2012) reveal that tourist routes exhibit lower dispersion and lower average fares than business routes, and other variables such as GDP, the population volume or predominant economic activity in the regions of origin and destination could be behind the different strategies implemented by the airlines (see Table 1).…”

Section: Accepted Manuscriptmentioning

confidence: 99%

“…In previous studies, such as Keeler (1972), Butler and Huston (1988), Morrison and Winston (1990) or Evans and Kessides (1993) among many others, the timeframe used is much longer than one year. However, the more recent studies analysing price dispersion use timeframes of months (such as Alderighi et al, 2011or Salanti et al, 2012 …”

Section: Accepted Manuscriptmentioning

confidence: 99%

“…There is also a possible segmentation between business and leisure flights depending on when the trip is made. The VSD it variable (weekend flights) is also related to the tourism effect, according to Mantin and Koo (2010) and Salanti, Malighetti and Redondi (2012), as flying at weekends is closely related to the tourism market.…”

Section: Empirical Modelmentioning

confidence: 99%

See 4 more Smart Citations

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

Moreno‐Izquierdo

Rodríguez

Perles‐Ribes

2015

European Journal of Operational Research

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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 2,500 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.

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Section: A C C E P T E D Msupporting

confidence: 56%

Section: A C C E P T E D Mmentioning

confidence: 69%

Section: Accepted Manuscriptmentioning

confidence: 99%

Section: Accepted Manuscriptmentioning

confidence: 99%

Section: Empirical Modelmentioning

confidence: 99%

See 3 more Smart Citations

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

Moreno‐Izquierdo

Rodríguez

Perles‐Ribes

2015

European Journal of Operational Research

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Price volatility of revenue managed goods: Implications for demand and price elasticity

Morlotti

Mantin

Malighetti

et al. 2024

European Journal of Operational Research

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Are all online hotel prices created dynamic? An empirical assessment

Melis

Piga

2017

International Journal of Hospitality Management

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Abstract:Understanding how tourist firms set their online prices is important due to their growing reliance on Online Travel Agencies (OTA). Little is known, however, about whether differences exist in the online pricing approaches adopted by hotels using an OTA. The article tests, using a big data approach, whether the diffuse narrative of a pervasive presence of dynamic pricing provides a realistic description of hotels' pricing behavior and thus challenges the view that dynamic pricing should be considered the prevailing norm for the industry. The evidence suggests a heterogenous attitude across hotels, with uniform pricing being more widespread in most hotels of our sample, namely, the 3-star or less, while dynamic pricing is more likely applied in higher quality hotels.

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Low-cost pricing strategies in leisure markets

Cited by 31 publications

References 11 publications

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

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

Price volatility of revenue managed goods: Implications for demand and price elasticity

Are all online hotel prices created dynamic? An empirical assessment

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