Piga, CAG, Alderighi, M and Nicolini, M (2016) Targeting leisure and business passengers with unsegmented pricing. Tourism Management, 54. pp. 502-512.

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Abstract

We analyse the fare setting strategy of a leading European low-cost carrier, Ryanair, which, until recently, adopted an unsegmented pricing policy (all tickets belong to a single fare class). We show that, to account for different demand characteristics, the company adjusts the two main components governing the dynamics of posted fares, namely time (the number of days before departure) and capacity (the current number of available seats). We find that: 1) in routes with a strong presence of leisure (business) traffic, fares are set to be less (more) responsive to the time component; 2) in schedules more suitable for leisure (business) travellers, fares are set to be less (more) responsive to the capacity component.

Item Type: Article
Uncontrolled Keywords: tourism, economics, pricing
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HE Transportation and Communications
H Social Sciences > HF Commerce
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 25 Jan 2016 13:18
Last Modified: 16 Apr 2019 14:37
URI: http://eprints.keele.ac.uk/id/eprint/1410

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