Araştırma Makalesi

Relationship between Airline Ticket Price, Demand and Business Model: A Worldwide Analysis

Cilt: 15 Sayı: 3 29 Eylül 2023
PDF İndir
TR EN

Relationship between Airline Ticket Price, Demand and Business Model: A Worldwide Analysis

Abstract

The aim of this study is to reveal the relationship between the average price per passenger and the number of passenger of airlines. In the study, we analyzed the average price per passenger and number of passenger data of airlines for the period 2013-2022 using panel data analysis. We applied a panel regression model in the sample of all airlines. Therefore, we conducted the analysis using 4194 observations in the sample of all airlines. In addition, in the study, we divided the airlines into different groups according to their business model. In this context, we have classified airlines as Network carriers, Low-cost carriers, Charter carriers and Regional carriers. The findings of the study show that there is a reaction in the number of passengers against the change in the average price per passenger. The results of the analysis revealed that there is a significant and negative relationship between ticket price and airline demand but there are elasticity differences according to the business model.

Keywords

Kaynakça

  1. Abdella, J. A., Zaki, N., & Shuaib, K. (2018, November). Automatic detection of airline ticket price and demand: A review. In 2018 International Conference on Innovations in Information Technology (IIT) (pp. 169-174). IEEE.
  2. Baltagi, B. H. (2005). Econometric Analysis of Panel Data (Cilt 3th Ed.). England: Chichester: John Wiley& Sons.
  3. Baltagi B.H. (2021) Introduction, In Econometric Analysis of Panel Data, Springer, Cham. V. 4. No. 1, pp. 1–14.
  4. Beyzatlar, M. A., Karacal, M., & Yetkiner, H. (2014). Granger-causality between transportation and GDP: A panel data approach. Transportation Research Part A: Policy and Practice, 63, 43-55.
  5. Bilotkach, V. (2015). Are airports engines of economic development? A dynamic panel data approach. Urban Studies, 52(9), 1577-1593.
  6. Bilotkach, V., & Lakew, P. A. (2014). On sources of market power in the airline industry: Panel data evidence from the US airports. Transportation Research Part A: Policy and Practice, 59, 288-305.
  7. Brons, M., Pels, E., Nijkamp, P., & Rietveld, P. (2002). Price elasticities of demand for passenger air travel: a meta-analysis. Journal of Air Transport Management, 8(3), 165-175.
  8. Burger, B., & Fuchs, M. (2005). Dynamic pricing—A future airline business model. Journal of Revenue and Pricing Management, 4(1), 39-53.

Ayrıntılar

Birincil Dil

İngilizce

Konular

İşletme

Bölüm

Araştırma Makalesi

Yayımlanma Tarihi

29 Eylül 2023

Gönderilme Tarihi

15 Ocak 2023

Kabul Tarihi

10 Ağustos 2023

Yayımlandığı Sayı

Yıl 2023 Cilt: 15 Sayı: 3

Kaynak Göster

APA
Kayhan, S., Kiracı, K., & Yaşar, M. (2023). Relationship between Airline Ticket Price, Demand and Business Model: A Worldwide Analysis. Aksaray Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 15(3), 211-218. https://doi.org/10.52791/aksarayiibd.1234849

Cited By