By adding fuel surcharges to base fares, airlines pass on the impact of higher jet fuel prices to consumers. Given the wide range of design options for fuel surcharge schemes, the reduced price transparency and the question of fair cost recovery, fuel surcharges have become a consumer protection...

During 2012 the Italian passenger market has experienced the entry of a new operator, Nuovo Trasporto Viaggiatori (NTV) on the high speed rail (HSR) market segment, in competition with the incumbent Trenitalia. The Italian market is the first and most extensive case in Europe where two railway...

Frequent Flier Programs (FFPs) are said to impact airline consumer behaviour such that revenue of sponsoring airlines increases. Prior research relies on aggregate industry data to study FFPs. We examine the impact of FFPs on individual consumer behaviour in a quasi-natural experimental set-up...

The adoption of the low-cost carrier business model has applied competitive pressure on established network or “legacy†carriers, by offering fares at prices that legacy carriers find it difficult to match and still cover their fixed costs. This paper reports how two medium-sized...

This paper identifies a source of price discrimination utilized by airlines – price discrimination based on the day-of-the-week that a ticket is purchased. Using unique transaction data, we compare tickets on the same airline and route that are purchased on different days of the week, after...

We propose a new integrated model for pricing airline tickets that takes into account the perceived value of multiple services associated with a given flight. For instance, clients perceive benefits on different attributes such as refund options, baggage allowances, time slots, days of...

The impressive growth of low cost carriers has been mainly exploited through low fares. One may ask whether after having obtained significant market shares, dominant low cost carriers are heading to a new pricing policy. This paper analyzes whether the pricing adopted by Ryanair changes over...

Fully flexible business class and “full economy†airline tickets are aimed at meeting the needs of business travellers whose travel requirements may change after a ticket is purchased. The provision of these products has implications for airlines’ revenue management systems,...

After its success in the service industry, revenue management is now an increasingly discussed topic in the process industry. The results from an empirical study among 124 firms show that the overall importance of revenue management within the process industry is regarded as high. Furthermore,...