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- Title
Relationship between Airline Ticket Price, Demand and Business Model: A Worldwide Analysis.
- Authors
Kayhan, Selçuk; Kiracı, Kasım; Yaşar, Mehmet
- Abstract
The purpose of this study is to investigate the relationship between the average price per passenger and the number of passengers. Using panel data analysis, it is examined the average price per passenger and number of passengers for airlines for the period 2013-2022. All airlines were analyzed with a panel regression model. 4194 observations were used from the sample of all airlines for the analysis. Additionally, the study divided airlines into groups based on their business model. According to this classification, airlines fall into four categories: network carriers, low-cost carriers, charter carriers, and regional carriers. It appears from the results of the study that there is a reaction in the number of passengers in response to changes in the average price per passenger. There is a significant negative relationship between ticket prices and airline demand, but the elasticity varies by the business model. It is expected that the results of the research will guide aviation decision makers to develop policies that take into account the coefficients by analysing the destination-based business models of competing airlines.
- Subjects
AIRLINE tickets; TICKET sales; BUSINESS models; AIR travelers; PRICES
- Publication
Journal of Aksaray University Faculty of Economics & Administrative Sciences / Aksaray Üniversitesi Iktisadi ve Idari Bilimler Fakültesi Dergisi, 2023, Vol 15, Issue 3, p211
- ISSN
1308-7525
- Publication type
Article
- DOI
10.52791/aksarayiibd.1234849