Airfare pricing determinants in hub-to-hub markets

Airfare pricing determinants in hub-to-hub markets

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Article ID: iaor2007301
Country: Netherlands
Volume: 14
Issue: 1
Start Page Number: 15
End Page Number: 22
Publication Date: Jan 2006
Journal: Journal of Transport Geography
Authors:
Keywords: financial, yield management
Abstract:

This paper expands upon past works in airfare pricing determinants by looking at a set of airports infrequently studied as a whole group by themselves, the hubs. The nature of hub-to-hub markets makes them unique and while they are unique in some aspects certain trends affecting all commercial air transportation markets are also seen affecting hub-to-hub markets. Pricing in hub-to-hub markets in the United States is examined and then on a carrier-by-carrier basis. Pricing in hub-to-hub markets is affected by a number of statistically significant variables including route type, presence and type of low fare carrier, and competition in hub-to-hub markets.

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