Airline price discrimination: a practice of yield management or customer profiling?

Efthymios Constantinides, Rasha H.J. Diercks

Research output: Contribution to conferencePaper

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Abstract

Airline ticket prices frequently change, which is usually caused by yield management as price discrimination practice. Recently, buyers of online airline tickets tend to complain about price discrimination based on customer profiling, e.g. by means of cookie data. As cookie data and other directly or indirectly obtained customer information is easily available via the Internet, airlines may use this information to offer personalized ticket prices. In a month-long experiment, in which prices of airline tickets were tracked, we found that cookies were not used to determine prices. However, customer information from other direct sources seems to be important in dynamic pricing. Besides, it was discovered that most price changes occurred in the morning; these were usually minor price changes and were mostly seen at full-service carriers
Original languageEnglish
Publication statusPublished - 3 Jun 2014
Event43rd EMAC Annual Conference 2014: Paradigm shifts & interactions - University of Valencia, Valencia, Spain
Duration: 3 Jun 20146 Jun 2014
Conference number: 43
http://emac2014.emac-online.org/www.emac2014.eu/index.html

Conference

Conference43rd EMAC Annual Conference 2014
Abbreviated titleEMAC
CountrySpain
CityValencia
Period3/06/146/06/14
Internet address

Keywords

  • IR-92000
  • METIS-305381

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    Constantinides, E., & Diercks, R. H. J. (2014). Airline price discrimination: a practice of yield management or customer profiling?. Paper presented at 43rd EMAC Annual Conference 2014, Valencia, Spain.