Airlines’ Pricing Strategy in Context of a Recently Liberalised Market

[:en]

Airlines' Pricing Strategy in Context of a Recently Liberalised Market

(Conference Proceeding)

Conference: 20TH ATRS World Conference
Year: 2016
Location: Rhodes, Greece

Abstract

The pricing strategies reflect the airlines’ business strategies and models. It provides valuable  information to characterize markets’ dynamics and competitive behavior. This paper presents  the results of a study aimed to understand the pricing strategies on a recently liberalized  market.

In 2015, the Portuguese Government liberalized market access to selected airports in the  Azores Islands. The low costs companies – Ryanair and EasyJet, immediately entered the  market. The incumbents companies – SATA and Tap Portugal – also reacted, reducing prices  and changing frequencies.

Preliminary results shows that since public service obligations are still in force, prices  reduction was not so abrupt as initially expected. Also, yield management of low cost  companies seem more dynamic that incumbents.

Keywords

First Author

Jorge Silva
Jorge Silva
Vasco Reis
Vasco Reis
Inês Fonseca
Inês Fonseca
[:PT]

Airlines' Pricing Strategy in Context of a Recently Liberalised Market

(Comunicação em Conferência)

Conferência: 20TH ATRS World Conference
Ano: 2016
Localização: Rhodes, Grécia

Resumo

The pricing strategies reflect the airlines’ business strategies and models. It provides valuable  information to characterize markets’ dynamics and competitive behavior. This paper presents  the results of a study aimed to understand the pricing strategies on a recently liberalized  market.

In 2015, the Portuguese Government liberalized market access to selected airports in the  Azores Islands. The low costs companies – Ryanair and EasyJet, immediately entered the  market. The incumbents companies – SATA and Tap Portugal – also reacted, reducing prices  and changing frequencies.

Preliminary results shows that since public service obligations are still in force, prices  reduction was not so abrupt as initially expected. Also, yield management of low cost  companies seem more dynamic that incumbents.

Palavras-chave

Primeiro Autor

Jorge Silva
Jorge Silva
Vasco Reis
Vasco Reis
Inês Fonseca
Inês Fonseca
[:pt][/vc_column_text][/vc_column][/vc_row]

Airlines' Pricing Strategy in Context of a Recently Liberalised Market

(Comunicação em Conferência)

Conferência: 20TH ATRS World Conference
Ano: 2016
Localização: Rhodes, Grécia

Resumo

The pricing strategies reflect the airlines’ business strategies and models. It provides valuable  information to characterize markets’ dynamics and competitive behavior. This paper presents  the results of a study aimed to understand the pricing strategies on a recently liberalized  market.

In 2015, the Portuguese Government liberalized market access to selected airports in the  Azores Islands. The low costs companies – Ryanair and EasyJet, immediately entered the  market. The incumbents companies – SATA and Tap Portugal – also reacted, reducing prices  and changing frequencies.

Preliminary results shows that since public service obligations are still in force, prices  reduction was not so abrupt as initially expected. Also, yield management of low cost  companies seem more dynamic that incumbents.

Palavras-chave

Primeiro Autor

Jorge Silva
Jorge Silva
Vasco Reis
Vasco Reis
Inês Fonseca
Inês Fonseca
[:]