Effect of high-speed rail competition on airlines’ intertemporal price strategies

In China, serious development of high-speed rail (HSR) is expected to affect airlines' intertemporal price strategies, which are important means for airlines to optimize revenue. The authors present the impact using a panel dataset of 22 city pairs. The authors found that HSR competition makes the airlines' intertemporal price curve steeper, meaning that the price strategy for leisure and business travelers has changed. Additionally, the increase in leisure demand increases airlines' average price (especially along HSR competition routes), while the airlines' average price is relatively low on the routes with high business demand. Notably, with HSR competition, a different pricing strategy is presented, wherein airlines’ average price is higher on the routes with higher business demand.

• Record URL:
  • https://doi.org/10.1016/j.jairtraman.2019.101694
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S0969699719300419
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/31005945
• Supplemental Notes:
  • © 2019 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Su, Min
  • Luan, Weixin
  • Sun, Tianyao
• Publication Date: 2019-9

Language

• English

Media Info

• Media Type: Web
• Features: Figures; References; Tables;
• Pagination: 101694
• Serial:
  • Journal of Air Transport Management
  • Volume: 80
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0969-6997
  • Serial URL: http://www.sciencedirect.com/science/journal/09696997

Subject/Index Terms

• TRT Terms: Airlines; Competition; High speed rail; Pricing
• Geographic Terms: China
• Subject Areas: Administration and Management; Aviation; Economics; Finance; Railroads;

Filing Info

• Accession Number: 01723458
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 22 2019 4:48PM