Price determinants of airline tickets : flying with KLM and Transavia

Nowadays, pricing strategies become more and more complex, but their main goal remains the same: to maximize profits by targeting customers. This research examines which factors determine the flight prices, in particular for KLM and Transavia. Furthermore, we check whether these determinants differ for traditional and low-cost airlines. Results show that a longer flight, closer departure date, and higher level of competition, all lead to higher flight prices. The influence of departure day is more prominent for traditional carriers, while the influence of departure time is more prominent for low-cost airlines. The booking day and time do not have an influence on the flight prices. This research provides companies with a further insight in the pricing strategies, for both the airlines researched as well as the competition, while customers can use this research to better understand the pricing strategies behind the products they are buying.