The determinants of hidden-city ticketing: Competition, hub-and-spoke networks, and advance-purchase requirements
The determinants of hidden-city ticketing: Competition, hub-and-spoke networks, and advance-purchase requirements
- Neue Suche nach: Gaggero, Alberto A.
- Weitere Informationen zu Gaggero, Alberto A.:
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https://orcid.org/0000-0002-6014-3236
- Neue Suche nach: Luttmann, Alexander
- Neue Suche nach: Gaggero, Alberto A.
- Neue Suche nach: Luttmann, Alexander
Abstract We offer a comprehensive empirical study on hidden-city ticketing (HCT), a pricing phenomenon in the airline industry that occurs when the fare for a nonstop trip from A to B is more expensive than a connecting trip from A to B and B to C. Exploiting a unique panel of over 473 thousand fares for flights departing between October 1st, 2019 and December 31st, 2019, we find that HCT depends on route competition (both on A–B and A–C routes), largely occurs in the last week to departure, is less likely when airport C is a hub, and primarily occurs on carriers that operate large hub-and-spoke networks (e.g., American, Delta, and United).
Highlights Hidden-city ticketing depends on route competition. Hidden-city ticketing is more likely in the last week before departure. Hidden-city ticketing mainly occurs on carriers that operate large hub-and-spoke networks.
Dokumentinformationen
The determinants of hidden-city ticketing: Competition, hub-and-spoke networks, and advance-purchase requirements
2023-03-02
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
L11 , L13 , L93 , D40 , Advance-purchase , Airline pricing , Competition , Hidden-city ticketing , Hub airports , Price discrimination
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