Modeling the advance purchase behaviors of air passengers is essential when airlines develop revenue management strategies. Therefore, this study empirically investigates advance purchase behaviors based on the air ticket transaction data by using a continuous logit model. The estimation results show that advance purchase behaviors are significantly affected by price, price uncertainty, time of day (morning, afternoon and evening flight), days of week (flight on Friday), months of year (peak or off-peak seasons), and consecutive holiday. Accordingly, different pricing strategies should be used for different flights to maximize revenue.
|Number of pages||11|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|State||Published - 1 Sep 2016|
- Advance purchase behavior
- Continuous logit model
- Revenue management