The determinants of hidden-city ticketing: Competition, hub-and-spoke networks, and advance-purchase requirements

卷:173

Article

关键词: FREQUENT-FLYER PROGRAMS;    PRICE-DISCRIMINATION;    MARKET POWER;    REVENUE MANAGEMENT;    AIRLINE MARKET;    DISPERSION;    ECONOMIES;    DENSITY;   

DOI  :  10.1016/j.tre.2023.103086

来源: SCIE

【 摘 要 】

We offer a comprehensive empirical study on hidden-city ticketing (HCT), a pricing phe-nomenon 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).

【 授权许可】

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