Price Discrimination in the Online Airline Market: An Empirical Study

Big Data technologies have significantly increased the possibility for sellers to adopt personalisation strategies, especially in digital markets. Among such strategies, price discrimination, a practice where the same commodity is sold at different prices, either to the same customer or to different customers, stands out. Particularly, the online airline ticket market has risen the attention of economists in recent studies, both because of its specificity and of the high data availability. This manuscript enters the debate and analyses the airline ticket market in an original way. Indeed, the aim of this work is to empirically understand whether some airline companies discriminate in prices by using the customers’ data that they collect from their websites, and, if so, which is the impact on social welfare. For performing this assessment, a software that is able to automatically collect pricing data is developed and freely released. By executing the software in two time periods, tickets prices of three airlines, three itineraries, and four different user profiles are acquired. A double analysis is performed to check if customers’ information are used to discriminate (intra-user), and if different prices are offered to distinct user profiles (inter-user). Moreover, the analyses consider control data collected from the API of the Global Distribution System Amadeus, the main flight booking platform dedicated to travel agents. Upon inspection, no evidence is found in this study to support the hypothesis that airlines use price discrimination techniques.

Improving the Accuracy of Text Classification using Stemming Method, A Case of Informal Indonesian Conversation

As social beings, humans always interact with one another using either verbal or non-verbal language. Language is an arbitrary sound-symbol system, which is used by members of a community to cooperate, interact, and identify themselves. Indonesian language is classified into two categories, namely formal and non-formal. The former meets the grammatical standard as prescribed by linguistic rules of the language, while the latter tends to deviate it. In daily communication, however, non-formal language is more intensively used because they are more practical and easier to understand. With this tendency, non-formal language causes problems in linguistic computation because most linguistic computations use formal standard languages that already have standardized rules. This research aims to develop a dynamic Indonesian closed corpus related to airline ticket reservation, namely "Incorbiz". The "Incorbiz" will be used as stemming tool for formal and non-formal Indonesian. Text processing, text normalization, and auto-update data were proposed in this research. This research also compared two stemming techniques i.e. "Sastrawi" and "Incorbiz" to process the 30-sample dataset. The algorithm used to process the classification is Support Vector Machine (SVM). The data used to develop the "Incorbiz" were taken from conversations between customer service staff and consumers in airline ticket reservations. The result showed that "Incorbiz" had higher accuracy than "Sastrawi" on 0.89 and 0.67, respectively.

New Promotion Technologies and Business Management: the case of Airline Ticket Agencies

The research objective was to study the effect of new technologies on service market using the case of airline ticket agencies. The study featured new marketing tools in the service sector and the effect of advanced technologies on the airline ticket market. Promotion instruments and methods are developing very fast. Nowadays, marketing relies on such concepts as cognitive marketing, cognitive technologies, behavioral marketing, SEO-promotion, and event-marketing. These approaches are different in nature but seek to satisfy and anticipate consumer expectations. Successful companies, e.g. Aeroflot and Sberbank, use effective combinations of these tools. A prompt adaptation to new technologies guarantees successful performance for small and medium-sized businesses. The research was based on such methods as observation, interview, scientific analysis, induction, and comparison. The empirical data were provided by the largest regional airline ticket agency. The authors used retrospective analysis of business documentation, interviewed the management, analyzed the client base, and conducted an express cost analysis. The research revealed both positive and negative consequences of digitalization. The airline ticket business proved to undergo serious changes during the digital transformation of the economy.

Exploring the Effect of Sequentially Receiving Airline and Destination Information on the Choice Behavior of Tourism Destinations

This article reports the results of a holiday destination choice model of domestic travelers in Australia. Although destination choices have been studied before, travelers’ behavior when choosing an airline ticket is less well investigated, in particular the effect of the choice of airline ticket and tourism features on each other and on the final destination choice. Multinomial logit (MNL) models were estimated using data from a Stated Preference (SP) choice experiment based on a D-Efficient design. Following the leader-driven primacy phenomenon, the article also tests whether destination choices are influenced by sequentially receiving information about airline tickets and tourism features. Results show that when airline ticket information is presented first, the destination choice behavior could be affected. In this context, the information sequencing effect is clear. However, the influence of tourism features is not as clear on the final choice when travelers are first exposed to tourism features and then airline tickets.

Relevance of Law Consumer Protection on Aircraft Post Master Flight Agent

At the time of the accident on the Lion Air flight JT 610, there were many ideas to close the flight operating permit. In fact, if reviewed further, for whatever reason, in some "corners", there are other rights that have not even received legal certainty about their protection. One of them is about airline ticket agents. Basically, according to the Consumer Protection Act, protection is not only given to consumers but businesses are also included in carrying out their trading activities. Business actors reach up to the airline agents. Moreover, before having a ticket sales permit, the agent must make a deposit to the airline ticket being sold. However, the protection that should be given in the laws and regulations does not explain the airline's obligation to return deposits to travel agents, who are likely to suffer fatal losses.

The Bundling Strategy: The One-Click Effect on Loss Aversion

This research aims to determine different levels of loss aversion in the context of price responsiveness and service bundling. Considering that nonlinearities in price responses may exist in a bundling strategy, this research tests the existence of different degrees of loss aversion, depending on whether an individual books one service independently of another (e.g., an airline ticket independently of accommodation) or as part of a bundle (e.g., a package that includes an airline ticket plus accommodation). We estimate a random parameter logit model. Empirical application shows that people who book a flight independently of accommodation are more loss averse than those who book a package that includes flight and accommodation. To explain this result, we propose the one-click effect so that people who find a price higher than expected (loss aversion) are more willing to accept it if the product is included in a bundle.

Dampak Kenaikan Harga Tiket Pesawat Terhadap Return dan Harga Saham pada PT. Garuda Indonesia Tbk di Bursa Efek Indonesia

<p align="center"><strong>ABSTRACT</strong></p><p><em>This research aims to analyze the impact of the price increase of airfare against return and the stock price of PT. Garuda Indonesia Tbk. This type of research is comparative. The Data used in this research is the secondary return and stock price of the weekly PT. Garuda Indonesia TBK in Indonesia Stock Exchange, with the amount of data 21 weeks before and 21 weeks after the price increase of airfare. Data analysis Model used the paired sample t-test. The results showed that there was no return on shares of PT. Garuda Indonesia TBK before and after the price increase of the airline ticket with a significance value of 0.887. The results also showed that there was a difference in the stock price of PT. Garuda Indonesia TBK before and after the price increase of the airline ticket with a significance value of 0.000. Where the stock price after the increase of the average airline ticket price is greater Rp. 239.143. The difference in the stock price of PT. Garuda Indonesia TBK. Before and after airfare increases due to investor perception or positive sentiments that assess the price increase in the aviation industry will benefit Airline companies. The high investor confidence and improvement of management system is believed to affect the investor's desire to invest in PT. Garuda Indonesia TBK So it has a significant impact on the price increase of PT. Garuda Indonesia TBK Post Airfare increases.</em></p><p><strong><em>Keywords</em></strong><em> : </em><em>Return, Stock Price, Price Airfare</em></p><p align="center"><strong>ABSTRAK</strong></p><p><em>Penelitian ini bertujuan untuk menganalisis dampak kenaikan harga tiket pesawat terhadap return dan harga saham PT. Garuda Indonesia Tbk. Jenis penelitian adalah komparatif, data yang digunakan pada penelitian ini adalah sekunder berupa return dan harga saham mingguan PT. Garuda Indonesia Tbk di Bursa Efek Indonesia, dengan jumlah data sebanyak 21 minggu sebelum dan 21 minggu sesudah kenaikan harga tiket pesawat. Model analisis data yang digunakan paired sample t test. Hasil penelitian menunjukkan tidak terdapat perbedaan return saham PT. Garuda Indonesia Tbk sebelum dan sesudah kenaikan harga tiket pesawat dengan nilai signifikansi sebesar 0,887. Hasil penelitian juga menunjukkan bahwa terdapat perbedaan harga saham PT. Garuda Indonesia Tbk sebelum dan sesudah kenaikan harga tiket pesawat dengan nilai signifikansi sebesar 0,000. Dimana harga saham setelah kenaikan harga tiket pesawat rata-rata lebih besar Rp. 239,143 Adanya perbedaan harga saham PT. Garuda Indonesia Tbk. sebelum dan sesudah kenaikan harga tiket pesawat disebabkan oleh persepsi investor atau adanya sentimen positif yang menilai kenaikan harga tiket pada industri penerbangan akan menguntungkan bagi perusahaan penerbangan. Tingginya kepercayaan investor dan perbaikan sistem manajemen diyakini berpengaruh terhadap keinginan investor untuk berinvestasi di PT. Garuda Indonesia Tbk sehingga berdampak signifikan terhadap peningkatan harga saham PT. Garuda Indonesia Tbk pasca kenaikan harga tiket pesawat.</em></p><strong><em>Kata kunci</em></strong><em>: Return, Harga Saham, Harga Tiket</em>

PENGARUH KESADARAN MEREK, KEPUASAN KONSUMEN DAN KEPERCAYAAN KONSUMEN ATAS MEREK TERHADAP PEMBELIAN ULANGTIKET PESAWAT FIREFLY DI BANDA ACEH

ABSTRAKThe aim of this research is to know the influence of brand awareness, consumer satisfaction andconsumer trust on brand toward the re-purchasing of Firefly airline ticket in Banda Aceh. This study took 99respondents of re-purchasing of FireFly airline tickets in Banda Aceh. This research was conducted at the SultanIskandar Muda airport in Banda Aceh. Data analysis method which used in this research is multiple linearregression. The research results showed that the variables Brand Awareness, consumer satisfaction andconsumer trust for brand have significant influence to the repurchasing of Firefly airline tickets in Banda Aceh.In the future, it is expected that the re-purchasing of Firefly airline tickets in Banda Aceh should be able tomaintain their brand awareness, consumer satisfaction and consumer trust for brand and to improve otherfactors which is capable to creating consent to the consumer so that the consumer wants to recommendate to theothers.Keywords: Brand awareness, Consumer trust for brand, Cunsumer satisfaction, Repurchasing