The goal of this assignment is to the illustrate the result of airline price discrimination or revenue management on business and leisure travelers. Choose any city-pair and two competing airlines. A network and low-cost-carrier make an interesting comparison, but any airlines of interest are acceptable. For each airline, obtain the price of a round-trip itinerary departing one day in advance and 30 or more days away. The former trip is likely purchased by business travelers and the latter by leisure passengers.
To isolate the effects of advance purchase, the itineraries should depart and return the same days of the week at approximately the same times of day. Try to avoid the influence of holidays or other seasonal affects on demand. Use the airlines’ Web sites for all fare information.
In a short paper, describe the airlines chosen, the itinerary, and the fares. A simple table may be the best method for showing the itineraries and fares. Is there clear evidence of price discrimination? Explain how economic theory applies to the differences found in fares between carriers and with next day and advance purchase. A graphical analysis may be beneficial. Your paper should be no more than three pages not including any appendices. Use APA style.
