Instead, a researcher at North Carolina State University who co-authored the study says that consumers need to consider the quality of the flights being offered in order to get the best "price efficiency."
The study compared flights and "price efficiencies" from several Internet travel agent Web sites. Because each site offers widely different flights – some flights might have lengthy layovers or multiple connections -it is unwise to simply compare prices. Instead, author Dr. Sangkil Moon, an assistant professor of marketing at NC State, explains that researchers must account for both price and the quality of the flight. Dr. Wagner Kamakura of Duke University and Moon used a statistical model named the stochastic frontier model to account for the value of individual components of a flight – such as a direct flight, or a convenient departure time – and to estimate the theoretical lowest price of each flight.
The researchers then compared the theoretical price to the actual market price of the flight, or the price that online retailers are charging for the flight. The ratio of the theoretical lowest price and the market price is called the price efficiency.
In other words, the flight with the best price efficiency is the best deal: consumers are getting the most quality for their buck given a number of alternative flight tickets. However, Moon concedes that the procedure used in their research is not readily available to most average consumers because of its technical complexities. But Moon says the new study does give consumers some help in finding the best travel deals.
For one thing, Moon notes that none of the major Internet travel sites consistently provided the best price efficiency – so shopping around is important. Moon says savvy customers should look at a variety of tickets that differ in price and quality rather than trying to find the cheapest flights first and then looking at quality as a secondary factor. Consumers that focus exclusively on price may pay less to get from point A to point B, Moon says, but they will probably have a worse quality flight – and that could mean multiple connecting flights, lengthy layovers and/or red-eye flight times.
In addition, Moon says, consumers who are Internet savvy about identifying quality flights can target better value flights by using travel Web sites that display only the outbound flights first and then display multiple inbound flights corresponding to the selected outbound flight on a subsequent page. Moon explains that this allows the retailer greater flexibility in terms of the variety of flights it can offer. Rather than offering round trips that simultaneously show one departure time and one return time on the same screen, retailers show multiple return times for each departure time.
Matt Shipman | EurekAlert!
Real-time feedback helps save energy and water
08.02.2017 | Otto-Friedrich-Universität Bamberg
The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung
In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport
Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...
The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.
The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...
Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...
Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".
Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...
13.02.2017 | Event News
10.02.2017 | Event News
09.02.2017 | Event News
23.02.2017 | Physics and Astronomy
23.02.2017 | Earth Sciences
23.02.2017 | Life Sciences