Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

New study says to look at more than just price to find the best travel bargains

18.02.2009
If you're looking for bargain air travel, a new study finds that you should look at more than just the ticket price.

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!
Further information:
http://www.ncsu.edu

More articles from Studies and Analyses:

nachricht Do microplastics harbour additional risks by colonization with harmful bacteria?
05.04.2018 | Leibniz-Institut für Ostseeforschung Warnemünde

nachricht Rutgers-led innovation could spur faster, cheaper, nano-based manufacturing
14.02.2018 | Rutgers University

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Spider silk key to new bone-fixing composite

University of Connecticut researchers have created a biodegradable composite made of silk fibers that can be used to repair broken load-bearing bones without the complications sometimes presented by other materials.

Repairing major load-bearing bones such as those in the leg can be a long and uncomfortable process.

Im Focus: Writing and deleting magnets with lasers

Study published in the journal ACS Applied Materials & Interfaces is the outcome of an international effort that included teams from Dresden and Berlin in Germany, and the US.

Scientists at the Helmholtz-Zentrum Dresden-Rossendorf (HZDR) together with colleagues from the Helmholtz-Zentrum Berlin (HZB) and the University of Virginia...

Im Focus: Gamma-ray flashes from plasma filaments

Novel highly efficient and brilliant gamma-ray source: Based on model calculations, physicists of the Max PIanck Institute for Nuclear Physics in Heidelberg propose a novel method for an efficient high-brilliance gamma-ray source. A giant collimated gamma-ray pulse is generated from the interaction of a dense ultra-relativistic electron beam with a thin solid conductor. Energetic gamma-rays are copiously produced as the electron beam splits into filaments while propagating across the conductor. The resulting gamma-ray energy and flux enable novel experiments in nuclear and fundamental physics.

The typical wavelength of light interacting with an object of the microcosm scales with the size of this object. For atoms, this ranges from visible light to...

Im Focus: Basel researchers succeed in cultivating cartilage from stem cells

Stable joint cartilage can be produced from adult stem cells originating from bone marrow. This is made possible by inducing specific molecular processes occurring during embryonic cartilage formation, as researchers from the University and University Hospital of Basel report in the scientific journal PNAS.

Certain mesenchymal stem/stromal cells from the bone marrow of adults are considered extremely promising for skeletal tissue regeneration. These adult stem...

Im Focus: Like a wedge in a hinge

Researchers lay groundwork to tailor drugs for new targets in cancer therapy

In the fight against cancer, scientists are developing new drugs to hit tumor cells at so far unused weak points. Such a “sore spot” is the protein complex...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

Unique scope of UV LED technologies and applications presented in Berlin: ICULTA-2018

12.04.2018 | Event News

IWOLIA: A conference bringing together German Industrie 4.0 and French Industrie du Futur

09.04.2018 | Event News

 
Latest News

Magnetic nano-imaging on a table top

20.04.2018 | Physics and Astronomy

Start of work for the world's largest electric truck

20.04.2018 | Interdisciplinary Research

Atoms may hum a tune from grand cosmic symphony

20.04.2018 | Physics and Astronomy

VideoLinks
Science & Research
Overview of more VideoLinks >>>