Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Southwest Airlines' last-minute fares not always the best deal, economist finds

03.05.2007
Carriers may take advantage of time-pressed travelers who bypass comparison tools

It may pay off to spend a little extra time shopping online for that last-minute airfare, according to a UC Irvine economist.

In a survey of ticket prices for 238 routes, economist Volodymyr Bilotkach found that the cheapest last-minute fares on Orbitz.com averaged $34.46 – 8.5 percent – less than comparable deals available through Southwest Airlines, which is known for its low prices.

Southwest sells most of its tickets online but does not make its fares available via major online travel agents such as Orbtiz or Travelocity, which aggregate tickets from major airlines and allow customers to compare prices.

“The research suggests that Southwest exploits its low-cost reputation with last-minute travelers who feel they don’t have time to shop around, even if it’s just a few extra minutes,” said Bilotkach, assistant professor of economics.

More carriers are encouraging customers to book directly through their own Web sites by advertising Web-only discounts, Bilotkach says. But this study suggests that, like Southwest, other airlines may ultimately take advantage of customers who bypass comparisons by going straight to their favorite carrier’s Web site.

“I’m concerned that this force may drive up airfares,” he said.

For his study, Bilotkach compared flight costs at nine airports with substantial Southwest Airlines presence. He recorded quotes for fares between the same cities with the same travel dates, checking the fares one month in advance of the travel date and again at the last minute – one or two days before the flight. With his research assistant, he obtained the fare quotes from Southwest and Orbitz at nearly the same time.

Overall, Southwest’s lowest advance purchase fares averaged 2.7 percent below the cheapest tickets found on Orbitz for a comparable flight. These findings support previous research showing that Southwest tends to offer better deals and helps keep prices lower among its competitors.

But for last-minute tickets, the average cost was 8.5 percent more expensive on Southwest. About half of the time, a cheaper ticket could be found through Orbitz.

“When it comes to last-minute fares, Southwest’s prices are about normal,” said Bilotkach. “It’s important for consumers to remember that just because an airline is known as the low-cost leader doesn’t mean it’s always got the best deal – especially for last-minute flights.”

The difference between Southwest’s fares and the cheapest fare found on Orbitz was greatest for long-haul flights and also slightly greater for North-South routes, such as a round-trip from Chicago to Florida.

Bilotkach continues to research online reservation services like Orbitz, Expedia and Travelocity. He is comparing their prices to see if one consistently offers cheaper tickets.

Lisa Nguyen assisted with the research for Bilotkach’s study, which is available as a working paper at http://www.socsci.uci.edu/~vbilotka/.

About the University of California, Irvine: The University of California, Irvine is a top-ranked university dedicated to research, scholarship and community service. Founded in 1965, UCI is among the fastest-growing University of California campuses, with more than 25,000 undergraduate and graduate students and about 1,800 faculty members. The second-largest employer in dynamic Orange County, UCI contributes an annual economic impact of $3.7 billion. For more UCI news, visit www.today.uci.edu.

Television: UCI has a broadcast studio available for live or taped interviews. For more information, visit www.today.uci.edu/broadcast.

News Radio: UCI maintains on campus an ISDN line for conducting interviews with its faculty and experts. The use of this line is available free-of-charge to radio news programs/stations who wish to interview UCI faculty and experts. Use of the ISDN line is subject to availability and approval by the university.

Christine Byrd | EurekAlert!
Further information:
http://www.today.uci.edu
http://www.today.uci.edu/broadcast
http://www.socsci.uci.edu/~vbilotka/

More articles from Business and Finance:

nachricht Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

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

Im Focus: Safe glide at total engine failure with ELA-inside

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

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”...

Im Focus: Dresdner scientists print tomorrow’s world

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...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

New technology offers fast peptide synthesis

28.02.2017 | Life Sciences

WSU research advances energy savings for oil, gas industries

28.02.2017 | Power and Electrical Engineering

Who can find the fish that makes the best sound?

28.02.2017 | Information Technology

VideoLinks
B2B-VideoLinks
More VideoLinks >>>