easyJet® pricing strategy: Should low-fare airlines offer last-minute deals? Quantitative Marketing and

We are grateful to Stellios Haji-Ioannou, John Stephenson, and Ben Meyer at easyJet for making the data available for analysis and to Asim Ansari, Eyal Biyalogorsky, Fabio Caldieraro, Raghuram Iyengar, Don Lehmann, Olivier Toubia, Rajeev Tyagi, Garrett van Ryzin, Peter Rossi, and two anonymous reviewers for their thoughtful comments and suggestions. The authors would also like to thank Hernan Bruno for his excellent research assistance. easyJet ® is a registered trademark. easyJet ® Pricing Strategy: Should Low-Fare Airlines Offer Last-Minute Deals? easyJet, one of Europe’s most successful low-cost short-haul airlines, has a simple pricing structure. For a given flight, all prices are quoted one-way, a single price prevails at any point, and, in general, prices are low early on and increase as the departure date approaches. We observe from these policies and from the empirical section of this paper that easyJet employs three distinct strategies: 1) it does not offer last-minute deals, 2) it offers a single class and let