Modeling the choice of an airline itinerary and fare product using booking and seat availability data

Over the last ten years, the rapid growth of low-cost airlines and the development of web-based distribution of airline tickets have transformed the competitive environment in the airline industry worldwide. The relaxation of fares rules by low-cost airlines has disrupted the pricing and revenue management models of large network airlines. A better understanding of passenger choice behavior is now required to support the development of new strategies to compete more effectively in the current marketplace. In order to avoid the risk of bias associated with stated preference data, we focus in this research on how to develop a model of airline passenger choice based on booking data. Previous studies based on booking data have been limited to th