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1 Airline Passengers ’ Online Search and Purchase Behavior: New Insights from an Interactive Price Response Model Managerial Insight Statement
"... In many industries, the internet has increased price transparency and led to fierce price compe-tition. We propose a new business model that leverages the strength of the internet- specifically the ability to interact directly with its consumers- to customize prices for individual consumers in ways ..."
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that do not trigger price responses by the competition. A web-based Interactive Pricing Response (IPR) system was developed for Freedom Air, a former low cost subsidiary of Air New Zealand. By targeting highly time-flexible travelers, the IPR system provides a mechanism by which airlines can generate
