Featured Research

from universities, journals, and other organizations

Weekends are the best time to buy airline tickets, study finds

Date:
May 22, 2013
Source:
Texas A&M University
Summary:
Researchers studied a historical archive of airline ticket purchases and found the best deals are on the weekend.

While folk wisdom has its place, the "folks" may not be so wise when it comes to shopping for airline tickets, say researchers at Texas A&M University.

"There's been this industry folk wisdom that says Tuesdays and Wednesdays are the best days to purchase airline tickets," says Steven Puller, an associate professor of economics at Texas A&M who specializes in industrial organization. "But we couldn't find any systematic analysis to back that up."

Rather, he says, the weekend is the best time to book airline tickets because airlines are more likely to discount fares on Saturday and Sunday.

In the study "Price Discrimination By Day-Of-Week Of Purchase: Evidence From The U.S. Airline Industry," published in the Journal of Economic Behavior & Organization, Puller and co-author Lisa Taylor, a former Texas A&M graduate student, found that tickets purchased on the weekend were, on average, 5 percent cheaper than similar tickets purchased on weekdays.

"We find that when you control for a large set of factors -- the day-of-week of travel, whether the ticket was refundable, the number of days in advance that the ticket was purchased, how full the flights were, and other factors -- that tickets purchased on the weekends were sold, on average, for a 5 percent discount," Puller explains.

The study further finds this weekend purchase discount is greatest on routes with a mix of both business and leisure customers. There is not much of this type of discount for leisure destinations such as Orlando or Las Vegas, Puller notes.

The researchers suggest, although do not definitively conclude, that this weekend purchase effect reflects a common practice known as "price discrimination."

This happens when the same service is sold at different prices to different buyers, in this case, based on the day of the week that an airline ticket is purchased.

Puller says the airlines try to play the odds when deciding how to price flights.

"Take a route that serves both business and leisure travelers," he explains. "If the business travelers primarily purchase tickets on weekdays, then the typical traveler buying on the weekend is more likely to be a price-sensitive leisure traveler than a business traveler. There is an incentive for the airlines to lower fares on the weekends to try to entice the price-sensitive leisure traveler to buy a ticket."

But how do the airlines know if a particular buyer is travelling for leisure or business? "They don't," Puller contends. "They're playing the odds."

The researchers conducted the study by looking at a historical archive of actual tickets purchased on all major airlines. Puller says the study compared tickets with similar characteristics rather than simply looking at the cheapest fare available.

"If you're a traveler who just wants to get from point A to point B for the cheapest price possible, then these findings may not apply to you," he notes. "But many people do care about these factors."

The researchers only studied round-trip flights with nonstop service. The study did not examine first-class airfare or the holiday travel periods around Thanksgiving, Christmas and New Year's.

Puller says these results could have implications for other industries that have the ability to change prices daily based on the types of customers who purchase on a specific day. "The software systems that are used in airline pricing are used in other industries such as cruises, hotels, car rentals," he explains. "We've only analyzed airline pricing, but I wouldn't be surprised if similar pricing practices are used in these other industries as well."


Story Source:

The above story is based on materials provided by Texas A&M University. Note: Materials may be edited for content and length.


Cite This Page:

Texas A&M University. "Weekends are the best time to buy airline tickets, study finds." ScienceDaily. ScienceDaily, 22 May 2013. <www.sciencedaily.com/releases/2013/05/130522160301.htm>.
Texas A&M University. (2013, May 22). Weekends are the best time to buy airline tickets, study finds. ScienceDaily. Retrieved October 22, 2014 from www.sciencedaily.com/releases/2013/05/130522160301.htm
Texas A&M University. "Weekends are the best time to buy airline tickets, study finds." ScienceDaily. www.sciencedaily.com/releases/2013/05/130522160301.htm (accessed October 22, 2014).

Share This



More Mind & Brain News

Wednesday, October 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

Newsy (Oct. 21, 2014) A medical team has for the first time given a man the ability to walk again after transplanting cells from his brain onto his severed spinal cord. Video provided by Newsy
Powered by NewsLook.com
Portable Breathalyzer Gets You Home Safely

Portable Breathalyzer Gets You Home Safely

Buzz60 (Oct. 21, 2014) Breeze, a portable breathalyzer, gets you home safely by instantly showing your blood alcohol content, and with one tap, lets you call an Uber, a cab or a friend from your contact list to pick you up. Sean Dowling (@SeanDowlingTV) has the details. Video provided by Buzz60
Powered by NewsLook.com
Your Birth Season Might Determine Your Temperament

Your Birth Season Might Determine Your Temperament

Newsy (Oct. 20, 2014) A new study says the season you're born in can determine your temperament — and one season has a surprising outcome. Video provided by Newsy
Powered by NewsLook.com
Movies Might Desensitize Violence For Parents, Not Just Kids

Movies Might Desensitize Violence For Parents, Not Just Kids

Newsy (Oct. 20, 2014) A study suggests that parents become desensitized to violent movies as well as children, which leads them to allow their kids to view violent films. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins