A six-month research project on price volatility in air transportation was concluded recently at the Luxembourg Center for Logistics and Supply Chain Management (LCL). The research was carried out by visiting PhD candidate Chiara Morlotti for her PhD thesis, and was supervised by LCL’s Professor Benny Martin.
The research looked at the impact of price volatility on the demand of revenue-managed goods. As customers become increasingly well informed about price variations through the internet and online purchases, their purchasing behaviour changes. The study shows that price volatility generates uncertainties, thereby decreasing customers’ price sensitivity.
More information on the air transportation research project is available here.