A Time Series Analysis of Airline Pricing Behavior Case Study Jakarta (CGK) - Denpasar (DPS) Market

Abstract

Since the aircraft grew into the most popular transportation used by tourists. Price competition between airlines becomes a very interesting issue. This study examines the behavior of airfare from Jakarta (CGK) to Denpasar (DPS) through online media (official website). Data is collected from 6 airline websites such as Garuda Indonesia, Air Asia, Citilink, Lion Air, Sriwijaya and Batik Air for 25 days prior to departure date. This duration is compounded because of the characteristics of Indonesian tourists (domestic) who generally do the planning (reservation) travel for less than one month. The selected departure date is 9 to 13 May, where the date is a long holiday (peak season). Observations and data recording are done consistently 4 times a day at 6 am 12 noon, 6 pm and 12 pm on all departure hours of 9 to 13 May. The data is then calculated to find the average and compare on each day. The study found that airline ticket prices tend to start declining since 5 or 4 days before departure and will continue to decrease in price until the day of departure. But the decline in ticket prices is also accompanied by a decrease in ticket availability. This information is certainly very useful for tourists to determine the timing of booking air tickets before traveling.