Factors Affecting the Price of Airline Tickets : A case study within regression analysis

Abstract: This report investigates which factors have an impact on the price of airline tickets and what their impact is. This is done by performing a multiple linear regression analysis. The logic is to be able to establish when it is the best time to book and to leave, as to attain the lowest price. Regressions were run per destination, where the results for Bangkok and London were specifically presented, out of six destinations examined. Three of these are within Europe and three are at a longer distance. Based on the results, the concept of finding two corresponding general models was also explored and it was found that this was possible, to some extent. The same factors were found to have an impact on all destinations, although their impacts varied some. These factors were the weekday of the outbound and inbound flight, the departure airport, the month of the outbound flight, the number of days between the booking and the outbound flight, and finally, if there was a holiday during the trip.