Factors Affecting the Conversion Rate in the Flight Comparison Industry: A Logistic Regression Approach

Abstract: Using logistic regression, we aim to construct a model to examine the factors that are most influential in affecting user behavior on the flight comparison site flygresor.se. The factors examined were number of adults, number of children, number of stops on the inbound trip, number of stops on the outbound trip, number of days between the search date and the departure date and number of search results displayed for the user. The data sample, collected during a one-week period, was taken from Flygresor and consisted of trips to or from Sweden, made within Europe, excluding Nordic countries, and made more than six days before departure. To find the variables which best explain the user behavior, variable selection methods were used along with hypothesis testing. Also, multicollinearity analysis and residual analysis were performed to evaluate the final model. The result showed that the factor number of children had no significant impact on the conversion rate, while the remaining factors had a high impact. The final model has a high predictive ability on the user's propensity to select a certain flight.