Weekend effect in airfare pricing

Internet traffic during weekends is lighter than at weekdays, allowing airlines to adopt a distinctive pricing policy during the weekend. By analyzing the daily airfares for 1000 US domestic routes, this study tests whether a weekend effect exists in the level and dispersion of airfares. It finds a strong weekend effect for airfare dispersion, but not for price level. This suggests that different arrival timing of online consumers during the weekdays motivate airlines to adopt a distinctive pricing mechanism during weekends, by offering occasional discounts while maintaining the same fare level on average.