Factors Affecting Flight Ticket

Price

Subject: Statistics For Business

Decision

Submitted in partial fulfillment of the requirements for the

degree of Bachelor of Management Studies.

By: Roll. No.

Nandini Udaywal 6557
Riya 6575
Gaurav 6563
Jatin Gaur 6560
Gourav Jain 6536
 ACKNOWLEDGMENT
I would like to express my gratitude towards Mrs.
Riyanka Jain for guiding me throughout the project. I
also feel thankful and express my kind gratitude towards our
Principal MR.RAKESH KUMAR GUPTA for allowing
me to conduct project on Factors Affecting Flight
Ticket Price

The mentioned project was done under the supervision of our

teacher. I thank all participants for their positive support and
guidance. I'm immensely obliged to my friends for elevating
inspiration, encouraging guidance and kind supervision in the
completion of my project.

I feel thankful to the college staff for giving me such a big

opportunity. I ensure that this project was done by me and is
not copied.
 DECLARATION

This is to certify that the material embodied in this present

project is based on our original research work, performed
under the guidance of Mrs. Riyanka Jain, Faculty member at
Department of Management Studies, Ram Lal Anand College.
Our indebtedness to other works, studies and publications
have been duly acknowledged at the relevant places. This
project work has not been submitted in part in full for any
other diploma or degree in this or any other university.

Student Names:
Nandini Udaywal
Riya
Gourav Jain
Gaurav
Jatin Gaur
 Index

1. Introduction

2. Objectives

3. Hypothesis

4. Data Analysis and Interpretation

5. Conclusion

6. Recommandation
 INTRODUCTION

The pricing of flight tickets in the airline industry is a multifaceted

phenomenon influenced by a myriad of factors. As an essential
component of the global travel ecosystem, understanding the
dynamics behind these price variations is crucial for travelers,
industry stakeholders, and policymakers alike. This introduction
delves into the intricate web of influences that shape flight ticket
prices, encompassing economic, operational, and strategic
dimensions.

The delicate balance between supply and demand sets the stage for
pricing strategies, with airlines adjusting fares based on seasonal
fluctuations and market demand. Fuel prices, subject to volatility,
wield significant influence, prompting airlines to navigate the
challenging terrain of cost management. Competition among airlines,
both regional and global, plays a pivotal role, often sparking price
wars or collaborative efforts to maintain profitability.

Operational costs, route characteristics, and the type and age of

aircraft further contribute to the intricate calculus of ticket pricing.
Time and day of travel introduce additional variables, with peak and
off-peak pricing reflecting consumer behavior patterns. Technological
advancements, regulatory frameworks, and the ever-evolving
landscape of loyalty programs add layers of complexity to this
dynamic pricing environment. In essence, unraveling the factors
affecting flight ticket prices is a journey through an interconnected
network of economic, technological, and strategic considerations that
define the modern aviation industry.

Objectives: -
To Prove that Ticket Price of Flight is significantly affected by time duration of the
flight.

A linear regression line equation is written in the form of:

Y = a + bX

X= Time duration of flight

Y= Ticket price of flight

a=y-intercept of the line

b= slope of line
HYPOTHESIS:
Model Hypothesis-
H0: Price of Flight is not significantly affected by Time Duration of flight, if other
factors are held constant.
H1: Price of Flight is significantly affected by Time Duration of flight, if other factors
are held constant.

X: Time duration of flight

H0: Time Duration does not significantly affect the flight price,

if other factors are held constant.

H1: Time duration significantly affects the flight price, if other

factors are held constant.

Sr. no. time duration (x) price (y) x^2 xy
1 2.17 5953 4.7089 12918.01
2 2.33 5953 5.4289 13870.49
3 2.17 5956 4.7089 12924.52
4 2.25 5955 5.0625 13398.75
5 2.33 5955 5.4289 13875.15
6 2.33 5955 5.4289 13875.15
7 2.08 6060 4.3264 12604.8
8 2.17 6060 4.7089 13150.2
9 2.17 5954 4.7089 12920.18
10 2.25 5954 5.0625 13396.5
11 2.25 5954 5.0625 13396.5
12 2.33 5954 5.4289 13872.82
13 2.17 5955 4.7089 12922.35
14 2.17 5955 4.7089 12922.35
15 2.25 5955 5.0625 13398.75
16 2.33 5955 5.4289 13875.15
17 2.08 5955 4.3264 12386.4
18 2.17 5955 4.7089 12922.35
19 12.25 5949 150.0625 72875.25
20 16.33 5949 266.6689 97147.17
21 11.75 5954 138.0625 69959.5
22 14.5 5954 210.25 86333
23 15.67 5954 245.5489 93299.18
24 3.75 5955 14.0625 22331.25
25 2.5 6165 6.25 15412.5
26 2.17 6690 4.7089 14517.3
27 2.17 6585 4.7089 14289.45
28 5.83 8869 33.9889 51706.27
29 2.33 10260 5.4289 23905.8
30 2.17 10470 4.7089 22719.9
31 8 10575 64 84600
32 6 10838 36 65028
33 14.67 12150 215.2089 178240.5
34 16.17 12150 261.4689 196465.5
35 18 12150 324 218700
36 23.17 12150 536.8489 281515.5
37 24.17 12150 584.1889 293665.5
38 8.83 11900 77.9689 105077
39 4.5 12123 20.25 54553.5
Total 254.93 298333 3293.3939 2300972.49
a= 14285.74

b= 215.65

Equation will be:

Y= 14285.74+215.65X

This implies that the ticket price of flight increases 215.65 when time increase by 1 unit.

Regrassion Analysis in Excel:

Conclusion
 Conclusion
a)In our research of determinants of flight price , we
have studied the impact of Time Duration.
We used linear regression analysis to measure this
impact.
H0: Flight ticket price is not significantly affected by
time duration if other factors are held
constant.
H1: Flight ticket price is significantly affected by time
duration if other factors are held Constant.
We concluded that the ticket price of flight increases
215.65 when time increase by 1 unit.
 Recommendation
~More factors could have been search to get a better
regression analysis, and hence a better R square.
~More time could have been devoted for a thorough research
and for a better understanding of the factors.
~Factors could have been studied for over a period of at least
5 years to understand the changes that happened over the
greater stretch of years.
~There are various ways in dealing with autocorrelation.
Some most common are
1. Try to find out if the autocorrelation is pure autocorrelation
and not the result of mis-specification of the model.
Sometimes we observe patterns in residuals because the
model is mis-specified—that is, it has excluded some
important variables—or because its functional form is
incorrect.
2. Include dummy variable in the data.
3. Estimated Generalized Least Squares
4. Include a linear (trend) term if the residuals show a
consistent increasing or decreasing pattern.
5. In large samples, we can use the Newey–West method to
obtain standard errors of OLS estimators that are corrected for
autocorrelation