Analysis of the Form and Impact of Airfare Discrimination in Indonesia
Article Sidebar
Main Article Content
Abstract
Research aim : To analyze the forms of price discrimination in the airline industry in Indonesia and its impact on consumers and business actors.
Design/Methode/Approach : The research method used is a qualitative approach with a descriptive method through literature studies from academic journals, policy reports, and official government publications.
Research Finding : Based on the results of data analysis, the research findings are (1) various forms of price discrimination exist, including based on time of purchase, class of service, location of purchase, payment method, and customer loyalty programs, (2) the impacts on consumers include price uncertainty, unfair access to transportation, and potential price exploitation through price adjustment algorithms, (3) the impacts on businesses include revenue optimization but also increased regulatory risks and decreased customer loyalty if perceived as unfair.
Theoretical contribution/Originality : This paper highlights how price discrimination strategies in the airline industry impact the balance between business optimization and consumer protection in the Indonesian context.
Practitionel/Policy implication : More transparent and fair policies are needed in the implementation of pricing strategies to protect consumer rights without hindering fair business competition in the aviation sector.
Research limitation : Limited to literature studies without direct empirical analysis of airline pricing behavior in Indonesia.
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
References
[1] Abdella, J. A., Zaki, N. M., Shuaib, K., & Khan, F. (2021). Airline ticket price and demand prediction: A survey. Journal of King Saud University - Computer and Information Sciences, 33(4), 375-391. https://doi.org/10.1016/J.JKSUCI.2019.02.001
[2] Agungnoe. (2024, August 6). UGM Transportation Economist Says About the Expensive Airline Tickets - Universitas Gadjah Mada. Ugm.Ac.Id. https://ugm.ac.id/id/berita/kata-ahli-ekonomi-transportasi-ugm-soal-mahalnya-tiket-pesawat/
[3] An, B., Chen, H., Park, N., & Subrahmanian, V. S. (2016). MAP: Frequency-based maximization of airline profits based on an ensemble forecasting approach. Proceedings of the ACM SIGKDD International Conference on Knowledge Discovery and Data Mining, 13-17-August-2016, 421-430. https://doi.org/10.1145/2939672.2939726
[4] Ananta, Y. (2019, June 17). Airplane ticket prices rise because the cartel is alive again. Cnbcindonesia.Com. https://www.cnbcindonesia.com/news/20190617064711-4-78636/harga-tiket-pesawat-naik-gara-gara-kartel-hidup-lagi
[5] Auliya, E., & Frisnawati, E. (2024). The Effect of Airplane Ticket Price Increases on Wings Air Passenger Purchase Interest at Rahadi Oesman Ketapang Airport. Journal of Law, Education and Business, 2(2), 1614-1625. https://doi.org/10.57235/JLEB.V2I2.3222
[6] Chusnida, N. L., & Muliani, A. (2024). Consumer Protection Due to Unfair Business Competition on Airplane Ticket Price Increases. Journal of Business Competition, 4(2), 125-133. https://doi.org/10.55869/KPPU.V4I2.120
[7] CNNIndonesia. (2024, July 19). Why Airplane Tickets are More Expensive if Booked at the Last Minute. CNNIndonesia. https://www.cnnindonesia.com/gaya-hidup/20240719172417-269-1123369/penyebab-tiket-pesawat-lebih-mahal-jika-dipesan-di-menit-menit-akhir
[8] Deny, S. (2019, June 18). Entry of foreign airlines will not lower airfares - Bisnis Liputan6.com. Liputan6.Com. https://www.liputan6.com/bisnis/read/3992067/masuknya-maskapai-asing-tak-akan-turunkan-harga-tiket-pesawat
[9] Fastercapital. (2024, June 4). Loyalty pricing: Dual Pricing and the Perks of Customer Loyalty - FasterCapital. Faster Capital.Com. https://fastercapital-com.translate.goog/content/Loyalty-pricing--Dual-Pricing-and-the-Perks-of-Customer-Loyalty.html?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=tc
[10] Hariyanti, D. (2024, November 8). Interesting Facts Behind Varying Airplane Ticket Prices - Katadata.co.id Industry. Katadata.Co.Id. https://katadata.co.id/berita/industri/672db41b2b606/fakta-menarik-di-balik-harga-tiket-pesawat-yang-bervariasi
[11] Hasanah, I. A. W., & Iriani, S. S. (2024). The Effect of Special Fare Ticket Prices, Officer Service Quality, and Station Physical Facilities on Decisions to Use Railway Transportation. Journal of Management Science, 211-226. https://doi.org/10.26740/JIM.V12N2.P211-226
[12] He, Q. (2016). The effect of competition on price discrimination in the international flight market between the U.S. and China. Economics of Transportation, 7-8, 1-23. https://doi.org/10.1016/j.ecotra.2016.10.001
[13] Hemmati, M., Fatemi Ghomi, S. M. T., & Sajadieh, M. S. (2023). Separate and bundling selling strategies for complementary products in a participative pricing mechanism. Computers & Industrial Engineering, 177, 109018. https://doi.org/10.1016/J.CIE.2023.109018
[14] Hidayat, M., Aisyah, L., & Komarudin, P. (2019). Analysis of Airplane Ticket Price Fluctualization with the Qiyas Method. Politicas Science. https://doi.org/10.18592/AT-TARADHI.V10I2.3400
[15] Jisman, J. (2022). Public Unrest Regarding the Expensive Domestic Flight Tickets (Case Study of the Increase in Airplane Ticket Prices in 2019). ADMINISTRATOR Journal, 4 (2), 75-86. https://doi.org/10.55100/ADMINISTRATOR.V4I2.49
[16] Kumparan.com. (2023, April 6). Information on Airplane Class Differences and Facilities that Need to Be Understood | kumparan.com. Kumaran.Com. https://kumparan.com/jendela-dunia/informasi-perbedaan-kelas-pesawat-dan-fasilitasnya-yang-perlu-dipahami-209qizGeVan/3
[17] Lubis, F. W., & Simbolon, M. (2019). USU STUDENTS' OPINIONS ON THE INCREASE IN AIRPLANE TICKET PRICES. KOMUNIKA, 15(1). https://doi.org/10.32734/KOMUNIKA.V15I1.5746
[18] Malighetti, P., Paleari, S., & Redondi, R. (2009). Pricing strategies of low-cost airlines: The Ryanair case study. Journal of Air Transport Management, 15(4), 195-203. https://doi.org/10.1016/j.jairtraman.2008.09.017
[19] Nadhiroh, F. R. (2024, October 5). Types of Airplane Classes and Their Supporting Facilities. Idntimes.Com. https://www.idntimes.com/travel/tips/fatma-roisatin-nadhiroh/tipe-kelas-pesawat-dan-fasilitas-pendukungnya-c1c2
[20] Nafisah, A. (2024, May 28). The High Price of Domestic Airline Tickets in Indonesia: An In-depth Review Page 1 - Kompasiana.com. Kompasiana.Com. https://www.kompasiana.com/awfanafisah8449/6655b1d434777c524f048e04/tingginya-harga-tiket-pesawat-domestik-di-indonesia-sebuah-tinjauan-mendalam
[21] Natalia, A., Affan, N., & Diyanti, F. (2020). ANALYSIS OF HOTEL ROOM RATE DETERMINATION AT VIOLAND GARDEN HOTEL IN SAMARINDA. https://doi.org/10.29264/JIAM.V4I3.5068
[22] Oktavia, Y., Barkah, C. S., Herawaty, T., & Auliana, L. (2021). ALTERNATIVE PRICING STRATEGIES WITH A PRICE DISCRIMINATION APPROACH TO INCREASE SALES VOLUME OF YOUR SEMANIS CAFÉ. Journal of Applied Business, 5(2), 233-248. https://doi.org/10.24123/JBT.V5I2.4557
[23] Paramita, E. L., & Wahyuningtyas, H. F. (2020). Application of Price Discrimination Strategy in Agricultural Products (Case Study on Ornamental Plant Sellers in Dukuh Hamlet, Kopeng Village, Kec. Getasan, Semarang Regency). Journal of Competitive Marketing, 3(3), 1. https://doi.org/10.32493/JPKPK.V3I3.4663
[24] Petting, T. (2017, February 5). Airline price discrimination - Economic Help. Economicshelp-Org. https://www-economicshelp-org.translate.goog/blog/7767/business/airline-price-discrimination/?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=tc
[25] Pratama, I. (2020). PRICE FIXING OF AIRPLANE TICKET PRICES BASED ON MINISTER OF TRANSPORTATION DECREE NO. 106 OF 2019 CONCERNING THE UPPER LIMIT TARIFF FOR ECONOMY CLASS PASSENGER SERVICES FOR DOMESTIC SCHEDULED COMMERCIAL AIR TRANSPORTATION IN TERMS OF LAW NO. 5 OF 1999 CONCERNING THE PROHIBITION OF MONOPOLISTIC PRACTICES. 5 OF 1999 CONCERNING THE PROHIBITION OF MONOPO PRACTICES. Political Science. https://doi.org/10.37081/ED.V8I1.1514
[26] Sari, A. N., & Wakhidah, E. N. (2022). THE EFFECT OF PAID BAGGAGE AND INCREASED AIRPLANE TICKET PRICES ON LION AIRLINE PASSENGER INTEREST AT SEMARANG AHMAD YANI AIRPORT. Consilium: Education and Counseling Journal, 2(2), 70. https://doi.org/10.36841/CONSILIUM.V2I2.2110
[27[28] (2023, November 13). Understanding More about Flight Routes and Airplane Transit. STTKD.Ac.Id. https://sttkd.ac.id/berita/memahami-lebih-jauh-rute-penerbangan-dan-transit-pesawat/
[29] Sugesti, H., & Deva Aurellea, K. (2025). THE EFFECT OF PRICE ON THE DECISION TO USE INDRIVE ONLINE TRANSPORTATION SERVICES (CASE STUDY: STUDENTS OF THE INTERNATIONAL UNIVERSITY OF LOGISTICS AND BUSINESS). Land Journal, 6 (1), 193-205. https://doi.org/10.47491/LANDJOURNAL.V6I1.4030
[30] Sunur, C. P., & Sunur, C. P. (2022). Price Discrimination of PT Garuda Indonesia Regarding the Selection of Umrah Ticket Sales Partners from Medina - Jeddah (Study of Decision Number 06/KPPU-L/2020). Journal Justitia Journal of Legal Sciences and Humanities, 9(4), 1940-1956. https://doi.org/10.31604/justitia.v9i4.1940-1956
[31] Suryadi, S. (2019). Impact of Air Ticket Price Increase and Forecasting Air Transportation Growth. Warta Penelitian Perhubungan, 26(8), 433. https://doi.org/10.25104/WARLIT.V26I8.933
[32] Szopiński, T. S., & Nowacki, R. (2015). The influence of purchase date and flight duration over the dispersion of airline ticket prices. Contemporary Economics, 9(3), 353-366. https://doi.org/10.5709/CE.1897-9254.174
[33] [34] Wardiyanta. (2003). Introduction to Tourism Economics: Vol. I. Student Library. https://eprints.uad.ac.id/54181/1/PENGANTAR%20EKONOMI%20PARIWISATA%20%28buku%20referensi%29.pdf
[35] Wibowo, A. (2021). Retail Business Management (J. T. Santoso, Ed.). Prima Agus Teknik Foundation. https://digilib.stekom.ac.id/assets/dokumen/ebook/feb_BMqGPN_oXAM4jY-UyUTd7qiV7Nw6crRegDGk8jmBlwHVpdoF-HLT_1681446015.pdf
[36] Yetti, Y., Natassa Winstar, Y., & Haq, M. (2021). Perspective of Business Competition Law on Discrimination in Sales Price of Goods in Kaget Market and Traditional Market. Recital Review, 3(2), 175-189. https://doi.org/10.22437/RR.V3I2.12388