Deregulation of markets for air travel has led to increasing use of price based competition. However, comparison by buyers between competing airline offers is often difficult, with prices presented in a variety of inclusive and exclusive formats. The use of `99 ending' prices further seeks to undermine the capability of buyers to make rational decisions. This paper reports on a simulation study of buyers of short-haul airline tickets, and the choices made in response to four airline service/price offers. Just over three-quarters of respondents acted rationally by choosing an offer that provided the lowest price and/or highest benefits, consistent with respondents' expressed preferences. However, there was evidence of irrationality in the remaining respondents, who made choices that were inconsistent with their states preferences. Furthermore, there was a significant difference in respondents' choice between an offer priced at £61 99, and an otherwise identical offer priced at £62. The results of this study inform current debate about the need for clear and consistent pricing of airline tickets.
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