Demand Elasticity for Airport Services

This bachelor thesis deals with the issue of demand elasticity for airport services, with a specific focus on Václav Havel Airport Prague. The aim of the thesis is to assess how sensitively airlines and passengers react to changes in airport charges and to what extent this fact is reflected in the airport's pricing policy. The thesis is divided into theoretical and practical parts. The theoretical framework explains the concept of demand elasticity and the key factors influencing it, both in general and in the context of air transport. It also describes airport demand management strategies and pricing mechanisms, including an overview of regulatory approaches. The practical part analyzes the structure and development of airport charges at Václav Havel Airport Prague, compares them with competing airports in Berlin, Vienna and Munich, and evaluates the impact on airline behavior. The research includes a structured interview with a Prague Airport representative responsible for economic pricing decisions, providing valuable insight into practical pricing processes. The results show that Prague Airport bases its pricing mainly on cost considerations and financial sustainability, while partially responding to demand sensitivity through benchmarking and incentive programs. However, demand elasticity is not yet systematically quantified, which may limit more targeted pricing adjustments. Based on the analysis, the thesis proposes the introduction of seasonal charge differentiation, the development of a quantitative demand elasticity model, and the consideration of dynamic pricing elements. These tools could contribute to more effective demand management and increase the competitiveness of Václav Havel Airport Prague within the European aviation market.