Airline Industry
Parv Patni
December 22, 2017
Mini Project to explain the factors for difference in price between an economy ticket and a premium-economy airline ticket
getwd()## [1] "C:/Users/parvp/Desktop/data analytics internship"airline.df<-read.csv(paste("SixAirlinesDataV2.csv",sep=""))
head(airline.df)## Airline Aircraft FlightDuration TravelMonth IsInternational SeatsEconomy
## 1 British Boeing 12.25 Jul International 122
## 2 British Boeing 12.25 Aug International 122
## 3 British Boeing 12.25 Sep International 122
## 4 British Boeing 12.25 Oct International 122
## 5 British Boeing 8.16 Aug International 122
## 6 British Boeing 8.16 Sep International 122
## SeatsPremium PitchEconomy PitchPremium WidthEconomy WidthPremium
## 1 40 31 38 18 19
## 2 40 31 38 18 19
## 3 40 31 38 18 19
## 4 40 31 38 18 19
## 5 40 31 38 18 19
## 6 40 31 38 18 19
## PriceEconomy PricePremium PriceRelative SeatsTotal PitchDifference
## 1 2707 3725 0.38 162 7
## 2 2707 3725 0.38 162 7
## 3 2707 3725 0.38 162 7
## 4 2707 3725 0.38 162 7
## 5 1793 2999 0.67 162 7
## 6 1793 2999 0.67 162 7
## WidthDifference PercentPremiumSeats
## 1 1 24.69
## 2 1 24.69
## 3 1 24.69
## 4 1 24.69
## 5 1 24.69
## 6 1 24.69library(psych)## Warning: package 'psych' was built under R version 3.4.3describe(airline.df)## vars n mean sd median trimmed mad min
## Airline* 1 458 3.01 1.65 2.00 2.89 1.48 1.00
## Aircraft* 2 458 1.67 0.47 2.00 1.71 0.00 1.00
## FlightDuration 3 458 7.58 3.54 7.79 7.57 4.81 1.25
## TravelMonth* 4 458 2.56 1.17 3.00 2.58 1.48 1.00
## IsInternational* 5 458 1.91 0.28 2.00 2.00 0.00 1.00
## SeatsEconomy 6 458 202.31 76.37 185.00 194.64 85.99 78.00
## SeatsPremium 7 458 33.65 13.26 36.00 33.35 11.86 8.00
## PitchEconomy 8 458 31.22 0.66 31.00 31.26 0.00 30.00
## PitchPremium 9 458 37.91 1.31 38.00 38.05 0.00 34.00
## WidthEconomy 10 458 17.84 0.56 18.00 17.81 0.00 17.00
## WidthPremium 11 458 19.47 1.10 19.00 19.53 0.00 17.00
## PriceEconomy 12 458 1327.08 988.27 1242.00 1244.40 1159.39 65.00
## PricePremium 13 458 1845.26 1288.14 1737.00 1799.05 1845.84 86.00
## PriceRelative 14 458 0.49 0.45 0.36 0.42 0.41 0.02
## SeatsTotal 15 458 235.96 85.29 227.00 228.73 90.44 98.00
## PitchDifference 16 458 6.69 1.76 7.00 6.76 0.00 2.00
## WidthDifference 17 458 1.63 1.19 1.00 1.53 0.00 0.00
## PercentPremiumSeats 18 458 14.65 4.84 13.21 14.31 2.68 4.71
## max range skew kurtosis se
## Airline* 6.00 5.00 0.61 -0.95 0.08
## Aircraft* 2.00 1.00 -0.72 -1.48 0.02
## FlightDuration 14.66 13.41 -0.07 -1.12 0.17
## TravelMonth* 4.00 3.00 -0.14 -1.46 0.05
## IsInternational* 2.00 1.00 -2.91 6.50 0.01
## SeatsEconomy 389.00 311.00 0.72 -0.36 3.57
## SeatsPremium 66.00 58.00 0.23 -0.46 0.62
## PitchEconomy 33.00 3.00 -0.03 -0.35 0.03
## PitchPremium 40.00 6.00 -1.51 3.52 0.06
## WidthEconomy 19.00 2.00 -0.04 -0.08 0.03
## WidthPremium 21.00 4.00 -0.08 -0.31 0.05
## PriceEconomy 3593.00 3528.00 0.51 -0.88 46.18
## PricePremium 7414.00 7328.00 0.50 0.43 60.19
## PriceRelative 1.89 1.87 1.17 0.72 0.02
## SeatsTotal 441.00 343.00 0.70 -0.53 3.99
## PitchDifference 10.00 8.00 -0.54 1.78 0.08
## WidthDifference 4.00 4.00 0.84 -0.53 0.06
## PercentPremiumSeats 24.69 19.98 0.71 0.28 0.23Mean Pricing for economy and premium in different airlines.
aggregate(x = airline.df[c("PriceEconomy","PricePremium")],by=list(Airline=airline.df$Airline),FUN = mean)## Airline PriceEconomy PricePremium
## 1 AirFrance 2769.7838 3065.2162
## 2 British 1293.4800 1937.0286
## 3 Delta 560.9348 684.6739
## 4 Jet 276.1639 483.3607
## 5 Singapore 860.2500 1239.9250
## 6 Virgin 1603.5323 2721.6935boxplot(airline.df$PriceEconomy~airline.df$Airline, main="Airline Vs PriceEconomy",col = c("lightgreen","lightblue","peachpuff","gray","yellow","cyan"))
boxplot(airline.df$PricePremium~airline.df$Airline, main="Airline Vs PricePremium",col = c("lightgreen","lightblue","peachpuff","gray","yellow","cyan"))
boxplot(airline.df$PriceEconomy,airline.df$PricePremium,ylab="Prices", main="Economy vs Premium Pricing", col=c("yellow" , "lightgreen"), names=c("Economy","Premium"))
par(mfrow=c(1,2))
with(airline.df,plot(Aircraft,PriceEconomy,col=c("peachpuff","khaki"),main="Aircraft vs Economy Pricing"))
with(airline.df,plot(Aircraft,PricePremium,col=c("peachpuff","khaki"), main="Aircraft vs Premium Pricing"))
plot(airline.df$Airline, airline.df$SeatsEconomy, main="Airline vs Seats in Economy Class",col="sienna1")
plot(airline.df$Airline, airline.df$SeatsPremium, main="Airline vs Seats in Premium Class",col="sienna1")
plot(airline.df$IsInternational,main = "Number of Domestic vs International Flights",col="khaki")
Price variation of economy with flight duration
plot(airline.df$FlightDuration,airline.df$PriceEconomy,
main="Flight duration vs Economy Price",
xlab="Flight duration",
ylab = "Economy Price")
abline(lm(airline.df$PriceEconomy~airline.df$FlightDuration),
col="red")
Price variation of premium with flight duration
plot(airline.df$FlightDuration,airline.df$PricePremium,
main="Flight duration vs Premium Price",
xlab="flight duration",
ylab="Premium Price")
abline(lm(airline.df$PricePremium~airline.df$FlightDuration),
col="blue")
Increase is gradual for both classes along with the Duration of flight. However, Rate of increase for economy is more compared to premium.
attach(airline.df)
plot(WidthDifference,PriceRelative,main = "Analysis of width of Seats in Difference in price of class")
abline(lm(PriceRelative~WidthDifference),col="red")
plot(PitchDifference,PriceRelative,main = "Analysis of Pitch of Seats in Difference in price of class")
abline(lm(PriceRelative~PitchDifference),col="red")
library(corrgram)## Warning: package 'corrgram' was built under R version 3.4.3corrgram(airline.df, order=TRUE, lower.panel=panel.shade,
upper.panel=panel.pie, text.panel=panel.txt,
main="Corrgram of airline dataset")
Null Hypothesis : There is no significant difference between the price of tickets in economy class and premium economy class
t.test(PriceEconomy,PricePremium,var.equal=TRUE, paired=FALSE)##
## Two Sample t-test
##
## data: PriceEconomy and PricePremium
## t = -6.8304, df = 914, p-value = 1.544e-11
## alternative hypothesis: true difference in means is not equal to 0
## 95 percent confidence interval:
## -667.0699 -369.2926
## sample estimates:
## mean of x mean of y
## 1327.076 1845.258We have a p-value = 1.544e-11 which is less than 0.05, suggesting that there is a significant difference between PriceEconomy and PricePremium. Hence we reject our null hypothesis.
Regression model for showing the price differnce with respect to pitch difference and width difference
fit <- lm(PriceRelative ~ PitchDifference + WidthDifference + FlightDuration + PercentPremiumSeats, data = airline.df)
summary(fit)##
## Call:
## lm(formula = PriceRelative ~ PitchDifference + WidthDifference +
## FlightDuration + PercentPremiumSeats, data = airline.df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -0.79439 -0.29424 -0.03427 0.16197 1.13688
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) -0.179033 0.101492 -1.764 0.07840 .
## PitchDifference 0.059311 0.015921 3.725 0.00022 ***
## WidthDifference 0.118140 0.024555 4.811 2.05e-06 ***
## FlightDuration 0.021707 0.005085 4.269 2.39e-05 ***
## PercentPremiumSeats -0.005999 0.003898 -1.539 0.12454
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 0.381 on 453 degrees of freedom
## Multiple R-squared: 0.2913, Adjusted R-squared: 0.285
## F-statistic: 46.54 on 4 and 453 DF, p-value: < 2.2e-16PriceRelative = -0.179033 + (0.059311)x(PitchDifference) + (0.118140)x(WidthDifference) + (0.021707)x(FlightDuration)
There is a significant relation of width difference, pitch difference and flight duration on difference in the price of tickets as their p-values <0.05, while PercentPremiumSeats contributes negatively with p-value>0.05