Defense Travel System (DTS) airline ticket price analysis: do DTS ticket prices differ from other online tickets available for Naval Postgraduate School travelers?

Abstract

Study compares airline tickets purchased through the Defense Travel System (DTS) for Naval Postgraduate School (NPS) travelers to prices for similar tickets available at online travel agent (OTA) and carrier websites. The study's purpose is to determine if prices are significantly different and if savings can be achieved by purchasing tickets from different sources. The study finds that DTS tickets are cheaper than carrier refundable tickets, but more expensive than nonrefundable carrier and OTA tickets. Sensitivity analysis indicates nonrefundable tickets would have to average 1.83 and 2.72 changes per ticket, before itinerary changes offset cost savings for nonrefundable carrier and OTA tickets purchased, respectively. Similarly, 26% and 39% of nonrefundable carrier and OTA tickets would have to be canceled to offset saving. Ultimately, this study can help determine if traveler flexibility achieved by purchasing refundable DTS tickets at negotiated "city-pair" rates from carriers is worth the additional cost. This study shows the flexibility achieved through DTS refundable tickets available in the city-pair program comes with a cost; which is the potential savings that could be achieved by using nonrefundable tickets. Annualized, potential savings at NPS could amount as much as $2 71,007 if there are no itinerary changes or cancellations.