Binary classification for predicting propensity to buy flight tickets. : A study on whether binary classification can be used to predict Scandinavian Airlines customers’ propensity to buy a flight ticket within the next seven days.

Sammanfattning: A customers propensity to buy a certain product is a widely researched field and is applied in multiple industries. In this thesis it is showed that using binary classification on data from Scandinavian Airlines can predict their customers propensity to book a flight within the next coming seven days. A comparison between logistic regression and support vector machine is presented and logistic regression with reduced number of variables is chosen as the final model, due to it’s simplicity and accuracy. The explanatory variables contains exclusively booking history, whilst customer demographics and search history is showed to be insignificant.