Airline frequent flyer programs: equity and attractiveness

The scheme of a frequent flyer program describes how travelers accumulate and redeem their frequent flyer miles in the program, and determines the amount of benefits travelers can receive from the program (e.g., number of free trips). In the US, there are three basic types of frequent flyer program schemes (standard, discount, and non-mileage schemes). This paper investigates, by type of traveler, which scheme is most (or least) attractive to customers, so that each airline can select the most appropriate (or attractive) scheme for its target audience. The study results imply that the “non-mileage” scheme may be most attractive to travelers with low average trip miles (flown miles per trip), while the “standard” scheme may be most attractive to travelers with high average trip miles.     

Integrating frequent flyer programs in multilateral airline alliances

Forming branded alliances has become a common strategy in the airline industry. These can be defined as ‘multilateral alliances’ as opposed to bilateral alliances. Limited attention has been paid to assessing the impact of multilateral alliances on complex sub-networks, such as distribution networks, cargo alliances and frequent flyer programs. These sub-networks are ‘derivative networks’ within multilateral alliances. These derivative networks create several dilemmas as they evolve causing airline managers to confront fundamental questions regarding harmonization, conflict resolution, and organizational structure.     

The effect of frequent flyer programs: A case study of the Korean airline industry

Frequent flyer programs are important for airlines in Korea in their marketing of services. This paper develops a conceptual model to investigate the effect of such programs by examining the relationships them and, airline service quality, pricing, passenger satisfaction, airline image, and airline selection. Path analysis is used to analyze data collected from Korean international air passengers. The results show that frequent flyer programs have direct and indirect effects on pricing, passenger satisfaction, airline image, and airline selection. In addition, their effects on passengers' selections are significantly different between Korean and foreign airlines.     

In the air again: frequent flyer relationship programmes and business travellers' quality of life

This research explores whether frequent flyer programmes somehow add to the quality of life of the frequent business traveller (defined in this study as business flyers who had flown round trip 26 or more times in the past 12 months). A questionnaire was mailed to subscribers of a newsletter for members of frequent air and hotel programmes. Results indicated that frequent flyer programmes contribute positively to frequent business travellers' lifestyles and to their quality of life, perhaps by countervailing some of the negative aspects of frequent business travel. Copyright © 2003 John Wiley & Sons, Ltd.     

Potential cost savings of frequent flyer miles for business travel

The mileage redemption strategy is a procedure used by many business firms to reduce air travel costs, in which the frequent flyer miles of traveling employees accumulated during business trips are applied to their future business trips to obtain “free” air tickets. This paper presents a framework that investigates how the frequent flyer miles can be used in the most effective way to reduce air travel costs by those firms that are either using the mileage redemption strategy or considering the use of the strategy. The framework can be implemented quite easily by a spreadsheet software such as Microsoft Excel.     

A heuristic method for effectively using frequent flyer miles for stochastic business trips

Today, many business firms are requiring employees to use the frequent flyer miles accumulated during business trips to obtain free tickets for their future business trips. This paper presents a method of using frequent flyer miles in a more cost-effective way than the methods currently used by firms. The proposed method combines features of the existing methods, while it avoids the most serious limitations of these methods. The simulation results imply that the proposed method produces lower travel costs than existing methods in most practical situations. The method is simple and can be used quite conveniently by travelers having no technical background.     

Reforming air traffic control: an assessment from the American perspective

This paper examines institutional and economic reform of the ways in which air traffic control (ATC) services are provided in the US. It also contrasts the European and US ATC systems in terms of size, scope, cost and organizational form. The paper suggests that many of the congestion and delay problems experienced in the US result from the inefficient provision and use of air traffic capacity in the airport area, and these conditions are likely to continue or worsen if economic principles are not used to organize and provide ATC services. The paper notes that, while Europe has advanced more rapidly in the organizational and economic reform of providing ATC services, other problems remain. Because most large European airports have slot controls to limit demand in the airport area, its ATC congestion is more pronounced in the en route environment.     

Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective

Green supply chain management (GSCM) has become an emergent ecological modernization tool amongst Chinese manufacturers to balance environmental performance with productivity and business performance gains. Ecological modernization at the society level is influenced by restructuring policies and regulations. Some of these policies and regulations in China are focusing on enhancing energy savings and pollution reduction (ESPR). Based on a survey of 376 responses, we investigate whether different Chinese manufacturer clusters varying in their extent of implementing GSCM exist from this ecological modernization perspective. We also examine if Chinese manufacturers’ awareness of domestic and international environmental ESPR-oriented compliance is related to GSCM implementation and whether a mediating effect of regulatory pressure plays a significant role. The results highlight the varying pace of Chinese manufacturers to ecologically modernize with GSCM practices and the significance of regulatory pressure to diffuse the practices adoption by Chinese manufacturing industry. Implications of this research go beyond the manufacturers investigated in this study where similar occurrence of these relationships may exist in other regions.     

Analysis of Iranian passengers' behavior in choosing type of carrier in international air travel to East Asia

Increased demand for East Asia flights from Tehran has intensified competition between Iranian and foreign carriers. In addition, the entrance of low-cost carriers (LCC) will make this competitive market even more intense. In this condition, carriers are striving to gain more market share by improving services and discounting their fares. Therefore, analyzing air travel demand is valuable for carriers' long term and short term planning. This study empirically investigates passengers' behavior in choosing five types of carriers in many groups of passengers using multinomial logit (MNL) and nested logit (NL) models. The data were collected through the stated preference (SP) questionnaire designed based on orthogonal main-effect. The main survey was conducted in the Imam Khomeini International (IKI) airport in July 2013 where 480 questionnaires were collected through face-to-face interviews. The results show that the ticket fare, the possibility of travel on desired date and time, international air travel experience, Frequent-flyer program (FFP) membership status, marital status, and gender are statistically significant contributors in explaining carrier choice. Interaction effects between trip purpose and ticket fare are statistically significant in choosing carriers. The results further indicate that business travelers are more willing to pay than non-business travelers for flights on desired date and time, although varying by type of carrier.     

The impact of service quality and price on passengers' loyalty towards low-cost airlines: The Southeast Asia perspective

The objective of this study is to examine the impact of service quality by adopting AIRQUAL model and price on passengers' loyalty through the linkage of passengers' satisfaction toward low-cost airlines from the perspective of Southeast Asia. With 200 questionnaires analyzed, the results suggest that service quality and price have a positive significant impact on passenger satisfaction, and as a result lead to passengers’ loyalty. Besides, the findings of this research also confirm the mediating role of customer satisfaction between service quality and loyalty, price and loyalty separately, which implies that customer satisfaction is a vital factor for an LCCs to survive in such a highly competitive aviation market.     

Evaluating competitiveness of air cargo express services

This paper explores the relative importance of factors that influence the adoption of air express delivery service, and evaluates the competitiveness of air cargo express carriers in the Korean market. Our AHP analysis shows that accuracy and promptness are the two most influential factors to competitiveness, and that DHL is most competitive in the Korean market, followed by FedEx, TNT, EMS, and UPS. We further examine both the factor importance and carriers’ competitiveness from the perspective of service users. While accuracy and promptness remain as important factors, price becomes the most important factor. Finally, an importance–performance analysis for each carrier is conduced, and managerial implications are drawn.     

Cooperative approaches to managing air traffic efficiently—the airline perspective

After decades of operating in a traditional customer–supplier relation, airlines and airports have started to discover the potential of cooperation strategies. Here we present an approach of how to identify possible fields for cooperation between the two players and give examples for proven successful joint development initiatives. In more detail we elaborate on two specific case studies, targeting at two entirely different kinds of actors. The field of air service development (ASD) enables airports to attract additional traffic in order to better utilize existing capacities. Collaborative decision making (CDM) on the other hand is an approach supporting the optimized utilization of congested airport infrastructure and air space. We conclude that even with low investment needs substantial benefits can be generated for the cooperating parties, opening room for further future cooperation projects.     

Challenges to domestic air freight in Australia: Evaluating air traffic markets with gravity modelling

With two of the busiest air traffic corridors globally, Sydney-Melbourne (SYD-MEL) and Sydney-Brisbane (SYD-BNE), very liberal open skies agreements, and the world's most isolated large city in Perth, air freight in Australia should be destined for substantial growth, but has in contrast to other regions such as the US not yet materialised. This paper identifies challenges surrounding domestic air freight markets in Australia and compares the provision of road vs air freight services utilising gravity modelling methods. Our findings suggest the impedance of domestic air freight services in Australia is greater for regional areas between the primary cities (such as Canberra, between Sydney and Melbourne) than remoter areas (such as Cairns in Northern Australia). Our models show further that in addition to distance, air freight capacity on any of our analysed routes is despite being demand-pulled in terms of GDP dependency significantly attuned to factors at both the origin (in particular domestic trade capability, i.e. manufacturing and logistics) and destination.     

Realizing proximity in times of deregulation and densification: Evaluating urban change from a welfare regime perspective

We evaluate changes in proximity (in terms of walkability) to essential services in the city region of Gothenburg, Sweden, 1994–2014, when sustainability policy goals were set to promote urban densification and non-motorized mobility. Simultaneously, public services were deregulated, reducing political capacity to control their accessibility. Considering this tension and welfare regime theory, we investigate to what extent typically regulated and deregulated services (libraries, pharmacies, primary schools, and grocery stores) have come closer to the population in areas of different densities and centralities. We draw on unique micro-level data comprising the detailed locations of population and services analyzed using decomposition. Results indicate that services the most (libraries) and least (grocery stores) controlled by public policy decreased in proximity. In contrast, recently deregulated services (pharmacies and primary schools) became more accessible by foot due to disruptive market change. While population relocation reduced the proportion of people living near the services, the changing geography of amenities was a more important driver of proximity change. We argue that sustainability goals to realize proximity have far-reaching repercussions for urban governance, emphasizing the need to assess proximity changes at detailed scale levels.     

Investigating the effects of service recovery quality elements on passengers' behavioral intention

This study intends to analyze how the elements of restoring the quality of airline service influences the airline image, recovery satisfaction, and behavioral intentions of airline passengers. For this testing, a survey was conducted on passengers with an experience of dissatisfaction of airline services. A total of 240 responses were analyzed by using structural equation modeling. The results revealed that among the recovery quality elements, promptness had a positive influence the image of the airline. Additionally, a recovered image of the airline had a positive influence on the recovery satisfaction and behavioral intention. The findings of this study may improve our understanding of consumer responses to the airline company's efforts to recover service failure.     

Evaluating participation in community-based tourism: a local perspective in Laos

This study aims to understand how local community members viewed and evaluated the success of a community-based tourism (CBT) project implemented in Laos. The study identified three distinctive groups according to levels of participation and responsibilities adopted, namely active participation, passive participation, and non-participation. The findings suggest that there are mixed perceptions and evaluations of equal participation among community members. The active participation group was mainly comprised of community leaders, exhibited high levels of participation, including in the decision-making process, and thus positively evaluated their participation and the success of the CBT project in their village. However, the great majority of community members were in the passive participation and non-participation groups, seldom participated in the project, and were sceptical of future CBT projects, as the current project appeared to be based on unequal participation from the very beginning.     

Travel time use and its impact on high-speed-railway passengers' travel satisfaction in the e-society

The availability of wireless networks and the pervasive use of mobile ICT devices have allowed passengers to conduct various e-activities during journeys. These various e-activities, in turn, may change people's conventional perception of travel time from being “wasteful” and “unproductive,” to “desirable” and giving rise to satisfaction. Journeys on high-speed railway (HSR) is particularly relevant for transport researchers to probe into this question because of its characteristics of being medium to long-distance (typically taking half-an-hour or more), seat availability, and a smooth ride. Using a questionnaire survey on passengers along the Shanghai-Nanjing HSR route, this study aims to examine the nature of ICT device use and in-vehicle e-activities conducted by HSR passengers and the influence on their travel satisfaction with their on-board journey experience. Our results reveal a high percentage of ICT device use and a wide variety of e-activities such as e-working, e-communication, and e-reading for leisure on HSR trains. In addition, the higher use of ICT device was associated with an increase of passengers' travel satisfaction. Furthermore, we found a positive effect of work-related e-activities on travel satisfaction for business/work trips, while a positive effect of entertainment-related e-activities for non-business/work trips. Given that HSR is potentially a more sustainable transport mode, some possible policy implications are proposed to encourage people to use HSR, as opposed to driving or flying, for medium to long-distance intercity journeys.     

Risk factors associated with flying in adverse weather: From the passengers' point of view

Risk factors on the demand side of aviation safety are rarely addressed as the focus of research is most often placed on the supply side of aviation service. Even though airlines have the prerogative to cancel flights in the face of adverse weather, stranded passengers have to be reckoned with in the event of cancellation. Passengers' awareness of the risks associated with flying in adverse weather may help mitigate the confrontation as well as induce passengers to take the lead in adopting preventive measures. The aim of this article is to study the attitudes air travelers say they have towards flying in adverse weather, as well as risk factors regarding cancellation of trips in adverse weather. A conceptual framework is presented which outlines the links between risk factors and preventive measures. Data generated from a quantitative survey of 1145 air travelers, conducted in July 2015 at Taiwan's Kaohsiung International Airport, is used to examine this framework using correlation analysis and one-way analysis of variance (one-way ANOVA). The factors of trust, risk perception and domestic destination are found to be positively related to passengers' stated attitude toward taking preventive measures. Income, purpose of the trip and direct experience generate ambiguous results. The outcome also suggests the following paradox: while pilots make the final decision regarding aviation safety in adverse weather, they appear to enjoy the lowest level of passenger trust.     

High-speed rail and air transport competition in Western Europe: A supply-oriented perspective

Increasingly air transport growth raises the question of its impact on the environment. Public authorities and researchers are relying more and more on high-speed trains (HSTs), whose efficiency is supposed to lead to a modal shift from airplanes. However, most transport studies focus on the evolution of demand rather than supply, although it is basically the latter that determines environmental damage. In light of this fact, this paper aims to compare the overall dynamics in the supply of air transport in Europe compared to the HST supply and to examine empirically five city-pairs. The development of high-speed rail remains limited compared to the increase of air services. For a given city-pair, the decline in the number of flights depends on various conditions, including length of the HST journey and the strategies adopted by the airlines. Some carriers reduce their supply in terms of the number of seats but increase the number of flights in order to compete more effectively with the HSTs. Moreover, the competition between low-cost airlines and HSTs should be kept in mind and re-examined in a few years.