Low cost carriers in Southeast Asia: How does ticket price change the way passengers make their airline selection?

The purpose of this paper is to develop an extended Theory of Planned Behavior (TPB) model to examine how Southeast Asian passengers' internal behavioral factors and external stimuli affect their buying intention and actual purchase of Low-Cost Carrier (LCC) tickets. In addition, how ticket price changes the behaviors of those factors in that model is also examined. A survey of 781 passengers was conducted in two major airports in Thailand to test the hypotheses. The results indicate the important role of passengers' attitudes, social norms, and perceived behavioral control in LCC passenger's buying behavior. More importantly, the presence of the ticket price does change how other factors predict the behavioral intention and actual use of LCCs in Southeast Asia.     

Whether low-cost-carrier passengers spend more on duty-free goods at the airport? Evidence from Incheon International Airport

With a dramatic growth in the low-cost carrier (LCC) traffic around the world, many airports have built budget terminals to accommodate the LCC flights with cheaper airport charge to the airlines but inferior shopping environment and service quality to the passengers. This study aims to answer the following research questions: i). Whether the LCC passengers have higher purchasing power than FSC (full-service carrier) passengers for the airport concessions, particularly the duty-free goods? ii). Would the budget terminal design contribute to or jeopardize the LCC passengers' airport concession expenditure? iii). How could the airport operator maximize its concession revenue by re-designing terminal or re-allocating flight slots? We collect the actual airport duty-free transaction data from Incheon International Airport (ICN) for an empirical investigation. Our empirical evidence first suggests that LCC passengers could have comparable or even higher purchasing power than FSC passengers in consuming duty-free goods at the airport. Among all the LCC passengers, Chinese have the highest purchasing power. Second, the inferior shopping environment and service quality of budget terminal seriously jeopardize the duty-free sales from the LCC passengers. Third, counterfactual analyses show that, if ICN could convert its budget terminal into a conventional terminal, 44 million USD more duty-free sales can be generated per year. Even keeping the current terminal design, re-allocating the LCC flights between the budget terminal and conventional terminal could bring approximately 4.9 million USD more duty-free sales per year. The findings provide managerial implications to ICN and other airports for effective airport revenue management. First, the budget terminal design may not be ideal to accommodate LCC traffic as it damages the concession revenue from particular LCC passengers with high purchasing power. Second, exploring the concession revenue from the growing LCC traffic could help maintain an airport's advantage in aeronautical charge under single-till regulation.     

Passengers' airport choice and airports' catchment area analysis in cross-border Upper Adriatic multi-airport region

Although much research has been performed on passengers' origin airport choice, there is little research on airports' catchment area size and even less on airports' catchment areas in cross-border regions. This paper addresses passengers' airport choice and analyzes airports' catchment area size and its homogeneity in the Upper Adriatic region. Using the results of passengers' survey at three regional airports (Ljubljana Jože Pučnik Airport (LJU), Venice Marco Polo Airport (VCE) and Trieste Pietro Savorgnan di Brazza Airport (TRS)) we have estimated the airports' catchment areas and airports market shares therein using multinomial logit (MNL) model structure. To additionally explore the passengers' airport choice behavior considering the different sensitivity across travellers to regional, demographic and airports attributes and account for preference heterogeneity in airport choice a mixed logit model was used. The results indicated that the three airports have relatively small core catchment areas and that the market share rapidly decreases with the increasing access time to airport. Partially, the results reinforced earlier findings showing that access time to airport is the most important determinant in airport choice for all segments (business/leisure and cross-border/domestic), however the sensitivity to access time is more pronounced in business and domestic group. Additionally, the results indicated pronounced loyalty to domestic airports and generally low importance of ticket prices, and show that in market conditions where all airports in the region have a low-cost carrier (LCC) the effect of LCC on airport choice is limited. Finally, the results indicated that the borders might have an influence on airport choice and that overall, in the cross-border regions the passengers’ airport choice process is even more complex than in non cross-border regions.     

An Examination of the Determinants of In‐Flight Duty‐Free Shopping: Hedonic and Utilitarian Motivations

This research note presents the findings of a study that empirically examined air passengers' in‐flight duty‐free shopping behaviors in the perspectives of utilitarian and hedonic motivations. On the basis of the primary data collected from 212 air passengers in Taiwan, empirical findings revealed that both utilitarian and hedonic motivations affect air passengers' intentions to browse in‐flight duty‐free shopping catalogues. Findings also showed that hedonic motivation does not directly influence air passengers' in‐flight purchase intentions. Instead, a higher utilitarian motivation can directly enhance passengers' in‐flight purchase intentions. Copyright © 2012 John Wiley & Sons, Ltd.     

A study on passengers' airport choice behavior using hybrid choice model: A case study of Seoul metropolitan area,South Korea

Improving explanatory power is significantly important to understand variables that affect attitudes and perceptions in the decision process. This paper estimates not only tangible attributes but also intangible perceptions and attitudes using a hybrid-choice model to study air passengers' flight choice behavior. The empirical study was conducted for the choice behavior of air passengers at Seoul Metropolitan Area, South Korea. The analysis uses a two-level Nested Logit model in order to examine which factors have more effect on passengers’ choice of airport and airline simultaneously by using airport and airline choice attributes. The study also estimated the parameters in the equations relating the latent variable by using Structural Equation Model (SEM). The results indicate that the models with latent variables have improved Goodness-of-Fit when compared to classical discrete choice models and effectively capture psychological factors that affect choice behavior of passengers.     

Investigating factors that influence passengers' shopping intentions at airports – Evidence from Taiwan

This study examines the influence of passengers' socio-demographic characteristics, trip characteristics and perceptions of airport shopping on their shopping intentions at airports. We collected a sample of passenger survey data at two major international airports in Taiwan. Two primary shopping intentions, namely pre-planned shopping and impulse shopping, are identified based on the results of factor analysis. A seemingly unrelated regressions (SUR) model is then adopted to measure the relationships between the two buying tendencies and potential determinants. Passengers' perceptions of airport shopping show positive impacts on their shopping intentions. The SUR results also reveal significant differences among the personal profiles of passengers in determining various shopping tendencies.     

Model of passenger behavior choice under flight delay based on dynamic reference point

Flight delay has always been a concern of scholars, but in previous studies, there has been little discussion of passenger behavior choice after flight delay. The paper based on the prospect theory, taking the Beijing-Shanghai route as an example, constructs the passenger behavior choice model under flight delay, and in order to explore the decision-making behavior of passengers with different attributes under different delay scenarios. The results show that the reference point of passengers' behavioral decision-making is dynamic due to different delay scenarios and passengers' attributes. For the same reason, passengers have different behavioral choices when encountering flight delay. Through empirical analysis, it is found that the choice of passengers based on prospect theory is in line with the actual choice of passengers. The choice model proposed in the paper can effectively describe the passenger's choice behavior.     

Factors influencing the intentions of passengers regarding full service and low cost carriers: A note

This study investigates discrepancy in factors affecting passengers' intensions regarding using full service and low cost carriers. A conceptual model, that originally focused on the former, is adopted and slightly revised according to the service properties of low cost carriers. To validate the revised model, a questionnaire survey on passengers of Spring Airlines, the first low cost airline in China, was conducted. The results indicate differences in attitudes towards full service and low cost carriers. Service perception is a latent variable with the most significant influence on intentions about using full service carriers, but exhibits less effect on intentions regarding low cost operators. Conversely, service value exerts the greatest effect on intentions for possible low cost passengers.     

A dynamically optimized aircraft boarding strategy

Airline carriers, airports and passengers have common interests in expediting the aircraft boarding process for economical, operational, and customer satisfaction reasons respectively. Several boarding strategies have been proposed in the literature aiming to reduce the boarding time. Several theoretical models were able to achieve near optimum performance, but ignored the important aspect of allowing family and groups to board together in cliques. Some other models achieved top performance by pre-assigning passengers to seats, which deprived them from the essential privilege of choosing their own seats. The Dynamically Optimized Boarding strategy is proposed to shorten the boarding time, reduce on-board interferences, and allow passengers' cliques to proceed together to their reserved seats. Passengers are sequenced in a boarding queue based on their seats' positions, associated cliques, and the possibility of interferences, immediately after the last check-in. They are required to board the aircraft according to their positions in the queue. A technology-aided announcement process can help in guiding batches of passengers to a small pre-boarding area in order to aggregate before boarding the aircraft. A simulation-based study showed that the proposed strategy achieved a near-optimum performance without breaching the passengers' right to walk in cliques to their preferred seats.     

Exploring the green image of airlines: Passenger perceptions and airline choice

During the last few years there has been an increasing trend for companies to market their products or services as green or environmentally friendly as part of their corporate social responsibility. Few studies have analyzed the effects of this recent focus on the environment and its impact on airline passengers. Therefore, we examine passengers' general attitudes towards the green image of different airlines, perceived differences in eco-friendliness among these airlines, and effects on airline choice during booking. We also investigate how passengers' recent experiences with an airline affect perceived eco-friendliness of that airline. In addition we compare passenger ratings of airline eco-friendliness to those published by independent 3rd parties. Our findings show that the green image of airlines does influence airline choice during booking. We observed a passenger willingness to pay extra for a green image, however, not as much as their willingness to pay extra for amenities, such as additional legroom.     

Analyzing passengers’ emotions following flight delays- a 2011–2019 case study on SKYTRAX comments

The text mining technology enables researchers or enterprises to automatically and efficiently access the information in text comments. This paper obtains 24,165 reviews from SKYTRAX between September 2011 and March 2019, 5700 of which express that passengers had experienced flight delays. It uses sentiment analysis based on a sentiment dictionary to classify user reviews and uses co-occurrence analysis to identify passengers' concerns on different aspects of service in the aviation industry. The results of the user sentiment analysis show that there is a significant and negative correlation between the user's emotions and their flight delay experiences. After flight delay, passengers' attention to the service aspects has increased, while satisfaction with the airport service has dropped dramatically. This paper shed some new light on public opinion about flight delays.     

Transport imaginations: Passenger experiences between freedom and constraint

This paper highlights the openness and indeterminacy of passenger experiences by exploring the power of passengers' imaginations in the context of urban railway commuting in Tokyo, Japan. Contrasting with much existing research on the figure of the passenger which has often stressed its intensified management and securitisation through spaces of transit, this paper examines how imagination plays an important but under-acknowledged part in transforming passenger experiences. Drawing upon extensive qualitative fieldwork conducted in Tokyo, it describes how the virtuality of these imagined spaces can work in different ways that can both enable and constrain passengers. Rather than seeing imagination as an internal psychological phenomenon, this paper stresses the relational qualities of imagination. Imagination can enable passengers to creatively travel as they gather references from what they see, hear, smell and feel through their bodily registers. In doing so, this paper argues that imagination is a situational process that materializes through passengers' encounters with a range of sensory stimuli in railway spaces. It also spotlights the specificity of the Japanese context for developing our understanding of power dynamics in research on passenger experiences. Supplementing transport geography's longstanding commitment to tracing the politics of enablement and constraint in terms of accessibility and travel time use, our paper highlights how imagination is an important but overlooked political domain.     

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.     

Exploring passenger preferences in airline service attributes: A note

This paper examines passengers' valuations on airline service attributes using stated preference analysis in the direct flight air market between Taiwan and China. An experiment design reflecting the characteristics of low cost airlines is used to collect stated preference data from Taiwanese air passengers. Empirical results reveal not only the implicit values of service attributes but also the preference differences in attributes between business and non-business travelers.     

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.     

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.     

Assessing the effects of perceived value (utilitarian and hedonic) in LCCs and FSCs: Evidence from South Korea

In the airline industry, passengers choose and buy service based on their perception of which airline delivers better value. Thus, it is important to compare two types of airlines, Low Cost Carriers (LCCs) and Full Service Carriers (FSCs), to measure how much their product or service is worth and the effect of perceived value on passengers' purchase decisions. This study examined the relationship between perceived value, satisfaction, and purchase intention in both FSCs and LCCs. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were performed for data analysis. Our findings reveal that passenger satisfaction in LCCs is affected by hedonic value and utilitarian value, but passengers' future purchase intention is not dependent on satisfaction even when passengers are satisfied. In FSCs, moreover, utilitarian value is not a significant factor for satisfaction and purchase intention. This research provides implications for airline marketers and directions for future research.     

Evaluation of passenger satisfaction with service quality: A consecutive method applied to the airline industry

Passengers' dissatisfaction with service quality is one of the crucial factors affecting the market share loss of airlines. This study aims to find out how airlines become capable of satisfying their passengers by considering the diversity of pre-purchase expectations. Therefore, the study proposes a novel model for clustering air passengers to identify passengers with similar expectations. Thus, the passengers' expectations of the service quality attributes in each cluster were measured and converted into quantitative degrees of customer satisfaction by applying the Kano model. Finally, Importance-Satisfaction Analysis (ISA) was employed to finding that which service quality indicators fall into the “Keep up the proper work”,” Concentrate here”,” Possible overkill”, and “Low priority” category for eliciting applicable marketing strategies.     

What are passenger perspectives regarding airlines' environmental protection? An empirical investigation in Taiwan

Many airlines recognize the importance of environmental protection. The airlines implement a number of environment-friendly activities related to in-flight services and wish to trigger passengers' support and therefore inquire as to their preferences. Because these activities are not identical between airlines, it is not known which items are actually supported and which items are opposed. In this paper, major airline environmental protection activities were collated, and the Smart partial least square software was used to analyse data from 442 passengers who have experienced air travel in the past 3 years. The results showed that in general, passengers would prefer to choose airlines that supported environmental protection activities. However, several activity items would be rejected if passengers felt their rights or interests being compromised. It was also indicated that people from countries at different stages of economic development had varying preferences regarding their support of airlines' environmental protection activities, and the young generation had more concern about environmental protection than others. The findings of this research could be beneficial for airlines setting up their differentiated marketing strategies for enhancing both environmental protection efforts and business performance.     

Exploring characteristics of passengers using traditional and low-cost airlines: A case study of Belgrade Airport

Low cost carriers entered the Serbian air travel market after Serbia joined the European Common Aviation Area (ECAA) in 2006, prompting the development of healthy competition among airlines and resulting in significant traffic increase at Belgrade Airport. The aim of this paper is to examine the characteristics of passengers traveling on low-cost carriers (LCC) in comparison with those traveling on traditional airlines by using cluster analysis, and to provide practical implications to airport management in tailoring their strategies to meet growing demand. A comprehensive passenger survey was recently conducted at Belgrade Airport on the routes where competition between traditional and LCC carrier exists. The results reveal that emigrants, primarily encouraged by favorable fares, constitute a substantial portion of LCC passengers. Affordable service offered by LCC has also been a positive stimulus for emigrants, who purchase tickets for their friends and relatives to visit them in their host countries. On the other hand, passengers using traditional airlines could be generally classified into two segments, those who fly on business and those who fly for leisure purposes, and each had specific needs when choosing their airline.