Stated-choice analysis of willingness to pay for low cost carrier services

Li-Yen Chang and Pei-Yu Sun

Journal of Air Transport Management, 2012, vol. 20, issue C, 15-17

Abstract: We examine Taiwan-China air travel, using a stated-choice modeling to look at passengers’ decisions between nonstop flights and indirect flights with traditional full service carriers and nonstop flights with low cost carriers; and passengers’ willingness-to-pay for the low cost carrier service. We find that fare, luggage restrictions, and destination airports are significant attributes that may influence the choice of airline. Further, the choice behaviors of business travelers and non-business travelers are significantly different; the latter having a greater willingness to pay more for luggage service and daytime arrival, and in particular to use a secondary airport.

Keywords: Low cost airlines; Airline choice modeling; Airlines service attributes (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:20:y:2012:i:c:p:15-17

DOI: 10.1016/j.jairtraman.2011.09.003

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