The impact of a baggage fee waiver on airline choice: Evidence from the Washington-Baltimore region

Woohyun Cho and Martin E. Dresner

Transportation Research Part A: Policy and Practice, 2018, vol. 112, issue C, 4-17

Abstract: Using the revealed choices of airline passengers assessed from survey data, we investigate the impact of baggage fees (or baggage fee waivers (BFW)) on airline choice. We find that when segmenting passengers, the BFW is a significant inducement for passengers who potentially have a greater need to check bags; that is, passengers traveling on long flights, for long distances, or for leisure purposes. Further, we find that the greatest impact of implementing the baggage fee is in changing the behavior of passengers at the fee-charging carriers (significantly reducing the proportion of passengers that check bags) rather than in inducing passengers to switch to the BFW carriers from the fee-charging carriers.

Keywords: Baggage fee waiver (BFW); Airline choice; Passenger segmentation; Interactions between choice of a BFW airline and the decision to check bags (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856418300144
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:112:y:2018:i:c:p:4-17

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2018.01.003

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().