Willingness to Pay for Frills When Travelling with Low-Cost Airlines

Antónia Correia, Adriano Pimpão and Manuel Tão

Tourism Economics, 2012, vol. 18, issue 6, 1161-1174

Abstract: The success of low-cost companies is based on the economic principle that there is no free lunch. In this paper, by means of a stated preference experiment, the authors examine individuals' preferences for the main attributes defining the service offered by low-cost airlines. The empirical research is supported by a randomly collected sample of 525 passengers travelling to the Algarve for leisure purposes throughout the spring of 2009, using low-cost carriers. The results reveal not only the implicit values of service attributes, but also the preference differences in attributes between passengers. The policy and management implications of these results are discussed.

Keywords: low-cost airlines; elasticities; stated preference; multinomial logit model (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2012.0175 (text/html)

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:sae:toueco:v:18:y:2012:i:6:p:1161-1174

DOI: 10.5367/te.2012.0175

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().