Abstract
Most airlines make various efforts to enhance their customers’ levels of in-flight satisfaction while offering alternative services and entertainment. As an innovative service item, some international airlines plan in-flight casino facilities to relieve their customers’ boredom and fatigue emanating from tedious long flights. Using a study sample of casino visitors in Korea, we intend to better understand how potential airline passengers show their willingness to pay for the hypothetical in-flight casino services. We also employ multiple choice experimental techniques to examine preference heterogeneity embedded in the sampled population. Based on study results, several management strategies are discussed for offering tailored in-flight entertainment services to targeted market segments.
Highlights
First-class is well known for a larger and more comfortable space and the highest standard of service during a flight, so it is called ‘the most luxurious form of travel’ in the airline industry [1]
It is widely known that service quality directly affects customer satisfaction, so it is considered a crucial factor of enhancing business profits [9,10,11,12,13]
The consistent positive signs of both SERVICE QUALITY and COMPS attributes provided supportive evidence of partially accepting our study hypotheses 5 and 6. These results indicate that the potential in-flight casino users were more interested in the airplane casino facilities with excellent quality of dealer services and the highest level of complimentary items
Summary
First-class is well known for a larger and more comfortable space and the highest standard of service during a flight, so it is called ‘the most luxurious form of travel’ in the airline industry [1]. According to the Korea Herald [5], low-cost airlines accounted for about 50 percent of domestic passengers for the first time in 2014 Such a phenomenon puts pressure on full-service carriers to implement a new type of management system. Ng and Yip [7] suggested that a ship’s casino is very popular and an important source of revenue These studies show that an in-flight casino is a new service that can give airlines such high profitability. It is widely known that service quality directly affects customer satisfaction, so it is considered a crucial factor of enhancing business profits [9,10,11,12,13]. This study aimed to examine the most suitable service quality for operating an in-flight casino using choice modeling techniques, so the findings of this study could help airlines in designing and launching an in-flight casino
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