What is driving the continued growth in demand for air travel? Customer value of air transport

Abstract

This article introduces the concept of customer value as a driving factor for continued growth in demand and eliminates a subversion of the customer-value theory for the air-transport industry. This theoretical framework includes risk as subcomponents of perceived relative benefits as well as perceived relative costs. Based on data of a survey the weight of the different influential factors is evaluated. Management implications as well as methodological learning for the measurement of customer value are derived. The key conclusion thereby is that a stronger focus on customer value will be a key challenge of airline management. Important developments take place at the lower and upper end of the price and quality ranges. Thereby the orientation should be directed by the real, often hidden and not only to the stated preferences of customers.