Airline Choice Research Articles

A study on impact of service quality on customer satisfaction with low-cost carriers in India

Civil Aviation Industry is one of the fastest-growing industries in India. Passengers are most concerned about their choice of airlines for their travel purposes. This research paper mainly focuses on identifying the influence of service quality on customer satisfaction with low-cost carriers in India. The study also explores the gap between low-cost air carriers in India regarding the overall quality of airline service efficiency, customer satisfaction, and other selected attributes. The research is based on a literature review and an initial interpretation of a survey primarily designed to classify the views of passengers who have flown in Indigo, AirAsia, Go Air and SpiceJet. This study would allow Airlines to understand what passengers expect from airlines regarding service quality and provide input to service providers.

A study on post-Covid-19 passengers" airline choice attributes using modified Importance-Performance Analysis (IPA): a comparative study across generations

A study on post-Covid-19 passengers" airline choice attributes using modified Importance-Performance Analysis (IPA): a comparative study across generations

COMPETITIVE DIFFERENTIATION STRATEGY OF CEBU PACIFIC AIR TOWARDS PASSENGER LOYALTY

In a competitive market, Cebu Pacific Air aims to be the top choice of airline by utilizing differentiation strategy to reduce the pressure by other brands. The airline constantly improves its existing services through introducing new ones to tailor its offerings to the needs of its passengers in order to increase customer satisfaction and loyalty. In this study, the researchers utilized a qualitative case study to prove if Cebu Pacific Air's differentiation strategy applied in their services create impact on the brand loyalty of some of their target market through a set of structured interview questions, as services are seen as a key tool in an airline’s attempt to differentiate itself from its competitors, while customer loyalty may contribute as a competitive advantage for an airline. The result of the interview revealed different factors that lead the passengers to repurchase the same services from the airline, and the impact of Cebu Pacific Air’s services on the loyalty of their customers.

Low-Cost Carriers route network development

Low-Cost Carriers achieve economies of scale by deploying large, single-model fleets across an expanding set of regional bases. The addition of new bases and routes is bound by profitability and operational aspects, both posing limitations to the travel demand that can be served. We explored the evolution of Ryanair's network and discussed the factors that influence the airline's choices. We used highly detailed information on the evolution of the fleet and routes and calculated suitable indicators for the quantification of the trends. Based on these observations, we explored the implications for travel and tourism. The analysis was supported by interviews with industry experts. The main conclusion is that there is bi-directional causality between airline network evolution and travel demand.

Assessing the Determinants of Choice of Airline among Domestic Air Travelers in Lagos, Nigeria

The patronage or choice of an airline is determined by the airline’s ability to offer numerous service qualities toher passengers’ satisfaction. Several studies have identified numerous factors determining passengers’ choice ofairlines. However, there is still a paucity of information on the degree of determinants of these determiningfactors. This paper, therefore, examines the degree of influence these determinant factors have on domestic airpassengers’ choice of an airline in Lagos, Nigeria. Primary data were adopted using the structured questionnairethat focused on the demographic profiles of domestic air passengers, ranking of airline service qualities and thedeterminants of their choice of airline. The primary data were collected through 352 structured questionnaireforms administered by systematic random sampling method to 400 domestic air passengers at both the departureand arrival lounge of the domestic wing of Murtala Muhammed Terminal 2 (MM2) in Lagos. The resultsrevealed that Air Peace and Max Air ranked first and second respectively among the top ten operational airlinesin terms of service quality preference. Furthermore, the results of the hypothesis indicated that the passengerairfare and route availability influence domestic passengers’ choice of airline. The stepwise multiple regressionresults further indicated that passenger airfare exerted more influence at 89.2% (F=27889.785, p<0.05). Thestudy will help the airline’s marketing unit to identify the airline service quality they need to improve on, and itwill help policymakers not only in Nigeria but also all over the sub-continent to think about long-term strategiestowards the provision of sustainable airline services.

Airline brand awareness and perceived quality effect on the attitudes towards frequent-flyer programs and airline brand choice - Moderating effect of frequent-flyer programs

Understanding customer behaviour is critical to retaining loyal customers and attracting new ones when considering an airline brand. Most airlines have frequent-flyer programs (FFPs) meant to entice passengers' decisions regarding airline brand choice. However, the determinants of the attitudes toward FFPs and their effect on airline brand choice are not well documented. This study examined the influence of airline brand awareness and perceived quality on travellers' attitudes towards frequent-flyer programs and airline brand choice. Furthermore, the study investigated whether the attitudes towards FFPs indirectly (moderates) influence the causal relationship between airline brand awareness and brand perceived quality on airline brand choice. Social Exchange Theory (SET) guided the study. An explanatory research design was adopted. Primary data was sourced through the deployment of a structured online survey. Confirmatory factor analysis, composite reliability, and Cronbach alpha coefficients were assessed to determine discriminant validity and reliability of the measurement instrument. Afterwards, Pearson's correlation, simple linear, and multiple hierarchical (step-wise) regression models are estimated to test the conceptualised model using SPSS 27 software. The findings indicate that airline brand awareness and perceived quality influence travellers' attitudes towards FFPs and airline brand choice. Moreover, attitudes towards FFPs positively influence airline brand choice. Additionally, attitudes towards FFPs have a conditional (moderating) effect on the relationship between airline brand awareness and airline brand choice and between airline brand perceived quality and airline choice. The results indicate that high attitudes toward airline FFPs equate to higher airline brand choice despite low airline awareness or even when the airline's quality perception is evaluated as inferior. The findings of the study have significant theoretical and managerial implications.

Is negative e-WOM more powerful? Multimodal data analysis on air passengers' perception of COVID-19 safety measures.

During the normalization stage of the COVID-19 epidemic prevention and control, the safety threats caused by improper epidemic prevention measures of airlines have become the primary concern for air passengers. Negative e-WOM related to safety perception obtained based on online multimodal reviews of travel websites has become an important decision-making basis for potential air passengers when making airline choices. This study aims to examine the relationship between potential air passengers' negative safety perception and the usefulness of online reviews, as well as to test the moderating effect of review modality and airline type. It also further explores the effectiveness and feasibility of applying big data sentiment analysis to e-WOM management. To this end, the theoretical model of negative safety perception, review modality, and airline type affecting review usefulness was constructed. Then we select 10 low-cost airlines and 10 full-service airlines, respectively, according to the number of reviews sorted by the TripAdvisor website, and use crawling techniques to obtain 10,485 reviews related to COVID-19 safety of the above companies from December 2019 to date, and conduct safety perception sentiment analysis based on Python's Textblob library. Finally, to avoid data overdispersion, the model is empirically analyzed by negative binomial regression using R software. The results indicate that (1) Negative safety perception significantly and negatively affects review usefulness, that is, extreme negative safety perception can provide higher review usefulness for potential air passengers. (2) Review modality and airline type have a significant moderating effect on the relationship between negative safety perception and review usefulness, in which multimodal reviews and full-service airlines both weakened the negative impact of negative safety perception on review usefulness. The theoretical model in this paper is both an extension of the application of big data sentiment analysis techniques and a beneficial supplement to current research findings of e-WOM, providing an important reference for potential air passengers to identify useful reviews accurately and thus reduce safety risks in online decision-making.

What are the most important consumer decision factors when choosing an airline? An emerging economy perspective

PurposeThe quest to acquire new customers and retain the existing ones is a challenge for all aviation companies. This paper attempts to assist the aviation companies in tackling this challenge by revealing the most important factors that their customers consider to be the most important while making purchasing choices.Design/methodology/approachDrawing on three separate studies, this paper identifies the most important factors that influence consumers' choice of airlines in an emerging economy context. The first study adopts a qualitative approach with 20 respondents (Max QDA is used for analyzing these data), followed by the second study based on a quantitative survey with 105 participants, and finally, the third study which employs a multi-criteria decision-making technique named fuzzy analytic hierarchy process (AHP) on a sample of 12 expert customers.FindingsThe findings of this paper reveal that customer care quality and on-time arrival are the two most important factors that aviation customers consider while making their purchase decisions. In contrast, baggage allowance and fastest route to destination are the two least considered by aviation customers while making their purchasing choices.Research limitations/implicationsThis study includes only a geographic-specific segment of passengers. Future studies of consumer preferences in the aviation industry may include consumers belonging to other geographic regions. Furthermore, future studies may segment their sample populations based on factors other than age, the purpose of travel and booking medium.Practical implicationsThis investigation attempts to give a rich and holistic understanding of the different factors that influence the aviation choices of consumers of varying segments. This study has significant practical implications as modern-day airlines aim to optimally cater to the needs of their target segments without incurring additional costs on services that consumers do not deem to be as important.Originality/valueThis study highlights the importance attributed to each identified factor by passengers, something that previous research has mostly ignored.

Exclusivity in concession revenue sharing contracts

Our paper studies the effects of concession revenue sharing contracts by endogenizing the choice of the signatory airline. It is shown that an airport finds it profitable to share concession revenues with airlines and this increases both consumer surplus and social welfare. The airport prefers an exclusive agreement when the net per passenger revenue generated on non-aeronautical services at the airport is sufficiently low; it extracts higher payments by exploiting the competition between airlines to become the sole signatory. The level of aeronautical charges, that are regulated, influences the airport’s decision and, consequently, the intensity of airline competition. Welfare is higher under a non-exclusive arrangement, which may be in conflict with the airport’s decision. The incentive to use these contracts remains under airport competition and revenue sharing increases. With an airline alliance, revenue sharing increases traffic for a large enough degree of cooperation between airlines.

Airline choice model for international round-trip flights: The role of travelers’ satisfaction and personality traits

Air travelers' satisfaction with current airline options may have different effects on their decisions. We analyzed air passengers' demands for international round-trip flights using an Integrated Choice and Latent Variable (ICLV) model. Most research on airline choice has only included observable factors. To fill this gap, this study hypothesized that the airline choice process depends not only on a set of measurable factors but also on passenger satisfaction which, in turn, is influenced by travelers' personality traits. Structural equation modeling was used to construct the passengers' satisfaction to relate passengers' personality traits, airline characteristics, and passenger flight experiences with travelers' perceptions of air carrier services. The satisfaction was incorporated into the discrete choice (DC) model, which was used to evaluate travelers' airline choices for an international round-trip flight. Results indicated that passenger satisfaction with each airline service was associated with airlines’ utilities. Therefore, by incorporating traveler satisfaction into a DC model, air passenger choice behavior can be modeled more precisely. The average probability of correct predictions in the validation sample reflected the superior fit of the ICLV model. These findings highlighted the complex ways in which perceptions can influence airline choice and provided insight for targeted policy interventions.

Significant variables currently influencing air travelers’ preference for domestic airlines in Nigeria

In recent years domestic airlines are improving their services, and the major airlines in Nigeria are ahead of others based on superior strategies; in fact, some airlines are not fully utilized, which affects their profitability, while others are highly utilized. Market dynamics and regulatory forces are the key variables that influence airline attributes, features, and developments, but this is most evident where each airline competes for passengers despite the different route choices and airports of departure. This study aimed to examine the significant variables that are currently influencing air travelers’ preference for domestic airlines in Nigeria. Primary data were obtained through systematic and random sampling of air passengers, and a questionnaire was employed for data analysis. In Lagos and Abuja airports, 757 and 682 questionnaires were administered respectively with 71.1% and 61.9% returned respectively. Regression analysis was utilized to analyze the primary data. The study found that time, safety, and fare are the most influencing factors determining passenger choice of domestic airlines in Nigeria. The current findings are crucial for policymaking, particularly during the phase of airline planning and management especially during the Covid-19 pandemic era that has challenged the economic buoyancy and the purchasing power of passengers.

항공사 선택속성이 국내항공사 선택에 미치는 영향: 여행관여도의 조절효과를 중심으로

The purpose of this study was to suggest domestic airlines user preferences in consideration of airline selection attributes, demographic variables, and airline usage patterns, and to estimate the determinants of the airlines to understand the detailed characteristics of users. In order to provide more detailed user characteristics, the determinants were estimated by classifying them into high and low groups according to travel involvement, and applying the MNL model, a choice demand model. Some of the determinants that influence the choice of preferred domestic airlines in the entire group were estimated. The high involvement group for travel did not provide meaningful interpretation of the determinants in model fit. But, determinants influencing the selection of domestic airlines in the low involvement group were estimated in more detail. It resulted in more detailed user characteristics than the entire group as well as suggesting the need for a differentiated strategy to increase the demand for airline choice.

Air travellers’ behaviour when choosing airline and flight departure time: The case of medellín, colombia

The behaviour of air travellers and their choice of airline and flight departure time are relevant subjects with an increasing interest because of their implications for planning purposes. However, most of the current approaches consider them to be isolated choices, while just a few contemplate them as a joint choice. The present investigation modelled the choice process of individuals related to a set of alternatives formed by a combination of airline and flight departure time, in the context of domestic travellers in the Metropolitan Area of Medellín, Colombia. The approach specifies discrete choice models, estimated from face to face surveys of revealed preferences data collected in the two airports serving the city. Correlations between alternatives and substitution patterns are calculated, including subjective values of time, direct and cross elasticities for ticket cost, travel time and departure time attributes. We also discuss some policy scenarios. According to the results, flights operating at a similar time, and those offered by airlines with the highest market presence have a higher level of competition. Travellers for leisure purposes are less sensitive to travel time than those travelling for business or another motive. Furthermore, the difference between the actual departure time and the preferred departure time of the traveller affects negatively the probability of choosing a specific alternative. In Colombia, air travellers have a highly elastic behaviour towards airfares, travel time and flight departure time. The conclusions drawn by the interpretation of the proposed models are useful for authorities in the formulation of policies, and for aviation companies to optimise their operation. The research provides valuable information on the context of Colombian air transport, which is poorly reviewed in the literature.

Airline emissions charges and airline networks

Emissions charges are an effective tool to control aviation carbon dioxide emissions. This paper investigates how airline emissions charges affect a monopoly airline's network choice. By considering simultaneously fully-connected, hub-spoke and mixed networks, we find that the impact of emissions charges on airline network configuration depends crucially on some relevant parameters, for example, the marginal benefit of the reduction of schedule delays and the disutility of additional travel time of connecting flights. Welfare analysis shows a discontinuity in the network configuration from the social planner's perspective and an inefficiency related to the airline's choice on mixed network.

Influence of Low-Cost Carrier Attributes towards Airline Choice Decision in Bandung-Surabaya Route

Abstract. The number of Indonesian domestic passengers which increased rapidly has encouraged for the airlines to expand their market share by opening routes in the local region and one of the promising region is Bandung. In early 2019, the Low-Cost Carrier has implemented paid baggage policy. The changes of airline conditions and regulations could affect consumer purchasing decisions. The airline have to redesign its strategies and conduct a strategy adjusment to identify the consumer's needs and wants these days. Based on the problem description, this research aims to identify what significant attributes influence passenger's purchasing decision-making and determine what elastic and inelastic attributes. Data collection using an online questionnaire then spread to 235 respondents and were analyzed with Mixed Logit Model using BIOGEME software. The results shows that airline's departure time is a significant attribute towards passenger's airline choice. Ticket price also plays a key role in selecting an airline for passengers when the ticket price increases, Passenger will consider choosing other alternative airlines that are more affordable. The results could be used by an airline company to attract the passenger by improving its marketing strategy. Keywords: Low-cost carrier, airline choice, airline attribute, mixed logit, demand elasticities

The effects of airline choice on accommodation type and length of stay: evidence of an islands region

ABSTRACT This study aims to analyze the influence of the entrance of low-cost carriers in the Azores in terms of the determinants of the number of overnight stays and the choice of accommodation type. Different methods of statistical analysis were used for the empirical study. Estimates were considered based on variables related to the trip. In addition, a different variable was considered in the estimates of the type of accommodation: the tourist’s perception of the importance of the existence of several types of accommodations, quantified on a qualitative scale. The results indicate that tourists traveling to the Azores on low-cost carriers tend to stay fewer days at the destination, although these tourists may have other characteristics that predispose them to shorter stays. Finally, the results suggest that the characteristics related to travel are explanatory variables in the choice of accommodation type.

Airline choice model for an international round-trip flight considering outbound and return flight schedules

This paper quantified the impact of outbound and return flight schedule preferences on airline choice for international trips. Several studies have used airline choice data to identify preferences and trade-offs of different air carrier service attributes, such as travel time, fare and flight schedule. However, estimation of the effect return flight schedules have on airline choice for an international round-trip flight has not yet been studied in detail. Therefore, this study introduces attributes related to return flight characteristics and round-trip flight schedule interaction into the airline choice models, which have not previously been reported in the literature. We developed a stated preference survey that includes round-trip fares based on flight schedule combinations and the number of days prior to departure fares was purchased. We applied modelling techniques using a set of stated preference data. A mixed logit model was tested for the presence of heterogeneity in passengers' preferences. Our results indicated that models with attributes related to return flight and its interaction with outbound flight attributes have a superior fit compared with models only based on attributes reported in the literature review. The model found shows that airfare, travel time, arrival preference schedule in the outward journey, departure preference in the return journey and the schedule combination of round-trip flight are significantly affecting passenger choice behaviour in international round-trip flights. Sensitivity analysis of airline service characteristics and their marketing implications are conducted. The analysis reports seven policies with the greatest impact on each airline choice probabilities. It shows that by reducing travel time and airfare and by adopting an afternoon and night schedule preference for outbound and return flight, respectively, the highest probability on airline choice would be reached. This research contributes to the current literature by enhancing the understanding of how passengers choose airlines, considering both outbound and inbound journey characteristics. Thus, this study provides an analytical tool designed to provide a better understanding of international round-trip flight demand determinants and support carrier decisions.

Key Drivers for Same-day Return Airline Choice of Business Travellers: A South African Community Airport Perspective

Time is money; therefore, it is important to understand which factors are most import for business travellers when choosing same day flights. The data was obtained from 101 business travellers that travel between a community airport to larger, but also other community airports in South Africa. This article presents the results of the key drivers for same-day return airline choice for business travellers. Safety record, on-time departure and convenience were ranked first to third, staff and on-line seat selection were ranked the lowest of the drivers. Insights into the nuances of each of these drivers are provided. The research indicated that there are differences in drivers for decision making between gender business travellers. Recommendations are made to current and prospective airlines that wish to increase their amount of business travelers on these specific routes. This study is unique as it provides insights on same day return flights for business travellers which is a under research area in travel and travel related issues.

Analysing travel mode and airline choice using latent class modelling: A case study in Western Australia

• Estimating travel mode and airline choice using air and non-air passengers’ stated preference data. • Accommodating passengers’ preference heterogeneity using latent class models. • Investigating the differences in travel mode choice, socio-demographics and trip characteristics among passenger segments. • Examining willingness to pay (WTP) of the travellers. This paper investigates travel mode and airline choice using stated-preference data. Both air and non-air passengers’ data were collected in Western Australia, which allows easier generalisability of the findings to a wider population. A market segmentation approach, using latent class modelling, was applied to identify passenger segments. The results shown a significant difference between identified segments in terms of demographics, economics and trip characteristics. One segment, comprising travellers with higher income and more frequent business travellers, was sensitive to service-factors. The other, comprising personal travellers with lower incomes, placed higher sensitivity on price. The findings highlight the importance of understanding mode choice behaviour based on market segmentation and provides insights to policy-makers and airlines for developing more effective polices and strategies.

Modelo para Aferir a Hospitalidade a Bordo das Aeronaves do Transporte Aéreo Doméstico Brasileiro

Propósito justificado do tema: O conhecimento da forma como os passageiros enxergam a hospitalidade a bordo das aeronaves brasileiras permite identificar os fatores tangíveis e intangíveis valorizados pelos passageiros e que podem fazer diferença no momento da escolha da empresa aérea. Objetivo: Dentro do universo da hospitalidade na aviação, a presente pesquisa tem como objetivo analisar a hospitalidade no transporte aéreo doméstico brasileiro a partir da visão dos passageiros. Metodologia e abordagem: O estudo é de natureza mista compreendendo fase qualitativa com revisão bibliográfica e quantitativa com o desenvolvimento de instrumento de coleta de dados e a análise de 1.163 questionários, tendo se utilizado como ferramenta de análise o software SPSS. Resultados: Os resultados alcançados permitem concluir que, na visão dos passageiros, a hospitalidade é percebida a bordo das aeronaves do transporte aéreo doméstico brasileiro, abrangendo um conjunto de 19 itens que podem ser explicados usando-se 5 fatores que foram denominados “atrativos”, “atendimento”, “bem-estar”, “low-cost” e “higiene”. Originalidade do documento: Este trabalho é original, pois tem por objetivo apresentar modelo inédito para se aferir a hospitalidade a bordo das aeronaves brasileiras.