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Stated-choice analysis of willingness to pay for low cost carrier services

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  • Chang, Li-Yen
  • Sun, Pei-Yu

Abstract

We examine Taiwan-China air travel, using a stated-choice modeling to look at passengers’ decisions between nonstop flights and indirect flights with traditional full service carriers and nonstop flights with low cost carriers; and passengers’ willingness-to-pay for the low cost carrier service. We find that fare, luggage restrictions, and destination airports are significant attributes that may influence the choice of airline. Further, the choice behaviors of business travelers and non-business travelers are significantly different; the latter having a greater willingness to pay more for luggage service and daytime arrival, and in particular to use a secondary airport.

Suggested Citation

  • Chang, Li-Yen & Sun, Pei-Yu, 2012. "Stated-choice analysis of willingness to pay for low cost carrier services," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 15-17.
    • Handle: RePEc:eee:jaitra:v:20:y:2012:i:c:p:15-17
    DOI: 10.1016/j.jairtraman.2011.09.003
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    References listed on IDEAS

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    1. Mason, Keith J., 2001. "Marketing low-cost airline services to business travellers," Journal of Air Transport Management, Elsevier, vol. 7(2), pages 103-109.
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