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Customer value of purchasable supplementary services: The case of a European full network carrier's economy class

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  • Wittmer, Andreas
  • Rowley, Edward

Abstract

There is a general trend in the airline industry to try to find ways to generate ancillary revenue by offering additional or unbundled services. Low-cost carriers in particular are known to offer unbundled services, but only a few network carriers have started to unbundle their services and seek ancillary revenues. Meanwhile, others do not attempt this, due to a possible negative impact on customer perception and their brand image.

Suggested Citation

  • Wittmer, Andreas & Rowley, Edward, 2014. "Customer value of purchasable supplementary services: The case of a European full network carrier's economy class," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 17-23.
    • Handle: RePEc:eee:jaitra:v:34:y:2014:i:c:p:17-23
    DOI: 10.1016/j.jairtraman.2013.07.002
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    References listed on IDEAS

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    1. Laitamäki, Jukka & Kordupleski, Raymond, 1997. "Building and deploying profitable growth strategies based on the waterfall of customer value added," European Management Journal, Elsevier, vol. 15(2), pages 158-166, April.
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    3. Andreas Wittmer & Philipp Boksberger & Andreas Gerber, 2012. "The future of ancillary service fees in air travel - an exploratory investigation of budget air travellers," International Journal of Aviation Management, Inderscience Enterprises Ltd, vol. 1(4), pages 231-241.
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    Cited by:

    1. Ding, Ji-Feng & Shyu, Wen-Hwa & Yeh, Chun-Tsen & Ting, Pi-Hui & Ting, Chung-Te & Lin, Chien-Pang & Chou, Chien-Chang & Wu, Su-Sin, 2016. "Assessing customer value for express service providers: An empirical study from shippers’ perspective in Taiwan," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 203-212.
    2. Ren, Xinhui & Pan, Na & Jiang, Hong, 2022. "Differentiated pricing for airline ancillary services considering passenger choice behavior heterogeneity and willingness to pay," Transport Policy, Elsevier, vol. 126(C), pages 292-305.
    3. Jeon, Mi-Sun & Lee, Jang-Ho, 2020. "Estimation of willingness-to-pay for premium economy class by type of service," Journal of Air Transport Management, Elsevier, vol. 84(C).
    4. Song, Woon-Kyung & Lee, Hyun Cheol, 2020. "An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study," Journal of Air Transport Management, Elsevier, vol. 82(C).
    5. Chiambaretto, Paul, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    6. Gieri Hinnen & Stefanie Lena Hille & Andreas Wittmer, 2017. "Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 197-208, February.
    7. Paul Chiambaretto, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Post-Print hal-03514785, HAL.
    8. Untung Rahardja & Tanaporn Hongsuchon & Taqwa Hariguna & Athapol Ruangkanjanases, 2021. "Understanding Impact Sustainable Intention of S-Commerce Activities: The Role of Customer Experiences, Perceived Value, and Mediation of Relationship Quality," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    9. Chen, Shih-Chih & Lin, Chieh-Peng, 2019. "Understanding the effect of social media marketing activities: The mediation of social identification, perceived value, and satisfaction," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 22-32.
    10. Button, Kenneth, 2019. "Applied economics and understanding trends in air transportation policy," Transport Policy, Elsevier, vol. 80(C), pages 78-85.
    11. Kim, Yukyoung, 2015. "Assessing the effects of perceived value (utilitarian and hedonic) in LCCs and FSCs: Evidence from South Korea," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 17-22.
    12. Zheng, Zhijun & Li, Gang & Cheng, T.C.E & Wu, Feng, 2022. "Offline supplementary service strategies for the online marketplace: Third-party service or marketplace service?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    13. Bogdan AVRAM, 2017. "Ancillaries in the Aviation Industry. Importance, Trends, Going Digital," Expert Journal of Marketing, Sprint Investify, vol. 5(2), pages 53-65.
    14. Cho, Woohyun & Min, Dong-Jun, 2018. "Longitudinal examination of passenger characteristics among airline types in the US," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 11-19.
    15. Rouncivell, Adam & Timmis, Andrew J. & Ison, Stephen G., 2018. "Willingness to pay for preferred seat selection on UK domestic flights," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 57-61.

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