IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v127y2019icp192-205.html
   My bibliography  Save this article

Examining customer perception and behaviour through social media research – An empirical study of the United Airlines overbooking crisis

Author

Listed:
  • Ma, Jie
  • Tse, Ying Kei
  • Wang, Xiaojun
  • Zhang, Minhao

Abstract

Airlines have been adopting yield management to optimise the perishable seat control problem and overbooking is a common strategy. This study outlines the connections between yield management, crises, and crisis communication. Using big data captured on a social media platform, this study aims to combine traditional yield management with emerging social big data analytics. As part of this, we use the twitter data on the 2017 United Airline (UA) to analyse the overbooking crisis. Our findings shed light on the importance of a more effective orchestration of yield management to avoid the escalation of crises during crisis communication phases.

Suggested Citation

  • Ma, Jie & Tse, Ying Kei & Wang, Xiaojun & Zhang, Minhao, 2019. "Examining customer perception and behaviour through social media research – An empirical study of the United Airlines overbooking crisis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 192-205.
  • Handle: RePEc:eee:transe:v:127:y:2019:i:c:p:192-205
    DOI: 10.1016/j.tre.2019.05.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554518313310
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tre.2019.05.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Péladeau, Normand & Dagenais, Christian & Ridde, Valéry, 2017. "Concept mapping internal validity: A case of misconceived mapping?," Evaluation and Program Planning, Elsevier, vol. 62(C), pages 56-63.
    2. Mike Thelwall & Kevan Buckley & Georgios Paltoglou & Di Cai & Arvid Kappas, 2010. "Sentiment strength detection in short informal text," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 61(12), pages 2544-2558, December.
    3. Janakiram Subramanian & Shaler Stidham & Conrad J. Lautenbacher, 1999. "Airline Yield Management with Overbooking, Cancellations, and No-Shows," Transportation Science, INFORMS, vol. 33(2), pages 147-167, May.
    4. Barry C. Smith & John F. Leimkuhler & Ross M. Darrow, 1992. "Yield Management at American Airlines," Interfaces, INFORMS, vol. 22(1), pages 8-31, February.
    5. Peter P. Belobaba, 1987. "Survey Paper---Airline Yield Management An Overview of Seat Inventory Control," Transportation Science, INFORMS, vol. 21(2), pages 63-73, May.
    6. Mike Thelwall & Kevan Buckley & Georgios Paltoglou, 2011. "Sentiment in Twitter events," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 62(2), pages 406-418, February.
    7. E. Shlifer & Y. Vardi, 1975. "An Airline Overbooking Policy," Transportation Science, INFORMS, vol. 9(2), pages 101-114, May.
    8. ., 2017. "Economic policy propositions: an overview," Chapters, in: Monetary Policy and Crude Oil, chapter 5, pages 199-222, Edward Elgar Publishing.
    9. Paul Slovic, 1999. "Trust, Emotion, Sex, Politics, and Science: Surveying the Risk‐Assessment Battlefield," Risk Analysis, John Wiley & Sons, vol. 19(4), pages 689-701, August.
    10. Bilotkach, Volodymyr & Gaggero, Alberto A. & Piga, Claudio A., 2015. "Airline pricing under different market conditions: Evidence from European Low-Cost Carriers," Tourism Management, Elsevier, vol. 47(C), pages 152-163.
    11. Guillermo Gallego & Robert Phillips, 2004. "Revenue Management of Flexible Products," Manufacturing & Service Operations Management, INFORMS, vol. 6(4), pages 321-337, January.
    12. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    13. Singh, Akshit & Shukla, Nagesh & Mishra, Nishikant, 2018. "Social media data analytics to improve supply chain management in food industries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 398-415.
    14. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    15. Garrow, Laurie A. & Kressner, Josephine & Mumbower, Stacey, 2011. "Is increasing airline denied boarding compensation limits the answer? Factors that contribute to denied boardings," Journal of Air Transport Management, Elsevier, vol. 17(5), pages 271-277.
    16. Chua, Geoffrey A. & Lim, Wei Shi & Yeo, Wee Meng, 2016. "Market structure and the value of overselling under stochastic demands," European Journal of Operational Research, Elsevier, vol. 252(3), pages 900-909.
    17. Institute for Economics and Peace, 2017. "Positive Peace Report 2016," Working Papers id:11992, eSocialSciences.
    18. Suzuki, Yoshinori, 2002. "An empirical analysis of the optimal overbooking policies for US major airlines," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(2), pages 135-149, April.
    19. Juan M.C. Larrosa, 2017. "Compositional Time Series: Past and Perspectives," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 1, pages 1-1, June.
    20. Mike Thelwall & Kevan Buckley & Georgios Paltoglou, 2011. "Sentiment in Twitter events," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 62(2), pages 406-418, February.
    21. J. Kruskal, 1964. "Multidimensional scaling by optimizing goodness of fit to a nonmetric hypothesis," Psychometrika, Springer;The Psychometric Society, vol. 29(1), pages 1-27, March.
    22. Suzuki, Yoshinori, 2006. "The net benefit of airline overbooking," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(1), pages 1-19, January.
    23. Cécile Wendling & Jack Radisch & Stephane Jacobzone, 2013. "The Use of Social Media in Risk and Crisis Communication," OECD Working Papers on Public Governance 24, OECD Publishing.
    24. Wen-Chyuan Chiang & Jason C.H. Chen & Xiaojing Xu, 2007. "An overview of research on revenue management: current issues and future research," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 1(1), pages 97-128.
    25. Mike Thelwall & Kevan Buckley & Georgios Paltoglou & Di Cai & Arvid Kappas, 2010. "Sentiment strength detection in short informal text," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 61(12), pages 2544-2558, December.
    26. Wang, Xiaojia & Fung, Richard Y.K., 2014. "An option-based hedging mechanism for managing the risk of overbooking in parallel airline alliances," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 146-162.
    27. Marco Alderighi & Marcella Nicolini & Claudio A. Piga, 2015. "Combined Effects of Capacity and Time on Fares: Insights from the Yield Management of a Low-Cost Airline," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 900-915, October.
    28. Wang, Tingsong & Xing, Zheng & Hu, Hongtao & Qu, Xiaobo, 2019. "Overbooking and delivery-delay-allowed strategies for container slot allocation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 433-447.
    29. Fu, Xiaowen & Dresner, Martin & Oum, Tae H., 2011. "Effects of transport service differentiation in the US domestic airline market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(3), pages 297-305, May.
    30. Lawrence R. Weatherford & Samuel E. Bodily, 1992. "A Taxonomy and Research Overview of Perishable-Asset Revenue Management: Yield Management, Overbooking, and Pricing," Operations Research, INFORMS, vol. 40(5), pages 831-844, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dalalah, Doraid & Ojiako, Udechukwu & Chipulu, Maxwell, 2020. "Voluntary overbooking in commercial airline reservations," Journal of Air Transport Management, Elsevier, vol. 86(C).
    2. Hong, Seock-Jin & Savoie, Michael & Joiner, Steve & Kincaid, Timothy, 2022. "Analysis of airline employees’ perceptions of corporate preparedness for COVID-19 disruptions to airline operations," Transport Policy, Elsevier, vol. 119(C), pages 45-55.
    3. Pacheco Paneque, Meritxell & Bierlaire, Michel & Gendron, Bernard & Sharif Azadeh, Shadi, 2021. "Integrating advanced discrete choice models in mixed integer linear optimization," Transportation Research Part B: Methodological, Elsevier, vol. 146(C), pages 26-49.
    4. Yusaku Nishimura & Xuyi Dong & Bianxia Sun, 2021. "Trump's tweets: Sentiment, stock market volatility, and jumps," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(3), pages 497-512, September.
    5. Choi, Tsan-Ming & Guo, Shu & Luo, Suyuan, 2020. "When blockchain meets social-media: Will the result benefit social media analytics for supply chain operations management?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Syed Asif Raza & Rafi Ashrafi & Ali Akgunduz, 2020. "A bibliometric analysis of revenue management in airline industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 436-465, December.
    2. Fukui, Hideki & Nagata, Koki, 2020. "How do passengers react to airlines’ overbooking strategies? Evidence from the US airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 242-255.
    3. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    4. Itir Karaesmen & Garrett van Ryzin, 2004. "Overbooking with Substitutable Inventory Classes," Operations Research, INFORMS, vol. 52(1), pages 83-104, February.
    5. Gaggero, Alberto A. & Ogrzewalla, Lukas & Bubalo, Branko, 2019. "Pricing of the long-distance bus service in Europe: The case of Flixbus," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    6. Alderighi, Marco & Nicolini, Marcella & Piga, Claudio A., 2019. "Is low-cost carriers’ revenue management a firm capability?," Journal of Air Transport Management, Elsevier, vol. 78(C), pages 15-22.
    7. Steinhardt, Claudius & Gönsch, Jochen, 2012. "Integrated revenue management approaches for capacity control with planned upgrades," European Journal of Operational Research, Elsevier, vol. 223(2), pages 380-391.
    8. Yoon, Moon Gil & Lee, Hwi Young & Song, Yoon Sook, 2012. "Linear approximation approach for a stochastic seat allocation problem with cancellation & refund policy in airlines," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 41-46.
    9. Alavi Fard, Farzad & Sy, Malick & Ivanov, Dmitry, 2019. "Optimal overbooking strategies in the airlines using dynamic programming approach in continuous time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 384-399.
    10. Lipizzi, Carlo & Iandoli, Luca & Ramirez Marquez, José Emmanuel, 2015. "Extracting and evaluating conversational patterns in social media: A socio-semantic analysis of customers’ reactions to the launch of new products using Twitter streams," International Journal of Information Management, Elsevier, vol. 35(4), pages 490-503.
    11. J-M Chen & L-T Chen, 2004. "Pricing and lot-sizing for a deteriorating item in a periodic review inventory system with shortages," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 892-901, August.
    12. Ping-Yu Hsu & Hong-Tsuen Lei & Shih-Hsiang Huang & Teng Hao Liao & Yao-Chung Lo & Chin-Chun Lo, 2019. "Effects of sentiment on recommendations in social network," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(2), pages 253-262, June.
    13. Kavitha Balaiyan & R. K. Amit & Atul Kumar Malik & Xiaodong Luo & Amit Agarwal, 2019. "Joint forecasting for airline pricing and revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(6), pages 465-482, December.
    14. Alderighi, Marco & Gaggero, Alberto A. & Piga, Claudio A., 2022. "Hidden prices with fixed inventory: Evidence from the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 42-61.
    15. Maddah, Bacel & Moussawi-Haidar, Lama & El-Taha, Muhammad & Rida, Hussein, 2010. "Dynamic cruise ship revenue management," European Journal of Operational Research, Elsevier, vol. 207(1), pages 445-455, November.
    16. Luo, Sirong & Çakany?ld?r?m, Metin & Kasilingam, Raja G., 2009. "Two-dimensional cargo overbooking models," European Journal of Operational Research, Elsevier, vol. 197(3), pages 862-883, September.
    17. Heleen Brans & Bert Scholtens, 2020. "Under his thumb the effect of president Donald Trump’s Twitter messages on the US stock market," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-11, March.
    18. Oleg S. Nagornyy & Olessia Y. Koltsova, 2017. "Mining Media Topics Perceived as Social Problems by Online Audiences: Use of a Data Mining Approach in Sociology," HSE Working papers WP BRP 74/SOC/2017, National Research University Higher School of Economics.
    19. Lan, Yingjie & Ball, Michael O. & Karaesmen, Itir Z. & Zhang, Jean X. & Liu, Gloria X., 2015. "Analysis of seat allocation and overbooking decisions with hybrid information," European Journal of Operational Research, Elsevier, vol. 240(2), pages 493-504.
    20. Sandra González-Bailón & Georgios Paltoglou, 2015. "Signals of Public Opinion in Online Communication," The ANNALS of the American Academy of Political and Social Science, , vol. 659(1), pages 95-107, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:127:y:2019:i:c:p:192-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.