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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.
    2. Andrus Kotri, 2006. "Analyzing Customer Value Using Conjoint Analysis: The Example Of A Packaging Company," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 46, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    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.
    4. Bieger, Thomas & Wittmer, Andreas & Laesser, Christian, 2007. "What is driving the continued growth in demand for air travel? Customer value of air transport," Journal of Air Transport Management, Elsevier, vol. 13(1), pages 31-36.
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    Cited by:

    1. 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.
    2. 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).
    3. 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).
    4. Paul Chiambaretto, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Post-Print hal-03514785, HAL.
    5. 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.
    6. Button, Kenneth, 2019. "Applied economics and understanding trends in air transportation policy," Transport Policy, Elsevier, vol. 80(C), pages 78-85.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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).
    12. 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.
    13. 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.
    14. 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).
    15. Bogdan AVRAM, 2017. "Ancillaries in the Aviation Industry. Importance, Trends, Going Digital," Expert Journal of Marketing, Sprint Investify, vol. 5(2), pages 53-65.

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