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Modelling the preference for business charter in the cross-strait market

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  • Yen, Jin-Ru
  • Chen, Jing-Xuan

Abstract

This paper aims at investigating business travelers' choice behavior between business charter (BC) and the business class of commercial airlines in the cross-strait market. This study applies the stated preference method and sets five scenarios with the combination of various levels of fares, waiting time, privacy and expedient clearance services and inflight communication equipment. Data were collected by purposive sampling and interviewing business travelers near the VIP centers, departure lounges, and the baggage claim areas of Taiwan Taoyuan International Airport. A sample with 420 business travelers from Taipei to Shanghai was collected. Then, the binary logit model was employed to analyze how service attributes influence Taiwanese business travelers' choice behavior between BC and business class. Estimation results indicate that fare is the most important factor. Other factors such as gender, seniority, and the number of business trips during the previous year remain significant on the probabilities of choosing BC. Additionally, five specific features of BC were set as dummy variables in the model. Those are transfer time saving, travel time controlling, client entertainment, customer visits and international conference attendance. All of them have positive effects on the preference for using BC.

Suggested Citation

  • Yen, Jin-Ru & Chen, Jing-Xuan, 2017. "Modelling the preference for business charter in the cross-strait market," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 151-160.
    • Handle: RePEc:eee:jaitra:v:64:y:2017:i:pb:p:151-160
    DOI: 10.1016/j.jairtraman.2016.08.010
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    References listed on IDEAS

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    Cited by:

    1. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    2. Munoz, Claudia & Laniado, Henry, 2021. "Airline choice model for international round-trip flights: The role of travelers’ satisfaction and personality traits," Research in Transportation Economics, Elsevier, vol. 90(C).

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