IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v166y2025icp166-178.html
   My bibliography  Save this article

Exploring passengers’ choices in the event of denied boarding compensation

Author

Listed:
  • Tsai, Tsung-Hsien
  • Chen, Chien-Min

Abstract

Overbooking practices are widely adopted to mitigate the impact of airline cancellations and no-shows. However, when denied boarding occurs, appropriately compensating passengers is crucial for maintaining satisfaction and securing yield. This study investigates the attributes influencing passengers’ preferences for compensations when they voluntarily accept denied boarding. A holistic framework encompassing compensations at different stages is proposed to conduct a choice experiment. Face-to-face questionnaires are collected at the airport and discrete choice models are applied to verify the framework. The results confirm behavioral heterogeneity and identify three segments with varying preferences for compensation attributes. A simulation further reveals the incremental effects of probabilities given different compensations. These findings enable service operators to implement segment-oriented compensation plans that encourage the acceptance of denied boarding while maintaining customer satisfaction.

Suggested Citation

  • Tsai, Tsung-Hsien & Chen, Chien-Min, 2025. "Exploring passengers’ choices in the event of denied boarding compensation," Transport Policy, Elsevier, vol. 166(C), pages 166-178.
    • Handle: RePEc:eee:trapol:v:166:y:2025:i:c:p:166-178
    DOI: 10.1016/j.tranpol.2025.03.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X25000915
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2025.03.002?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.

    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:trapol:v:166:y:2025:i:c:p:166-178. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/30473/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.