The future of ancillary service fees in air travel : an exploratory investigation of budget air travellers
Journal
International Journal of Aviation Management
ISSN
1755-9901
ISSN-Digital
1755-991X
Type
journal article
Date Issued
2012
Author(s)
Abstract
Ancillary service fees are often associated with Low-Cost Carriers (LCC). However, today, more and more Full Service Carriers (FSC) have introduced such fees as well and service chains of LCC's and FSC's look very similar. This article compares different European Airlines in terms of ancillary fees and services for the low yield passenger segment and based on a passenger survey, it researches into the question what the Budget air traveler of today really wants when he/she books a flight. Interestingly, the willingness-to-pay and the willingness-to-use selected service elements differ between Budget air travelers of a FSC and those of a LCC. Generally, passengers of LCC's would pay higher amounts for additional service attributes than passengers of FSC's. However, the main lesson is clear: There are additional service elements that add value to budget air travelers and the latter are generally willing to pay considerable amounts for these value-adding propositions.
Language
English
Keywords
service fee
aviation
low-cost carriers
full service carriers
budget air travel
unbundling
price attitude
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience Enterprises
Publisher place
Genève [u.a.]
Volume
1
Number
4
Start page
231
End page
241
Pages
11
Subject(s)
Division(s)
Eprints ID
221138