Investigating the air passengers' preferences of the airline ancillary services

摘要

Traditionally, people pay one airline ticket for all services, including core service, i.e., transportation itself, and non-core ancillary services such as checked baggage, inflight food and drinks, inflight entertainment, and so on. This is called the bundled pricing strategy. However, since low-cost carriers (LCCs) entering into aviation market, the pricing strategy has been turning into unbundled pricing. Although there have been several studies discussing passengers' preferences of the ancillary services and acceptability of the ancillary service pricing, few applied disaggregate behavioral model to analyze air passengers' preferences of ancillary services. This study adopts the best-worst scaling (BWS) is to measure the preference of the ancillary service of passengers and uses Taiwanese passengers bounding for China and Japan as a case. The conclusion and suggestions will be addressed. This will benefit to the academic research and airline industry for new pricing strategy.