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What is driving the continued growth in demand for air travel? Customer value of air transport

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  • Bieger, Thomas
  • Wittmer, Andreas
  • Laesser, Christian

Abstract

This article introduces the concept of customer value as a driving factor for continued growth in demand and eliminates a subversion of the customer-value theory for the air-transport industry. This theoretical framework includes risk as subcomponents of perceived relative benefits as well as perceived relative costs. Based on data of a survey the weight of the different influential factors is evaluated. Management implications as well as methodological learning for the measurement of customer value are derived. The key conclusion thereby is that a stronger focus on customer value will be a key challenge of airline management. Important developments take place at the lower and upper end of the price and quality ranges. Thereby the orientation should be directed by the real, often hidden and not only to the stated preferences of customers.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jaitra:v:13:y:2007:i:1:p:31-36
    DOI: 10.1016/j.jairtraman.2006.11.002
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    References listed on IDEAS

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    1. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
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    Cited by:

    1. Boonekamp, Thijs & Zuidberg, Joost & Burghouwt, Guillaume, 2018. "Determinants of air travel demand: The role of low-cost carriers, ethnic links and aviation-dependent employment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 18-28.
    2. Truong, Dothang, 2021. "Estimating the impact of COVID-19 on air travel in the medium and long term using neural network and Monte Carlo simulation," Journal of Air Transport Management, Elsevier, vol. 96(C).
    3. Escobari, Diego, 2014. "Estimating dynamic demand for airlines," Economics Letters, Elsevier, vol. 124(1), pages 26-29.
    4. Akinyemi, Yingigba Chioma, 2023. "Air cargo demand in Africa: Application of cointegration and error correction modelling techniques," Journal of Air Transport Management, Elsevier, vol. 109(C).
    5. 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.
    6. Andreea Marin-Pantelescu, 2016. "The Pricing Evolution in the Air Transportation Industry. Implication for the Romanian Tourism Sector in the Era of Globalization," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(2), pages 88-99, June.
    7. Yurii Hrinchenko, 2020. "The Ecosystem Approach to the Aviation Industry Development Policy," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(2), pages 71-84, June.
    8. 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.

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