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Student’s vacation travel: A reference dependent model of airline fares preferences

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  • Grigolon, Anna B.
  • Kemperman, Astrid D.A.M.
  • Timmermans, Harry J.P.

Abstract

This article reports the results of student vacation travel choice analysis using a reference dependent model of airline fare preferences. Findings suggests, as expected, that the preferences/utility decreases with increasing levels of cost. The evaluation of the airfare, however, becomes significantly more critical in the regime were low-fare airlines are more expensive than the regular airlines, meaning that price sensitivity for low-fare airlines is higher in this case. Part-worth utility functions for airfare as part of a more general portfolio model of vacation decisions of students suggest that indeed a reference dependent model captures such regimes in utility space.

Suggested Citation

  • Grigolon, Anna B. & Kemperman, Astrid D.A.M. & Timmermans, Harry J.P., 2012. "Student’s vacation travel: A reference dependent model of airline fares preferences," Journal of Air Transport Management, Elsevier, vol. 18(1), pages 38-42.
    • Handle: RePEc:eee:jaitra:v:18:y:2012:i:1:p:38-42
    DOI: 10.1016/j.jairtraman.2011.08.002
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    References listed on IDEAS

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    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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    3. Zhang, Junyi & Timmermans, Harry J. P. & Borgers, Aloys, 2005. "A model of household task allocation and time use," Transportation Research Part B: Methodological, Elsevier, vol. 39(1), pages 81-95, January.
    4. De Borger, Bruno & Fosgerau, Mogens, 2008. "The trade-off between money and travel time: A test of the theory of reference-dependent preferences," Journal of Urban Economics, Elsevier, vol. 64(1), pages 101-115, July.
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    Cited by:

    1. Park, Subin & Lee, Jongsu & Kim, Junghun, 2024. "Exploring the fittest choice model for consumer preference analysis on over-the-top service," Technology in Society, Elsevier, vol. 76(C).
    2. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part I. Integrative synthesis of empirical evidence and conceptualisation of external validity," Papers 2102.02940, arXiv.org.
    3. Hagmann, Carmen & Semeijn, Janjaap & Vellenga, David B., 2015. "Exploring the green image of airlines: Passenger perceptions and airline choice," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 37-45.

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