IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v33y2013icp12-21.html
   My bibliography  Save this article

An investigation into traveler preferences and acceptance levels of airline ancillary revenues

Author

Listed:
  • O'Connell, John F.
  • Warnock-Smith, David

Abstract

This study determines traveler preferences and acceptability levels for a range of airline ancillary products and services by employing an on-line passenger survey to examine booking preferences as well as attitudes toward a selection of air and non-air travel components sold by the airlines. The survey results are combined with expert opinions collated from a recent international conference, along with secondary data, to generate an acceptance ranking which can be used by a range of airlines to formulate their ancillary revenue strategies. It is found that airport car parking and checked baggage charges proved to be the most accepted commission based and unbundled products for airlines to sell respectively. Despite the recent focus and successes in ancillary revenues, however, it can also observed that none of the ancillary products and services examined in this study achieved a high take up rating suggesting that airlines can do much more to convince travelers of the benefit and value in airlines selling non-core products and services to them.

Suggested Citation

  • O'Connell, John F. & Warnock-Smith, David, 2013. "An investigation into traveler preferences and acceptance levels of airline ancillary revenues," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 12-21.
    • Handle: RePEc:eee:jaitra:v:33:y:2013:i:c:p:12-21
    DOI: 10.1016/j.jairtraman.2013.06.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699713000677
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2013.06.006?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.

    References listed on IDEAS

    as
    1. AfDB AfDB, . "AfDB Group Annual Report in Brief 2009," Annual Report, African Development Bank, number 65 edited by Koua Louis Kouakou.
    2. de Boer, Evert R. & Gudmundsson, Sveinn Vidar, 2012. "30 years of frequent flyer programs," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 18-24.
    3. AfDB AfDB, . "AfDB Group Annual Report 2009," Annual Report, African Development Bank, number 66 edited by Koua Louis Kouakou.
    4. AfDB AfDB, . "Annual Report in Brief 2010," Annual Report, African Development Bank, number 304.
    5. AfDB AfDB, . "AfDB Group Annual Report 2010," Annual Report, African Development Bank, number 310.
    6. AfDB AfDB, . "AfDB Group Annual Report 2009 (Arabic)," Annual Report, African Development Bank, number 68 edited by Koua Louis Kouakou.
    7. Baji, Petra & Pavlova, Milena & Gulácsi, LászlÓ & Groot, Wim, 2011. "User fees for public health care services in Hungary: Expectations, experience, and acceptability from the perspectives of different stakeholders," Health Policy, Elsevier, vol. 102(2), pages 255-262.
    8. AfDB AfDB, . "AfDB Group Annual Report 2010 (Arabic)," Annual Report, African Development Bank, number 311.
    9. Martín, Juan Carlos & Román, Concepción & Espino, Raquel, 2011. "Evaluating frequent flyer programs from the air passengers' perspective," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 364-368.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Onur Bas & Tamer Aksoy, 2022. "Examining the impact of cargo and ancillary revenues on net profit for full service carrier airlines," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 4(3), pages 48-72, July.
    2. O'Connell, John F. & Avellana, Raquel Martinez & Warnock-Smith, David & Efthymiou, Marina, 2020. "Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines," Journal of Air Transport Management, Elsevier, vol. 84(C).
    3. Jost Daft & Sascha Albers & Sebastian Stabenow, 2021. "From product-oriented flight providers to customer-centric retailers: a dynamic offering framework and implementation guidelines for airlines," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 615-625, December.
    4. Warnock-Smith, David & O'Connell, John F. & Maleki, Mahnaz, 2017. "An analysis of ongoing trends in airline ancillary revenues," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 42-54.
    5. Pardo González, Germán & Tabares Pozos, Alejandra & Quiroga, Camilo & à lvarez-Martínez, David, 2024. "Seat assignment recommendation in airlines purchase flow to increase ancillary revenue considering weight and balance constraints," Journal of Air Transport Management, Elsevier, vol. 117(C).
    6. Renold, Manuel & Vollenweider, Janik & Mijović, Nemanja & Kuljanin, Jovana & Kalić, Milica, 2023. "Methodological framework for a deeper understanding of airline profit cycles in the context of disruptive exogenous impacts," Journal of Air Transport Management, Elsevier, vol. 106(C).
    7. Stacey Mumbower & Susan Hotle & Laurie A. Garrow, 2023. "Highly debated but still unbundled: The evolution of U.S. airline ancillary products and pricing strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 276-293, August.
    8. Ren, Xinhui & Pan, Na & Jiang, Hong, 2022. "Differentiated pricing for airline ancillary services considering passenger choice behavior heterogeneity and willingness to pay," Transport Policy, Elsevier, vol. 126(C), pages 292-305.
    9. Song, Woon-Kyung & Lee, Hyun Cheol, 2020. "An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study," Journal of Air Transport Management, Elsevier, vol. 82(C).
    10. Chiambaretto, Paul, 2021. "Air passengers’ willingness to pay for ancillary services on long-haul flights," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    11. Alderighi, Marco & Nava, Consuelo R. & Calabrese, Matteo & Christille, Jean-Marc & Salvemini, Chiara B., 2022. "Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com," Journal of Business Research, Elsevier, vol. 145(C), pages 769-783.
    12. Zhao, Guihong & Cui, Yue & Cheng, Shaoyu, 2021. "Dynamic pricing of ancillary services based on passenger choice behavior," Journal of Air Transport Management, Elsevier, vol. 94(C).
    13. Leon, Steven & Uddin, Nizam, 2017. "Airline Ancillary Services: An Investigation into Passenger Purchase Behavior," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 56(1), April.
    14. Button, Kenneth, 2019. "Applied economics and understanding trends in air transportation policy," Transport Policy, Elsevier, vol. 80(C), pages 78-85.
    15. Shaw, Mark & Tiernan, Siobhan & O'Connell, John F. & Warnock-Smith, David & Efthymiou, Marina, 2021. "Third party ancillary revenues in the airline sector: An exploratory study," Journal of Air Transport Management, Elsevier, vol. 90(C).
    16. Alderighi, Marco & Nicolini, Marcella & Piga, Claudio A., 2019. "Is low-cost carriers’ revenue management a firm capability?," Journal of Air Transport Management, Elsevier, vol. 78(C), pages 15-22.
    17. Mantin, Benny & Rubin, Eran, 2018. "Price volatility and market performance measures: The case of revenue managed goods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 35-50.
    18. Andreas Krämer & Mark Friesen & Tom Shelton, 2018. "Are airline passengers ready for personalized dynamic pricing? A study of German consumers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(2), pages 115-120, April.
    19. Bogdan AVRAM, 2017. "Ancillaries in the Aviation Industry. Importance, Trends, Going Digital," Expert Journal of Marketing, Sprint Investify, vol. 5(2), pages 53-65.
    20. Ko, Young Dae & Kwag, Sung Il & Oh, Yonghui, 2020. "An efficient airline seat reallocation algorithm considering customer dissatisfaction," Journal of Air Transport Management, Elsevier, vol. 85(C).
    21. Rouncivell, Adam & Timmis, Andrew J. & Ison, Stephen G., 2018. "Willingness to pay for preferred seat selection on UK domestic flights," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 57-61.
    22. Arinbjörn Kolbeinsson & Naman Shukla & Akhil Gupta & Lavanya Marla & Kartik Yellepeddi, 2022. "Galactic Air Improves Ancillary Revenues with Dynamic Personalized Pricing," Interfaces, INFORMS, vol. 52(3), pages 233-249, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Panwar, N.L. & Kaushik, S.C. & Kothari, Surendra, 2012. "State of the art of solar cooking: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3776-3785.
    2. Obeng, K. & Sakano, R., 2012. "Airline fare and seat management strategies with demand dependency," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 42-48.
    3. Saeed Saadat & Muffatto Moreno & Yousafzai Shumaila, 2014. "A Multi-level Study of Entrepreneurship Education among Pakistani University Students," Entrepreneurship Research Journal, De Gruyter, vol. 4(3), pages 297-321, July.
    4. Fullerton, Thomas M. & Juarez, David A. & Walke, Adam G., 2012. "Residential electricity consumption in Seattle," Energy Economics, Elsevier, vol. 34(5), pages 1693-1699.
    5. Duan, Jin-Chuan & Van Laere, Elisabeth, 2012. "A public good approach to credit ratings – From concept to reality," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3239-3247.
    6. Meslier, Céline & Tacneng, Ruth & Tarazi, Amine, 2014. "Is bank income diversification beneficial? Evidence from an emerging economy," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 31(C), pages 97-126.
    7. Kuo, Chung-Wei & Jou, Rong-Chang & Lin, Shu-Wun, 2012. "Turnover intention of air traffic controllers in Taiwan: A note," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 50-52.
    8. Carlos Vidal-Meliá & Mar𨁤el Carmen Boado-Penas, 2013. "Compiling the actuarial balance for pay-as-you-go pension systems. Is it better to use the hidden asset or the contribution asset?," Applied Economics, Taylor & Francis Journals, vol. 45(10), pages 1303-1320, April.
    9. Vadiee, Amir & Martin, Viktoria, 2013. "Energy analysis and thermoeconomic assessment of the closed greenhouse – The largest commercial solar building," Applied Energy, Elsevier, vol. 102(C), pages 1256-1266.
    10. Robert Cull & Asli Demirgüç-Kunt & Jonathan Morduch, 2014. "Banks and Microbanks," Journal of Financial Services Research, Springer;Western Finance Association, vol. 46(1), pages 1-53, August.
    11. Lofgren, Hans & Cicowiez, Martin & Diaz-Bonilla, Carolina, 2013. "MAMS – A Computable General Equilibrium Model for Developing Country Strategy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 159-276, Elsevier.
    12. Olivier Mahul & Emily White, 2012. "Earthquake Risk Insurance," World Bank Publications - Reports 16149, The World Bank Group.
    13. Predrag Rajsic & Glenn Fox, 2017. "Quota prices as indicators of comparative advantage in supply-managed industries," Agricultural Economics, International Association of Agricultural Economists, vol. 48(2), pages 165-174, March.
    14. E. Calvert & Brian Nolan & Tony Fahey & D. Healy & A. Mulcahy & B. Maître & Michelle Norris & I. O’Donnell & Nessa Winston & Christopher Whelan, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Ireland," GINI Country Reports ireland, AIAS, Amsterdam Institute for Advanced Labour Studies.
    15. Tabak, Benjamin M. & de Castro Miranda, Rodrigo & da Silva Medeiros, Maurício, 2016. "Contagion in CDS, banking and equity markets," Economic Systems, Elsevier, vol. 40(1), pages 120-134.
    16. Wagner, Liam & Molyneaux, Lynette & Foster, John, 2014. "The magnitude of the impact of a shift from coal to gas under a Carbon Price," Energy Policy, Elsevier, vol. 66(C), pages 280-291.
    17. Independent Evaluation Group, 2013. "Assessing the Monitoring and Evaluation Systems of IFC and MIGA : Biennial Report on Operations Evaluation," World Bank Publications - Books, The World Bank Group, number 15793.
    18. repec:ags:jrapmc:122308 is not listed on IDEAS
    19. Francesca Giambona & Erasmo Vassallo, 2014. "Composite Indicator of Social Inclusion for European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(1), pages 269-293, March.
    20. Tiwari, Rajnish & Herstatt, Cornelius, 2013. "Innovieren für preisbewusste Kunden: Analogieeinsatz als Erfolgsfaktor in Schwellenländern," Working Papers 75, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    21. Fang, Baling & Yin, Xiang & Tan, Yi & Li, Canbing & Gao, Yunpeng & Cao, Yijia & Li, Jianliang, 2016. "The contributions of cloud technologies to smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1326-1331.

    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:jaitra:v:33:y:2013:i:c:p:12-21. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.journals.elsevier.com/journal-of-air-transport-management/ .

    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.