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Segmentation of passengers using full-service and low-cost carriers – Evidence from Taiwan

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  • Lu, Jin-Long

Abstract

Low-cost carriers in Taiwan have rapidly drawn a large number of passengers away from full-service carriers in recent years. However, many passengers still stick with traditional airlines as their primary air carriers. These two groups of passengers should differ in terms of their personal and trip characteristics, valuations of factors in determining an airline, and perceptions of need for ancillary services. The present paper compares the profiles of passengers using different types of air services in Taiwan using data collected from an online survey and assesses the potential of principal component analysis with biplot technique to define different passengers based on their preferences of services and valuations of the importance of factors. Our study shows that passengers of full-service and low-cost carriers have different trip characteristics; principal component analysis is applicable for this context of passenger profile segmentations.

Suggested Citation

  • Lu, Jin-Long, 2017. "Segmentation of passengers using full-service and low-cost carriers – Evidence from Taiwan," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 204-216.
    • Handle: RePEc:eee:jaitra:v:62:y:2017:i:c:p:204-216
    DOI: 10.1016/j.jairtraman.2017.05.002
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    Citations

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    Cited by:

    1. Jing Yu Pan & Dothang Truong, 0. "Low cost carriers in China: passenger segmentation, controllability, and airline selection," Transportation, Springer, vol. 0, pages 1-26.
    2. Rodrigo Acuna-Agost & Eoin Thomas & Alix Lhéritier, 2021. "Price elasticity estimation for deep learning-based choice models: an application to air itinerary choices," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(3), pages 213-226, June.
    3. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2023. "Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-24, December.
    4. Khan, Nokhaiz Tariq & Jung, Gisun & Kim, Jaebum & Kim, Yun Bae, 2019. "Evolving competition between low-cost carriers and full-service carriers: The case of South Korea," Journal of Transport Geography, Elsevier, vol. 74(C), pages 1-9.
    5. Jing Yu Pan & Dothang Truong, 2021. "Low cost carriers in China: passenger segmentation, controllability, and airline selection," Transportation, Springer, vol. 48(4), pages 1587-1612, August.
    6. Cho, Woohyun & Min, Dong-Jun, 2018. "Longitudinal examination of passenger characteristics among airline types in the US," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 11-19.
    7. Choi, Jong Hae & Park, Yonghwa, 2022. "Exploring passenger and flight characteristics' impacts on airport retail income: Evidence from Incheon International Airport," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    8. Tan, Wee-Kheng & Wang, Wei-Jie, 2021. "The application of information values and construal level theory for examining low cost carrier advertisements," Journal of Air Transport Management, Elsevier, vol. 90(C).
    9. Soojung Kim & Jinsoo Hwang, 2023. "Airline CSR and Quality Attributes as Driving Forces of Passengers’ Brand Love: Comparing Full-Service Carriers with Low-Cost Carriers," Sustainability, MDPI, vol. 15(9), pages 1-14, April.
    10. Eunmin (Min) Hwang & Yen-Soon Kim & Hyo Geun Song, 2023. "Airline Passengers’ Willingness to Reserve Inflight Meals Online and Their Willingness to Pay for Meal Upgrades: The Case Study of U.S. Students," Sustainability, MDPI, vol. 15(10), pages 1-22, May.
    11. Choi, Jong Hae, 2021. "Changes in airport operating procedures and implications for airport strategies post-COVID-19," Journal of Air Transport Management, Elsevier, vol. 94(C).
    12. Chiambaretto, Paul & Combe, Emmanuel, 2023. "Business model hybridization but heterogeneous economic performance: Insights from low-cost and legacy carriers in Europe," Transport Policy, Elsevier, vol. 136(C), pages 83-97.
    13. Avogadro, Nicolò & Malighetti, Paolo & Redondi, Renato & Salanti, Andrea, 2021. "A tale of airline competition: When full-service carriers undercut low-cost carriers fares," Journal of Air Transport Management, Elsevier, vol. 92(C).
    14. Halpern, Nigel & Mwesiumo, Deodat & Budd, Thomas & Suau-Sanchez, Pere & Bråthen, Svein, 2021. "Segmentation of passenger preferences for using digital technologies at airports in Norway," Journal of Air Transport Management, Elsevier, vol. 91(C).

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