IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v64y2017ipbp151-160.html
   My bibliography  Save this article

Modelling the preference for business charter in the cross-strait market

Author

Listed:
  • Yen, Jin-Ru
  • Chen, Jing-Xuan

Abstract

This paper aims at investigating business travelers' choice behavior between business charter (BC) and the business class of commercial airlines in the cross-strait market. This study applies the stated preference method and sets five scenarios with the combination of various levels of fares, waiting time, privacy and expedient clearance services and inflight communication equipment. Data were collected by purposive sampling and interviewing business travelers near the VIP centers, departure lounges, and the baggage claim areas of Taiwan Taoyuan International Airport. A sample with 420 business travelers from Taipei to Shanghai was collected. Then, the binary logit model was employed to analyze how service attributes influence Taiwanese business travelers' choice behavior between BC and business class. Estimation results indicate that fare is the most important factor. Other factors such as gender, seniority, and the number of business trips during the previous year remain significant on the probabilities of choosing BC. Additionally, five specific features of BC were set as dummy variables in the model. Those are transfer time saving, travel time controlling, client entertainment, customer visits and international conference attendance. All of them have positive effects on the preference for using BC.

Suggested Citation

  • Yen, Jin-Ru & Chen, Jing-Xuan, 2017. "Modelling the preference for business charter in the cross-strait market," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 151-160.
    • Handle: RePEc:eee:jaitra:v:64:y:2017:i:pb:p:151-160
    DOI: 10.1016/j.jairtraman.2016.08.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699716303362
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2016.08.010?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. Evangelho, Fabio & Huse, Cristian & Linhares, Alexandre, 2005. "Market entry of a low cost airline and impacts on the Brazilian business travelers," Journal of Air Transport Management, Elsevier, vol. 11(2), pages 99-105.
    2. Budd, Lucy & Graham, Brian, 2009. "Unintended trajectories: liberalization and the geographies of private business flight," Journal of Transport Geography, Elsevier, vol. 17(4), pages 285-292.
    3. Aksoy, Safak & Atilgan, Eda & Akinci, Serkan, 2003. "Airline services marketing by domestic and foreign firms: differences from the customers’ viewpoint," Journal of Air Transport Management, Elsevier, vol. 9(6), pages 343-351.
    4. Mason, Keith J., 2001. "Marketing low-cost airline services to business travellers," Journal of Air Transport Management, Elsevier, vol. 7(2), pages 103-109.
    5. McGillivray, Robert G, 1972. "Binary Choice of Urban Transport Mode in the San Francisco Bay Region," Econometrica, Econometric Society, vol. 40(5), pages 827-848, September.
    6. Fourie, Colette & Lubbe, Berendien, 2006. "Determinants of selection of full-service airlines and low-cost carriers—A note on business travellers in South Africa," Journal of Air Transport Management, Elsevier, vol. 12(2), pages 98-102.
    7. O’Connell, John F. & Williams, George, 2005. "Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 259-272.
    8. Per Gustafson, 2006. "Work-related travel, gender and family obligations," Work, Employment & Society, British Sociological Association, vol. 20(3), pages 513-530, September.
    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. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    2. Munoz, Claudia & Laniado, Henry, 2021. "Airline choice model for international round-trip flights: The role of travelers’ satisfaction and personality traits," Research in Transportation Economics, Elsevier, vol. 90(C).

    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. Henderson, Isaac Levi & Tsui, Kan Wai Hong & Ngo, Thanh & Gilbey, Andrew & Avis, Mark, 2019. "Airline brand choice in a duopolistic market: The case of New Zealand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 147-163.
    2. Milioti, Christina P. & Karlaftis, Matthew G. & Akkogiounoglou, Eleni, 2015. "Traveler perceptions and airline choice: A multivariate probit approach," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 46-52.
    3. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    4. 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.
    5. Chang, Li-Yen & Hung, Shao-Chih, 2013. "Adoption and loyalty toward low cost carriers: The case of Taipei–Singapore passengers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 29-36.
    6. Kim, Seung-Bok & Park, Jin-Woo, 2017. "A study on the importance of airline selection attributes by airline type: An emphasis on the difference of opinion in between Korean and overseas aviation experts," Journal of Air Transport Management, Elsevier, vol. 60(C), pages 76-83.
    7. Han, Seohui & Ham, Seonok (Sunny) & Yang, Ilsun & Baek, Seunghee, 2012. "Passengers’ perceptions of airline lounges: Importance of attributes that determine usage and service quality measurement," Tourism Management, Elsevier, vol. 33(5), pages 1103-1111.
    8. Park, Eunil, 2019. "Corporate social responsibility as a determinant of corporate reputation in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 215-221.
    9. Hunt, Jennifer & Truong, Dothang, 2019. "Low-fare flights across the Atlantic: Impact of low-cost, long-haul trans-Atlantic flights on passenger choice of Carrier," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 170-184.
    10. Chiu, Su-Chin & Liu, Chih-Hsing & Tu, Jin-Hua, 2016. "The influence of tourists' expectations on purchase intention: Linking marketing strategy for low-cost airlines," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 226-234.
    11. Anneli Douglas & Berendien Lubbe, 2009. "Violation of the Corporate Travel Policy: An Exploration of Underlying Value-Related Factors," Journal of Business Ethics, Springer, vol. 84(1), pages 97-111, January.
    12. Liu, Chih-Hsing Sam & Lee, Tingko, 2016. "Service quality and price perception of service: Influence on word-of-mouth and revisit intention," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 42-54.
    13. HakJun Song & Wenjia Ruan & Yunmi Park, 2019. "Effects of Service Quality, Corporate Image, and Customer Trust on the Corporate Reputation of Airlines," Sustainability, MDPI, vol. 11(12), pages 1-14, June.
    14. Özlem Atalık & Mahmut Bakır & Şahap Akan, 2019. "The Role of In-Flight Service Quality on Value for Money in Business Class: A Logit Model on the Airline Industry," Administrative Sciences, MDPI, vol. 9(1), pages 1-15, March.
    15. Chen, I-Shuo, 2016. "A combined MCDM model based on DEMATEL and ANP for the selection of airline service quality improvement criteria: A study based on the Taiwanese airline industry," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 7-18.
    16. Fageda, Xavier & Suau-Sanchez, Pere & Mason, Keith J., 2015. "The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 289-296.
    17. Kuljanin, Jovana & Paskota, Mira & Kalić, Milica, 2018. "Methodological framework for the investigation on the rapidly growing air travel market – An application of multivariate statistical analysis," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 86-91.
    18. Pan, Jing Yu & Truong, Dothang, 2018. "Passengers’ intentions to use low-cost carriers: An extended theory of planned behavior model," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 38-48.
    19. Doong, Her-Sen & Wang, Hui-Chih & Law, Rob, 2008. "An initial investigation of the effect of advertisement and word-of-month on first-time visitors to Hong Kong," Journal of Air Transport Management, Elsevier, vol. 14(3), pages 159-161.
    20. Truong, Dothang & Pan, Jing Yu & Buaphiban, Thapanat, 2020. "Low cost carriers in Southeast Asia: How does ticket price change the way passengers make their airline selection?," Journal of Air Transport Management, Elsevier, vol. 86(C).

    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:64:y:2017:i:pb:p:151-160. 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.