Airline Ancillary Services: An Investigation into Passenger Purchase Behavior

Leon, Steven; Uddin, Nizam

doi:10.5399/osu/jtrf.56.1.4411

Cited by 5 publications

(3 citation statements)

References 42 publications

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“…Third, this work enriches the current literature that explores auxiliary services and revenue management in the travel industry. Previous studies focused on factors that affect purchasing auxiliary services, such as sociodemographic factors and product price (Leon and Uddin, 2017). Other scholars examined the effect of supporting auxiliary services on brand satisfaction, loyalty and revenue management (Zieli nska and Ba cík, 2020).…”

Section: Theoretical Implicationsmentioning

confidence: 99%

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The impact of mobile applications on airline ticket purchasing behavior: a quasi-experiment

Chen,

Liu,

Zhang

2023

JHTT

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Purpose This paper aims to investigate the causal inferences between mobile application adoption and changes in travelers’ purchasing behavior regarding services supported by the travel and tourism industry. Design/methodology/approach Using a quasi-experiment conducted by an airline, data sets from more than 10,000 travelers were collected, and hypotheses were tested using propensity score matching and difference-in-difference methods. Findings Mobile application adoption has a significant positive effect on the total purchasing frequency of services and a significant adverse effect on booking tickets in advance and purchasing frequency from self-owned websites. Besides, this finding also suggested that members or travelers who had high average purchases in the past tend to buy more air tickets on average after mobile application adoption, while the number of days to book tickets in advance and purchase auxiliary services declined after mobile application adoption. However, males purchased more auxiliary services via mobile applications. Research limitations/implications The study is based on the causal effect of mobile application adoption on purchasing behavior. Nevertheless, the theoretical basis remains relatively weak. Furthermore, the underlying mechanisms that cause the changes in purchasing behavior via mobile applications need to be elucidated. Practical implications This study enriches the hospitality and tourism literature on mobile application adoptions, multichannel purchasing behavior and revenue management. First, a quasi-experimental design is used to verify a causal relationship between mobile applications’ adoption and travelers’ purchasing behavior in the travel and tourism industry. Second, this study adds to examining travelers’ multichannel purchasing behavior in the travel and tourism industry. Third, this work enriches the current literature that explores auxiliary services and revenue management in the travel industry. Originality/value Mobile application adoption significantly impacted the travel and tourism industry. Besides, To the best of the authors’ knowledge, this is one of the first empirical studies that examined changes in purchasing behavior due to mobile application adoption from the perspective of service type. The findings provide the first evidence of the impact of mobile application adoption on service purchasing in the travel industry.

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Section: Theoretical Implicationsmentioning

confidence: 99%

“…On the demand side (e.g. travelers), studies investigated the antecedents and consequences of purchasing ancillary services, segmentation and commitment (Leon and Uddin, 2017). There is no consistent industry standard definition for ancillary services in the travel industry.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of mobile applications on airline ticket purchasing behavior: a quasi-experiment

Chen,

Liu,

Zhang

2023

JHTT

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“…Additionally, research on carbon taxes and consumers' WTP for green products has offered valuable perspectives on the economic implications and public acceptance of environmental levies, further enriching the discourse on WTP for sustainable practices [9]. Studies included the role of trust, service quality, and ancillary services in shaping passengers' attitudes and behaviours in the aviation industry, highlighting the interconnectedness of various factors influencing willingness to pay for green premiums [10,11]. Additionally, studies on energy efficiencies including optimising routes, reducing fuel consumption, and introducing biofuels have provided a comprehensive understanding of the technological and operational aspects of sustainable aviation, offering insights into the potential strategies for promoting green initiatives in air travel [12,13].…”

Section: Introductionmentioning

confidence: 99%

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Hui,

Itani,

O’Connell

2024

Highlights Sustain.

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This study aims to investigate air travellers’ Willingness to Pay (WTP) for green premiums, specifically focusing on their contribution to reducing carbon emissions generated by air travel. The research integrates the Theory of Planned Behaviour (TPB) and the Contingent Valuation Method (CVM) to estimate the monetary value that air passengers would be willing to pay for environmental initiatives. The TPB provides a theoretical framework to understand the psychological factors influencing individuals’ intentions and behaviours, while the CVM allows for the estimation of the economic value of environmental goods. Drawing on the TPB, this study examines the influence of attitudes, subjective norms, and perceived behavioural control on air travellers’ WTP for green premiums, while considering the determinants and barriers related to ecological goods, and sustainable consumption. The study investigates the potential economic implications of air travellers’ willingness to pay for green premiums, particularly in the context of sustainable aviation fuel options and carbon-related fees. The findings of the survey of a sample of 248 respondents suggest a general willingness among passengers to pay for environmental premiums, notably carbon taxes, with variations in WTP influenced by demographics, travel preferences, environmental values, and awareness. Notably, younger travellers exhibit the highest WTP which is negatively related to the air ticket price. Higher environmental consciousness correlates with greater WTP. The impact of price perception and perceived efficacy of environmental initiatives were also found significant. Financial constraints and scepticism about the credibility of such premiums, however, limit some passengers’ willingness to contribute.

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Consumers’ perceptions of the environmental and public health benefits of last mile drone delivery

Leon,

Chen,

Ratcliffe

2024

International Journal of Logistics Research and Applications

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Airline Ancillary Services: An Investigation into Passenger Purchase Behavior

Cited by 5 publications

References 42 publications

The impact of mobile applications on airline ticket purchasing behavior: a quasi-experiment

The impact of mobile applications on airline ticket purchasing behavior: a quasi-experiment

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Consumers’ perceptions of the environmental and public health benefits of last mile drone delivery

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