Assessment of product debundling trends in the US airline industry: Customer service and public policy implications

Investigating airline customers’ premium coach seat purchases and implications for optimal pricing strategies

“…Our study contributes to this debate by investigating these two research questions. This objective is consistent with prior studies published in Transportation Research Part A that have examined one or more aspects of air travel behavior (e.g., see Brey and Walker, 2011;Chen, 2008;Garrow et al, 2012;Lee et al, 2012;Lu and Peeta, 2009;Peeta et al, 2008;Tsamboulas and Nikoleris, 2008).…”

The rationale for implementing a premium economy class in the long haul markets – Evidence from the transatlantic market

“…Espino, (2008) conducted a multinomial logit model on passenger stated preferences between the Canary Islands archipelago with the Iberian Peninsula and found that travellers were willing to pay almost V34 more than the basic fare for additional legroom for this short haul flight, which indicates that they could be prepared to pay significantly more on long-haul sectors. Garrow et al (2012) disagreed with Espino's research by establishing that the customers of Delta Air Lines were unwilling to pay for the extra leg room on short flights. However when applied to international markets, passengers welcomed the product and were very willing to purchase it, which further endorses the concept that demand exists for a roomier cabin priced slightly higher than economy class.…”

The impact of baggage fees on passenger demand on US air routes

“…Garrow et al (2012) find that the imposition of checked baggage fees in 2008 by the legacy carriers has been effective at increasing revenues. Whereas baggage fee revenues during the period 2007-2009 remained relatively constant for carriers that did not implement the checked baggage charges (e.g., from 0.21% to 0.26% of Southwest Airlines' operating income), they increased significantly for US passenger airlines as a whole (from 0.55% to 2.4%).…”