A Study on Air Passengers\' Willingness to Pay and Willingness to Accept for Denied Boarding
| Autor: | Liang, Yu-Ting, 梁喻婷 |
|---|---|
| Rok vydání: | 2019 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 108 Overbooking is one of the revenue management strategies for airlines. However, overbooking may result in denied boarding, the compensation costs of airlines and passengers will not be satisfied with the airline’s service. The previous literature of denied boarding mostly discussed the optimal overbooking strategies from the perspective of airlines, the impacts of denied boarding on service satisfaction, and there’s no literature on travelers’ willingness to accept for denied boarding and willingness to pay to avoid denied boarding. However, the results of willingness to pay and willingness to accept for denied boarding can be used by airlines as a basis when denied boarding to avoid excessive costs and keep passengers satisfied, also be used as a new pricing strategy. The stated preference questionnaire is designed to analyze passengers' preference for denied boarding compensation and the willingness to pay to avoid denied boarding in different situations. The multinomial logit model is estimated, this study also applies the latent class logit model to analyze the heterogeneity of passengers. Furthermore, we quantify passengers’ willingness to pay and willingness to accept for denied boarding. Our results show that in the multinomial logit model, there is a significant difference in willingness to pay and willingness to accept for denied boarding between full-service and low-cost carriers, outbound and inbound, direct flight and the first part of connecting flight, etc. In latent class logit model, one of the two groups comprises passengers who are lower income. For passengers with lower income, there is no significant difference in willingness to pay and willingness to accept for denied boarding between full-service and low-cost carriers, outbound and inbound, also they are more sensitive to additional cost. Denied boarding occurs in the case of low-cost carrier, inbound, direct flight and fail to tell passengers at the check-in counter, lower-income passengers’ willingness to pay is 26% of the fare, willingness to accept is 27% of the fare; higher-income passengers’ willingness to pay is 106% of the fare, willingness to accept is 63% of the fare; weighted average by sample’s income, the median willingness to pay is 79% of the fare and the median willingness to accept is 51% of the fare; taking into account the fare and weighted average by income, the median willingness to pay is 4936(NTD) and the median willingness to accept is 3246(NTD). |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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