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

Mumbower, Stacey; Garrow, Laurie A.; Newman, J. C.

doi:10.1016/j.tra.2014.12.008

Cited by 18 publications

(20 citation statements)

References 22 publications

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“…This result may be due to the lack of features of the middle seat: no window, and it lacks easy access to the aisle and overhead-bin space. Thus reinforcing the work of Weinstein and Keller (2016) and Mumbower et al (2015): there is no demand for the middle seat as a passenger's preferred seat. The implementation of passenger seat selection may give rise to a lack of consecutive seats for party bookings (of two or more travellers) to be seated together.…”

Section: Figure 1 Willingness To Pay For Preferred Seat Selectionmentioning

confidence: 62%

“…Thus, the information provided to customers in the process of purchasing ancillary products can influence their buying behaviour. Mumbower et al (2015) have previously demonstrated how seat availability maps can influence the customer decision making process in purchasing a premium coach seat product: a passenger is twice as likely to purchase a premium seat if the seat map is shown to be nearly full compared to a nearly empty plane.…”

Section: Figure 1 Willingness To Pay For Preferred Seat Selectionmentioning

confidence: 99%

“…Firstly, previous studies into WTP for seat selection have only examined WTP for the purchase of products with added passenger value ex-post their introduction e.g. premium coach (economy): extra leg-room, priority boarding, larger seat pitch (Hinnen et al, 2015;Mumbower et al, 2015) or, examined customer preferences and perceived fairness of ancillary services, e.g. the introduction of fees for previously free services (Waguespack and Rhoades, 2014;Wittmer and Rowley, 2014;O'Connell and Warnock-Smith, 2013).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Willingness to pay for preferred seat selection on UK domestic flights

Rouncivell

Timmis

Ison

2018

Journal of Air Transport Management

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This study employs a stated preference method to elicit and explore customer willingness to pay for airline ancillary products, specifically seat selection fees. Bivariate correlations are used to investigate linkages between passenger attributes and opinions with stated values for seat selection under a range of scenarios on UK domestic services.The sensitivity of consumers to ticket fares, for both business and non-business travel, is found to be negatively correlated with the stated willingness to pay for their preferred seat. On the other hand, customer perceptions of airline reputation and convenience of flight times is positively correlated to willingness to pay for seat selection on non-business travel. Additionally, the previous purchase of a seat selection product is strongly correlated to future willingness to pay for seat selection on both business and non-business travel. This is deemed to be the result of consumers being better able to value the benefits of their chosen seat from past experience.This research expands on the current literature regarding the growing importance of airline ancillary revenue. The results provide an evidence base for the development of revenue management and the marketing of seat selection fees as an ancillary product.

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Section: Figure 1 Willingness To Pay For Preferred Seat Selectionmentioning

confidence: 62%

Section: Figure 1 Willingness To Pay For Preferred Seat Selectionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Willingness to pay for preferred seat selection on UK domestic flights

Rouncivell

Timmis

Ison

2018

Journal of Air Transport Management

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“…Despite the prevalence and growing importance of ancillary service fees, few academic studies have examined the factors that lead to customers purchasing ancillary services and their willingness to pay fees for such services (Mumbower, Garrow and Newman, 2015). Ancillary services are a relatively undeveloped academic research area and more research in this area could be done (Espino, Martiìn and Romaìn, 2008;Ødegaard and Wilson, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Lee and Luengo-Prado (2004) compared business and leisure travelers and their willingness to pay for additional legroom on two U.S. legacy airlines and Mumbower, Garrow and Newman (2015) investigated influential factors that led airline customers' purchase of premium coach seats at JetBlue Airlines.…”

Section: Literature Reviewmentioning

confidence: 99%

Data-driven insights: Assessment of airline ancillary services

Leon

Uddin

2017

JTM

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Airlines increasingly rely on ancillary service fees for revenue generation. As a result, many ancillary services have been conceived and implemented. However, each customer does not desire to purchase every ancillary service. This research examines the heterogeneity among U.S. international airline passengers and their willingness to pay for assorted ancillary services. Antecedents to purchase intention and actual purchase behavior were evaluated using Amazon Mechanical Turk for data collection. Our results show that there are differences in airline passenger preferences when purchasing ancillary services on international flights. The number of times a passenger flies in a year and the reason for travel are found to be consistently significant. Occasionally, age and income are found to be significant. These findings will be very useful to airline marketing executives and could help to assure consumers receive the services they want at the price levels they are willing to pay.

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