A Study of Consumers’ Preferences for Services Provided by Low-Cost Carriers

碩士 === 國立中興大學 === 應用經濟學系所 === 105 === In recent years in Taiwan, the entry of low-cost carriers has changed the structure of domestic aviation market. The total carrying capacity in terms of passenger volume of low-cost carriers experienced a tremendous increase from about 790,000 in 2011 to about...

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Bibliographic Details
Main Authors: Ting-Wei Li, 李庭葦
Other Authors: Yun-Ju Chen
Format: Others
Language:zh-TW
Published: 2017
Online Access:http://ndltd.ncl.edu.tw/handle/33720441751290473177
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Summary:碩士 === 國立中興大學 === 應用經濟學系所 === 105 === In recent years in Taiwan, the entry of low-cost carriers has changed the structure of domestic aviation market. The total carrying capacity in terms of passenger volume of low-cost carriers experienced a tremendous increase from about 790,000 in 2011 to about 4.6 million people in 2015, denoting a more than five-fold growth. In addition, the market share increased from 2.5% to 9.8% during the same period. However, compared with Singapore, which has a market share of 28%, and the average market share of other countries at 20%, the low-cost aviation market in Taiwan still has room for growth. To enhance the competitiveness of Taiwan’s aviation market, this study aimed to explore consumers’ preferences for services provided in low-cost carriers. For analysis, we used the choice experiment to conduct the questionnaire. The attributes studied in this research included fare (P), in-flight meals (MEAL), seat pitch (CH), non-stop flight services (DIR), compensation in case of delay (COM) and Wi-Fi services (WF). The results revealed that the willingness-to-pay (WTP) for DIR was the highest, and consumers were willing to overpay NT $8,815 for purchasing this service. The second was CH, for which consumers overpaid NT $5,767. This was followed by MEAL(NT $4,156), WF(NT $3,138) and COM (NT $2,666). Moreover, the study also added socioeconomic attributes to explore the WTP in different socioeconomic attributes statuses. The results also indicated that passengers with an annual income of more than NT $ 700,000 and who had traveled by low-cost carriers were the ones willing to pay more for MEAL, CH, DIR and COM. In contrast, passengers with an annual income less than NT $ 700,000 and who had never traveled by low-cost carriers were willing to pay more for WF. The study findings may serve as references for Taiwanese airline operators for them to reach greater profits and contribute toward the expansion of the foreign market of the aviation industry.