- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
This study investigates how much extra air travellers are willing to pay to upgrade to premium economy class by using a suitable econometric model. Since a large portion of travellers' willingness to pay for premium economy class is zero, the spike model is applied to overcome the issues that may occur when traditional statistical models are used. Three flight distances, short, medium, and long hauls were separately estimated to investigate the effects of flight distance on willingness to pay. Travellers’ willingness to pay to upgrade from economy class to premium economy class round-trip was US$138 ,1 US$309, and US$545 for short-, medium-, and long-haul, respectively. The research results should be a helpful reference for the civil aviation industry in strategic pricing planning.
It is widely perceived that many more airlines will introduce a premium economy class in the future on their long haul aircraft in order to target both the price sensitive business traveller and comfort seeking leisure passengers. Cindy and O'Connell (2015) even think that premium economy class could very well become a sustainable product in the landscape of long haul travel in the near future. This study sought to examine how much air travellers are willing to pay to upgrade from economy to premium economy class. Statistical inferences based on convenience samples, approximately 44.8% of short-haul travellers, 31.3% of medium-haul travellers, and 29.9% of long-haul travellers, respectively, were not willing to pay extra for premium economy class. Research results indicate that the percentage of short-haul travellers who were not willing to pay for upgrade is the highest compared to travellers on other types of flight distances. The possible reason for this result is that the shorter the flight trip, the shorter the time travellers spend on board. Therefore, flight distance is a crucial factor that impacts whether travellers are willing to pay extra to upgrade. Additionally, due to a great portion of respondents reporting they are not WTP at all, this study applies a spike model in order to avoid estimation errors.