The Willingness to Pay of Thai Passengers toward Ancillary Services Selection offered by Budget Carriers on a Medium to Long-Haul Flight
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Abstract
Due to cultural differences, economic conditions, consumer preferences, and the readiness of the tourism market in each country, passengers’ willingness to pay for ancillary services may different in each area. This research aims to analyze the influence of ancillary services attributes of budget airlines on medium to long-haul flights and to assess the willingness of Thai passengers to pay when categorized by gender, age, and travel frequency. Data were collected through online survey from 300 Thai passengers, both with and without experience in air travel of more than 4 hours per flight with Thai budget airlines. The data were analyzed using a conjoint analysis to determine part-worth utilities, relative importance of attributes, and the willingness to pay for ancillary services. The willingness to pay, when categorized by gender, age, and travel frequency, was analyzed using T-Test and One-way ANOVA. The results of the study revealed that important characteristics of ancillary services, such as Internet connectivity, food, ticket prices, seat quality, and checked baggage, influenced the willingness to pay of Thai passengers. In addition, the willingness to pay for these ancillary services varies by gender, age, and travel frequency. The study’s findings can guide marketing strategy development, such as organizing ancillary service promotions classified by service user characteristics, to enhance services capabilities of budget carriers intending to operate on medium to long-haul routes.
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