Willingness to pay for frills when travelling with low-cost airlines

Antónia Correia ^[1] ; Adriano Pimpao ^[1] ; Manuel Tão ^[1]
1. [1] Universidade do Algarve
  
  Universidade do Algarve
  
  Faro (Sé), Portugal
Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 18, Nº. Extra 6, 2012 (Ejemplar dedicado a: Developments in the field of tourism economics), págs. 1161-1174
Idioma: inglés
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Resumen
- The success of low-cost companies is based on the economic principle that there is no free lunch. In this paper, by means of a stated preference experiment, the authors examine individuals� preferences for the main attributes defining the service offered by low-cost airlines. The empirical research is supported by a randomly collected sample of 525 passengers travelling to the Algarve for leisure purposes throughout the spring of 2009, using low-cost carriers. The results reveal not only the implicit values of service attributes, but also the preference differences in attributes between passengers. The policy and management implications of these results are discussed.