Transportation Dissertation
| Title | Convenience or Discount? The Analysis of Travelers’ Willingness-to-Pay for Bundling Airline Services |
|---|---|
| Year | 2018 |
| Degree | Master |
| School | Department of Transportation and Logistics Management College of Management National Chiao Tung University |
| Author | Liu, Yu-Ting |
| Summary | Nowadays, bundling strategy is a very popular pricing strategy and it is also widely used in aviation industry. However, there is still an argument in the change of willingness-to-pay when adopting bundling strategy. Besides, previous researches about willingness-to-pay of airlines service are focus on willingness-to-pay on particular services like the meal or luggage, but these services need to combine with seat and are necessary to sell as bundle goods. In addition, this research combines bundling theory and willingness-to-pay in airlines services, trying to make a conclusion in the change of willingness-to-pay when adopting bundling strategy. The result shows that in the meal service and luggage service, the willingness-to-pay for the bundle exceed the sum of the willingness-to-pay for the individual services and in the seat pitch and change service, the willingness-to-pay for the bundle equal the sum of the willingness-to-pay for the individual services. In addition, the age of traveler can also affect willingness-to-pay when adopting bundling strategy. Travelers aged under 40 consider that the willingness-to-pay of seat and meal service, seat and luggage service exceed the sum of the willingness-to-pay for the individual services. However, Travelers older than 40 believed that only the willingness-to-pay of seat and meal service exceed the sum of the willingness-to-pay for the individual services. |