Transportation

The factors affecting people's willingness in participating in and paying for upgrading their seats from the economy class to the premium class

C. Kuo, R. Jou, et al.

This captivating study by Chung-Wei Kuo, Rong-Chang Jou, and Yi-Chun Chiu explores the intriguing factors that drive passenger participation in airline seat upgrades and their willingness to pay. Discover how age and familiarity with bidding affect participation differently for short and long-haul flights, revealing surprising insights into consumer behavior.

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Playback language: English

Index

Abstract

This study investigates factors influencing passenger participation in and willingness to pay for airline seat upgrades using a double-hurdle model. The study finds that factors affecting participation differ between long- and short-haul flights, with young people and those familiar with seat bidding showing higher participation rates. Passengers on long-haul flights were willing to pay approximately 55% of the reference price for upgrades, while those on short-haul flights were willing to pay about 24%.

Publisher

Humanities & Social Sciences Communications

Published On

Oct 06, 2023

Authors

Chung-Wei Kuo, Rong-Chang Jou, Yi-Chun Chiu

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