TY - JOUR
T1 - Student's vacation travel: a reference dependent model of airline fares preferences
AU - Grigolon, A.B.
AU - Kemperman, A.D.A.M.
AU - Timmermans, H.J.P.
PY - 2012
Y1 - 2012
N2 - This article reports the results of student vacation travel choice analysis using a reference dependent model of airline fare preferences. Findings suggests, as expected, that the preferences/utility decreases with increasing levels of cost. The evaluation of the airfare, however, becomes significantly more critical in the regime were low-fare airlines are more expensive than the regular airlines, meaning that price sensitivity for low-fare airlines is higher in this case. Part-worth utility functions for airfare as part of a more general portfolio model of vacation decisions of students suggest that indeed a reference dependent model captures such regimes in utility space.
AB - This article reports the results of student vacation travel choice analysis using a reference dependent model of airline fare preferences. Findings suggests, as expected, that the preferences/utility decreases with increasing levels of cost. The evaluation of the airfare, however, becomes significantly more critical in the regime were low-fare airlines are more expensive than the regular airlines, meaning that price sensitivity for low-fare airlines is higher in this case. Part-worth utility functions for airfare as part of a more general portfolio model of vacation decisions of students suggest that indeed a reference dependent model captures such regimes in utility space.
U2 - doi:10.1016/j.jairtraman.2011.08.002
DO - doi:10.1016/j.jairtraman.2011.08.002
M3 - Article
SN - 0969-6997
VL - 18
SP - 38
EP - 42
JO - Journal of Air Transport Management
JF - Journal of Air Transport Management
IS - 1
ER -