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TitleA business analysis of the South African domestic commercial air transport market : low-cost carriers and full-service carriers in the context of the business environment and passenger behaviours
AuthorDiggines, Colin Neville
SubjectFull-service carriers
SubjectLow-cost carriers
SubjectSouth African domestic air transport industry
SubjectAirline business strategy
SubjectPassenger behaviour
SubjectPassenger profile
SubjectAirline choice criteria
SubjectPrice sensitivity
SubjectModel perceptions
SubjectPredictors of model choice
Subject387.740968
SubjectAeronautics, Commercial -- Management -- South Africa
SubjectAirlines -- Deregulation -- South Africa
SubjectLocal service airlines -- South Africa -- Management
SubjectAirplane occupants -- Services for -- South Africa
SubjectSocial responsibility of business -- South Africa -- Standards
SubjectAeronautics, Commercial -- South Africa
SubjectAirlines -- South Africa -- Management
Date2018-05-15T12:09:10Z
Date2018-05-15T12:09:10Z
Date2017-07-31
TypeThesis
Format1 online resource (xx, 610 leaves)
AbstractThis study attempted to establish the travel behaviours and choice criteria of the South African domestic air passenger and how they differed between low-cost carriers (LCCs) and full-service carriers (FSCs). The study was quantitative and used structured questionnaires to collect data via personal interviews. Descriptive and inferential techniques were used to analyse the data, including a binomial logistic regression to identify predictors of model choice. Analysis This study attempted to establish the travel behaviours and choice criteria of the South African domestic air passenger and how they differed between low-cost carriers (LCCs) and full-service carriers (FSCs). The study was quantitative and used structured questionnaires to collect data via personal interviews. Descriptive and inferential techniques were used to analyse the data, including a binomial logistic regression to identify predictors of model choice. Analysis showed that passengers had a limited understanding of the functioning of the models. This results in consumer perceptions and expectations being discordant with the true differences. In distinguishing between models, LCC passengers rate LCCs more favourably than FSC passengers, but both rate FSCs higher than LCCs. This shows the need of consumers to have the features and services of the FSCs. Amongst the key findings was the absolute importance of price to the passengers on both models when purchasing the ticket. The analysis showed that LCC passengers are highly price sensitive and show loyalty to the lowest price (not airline model). It was apparent that frequent flyer programmes (FFP), or linkages to 3rd party loyalty programmes, for LCCs need to be reconsidered. Younger LCC passengers especially, indicated a need for a simple FFP to receive some form of ‘reward’, as well as benefits traditionally only offered by FSCs. FSC passengers show a greater degree of loyalty and less fare sensitivity. This provides the FSCs with a degree of fare flexibility and the opportunity to move their loyal, less price-sensitive consumers up the price curve to maximise revenue. It was shown that, in distinguishing themselves from FSCs, it is important that LCCs are perceived as being more affordable than FSCs and are offering a value-for-money service. In essence, LCCs have to defend their positioning by (i) ensuring that their fares are not perceived to be as high as a FSCs and (ii) watching that the FSC fares are not declining to a level where FSCs are perceived as being as cheap as a LCC. For LCCs, brand building strategies around issues other than fare need to be devised, with attention paid to identifying determinant factors.
AbstractBusiness Management
AbstractD. Com (Business Management)
IdentifierDiggines, Colin Neville (2017) A business analysis of the South African domestic commercial air transport market : low-cost carriers and full-service carriers in the context of the business environment and passenger behaviours, University of South Africa, Pretoria,
Identifierhttp://hdl.handle.net/10500/23853