| The airline industry in the United States has been characterized by destructive competition and high rates of bankruptcy since deregulation in 1978. Only those airlines that practiced effective revenue management survived. Revenue management and the pressure to increase revenues have produced several practices such as price discrimination, overbooking, and additional fees for checked luggage that have troubled the airline consumer and created intense dissatisfaction as reflected in recent surveys, which consistently rate overall quality of airline travel as negative since 1991. The problem is the negative impact of revenue enhancing business practices that are reflected in consumer attitudes and behaviors. The purpose of this phenomenological study was to explore consumer perceptions of revenue enhancing practices in the domestic market that have resulted in negative or undesirable consequences. This research study was conducted by interviewing 20 experienced airline consumers residing primarily in the Las Vegas, Nevada area. The study used a semi-structured interview process for data collection and the modified Van Kamm method of data analysis. Four themes emerged from analysis of interview data concerning consumer reactions to revenue enhancing practices: Utility, Disappointment, Resignation, and Indifference. Utility concerned perceptions of revenue enhancing practices that fulfilled a consumer need or were described in a utilitarian fashion. Disappointment concerned revenue enhancing practices that were perceived negatively, sometimes as an outright violation of trust or other psychological human needs. Within this theme, consumer behavior changes could produce negative consequences to the airline. Resignation concerned perceptions of limited consumer choice or available options in response to objectionable revenue enhancing practices. The findings also indicated that perceptions such as these can move to the theme of disappointment if consumer perceptions regarding options change. The theme of indifference indicated a perceived lack of concern regarding certain revenue enhancing practices, especially if there would be no personal effect or consequence as a result. It was recommended that future research include an evaluation of a much larger sample size of airline consumers to include all levels of travel experience in order to better assess variances between major market segments as they relate to revenue enhancing practices. |
