Study On Air Passengers’ Willingness To Pay For Ancillary Services

In recent years,the products provided by airlines have become more and more homogeneous.In order to seek new profit growth points,domestic airlines learn from the ancillary service product strategy of foreign airlines to provide differentiated and personalized ancillary services for passengers.In addition,the ancillary revenue from ancillary service products can alleviate the impact of some uncontrollable factors,such as alleviating the revenue impact of COVID-19 in 2019.However,when airlines provide ancillary services to passengers,the price is relatively single and does not consider the passengers’ personal willingness to pay the price.At present,there is little research on ancillary service direction in airlines,and relatively little research on passenger behavior of ancillary service selection and their willingness to pay.Therefore,this paper further calculates the willingness of different passengers to pay to different ancillary services based on the choice of ancillary services,so as to provide differentiated pricing schemes for airlines.Based on the existing research results,this paper firstly reviews the literature on ancillary services and willingness to pay,and constructs a theoretical framework based on the theories of consumer behavior and random utility.Secondly,the attributes related to ancillary services are selected,and the combined price of ancillary services is determined by the double-boundary dichotomy method.Finally,the questionnaire of domestic and international airlines is determined,and the questionnaire survey is conducted by using the choice experiment method.Then,using the model based on willingness to pay(WTP)passenger preference heterogeneity and multiple choice willingness to pay model assessment overall under different routes type passenger’s willingness to pay(WTP)for different ancillary services,using latent class model to evaluate different category passenger’s willingness to pay(WTP)for different ancillary services,the study found that the overall passenger research level,using the willingness to pay(WTP)based on passenger preference heterogeneity model calculates the results than multiple choice pay will model the result is reasonable.The willingness-to-pay model based on the heterogeneity of passenger preferences was used to estimate the willingness-to-pay of domestic airline passengers for seat selection,in-flight meals and in-flight Wi Fi,which were 75.38 yuan,50.07 yuan and 37.12 yuan respectively.According to the calculation of international airline passengers’ willingness to pay for seat selection,in-flight meals and in-flight Wi Fi is 257.69 yuan,67.04 yuan and 105.09 yuan respectively.In different categories of passengers research level,through the latent class models will be divided into domestic tourists "price sensitive" "comfortable Xiang Shou Xing" accounted for 35.9%,64.1% respectively,the international passenger can be divided into "price sensitive" medium "preference fold" "comfortable recreational" accounted for 50.9%,33.1% and 16.0% respectively,and calculate different categories passenger’s willingness to pay(WTP)for different ancillary services.According to the research conclusions,the author puts forward some suggestions for airlines on marketing management of ancillary services.