A review of ancillary services in the airline industry

References

• Abdella, J. A., Zaki, N., Shuaib, K., & Khan, F. (2019). Airline ticket price and demand prediction: A survey. Journal of King Saud University - Computer and Information Sciences, 33(4), 1–14. https://doi.org/10.1016/j.jksuci.2019.02.001
   Web of Science ®Google Scholar
• Agostini, C. A.,Inostroza, D., &Willington, M. (2015). Price effects of airlines frequent flyer programs: The case of the dominant firm in Chile. Transportation Research Part A: Policy and Practice, 78, 283–297. https://doi.org/10.1016/j.tra.2015.05.011
   Web of Science ®Google Scholar
• ‌Ambrosius, M. F. (2017). Effects of price discrimination on airline ancillary good sales: a multiple treatment propensity score weighting approach. Master’s thesis. University of Twente.
   Google Scholar
• Avram, B. (2017). Ancillaries in the aviation industry. Importance, trends, going digital. Expert Journal of Marketing, 5(2), 53–65.
   Google Scholar
• Bachwich, A. R., & Wittman, M. D. (2017). The emergence and effects of the ultra-low cost carrier (ULCC) business model in the U.S. airline industry. Journal of Air Transport Management, 62, 155–164. https://doi.org/10.1016/j.jairtraman.2017.03.012
   Web of Science ®Google Scholar
• Bockelie, A., & Belobaba, P. (2017). Incorporating ancillary services in airline passenger choice models. Journal of Revenue and Pricing Management, 16(6), 553–568. https://doi.org/10.1057/s41272-017-0100-6
   Google Scholar
• Boin, R., Coleman, W., Delfassy, D., & Palombo, G. (2017). How airlines can gain a competitive edge through pricing. McKinsey. https://www.mckinsey.com/∼/media/McKinsey/Industries/Travel%20Transport%20and%20Logistics/Our% 20Insights/How% 20airlines% 20can% 20gain% 20a%20competitive% 20edge%20through%20pricing/How-airlines-can-gain-a-competitive-edge-through-pricing.ashx.
   Google Scholar
• Bozogáň, M., & Hurná, S. (2020). Use of modern technologies at baggage tracking and its impact on airline revenue. Mobility Internet of Things, 2018, 73–111. https://doi.org/10.1007/978-3-030-30911-4_6
   Google Scholar
• Centre for Asian Pacific Aviation (CAPA). (2014). Ancillaries Key for Airlines and Growing Rapidly. Retrieved from. www.centreforeaviation.com
   Google Scholar
• Ceregeiro, M. M. S. D. A. D. S. (2021). The future of the air travel industry: the concept of door-to-door luggage delivery service. Doctoral dissertation.
   Google Scholar
• Chiambaretto, P. (2021). Air passengers’ willingness to pay for ancillary services on long-haul flights. Transportation Research Part E: Logistics and Transportation Review, 147, 102234. https://doi.org/10.1016/j.tre.2021.102234
   Web of Science ®Google Scholar
• Chiambaretto, P., & Combe, E. (2023). Business model hybridization but heterogeneous economic performance: Insights from low-cost and legacy carriers in Europe. Transport Policy, 136, 83–97. https://doi.org/10.1016/j.tranpol.2023.03.016
   Web of Science ®Google Scholar
• Corbo, L. (2017). In search of business model configurations that work: Lessons from the hybridization of Air Berlin and JetBlue. Journal of Air Transport Management, 64, 139–150. https://doi.org/10.1016/j.jairtraman.2016.09.010
   Web of Science ®Google Scholar
• Cui, Y., Duenyas, I., & Sahin, O. (2018). Unbundling of ancillary service: How does price discrimination of main service matter? Manufacturing & Service Operations Management, 20(3), 455–466. https://doi.org/10.1287/msom.2017.0646
   Web of Science ®Google Scholar
• de Wit, J. G., & Zuidberg, J. (2012). The growth limits of the low cost carrier model. Journal of Air Transport Management, 21, 17–23. https://doi.org/10.1016/j.jairtraman.2011.12.013
   Web of Science ®Google Scholar
• Garrow, L. A., Hotle, S., & Mumbower, S. (2012). Assessment of product debundling trends in the US airline industry: Customer service and public policy implications. Transportation Research Part A: Policy and Practice, 46(2), 255–268. https://doi.org/10.1016/j.tra.2011.09.009
   Web of Science ®Google Scholar
• Grönroos, C. (2007). Service management and marketing: customer management in service competition. John Wiley & Sons.
   Google Scholar
• Holloway, S. (2008). Straight and level: Practical airline economics. 3rd ed. Ashgate Publishing Limited.
   Google Scholar
• Hugon-Duprat, C., & O’Connell, J. F. (2015). The rationale for implementing a premium economy class in the long haul markets – Evidence from the transatlantic market. Journal of Air Transport Management, 47, 11–19. https://doi.org/10.1016/j.jairtraman.2015.03.005
   Web of Science ®Google Scholar
• Kassir, A., & Ashaal, A. (2021). Ancillary Revenue of full service airline an analysis of the passenger’s willingness to pay |WTP| (The Case of Middle East Airlines). Review of Politics and Public Policy in Emerging Economies, 3(2), 115–128. https://doi.org/10.26710/rope.v3i2.2234
   Google Scholar
• Katsoni, V., & Poulaki, I. (2021). Digital evolution and emerging revenue management practices: Evidence from Aegean airlines distribution channels. Journal of Hospitality and Tourism Technology, 12(2), 254–270. https://doi.org/10.1108/JHTT-12-2019-0145
   Web of Science ®Google Scholar
• Klislinar, E., & Wachidin Widjaja, A. (2020). Analysis of willingness to pay for ancillary revenue of full service airline (The Case of Garuda Indonesia). KnE Social Sciences, 4(6), 1213–1230. https://doi.org/10.18502/kss.v4i6.6672
   Google Scholar
• Kolbeinsson, A., Shukla, N., Gupta, A., Marla, L., & Yellepeddi, K. (2022). Galactic air improves ancillary revenues with dynamic personalized pricing. INFORMS Journal on Applied Analytics, 52(3), 233–249. https://doi.org/10.1287/inte.2021.1105
   Google Scholar
• Kosonen, E. (2020). Dynamic pricing of airline ancillaries: co-creating a machine learning model to price ancillaries in the case company.
   Google Scholar
• Kummara, M. R., Guntreddy, B. R., Vega, I. G., & Tai, Y. H. (2021). Dynamic pricing of ancillaries using machine learning: one step closer to full offer optimization. Journal of Revenue and Pricing Management, 20(6), 646–653. https://doi.org/10.1057/s41272-021-00347-6
   Web of Science ®Google Scholar
• Kuo, C.-W., & Jou, R.-C. (2017). Willingness to pay for airlines’ premium economy class: The perspective of passengers. Journal of Air Transport Management, 59, 134–142. https://doi.org/10.1016/j.jairtraman.2016.12.005
   Web of Science ®Google Scholar
• Lal, R., & Matutes, C. (1994). Retail pricing and advertising strategies. The Journal of Business, 67(3), 345–370. https://doi.org/10.1086/296637
   Web of Science ®Google Scholar
• Leon, S., & Uddin, N. (2017). Data-driven insights: Assessment of airline ancillary services. Journal of Transportation Management, 27(2), 59–74. https://doi.org/10.22237/jotm/1498867500
   Google Scholar
• Materna, M., & Tomová, A. (2016). Long-haul low-cost air services: revealing key competitive features of airline within airline strategy. Ekonomiczne Problemy Usług, 124, 151–162. https://doi.org/10.18276/epu.2016.124-12
   Google Scholar
• Morlotti, C., Birolini, S., Cattaneo, M., & Redondi, R. (2020). Introducing connecting flights in LCCs’ business model: Ryanair’s network strategy. Journal of Air Transport Management, 87, 101849. https://doi.org/10.1016/j.jairtraman.2020.101849
   Web of Science ®Google Scholar
• Morosan, C. (2014). Toward an integrated model of adoption of mobile phones for purchasing ancillary services in air travel. International Journal of Contemporary Hospitality Management, 26(2), 246–271. https://doi.org/10.1108/IJCHM-11-2012-0221
   Web of Science ®Google Scholar
• Mumbower, S., Garrow, L. A., & Newman, J. P. (2015). Investigating airline customers’ premium coach seat purchases and implications for optimal pricing strategies. Transportation Research Part A: Policy and Practice, 73, 53–69. https://doi.org/10.1016/j.tra.2014.12.008
   Web of Science ®Google Scholar
• O’Connell, J. F. (2011). Ancillary revenues e the new trend in strategic airline marketing. In: J. F. O’Connell, & G. Williams (Eds.), Air Transport in the 21st Century. Ashgate.
   Google Scholar
• O’Connell, J. F., & Williams, G. (2005). Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11(4), 259–272. https://doi.org/10.1016/j.jairtraman.2005.01.007
   Web of Science ®Google Scholar
• O’Connell, J. F., & Warnock-Smith, D. (2013). An investigation into traveler preferences and acceptance levels of airline ancillary revenues. Journal of Air Transport Management, 33, 12–21. https://doi.org/10.1016/j.jairtraman.2013.06.006
   Web of Science ®Google Scholar
• O’Connell, J. F., & Williams, G. (2011). Air transport in the 21st century: Key strategic developments.
   Google Scholar
• Ødegaard, F., & Wilson, J. G. (2016). Dynamic pricing of primary products and ancillary services. European Journal of Operational Research, 251(2), 586–599. https://doi.org/10.1016/j.ejor.2015.11.026
   Web of Science ®Google Scholar
• Ozmec-Ban, M., Škurla Babić, R., Vidović, A., & Bračić, M. (2022). A review of ancillary services implementation in the revenue management systems. Promet-Traffic & Transportation, 34(4), 581-594. https://doi.org/10.7307/ptt.v34i4.4065
   Google Scholar
• Parise, G. (2018). Threat of entry and debt maturity: Evidence from airlines. Journal of Financial Economics, 127(2), 226–247. https://doi.org/10.1016/j.jfineco.2017.11.009
   Web of Science ®Google Scholar
• Ren, X., Pan, N., & Jiang, H. (2022). Differentiated pricing for airline ancillary services considering passenger choice behavior heterogeneity and willingness to pay. Transport Policy, 126, 292–305. https://doi.org/10.1016/j.tranpol.2022.08.001
   Web of Science ®Google Scholar
• Rouncivell, A., Timmis, A. J., & Ison, S. G. (2018). Willingness to pay for preferred seat selection on UK domestic flights. Journal of Air Transport Management, 70, 57–61. https://doi.org/10.1016/j.jairtraman.2018.04.018
   Web of Science ®Google Scholar
• Scotti, D., & Dresner, M. (2015). The impact of baggage fees on passenger demand on US air routes. Transport Policy, 43, 4–10. https://doi.org/10.1016/j.tranpol.2015.05.017
   Web of Science ®Google Scholar
• Serrano, F., & Kazda, A. (2020). The future of airport post COVID-19. Journal of Air Transport Management, 89(101900), 101900. https://doi.org/10.1016/j.jairtraman.2020.101900
   PubMedGoogle Scholar
• Shaw, M., Tiernan, S., O’Connell, J. F., Warnock-Smith, D., & Efthymiou, M. (2021). Third party ancillary revenues in the airline sector: An exploratory study. Journal of Air Transport Management, 90, 101936. https://doi.org/10.1016/j.jairtraman.2020.101936
   Web of Science ®Google Scholar
• Shugan, S. M., Moon, J., Shi, Q., & Kumar, N. S. (2017). Product line bundling: Why airlines bundle high-end while hotels bundle low-end. Marketing Science, 36(1), 124–139. https://doi.org/10.1287/mksc.2016.1004
   Web of Science ®Google Scholar
• Shukla, N., Kolbeinsson, A., Marla, L., & Yellepeddi, K. (2020). From average customer to individual traveler: A field experiment in airline ancillary pricing. SSRN Electronic Journal. Available at SSRN 3518854. https://doi.org/10.2139/ssrn.3518854
   Google Scholar
• Silling, U. (2019). Aviation of the future: What needs to change to get aviation fit for the twenty-first century. In Aviation and its management-global challenges and opportunities. IntechOpen.
   Google Scholar
• Silva de Mattos, B., Tavares Guerreiro Fregnani, J. A., & Takachi Tomita, J. (2022). Effects of the 1978 airline deregulation act on aircraft industry measured by entropy statistics. TRANSPORTES, 30(2), 2594. https://doi.org/10.14295/transportes.v30i2.2594
   Google Scholar
• Song, W.-K., & Lee, H. C. (2020). An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study. Journal of Air Transport Management, 82, 101735. https://doi.org/10.1016/j.jairtraman.2019.101735
   Web of Science ®Google Scholar
• Stalnaker, T., Usman, K., & Taylor, A. (2016). Airline economic analysis. http://www.oliverwy man.com/content/dam/oliver-wyman/global/en/2016/jan/oliver-wyman-airline-economic-analysis-2015-2016.pdf
   Google Scholar
• Terblanche, N. S. (2015). Customers’ Perceived Benefits of a Frequent-Flyer Program. Journal of Travel & Tourism Marketing, 32(3), 199–210. https://doi.org/10.1080/10548408.2014.895694
   Web of Science ®Google Scholar
• Tomová, A., & Materna, M. (2017). The directions of on-going air carriers’ hybridization: Towards peerless business models? Procedia Engineering, 192, 569–573. https://doi.org/10.1016/j.proeng.2017.06.098
   Google Scholar
• Tsafarakis, S., Kokotas, T., & Pantouvakis, A. (2018). A multiple criteria approach for airline passenger satisfaction measurement and service quality improvement. Journal of Air Transport Management, 68, 61–75. https://doi.org/10.1016/j.jairtraman.2017.09.010
   Web of Science ®Google Scholar
• Vasigh, B., Taleghani, R., & Jenkins, D. (2012). Aircraft finance: Strategies for managing capital costs in a turbulent industry.
   Google Scholar
• Waguespack, B. P. (2018). Airline marketing. In The Routledge companion to air transport management (pp. 206–219). Routledge.
   Google Scholar
• Waguespack, B. P., & Rhoades, D. L. (2014). Twenty five years of measuring airline service quality or why is airline service quality only good when times are bad? Research in Transportation Business & Management, 10, 33–39. https://doi.org/10.1016/j.rtbm.2014.06.001
   Google Scholar
• Wang, Z., Han, X., Chen, Y., Ye, X., Hu, K., & Yu, D. (2022). Prediction of willingness to pay for airline seat selection based on improved ensemble learning. Aerospace, 9(2), 47. https://doi.org/10.3390/aerospace9020047
   Web of Science ®Google Scholar
• Wang, K. K., Wittman, M. D., & Bockelie, A. (2021). Dynamic offer generation in airline revenue management. Journal of Revenue and Pricing Management, 20(6), 654–668. https://doi.org/10.1057/s41272-021-00349-4
   Web of Science ®Google Scholar
• Warnock-Smith, D., O’Connell, J. F., & Maleki, M. (2017). An analysis of ongoing trends in airline ancillary revenues. Journal of Air Transport Management, 64, 42–54. https://doi.org/10.1016/j.jairtraman.2017.06.023
   Web of Science ®Google Scholar
• Wilson, J. G. (2016). Jointly Optimising Prices for Primary and Multiple Ancillary Products. IFAC-PapersOnLine, 49(12), 267–270. https://doi.org/10.1016/j.ifacol.2016.07.615
   Google Scholar
• Wittmer, A., Boksberger, P., & Gerber, A. (2012). The future of ancillary service fees in air travel - An exploratory investigation of budget air travellers. International Journal of Aviation Management, 1(4), 231. https://doi.org/10.1504/IJAM.2012.050474
   Google Scholar
• Worasuwannarak, B. (2023). P-People”: The marketing mix approach of value-added in LCC ancillary service. In Strategic human resource management in the hospitality industry: A digitalized economic paradigm (pp. 1–14). IGI Global. https://doi.org/10.4018/978-1-6684-7494-5.ch001
   Google Scholar
• Yoon, M., & Lee, H. (2021). Seat assignment problem with the payable up-grade as an ancillary service of airlines. Annals of Operations Research, 307(1–2), 483–497. https://doi.org/10.1007/s10479-021-04329-0
   Web of Science ®Google Scholar
• Zhao, G., Cui, Y., & Cheng, S. (2021). Dynamic pricing of ancillary services based on passenger choice behavior. Journal of Air Transport Management, 94, 102058. https://doi.org/10.1016/j.jairtraman.2021.102058
   Web of Science ®Google Scholar
• Zhou, Y., Zhang, T., Mo, Y., & Huang, G. (2020). Willingness to pay for economy class seat selection: From a Chinese air consumer perspective. Research in Transportation Business & Management, 37, 100486. https://doi.org/10.1016/j.rtbm.2020.100486
   Web of Science ®Google Scholar