Role of Type of Aircraft in the Decision of Ancillary Services for Medium Haul Flights During International Travel

Airlines generate significant revenues from ancillary services which has emerged as a pivotal source enhancing the travel experience with ancillary fares supplementing the basic travel fare. However, existing literature has largely overlooked traveller’s willingness to pay for ancillary services offered by low cost carrier (LCC) and full-service carrier (FSC). Our study utilized choice-based conjoint analysis to assess the traveller’s utility and further estimating the relative importance and willingness to pay for their travel. FSC travellers are willing to pay more than LCC for the same travel destination with same travel time. Seat properties has been the most important for both the aircrafts and the next important attribute are check-in luggage for LCC and priority services for FSC.