infonet-economy

This paper contributes to the understanding of the perceived preferences of airline passengers in the short and long distant market. Since the emergence of low cost carriers as a successful business model in the short distant market, traditional network carriers face a strong price competition. To increase competitiveness, network carriers have to better respond to the demands of their customers and to identify the distinct service requirements of their customer segments to provide them with additional value. The aim of this paper is to determine these preferences that consequently lead to the choice of either business model. A standardized face-to-face survey was conducted with 209 air travellers at Zurich Airport. The contingency analysis reveals interesting differences regarding potential sources of additional customer value for different business models. As a theoretical contribution this paper adds to the existing literature on customer value components in the airline industry and adds data with the case of Zurich Airport. The results reveal interesting implications and explore ways for airline managers to increase future competitiveness by superior customer value creation.