Comparing low-cost vs. full-service airlines: what do passengers value most?
Gaire, Nishant (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2026051311852
https://urn.fi/URN:NBN:fi:amk-2026051311852
Tiivistelmä
This paper explores the preferences of passengers regarding choosing between budget and full-service airlines. The main focus of this research is to identify the most important factors determining the choice of an airline. This investigation employs primary data obtained using a questionnaire consisting of a set of closed-ended questions. In total, 133 completed surveys were analyzed in this study.
The analysis demonstrates that the choice of an airline depends on several variables such as cost, timeliness, safety, comfort, and customer service. It has been established that despite the positive perception of low-budget airlines in terms of cost-effectiveness, full-service airlines have much higher levels of customer satisfaction and experience. Moreover, most of the participants did not show any particular preference toward budget or full-service airlines, implying that the choice is highly situation-specific.
This study contributes to the literature on consumer behavior in the aviation sector by highlighting the importance of value and service quality perceptions. Additionally, this study provides airline managers with valuable insights into balancing cost efficiency and service quality.
The analysis demonstrates that the choice of an airline depends on several variables such as cost, timeliness, safety, comfort, and customer service. It has been established that despite the positive perception of low-budget airlines in terms of cost-effectiveness, full-service airlines have much higher levels of customer satisfaction and experience. Moreover, most of the participants did not show any particular preference toward budget or full-service airlines, implying that the choice is highly situation-specific.
This study contributes to the literature on consumer behavior in the aviation sector by highlighting the importance of value and service quality perceptions. Additionally, this study provides airline managers with valuable insights into balancing cost efficiency and service quality.