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IMPACT OF FREQUENT FLYER PROGRAMS ON THE DEMAND FOR AIR TRAVEL

2002; American Institute of Aeronautics and Astronautics; Volume: 7; Issue: 2 Linguagem: Inglês

2380-9450

Ath Chin,

Urban and Freight Transport Logistics

This paper seeks to identify factors that affect airline specific demand by using binary choice models to examine the demand for the air services of Singapore Airlines. Findings indicate that the most important factor in influencing an individual's choice of Singapore Airlines is the airline's convenient schedule relative to other airlines. The other significant variable is membership in the Krisflyer frequent flier program (FFP), which has a small but positive impact on the Singapore Airlines market. The sample is classified into different market segments: Krisflyer FFP members versus non-Krisflyer FFP members, FFP members versus non-FFP members, long-haul versus short haul travelers and business versus leisure travelers. Results show that there is an overall variation among the segments in each classification. Travel time and airfare appear to be insignificant variables in this study.