Abstract
China’s low-cost carriers (LCCs) are poised for fast growth, thanks to the changing competition dynamics and aviation policies in the domestic market. This new trend calls for an in-depth investigation of the characteristics and behavioral intentions of LCC passengers. In particular, passenger demographics must be carefully considered given the likely demographic diversity in China’s emerging LCC market. This study performed a cluster analysis using age, education, and income as joint clustering variables to examine the demographic patterns of LCC passengers in China. The results indicate three distinct LCC passenger segments, which were labeled as Mature Travelers, Elite Travelers, and Young Starters based on the passenger characteristics in each segment. To further investigate the passengers’ behavioral intensions, this study considered the role of control when passengers plan and conduct an LCC trip. Despite the importance of controllability on the passenger side to complete a low-cost trip, given the operational and service characteristics of LCCs, it has not been adequately studied in the literature. Specifically, this study examines the impact of three control-related factors—perceived behavioral control, technology self-efficacy, and uncertainty avoidance—on the intention to use LCCs across the three passenger segments. The findings demonstrate that technology self-efficacy significantly influenced the mode use intention of the three passenger groups, while perceived behavioral control and uncertainty avoidance only affected the Elite Travelers. This study contributes to our understanding of LCCs by providing a new perspective of the composition and behavioral intentions of LCC passengers. Practical implications for the LCC success in China are discussed.
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Appendices
Appendix 1: Survey questionnaire (demographics and control-related factors)
Age |
1. Less than 20 |
2. 20–30 |
3. 31–40 |
4. 41–50 |
5. 51–60 |
6. Over 60 |
Education |
1. Lower than high school |
2. High school |
3. Voc/Tech school |
4. Bachelor’s degree |
5. Master’s degree |
6. Doctoral degree |
Monthly income |
1. Less than 2000 RMB |
2. 2000–4000 RMB |
3. 4001–6000 RMB |
4. 6001–8000 RMB |
5. 8001–12,000 RMB |
6. 12,001–15,000 RMB |
7. Over 15,000 RMB |
Control-related factor | Item no. | Items |
---|---|---|
Perceived behavioral control | 1 | If I want to, I can make an LCC trip soon |
2 | If I want to, I can obtain an LCC ticket soon | |
3 | For me, traveling by LCCs is easy to achieve | |
Technology self-efficacy | 1 | If I wanted to, I could easily search for LCC information on the internet on my own |
2 | I would be able to purchase an LCC ticket on the internet even if there is no one around to show me how to do it | |
3 | If I wanted to, I could search/compare prices of airlines online | |
Uncertainty avoidance | 1 | If I perceived uncertainty of LCCs’ future growth in the Chinese market, I will seek clear information in this regard before choosing an LCC |
2 | If I perceived uncertainty of LCCs’ safety, I will seek clear information of LCCs’ safety before choosing an LCC | |
3 | If I perceived uncertainty of LCCs’ on-time performance, I will seek unambiguous information of LCCs’ on-time performance before choosing an LCC |
Appendix 2: Summary of sample demographics and travel experience
Characteristics | Subgroup categories (years) | Frequency (no.) | Percentage (%) |
---|---|---|---|
Age | < 20 | 65 | 10.9 |
20–30 | 299 | 50 | |
31–40 | 151 | 25.3 | |
41–50 | 59 | 9.9 | |
51–60 | 19 | 3.2 | |
60 | 3 | 0.7 | |
Gender | Male | 325 | 54 |
Female | 271 | 46 | |
Education | Below high school | 55 | 9.2 |
High school | 119 | 19.9 | |
Voc/tech school | 115 | 19.2 | |
Bachelor’s degree | 262 | 43.8 | |
Master’s degree | 38 | 6.4 | |
Doctoral degree | 7 | 1.5 | |
Personal monthly income (RMB) | < 2000 | 110 | 18.4 |
2000–4000 | 106 | 17.7 | |
4001–6000 | 154 | 25.8 | |
6001–8000 | 96 | 16.1 | |
8001–12,000 | 68 | 11.4 | |
12,001–15,000 | 23 | 4.1 | |
> 15,000 | 39 | 6.5 |
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Pan, J.Y., Truong, D. Low cost carriers in China: passenger segmentation, controllability, and airline selection. Transportation 48, 1587–1612 (2021). https://doi.org/10.1007/s11116-020-10105-z
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DOI: https://doi.org/10.1007/s11116-020-10105-z