Understanding Consumer Preference Between Low Cost Airlines and Full Service Carriers : A Study on Consumer Choice and Decisions

The emergence of low cost or no frills airlines in last decade or so have posed considerable threat to the businesses of traditional full service airlines. The competition between the different type of airlines have changed the landscape of the airline industry tremendously and have provided air travelers with options which are unprecedented. The aim of this study is to understand consumer preference between low cost and full service airlines and to determine what are the motivations or factors that lead consumers to choose the services of one airline over the other. Various aspects of the marketing mix was explored together with the consumer behaviour models in determining consumer choice in the literature review. A questionnaire was then developed to seek opinions of relevant individuals on their travel preferences and identifying attributes which will affect their decision making. The study found that price and costs are key motivaters among consumers in the evaluation of airlines for personal travel and ; comfort, spaciousness, cleanliness as well as safety record of airline were considered of higher importance to travelers in comparison to other service attributes. Full service airlines seems to be the mainstay among business passengers though some leisure travelers will still opt for the full service option due to convenience. Advertising and promotions had minimal effect on consumer choice and neither does loyalty programs nor brand image. It is also revealed that the internet plays a pivotal role in today’s airline industry with consumers preferring to make their purchases online and access to an airline’s website is of prime importance. The research ends with a short discussion on limitations of the current study and highlights opportunities which could be further explored in this dynamic and often fascinating industry