Abstract:
This thesis aims to identify the key aspects in the cabin interior and services by focusing
on passengers’ preferences and to estimate the willingness to pay for different services
and attributes in a culture-specific setting. The scope of the study includes passengers in
Japan across all airline business segments for short-haul and medium-haul flights,
utilising 2,700 stated preference observations included within a passenger survey
conducted in Japan in 2016. While the identification of culture-specific characteristics
and trends in Japan are analysed with a qualitative study, choice models and willingness
to pay estimates for cabin features and services are revealed with a quantitative study. A
stated preference (SP) survey is designed for choice models developed with multinomial
and mixed logit models to analyse the results.
The study includes two main categories in cabin; cabin interior and cabin services. Key
aspects in the cabin interior included in the study are the physical attributes of the cabin
in terms of space and seats. For in-cabin services, different levels of technologies
including inflight entertainment (IFE), internet connection, and power supply and meal
service are considered. A significant difference between medium (3-6 hours) and short-
haul (<3 hours) flights is found based on entertainment and seating space along with
expected meal services provided (i.e. the willingness to pay for seat pitch is $2.82 for
short-haul while it is $12.76 for medium-haul flights).
While the overall expectations for in-cabin services are not relatively high in short-haul
flights, the results indicate towards high expectations for some attributes in medium-haul
flights. These outcomes along with the understanding of Japanese passengers can
contribute to the knowledge for an optimal ancillary revenue system, and the cabin
interior and configurations in a culture-specific setting. Eventually, they may act as
important parameters for the aircraft investment appraisal as a result in a specific region.
Through the analysis, the value of seat pitch along with internet connection which can be
interpreted as a form of IFE are found to be significant for passengers in Japan. In
addition, the difference in the preferences of passengers for short and medium-haul flights
are revealed and forecasted for different flight durations to give an insight into the
valuation of cabin attributes for longer flights. The results indicate valuable outcomes to
be considered based on culture-specific preferences for cabin design and services.