{"title":"Exploring passengers’ choices in the event of denied boarding compensation","authors":"Tsung-Hsien Tsai, Chien-Min Chen","doi":"10.1016/j.tranpol.2025.03.002","DOIUrl":null,"url":null,"abstract":"<div><div>Overbooking practices are widely adopted to mitigate the impact of airline cancellations and no-shows. However, when denied boarding occurs, appropriately compensating passengers is crucial for maintaining satisfaction and securing yield. This study investigates the attributes influencing passengers’ preferences for compensations when they voluntarily accept denied boarding. A holistic framework encompassing compensations at different stages is proposed to conduct a choice experiment. Face-to-face questionnaires are collected at the airport and discrete choice models are applied to verify the framework. The results confirm behavioral heterogeneity and identify three segments with varying preferences for compensation attributes. A simulation further reveals the incremental effects of probabilities given different compensations. These findings enable service operators to implement segment-oriented compensation plans that encourage the acceptance of denied boarding while maintaining customer satisfaction.</div></div>","PeriodicalId":48378,"journal":{"name":"Transport Policy","volume":"166 ","pages":"Pages 166-178"},"PeriodicalIF":6.3000,"publicationDate":"2025-03-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Transport Policy","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0967070X25000915","RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Overbooking practices are widely adopted to mitigate the impact of airline cancellations and no-shows. However, when denied boarding occurs, appropriately compensating passengers is crucial for maintaining satisfaction and securing yield. This study investigates the attributes influencing passengers’ preferences for compensations when they voluntarily accept denied boarding. A holistic framework encompassing compensations at different stages is proposed to conduct a choice experiment. Face-to-face questionnaires are collected at the airport and discrete choice models are applied to verify the framework. The results confirm behavioral heterogeneity and identify three segments with varying preferences for compensation attributes. A simulation further reveals the incremental effects of probabilities given different compensations. These findings enable service operators to implement segment-oriented compensation plans that encourage the acceptance of denied boarding while maintaining customer satisfaction.
期刊介绍:
Transport Policy is an international journal aimed at bridging the gap between theory and practice in transport. Its subject areas reflect the concerns of policymakers in government, industry, voluntary organisations and the public at large, providing independent, original and rigorous analysis to understand how policy decisions have been taken, monitor their effects, and suggest how they may be improved. The journal treats the transport sector comprehensively, and in the context of other sectors including energy, housing, industry and planning. All modes are covered: land, sea and air; road and rail; public and private; motorised and non-motorised; passenger and freight.