Analyzing factors impacting student`s choice between low-cost and full-fare airlines

Abstract

The main aim of the thesis is to investigate which factors impact students’ choice of either low-cost or full-fare airline. This is achieved by combining variables adopted from several frameworks used in earlier studies to form a questionnaire. The variables included cover characteristics such as perceived quality of service, price, flight availability and service reliability. In order to measure these characteristics and find out which one of them appeals to students the most a logistic regression analysis was applied. The analysis is based on the data gathered from students at the University of Agder in Kristiansand, Norway. Results show that quality of service is the most important and significant factor influencing students’ choice of airline. In addition, a separate analysis was conducted comparing students who are citizens of Norway and those who are citizens of other countries. Results indicate that different factors carry influence among the two groups of respondents. For Norwegian students the influential factors are quality of service, flight availability, and price; for non-Norwegians – quality of service and service reliability. Finally, possible explanations for these differences are suggested.