The influence of low-fare airlines on vacation choices of students: Results of a stated portfolio choice experiment

This paper reports the results of a portfolio model of vacation choices of students. The portfolio model concerns the combined choice of destination type, transport mode, duration, accommodation, and travel party for vacations. In addition to usual transport modes such as airline, train, bus and car, a distinction was made between low-fare airlines, as these may be especially appealing to students, and regular airlines. Stated choice data were used to estimate the model. The attributes of the transport modes were systematically varied in the experiment, while respondents were faced with free options for the other choice facets. Estimation results indicated that the developed model of portfolio choice performs satisfactory. In substantive terms, it seems that transport mode predominantly influences the portfolio choices. The attributes that are significant tend to amplify the specific role of transport modes in general and low-fare airlines in particular.

► Portfolio includes destination, transport, duration, accommodation, travel party.
► Factors influencing transport choice vacation behaviour of students were analysed.
► A distinction was made between low-fare and regular airlines.
► Stated choice data was used to estimate the Multinomial Logit Model.
► Low-fare airlines and costs played a major role influencing student’s decisions.