Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models

The present work is concerned with the distinction between low-cost and network carriers within the airline industry. These distinct business models follow different approaches in their external strategy and, thus, in their communication, marketing, and internal cost structure. The differences betwe...

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Autor principal: Peter Wild
Formato: article
Lenguaje:EN
Publicado: Elsevier 2021
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Acceso en línea:https://doaj.org/article/afc5b7de0afe4d588bb9cee2e8fbf506
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spelling oai:doaj.org-article:afc5b7de0afe4d588bb9cee2e8fbf5062021-11-12T04:47:15ZCorporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models2590-198210.1016/j.trip.2021.100494https://doaj.org/article/afc5b7de0afe4d588bb9cee2e8fbf5062021-12-01T00:00:00Zhttp://www.sciencedirect.com/science/article/pii/S2590198221001998https://doaj.org/toc/2590-1982The present work is concerned with the distinction between low-cost and network carriers within the airline industry. These distinct business models follow different approaches in their external strategy and, thus, in their communication, marketing, and internal cost structure. The differences between the two models are discussed in general and in light of the ongoing trend toward more sustainable and transparent business models, thus focusing on the customer perspective. A quantitative empirical study was conducted to assess the perception of the two airline business models. Additionally, an analysis of changing flyer behavior owing to the COVID-19 crisis was conducted, and the importance of corporate social responsibility (CSR) in the airline industry was evaluated. Using a sample of self-reported frequent flyers (n = 99), the present study used a correlative approach to evaluate the relationship between the individual variables. Among the core findings of the study were that CSR plays an important role in the mindset of passengers, especially with respect to philanthropic and legal responsibility, and that during the COVID-19 pandemic, concerns about ecological responsibility gained momentum. Apparently, COVID-19 did not cause a demand shift within business models, and no differences in passengers’ perceptions regarding CSR were detected among models. However, significant differences between low-cost and full-service airlines were found regarding their respective perceived cost structures. Passengers are aware of this difference, which implies that they might see fare differences up to 30% as reasonable.Peter WildElsevierarticleAirline business modelLow-cost airlineNetwork carrier airlineCorporate social responsibilitySustainabilityCOVID-19Transportation and communicationsHE1-9990ENTransportation Research Interdisciplinary Perspectives, Vol 12, Iss , Pp 100494- (2021)
institution DOAJ
collection DOAJ
language EN
topic Airline business model
Low-cost airline
Network carrier airline
Corporate social responsibility
Sustainability
COVID-19
Transportation and communications
HE1-9990
spellingShingle Airline business model
Low-cost airline
Network carrier airline
Corporate social responsibility
Sustainability
COVID-19
Transportation and communications
HE1-9990
Peter Wild
Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
description The present work is concerned with the distinction between low-cost and network carriers within the airline industry. These distinct business models follow different approaches in their external strategy and, thus, in their communication, marketing, and internal cost structure. The differences between the two models are discussed in general and in light of the ongoing trend toward more sustainable and transparent business models, thus focusing on the customer perspective. A quantitative empirical study was conducted to assess the perception of the two airline business models. Additionally, an analysis of changing flyer behavior owing to the COVID-19 crisis was conducted, and the importance of corporate social responsibility (CSR) in the airline industry was evaluated. Using a sample of self-reported frequent flyers (n = 99), the present study used a correlative approach to evaluate the relationship between the individual variables. Among the core findings of the study were that CSR plays an important role in the mindset of passengers, especially with respect to philanthropic and legal responsibility, and that during the COVID-19 pandemic, concerns about ecological responsibility gained momentum. Apparently, COVID-19 did not cause a demand shift within business models, and no differences in passengers’ perceptions regarding CSR were detected among models. However, significant differences between low-cost and full-service airlines were found regarding their respective perceived cost structures. Passengers are aware of this difference, which implies that they might see fare differences up to 30% as reasonable.
format article
author Peter Wild
author_facet Peter Wild
author_sort Peter Wild
title Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
title_short Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
title_full Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
title_fullStr Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
title_full_unstemmed Corporate social responsibility, cost structures, and COVID-19: Impact of passenger behavior on business models
title_sort corporate social responsibility, cost structures, and covid-19: impact of passenger behavior on business models
publisher Elsevier
publishDate 2021
url https://doaj.org/article/afc5b7de0afe4d588bb9cee2e8fbf506
work_keys_str_mv AT peterwild corporatesocialresponsibilitycoststructuresandcovid19impactofpassengerbehavioronbusinessmodels
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