Abstract Hedonic and utilitarian ancillary service are critical to airline profitability, particularly in competitive developing markets. However, traveller preferences for these ancillary services remain insufficiently understood across different operational contexts. This study applies choice-based conjoint analysis across thirteen travel scenarios, combining different travel times (short, medium, long, and ultra-long haul), destination (domestic and international), and carrier types (low-cost carriers and full-service carriers), to assess preferences and estimate willingness to pay for hedonic and utilitarian ancillaries. Findings indicate that hedonic choices are often shaped by intuitive System-1 responses, while utilitarian decisions are guided by more deliberative System-2 reasoning. Importantly, attribute importance does not always translate into higher WTP, challenging conventional price-value assumptions. By classifying ancillaries into hedonic and utilitarian categories and analysing their interplay across contexts, the study provides airlines with actionable insights for service design, bundling, and pricing. The results offer a context-sensitive framework for enhancing airline ancillary revenue strategies.
Mandal et al. (Thu,) studied this question.