Using longitudinal data from a major airline and the conditional difference-in-differences technique, we analyze the effects of flight delays on passengers' future purchasing behavior. We address the consequences of multiple delays, differentiating their effects on members and non-members of the airline's frequent flyer program. The results show that passengers who have experienced delays fly less than passengers who have not experienced any delay. This effect is convex in the number of delays experienced, stronger in members of the frequent flyer program, and non-decreasing in time.
- Airline customer loyalty
- Flight delays
- Frequent flyer programs
- Indirect costs and soft costs of delays
ASJC Scopus subject areas
- Strategy and Management
- Management, Monitoring, Policy and Law