Airline Choices by US Hispanics
Aerolineas Argentinas plane at La Paz, Bolivia
(photo credit: P. Verdin)
One of the immediate consequences of airline deregulation is the emergence of multiple airlines serving the same route, leaving consumer with more choices at lower prices. But when consumers are presented with multiple options, how would they choose? What are the important factors in their decision-making processes?
In a previous note, we had treated the subject of the travel habits of U.S. Hispanics. We will draw on some research data taken from the Total Audience Survey conducted by Magazine Metrics in 1997. This is a mail survey of 18,100 adults (age 18+) drawn as a representative of the total population in the USA.
We recognize that there are two general categories of travelers --- people who travel for business and people who travel for personal/vacation reasons. We first look at the people who travel for personal/vacation reasons. These people were asked to name the three most important factors in choosing an airline. The results are shown in the table below for US Hispanic adults as well as for Total US adults. The largest differences lie in the first three factors --- US Hispanics are slightly less concerned about ticket prices, and more about the airline's reputation, especially with respect to safety issues. These differences may be due to the fact that US Hispanics make more international trips, especially to Latin America, than non-Hispanics, wherein they perceive that there are trade-offs between cheaper ticket prices and airline safety.
Important Factor in Choosing an Airline |
% US Hispanic Adults who made personal/vacation trip in last 3 years |
% Total US Adults who made personal/vacation trip in last 3 years |
Ticket Price | 48% | 56% |
Airline's safety record | 37% | 33% |
Airline's reputation | 34% | 29% |
Scheduling/availability of flights | 28% | 31% |
Nonstop flights | 24% | 21% |
Frequent flyer miles | 13% | 13% |
Friends' or relatives' recommendations | 12% | 11% |
Travel agent recommendation | 11% | 11% |
Special VIP treatment | 4% | 2% |
Hotel/rental car partnerships | 3% | 3% |
Mileage partnerships with other airlines | 1% | 1% |
(source: Total Audience Survey, Magazine Metrics)
We next look at the situation of the business travelers. According to the next table, the airline's reputation and safety record are more important for US Hispanics than non-Hispanics, as in the case for personal/vacation travel. In addition, the US Hispanics place greater importance on nonstop direct flights, which would be important on the longer international trips.
Important Factor in Choosing an Airline |
% US Hispanic Adults who made business trip in last 3 years |
% Total US Adults who made business trip in last 3 years |
Airline's reputation | 33% | 21% |
Scheduling/availability of flights | 31% | 30% |
Ticket price | 30% | 33% |
Airline's safety record | 27% | 21% |
Nonstop flight | 27% | 17% |
Previous experience | 20% | 18% |
Your company's travel policy | 18% | 18% |
Frequent Flyer miles | 16% | 15% |
Travel agent recommendation | 8% | 8% |
Friends' and relatives' recommendation | 5% | 5% |
Special VIP treatment | 3% | 2% |
Hotel/rental car partnerships | 1% | 2% |
(source: Total Audience Survey, Magazine Metrics)
One of the modern messages of contemporary marketing is the importance of market segmentation. The US Hispanics form an identifiable segment of the population, with a distinct self-identity. In the case of air travel, the US Hispanic have somewhat different travel behavior, especially with respect to their choice of destinations, and they also place somewhat different priorities on choosing airlines. Furthermore, US Hispanics have unique media behavior. As such, the US Hispanics constitutes an obvious market segment for the travel industry.
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(posted by Roland Soong on 12/6/99)
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