The relationship between air travel behaviour and the key life stages of having children and entering retirement

Abstract

The airline industry sets fares in the knowledge that market segments behave differently in response to pricing changes. Traditional market segments, typically split into business and leisure travellers, can be developed further through the examination of the influence that life stage exerts upon air travel choices, particularly for leisure trips. Life stage can be defined as a specific, optional event. The two key life stages of having children and entering retirement are examined in this paper in relation to individual air travel behaviour, in order to determine the primary characteristics of the associated market segments. The paper is based on a series of household air travel surveys and focus groups. Findings show the distinct characteristics of family air travel, such as higher air fare sensitivity, as well as in-group variations due to factors such as the age of the child (or children). Retirement is also shown to impact upon air travel, affecting individuals in different ways. Some in retirement take advantage of greater time availability and fly more frequently; others will cut back, say due to health problems. Aviation industry implications, both in terms of surface access to airports and regional airport provision, are also presented.