From legacy practices to passenger-centric recovery : understanding preferences for emerging solutions in passenger disruption management

Abstract

This thesis explores how Passenger Disruption Management (PDM) tools can enhance service recovery following flight disruptions, focusing on their potential to align recovery strategies with evolving passenger expectations while improving operational efficiency. Grounded in Service-Dominant Logic (S-D Logic), the research emphasizes understanding passengers' diverse preferences through a customer-centric approach, recognizing value as flowing multidirectionally rather than determined solely by the firm.Four studies were conducted to assess how PDM tools enhance recovery and to gain insights into passenger preferences and trade-offs between recovery attributes following disruptions. Study 1 examined how a PDM provider delivers automated solutions that meet both airline operational needs and passenger expectations, improving efficiency and personalization. Study 2 gathered insights from disrupted passengers, highlighting critical gaps in current recovery efforts and the importance of both tangible and intangible elements. Using insights from Study 2, Studies 3 and 4 used Choice-Based Conjoint (CBC) analysis to explore further how passengers evaluate recovery options, focusing on tangible versus intangible attributes, firm-led recovery versus passenger choice, and legacy versus PDM tool-enabled solutions.The findings revealed that while tangible elements like compensation and rebooking are prioritized, timely resolutions and frequent updates – key features of PDM tools – are also valued. Segmentation analysis underscores the need for airlines to offer customizable recovery options that celebrate the heterogeneity of their passenger base. Market simulations suggest that cost-effective intangible elements can offset the need for expensive tangible remedies, which is crucial as regulatory pressures exacerbate disruption costs.This research has implications for how airlines can optimize service recovery by leveraging PDM tools to offer prompt resolution, frequent updates, and choices over recovery outcomes, aligning with passenger expectations for speed, transparency, and flexibility. The findings also suggest that airlines can mitigate the financial strain of tangible recovery efforts by capitalizing on low-cost or no-cost intangible attributes.