Low-Cost Carriers versus High-Speed Rail: Understanding Key Drivers of Passengers' Choice in China

Abstract

Abstract:This study investigated passengers' choice between high-speed rail (HSR) and low-cost carriers (LCCs) in China. A survey of 1,080 passengers was performed and a logit regression method was used to identify the key factors in modal choice behaviors. The results indicated that frequency, price, perceived behavioral control (PBC), and attitudes were significant determinants of choice between HSR and LCCs, while service quality, access, and subjective norms were not important factors. Group differences in terms of the factor impact were also identified. Frequency and attitudes had a greater influence on business passengers, compared to nonbusiness passengers, in terms of their mode preference. Price affected the two types of passenger groups in a similar way, while PBC only influenced the choice behavior of the nonbusiness passengers. These findings fill the knowledge gap of the choice between HSR and LCCs and provide useful insights for HSR and LCCs to improve competitiveness in China.