USE LOW COST CARRIER STRATEGY AS SOLUTION TO REDUCE AIRCRAFT TICKET PRICE IN IRAQ

Low Cost Carrier has a tight competition, nowadays. There are more product offering to interest tourist which one is cheap ticket price or be familiar call Low Cost Carrier. Which one company in Indonesia applying Low Cost Carrier is Lion Air company. The aims of this study is to determine how the characteristics and motivation domestic tourists used Low Cost Carrier at Lion Air in Ngurah Rai International Airport Bali. The study was conducted at Lion Air. The object of this research was the characteristics and motivation of tourists who as means of transport choose Low Cost Carrier. Sample of respondents was 105 respondents. The collected data were observation, questionnaire, interview, literature study and documentation. The questionnaires was used as measuring the characteristics and motivation domestic tourists. The research was conducted using descriptive qualitative technique. The result of this research is domestic tourist characteristic used Lion Air divided into trip descriptor and tourist descriptor. By trip descriptor the tourist has short time to holiday around 3 untill 3 days with purposes of the trip is family trip with period using Lion Air around 2 untill more than 5 times. By tourist descriptor the tourists using Lion Air was teenager or adolescent with average income less than one million. Tourist motivation seen from push factor used Lion Air is cheaper ticket price while pull factor is there are more discount offering by Lion Air. Tourist motivation divided into intrinsic motivation and extrinsic motivation. Intrinsically, domestic tourist motivation used Lion Air by using Maslow theory is Social needs. While extrinsically is nowadays trends used airlines which applying Low Cost Carrier. Recommendation for Lion Air is to improve airlines network to avoid the delay of Lion Airlines.

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Influence of Low-Cost Carrier Attributes towards Airline Choice Decision in Bandung-Surabaya Route

Jurnal Manajemen Teknologi ◽

10.12695/jmt.2021.20.1.6 ◽

2021 ◽

Vol 20 (1) ◽

pp. 98-106

Author(s):

Idham Idham ◽

◽

Prawira Fajarindra Belgiawan ◽

Christina Ari Pramono Putri

Keyword(s):

Low Cost ◽

Mixed Logit ◽

Purchasing Decisions ◽

Online Questionnaire ◽

Ticket Price ◽

Price Increases ◽

Choice Decision ◽

Problem Description ◽

Low Cost Carrier ◽

Airline Company

Abstract. The number of Indonesian domestic passengers which increased rapidly has encouraged for the airlines to expand their market share by opening routes in the local region and one of the promising region is Bandung. In early 2019, the Low-Cost Carrier has implemented paid baggage policy. The changes of airline conditions and regulations could affect consumer purchasing decisions. The airline have to redesign its strategies and conduct a strategy adjusment to identify the consumer's needs and wants these days. Based on the problem description, this research aims to identify what significant attributes influence passenger's purchasing decision-making and determine what elastic and inelastic attributes. Data collection using an online questionnaire then spread to 235 respondents and were analyzed with Mixed Logit Model using BIOGEME software. The results shows that airline's departure time is a significant attribute towards passenger's airline choice. Ticket price also plays a key role in selecting an airline for passengers when the ticket price increases, Passenger will consider choosing other alternative airlines that are more affordable. The results could be used by an airline company to attract the passenger by improving its marketing strategy. Keywords: Low-cost carrier, airline choice, airline attribute, mixed logit, demand elasticities

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