Passenger Intentions towards Halal Food in Low Cost Carriers: Key Influencing Factors

10.31355/71 ◽  
2020 ◽  
Vol 4 ◽  
pp. 009-021

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose....................................................................................................................................................................................................... Low cost airline passengers are sensitive towards value for money. They also have their own preferences and perceptions on what encompasses value. This paper discusses passenger intentions to purchase halal food with a specific reference to Malaysia, which has a majority Muslim population (57%). The purpose of this study is to determine the most influential factors that explain passenger intentions to purchase halal meals when flying with low cost air-lines. Background......................................................................................................................................................................................................... In-flight meals are one of the services being offered by low cost airlines albeit at an additional price. Passengers travelling on LCC flights are required to pay for their meals. The relative importance of food choice and its availability in forming passenger satisfaction with low cost carriers is studied and examined. Although low cost carriers have proven to be a major competitor to full service airlines in Malaysia, halal food availability remains one of the major concerns for passengers flying with low cost airlines. Methodology....................................................................................................................................................................................................... A random sample approach was used to select passengers one major air- port located in Kelantan. The passengers were interviewed face-to-face using a structured questionnaire. Factor analysis was applied to explain the factors influencing passenger intentions to purchase halal food during a low cost flight. Contribution........................................................................................................................................................................................................ This paper highlights the factors which explain passenger intentions towards purchasing halal food while flying with low cost airlines. In Malaysia, halal food has been gaining popularity not only from a religious perspective but also due to other positive perceptions increasingly being held by the public that halal food is a more wholesome, hygienic and quality food choice. Therefore different groups of passengers, of various religious backgrounds are increasingly seeking halal food. Policy makers and airline managers based in the South Asia region traditionally did not place a high priority on halal food, however as halal food is becoming more popular, there is increased awareness on the importance of providing halal food to clientele. There are more efforts to study how providing a halal food service can positively impact passenger satisfaction as well as play a role in determining the behavioral intentions and motivation behind passengers choosing to fly with low cost carriers (LCC). Findings .............................................................................................................................................................................................................. The findings indicate that attitude, perceived behavioral control and subjective norms have an impact towards passenger intention to purchase halal food on LCC flights. The results of factor analysis indicate that attitude is the major factor towards influencing passenger purchase intentions. Recommendations for Practitioners................................................................................................................................................................. The findings offer meaningful implications for marketing researchers and practitioners in the low cost airline industry. It can help airline companies further understand the needs and wants of existing and potential customers. Local and international airlines need to fulfill the needs of their clientele by serving more halal options on flights. Recommendation for Researchers.................................................................................................................................................................... Progress has been made in the availability of in-flight religious ethnic foods but many important research questions and technical support needs remain. Impact on Society............................................................................................................................................................................................... The research will assist to highlight purchase intention towards halal food and the importance of religious ethnic foods (e.g. halal food in this case) to meet the passenger requirements. Future Research................................................................................................................................................................................................ Future studies can be conducted to explore local and international insights towards halal in-flight food within a broader geographical areas and locations.


2021 ◽  
Vol 58 (2) ◽  
pp. 7-20
Author(s):  
Ronald Sukwadi ◽  
Angela Susanto ◽  
Yun-Chia Liang

Nowadays, the market is getting competitive in all aspects of the survival of the company. Companies, especially in the service industry, realize that in order to win the market, they need to explore new ways of delighting customers. The airline industry has played a vital role in Indonesia's modern development and competitiveness. Fierce competition and shrinking profits have impelled the airlines to stress upon improving the quality of the services being provided to the passengers. Passengers have become very specific about their service needs and often tend to shift to others that pro-vide better services. Service quality has emerged as a critical consideration for airlines in the competitive global mar-ket, coinciding with Low-Cost Carriers' rapid proliferation (LCCs), bringing a paradigm shift in airline business strat-egy. Twenty-five service quality attributes identified through extensive literature review and results obtained through five modified AIRQUAL dimensions are fruitful for airline managers to address service quality issues. This paper aims to evaluate LCCs’ service quality in Indonesia using the Extenics innovation theory. The Extenics innovation theory is a kind of method with the combination of formalization, quantification, and logicalization. It is effectively applied to put forward creative ideas of new services of airlines. The concepts and principles of service attributes classification based on Extenics are also discussed. To consider interdependence and to calculate the relative importance of each criterion, the AHP method is applied. The study demonstrates and signifies that the Extenics theory and AHP method are promising and pragmatic evaluation model for customer-oriented airline strategic planning. This study has a number of practical implications for LCC airlines, its policy makers and managers. Findings of this study suggest that LCC airlines should focus on appropriate strategies for improving their customers’ satisfaction. Airlines should con-cern on service failures such as delays by providing extra customer care to supplement required material compensation and provide valuable objective feedback and information. A theoretical implication of this study is that Extenics inno-vation theory can classify and prioritize the service attributes of airlines. Further, the scope of future research works has been discussed at the end to conclude the paper.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsiu-Fen Lin

PurposeBy extending the existing service quality dimensions and reflecting the low-cost carriers (LCCs) context, the purpose ot this study aims to develop the research model to examine whether passenger satisfaction mediates the relationship between service quality and behavioral intentions of LCCs across low- and high-experience passengers.Design/methodology/approachData collected from 320 passengers (180 for low-experience passengers and 140 for high-experience passengers) to test the research model. The partial least square structural equation modeling approach was used to perform the path modeling and multi-group analysis.FindingsThe results confirm that passenger satisfaction mediates the relationship between four service quality constructs (tangible features, service reliability, quality of personnel and online ticketing service) and behavioral intentions (repurchase and recommendation intentions) for both low- and high-experience passengers. However, convenient flight schedule has a significant influence on passenger satisfaction only for low-experience passengers.Practical implicationsThe results of multi-group analysis indicated that passenger satisfaction exerts stronger effect on recommendation intentions for low-experience passengers. LCCs managers' priority should be placed on providing satisfying service experiences to less experienced passengers. Improved passenger satisfaction through superior service quality motivates low-experience passengers to recommend LCCs, thus increasing the positive word-of-mouth promotion.Originality/valueTheoretically, this study is first considering both low- and high-experience LCCs passenger perceptions to examine how passenger satisfaction mediates the relationship between service quality and post-purchase intentions. From the managerial perspective, the findings can provide useful management insights into developing multi-faceted strategies that allow LCCs firms to restore passenger confidence and retain their repurchase intentions.



Author(s):  
Farrah Zeba ◽  
Musarrat Shaheen ◽  
Raveesh Krishnankutty

In the hyper-competitive Indian airline industry, the low-cost carriers as well as full-service airlines are in dire need of innovative marketing strategies to engage their customers. To understand the dynamics behind the process of customer engagement, the purpose of this paper is to gain insights into the lived experience of consumers about their online air-ticket bookings experiences. In total, 60 frequent air travellers were approached to participate in the study and the self-completion diary method was incorporated to record their ticket booking experiences. The responses recorded in the diaries were analyzed on the basis of their content from which eight themes were derived. The findings bring forth the importance of hedonic experiential values along with utilitarian experiential values toward the engagement of customers during the online air-ticket booking process. The current study is one of the pioneers in conceptualization of customer engagement as a third-order construct by uncovering the sub-dimensions of the second order factors—utilitarian and hedonic experiential values.



Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.



Author(s):  
Rose Luke ◽  
Jackie Walters

Deregulation or liberalisation of air transport has had major global impacts on the domestic air transport markets, with effects ranging from stimulation to changes in the structure and functioning of these markets. In South Africa, deregulation has had wide-reaching effects on the domestic market. The purpose of this article was to investigate the current domestic air transport market. A literature review was performed to examine the effects of deregulation in other domestic air transport markets around the world. This was followed by a review of the South African domestic air transport market prior to deregulation in order to determine the changes that were made following deregulation. The ten-year period immediately following deregulation was also examined; this period was characterised by relatively large numbers of market entries and exits. A database was obtained from the Airports Company South Africa; air traffic movements, passenger numbers and load factors were evaluated. The study showed that the market is still characterised by regular market entries and exits. Also that the entry of the low-cost carriers has stimulated the market, resulting in increased air traffic movements, higher passenger numbers, higher load factors in general and the opening of a secondary airport in Gauteng, Lanseria International. Deregulation and, more specifically, the entry of the low-cost carriers has resulted in structural changes in the market and more choice for passengers.



Author(s):  
Mahmut Bakır ◽  
Sahap Akan ◽  
Ozlem Atalik

Since the liberalization of the airline industry, the low-cost business model has been developed worldwide and a new business model of long-haul low-cost carriers (LHLCCs) has evolved. This chapter aims to investigate the LHLCC business model from a customer-oriented perspective in terms of service quality and perceived value. For this purpose, the authors investigated the effect of service quality on perceived value for money for LHLCCs. In this chapter, user-generated content was adopted to collect data, and 824 user-generated airline reviews were collected from TripAdvisor.com, the largest tourism-related repository. In order to investigate the relationship, a predictive correlational design was structured and a logistic regression analysis was applied. To contribute to the regression analysis, a receiver operating characteristic (ROC) analysis was performed to measure the classification success. As a result, the logit model describes well the relationship between variables for LHLCCs.



2010 ◽  
Vol 2 (3) ◽  
pp. 1-43 ◽  
Author(s):  
Steven Berry ◽  
Panle Jia

The US airline industry went through tremendous turmoil in the early 2000s, with four major bankruptcies, two major mergers, and various changes in network structure. This paper presents a structural model of the industry, and estimates the impact of demand and supply changes on profitability. Compared with 1999, we find that, in 2006, air-travel demand was 8 percent more price sensitive, passengers displayed a stronger preference for nonstop flights, and changes in marginal cost significantly favored nonstop flights. Together with the expansion of low-cost carriers, they explain more than 80 percent of legacy carriers' variable profit reduction. (JEL L13, L25, L93)



2020 ◽  
Vol 18 (3) ◽  
pp. 1-20
Author(s):  
Farrah Zeba ◽  
Musarrat Shaheen ◽  
Raveesh Krishnankutty

In the hyper-competitive Indian airline industry, the low-cost carriers as well as full-service airlines are in dire need of innovative marketing strategies to engage their customers. To understand the dynamics behind the process of customer engagement, the purpose of this paper is to gain insights into the lived experience of consumers about their online air-ticket bookings experiences. In total, 60 frequent air travellers were approached to participate in the study and the self-completion diary method was incorporated to record their ticket booking experiences. The responses recorded in the diaries were analyzed on the basis of their content from which eight themes were derived. The findings bring forth the importance of hedonic experiential values along with utilitarian experiential values toward the engagement of customers during the online air-ticket booking process. The current study is one of the pioneers in conceptualization of customer engagement as a third-order construct by uncovering the sub-dimensions of the second order factors—utilitarian and hedonic experiential values.



2011 ◽  
Vol 23 (1) ◽  
pp. 37-70 ◽  
Author(s):  
Denton L. Collins ◽  
Francisco J. Román ◽  
Hung C. (“Leon”) Chan

ABSTRACT This paper examines the influence of a firm's business model on the relative persistence of profitability in the U.S. airline industry. The strategic management literature describes a firm's business model as reflecting how that firm chooses to compete in the marketplace. Given this linkage between business model, competition, and the marketplace, we conjecture that the persistence of profit margin and asset turnover ratios will be influenced by firms' choices of business model. Further, we hypothesize that this choice of business model influences the relative persistence of the individual revenue and expense components of current profit margin and asset turnover ratios for future profitability ratios. We test these conjectures by (1) partitioning our sample firms according to business model (network carriers versus low-cost carriers), and (2) decomposing sample firms' profit margin and asset turnover ratios into components relating to pricing policy, input cost control, and productivity. We find that the profit margin and asset turnover ratios of network carriers tend to be more persistent than those of low-cost carriers, and that this differential persistence is reflected in the associations between current revenue and expense components, and future profit margin and asset turnover ratios.



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