Mind the Gap: Examining the Gap in International Passenger Expectations and Perceptions of Service Quality in Low-cost Carriers

2021 ◽  
Vol 25 (4) ◽  
pp. 419-426
Author(s):  
Jacinta Dsilva ◽  
Sreejith Balasubramanian ◽  
Cody Morris Paris

Meeting or exceeding passengers' service quality expectations has become a critical factor for lowcost carriers (LCC). Still, only limited efforts have been made to date to investigate the differences (gap) in LCC passengers' expectations and perceptions. A comprehensive 25-item SERVQUAL framework for LCC was first developed through an extensive literature review and insights obtained from exploratory interviews and focus groups with passengers and industry experts. Using survey data of LCC passengers, the validity and reliability of the framework were first established, and then the differences in the expectations and perceptions were understood. The results indicate that none of the service quality attributes of LCCs have met, let alone exceeded, expectations, and the most significant gaps were found for "reliability" and "responsiveness" dimensions. With the growing global demand for budget travel and new LCCs entering the market, the study provides timely insights for LCCs to narrow the expectation–perception gap and achieve competitive advantage.

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):  
Yudi Fernando ◽  
Norizan Mat Saad ◽  
Mahmod Sabri Haron ◽  
Suhaiza Zailani

This paper examines the airline industry to develop a synergy model in internal and external suppliers for Asian airlines industry. An extensive literature review is conducted to present a synergy model to develop Asian airline competitiveness, safety and service quality. The literature review is highlighted to seek the relationships between internal marketing and internal service quality and identify whether the relation of supplier can moderate them. The review reveals that a synergy model based on internal marketing, internal service quality and supplier relations can overcome the Asian industrial phenomenon, especially in maintaining the service consistency and competitiveness. This model is needed for developing airline service and safety. Research in airline business is critical, as the quality of the airline service is declining in contrast with this industry’s growth. This paper provides insight into two important suppliers needed for the success of the airline industry.


Author(s):  
Güllü Gençer ◽  
Kansu Gençer

Empowerment is an approach that provides employees to participate in the management, control the processes, and decide about the problems by taking initiatives. Employee empowerment is important to develop service quality, respond faster to customer needs, ensure customer satisfaction and loyalty, and provide competitive advantage to the organization. In this context in the tourism sector where service presentation and consumption take place in a direct relationship with the customer, employees should be empowered. In this chapter, definition and importance of employee empowerment, employee empowerment approaches, concepts about the employee empowerment, employee empowerment elements, methods that enable employee empowerment, employee empowerment in tourism organizations, and the benefits of employee empowerment are explained by literature review.


2019 ◽  
Vol 17 (4) ◽  
pp. 719-735
Author(s):  
Hewa Siliyange Athushla Madhubhashana ◽  
B.A.K.S. Perera ◽  
Colombapatabendige Savindi Ranthika Perera

Purpose Many countries have started to use post-tensioned (PT) concrete because of its sustainability and low cost. However, it is not quite popular in Sri Lanka as the required knowhow and technology are not available within the country. By introducing PT concrete to the country, unwanted costs and time overruns could be eliminated from the construction projects. This paper, therefore, aims to identify the suitability and acceptability of PT concreting for/in Sri Lanka. Design/methodology/approach An extensive literature review was first carried out to gather knowledge on PT concreting. The four case studies that followed it included eight semi-structured interviews and a document review. Ten expert interviews were conducted finally to strengthen the findings of the literature review and case studies. Cross-case analysis and NVivo 11 content analysis software were used to analyze the data gathered. Findings Findings reveal that PT concreting saves cost and time of construction and that it can have a control over the resources required for construction, which makes it environment-friendly. PT concreting allows thinner concrete sections, extended spans, stiffer walls that resist lateral loads and stiffer foundations that resist the effects of shrinking and swelling soils. Originality/value It is found that PT concreting is more suitable for the construction industry in Sri Lanka than traditional concreting.


2019 ◽  
Vol 19 (3) ◽  
pp. 213-234
Author(s):  
Kalim Khan ◽  
Tapish Panwar

Limited theoretical support on establishing a brand as a source of sustainable competitive advantage (SCA) has impaired the idea of strengthening brands for SCA. Acknowledging brands as assets and exploring brand makeover strategies could be helpful for an organisation to create and sustain a competitive advantage. This paper aims at proposing and cementing this view about brands and explores various strategies for brands to enjoy competitive advantage. An extensive literature review has been carried out to build associations between a brand and resulting SCA, and a theoretical classification that can encapsulate all possible brand makeover strategies has been proposed by analysing various facets of brands, known as brand elements. Firms must ensure that brands undergo a makeover regularly in order to sustain this competitive advantage. Brand makeover strategies will help marketing managers to secure and exploit brands as an asset in the long term and in a profitable way.


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