Beyond the price: Unlocking the power of service employee self-efficacy in building low-cost airline loyalty in emerging countries

Abstract

In the dynamic landscape of the airline industry, Service Employee Self-Efficacy (SE) has increasingly been recognized as a cornerstone for enhancing passenger experience. Particularly in low-cost airlines, where margins are tight, the efficacy and confidence of service employees can significantly influence passenger loyalty. This study investigates the factors influencing low-cost airline (LCA) passenger loyalty (PL) in emerging countries, focusing on the mediating role of service recovery (SR), passenger satisfaction (PS), and passenger trust (PT) in the relationship between SE and PL. A quantitative research approach is employed, utilizing survey data collected from 209 passengers of LCAs in emerging countries. Structural equation modeling is utilized to analyze the relationships between SE, SR, PS, PT, and PL. The findings highlight the importance of SE in shaping PL and identify SR as a significant mediator in the relationship between SE and PS. The results provide practical implications for LCAs operating in emerging countries and contribute to the limited literature on LCA PL in emerging countries. By emphasizing the importance of SE and implementing effective SR strategies, airlines can enhance PS and PT, ultimately leading to increased PL.