Customer Loyalty: A Case Study Involving the Three Indian Airlines Indigo, SpiceJet, and AirIndia

Abstract

India’s aviation industry is largely untapped with huge growth opportunities. The three largest domestic airlines by market share in India are IndiGo, SpiceJet, and Air India.Some travellers have grown disillusioned with traditional loyalty programs, citing a focus on high-value business travellers with no attention to the less-frequent, leisure flyer. So, this research aims at how airlines should be rethinking customer loyalty. The objective of this research isto explore the nature of consumer loyalty and its major determinants for the three airlines in India-Indigo. SpiceJet, and Air India, and To identify the differences concerning attitude, habit, satisfaction, loyalty, and augmented service (Service, safety, comfort, luggage allowance and bonus) amongst the three airlines. The primary data was collected through a structuredquestionnaire from 600 travellers at leading airports in India. The findings of the research showed that the age andoccupation of the respondents suggest a significant variance among the three airlines. The augmented service factors (attitude, habit, loyalty, safety and bonus) of the respondents suggest a significant variance among the three airlines. Conclusion, implications of the study,and suggestions for future researchers are also included in the research.