Abstract
This study aims to determine the effect of ticket price and service quality on customer loyalty through passenger satisfaction as an intervening variable on the Low Cost Carrier (LCC ) of Lion Air airlines. Low Cost Carrier airlines which have relatively cheap ticket price, but due to the economic crisis in Indonesia, these air transportation services are relatively expensive compared to the previous year, which according to the Indonesian National Air Carrier Association, the increase reached almost 40-120% for each airline, because the increase that occurred made LCC airlines, especially Lion Air, experience a very drastic decrease in passengers by 35% in 2019, apart from ticket price increases, the quality of service provided by lion air airlines is also still not good so that passengers are not satisfied with Lion Air airlines. This research was conducted at Soekarno Hatta International Airport. The study was conducted using quantitative methods, with a sample of 100 respondents and data were taken using a questionnaire and processed using smart-PLS 3. The results of this study are from 7 proposed hypotheses, 6 of which are accepted and 1 of the hypothesis is rejected, for the rejected hypothesis is the effect of ticket price on the loyalty of Lion Air airline passengers.
Highlights
Airlines have different marketing strategies to be able to compete with other airlines so that they can sell seats as much as possible and make customers satisfied with the services provided so that they will buy back the services offered, to attract the attention of customers and to support the needs of the Indonesian people for transportation services that continue to increase under the increasing development of the nation
As a result of the economic crisis that occurred in Indonesia, which made Ticket Prices more expensive than usual, there was a decrease in demand for aviation services due to the higher Ticket Prices since the beginning of 2019, as recorded on the official website of the Directorate General of Air Transportation about air freight traffic passenger air freight services decreased from the previous year reached 12,55%
A very drastic decrease occurred at Lion Air where passengers decreased by 35% from the previous year, which is due to Ticket Price increases that occurred on Lion Air airlines; the Ticket Price itself is a significant factor in the decision of passengers in buying transportation services as research conducted by (Lubis & Hidayat, 2017) fattened that Ticket Price perceptions have a positive and significant effect on purchasing decisions(Lubis & Hidayat, 2017)
Summary
Airlines have different marketing strategies to be able to compete with other airlines so that they can sell seats (seats) as much as possible and make customers satisfied with the services provided so that they will buy back the services offered, to attract the attention of customers and to support the needs of the Indonesian people for transportation services that continue to increase under the increasing development of the nation. As a result of the economic crisis that occurred in Indonesia, which made Ticket Prices more expensive than usual, there was a decrease in demand for aviation services due to the higher Ticket Prices since the beginning of 2019, as recorded on the official website of the Directorate General of Air Transportation about air freight traffic passenger air freight services decreased from the previous year reached 12,55%. A very drastic decrease occurred at Lion Air where passengers decreased by 35% from the previous year, which is due to Ticket Price increases that occurred on Lion Air airlines; the Ticket Price itself is a significant factor in the decision of passengers in buying transportation services as research conducted by (Lubis & Hidayat, 2017) fattened that Ticket Price perceptions have a positive and significant effect on purchasing decisions(Lubis & Hidayat, 2017). In addition to rising ticket prices, which makes lion air passenger demand decrease drastically, Lion Air airline often disappoints customers
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
