Exploring Service Quality of Low-Cost Airlines in Europe: an Integrated MCDM Approach

Emrah Durmaz,Şahap Akan,Mahmut Bakır

doi:10.18559/ebr.2019.2.6

Abstract

This study aims to evaluate service quality performance of major LCCs (Low Cost Carriers) in Europe by the MCDM (Multi-Criteria Decision Making) methodology. In addition it focuses on managerial business models and includes the international airline service providers that have applied the cost leadership strategy. In the study passenger reviews based on customer-rating systems are adopted as an alternative data source. For this purpose 24,971 passenger reviews, including 7 evaluation criteria, are analyzed. In this integrated methodology the Entropy method is used to weight the service quality criteria and the WASPAS method is used to rank the airlines. A sensitivity analysis is also applied and the robustness and stability of the application are confirmed. Consequently Jet2.com demonstrates the best service performance overall and legroom is the most important evaluation criterion.

Highlights

This study aims to evaluate service quality performance of major LCCs (Low Cost Carriers) in Europe by the multi-criteria decision making (MCDM) (Multi-Criteria Decision Making) methodology
When this study is considered from the methodological point of view the coefficients obtained by the Entropy method denote the most important expectation factors and the data used in the WASPAS application denote how the customers perceive the service performance offered by the airlines
This study presents an alternative approach to managers in that it demonstrates passengers’ attitudes towards their service quality and their relative strengths and weaknesses against their competitors

Summary

Introduction

Intensifying competition and liberalization tendencies have driven companies in the service industry to seek ways of differentiation (Parasuraman, Zeithaml & Berry, 1988, p. 12). Deregulation and liberalization, which began in the 1970s in the US and spread to Europe, dramatically changed the structure of the airline industry Economics and Business Review, Vol 5 (19), No 2, 2019 taken root, various changes have taken place in tourism models, income management policies have begun to be implemented and the airline industry has gained a more competitive character with the emergence of LCCs In this context some policies implemented by LCCs differ from those applied by Full-Service Carriers (FSCs). Some policies applied by the nature of this business model are the implementation of a simple pricing strategy, use of secondary airports, point-to-point operations, service with a single flight class, a single type of aircraft and fast turnaround operations The low prices and the innovations they have brought to the industry have increased the options for passengers and further increased the competition between airlines (O’Connell & Williams, 2005, p. 259)

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Discussion

Conclusion