Low-Cost Airlines Not So Low-Cost – Exploring the Relationships among Travel Motivation, Service Quality and Satisfaction: The Moderating Roles of Perceived Value

Abstract

The emergence of low-cost airlines has expanded travel options for consumers by offering more affordable fares. While these airlines are often associated with being inexpensive, their value proposition for passengers extends beyond just the price. However, there has been limited research addressing this aspect. To fill this gap, we surveyed low-cost airline passengers to explore their satisfaction levels and factors influencing their overall service experience. Our findings indicate that while customers may be content with the affordability of their tickets, their satisfaction with the overall service experience may vary. Specifically, this study investigates customer satisfaction with low-cost airlines by examining service quality and perceived value. Building upon existing literature, we designed a survey based on a second-factor analysis to address the research gaps. The results reveal that enhancing the service quality of low-cost airlines can lead to improved perceived value and customer satisfaction. This study has important theoretical and managerial implications for the future development of low-cost airlines, highlighting the significance of prioritizing the quality of the customer experience.