Roles of service quality, perceived price and satisfaction to passenger’s loyalty

Abstract

This study aimed to examine the commercial aviation industry, whether the level of service quality, perceived price and passenger satisfaction have the potential to have a high effect and how these three variables produce passenger loyalty. This study presents a brief review of the current competitive situation that is faced by commercial airlines, findings of previous research on service quality, price and passenger satisfaction. This study also determine strategic steps that can be taken by the Indonesian National Airline, especially in facing business competition, retaining customers and expanding consumer market share. This study is descriptive quantitative research. Data collection was done by distributing questionnaires to 200 respondents, which is then processed using SmartPLS. The results of this study indicate that service quality, customer satisfaction have a positive and significant effect on passenger loyalty, while Perceived price does not have a positive and significant effect on passenger loyalty.