Study of service quality, price sensitivity, and passenger satisfaction in India’s airline sector

Abstract

Understanding the determinants of customer satisfaction is crucial for airlines to maintain and grow their customer base. This study aims to analyze how various service quality dimensions and prices impact airline attractiveness using the service quality (SERVQUAL) model. Data were collected from 400 respondents through an online questionnaire using the convenience sampling method. The respondents included a diverse mix of frequent flyers, occasional travelers, and business professionals, ensuring a comprehensive understanding of passenger perspectives in the Indian airline sector. This study tested the hypotheses by analyzing the data using structural equation modelling (SEM) to understand the relationships between service quality attributes, price, passenger satisfaction, and airline attractiveness. The results indicate that empathy, price, tangibles, and satisfaction determinants positively develop attractiveness among passengers to use and continue in airline services. The relationships between empathy and satisfaction (β = 0.130, t = 2.317, p = 0.021), tangibles and satisfaction (β = 0.214, t = 4.321, p = 0.000), price and satisfaction (β = 0.425, t = 7.825, p = 0.000) were statistically significant, and satisfaction positively influenced airline attractiveness (β = 0.895, t = 75.529, p = 0.000). The assurance, reliability, responsiveness attributes must improve to attract passengers. The results provide insights into aviation industry and help them to make better policies and strategies to implement services and customer satisfaction to sustain heavy aviation competition in India. AcknowledgmentThe authors express gratitude to GITAM University, department heads, leadership of department of management and all individuals who have supported and contributed to the successful execution of this study.