Abstract
The main purpose of this study was to investigate the effect of in-flight service quality on value for money for business passengers in airlines. In this study, in-flight service quality included four dimensions—seat comfort, staff service, food and beverages, and in-flight entertainment—while value for money was used as a dichotomous variable. In the study, 1096 business passenger reviews were employed through secondary data. Logistic regression analysis was used to investigate the relationships between the variables and finally the success of classification was tested by the ROC (Receiver Operating Characteristics) curve. As a result, the findings indicate that the proposed logit model sufficiently explains the relationship between in-flight service quality and value for money in business passengers. Moreover, the study provides a deep understanding of how passengers perceive in-flight service quality in business class. The study also reveals that seat comfort has the highest impact on value for money.
Highlights
The airline industry, which has been growing steadily since the Second World War, reached4.1 billion passengers in 2017 (ICAO 2018) a number which is expected to nearly double to reach7.8 billion passengers by 2036 (IATA 2017)
A logit model, which measures the effect of in-flight service quality on value for money for business class passengers, was tested on 1096 business passengers, with the aim of obtaining more explanatory power due to the larger sample size
In-flight service quality was found to have a significant impact on value for money
Summary
The airline industry, which has been growing steadily since the Second World War, reached4.1 billion passengers in 2017 (ICAO 2018) a number which is expected to nearly double to reach7.8 billion passengers by 2036 (IATA 2017). In a more distant projection, this number is expected to reach 10 billion passengers by 2040 (ICAO 2018). The carriers appealed to leisure travelers with their low ticket prices, and in the following period, they started to appeal to business passengers by increasing their customer portfolio (Mason 2001). This has made the competition between LCCs and FSCs (Full Service Carriers) even more destructive. The reason for this is that the business passengers, which constitute a large part of the profitability of FSCs, have been gradually shifting to LCCs. FSCs should create a sense of value that will respond to the needs of business passengers in order for them to be sustainable (Mason 2006).
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