The Understanding of Airlines Overbooking by Some Airlines at the Soekarno Hatta International Airport

Abstract

In order to optimize operational efficiency and increase profit, the airline managers emphasize an all-out promotion of continuous improvement and make the application of techniques of operations that will lead to success. The other way is the process of overbooking that is one of the common strategies implemented practically by management of airline company. Overbooking is applied extensively in the service industry to protect themselves from unwanted situations such as cancellations and no-show passengers. But during the implementation of the parties' airline, overbooking can resist some customers when the number of arrivals exceeds the existing capacity on flights. The accomplishment of handling overbooking as well as less satisfaction can make customers upset and doubtful about maintaining their loyalties in an airline company. Therefore this study discussed about overbooking from customer perspectives in order to be able to understand more about process of overbooking and overbooking policies conducted by the airline so that customers did not feel upset. In this paper, promotional activities and customers perspective on overbooking in an airline company have a strong correlation of repurchase by the customer with a score of 73.1% or 0.731 value of pearson correlation that is done through system spss.