Major Factors Influence Passenger Loyalty In The Low-Cost Airline Business: The Case Of Vietjet Air

Abstract

The low-cost airline (LCA) sector in Vietnam has recognized the significance of passenger relationship management due to the intense competition in the transportation industry. Nonetheless, certain factors that influence the loyalty of LCA passengers, such as the self-efficacy of service employees, pricing, service recovery, passenger trust, and satisfaction, have not been given appropriate attention. This study investigates the impact of crucial antecedents on passenger loyalty in the context of Vietjet Air – a low-cost airline in Vietnam. A total of 209 LCA passengers who had experienced airline service were surveyed primarily through an online form. The findings of our study suggest that service employees who are effective not only have a favorable impact on service recovery and pricing, but also augment the trust of passengers. The self-efficacy of service employees has been found to have a negative correlation with negative service experiences. However, its primary effect is on enhancing passenger satisfaction. The results of our structural equation modelling analysis provide empirical support for our theoretical predictions that the self-efficacy of service employees, the effectiveness of service recovery efforts, and the level of trust that passengers have in the service provider significantly influence passenger satisfaction. The enhancement of passenger loyalty is primarily driven by the satisfaction of passengers. The present study offers new perspectives on the behaviors of passengers in the context of LCA and highlights the managerial and research implications that can aid in establishing effective passenger relationship management.