The Impact of the September 11 Attacks on Airline Arrivals and Conventions in Nine Major U.S. Cities

Abstract

The purpose of this study is to research and analyze the impact that the September 11, 2001 terrorist attacks had on airline passenger arrivals and convention attendance in nine major U.S. cities. This study examined convention attendance and airline passenger arrivals from January 2000 to December 2002 of nine cities: gateway cities (Atlanta-Hartsfield International, Chicago-O'Hare International, Los Angeles-International, New York-JFK International), fly-in tourist destinations (Las Vegas-McCarran International, Orlando-International), and non-gateway cities (Houston-George Bush International, Phoenix-Sky Harbor International, and Seattle-International).     

Exploring the perceived competence of airport ground staff in dealing with unruly passenger behaviors

Unruly Passenger Behaviors (UPBs) are a challenge for service provision enterprises, notably the airline industry. To explore ground staff competence and difficulties in dealing with UPBs, a questionnaire was established in consultation with managers of three multinational airlines, and was duly completed by airline ground staff (n = 494). Response analysis using Rasch models identified the most challenging UPBs and assessed staff competence in handling UPBs. Some UPBs were commonly challenging for the staff of all airlines, whereas some were challenging only for the staff of specific airlines. Inter-airline differences emerged in regard to difficulty and staff competence in managing specific UPBs; this could reflect differences in company policy, training programs, staff support, and authorizations provided. These results suggest procedures by which airlines could improve UPB handling, including the establishment of appropriate service-staff authorizations, passenger education, complaint mechanisms, unruly passenger databases, information feedback loops, and staff training courses on procedures for dealing with different UPBs.     

Marketing Culture and Business Performance in the Airline Industry

Abstract

In recent years the airline industry has witnessed increased emphasis on the cultivation of a culture which fosters the effective implementation of marketing programmes. This growing attention stems from the belief that sound marketing practices provide an important source of competitive advantage in the service sector which is characterised by high levels of interaction between firms and their customers. Moreover, marketing academics and managers proclaim that a strong marketing culture leads to customer retention, which in turn, yields higher profitability. In this study an attempt is made to investigate empirically the relationship between UK airline firms' marketing culture and business performance. Our results indicate a strong relationship between marketing culture and business performance. To conclude, implications of the findings for airline managers and avenues for future research are discussed.     

Will you fly with this airline in the future? An empirical study of airline avoidance after accidents

ABSTRACT

While safety is the paramount concern of the airline industry, accidents do happen. The subsequent media attention relating to an airline accident might lead potential passengers to avoid certain airline operators. This study examines factors potentially determining tendencies to avoid such airlines. A self-administered random survey was conducted with 230 respondents in a metropolitan area. Structural equation modelling was employed and the results highlight the significant role of consumer trust and service recovery. Consumer trust plays a mediating role in the relationships between the factors (i.e. previous flight experience, company image, stability attribution, controllability attribution) and the decision to avoid an airline.     

Impact of an Airline Merger on Customer Satisfaction

ABSTRACT

Given the radical changes in the airline industry where many airlines struggle to sustain their financial viability, consolidation appears to be one viable option for airlines. While airlines guarantee that consolidation will bring better customer service, the traveling public fears the effects of mergers that result from less competition. Using the AA/TWA merger, this article presents the results of an empirical study that provides both the airline public and airlines with insight into the real impact of an airline merger on airline service and customer satisfaction.     

Visual Data Mining: Analysis of Airline Service Quality Attributes

The objectives of the study are to identify the key airline quality attributes from online review posts and to examine the effect of identified airline quality attributes on eWOM communication. This study employed data-mining techniques and logistic regression on 901 passenger reviews to evaluate the service quality of passenger airlines. The major contribution was identifying the most salient topics of travelers complimenting and complaining reviews. Passengers’ comments support that service, staff, cabin seat comfort, and entertainment are among the most discussed themes in positive and negative reviews. Additionally, value, seat comfort, staff/service, and catering were found to be significant predictors of airline eWOM.     

The Effect of Cross-Industry Cooperation on Performance in the Airline Industry

Summary

Airline services are one part of the inter-connected network of travel services. Brandenburger and Nalebuff (1995, 1996) suggested that firms may add value to their offerings by cooperating with other members of a firm's value net (competitors, substitutors, customers, and suppliers). In a 14-year longitudinal study, this paper explores the evolution of cooperative relationships between members of the U.S. domestic airline industry and other firms outside the U.S. domestic airline industry, with the goal of identifying performance effects associated with such cooperative alliances. Results of the pooled, cross-sectional time series regression indicate that cooperative alliances outside the U.S. airline industry contribute positively to performance when environments are rapidly changing and variable.     

Recommend or not? The influence of emotions on passengers’ intention of airline recommendation during COVID-19

Due to the COVID-19 pandemic, the airline industry has undoubtedly suffered serious losses. Investigation of passenger's intention to recommend an airline is urgently needed for airline companies to formulate specific retention strategies and revitalize the industry. Therefore, this study mainly sought to identify the latent factors that determine airline passenger's recommendation intention during the COVID-19 period, and investigate how the emotions expressed in passenger reviews affect their intention to recommend an airline. From the period between January 2020 and October 2021, 6798 online reviews were collected and analyzed. The results indicate that four out of eight emotional dimensions, including joy, trust, anger, and disgust, significantly influence passengers' intention to recommend. This study not only extended the applications of the expectancy-disconfirmation theory and Plutchik's emotional theory but also provided instructive suggestions for airline businesses that need to formulate marketing strategies, especially during the COVID-19 period.     

Exploring airline Companies' engagement with their passengers through social network: An investigation from their Facebook pages

Social media is an effective way to engage with an airline, and many carriers include Facebook, Youtube, Twitter and Instagram as vital parts of their customer engagement strategies. The Facebook pages of four top airline companies that won the 2017 World Airline Awards have been used as the source of this study. The Stimulus–Organism–Response (S–O–R) model has been adopted. 281 posts were collected and analyzed by employing the thematic analysis method. The findings reveal that three out of four airline companies, especially those with more company-oriented, tend to stir complaining customers' cognitive and emotions regarding their flight experiences. The findings and recommendations offer airline companies a clearer picture about the airline passengers' concerns and behavior in responding to the Facebook contents posted. Furthermore, this study fills the gap in the existing studies, which lack a framework to investigate how airline companies engage with airline passengers via Facebook posts.     

Consumer Perceptions and Behavior

Abstract

The primary objective of this article is to highlight the importance of consumer perceptions in strategic airline alliance settings. Previous research on strategic alliances, both in the service and manufacturing sector, has mainly focused on issues relating to the organization. Consumer perceptions have generally been ignored-in view of the pivotal role of the consumer in service settings a surprising neglect. The paper focuses on the airline industry, an industry with a high service element, to illustrate how positive results eventuating for partners in a strategic alliance may cover slow shifts in consumer attitudes, and behavior. If not carefully monitored, these shifts may adversely affect performance measures of individual alliance partners in the long-term.     

The Impact of Brand Relationship and Attributions on Passenger Response to Service Failure

It is important for service companies to develop and maintain consistent and stable consumer loyalty. Although consumer brand relationship and attributions have been applied to various service industries, they have not been investigated in the airline industry where passenger emotions are considered critical. This study addresses the consequences of brand relationship quality, the mediating influence of emotions, and the moderating role of switching costs through structural equation modeling of data collected from passengers who had experienced flight delay. The results suggest that (1) airline relationship with passengers is an important and valuable asset, especially in the case of stability attributions, (2) negative emotions play a partial or full mediator role in the causal relationship between attributions and behavioral intentions, and (3) minimizing negative emotions is more effective than relying on switching costs for behavioral intentions. It can be concluded that the airline industry should try to manage passenger emotions more appropriately since passengers have an emotional attachment to their brands and passengers' negative emotions can be influential to repurchase intentions when service failures occur.     

An Analysis of Cruise Ship Rating Guides

ABSTRACT

Cruise vacations are a relatively new tourism product that has evolved from the maritime passenger transportation industry. An introduction to the Cruise industry is followed by an analysis of cruise guides with star ratings, which are widely available in bookstores and libraries. Although these appear well researched including a tremendous amount of information, each guide's rating system is different and can confuse readers' considering a vacation cruise. A linear regression of the star ratings for each of four popular guides shows that as much as 70% of the ratings are explained by only two variables: year of launch and space/passenger ratio. It was found that consumers who wish to compare ships efficiently could do so by simply dividing the space/passenger ratio by 10.     

Knowledge Supply Chain Matrix Approach for Balanced Knowledge Management

SUMMARY

Knowledge management projects suffer from concepts which overemphasize a single factor, e.g., information technology. This single factor frequently dominates other factors as processes, structures or strategies. The research question of the paper is how to develop and apply a knowledge management tool that balances different factors in knowledge management projects. The introduced tool, called knowledge supply chain matrix, is derived from a generic business model and four knowledge management processes. The paper describes how the tool is applied within a knowledge management project in the airline industry.     

The joint effect of consumer and service providers’ culture on online service evaluations: A response surface analysis

National culture exerts substantial influence on consumers' expectations, satisfaction, and evaluations. Despite that, within a service-based context, two cultures are met, that of the customer and that of the service provider, the existing literature systematically explores the effect of customer culture in isolation neglecting the impact of the provider's culture or their joint effect. We fill this gap by considering the concomitant effect of customer and provider cultural factors on passenger evaluations of airline carriers using a large dataset of reviews that covers the majority of countries. Employing a response surface methodology, our study provides significant advantages over methods based on cultural distance scores in revealing more complex non-linear relationships. This multi-dimensional approach provides new insights for assessing the impact of national culture on customers' service perceptions and evaluations, thus bringing significant implications for researchers and service providers.     

First-Class in-Flight Services and Advertising Effectiveness: Antecedents of Customer-Centric Innovativeness and Brand Loyalty in the United States (US) Airline Industry

In this study we consider the first-class passenger market to identify in-flight service-related triggers of customer-centric innovativeness, test the effect of customer-centric innovativeness on brand loyalty, and examine the moderating role of advertising effectiveness. A series of theory-based hypotheses was examined through structural equation modeling using empirical data collected from a sample of 205 first-class airline passengers in the United States (US). The results indicate that various experiential dimensions of in-flight service designs (including food, entertainment, physical environment, and flight attendant performance/physical appearance) in the first-class passenger market had significant effects on perceived firm innovativeness. In addition, advertising effectiveness moderated the effects of in-flight food services and flight attendant physical appearance on perceived firm innovativeness. These results clearly suggest that customer-centric innovativeness is a strong driver of brand loyalty in the first-class passenger market. The study provides a theoretical basis for future research and offers some effective management methods for enhancing first-class passengers’ loyalty in the airline industry.     

Airline schedule and network competitiveness: A consumer-centric approach for business travel

The aim of this paper is to undertake a comparative analysis of the competitiveness of airline schedules and networks from a business traveller perspective with a particular focus on Europe and travel to and from this continent. A unique and innovative customer-centric model is developed using a passenger survey and airline schedule data to overcome the shortcomings of traditional models that lack the passenger viewpoint. The results show that Austrian Airlines/Vienna airport and Swiss/Zurich airport have the highest quality connections, while the top five competing European hubs are served by the Lufthansa group. The findings provide a significant opportunity to airlines to grow their knowledge and understanding of their competitive position and their ability to offer scheduling convenience to passengers.     

Evaluating domestic bias on airline passengers’ ratings: The moderating effect of cultural value orientation

We explore differences in airline passengers’ online ratings toward domestic and foreign carriers. Using a dataset of more than 380,000 airline passenger reviews obtained from TripAdvisor, we show that on average passengers express higher satisfaction (as proxied by their overall rating) for airline service encounters with domestic carriers, exhibiting a form of domestic bias. Using Hofstede’s framework, we examine how cultural dimensions influence the strength of this bias and find support for the moderating impact (positive and negative) of passengers’ cultural dimensions on their provided ratings toward domestic airlines. The study has theoretical and practical implications for international marketing researchers and airline operational planners.     

Moderating effect of privacy concerns and subjective norms between satisfaction and repurchase of airline e-ticket through airline-ticket vendors

ABSTRACT

One example of the rapid growth in E-commerce in the Internet era is the use of the Internet to make airline e-ticket (AET) purchases. Companies selling airline tickets must promote tickets in this fiercely competitive e-commerce environment. However, customers are concerned about the privacy of online transactions, and the effects of these privacy concerns on customer repurchase intention of AET are still unclear. Moreover, subjective norms are a critical issue in the Internet era because customer purchase intention is affected by the comments of others. The objective of this study was to investigate the moderating effects of privacy and subjective norms on the relationship between customer satisfaction and AET repurchase intention. A survey of 504 experienced customers showed that privacy has significant negative moderating effects on the relationship between customer satisfaction and AET repurchase intention while subjective norms have significant positive moderating effects. The implications of the survey results are discussed, and managerial suggestions for increasing AET repurchase intention are also given     

A Conservation of Resources schema for exploring the influential forces for air-travel stress

Effective air-travel stress management is increasingly crucial in determining tourist satisfaction and travel choices, particularly in a time of intensive fear about virus, terrorism, and plane crashes. However, research about air-travel stress, particularly what and how various influential forces shape passenger stress levels, is still in its infancy. The current research proposes the adoption of Conservation of Resources (COR) theory as a holistic schema to identify through resource dynamics the potential influential forces for air-travel stress across leisure travel stages. The findings, based on surveying passengers at the gate of multi-country international and domestic airports, demonstrates the capability of COR schema to predict and explain the influences on air-travel stress from an array of personal and situational/trip-specific factors. The theoretical advances from COR-based cross-stage stress analyses, and the guidance for customized airline/airport stress-soothing service strategies are discussed.     

Travel Agents and Their Survival Thomas

Abstract

The travel agency industry depends upon commissions for a majority of its revenue. When these commissions decrease or stop the industry must change the means in which revenue is made. The Internet has caused a significant reduction in airline ticket sales and therefore has caused travel agencies to change. In addition travel agencies have reduced commissions paid to airlines thus causing more changes. There were four categories of travel agencies discussed in the article along with their adaptation styles. These types include (1) the independent operator of a small travel agency with very limited resources (2) the normal agency with 2 or 3 agents which does a substantial business (3) the larger agency that is high-tech and high touch and depends on automation and the Web to some extent (innovators) (4) agencies that are Web based with very little automation otherwise and who were technologically adaptable and saw opportunity in the Web. The study examines how agencies have adapted and prospered through this transitional period.