Critical factors for implementing a programme for international MICE professionals: a hybrid MCDM model combining DEMATEL and ANP

The study was performed to identify critical factors driving the implementation of an English-medium instruction programme for the training of international professionals to serve in the MICE industry. A hybrid multiple criteria decision-making model, termed the decision-making trial and evaluation laboratory (DEMATEL)-based analytic network process (ANP), was used to prioritize the complexity of influential factors interwoven in the process of implementing the programme. The DEMATEL-based ANP employed by the study can be extended to evaluate priority factors critical to the implementation of similar programmes in other tertiary settings, as it will formulate a set of procedural guideline for implementers to systematically improve and sustain the implementation effort. Results of the study will lead to a number of practical, managerial, methodological and research implications.     

A non-additive multiple criteria analysis method for evaluation of airline service quality

Subjective preferences with interactive property are often involved in the evaluation of airline service quality. It may not be possible, however, to correctly evaluate service quality using conventional additive measures. The fuzzy measure, which is a non-additive measure, is more suitable for this situation. Given the presence of arduousness in current fuzzy measure identification and in the calculation of the comprehensive performance values of alternatives in terms of the Choquet integral, this paper proposes the λ_k fuzzy measure and introduces Marichal entropy of the λ_k fuzzy measure to reach a solution. This paper also presents the aggregator Choquet integral with respect to the λ_k fuzzy measure. To verify the method's effectiveness, an application study of the comprehensive performance of 15 US airlines was conducted, using data collected over a 10-year period. Our results show that the proposed method is a suitable multi-criteria analysis method, which can be used to evaluate the performance of airline service quality when man–made interaction phenomena are not existent.     

Evaluation of passenger satisfaction with service quality: A consecutive method applied to the airline industry

Passengers' dissatisfaction with service quality is one of the crucial factors affecting the market share loss of airlines. This study aims to find out how airlines become capable of satisfying their passengers by considering the diversity of pre-purchase expectations. Therefore, the study proposes a novel model for clustering air passengers to identify passengers with similar expectations. Thus, the passengers' expectations of the service quality attributes in each cluster were measured and converted into quantitative degrees of customer satisfaction by applying the Kano model. Finally, Importance-Satisfaction Analysis (ISA) was employed to finding that which service quality indicators fall into the “Keep up the proper work”,” Concentrate here”,” Possible overkill”, and “Low priority” category for eliciting applicable marketing strategies.     

A new hybrid simulation-based assignment approach for evaluating airlines with multiple service quality criteria

Evaluation of airlines based on service quality criteria can help to improve the processes of airlines, and also can give guidance to travel agencies to provide better choices for passengers and tourists. In this study, a hybrid simulation-based assignment approach is proposed to deal with multi-criteria decision-making problems with a group of decision-makers. A probability distribution is used to model decision-makers’ opinions and constructing a stochastic decision matrix. Then some efficient multi-criteria decision-making methods are utilized for evaluating alternatives in a simulation process. The proposed approach is applied to a problem of evaluation of five airlines with respect to opinions of 58 experts on 28 criteria. The results show the efficiency of the proposed to handle decision-making problems with a large number of experts. Moreover, the evaluation results are more reliable than the other decision-making approaches because of simulating decision-makers’ opinions, using multiple methods and evaluating based on aggregative results.     

The effect of airline service quality on passengers’ behavioural intentions: a Korean case study

This paper seeks to improving our understanding of air passengers’ decision-making processes by testing a conceptual model that considers service expectation, service perception, service value, passenger satisfaction, airline image, and behavioural intentions simultaneously. For this testing, path analysis via maximum likelihood estimator is applied to data collected from Korean international air passengers. Service value, passenger satisfaction, and airline image are each found to have a direct effect on air passengers’ decision-making processes.     

Assessing customer citizenship behaviors in the airline industry: Investigation of service quality and value

Along with the emergence of a new marketing paradigm (service-dominant logic), the post-consumption behavior has been highlighted. Accordingly, the purposes of this study are to identify four types of the consumer citizenship behavior, including advocacy, feedback, helping and tolerance, and to examine two direct and indirect determinants of it. Then, a moderating effect of the air passenger-related factor (domestic vs. international trips) has been assessed on the proposed relationships. The results of this paper suggest decomposing two dimensions of service quality (intangible and tangible resources of airline services) which indirectly affect the consumer citizenship behavior via perceived value. Those passengers who took domestic trips are more likely to have the stronger relationships than travelers who carried out international trips.     

A novel interval-valued fuzzy MCDM method for improving airlines’ service quality in Chinese cross-strait airlines

This paper presents an effective approach based on combining VIKOR, GRA, and interval-valued fuzzy sets to evaluate service quality of Chinese cross-strait passenger airlines via customer surveys. The proposed approach can enable decision-makers to understand the gaps between alternatives and aspired levels. An empirical study is used to establish a complete service quality evaluation framework for reducing the gaps to achieve the aspired level. Based on the gaps in priorities, it can help an airline to identify its own strengths and weaknesses in specific areas of passenger service to further improve service quality.     

A service position model of package tour services based on the hybrid MCDM approach

ABSTRACT

Traditionally, package tour (PT) agencies assumed that tourists only pay attention to the PT’s price, so PT service providers often offer limited package tours based on options and prices. Nowadays, PT service providers face the difficult challenge of how to offer diverse PTs to satisfy tourists’ needs based on a reasonable price. This study proposes an evaluation model of package tours based on diverse resources and transportation means. This study proposes a two-dimensional evaluation framework to analyse tourists’ needs regarding package tour services and the proposed model could be applied to plan mass customized package tours based on the portfolio of value satisfaction index (VSI) and the price satisfaction index (PSI). The study also proposes that mass customized package tours can improve the traditional tour planning method through a portfolio of diverse tourism resources. Moreover, the study integrates the different choices of traffic and transportation tools, as well as tourism resources and providers in six portfolios of package tours in the Nantou county of Taiwan. These six package tours can be planned through three traffic and transportation tools (tourist coach, railroad, and minibus) and four tourism resources (natural experiences, cultural exploration, shopping and cuisine, and event participation).     

The impacts of COVID-19 on the global airline industry: An event study approach

This study examines the short-term impact of the 2019 novel coronavirus (COVID-19) outbreak on 52 listed airline companies around the world by using event study methodology. The results demonstrate that airline stock returns decline more significantly than the market returns after three major COVID-19 announcements were made. Overall, investors react differently during the three selected events. The strongest overreaction is noted in the post-event period of the World Health Organization's and President Trump's official announcements. Moreover, the findings confirm that traders in Western countries are more responsive to recent information than the rest of the world. The findings call for immediate policy designs in order to alleviate the impact of the pandemic in the airline industry around the globe.     

A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry

Owing to the cut throat competition and economic uncertainty in the market, airlines are focusing on strategic alliances for satisfying customer needs, especially in the current time which is dominated by global integration, demanding customer and fast changing technologies. This strategy is widely adopted by airlines. However, the selection of strategic alliance partner is a very decisive decision, and this selection process engrosses a number of complex processes which is result of compound reflection of associated various factors. In addition, the decision makers may be inconsistent in their views and preferences, arising due to imperfect information or intrinsic conflict between various departments. This paper presents a model based approach of an analytic hierarchy process (AHP) for evaluation of criteria and fuzzy technique for order performance by similarity to ideal solution (FTOPSIS) for the selection of strategic alliance partner. A case of Indian airline industry demonstrates the application of the proposed approach. Eventually, robustness of the model is demonstrated by sensitivity analysis.     

The impact of an aircraft's service environment on perceptions of in-flight food quality

Airlines are currently striving to improve the quality and quantity of in-flight food, because research has shown that catering is a key attribute for a customer's satisfaction with airline service quality. But the role of an airline's service environment in forming customer perceptions about food quality has not yet been properly investigated. Using electronic word-of-mouth data from N = 3996 airline passengers, this study deploys a linear regression model at multiple levels to relate perceived in-flight food quality with both the overall service environment and its formative components. The results clearly unveil the importance of an aircraft's service environment on perceived in-flight catering quality; perceptions of food quality are primarily influenced by the quality of cabin staff service, followed by entertainment and seat quality. Instead of continuing with the current practice of signing up top chefs to improve menus, airlines may instead consider putting their management focus on service improvements.     

Fuzzy ServPerf model combined with ELECTRE III to comparatively evaluate service quality of international airports in Sicily

In this paper a new approach was proposed so as to comparatively evaluate the quality of service alternatives. In particular, a fuzzy extension of the ServPerf service conceptual model was considered to estimate quality scores of fundamental service criteria, whereas the non-compensative multi-criteria decision-making ELECTRE III method was employed to point out the quality ranking of service alternatives on the basis of which the comparative service quality analysis was performed. In order to show the effectiveness of the proposed approach, an empirical study concerning service quality evaluation of the three international airports in Sicily (Italy) was conducted with detailed proposals for passenger service improvement. The results showed that only few key service aspects played a focal role in quality airport service. Moreover, the effects on the evaluation of service quality, arising from customers' uncertainties, were computed, thus demonstrating the effectiveness of the proposed approach.     

Motivations and barriers for corporate social responsibility reporting: Evidence from the airline industry

Corporate social responsibility (CSR) has become a popular topic, as related research saliently suggests that CSR reporting has positive impacts, including improving corporate reputation, achieving employee trust, and enhancing customers' satisfaction. Consequently, in the past few years, companies have increasingly begun to report their CSR initiative outcomes, while the majority struggles to adopt similar initiatives. The research presented herein investigates motivations and barriers for reporting CSR outcomes by providing evidence from airline companies to investigate this disparity. Data collected through survey and confirmatory interviews indicates that respondents believe that government is the most important reader (or customer) of CSR reports. Similar to other industries, CSR reporting's major motivations are related to reputation and brand value, employees' CSR awareness, communication with stakeholders, management systems, management culture, market share, and transparency with the government. An enhanced understanding of related barriers and motivators should assist policymakers and company executives in their strategic decision-making regarding CSR reporting, thereby contributing to advancement toward sustainability.     

A study on the importance of airline selection attributes by airline type: An emphasis on the difference of opinion in between Korean and overseas aviation experts

The main purpose of this research is to understand the relative importance of airline selection attributes that are considered important by passengers when selecting an airline. Specifically, we analyzed how the attribute selections differed based on airline types, a Full Service Carrier (FSC) and a Low Cost Carrier (LCC). For this purpose, a Delphi analysis was performed with 34 Korean aviation experts and 32 overseas aviation experts as the target sample groups. Statistical tests including Mann-Whitney U Test and Wilcoxon Signed Rank Test, were used to analyze the selection attributes. In the case of FSCs, safety, flight schedule, cabin interior, and fast check-in processes were considered to be important selection attributes whereas for LCCs, air fare level, flight safety, the convenience of air ticket purchasing procedures, and additional charges were considered to be the important selection attributes. Additionally, there was a difference in the importance of airline selection attributes depending on whether it was a Korean or overseas aviation market. The result of these findings may be utilized as basic data in establishing a marketing strategy for an airline company to attract more passengers.     

A study on the impact of airline service delays on emotional reactions and customer behavior

This study is intended to identify the influence of service delays on emotional responses and customer behavior. For this research, a survey was conducted on airline passengers that experienced service delays. A total of 395 respondents were analyzed using structural equation modeling. According to the analysis results, service delays positively influenced negative emotions and negatively influenced repurchase intention. In addition, service delays positively influenced negative word-of-mouth. This study provides a basic knowledge on how airlines can develop their service strategies to make good use of the motivating effect of service delays on emotional responses and behavioral intentions.     

How airline service quality determines the quantity of repurchase intention - Mediate and moderate effects of brand quality and perceived value

Drawing on an integrated framework of service quality theory, this study develops and demonstrates a mediation-moderation model of airline service quality that influences the repurchase intentions of passengers. This model associates service quality with individual behavioral and perception—brand awareness and perceived values and examines the buffering role of brand attractiveness and experience in the decision-making processes. In a sample of 451 passengers, somewhat as expected, airline service quality enhances the positive effect of repurchase intention on airline company service because it fosters a positive link between brand awareness and perceived value. Unsurprisingly, brand attractiveness and memorable brand experiences are found to strengthen the positive effect of brand awareness and perceived value. Several alternative models were used to check the robustness of our findings. Patterns of moderated mediation modeling for theoretical and empirical implications are discussed.     

An analysis of traveler need for and willingness to purchase airline dynamic packaging: A Korean case study

This study analyzes (1) the need among air travelers for commission-based ancillary products and services from airline websites via dynamic packaging and (2) the willingness to purchase them. For this purpose, a survey is conducted with 2030 airline customers in Korea. This study aims to provide insights into Korean traveler preference to enable airlines serving Korean customers to formulate and implement successful business strategies that incorporate dynamic packaging into airline websites to expand ancillary revenues. The results confirm that Korean travelers demonstrate the need for and willingness to purchase commission-based ancillaries when purchasing tickets from airlines. On average, commission-based ancillary products are positively received by respondents. Airport transfers (e.g. rail and shuttle services), foreign currency exchange offers, and travel insurance are the most popular. Female travelers, travelers in their 20s, and frequent travelers (10 + times a year) report a significantly higher need for and willingness to purchase a set of commission-based ancillaries with flights from airline websites. Willingness to purchase third-party products from airlines is higher than in previous studies, and the preference rankings also differ. This study supports the viability of commission-based ancillary offerings from airline websites targeting Korean travelers. It shows the potential for airlines to successfully upsell and cross-sell via dynamic packaging strategies, one of the first steps toward becoming competitive travel retailers.     

Investigating the effects of economies of scope on firms’ pricing behavior: Empirical evidence from the US domestic airline industry

This study investigates to what extent cross-product (belly cargo) output affects (passenger ticket) prices in the US domestic airline industry. The empirical analysis indicates that greater cargo volumes generally result in lower air fares, presumably as a result of the airlines’ realization of economies of scope. This magnitude of this price effect, however, depends on certain firm and route market characteristics. The findings of this study add to extant research on economies of scope, multi-product yield management and airline pricing and provide important insights for policy makers and airline managers alike.     

A new hub and spoke system proposal: A case study for Turkey's aviation industry

In this paper, we are proposing a multi-objective mathematical model for the selection of a newly constructed hub and spoke system. The objectives of this model are maximizing aircraft utilization and revenue whilst reducing the commercially infeasible network detour factor. The sensitivity analysis of the model is tackled using weights related to the objectives as well as the network detour factor. The number of available aircraft and the range that an aircraft can reach are also considered in this model. Since Istanbul has already got a hub and spoke system with busy airports on both sides of the city, the model is applied to three other major cities of Turkey, Ankara, Antalya, and Izmir. The test data consists of over 90 cities in Europe and in the Middle East. The data includes unit passenger revenues and operating costs for the segments, distances between cities and hubs, expected load factors and flying times of segments. The scenarios are tested under specific expectations of airline network experts and the results are visualized by using Pareto front graphs. Compared to other candidates, Antalya stands out as a good choice for a new hub and spoke system in Turkey. The results of this model could be helpful for airlines and other airports in Turkey in order to identify their potential and competitive position in relation to their counterparts.     

A hybrid approach based on fuzzy AHP and 2-tuple fuzzy linguistic method for evaluation in-flight service quality

The in-flight service is one of the most important parts in the whole air travel service process. In order to better understand the passengers' preference and obtain their perception for service quality, the paper proposed a hybrid approach based on fuzzy AHP and 2-tuple fuzzy linguistic method to evaluate in-flight service quality. This study is comprised of three stages. In the first stage, the modified version of SERVQUAL instrument was used and a hierarchy of the evaluation index system for in-flight service quality was constructed. In the second stage we use fuzzy AHP to analyze the structure of the in-flight service evaluation problem. Using linguistic variables, pairwise comparisons for evaluation criteria and sub-criteria are made to determine the weights of criteria and sub-criteria. In the third stage, the ratings of sub-criteria are assessed in linguistic values to express the qualitative evaluation of passengers' subjective opinions, and then the linguistic values are transformed into 2-tuples and the 2-tuple linguistic arithmetic mean operator is utilized to obtain the average ratings of 100 respondents. Using the 2-tuple linguistic weighted average operator to compute the aggregated ratings of criteria and the overall in-flight service quality of alternatives. Finally, we demonstrated the validity and feasibility of the proposed approach by conducting an application study of the comprehensive performance of three airlines' in-flight service quality in China.