IN SEARCH OF PASSENGERS’ LOYALTY FACTORS FOR THE SAKE OF LOW-COSTAIRLINES: A CASE STUDY OF THAIS

Abstract

Customer loyalty is preferred by all kind of firms. Since, it leads to repurchase intention which resulting to revenue generation, and sustainable competitive advantages. This study aims to evaluate the service quality factors affecting the passengers’ loyalty on low-cost carrier in Thailand. The samples were passengers who flying with Thai Lion Air 400 persons, and 400 persons who flying with Thai Air Asia. The questionnaires were administered to collect data. The structural equation modelling was applied for confirmatory factor analysis. The result found that the service quality attributes on assurance, responsiveness, reliability, and tangibles are affecting the customer loyalty and repurchase intension of Thais.  Hence, low-cost airlines should highlight more on the service quality rather than compete strongly on price mechanism.