INTERNATIONAL BUSINESS REVIEW JOURNAL

INTERNATIONAL BUSINESS REVIEW JOURNAL.

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Key drivers of airline loyalty
Available online October 2011.

Sara Dolnicar, Klaus Grabler, Bettina Grün, Johannes Kepler Linz, Anna Kulnig

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The University of Queensland University

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1. Introduction

2. Strategic Recommendations

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Abstract

This study investigates drivers of airline loyalty. It contributes to the body of knowledge in the area by investigating loyalty for a number of a priori market segments identified by airline management and by using a method which accounts for the multi-step nature of the airline choice process. The study is based on responses from 687 passengers. Results indicate that, at aggregate level, frequent flyer membership, price, the status of being a national carrier and the reputation of the airline as perceived by friends are the variables which best discriminate between travelers loyal to the airline and those who are not. Differences in drivers of airline loyalty for a number of segments were identified. For example, loyalty programs play a key role for business travelers whereas airline loyalty of leisure travelers is difficult to trace back to single factors. For none of the calculated models satisfaction emerged as a key driver of airline loyalty.

Keywords: loyalty, key, airline, drivers

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