International Journal of Social Science (IJSS) Vol.
4 Issue.
5 February 2025, pp: 555-564 ISSN: 2798-3463 (Printe.
| 2798-4079 (Onlin.
DOI: https://doi.
org/10.
53625/ijss.
THE INFLUENCE OF THE ON-TIME PERFORMANCE,
FLIGHT SCHEDULES.
TICKET PRICES.
AND PASSENGER
SATISFACTION IN DETERMINING CUSTOMER LOYALTY IN
INDONESIAN GARUDA AIRLINES
Siti Ghumaisa Effendie1.
Suharto Abdul Majid2.
Indra Setiawan3.
Dian Artanti Arubusman4.
Yana Tatiana5
1,2,3,4,5
Institut Transportasi dan Logistik Trisakti.
Cipinang Besar Selatan.
Jakarta.
Indonesia Email: 1sitig17@gmail.
com, 2samtrisakti1531@gmail.
com, 3indraset2008@gmail.
yana23011972@gmail.
com, 5dianartanti0105@gmail.
Article Info Article history:
Received Dec 18, 2024 Revised Dec 29, 2024 Accepted Jan 21, 2025 Keywords:
On-time Performance.
Flight Schedule.
Ticket Price.
Customer Satisfaction.
Customer Loyalty.
Garuda Indonesia Airline ABSTRACT Some economic and agro-industrial managerial problems are that the company's human resources are not maximized in optimizing productivity, cost efficiency, and product quality control.
This also includes improving understanding of markets, marketing strategies, and the development of appropriate technologies to improve agro-industrial performance.
The purpose of this study is to examine the impact of on-time performance, flight schedules, and ticket prices on customer satisfaction and customer loyalty of Garuda Indonesia Airlines at Soekarno-Hatta International Airport Jakarta.
Indonesia.
The data collection method uses a questionnaire distributed to 100 The data analysis method uses SEM PLS.
The results show that a positive and significant direct impact on customer satisfaction is obtained from on-time performance and ticket prices, while flight schedules have a positive and insignificant direct impact.
A positive and significant direct impact on passenger loyalty, it is obtained from customer satisfaction and ticket prices, while on-time performance and flight schedules have a positive and insignificant direct impact, which implies that customer satisfaction is a vital factor for Garuda Indonesia Airlines to survive in such a highly competitive aviation market This is an open access article under the CC BY-SA license.
Corresponding Author:
Siti Ghumaisa Institut Transportasi dan Logistik Trisakti.
Cipinang Besar Selatan.
Jakarta.
Indonesia Email: sitig17@gmail.
INTRODUCTION
In a competitive industry such as the airline industry, it is important for airline management not only to properly understand what their customers want and expect, but also to manage their own resources in meeting customer expectations appropriately.
Apart from the actual service quality provided by airline companies, customer expectations regarding the quality of airline services are also an important factor that can influence customer satisfaction (Sorescu.
Warren, and Ertekin, 2017.
Majid, 2.
Therefore, airlines will be more likely to survive the competition.
The airline industry is highly competitive and operates on small profit margins.
Airline companies strive to develop profitable flight schedules that maximize their revenues and exploit available resources .
aircraft and Considering this complexity, large airlines typically adopt a gradual schedule update approach, in which previous flight schedules are modified to accommodate recent changes in demand, competition with other airlines, and changes in available resources (Burolini et al.
, 2.
In the aviation industry, determining the price for a product .
is one of the main problems that must be solved every day (Den Boer, 2.
On the other hand, the price decided for a product directly influences future demand, in one flight there are several different products with different demand behavior, and a price decision must a.
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4 Issue.
5 February 2025, pp: 527-564 ISSN: 2798-3463 (Printe.
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be made for each of these products (Otero and Akhavan Tabatabaei, 2.
Additionally, the products offered by airlines are non-refillable and perishable, indicating that there is a limited number of products and limited time periods that limit such decisions.
If at the start of the period a low price is offered for a particular product then it is likely that many potential customers purchased tickets at a lower price than they were willing to pay.
On the other hand, if a higher price is set, few potential customers will buy tickets and even lowering the price at the end of the sales period may still leave some tickets unsold (Otero and Akhavan-Tabatabaei, 2.
Therefore, the challenge in the airline industry is to set prices in each time period that minimize loss of revenue and take advantage of customers' willingness to pay.
Because decisions taken at a certain time affect what will happen in the next period and must also be updated dynamically to maximize revenue, this problem is known as dynamic pricing (Talluri and Van Ryzin, 2.
Building a loyal customer base is an obvious marketing goal for an airline.
Nyadzayo and Khajehzadeh .
stated that customer loyalty reduces service costs, reduces customer price sensitivity, increases the time customers spend with the company, and encourages customers to provide positive recommendations about the brand.
Research by Jiang and Zhang, .
found that satisfactory service was not found to result in higher customer loyalty in among business travelers.
While ticket prices have a positive and significant impact on overall passenger satisfaction and in turn strengthen customer loyalty among leisure tourists, they have no impact on business passenger satisfaction and loyalty.
Measuring customer satisfaction in the aviation industry is becoming increasingly common and relevant.
are at least five reasons for this (Grigoroudis and Siskos, 2.
First, customer satisfaction measurement programs can improve communication with customers.
Second, companies can check whether their services meet customer Additionally, companies can analyze the impact of certain efforts and actions on customers.
Third, the main satisfaction dimensions that must be improved can be identified.
Fourth, companies can identify their strengths and weaknesses vis-y-vis the competition, based on customer perceptions and assessments.
Lastly, company personnel can be motivated to increase their productivity because all improvement efforts promoted on the service are evaluated by the customers themselves.
Ramdas and Williams .
tested tradeoff between aircraft utilization and OTP using queuing theory and found that flight delays increase as aircraft utilization increases.
Chow .
found that improving on-time performance actually reduces customer complaints.
Park.
Robertson, and Wu .
using data from the Korean airline industry, found a similar relationship between the punctuality of airline flights and customer satisfaction.
Although airlines generally compete based on price, on-time flight time is a critical component of airline service quality, driving customer satisfaction and loyalty (Gayle and Yimga, 2018.
Chen and Hu, 2.
Service quality, namely punctuality of flights, is a consumer's impression of the relative superiority of an organization and its impact on customer loyalty (Lee.
Graefe, and Burns, 2.
Therefore, the aviation industry must always strive to provide high standard service quality, namely punctuality of flights to influence customer loyalty.
The Airline Schedule Planning Problem (ASPP) is part of a larger airline planning problem (APP) that includes the development of flight schedules, fleet, crew, and other operational resources.
APP is a complex process that typically consists of several interdependent tasks, including demand forecasting, capacity planning, flight frequency, departure time optimization, and resource assignment and scheduling (Abdelghany et al.
, 2.
In the aviation industry sector, the importance of price research is very important.
Transportation is a key component of the tourism product.
The international aviation market is experiencing many changes and is becoming increasingly competitive.
In particular, the air transportation network has developed continuously leading to major changes in the competitive patterns, positions and advantages of various airline companies.
Clems et al.
found a significant positive relationship between perceived price in international air travel.
Younger passengers or passengers with lower incomes are more price sensitive, and typically purchase tickets based on the lowest price available, and may also have different levels of expectations.
Tanomsin and Chen .
stated that there is a direct relationship between price and customer satisfaction and loyalty, but the effect is limited to Thai low cost carrier (LCA) companies.
This is inconsistent with other empirical research (Akamavi et al.
, 2.
According to Akamavi et al.
the price paid by customers of course influences the level of satisfaction they experience.
This means that when prices increase, customers feel dissatisfied.
Conversely, when prices decrease, customers feel more satisfied.
Thus, fluctuations in prices paid by customers significantly influence customer satisfaction.
However, this was not the case in our investigation, we suspect that the competitive LCA market in Thailand had an impact on price variables, which then led to very low air ticket prices and devalued the price factor.
Therefore, price is not as influential a factor .
round 30%) as other studies suggest a.
Journal homepage: https://bajangjournal.
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php/IJSS International Journal of Social Science (IJSS) Vol.
4 Issue.
5 February 2025, pp: 555-564 ISSN: 2798-3463 (Printe.
| 2798-4079 (Onlin.
DOI: https://doi.
org/10.
53625/ijss.
Figure 1 Flow of Thought Based on the thoughts above, a hypothesis can be formulated, which is a temporary answer to the research As a temporary answer to the formulation of the problem and hypothesis that will be tested in the research, the researcher formulates the hypothesis as follows:
H1.
There is a direct influence on flight timeliness on airline customer satisfaction.
H2.
There is a direct influence of flight schedules on airline customer satisfaction.
H3.
There is a direct influence of ticket prices on airline customer satisfaction.
H4.
There is a direct influence of customer satisfaction on airline customer loyalty.
H5.
There is a direct influence on flight punctuality on airline customer loyalty.
H6.
There is a direct influence of flight schedules on airline customer loyalty.
H7.
There is a direct influence of ticket prices on airline customer loyalty.
RESEARCH METHODS
The stages in this research include five latent variables, each of which is measured with several items.
The items for this construct were adapted from previous literature with the aim of increasing content validity (Taherdoost.
The items were then reworded to reflect the airline context and research environment.
This research instrument was developed from the research of Gayle and Yimga .
and Prince and Simon .
for the flight punctuality variable.
Camilleri and Camilleri .
for the flight schedule variable.
Truong et al.
Jiang .
, and Medina-Munoz et al.
for the ticket price variable, and Farooq et al.
for the customer satisfaction variable, as well as Omoregie et al.
and Chai et al.
for the customer loyalty variable.
The research location was carried out at Soekarno-Hatta International Airport.
Jakarta.
Indonesia, with passengers from the Garuda Indonesia airline as the research targets.
The population in this study was all passengers of the Garuda airline at Soekarno-Hatta airport on domestic routes during January 2024, totaling 211,770.
Data was collected through field surveys.
Garuda Indonesia airline passengers were selected based on incidental sampling, namely determining the sample based on a chance meeting with the researcher and deemed suitable as a data source.
Passengers who were waiting were asked.
Those who answer yes and are willing participating in this research were given a questionnaire to fill out via WhatsApp with a Google Form attachment.
total of 100 questionnaires were distributed.
RESULTS AND DISCUSSION
Research Results The majority of respondents consisted of men .
%) while 48% were women.
Percentage of age groups:
between 21-30 years .
%), between 31-40 years .
%), less than 21 years .
%), and between 41-50 years .
%).
The majority of respondents had a bachelor's degree .
%), followed by a master's degree .
%), and a diploma .
%).
In terms of purpose of visit, the majority of respondents .
%) traveled for business purposes, followed by leisure .
%) and education .
%).
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4 Issue.
5 February 2025, pp: 527-564 ISSN: 2798-3463 (Printe.
| 2798-4079 (Onlin.
Data collected from the survey was analyzed using partial least squares structural equation modeling (PLSSEM).
SEM allows researchers to test causal relationships between latent variables in a proposed research model.
There are two approaches to SEM (Hair et al.
, 2.
: covariance-based SEM .
ovariance-based SEM) which requires the data to demonstrate multivariate normality and the variance-based approach PLS-SEM .
ariance-based approach PLS-SEM) which does not require multivariate normality.
A preliminary study of the collected data showed that the data were not normal, thus confirming the choice of this study to use PLS-SEM.
Using a two-step approach to evaluate the structural equation model recommended by Becker et al.
we first tested the reliability and validity of the measurement model and then tested the significance of the structural paths between latent constructs in the hypothesized model.
SmartPLS 3 software was used to evaluate the reliability and validity of the measurement model and to test the structural model.
The measurement model was evaluated based on the reliability, convergent validity, and discriminant validity of the measurement instrument.
Reliability is assessed with using Cronbach's and composite reliability.
In order for a construct to be considered reliable.
Ringle et al.
recommend that the Cronbach's value and composite reliability for the construct should be above 0.
Table 4.
shows that there is one item, namely KWP4 (Flight Time Accuracy .
So that item is removed.
Table 1.
Reliability and Convergent Validity Test Results Ticket price
Timetable Flight
Satisfaction Customers Flight Timeliness Loyalty Customers THAT AVE
HRT1
0,836
0,384
0,469
0,315
0,462
0,868
0,902 0,648
HRT2
0,840
0,399
0,461
0,361
0,475
HRT3
0,830
0,434
0,536
0,368
0,540
HRT4
0,739
0,412
0,517
0,421
0,445
HRT5
0,776
0,466
0,857
0,563
0,783
JPR1
0,322
0,815
0,427
0,578
0,426
0,790
0,875 0,699
JPR2
0,418
0,845
0,417
0,514
0,430
JPR3
0,551
0,849
0,647
0,655
0,538
KPP1
0,702
0,518
0,946
0,660
0,757
0,939
0,957 0,847
KPP2
0,747
0,606
0,926
0,618
0,763
KPP3
0,719
0,558
0,945
0,678
0,848
KPP4
0,602
0,579
0,862
0,626
0,783
KWP1
0,356
0,539
0,561
0,848
0,568
0,814
0,878 0,645
KWP2
0,450
0,564
0,634
0,876
0,548
KWP3
0,435
0,500
0,522
0,721
0,433
KWP5
0,472
0,669
0,532
0,757
0,512
Journal homepage: https://bajangjournal.
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php/IJSS International Journal of Social Science (IJSS) Vol.
4 Issue.
5 February 2025, pp: 555-564 ISSN: 2798-3463 (Printe.
| 2798-4079 (Onlin.
DOI: https://doi.
org/10.
53625/ijss.
BEG1
0,675
0,544
0,841
0,624
0,938
LYP2
0,701
0,465
0,760
0,528
0,917
LYP3
0,618
0,567
0,789
0,644
0,938
0,923
0,951 0,867
Catatan: CA.
CronbachAos .
CR, composite reliability.
AVE.
Average variance extracted Table 2.
Discriminant Validity using the Fornell-Larcker Criteria
Price
Tickets Timetable Flight
Customer Satisfaction Flight
Timeliness Ticket price
0,805
flight schedule 0,531 0,836 Customer Satisfaction 0,754 0,614 0,920 Flight Timeliness 0,530 0,706 0,702 0,803 Customer Loyalty 0,713 0,565 0,857 0,644 Loyalty Customers 0,931 Note: The square root of the average variance extracted (AVE) is shown on the diagonal, while outside the diagonal are the inter-construct correlations Source: Data processed by researchers.
Table 3.
Path Coefficients and Significance Track Path Coefficient t-statistic Value Results H1: flight punctuality Ie customer 0,376 3,619 0,000 Significant H2: flight schedule Ie customer satisfaction 0,076 0,803 0,423 Not Significant H3: ticket price Ie customer satisfaction 0,514 7,343 0,000 Significant H4: customer satisfaction Ie customer 0,679 7,730 0,000 Significant H5: flight punctuality Ie customer loyalty 0,077 1,005 0,315 Not Significant H6: flight schedule Ie customer loyalty 0,012 0,133 0,894 Not Significant H7: ticket price Ie customer loyalty 0,155 2,128 0,034 Significant Source: Data processed by researchers.
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Research Discussion After verifying the measurement model, the authors proceed to assess the structural model and determine whether the structural relationships in the model being tested are meaningful.
A bootstrap resampling procedure .
ith iterations of 500 sub-samples drawn with replacement from the initial sample of .
was used to determine the significance of path coefficients in the structural model.
The explanatory power of the structural model is assessed from its ability to predict endogenous constructs using the coefficient of determination R2.
The results of the structural model assessment are presented in table 3 and Figure 2.
Figure 2.
Structural Model For the direct influence of H1-H3, flight timeliness was found to have a significant influence on customer satisfaction .
= 0.
376, p = 0.
, while flight schedules were found to have an insignificant effect on customer satisfaction .
= 0.
076, p = 0.
, and ticket prices were found to have a significant influence on customer satisfaction .
= 0.
514, p = 0.
, not sequentially.
Further to the direct effects of H4-H7, customer satisfaction, in turn, was also found to be a significant predictor of customer loyalty .
= 0.
679, p = 0.
, the exact flight time was found has an insignificant effect on customer loyalty .
= 0.
077, p = 0.
, and likewise repeat flight schedules were found to have an insignificant effect on customer loyalty .
= 0.
012, p = 0.
, while ticket prices are always found to have a significant influence on customer loyalty .
= 0.
155, p = 0.
Correctly understanding what customers want and expect is the main step to help Garuda Indonesia airline management in reducing customer complaints, achieving customer satisfaction and loyalty.
As a consequence.
Garuda Indonesia airlines have devoted a lot of their resources to improving the quality of their services and meeting what customers want.
Apart from the actual service quality provided by the Garuda Indonesia airline, customer expectations regarding flight schedules and ticket prices also play an important role in the customer's decision to file a complaint against the Garuda Indonesia airline.
This research studies how customer complaints, which are an indicator of customer satisfaction, are related to actual performance and expectations of punctuality, flight schedules, and ticket prices to determine when customers will actually submit their complaints to the Garuda Indonesia airline.
Researchers believe that this research has meaningful implications for academics and practitioners.
The author's research findings bridge the knowledge gap in the field of research on customer satisfaction and loyalty at the Garuda Indonesia airline company because there is no similar research that studies this relationship at the Garuda Indonesia airline company with the punctuality of flights and flight schedules, as well as ticket prices.
using passenger data for January 2024 which is balanced with a large airline company, namely the Garuda Indonesia airline, the empirical results of this research show that improving the performance of flight punctuality, flight schedules and ticket prices actually increases customer satisfaction.
However, the expected increase in flight punctuality performance does not significantly reduce customer These two results are different because they were obtained from the twelve models used in this research.
found in Chow's .
research, it was found that the customer expectation factor in increasing the level of on-time a.
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4 Issue.
5 February 2025, pp: 555-564 ISSN: 2798-3463 (Printe.
| 2798-4079 (Onlin.
DOI: https://doi.
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53625/ijss.
performance is expected to significantly increase passenger complaints.
In other words, the punctuality of flights and flight schedules does not have a significant effect on customer loyalty.
In addition, the empirical results of this study are generally consistent with the results of previous studies.
Although customer satisfaction as a mediation/indirect influence of flight schedules on customer loyalty is not significant, the empirical test of this research accepts customer satisfaction as a mediation/indirect influence on the influence of flight timeliness on customer loyalty.
This is confirmed by research by Yimga and Gorjidooz .
that delays have an impact on consumer loyalty and also proposed a new method to model the relationship between market share and on-time arrival and flight schedules by exploring the relationship between the rate of passengers switching airlines due to previous flight experience.
The results imply that passengers who experience delays are more likely to switch airlines indicating that flight punctuality influences airline market share primarily through passenger experience, not through flight schedules with high flight punctuality ratings.
In addition, based on Table 4.
4 above, ticket prices have a positive and significant influence on passenger satisfaction and in turn strengthen customer loyalty among Garuda Indonesia airline passengers.
This is in line with research by Jiang and Zhang .
which found that airline ticket prices have a significant and positive impact on customer loyalty.
Passengers are loyal to the airlines they use if the ticket prices match customer needs.
Compared with them who travel with airlines other than Garuda Indonesia, passengers who fly with airlines other than Garuda tend not to use this airline again (Jiang and Zhang, 2.
In other words, the Garuda Indonesia airline has a much lower level of customer complaints compared to unregistered/state-owned operators.
This is thought to be because registered operators have greater advantages in terms of better reputation and better access to the aviation industry market in Indonesia.
CONCLUSION
Well-designed quality measures should be precise, cheap to create, easy to understand, and minimize opportunities for operators to game the system.
Advances in communications infrastructure, upgraded terminals, and solutions to improve the productive use of travel time will greatly reduce costs associated with scheduling and long wait times at airports.
Ticket prices have a positive and significant influence on overall passenger satisfaction and in turn strengthen customer loyalty among tourists, while the price factor has no impact on the satisfaction and loyalty of business passengers.
On average, passengers prefer products offered by low-cost airlines such as AirAsia Indonesia and Lion Air, rather than products offered by the airline Garuda Indonesia.
Low-cost airlines are more likely to operate on highly traveled routes.
Apart from that, this airline company is also famous for its flight ticket pricing model a la carte.
The Garuda Indonesia airline company is also included in this category with Citilink which is under the Garuda Indonesia Group banner.
This research recommends and suggests that airline companies consider shifting resources from improving customer satisfaction to areas such as Frequent Flyer Programs (FFP) to increase customer loyalty and test punctuality flights, flight schedules and ticket prices from the Garuda Indonesia airline company and explore the relationship between flight timeliness, flight schedules, ticket prices and customer satisfaction, as well as the conditions under which airline companies can retain existing passengers.
This research has limitations.
First, in the aviation industry, competitors can easily observe service quality due to government reporting of flight punctuality performance data.
This ease of observation facilitates the ability of airlines to covertly collude in their provision of service quality.
Second, airline management is very aware of the relationships among the routes they serve.
They routinely make decisions about prices, schedules, connections, and the like that require them to consider a network of routes, and not just one route at a time.
REFERENCES