Brand loyalty in the airline industry

Abstract

The research completed in this dissertation aims to define brand loyalty in the airline industry. It addresses what the airline brand is, how can an airline retain its customers and how will it help airlines overcome the current state of the economy. A brand is something that a customer experiences, feels and remembers. Brands reflect the personalities of customers and represent their values. In the highly competitive, dynamic and constantly changing airline industry, building a strong brand is critical to the operations of an airline. Countries’ economies are unstable, unemployment rates are growing and airlines are ceasing operations due to unpaid debts and constant yearly net losses. Airlines are continually trying to reduce costs as much as possible to stay both competitive and afford to offer cheaper air fare for their passengers. However, passengers are the engine of airline operations. Their value of air travel, the service, the feeling, the experience and satisfaction, are qualities that have a stronger influence on the buying behaviour. Passengers are different and prioritize components of the airline product differently. Understanding who an airline’s customers are and what exactly they expect out of their flight experience will be the determining factors in keeping airlines flying in the future. The first chapter of the dissertation introduces the topic under investigation. It states the aims and objectives as well as the research questions and purpose of this paper. The second chapter is dedicated to all the available literature regarding the topic. The literature review chapter defines brand and customer loyalty. The airline industry is strongly influenced by the external factors surrounding it. This chapter further explores the entire airline industry and the external influence factors that affect every decision being made regarding the product. It analyzes the different customer tastes and desires, as well as the activities airlines have undertaken to better position their product and retain loyalty in their passengers. The third chapter describes the methods used to gather the primary research. This chapter describes in detail the process, the population and sampling methods, and the techniques used in order to gather the necessary information. The next chapter is dedicated to the analysis and comparison of the gathered primary and secondary research. This is the investigation chapter, which discovers the answers for the research questions. The final chapter concludes all the gathered information and provides recommendations for the future of airline management regarding brand loyalty.