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Book part
Publication date: 10 December 2015

Dekar Urumsah

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is…

Abstract

The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.

The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.

In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.

The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

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Article
Publication date: 13 July 2015

Atul Arun Pathak

– This paper aims to explain how airlines in India and customers can both benefit by the unbundling of services.

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Abstract

Purpose

This paper aims to explain how airlines in India and customers can both benefit by the unbundling of services.

Design/methodology/approach

The paper explores how a recent regulatory change allowing unbundled services will affect the airline industry in India. Using illustrations, it highlights the benefits to the airlines and to the customers. It recommends the strategies that airlines can follow.

Findings

Airlines in India can now offer unbundled services. However, regulatory authorities need to allow greater flexibility to airlines. Given more flexibility, airlines can design offerings that will improve their profitability while simultaneously benefiting customers.

Practical implications

The government needs to go beyond the current regulatory changes. Providing increased flexibility will benefit both airlines and customers. Airlines would need to understand customers more intimately, experiment in the market, lobby for flexibility and develop strategic agility to benefit from the changed regulations on unbundled services.

Social implications

It concedes that airlines can now design unbundled services such that only those customers who value a service get charged for the service. Those customers who do not need a service can get away by paying a lower fare. The government has taken the first steps in the right direction. Once it provides greater flexibility, the airlines in India can benefit significantly.

Originality/value

The paper considers the unique context of the airline industry in India where recent regulatory changes are likely to make the industry more dynamic and improve profitability of airlines. It provides insights in to the challenges faced under the current system and recommends strategies for the government and companies to follow.

Details

Strategic Direction, vol. 31 no. 8
Type: Research Article
ISSN: 0258-0543

Keywords

Book part
Publication date: 16 August 2014

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…

Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Book part
Publication date: 14 December 2023

Adetayo Olaniyi Adeniran, Ikpechukwu Njoku and Mobolaji Stephen Stephens

This study examined the factors influencing willingness-to-repurchase for each class of airline service, and integrate the constructs of service quality, satisfaction and…

Abstract

This study examined the factors influencing willingness-to-repurchase for each class of airline service, and integrate the constructs of service quality, satisfaction and willingness-to-repurchase which were rooted on Engel-Kollat-Blackwell (EKB) model. The study focuses on the domestic and international arrival of passengers at Murtala Muhammed International Airport in Lagos and Nnamdi Azikwe International Airport in Abuja. Information was gathered from domestic and foreign passengers who had post-purchase experience and had used the airline's services more than once. The survey data were obtained concurrently from arrival passengers at two major international airports using an electronic questionnaire through random and purposive sampling techniques. The data was analysed using the ordinal logit model and structural equation model. From the 606 respondents, 524 responses were received but 489 responses were valid for data analysis and reporting and were obtained mostly from economy and business class passengers. The study found that the quality of seat pitch, allowance of 30 kg luggage permission, availability of online check-in 24 hours before the departing flight, quality of space for legroom between seats, and the quality of seats that can be converted into a fully flatbed are the major service factors influencing willingness-to-repurchase economy and business class tickets. Also, it was found that passengers' willingness to repurchase is influenced majorly by service quality, but not necessarily influenced by satisfaction. These results reflect the passengers' consciousness of COVID-19 because the study was conducted during the heat of COVID-19 pandemic. Recommendations were suggested for airline management based on each class.

Details

Innovation, Social Responsibility and Sustainability
Type: Book
ISBN: 978-1-83797-462-7

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Article
Publication date: 13 February 2019

Ana Brochado, Paulo Rita, Cristina Oliveira and Fernando Oliveira

This paper aims to identify the main themes shared in online reviews by airline travellers, as well as which of these themes were linked with higher and lower value for money…

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Abstract

Purpose

This paper aims to identify the main themes shared in online reviews by airline travellers, as well as which of these themes were linked with higher and lower value for money ratings.

Design/methodology/approach

The research used mixed content analyses (i.e. quantitative and qualitative) to examine 1,200 reviews of six airline companies shared by airline travellers in a social media platform.

Findings

The analyses revealed nine themes in descriptions of airline travel experiences. These are the core services during “flights”, “airport” operations, crew and ground “staff”, ticket “classes”, “seats”, inflight “services”, “entertainment”, overall experiences of “airlines” and post-purchase recommendations of with which companies to “fly”. Low value for money ratings are linked with the “airport” and “flights” themes.

Originality/value

The results offer useful insights into airline travellers’ overall experiences based on social media information and facilitate the identification of the main themes linked with different value for money ratings.

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 2
Type: Research Article
ISSN: 0959-6119

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Book part
Publication date: 25 August 2014

Bruce Prideaux and Randall Whyte

In recent decades there have been substantial changes in the structure of the global airline industry commencing with deregulation closely followed by the emergence of Low-Cost…

Abstract

In recent decades there have been substantial changes in the structure of the global airline industry commencing with deregulation closely followed by the emergence of Low-Cost Carriers (LCCs). LCCs have greatly increased the opportunities for affordable air travel by generating considerable opportunities for many destinations to tap into new markets. This paper examines a range of issues related to the operation of LCCs and how destinations may be adversely affected when problems emerge. Specifically the paper examines problems that arose in Australia in 2011 when Tiger Airways Australia was grounded for an extended period. Until its grounding the airline, while having a poor reputation for on-time service and customer service, did have a significant impact on airfares which rose on average by 15% during the period of it was grounded.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-78190-746-7

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Article
Publication date: 1 September 2005

Lawrence F. Cunningham, James H. Gerlach, Michael D. Harper and Clifford E. Young

This research aims to investigate the premise that the use of internet airline reservation systems is perceived to be riskier than traditional airline reservation shopping.

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Abstract

Purpose

This research aims to investigate the premise that the use of internet airline reservation systems is perceived to be riskier than traditional airline reservation shopping.

Design/methodology/approach

A survey of 263 respondents investigated perceived risk at various stages of the consumer buying process.

Findings

The results reveal that perceived risk for airline reservation services follows a pattern throughout the consumer buying process. When viewed as a dynamic process, perceived risk for internet airline services shows more radical changes in risk levels than the traditional service. The analyses indicate that performance, physical, social, and financial risk are related to perceived risk at certain stages of the consumer buying process.

Practical implications

A major finding of this study is that there is a risk premium for internet airline reservation services and the risk premium permeates all stages of the consumer buying process. It is further demonstrated that the internet risk premium does affect usage levels; implying that the internet risk premium is consequential and warrants the implementation of risk mitigation strategies.

Originality/value

Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process.

Details

International Journal of Service Industry Management, vol. 16 no. 4
Type: Research Article
ISSN: 0956-4233

Keywords

Book part
Publication date: 21 October 2019

Sveinn Vidar Gudmundsson

European air transport policy, emerged through the confluence of case law and legislation, in four broad areas: liberalization, safety and security, greening, and the external…

Abstract

European air transport policy, emerged through the confluence of case law and legislation, in four broad areas: liberalization, safety and security, greening, and the external policy. Following the implementation of the single market for air transport, policy shifted to liberalizing and regulating associated services and in recent years to greening, the external aviation policy, and safety and security. Inclusion of air transport in the Environmental Trading Scheme of the European Union exemplifies the European Commission’s proactive stand on bringing the industry in line with emission reduction trajectories of other industries. However, the bid to include flights to third countries in the trading scheme pushed the EU into a controversial position, causing the Commission to halt implementation and to give ICAO time to seek a global multilateral agreement. The chapter also discusses how the nationality clauses in air services agreements breached the Treaty of Rome, and a court ruling to that effect enabled the EC to extend EU liberalization policies beyond the European Union, resulting in the Common Aviation Area with EU fringe countries and the Open Aviation Area with the USA. Another important area of progress was aviation safety, where the EU region is unsurpassed in the world, yet the Commission has pushed the boundary even further, by establishing the European Safety Agency to oversee the European Aviation Safety Management System. Another important area of regulatory development was aviation security, a major focus after the woeful events in 2001, but increasingly under industry scrutiny on costs and effectiveness. The chapter concludes by arguing that in the coming decade, the EU will strive to strengthen its position as a global countervailing power, symbolized in air transport by a leadership position in environmental policy and international market liberalization, exemplified in the EU’s external aviation policy.

Details

Airline Economics in Europe
Type: Book
ISBN: 978-1-78973-282-5

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Book part
Publication date: 3 February 2022

Can Öztürk

This chapter focuses on the application of segment reporting under IFRS 8 in the context of the airline industry. It analyses the airlines’ disclosures related to segment…

Abstract

This chapter focuses on the application of segment reporting under IFRS 8 in the context of the airline industry. It analyses the airlines’ disclosures related to segment reporting considering 11 aspects of segment reporting in the regional and global context. Observations reveal that reporting of segmental disclosures in the airline industry is diverse at different levels. In this regard, the following conclusions were drawn: (1) the nature of segments reported by the airlines is diverse due to methods adopted in preparation of operating segments; (2) factors such as internal reporting system, and nature of business used to identify the airline’s reportable segments were stated by most airlines; (3) types of products and services from which each reportable segment derives its revenues were stated by all airlines; (4) proportion of total revenues represented by separately reportable segments exceeds 75% of the revenue rule of IFRS 8; (5) most segmental performance measures are non-IFRS and diverse; (6) a limited number of airlines use dual reporting currency in segment reporting; (7) most airlines reported segment assets and liabilities for each reportable segment; (8) most airlines reported between 6 and 10 income and expense items in segment reporting; (9) segmental cash flow information is reported by one airline; (10) in terms of entity-wide disclosures, most airlines reported their revenue from major products and services in the revenue disclosures, most airlines reported their revenues on a geographical basis but few airlines reported their non-current assets on a geographical basis; and (11) more than half of the airlines did not declare the identity of the Chief Operating Decision Maker.

Details

Perspectives on International Financial Reporting and Auditing in the Airline Industry
Type: Book
ISBN: 978-1-78973-760-8

Keywords

Book part
Publication date: 6 August 2014

Xiaowen Fu and Tae Hoon Oum

This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our…

Abstract

This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our investigation concludes that liberalization has led to substantial economic and traffic growth. Such positive outcomes are mainly due to increased competition and efficiency gains in the airline industry, and positive externalities to the overall economy. Liberalization allows airlines to optimize their networks, and thus may introduce substantial demand and financial uncertainty to airports. Vertical arrangements between airlines and airports may offer a wide range of benefits to the parties involved, yet such arrangements could also lead to airline entry barriers which reduce the effects of liberalization. Three approaches have been developed to model the effects of liberalization in complex market conditions, which include the analytical, econometric and computational network methods. These approaches should be selectively utilized in policy studies on liberalization.

Details

The Economics of International Airline Transport
Type: Book
ISBN: 978-1-78350-639-2

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