Loyalty Model Proposal of Travel Agency Customers

Abstract

Customer loyalty to a destination and accommodation services constitutes a frequent object of research; however, customer loyalty to travel agencies is rarely analyzed. The presented article is an attempt to fill in this research gap. Its purpose is to construct and verify the model covering the impact of the selected factors on the loyalty level of customers of travel agencies operating in Poland. The conceptualization of the loyalty model of travel agency customers (based on the European path-based EPSI model) proposed in the article was first used to illustrate the existing correlations in customer behavior to analyze and explain the development of the loyalty phenomenon vis-a-vis travel agency customers. The aforementioned assumptions—having applied the structural equation modelling (SEM)—were reflected in the development of the theoretical model of travel agencies customer loyalty, the empirical verification of which (N = 1151) allowed us to determine the impacts of selected factors (i.e., the perceived quality of the travel agency’s offers, its image and the satisfaction with its service buyers) on the loyalty level of travel agency customers. It has been shown that two major factors have positive impacts on the loyalty of travel agency customers: (i) the perceived quality of travel agency offers, and (ii) its image. Furthermore, the conducted analysis highlights the positive influence of the perceived value of travel agency offers on the loyalty of customers.

Customer Satisfaction & Loyalty and Organizational Complaint Handling: Economic Aspects of Business Operation of Airline Industry

“…According to Karamata et al (2017), and Davidow (2003), speedy reply to the customer complaint cuts back the amount of negative word of mouth in perspective of the airline industry. Thus, service quality improvement depends on the ability of the airline to regularly meet passenger needs and desires and address their complaints promptly (Dudek et al, 2019;Prentice et al, 2017). By resolving customer complaints without a delay, the airline can benefit in order to achieve the competitive advantage, which enhances the service quality that would lead to the customer satisfaction and future economic aspects (Law, 2017).…”

“…Customer satisfaction through immediate handling of customer complaints, loyalty of customers will be enhanced, which will be fruitful to retain existing customers and attract potential customers through positive word of mouth (Yao et al, 2019;Etemad-Sajadi & Bohrer, 2019;Oyewole et al, 2007;Fornell, 1992). Numerous studies have demonstrated that the immediate response time to respond to customer complaints not only retains the existing customer but also brings a new customer (Dudek et al, 2019;Prentice et al, 2017;Blodgett et al, 1995;Gummesson, 1994). Hence, based on the previous literature, we have formulated the following hypothesis:…”

“…Loyalty can be described as the vow and commitment of an individual to buy any particular service or product every time (Oliver, 1997;Lee, 2017). In general, consumers change their behaviour or change brands on the basis of different elements, but customers change their loyalty only on the basis of the brand specification; thus, loyalty can be considered as promotion regardless of relationship of marketing factors (Dudek et al, 2019;Metwally, 2013). The most critical and important subject for the profit-based organization is the customer satisfaction that leads to the customer loyalty and future economic aspects of business operation (Zeithaml, 2000;Dennett et al, 2000).…”

“…After the deregulation, the airline industry was allowed to make certain changes in price setting, the measures of insurance and safety; thus, this revolution brought positive changes in the economic aspects of the airline industry. The new airlines have stepped in and competition has increased, but at the same time, service quality and customer satisfaction became an integral part of the airline industry (Dudek et al, 2019;Dennett et al, 2000;Vilkaite-Vaitone & Papsiene, 2016). According to Karamata et al (2017), Ostrowski et al (1993), and Lee and Cunningham (1996), due to intense competition, airline companies started to offer different promotional campaigns such as frequent flyer programs and computerized reservation services in order to retain customers, long-term customer loyalty and economic growth.…”

“…Customers have numerous opportunities for brand switching; therefore, there is an utmost need for timely response to customer complaints in order to attain their loyalty. If customers are ignored and their problem is not addressed, they would not only be dejected but would also change the airline brand, which will cause a severe damage to the airline in terms of customer loyalty and economic aspects of business operation (Dudek et al, 2019;Clemes et al, 2008). Thus, it is high time to the airline industry to come up with concrete strategies to resolve customer complaints in order to retain customer satisfaction and loyalty.…”