Oneworld Alliance Perceived Value, Travellers’ Satisfaction and Loyalty

Abstract

The airline industry is facing stiff challenges. Most airline companies have allied and worked together to remain competitive and sustainable. Currently, three main airline 2alliances available, namely the Star Alliance, SkyTeam Alliance and Oneworld Alliance. This study examined the relationship between perceived value, travellers' satisfaction, and loyalty, focusing on Oneworld Alliance, which Skytrax has been awarded Leading Airline Alliance from 2003 to 2019. Four hundred sixty-three questionnaires have been distributed to Oneworld Alliance passengers on flights boarding to/ from Kuala Lumpur, London, and Paris. The questionnaires were analyzed using SmartPLS. The findings of this study showed that the overall dimensions of Oneworld's perceived value (which include perceived frequent flyer program, perceived price competitive, perceived psycho-social benefits, and perceived general attitude) had a positive and significant relationship with travellers' satisfaction and loyalty. Apart from contributing to the existing literature regarding travellers' satisfaction and loyalty toward airline alliances, this study also provides insights to the airline operators on travellers' satisfaction towards alliance partners by identifying the strengths and weaknesses of the alliance to enhance their business strategies.