ANALYSIS OF CUSTOMER LOYALTY ON SERVICE QUALITY IN LION AIR AIRLINES

Abstract

In today's competitive airline industry, maintaining customer loyalty is critical to long- term success. Lion Air as one of Indonesia's largest budget airlines, faces challenges in

meeting customer expectations, especially within the millennial demographic. Increasing customer demand, coupled with more options for air travel, makes service quality an important factor in determining customer loyalty. The problem lies in how service quality affects customer loyalty, especially for millennial customers in the highly competitive Jabodetabek area. This study aims to analyse the effect of service quality on customer loyalty at Lion Air, specifically focusing on Indonesian millennials living in the Jabodetabek area. In the era of intense competition in the airline industry, understanding the factors that influence customer loyalty is critical to the sustainability and growth of airlines. This study uses quantitative research methods, using an online questionnaire distributed to 120 respondents who have used Lion Air services. The data collection process involved structured questions designed to measure perceptions of service quality across multiple dimensions, including reliability, responsiveness, assurance, empathy and physical evidence. Data analysis was conducted using Statistical Package for Social Science (SPSS) software, using multiple linear regression analysis to test the relationship between service quality and customer loyalty. The results showed that service quality has a positive and significant impact on customer loyalty, highlighting that better service can lead to higher levels of customer satisfaction and retention. The findings suggest that Lion Air should prioritise improving service quality to foster greater customer loyalty among its millennial customers.