FACTORS AFFECTING COSTUMER PREFERENCES WHILE CHOOSING A LOW COST AIRLINE

Abstract

The emergence of Indonesian home grown low cost airline has converted the previously customer group into potential customer. This study examines the dominant factors that influence customer preferences other than price factors while choosing a different low cost airline in Indonesia. Even though the price is the most significant factor which influences the respondents’ preferences towards the low cost airlines’ services, this research has proven that there are other significant note-worthy factors which influence their preferences. The factors included in this research are price, safety, on time performance, cabin and baggage services, personal behavior type of airlines, scheduling, food and drink, airline image, comfortable and flight network. The research concentrates on five low cost airlines in domestic flight Indonesia; Lion Air, Sriwjiaya Air, Wings Air, Citilink and Batavia Air. A total of 140 Indonesian students from President University who travelled within Indonesia via low cost airlines were asked to fill in the questionnaires. The research has shown that safety is the most important factor while choosing an airline and other dominant factors which come into play are price, convenience of schedules, and comfort. The least important factors are food and drinks, cabin services and type of airplane. Sriwijaya Air has come out as the most preferred low cost airline between domestic flights in Indonesia. Batavia Air as the least preferred airline with minimum number of people voting.