Research Report: Customer Satisfaction in the Low-Cost Airline Sector

This report investigates the relationship between customer satisfaction and low-cost airlines, a rapidly growing sector within the global aviation industry. It explores the reasons behind the increasing preference for low-cost carriers, focusing on the impact of low fares and reduced flight times. The study employs the SERVQUAL model to assess service quality and its effect on customer satisfaction. Research indicates that while price and time efficiency are key drivers, factors like in-flight services also influence satisfaction. The research utilized a descriptive research design, positivism approach, and deductive research method, incorporating both primary (surveys) and secondary data sources. Findings reveal that respondents generally favor low-cost airlines, primarily due to their affordability and efficiency, despite some dissatisfaction with the lack of extra amenities. The study concludes that while low-cost airlines have made significant inroads in the market, customer satisfaction remains a critical factor for sustained success. The report provides valuable insights into customer preferences and can serve as a useful resource for future studies in this area.

Abstract
In this research, the connection between the customer satisfaction and low-cost
airlines will be measured. The low-cost airline industry is gradually growing and integrating
globally. This had led to many people choosing low-cost airlines over traditional airlines. The
benefits of low-cost airlines are the main reasons behind this shift in choice. The low fares
and less timing of these airlines become the major reasons for this choice. The airlines should
maintain a good relation with their customers in order to gain their loyalty and satisfaction in
a gradual manner. If the airlines are not able to meet the satisfaction level of the customer,
then they will slowly fade in the global market. The study shows an extensive research
regarding the favourite airline of the people and the amount of satisfaction they have towards
that airline. It also depicts the reasons that are established for the choice of the airline. The
study was done with the help of the SERVQUAL model. The research showed that the
service quality of the airlines do affect the customer satisfaction level of the people.
However, it also shows that low fare and the less flight time taken to reach the destinations do
play an important role in the selection of low-cost airlines. It is also evident that the extra
services provided by flights such as drinks and food, directly affect the customer’s
satisfaction. Hence, an extensive research is necessary to understand the customer’s likes and
dislikes giving the customers fulfilment in the flight experience. Finally, this study can help
in being a useful resource in future studies.

Conclusion
The study focuses on the effects that low-cost airlines have on customer satisfaction.
After an extensive research, it can be concluded that low-cost airlines have penetrated the
aviation industry and made a predominant space in the industry. This deregulation of the
industry was started in the United States. It later seeped into other countries like Europe, Asia
and Australia. The low-cost airlines has made a great progress in the sector and are set to take
over the traditional airlines within a matter of time. The first model that was adapted by the
low-cost carrier was that of the South-West Airline but later it was evaluated and changed to
get a competitive advantage in the airlines sector. There are various advantages to availing
low-cost airlines like cheap fare, various promotional strategies which can be beneficial for
the customers, less time taken to reach destination, less delay in flights because of no or
minimum congestion in the airport. These advantages help the customers to choose between
low-cost carriers and traditional airlines. On the other hand, there are also many drawbacks
that can make the fliers sceptical about choosing low-cost flights. These drawbacks can affect
the quality of customer service and in turn affecting the customer satisfaction level. Customer
satisfaction is a vital part of any industry. It is necessary on the part of every industry to keep
in mind that without customer satisfaction it is impossible to grow in the market. If a
customer is dissatisfied with the service of a particular airline company, they will choose
from the various other option of airlines that are available to them. Hence, even though it
might not seem important, but customer satisfaction plays a vital role in the success of an
organization or company. In low-cost carriers, the level of customer satisfaction is generally
low as the extra services that are provided by traditional flights like meals and drinks are
offered to the customer if they pay extra. This makes the customer dissatisfied by their
service. The above research does an extensive analysis depending on previous sources and
researches that have been done on the relation between low-cost carriers and the customer

satisfaction they provide. The SERVQUAL model has been used to determine the quality of
service provided by the airlines to the customers and the customer satisfaction that is
achieved. It has been found that since people are able to reach their destination in less time
and less money, they are more inclined to choose these low-cost carriers as compared to cars,
trains or even traditional flights. Hence, it can be said from the above research that even
though people are dissatisfied because of the lack of leisure amenities provided in low-cost
carriers they are also satisfied due to the decrease in money and time while travelling.
The above research different research tools have been applied to make the study more
concrete and correct. Firstly, this research has taken the path of descriptive research design to
understand the full impact of low-cost airlines on that of customer satisfaction. This has been
done because descriptive research design helps to understand the point of view of the people
who were taken into the survey. Secondly, positivism approach were used for this study as it
deals with mainly quantitative data and this data will correctly establish the results and
understandings of the research. Quantitative data refrains from being bias if done correctly
and hence the researcher will be able correct information regarding the research topic. Lastly,
the deductive research method was used to obtain the correct results since this method is the
most common and correct method of testing the research hypothesis and getting correct
results. For the above research, both primary and secondary sources of data have been used.
The researcher has prepared a questionnaire to take a survey regarding the customer
satisfaction level of different people from low-cost airlines. A count of ten employees and
fifty customers were used to make the survey unbiased. Secondary sources like journals,
textbooks, online sources were used to gather information about any previous researches that
had been done on the same research topic. The combination of both these sources have
helped the researcher to obtain correct information and making the research unbiased as the
researcher have not depended on only one source. The researcher while conducting this

research has met all ethical concerns. It has been found after conducting the survey that the
most number of respondents were between the age group of 31-40 years and 21-30 years. The
age group of up to 18 years consisted of the least responses. Majority of the respondents’
availed flight services only once a year or even less. There was a few percentage of people
who have never flown in an airplane. Among the choices given in the questionnaire, majority
of the people chose Ryanair as their favourite airline. The least favourite airlines were
WizzAir, Norwegian and Jetz.com. The respondents were greatly satisfied with the service of
their favourite airline. Very few people were dissatisfied with the service of their chosen
airline. The respondents were also mostly satisfied with the online services of their chosen
airline. Given a choice between low-cost airlines and full-service carriers, majority of the
people chose full-service carriers, stating the reason of low fares as the deciding factor. There
were also various suggestions that the researcher took from the respondents in order to
understand the point of view of the respondents. Hence, it can be concluded by saying that
the study was a well-researched and concrete project.