Application of Experience Economy in the Airline Industry: Airline Service Innovation and Passenger Loyalty
Chen, Mingke (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025051411562
https://urn.fi/URN:NBN:fi:amk-2025051411562
Tiivistelmä
The airline industry operates in a highly competitive environment where providing basic transpor-tation services is no longer enough. Airlines increasingly compete based on the quality of the passenger experience. This thesis examined how the application of the experience economy concept, through service innovations, influences passenger satisfaction and loyalty. The objective of the study was to examine which types of innovations, such as digital tools, process improve-ments, and personalized services, contribute most effectively to enhancing travel experiences and strengthen loyalty. The study focused on passengers' recent flight experiences without con-sidering broader external factors.
The theoretical framework was based on the principles of the experience economy and existing literature on service innovation and customer loyalty. A quantitative research approach was adopted, utilizing a structured survey to collect data. The survey targeted airline passengers from multiple countries and gathered 138 valid responses. Data analysis was conducted using descrip-tive statistics and correlation analysis. Microsoft Excel and IBM SPSS Statistics were supported to process the data and test relationships between experience factors and loyalty intentions.
The findings showed that passengers generally appreciated innovations such as user-friendly digital services and personalized cabin crew interactions. About two-thirds of the respondents expressed strong intentions to fly again with the same airline or recommend it to others. However, areas like innovative pricing strategies and boarding processes received mixed feedback. Corre-lation analysis indicated a positive relationship between enhanced experiences and loyalty, alt-hough not all experience factors had equally strong impacts. The results suggest that airlines should continue investing in digital convenience, smooth operations, and personalized human service to strengthen customer loyalty. Limitations of the study and directions for future research were also discussed.
The theoretical framework was based on the principles of the experience economy and existing literature on service innovation and customer loyalty. A quantitative research approach was adopted, utilizing a structured survey to collect data. The survey targeted airline passengers from multiple countries and gathered 138 valid responses. Data analysis was conducted using descrip-tive statistics and correlation analysis. Microsoft Excel and IBM SPSS Statistics were supported to process the data and test relationships between experience factors and loyalty intentions.
The findings showed that passengers generally appreciated innovations such as user-friendly digital services and personalized cabin crew interactions. About two-thirds of the respondents expressed strong intentions to fly again with the same airline or recommend it to others. However, areas like innovative pricing strategies and boarding processes received mixed feedback. Corre-lation analysis indicated a positive relationship between enhanced experiences and loyalty, alt-hough not all experience factors had equally strong impacts. The results suggest that airlines should continue investing in digital convenience, smooth operations, and personalized human service to strengthen customer loyalty. Limitations of the study and directions for future research were also discussed.