Chinese Tourists’ Perception of LCC Service Attributes : Focus on Developing IPA-based Service Management Strategies

This study reviews the current status of China’s rapidly expanding LCC industry and conducts an Importance- Performance Analysis (IPA) on the significance and performance of various service attributes experienced by LCC users during each stage of the service process. From the analysis, this paper identifies the service attributes that require improvement and provides service management strategies for highly efficient service. The service attributes that fell in each of the IPA matrix quadrants are as follows. Pre-flight services such as ease of reservation and ticket purchase; efficiency of check-in service; service quality at reception desk; modifiability of reservation availability and quality of airport lounge; service quality of cabin crew; quality of in-flight food and beverage; and brand awareness are positioned in the first quadrant (Keep up the good work). The second quadrant (Concentrate here) included airline image, safety, and reliability. The third quadrant shows low priority attributes, which were presented as post-flight and general service attributes such as availability of mileage service; flight punctuality; flight price; ease of refund; variety of flight schedules; emergency management ability; compensation for delays and cancellations; baggage claim service; and availability of nonstop flights. Lastly, comfortable seats, in-flight entertainment, and variety of in-flight duty-free products fell in the fourth quadrant (Possible Overkill). Following this analysis andespecially with the increase in the country’s GDP per capita, we suggest that LCCs in China should look beyond the zero-sum price competition and implement a management strategy that will allow them to recover from the unfavorable image on the safety and reliability of LCCs.