While agents rely on good service to retain loyal clients, a new study suggests there is no link between customer satisfaction and an airline’s profitability.
Findings of the study by the University of Nevada, were recently published in Forbes online.
"We have found no link in customer satisfaction and financial performance,” says professor and department chair of the University of Nevada, Reno’s College of Business Accounting Department Jeffrey Wong, adding that airlines don’t seem to place a priority on customer service.
“In the end, their profitability does not appear to be dependent upon customer service, based on our analysis,” Wong said. “Given that the airline industry offers a service with few alternatives, the findings of our research may not be surprising.” Wong and other researchers also found that improved load factors and the elimination of unnecessarily large aircraft, has driven airline profits.
While an airlines profitability is not dependant on good customer reviews, the opposite is true for travel agents, consultants say. eTNW spoke to a Flight Centre travel expert who said that providing clients with good service is key for business. He further stated that when a customer is dissatisfied with the service received, they have the luxury of moving onto another travel agency or consulting someone else.
Until passengers start punishing the worst airlines by refusing to support to the point where it affects profit margins, the chances of better customer service is improbable, the study concludes.
