Mind the Gap: Examining the Gap in International Passenger Expectations and Perceptions of Service Quality in Low-cost Carriers

Abstract

Meeting or exceeding passengers' service quality expectations has become a critical factor for lowcost carriers (LCC). Still, only limited efforts have been made to date to investigate the differences (gap) in LCC passengers' expectations and perceptions. A comprehensive 25-item SERVQUAL framework for LCC was first developed through an extensive literature review and insights obtained from exploratory interviews and focus groups with passengers and industry experts. Using survey data of LCC passengers, the validity and reliability of the framework were first established, and then the differences in the expectations and perceptions were understood. The results indicate that none of the service quality attributes of LCCs have met, let alone exceeded, expectations, and the most significant gaps were found for "reliability" and "responsiveness" dimensions. With the growing global demand for budget travel and new LCCs entering the market, the study provides timely insights for LCCs to narrow the expectation–perception gap and achieve competitive advantage.