RELATIONSHIP OF CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES ADOPTED BY AIRLINES WITH LOYALTY OF PASSENGERS

Customer Relationship management has become a crucial strategy which is adopted by every organization to improve its business and thus gaining competitive advantage over the rivals. The Indian Aviation is one of the largest growing sectors which laid attention on maintaining profitable relations with its passengers due to tremendous increase in passengers' traffic in the recent years. This paper assesses the effect customer relationship management factors adopted by Aviation sector on loyalty. The study uses seven customer relationship management factors -Customer focus, Responsiveness, Staff assistance, convenience, post-flight services, other relationship maintaining practices and needs of the customer based on the previous review of literature. Various statements related to relationship management practices were asked under each factor. The sample size consisted of 300 passengers from different districts of Punjab and Union Territory Chandigarh. Purposive non- probability sampling technique was used to select the target population for the survey. Structural equation modeling was employed to examine the relationship of the Customer Relationship Management factors on loyalty. The findings of the research shows that passengers have overall positive attitude towards Customer Relationship Management practices adopted by airlines and out of seven factors responsiveness, staff assistance, convenience, and other relationship practices factors have significant effect on passengers' loyalty. The research study suggested that airline should adopt appropriate relationship management strategies to develop long lasting relationship with the travelers thus result in loyalty towards the company