The Influence of Perceived Value and User Satisfaction on Flight Ticket Booking Application User Loyalty in Indonesia

The advancement of technology makes it possible for ordering flight tickets online instead of conventionally using travel agent service. Also, the increasing number of smartphone users makes the mobile application as the most often utilized medium for tickets booking. However, user loyalty is still an issue for flight booking service providers because there are so many options and users has flexibility in choosing the service provider anytime. This study aims to determine the factors that influence perceived value and satisfaction that increase user loyalty of flight ticket booking application in Indonesia based on user's reason to make a transaction which are utilitarian or hedonic. This study used a quantitative approach by surveying 1.160 respondents who had purchased flight tickets through applications. Data were processed by Covariance Based Structural Equation Modeling (CB-SEM) using AMOS 24.0. The results show that there is a relation between perceived value, user satisfaction, and user loyalty. In addition, this study is also found that hedonic users are more prioritize experiences before, during, and after making a transaction, and utilitarian users are more prefer transaction that fast, safe, and easy.