| According to the purpose of journey, there are 3 segments of customers in airline industry: business traveler, leisure traveler, and visiting friends & relatives.Research done by Natalisa (1999) found that the level of customers’ satisfaction/dissatisfaction at the three segments (business, leisure and visiting friends & relatives traveler) were differentiated by customers’ perception of service quality. The business traveler has a higher focus on service quality and on time performance factors. In addition, the price factor was not the differentiating variable in the level of satisfaction/dissatisfaction for customers of leisure (vacation) and visiting friends & relatives segments. In conclusion, giving too much emphasis on discount policy (pricing strategy), which is now as a major strategy used by airline companies in Indonesia, must be wisely implemented. Based on the data from airline industry in United States, many companies using low-fare strategy are facing bancruptcy. |