The Consumer Behavior toward Online Travelling Agency (OTA): Evidence from Indonesia

Abstract

Purpose of the study: This study aims to examine five proposed research models and understand the factors affecting customer expectation, service quality, perceived value, customer satisfaction, and brand loyalty in Online Travel Agent (OTA) companies. This study also evaluates the general feelings of the customers whether they feel satisfied or not with OTA products and/or services. Methodology: The research method of this study used a quantitative approach and analyzed the acquired data by using single and multiple linear regression techniques. The service quality, customer expectation, corporate image, perceived value, customer satisfaction, known as predictor variables that affect the dependent variable of brand loyalty. Main Findings: From the statistical tests conducted in this study, it reveals that only one out of all eleven hypotheses were not accepted. Surprisingly it reveals that the customers keep purchase hotel and/or flight tickets from online travel booking sites no matter its service quality. Customer satisfaction and corporate image were influenced more significantly rather than its service quality. Implication: This study evaluates all customers past purchasing behaviors of the hotel and/or flight tickets purchased through OTA, and the result was valid, thus it can be used to reflect on how Indonesian OTA’s products and services may improve the customer satisfaction through their marketing program in the future. Novelty/Originality of this study: There have been problems that might found in Indonesian OTAs that may lower its customer satisfaction level toward the traveling industry. However, there was only a limited number of OTA research studies conducted for the Indonesia market to understand its online consumer behavior. Therefore this study was conducted to explore the plausible factors that cause the problem.