This means that customers are getting better services over the past five years (Wichita State University, 2009). Earlier airlines were not for common people as it was the symbol of luxury and class. But today, it is accessible to the common people due to the arrival of low cost airline. Moreover globalization results to increase in number of airline passengers as more number of countries is developing at high rate. Most of the airlines are focusing on this growing trend of airline travelers and in order to capture the growing market they are coming with different innovative schemes and offers (FRBSF Economic Letter, 2002).
Generally there are two classifications of airlines customers. One is economy class and the other is business class. But this classification is no more applicable as nature of customers is getting more and more complex with the increase in the total number of customers due to various socio economical changes. As a result identifying and understanding customers’ needs and demands are the biggest challenges that the airline industry is facing today. Today customers want more value for their money. But different customers want this in different way. A person who is travelling once or twice a year, his/her expectation from the airline would differ from a person who is frequent traveler by air. Airline companies need to have clear understanding of this differing nature of expectation of the customers so that they can provide the right service at the right time. There are various factors on the basis of which customers can be segregated. These factors include demography, economy, society, culture, geography etc. Companies can have clear idea regarding the customers’ needs and wants on the basis of these factors. Analysis of these factors would help companies in adopting their future strategies.
According to the recent data published by American Customer Satisfaction Index, satisfaction level of