CHAPTER I INTRODUCTION

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1 CHAPTER I INTRODUCTION 1.1 Background Airport management has a challenging role to ensure safe and efficient operation in a complex business (IATA, 2016). In an International Business Research, Park & Jung (2011) state that the important issue in managing the airport is service quality. Enhancing the airport service quality that are reliable become imperative due to the increased number of passengers that continues to grow each year. Airport service quality is related to users and passengers directly (Fodness & Murray, 2007). Orientation towards users and passengers are considered important as a competitive advantage that made the airport management attempts to improve perception and expectations of airport services quality. However, to measure service quality of the user perception is not easy because service quality is an abstract but it can be measured (Angelova & Zekiri, 2011). It requires analysis of the user perception of the airport service facilities. People mover system as airport facilities for passengers will be expected provide a high-value service quality, reliability, and satisfaction to the users if according to performance and expectations user. Users will be satisfied or disappointed if it has compared perceptions of performance products with the desired expectations (Kotler, 2003, p.36). Customer complaints about the airport facilities not caused by the passenger, but usually from the perspective of the manager who respond less well to the client right to improve the performance of airport facilities. In avoiding any misunderstanding between the passenger perception with a management of people mover system as airport service, so it requires an analysis to achieve customer satisfaction. Soekarno-Hatta International Airport (SHIA) is one of the major international airports that serves the greater Jakarta area as one of the gates into Indonesia. Airport development including airside and landside facilities, encapsulated in a Grand Design of Soekarno-Hatta International Airport and prepared accordingly by Minister of Transportation Decree Number 60 (1994) about master plan of Soekarno-Hatta International Airport. Regarding airport services quality, Minister of Transportation Decree Number 129 (2015) states

2 that service in airport provides the best service which mandatory to users in service standards set by Minister of Transportation. Based on some of these regulations can be concluded that SHIA has a responsibility to improve the airport services quality through Grand Design of SHIA. One of landside service planning is to improve passenger service with transport system within the airport terminal that known as People Mover System. It is a mass transit provides transportation for passengers to make shift from one place to another in the airport area. Besides that, there is a mass transportation like a monorail that using fixed routes scheduled and operates automatically, so that is also known as Automated People Mover System (APMS). Airport planning operations require time efficiency and the ability to make an appropriate decision. Therefore, it takes an integrated airport management between landside and airside. This research is a conceptual development to improve airport service quality that oriented by passenger perception (Fodness & Murray, 2007). While, gap between airport services are perceived by the airport management and passenger expectations (Tsai, et.al., 2011). Therefore, this research aim is to analyze the impact of passenger s perspective on people mover system service for the development of airport service quality at SHIA. The research has an expectation to reduce the gap in services quality on people mover system. 1.2 Problem Statement Practical View Traffic transport vehicle can be smoothly or congested (Kerner, 1999b). It also happens to vehicular traffic at SHIA area. Congested problems at SHIA area have an impact on the operation of free shuttle bus and get many customer complaints. Based on the annual report of PT. Angkasa Pura II (2014) as the operator of SHIA states that there are few consumer complaints relating to airport service, such as; complaints about queues, public services, operational procedures, vehicle parking, available modes of transportation at the airport, free shuttle bus, porter and trolley. Consumer complaints about the available modes of transportation and free airport shuttle bus become a topic of the problem in this research. The need of user to people mover system within the airport terminal when applied to the construction of a new terminal and expansion of

3 the terminal is very needed. It is because the user of people mover system as modes of transport facilities and passengers per year increases. Nowadays, one of the modes of transportation as a people mover within the airport terminal at SHIA is the only free shuttle bus. However, this type of people mover is still many shortcomings, such as: a few of mode, uncertainty schedule, the number of fleets have not been adjusted to the total number of users, and use of the free shuttle bus takes a time when there is congestion within airport terminals during peak hours every day (Kompasiana, 2013). Customer dissatisfaction is affected by the failure of the service operation such as transport delays (Anderson et. al., 2007). The impact of congestion that occurs at SHIA area become a new problem for the airport management to be able to break the congested by creating simulations and build a reliable infrastructure. It aims not to disrupt airport operations at the time of fixing the problem. Based on that statement, Grand Design of SHIA has plans to improve transport modes services with people mover system within the airport terminals without disrupt operations of the airport (Grand Design of SHIA documents, 2014). All users of service facility at the airport equated to a queuing system that should be adequately distributed (Neufville and Odoni, 2003, p ). It is included in distribution management the airport operations service. The operations service management at the airport aims to user satisfaction. Exceeding the expectations of users is key to satisfaction and loyalty to the user (Kotler & Kelvin, 2006). Customer complaints in SHIA indicate that there is a gap between the needs with the user expectations. Based on the statement can be concluded that lack of fulfillment facilities the people mover as transport modes within the airport terminal based on the development of airport service quality to achieve customer satisfaction Theoretical and Conceptual View User satisfaction towards facility services is influenced by the level of service quality at the previous facility (Sigala, 2004). It causes the new facility is expected to exceed the quality of previous facility service. Service quality improvement on people mover system in Grand Design of SHIA is expected to support increasing airport service management. People mover system existing

4 conditions that occur on free shuttle bus at SHIA has caused some customer complaint. If the construction of the terminal 3 ultimate and terminal 4 is not accompanied by improvement of services people mover system, then what happens is adding new issues such as the accumulation of passengers at one of the terminals which lead to congestion in the airport area. Congestion will create a bias on the user causing dissatisfaction or not in line with expectations (Anderson, et al., 2007). User satisfaction much importance on the reliability, convenience, and active public transport (Cavana & Corbett, 2007). Another cause of user dissatisfaction in public transport such as long waiting time, an uncertainty of the schedule, poor lounge facilities (Bielen & Demoulin, 2007). The needs of airport management is airport service quality that has a positive role dependence on value, passenger satisfaction levels, and airport image (Park & Jung, 2011). In another side, key performance indicators in airport operation is passengers satisfaction (Chao, et. al., 2013). Based on the statement can be concluded that the reliability of service quality in the operation of airport facilities affected by the level of user satisfaction and customer needs. Service quality for users or passengers that use facilities at the airport is a major concern and primary target of the airport management activities. Therefore, this research has contributed to reducing the problem of customer complaints (gap) against quality on people mover system to improve the airport service quality at SHIA. According to Dubin (1978) states that a complete theory must contain four items : What, Who, Why, and How. For What. This research aim is to analyze the impact of passenger s perspective on people mover system service for the development of airport service quality at SHIA. What (What will be researched). A factor explanation for the interesting phenomena (social or individual). This research is a verify of the service quality of people mover system to fulfill user satisfaction. Who (Anyone else involved). Airport service management, passengers, airport staff, and other airport service user. Why (Why to do this research). According to the problem statement which has been described previously. They are : the presence of customer complaints on free shuttle bus as people mover system, the presence of congested in peak hours at SHIA area, and the presence of terminal expansion (Grand Design of SHIA) : fulfillment of people mover system that reliable at airport within the terminals.

5 How (Method). In this research, the researcher wants to achieve a customer satisfaction on people mover that affects airport service quality. Servqual perspective theory used to identify the service quality (gap between airport management and passenger s expectation and attributes) on a people mover at SHIA. Servqual is a descriptive method that describes the level of customer satisfaction. Servqual was developed in 1985 by A. Parasuraman, Valarie A. Zeithaml, and Leonard L. Berry in the Journal of Marketing. The existence of customer complaints against people mover service requires airports to evaluate what level of service that has been provided to the users. It is to establish a real image and improve the airport services quality. Servqual which aims to determine the gap between airport services are perceived by the airport management and customer expectations. However, this research is more focused on the discussion of customer satisfaction by using a Kano Model method. It is a manual method to find out how to get customer satisfaction. Based on the results of Kano Model, it can be seen what attributes that affect service quality and can be prioritized. It is used to improve scale the airport service quality of the people mover system at SHIA (Fodness & Murray, 2007). 1.3 Research Objectives The objective of this research is two-fold. First, this research aims to identify service quality attributes based on passenger s perspective that affects airport service quality. Second, this research aims to propose priority service recovery strategies and improve the service quality of people mover at the airport to achieve passenger satisfaction. 1.4 Research Questions To achieve the thesis aims, research questions below are necessary to be discussed and analyzed. There are : a. What kind of attributes affect service quality makes a passenger satisfied? b. How to prioritize between the quality attributes in order to satisfy passengers and improve airport service quality?

6 1.5 Thesis Structure Thesis Structure (research outline) serves to help by establishing the scope of the discussion points that are arranged in a systematic research before starting the writing of research (Maddie, 2012). Below will be briefly described as a discussion point for the thesis structure. A chapter of introduction that focuses on discussing background, problem statement, objectives, questions, thesis structure, and thesis limitation 01 Introduction A chapter of literature review that focuses on evaluation the theory is used to explain relationship between variables that applied in the case and introduced/expand the definition of concepts or variables in the cases that used 02 Literature Review A chapter of research methodology that focuses on method to explain how to analyze or to discuss with questions of research or hypotheses and trustworthiness research 03 Research Methodology A chapter of empirical that study focuses on an evaluation by a method, case study Grand Design of SHIA, and empirical theory 04 Empirical Studies A chapter of results describes the findings of study based upon the methodology that applied to gather information 05 Finding and Discussion A chapter of conclusion describes the conclusions that presented from the results of this research and suggestions for future research 06 Conclusions and Future Reseacrh A chapter of reference is all of the list of references, literatures, books, etc. 07 References Figure 1. Thesis Structure

7 1.6 Thesis Limitation Limitation of the study is an attempt to provide information limitation of problems encountered when conducting research. This research is a process to analyze the influence of passenger s perspective on people mover system service for airport service quality development at SHIA. In the process, researcher conduct interviews and passengers perspective survey that used as primary data for research analysis. The researcher has an adversity conducting passenger survey at the airport directly to get the complete data of the passengers who transit or go to another terminal. Researcher assisted by a friend who can cooperate to conduct a survey of each passenger randomly selected. Distance is to be a critical problem for the researcher. It is because the case studies and the objectives that achieved in this research located in Indonesia while this research was undertaken in Sweden. Therefore, the distance to be one of the difficulty for researcher to obtain primary data and secondary data. Moreover, time is also an issue in this research. The researcher is expected to complete the research within a relatively short period of about five to six months in Sweden. It is difficult for researcher to collect the data needed in a short time, so that researcher utilizes the time available and makes a schedule appropriate to do research. Schedule created is used to guide the researcher to complete the study in order on time according to the target of a predetermined outcome. Selection of the research object is focused on people mover system facilities at the airport planning. It is because that services in the airport facilities are numerous and include landside facilities and airside facilities. Therefore, this study focused on people mover service to passengers traveling in transit and switch to another terminal.