Integrated Airline and Tourism-Hospitality Services and Passenger Loyalty: The Mediating Role of Passenger Satisfaction and the Moderating Effect of Brand Image

Abstract

The contemporary airline industry has evolved beyond basic passenger transportation, with travelers increasingly demanding seamless integration of flights, accommodation, ground transportation, and tourism-related services. In emerging markets such as Pakistan, airlines and tourism-hospitality providers often operate independently, resulting in fragmented service delivery and weakened passenger loyalty. Addressing this gap, the present study investigates how integrated airline and tourism-hospitality services influence passenger retention, examining passenger satisfaction as a mediating mechanism and brand image as a moderating factor. Grounded in the SERVQUAL model and Expectation–Confirmation Theory (ECT), this study adopts a quantitative, cross-sectional research design. Data were collected through a structured questionnaire from 207 airline passengers in Pakistan who had prior experience with integrated airline–tourism services. Most participants traveled for leisure and tourism purposes, and remaining reported using integrated services fewer than three times, reflecting occasional but informed usage. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to examine direct, mediating, and moderating relationships. The empirical findings indicate that integration of airline and tourism-hospitality services has a strong positive effect on passenger satisfaction and a significant direct impact on passenger retention. Passenger satisfaction was found to partially mediate the relationship between service integration and retention, highlighting its central role in converting integrated service experiences into loyalty outcomes. Furthermore, brand image significantly moderates the satisfaction–retention relationship, suggesting that a strong airline brand enhances the loyalty benefits derived from satisfied passengers. This study extends the existing body of knowledge about service quality and passenger satisfaction to an integrated airline–tourism context within an emerging market and provides practical insights for airlines, tourism operators, and policymakers seeking to strengthen passenger loyalty through coordinated service strategies.