Regulatory focus and recovery fit in airline overbooking

Abstract

Improper recovery of overbooked customers may lead to severe results. However the research on the recovery strategy in overbooking area is very insufficient. The purpose of this paper is to develop a recovery strategy based on regulatory focus theory. The study predicts that recovery fit can lead to improved customer satisfaction. Using situationally induced regulatory focus experimental design, the results show that customers under time pressure prefer preventing losses, whereas time enough customers concern more about achieving gains. The current recovery practices can be classified into promotion versus prevention orientation. A fit in recovery practices and customers regulatory orientations may bring higher satisfaction for customers than those who are not fit their regulatory orientation. The results may help airline companies make better recovery strategies.