Pawer Yezreel Sitorus Primary Author Desy Try Ellisa Primary Author Yoanita Octora Primary Author Deslida Saidah Primary Author

Terminal 3 of Soekarno Hatta International Airport is one of the largest airport terminals in Indonesia that uses a sophisticated baggage handling technology system. However, there are still baggage service failures caused by the distance of the parking stand that is too far to the operational area of the baggage reclaim. So the aims of this research are to analyze the correlation between service failure, service recovery and customer behavior. This paper is quantitative research. Questionnaires were collected from 140 respondents who have experienced service failure in Terminal 3 selected by simple random technique, and the data analysis was using SEM SMART PLS. The results of this study indicate the correlation between service failure, service recovery and customer behavior. Practical implications of the findings are also discussed.