Airline industry

Airlines case in terms of the processes that were at fault in the organization as evident from the episodes of failure described. 4 C. -or use the Survival Gap framework discussed the other day to identify the problems in delivering service quality. ” 5 D. Identify the steps that need to be taken by the organization to 8 D. L Rectify these problems . 8 D. 2 Track, monitor and disseminate information about customer processes and issues that can help the organization manage the above processes, so that it can differentiate its customer services, and maintain make customer believe in you ” . E. How do you 11 I Group Project Acknowledgement ” We shall not fail or falter; we shall not weaken or tire… Give us the tools & we will finish the Job” – Sir Winston Churchill, 1941 The Group would like to convey their sincere thanks to Professor Emit Musketeer for his unstilted support & guidance on the Assignment International Airlines”. His valuable inputs on the subject and deliberations & interactions were knowledge enriching & facilitated in completing the project. Members of Group 6 3 A.

Brief Intro about the Case – International Airlines A frequent flyer for a large international airline encounters typical, but recurring, Irvine problems. The marketing management of the company explores the use of information technology in understanding and dealing with the issues involved. Concepts of database marketing are introduced in a concrete setting. ; To explore the use of information systems in managing complex customer relationships and marketing communication programs. In spite of an abundant research on service quality, the paucity of research on airlines service quality is a growing concern.

Further, service discrepancy is identified between domestic international airliners and foreign international airliners. International Airlines founded in 1927 augmented the flight service provided to diplomats and their families by the Army / Airborne. The following questions has been asked to address the issues raised in the case: 1. To analyses the International Airlines case in terms of the processes that were at fault in the organization as evident from the episodes of failure described. 2.

To use the Survival Gap framework discussed the other day to identify the problems in Levering service quality 3 10 neatly ten steps Tanat need to De taken Dye ten organization to a) rectify these problems b) track, monitor and disseminate information about customer processes and issues that can help the organization manage the above processes, so that it can differentiate its customer services, and maintain satisfaction. 4. How do you make customer believe in you Attempting to answer each of the questions: B.

To analyses the International Airlines case in terms of the processes that were at fault in the organization as evident from the episodes of failure described. Five challenges for the successful development of air transport services are (1) enhancing safety, (2) infrastructure improvement, (3) reasonable taxation, (4) immemorial freedom and (5) Simplifying the Business through effective use of technology International Airlines was facing issues in most of the above challenges.

The following were some the issues being faced by the passengers: 4 a) b) c) d) e) Delayed flights Account related problems Baggage misplace Cancellation of flights Non recognition of frequent flying program passengers etc. In most of the above cases, international airlines was not giving importance to service delivery, rather they thought that in these type of industry, it is not possible to satisfy all the individuals. So they believed in sticking to their procedures. The staffs were also not being trained to handle the situation as a result, they also took little interest in resolving the passengers problems. . To use the Survival Gap framework discussed the other day to identify the problems in delivering service quality. Continued liberation’s and ‘open skies’, the impact of global alliances, new low-cost, no-frills carriers, on-line ticket selling, and appropriation of state-owned airlines are some of the crucial developments that have been impacting on airline business at a mime of continually falling average fares and yields.

Increasing competition from low cost, low fare carriers is one of the fundamental challenges being faced by the traditional full service carriers. The airline industry is inherently unstable and highly competitive, where all airlines have comparable fares and matching frequent flyer programs. In such a scenario, service quality is a significant driver of passenger satisfaction, loyalty and choice of airline. Airlines need to have valid and reliable measures for a better understanding of the variables likely to impact the perception f service quality being offered by them.

They need to measure not only customer perceptions but also expectations of airline passengers. If significant variations are found in the perceptions of airline passengers’ visa-¤-visa service quality on the different flights, changes in the marketing mix need to be implemented to improve the perception of quality. The Gaps Model Of Service Quality (Pursuant et al. 1985) developed a model which depicts how various gaps in the service process may affect the customer’s assessment of the quality of the service.

The foundation of the del (see Figure 1) is a set of four gaps which are the major contributors to the service quality gap which customers may perceive: Gap 1 (Consumer Expectation – Management Perception Gap): In formulating its service delivery policy, management does not correctly perceive or interpret consumer expectation. Gap 2 (Management Perception – Service Quality Specification Gap): Management does not correctly translate the service policy into rules and guidelines for employees. Gap 3 (Service Quality specification – service delivery Gap): Employees do not correctly translate rules and guidelines into action.

Gap 4 (Service Delivery – External Communications Gap): External communications – promises made to customers – do not match the actual service delivery. These four gaps emerge from an executive perspective on a service organization’s design, marketing and delivery of services. These gaps are located throughout the organization between frontline staff, customers and managers. They, in turn, contribute to another gap, I. E. Gap 5, which is the discrepancy between customers’ expected services and the perceived service actually delivered. This gap is a function of the other four gaps: I. . Gap f (gaps 1, 2, 3, 4). Reasons for Gaps in International Airlines 6 I Group 6 Gap 1 (Consumer Expectation – Management Perception Gap). International Airlines do not undertake market research or utilize its findings. The regular interaction with customers is also low in their case. Public, because of its size and legacy procedures, is not able to disseminate information to all levels. The staff agreed that levels of management inhibits communication with the customers. Gap 2 (Management Perception – Service Quality Specification Gap).

There are no clear goals for customer service, no mechanism to measure performance against these goals and there is no reward to improve service quality. For International Airlines, sales goals are more important than customer service. Gap 3 (Service Quality specification – service delivery Gap). The staff is neither empowered to deliver service, nor do they have the decision making freedom. There is also no reward for better customer. Staff feels that they spend more time resolving problems that they have little control over. Gap 4 (Service Delivery – External Communications Gap).

Public customer service staff do not have input in planning and execution of advertising, nor are they aware of external communication to customers. Their staff feels that external communication does not accurately reflect what customers receive in the service encounters. 7 D. Identify the steps that need to be taken by the organization to Rectify these problems Track, monitor and disseminate information about customer processes and issues that can help the organization manage the above processes, so that it can differentiate its customer services, and maintain satisfaction.

The following activities are involved during the Total service delivery in an International Flight. 9 IMPROVEMENT OF SERVICE DELIVERY AS we can see from the blueprint there much ore than the actual flying that must be done in order to offer the transport service that” s the reason why people are paying. Before and after the flight people have to go through a lot of procedures and to move across many locations. These are all dimensioning tasks that take away value from the flying experience.

Even if we like to think that flying is already part of our daily life, traveling by plane is not really as immediate as getting into the metro or the bus. The impact of all these procedures is so big that on the short distances (up to 600 KM) traveling by plane may result in asking only a little less time than by train. (Don” t forget the time needed to get to and from the airports). We suggest using many small airports instead of a few big ones. (Get the service De-livery closer to the customer) In this way we can reduce the amount of time that” s required to get to and from the airport.

Odds are that if there are more airports available, probably the customers won” t have to spend so much time going to and from the airport. To improve the flying experience on the short distances it would be necessary to streamline the entire process but unfortunately this is easier said than done. For ex-ample, people could go directly to the plane without the need to check in the bag-gage but this may slow down the boarding procedure and for some people it may be difficult to carry the baggage up the stairs to the plane. 0 Also, a lot of time gaps are due to the security procedures that are necessary when flying but not when traveling on the earth. One of the tasks that carriers are struggling to improve is the boarding of passengers. This takes a lot of time because people Know exactly winner tenet seat Is Ana teeny Know wanly entrance to use. And even when they know which en-trance they should use they not always elaborate. There is a psychological effect. People who waited to be served are less likely to collaborate. It” s like if they internalize the pace at which the service is being offered.

When they have the control of the pace they rather move slow even if five minutes before they were pushing to get into the plane. If the boarding procedures are slow with many controls and queues it” s likely that people will move slowly also when they could speed up the entire process at their advantage. Our suggestion is to arrange the flights on the time when there is not many other flights, so it could be easier to pass and avoid stress resulted by waiting. Or else, pro-vide a service that will allow travelers that have arrived even on the peak time to avoid all the formal interactions that has to do with passport control.

This includes escorting the passenger after arrival straight to the lounge where the client is resting and could have a drink while the service group is dealing with all necessary migration tasks. Then the passenger is guided to the place of receiving the luggage, later to the luggage check and lastly to the meeting room. This service is already in use within mom airports but not promoted by any specific airlines. Therefore, as first provider of these services it will create a better image for the company, add some extra financial benefits and, which is most important, create the value to the customer.

If adopted it could be used for individual passengers, tourist groups and important clients. It should be available in the short time before flight which will be an extra benefit for last minute bookings for people who value the time. As an additional service, International Airlines can also provide a taxi or limousine booking before the flight or when the clients have arrived already. The airline company must ensure that the driver will meet the client and take to important meeting or hotel on time.

This kind of feature will definitely extend the variety of services from Just flying from one airport to another to taking care of the passenger after the flight which is also be a good opportunity for airlines to build loyal strength of their clients. International Airlines is a one of the most prestigious airlines worldwide and its services are very high standard. However they have to keep being innovative in developing new services in order to use the competitive advantage productively. How do you make customer believe in you Good customer service is the lifeblood of any business.

We can offer promotions and slash prices to bring in as many new customers as we want, but unless we can get some of those customers to come back, our business wont be profitable for long. Good customer service is all about bringing customers back. And about sending them away happy happy enough to pass positive feedback about your business along to others, who may then try the product or service we offer for themselves and in their turn become repeat customers. A good salesperson, can sell anything to anyone once. But it will the approach to customer service that determines whether or not ever be able to sell that person anything else.

The essence of good customer service Is Torment a relations Walt customers – a relations an t t Tanat Uninominal customer feels that he would like to pursue. If we want our customer to believe in us, all we have to do is ensure that our business consistently does these things: 1) Answer your phone. Get call forwarding, or an answering service. But make sure that someone is picking up the phone when someone calls your business. 2) Don’t make promises unless you will keep them. Not plan to keep them. Will keep them. Reliability is one of the keys to any good relationship, and good customer service is no exception.

If you say, inform new bedroom furniture will be delivered on Tuesday’, make sure it is delivered on Tuesday. Otherwise, don’t say it. The same rule applies to client appointments, deadlines, etc.. Think before you give any promise – because nothing annoys customers more than a broken one. 3) Listen to your customers. Is there anything more exasperating than telling someone what you want or what your problem is and then discovering that that person hasn’t been paying attention and needs to have it explained again? From a customer’s point of view, I doubt it. Can the sales pitches and the product babble.

Let your customer talk and show him that you are listening by making the appropriate responses, such as suggesting how to solve the problem. 4) Deal with complaints. No one likes hearing complaints, and many of us have developed a reflex shrug, saying, ” You can’t please all the people all the time”. Maybe not, but if you give the complaint your attention, , you may be able to please this one person this one time – and position your business to reap the benefits of good customer service. 5) Be helpful – even if there’s no immediate profit in it. Help your customer, because he is giving you the opportunity to serve.

This may be one and last opportunity for you to impress your customer. 6) Train your staff (if you have any) to be always helpful, courteous, and knowledgeable. Do it yourself or hire someone to train them. Talk to them about good customer service and what it is (and isn’t) regularly. It explains the basics of ensuring positive staff-customer interactions. ) Most importantly, give every member of your staff enough information and power to make hose small customer-pleasing decisions, so he never has to say, ” l don’t know, but so-and-so will be back at… 8) Throw in something extra. 12 Whether it’s a coupon for a future discount, additional information on how to use the product, or a genuine smile, people love to get more than they thought they were getting. And don’t think that a gesture has to be large to be effective. If we follow the above, our business will become known for its good customer service. And the best part? The irony of good customer service is that over time it will bring in more new customers than promotions and price slashing ever did!