Maximizing Customer Satisfaction

In recent years, full service airlines are facing different challenges including the increasing competition, market shifts and the change of customer needs. This essay is to analysis the three main difficulties faced by full service airline and suggests some improvements.

"Global airlines have realized that ancillary revenues can make a huge difference to profit and loss, especially during difficult times” (Upadhyay, 2013, p.1). From a business point of view ancillary revenue has become a necessity for all airlines as they all struggle to fill the profit gap created by high operating costs and intense competition, in order to achieve an increase in profitability (Kuuchi, 2013). According to Robson, competitive advantage is attained by targeting to provide a more relevant and advanced product offering for the same price as the competition within the same market (Robson, 1994). However low budget airlines have turned this around and have focused on attaining competitiveness by offering lower prices than competitors, making their pricing their superior value and unique benefit, without increasing the products value itself, but simplifying it to its basic and letting the customer change the product to its personal needs and demands (E. Porter, 1985). Budget ticket offerings have long proven to be one of the most successful strategies and business models in the airline industry for companies such as easyJet, to attain not only a rise in profitability but also to increase market share and competitive edge, as more and more budget-conscious tourists are willing to give up comfort in return for lower fares (Hyonhee, 2012).

This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate

In this high mobility era, plane became indispensable part of people life especially for those who like or need to travel. Plane is the most efficient transportation particularly for traveling across islands, province and country. There are two kinds of plane services, which is low-cost carrier and full services. Commonly, low-cost carrier is chosen because of the fare is cheaper, but some people priority services rather than price. In Indonesia, there are two airlines providing full services, Garuda Indonesia and Batik Air (JPPN, 2015). There is argue in which one is the best full services airlines between Garuda Indonesia and Batik Air. Moreover, both airlines have some similarities as well as contraries. Garuda Indonesia and Batik Air is totally opposite in several keys. Obvious differences are

In current times, air travel plays an important role as it is a means of transportation for people and products. Since the beginning of flight in 1903, air travel has revolutionised the world. The airline industry is not only a means of transportation, but also a very successful business. (Harris, 2012)

In the case study all of the business models that Air Asia uses is matched with a Low cost carrier business model such as if the passenger need the food on board they need to pay an extra payment because no frill to serve, every passenger will sit in the same class. All of the business models will concern about the lowest cost as much as they can create: For instance: Reducing the personal cost by providing the multiple role to employees, not only work as a flight attendance but also work as gate agents. In addition Air Asia keeps operating costs low by uses one type of aircraft which is Airbus A320. The business model that Air Asia uses can be result in the benefits of an organization and thus called “Competitive Strategy of Air Asia”. Some of the business model that made is better than other airline, such the promotions that always attract customers, For instance; The price of the ticket start as 0.99 RM. This strategy is causing over the million of passengers. From all of above It can be referred that the type of competitive strategy which Air Asia use is ‘Cost leadership’ which is a process to serve customers at the lowest cost in order to fulfil the customer needs under the cost control in an organization. In this large of competitive market, Air Asia beginning in the right ways. The market positioning strategies and management of Low-Cost Airlines was clear from the beginning. According to the business model of Air Asia that shown in the case study indicated that the firm structure can result in Competitive advantage, Air Asia cut costs in every operation such as aircraft cost, but the performance still provide in a great ways, So Air Asia gain more profit than rival firms because their operation cost lower than other airlines and because cost reduction is another way to bring in revenue. Air Asia also find out how to maximize profit, such as sale Packages (a case study on Air Asia

Through a century of perpetual development [1], the commercial airline industry has witnessed a steady increase in airplane passenger capacity [2]. The industry itself is a notable economic force, from the perspectives of both operations and its impacts on relevant industries such as aircraft construction and tourism [3]. Different scales of wealth has led to market segmentations between airline companies with dissimilar objectives and consumer focus: premium airlines such as Singapore Airlines offering top-notch service, comfort, and quality at a higher price whilst low-cost airlines such as easyJet are catering to consumers that prefer economical flights.

!2 According to Hoffman and Bateson, four factors service firms should consider prior to attempting to increase customer satisfactory ratings are the satisfaction ratings of the firm’s competitors; the dollar investment necessary to increase customer satisfaction relative to the impact of increasing the firm’s market share; the number of time periods required to recoup the investment; and the opportunity costs associated with the other uses of dollars spent (Hoffman & Bateson, 2011). Together, these factors make up the Babich Model. Management, investing time and energy into these factors, can provide data towards the

Quality of the service is the degree of conformance of all the relevant features and characteristics of service to all the aspects of the consumers’ needs limited by the price and delivery s/he will accept. Quality can be viewed from two perspectives:

With so many services provided by airlines it's best, to look at the big picture and

My purpose of this research is to help low-cost airlines better understand the market (customers) so that they are able to adjust their operation based on the result. Chinese customers are unfamiliar with this low-cost mode, so they are highly likely to feel dissatisfied with service being degraded. The object of this research is

The concept of quality have defined in terms of goods or products by the older literature. Because goods are tangible, their quality can be viewed in terms of the, functionality which is dependent on their manufacturing processes. Parasuraman et al (1985) argues that the knowledge about goods is not enough to fully understand the concept of service quality (Parasuraman et al., 1985). Services on the other hand are intangible, hence firms finds it challenging to measure and evaluate their quality as perceived by customers. Service are performance base rather than objects they cannot be counted, measured, inventoried, tested and verified before sales in order to assure quality. This leads to challenges in understanding customers perceived service quality. Secondly services are is heterogeneity. This means that service

support she gave to us in order to produce this write-up. We appreciate her efforts

The main purpose of this study consists in an investigation on the service quality as the cause and the loyalty as the effect of customer satisfaction in airline industry.

This Questionnaire is designed to address the “Management problem in Airline industry due to the rapid growth of Low Cost Carriers” (LCCs) which especially increase the demand of Low cost travel.