What key operational issues can you identify in this situation?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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What key operational issues can you identify in this situation?

Happy Airways-how to keep the passengers happy!
By Dr Rajeev Sharma, Charles Darwin University
The take-off
Happy Airways flight HAO09 from Bangkok to Sydney was scheduled to
depart at 10:40pm. The pilot informed the passengers before the
scheduled take-off that due to heavy congestion at Suvarnabhumi Airport,
there would be a slight delay. No one seemed to mind. In fact, many
travellers felt reassured by this friendly and informative update.
HA009 was a code-shared flight with more than 180 passengers on
board. While the majority were Australians, a substantial number of
passengers were from other countries, mostly from South-East Asia. Many
passengers had connected with the flight from other international
destinations such as Dhaka, Ho Chi Min City, Jakarta, Tokyo and Seoul.
Although for many travellers, Sydney was the final destination, others were
Exhibit 10.19 Not-so-happy travel with Happy
due to connect with domestic flights to places such as Wagga Wagga,
Airways.
Bathurst and the Gold Coast.
© rawpixel/123RF.com/DAL
CHAPTER 10 Services: the intangible product
327
Checked-in baggage
As a full service carrier, all passengers on this flight had a decent checked-in baggage allowance. Economy-class passengers
were allowed one checked bag of not more than 23 kg. However, this allowance became progressively higher, driven by
factors such as 'frequent flight' status, country of the ticket purchase and class of travel.
In-flight experience
Despite leaving the aircraft bay at about 11:10pm, the plane was not airbound until 11:50pm-just over an hour late from
the scheduled departure. The passengers' frustration with this delay was mild but noticeable. The in-flight crew did their best
to look after the passengers, but many families, particularly those with very young children, were clearly unhappy with the
whole situation. To make the situation more unpleasant, it turned out to be a bumpy flight due to monsoon activities in
the region. For the most part of the journey, all passengers were required to keep their seatbelts fastened and were
restricted to their seats.
Transcribed Image Text:Happy Airways-how to keep the passengers happy! By Dr Rajeev Sharma, Charles Darwin University The take-off Happy Airways flight HAO09 from Bangkok to Sydney was scheduled to depart at 10:40pm. The pilot informed the passengers before the scheduled take-off that due to heavy congestion at Suvarnabhumi Airport, there would be a slight delay. No one seemed to mind. In fact, many travellers felt reassured by this friendly and informative update. HA009 was a code-shared flight with more than 180 passengers on board. While the majority were Australians, a substantial number of passengers were from other countries, mostly from South-East Asia. Many passengers had connected with the flight from other international destinations such as Dhaka, Ho Chi Min City, Jakarta, Tokyo and Seoul. Although for many travellers, Sydney was the final destination, others were Exhibit 10.19 Not-so-happy travel with Happy due to connect with domestic flights to places such as Wagga Wagga, Airways. Bathurst and the Gold Coast. © rawpixel/123RF.com/DAL CHAPTER 10 Services: the intangible product 327 Checked-in baggage As a full service carrier, all passengers on this flight had a decent checked-in baggage allowance. Economy-class passengers were allowed one checked bag of not more than 23 kg. However, this allowance became progressively higher, driven by factors such as 'frequent flight' status, country of the ticket purchase and class of travel. In-flight experience Despite leaving the aircraft bay at about 11:10pm, the plane was not airbound until 11:50pm-just over an hour late from the scheduled departure. The passengers' frustration with this delay was mild but noticeable. The in-flight crew did their best to look after the passengers, but many families, particularly those with very young children, were clearly unhappy with the whole situation. To make the situation more unpleasant, it turned out to be a bumpy flight due to monsoon activities in the region. For the most part of the journey, all passengers were required to keep their seatbelts fastened and were restricted to their seats.
Arrival
HAO09 was further delayed and eventually landed in Sydney at 10am-about two hours late due to the influx of regular
international flights at Sydney Kingsford Smith Airport.
No one could anticipate that more drama awaited them in Sydney. More than 85 per cent of passengers did not get
their checked-in luggage. After clearing immigration formalities, the passengers waited patiently at the announced
baggage conveyor belt. They started to get suspicious when only a few bags emerged on the belt. Apart from a few
porters and airport staff, no one from Happy Airways was there to provide credible information on the status of the
checked-in luggage.
Customer service
The passengers eventually found the customer service counter of Happy Airways, tucked away in an obscure location.
By now, all of the passengers were gravely concerned about their missing luggage. This was particularly noticeable for
passengers who did not reside in Sydney and for passengers who were due to connect with other flights in Sydney.
This group had multiple concerns, including the possibility of having to come back to Sydney Airport to collect their luggage
when it did arrive, as well as worries about customs formalities.
It became evident that most non-Australian passengers were in Sydney for official engagements and meetings.
The delayed luggage was clearly a source of huge inconvenience and frustration for them.
The customer service counter of Happy Airways was soon overwhelmed by 150 or so passengers-some clearly
seething with disgust and anger. The airline staff struggled to provide definitive answers to some very simple queries from
the passengers, such as:
When will the luggage arrive?
When will the airline provide information about the luggage?
The process to formally register missing luggage with the airlines proved to be tedious and at first there were insufficient
forms for everyone affected by the delay. The result was confusion, frustration and delay.
Reason for missing luggage
Everyone wanted to understand why they didn't get their luggage. Clearly it was not a case of one or a few misplaced pieces
of luggage left behind at the source as the result of an oversight. There was obviously a more serious reason. Reluctantly,
one Happy Airways staff member confirmed that the pilot had decided to offload most of the luggage in order to carry extra
fuel to deal with the likely monsoon activity in the flight path.
After going through the lengthy paperwork process, most passengers had left the airport by 2pm. Despite the assurance
that their luggage would be delivered within 24 hours, some of the passengers in Sydney waited two days. It was unclear
when the out-of-Sydney passengers got their luggage.
(This anecdotal case study is based on firsthand experience of recent international travel.)
Continued
Transcribed Image Text:Arrival HAO09 was further delayed and eventually landed in Sydney at 10am-about two hours late due to the influx of regular international flights at Sydney Kingsford Smith Airport. No one could anticipate that more drama awaited them in Sydney. More than 85 per cent of passengers did not get their checked-in luggage. After clearing immigration formalities, the passengers waited patiently at the announced baggage conveyor belt. They started to get suspicious when only a few bags emerged on the belt. Apart from a few porters and airport staff, no one from Happy Airways was there to provide credible information on the status of the checked-in luggage. Customer service The passengers eventually found the customer service counter of Happy Airways, tucked away in an obscure location. By now, all of the passengers were gravely concerned about their missing luggage. This was particularly noticeable for passengers who did not reside in Sydney and for passengers who were due to connect with other flights in Sydney. This group had multiple concerns, including the possibility of having to come back to Sydney Airport to collect their luggage when it did arrive, as well as worries about customs formalities. It became evident that most non-Australian passengers were in Sydney for official engagements and meetings. The delayed luggage was clearly a source of huge inconvenience and frustration for them. The customer service counter of Happy Airways was soon overwhelmed by 150 or so passengers-some clearly seething with disgust and anger. The airline staff struggled to provide definitive answers to some very simple queries from the passengers, such as: When will the luggage arrive? When will the airline provide information about the luggage? The process to formally register missing luggage with the airlines proved to be tedious and at first there were insufficient forms for everyone affected by the delay. The result was confusion, frustration and delay. Reason for missing luggage Everyone wanted to understand why they didn't get their luggage. Clearly it was not a case of one or a few misplaced pieces of luggage left behind at the source as the result of an oversight. There was obviously a more serious reason. Reluctantly, one Happy Airways staff member confirmed that the pilot had decided to offload most of the luggage in order to carry extra fuel to deal with the likely monsoon activity in the flight path. After going through the lengthy paperwork process, most passengers had left the airport by 2pm. Despite the assurance that their luggage would be delivered within 24 hours, some of the passengers in Sydney waited two days. It was unclear when the out-of-Sydney passengers got their luggage. (This anecdotal case study is based on firsthand experience of recent international travel.) Continued
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