Singapore Airlines

Singapore Airlines

Introduction

As a matter of fact, nowadays in most affluent society, where people are better able to appreciate the finer things in life, more often than not they are more willing to pay more for better quality service. They do not compromise quality for money. No doubt SIA charges a little more than other firms, on hindsight one may think that customers will not patronize SIA because of the relative higher cost, but this is not the case. The first half of this year saw Singapore entertaining more than 4.9 millions visitors. This translates to more people traveling with SIA. SIA believes in investing its software and hardware- its people and capital (like entertainment system and better airplanes). Moreover, SIA has built a strong brand name over the past 60 years of services which other competitors cannot compete with. Branding and reputation cannot just be built overnight. It is through years of experience and hard work that SIA is an internationally respected brand that it is today, being an international award winner for 7 consecutive years. Customers trust them for their services! Hence explain why people choose SIA amongst many other air carriers.

Supporting evidences

In-flight entertainment system

SIA provides comfortable seating, such as wider seats with automated adjustable functions. There are multiple sleeping positions such as lie-flat sleeping mode. This allows customer to sit and sleep comfortably throughout the journey. It also offers a wide range of entertainment options. These entertainment systems have large screen allowing passengers to watch television programs such as comedy and sports. With this it allows customer to enjoy an extensive section of television programs on long-haul journey. SIA simply has a lot to offer.

Technology

Technology facilitates the administrative procedure. It enables the customer to check in through various ways such as the Internet, downtown check in, telephone and fax check in or even SMS check in. This saves the trouble of having to arrive personally at airport 2 hours before flight just to check-in. It also allows customer to print their boarding passes, which brings further convenience to the customers. This hassle-free ways save time and make traveling stress-free.

Revenue model (20 marks)

The revenue model SIA adopted is the Sales Revenue model. SIA derived revenue by providing services to the customer.

Simple economics law states that:

Profit = Revenue – Cost

From the above formula, in order for a higher profit, revenue has to be maximized or cost, whether fix or variable, minimized or both.