The aviation industry has witnessed key structural changes over the past few decades (Dennis, 2007). Notably, the changes have seen the rise of low cost carriers otherwise known as budget carriers. The low cost airlines have significantly won the support of many startup airlines leading to their spread all over the world into both the long-and short-haul markets. This phenomenon has resulted in a change in the competitiveness of major airlines in the industry (Dennis, 2007). Since the budget airlines charge low on ticket prices, the lost revenue is recovered through food, seat allocation and priority boarding. A good example of low cost carriers is the Southwest Airlines that operates in the United States.
In the recent past, many airlines have come out strongly through adverts as
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Notably, there has been increased number of carriers that offer services at reduced prices. These airlines commonly referred to as low cost carriers have gained popularity in the Asian region and other parts of the world. Dubai, being among the busiest cities in the world, has registered a high number of low cost carriers that offer transport services to both the businesspeople frequenting the busy city and also the tourists. Years ago, the old national airlines provided differentiated services at a higher cost, although the services were better as compared to the services offered by low cost carriers. Therefore, the main purpose of this paper is to evaluate the differences in customer expectations between the services offered by full service carriers and the low cost carriers.
To evaluate different customer expectations for airline service quality characteristics of LCCs and FSCs through Kano Model in Dubai International Airport
To evaluate whether price is the only main determinants of carrier choice for the passengers in Dubai International
Saha, G. C., & Theingi. (2009). Service quality, satisfaction, and behavioural intentions: A study of low-cost airline carriers in Thailand. Managing Service Quality , 19 (3), 350-372.
of price versus service in the airline industry as a whole, as well as, the
3. Fortunately, there are several opportunities in the airline industry of which companies will be able to take advantage. First, the airline industry is reviving and passenger levels are now returning to pre-9/11 status. Companies can offer high degrees of service and reduce costs through the use of the Internet, such as online ticket sales, flight seating charts, and plane infor...
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
In order to measure the impact of United's price increase, we would need the price elasticity of the demand. The main problem is that there is no agreement as to whether, generally speaking, air transportation is or is not relatively price elastic. There is ample evidence that the introduction of deeply discounted fares by the low cost carriers can be very price elastic, although, each type of traveler has its own price characteristics.
Firstly, I would like to take about the customer service and satisfaction at Air & Sea Travel Center. Air & Sea Travel Center has a great amount of repeating client, our royal customer always come back to us because our great customer services. We have suppliers like Hawaiian Airline, Asiana Airline, China Airline, Marriott Hotel and other service suppliers that we could offer to our valued client. We make sure that every special request from our value client should deliver to the service supplier so that our clients could receive what they requested and wished upon their arrivals and departs. The impact of customer service on customer satisfaction is huge, that is one of the reasons why Air & Sea Travel Center has knowledgeable Tour Consultants,
Both, Ryanair and EasyJet, operate within the airline industry which is highly regulated and characterised by intrinsically high exogenous barriers of entry such as cost of technology and access to congested airports. Furthermore, the industry is prone to high costs due to external factors such as weather and safety provisions. Ryanair and EasyJet are both low cost carriers (LCC). Although the airline industry as a whole is predominantly stagnant with a relatively low growth rate, the opportunities within the LCC segment are ample (LCCs accounted for 13.5% growth rate1 over 2013-2014).
Their attitudes are changing according to their preferences as they are able to compare different model of transport more easily. They are more easily able to choose between airlines as their preferences inform their choices, leading passengers to demand low cost from airlines. Competition in the market has given customers choices. This factor does not have negative impact on Ryanair’s as their dominance in the market has been boosted by been keenly aware of their customers’ attitudes amidst the increasing competition and recovering EU economy. Ryanair has made a decision to instil in customers the confidence that despite the economic performance over recent years it can continue to provide low cost fares reinforcing their commitment to provide the cheapest
The aviation industry has undergone big changes in a short period of time. The major change appeared in this industry is the generation of low cost carriers over the past two decades. A low cost airline is an airline that provides the cheapest airfare to different destinations in different parts of the world. The low cost airlines play an important role in the airline industry. It is very useful to the passengers as they are getting air tickets for affordable prices.
During 19991-1992, Modiluft, East West and Damania went bankrupt. Air Sahara and Jet Airways survived along with government own Indian Airlines because they had the capability to bear losses. Globalization and privatization had a major impact on aviation industry. Indian aviation industry was deregulated by the government in 1990s. As a result now 14 airlines are operating today in Indian sky. Now, collaboration with international organization and foreign direct investment are welcome to improve infrastructure and technology. Today people who can not afford high prices of Full Service Carriers (FSC) can travel by Low Cost Carriers (LCC) or budget airlines. Air Deccan was India’s first LCC started in 2003. It flies to several metro and non-metro destinations. All airlines have three major fixed costs i.e. fuel costs, financing or aircraft lease and labour cost. But LCC costs are 10 to 15 per cent lower than FSC. This is because of three reasons. Firstly, saving on distribution cost as passengers book tickets on the internet. Secondly, no frills are offered on board. Thirdly, to accommodate additional seats, catering and cabin crew space in these aircraft has been used. So these aircraft have 40 seats more than the FSC.
Today’s air traveler is like any other consumer looking for value for money. Disposable incomes are on the rise and the consumer is willing to spend more for quality and brands. Air travel is no more about transporting passengers. It is more about the flying experience. People like travelling in planes. ‘Kingfisher airlines’ has a very good social image. Being a five star airlines, customers want to travel with Kingfisher. Also, the brand charges a premium price that is why only upper Socio Economic Class people prefer Kingfisher airlines. The lifestyle of the people is improving. Luxury is becoming necessary. They are ready to pay more for luxury services. Kingfisher has a strong advantage here. So, we can conclude that sociological conditions are favouring Kingfisher airlines.
After originating in 1985, and flying its first two aircrafts from Dubai to Karachi on the 25th of October, Emirates Airlines soon began transporting more and more passengers to new destinations becoming one of the fastest growing airlines in the world with revenues skyrocketing year after year. Although it is fully owned by the government, Emirates has grown in scale and status not by being protected by the government, but through competition, which is what helps maintain its identity (The emirates story, n.d). The aim of this project is to conduct a marketing audit of Emirates Airlines by assessing its performance in the UAE market and providing recommendations. This assignment is divided into 10 main parts: the environmental context analysis,
Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...
Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides.
Shuk-Ching Poon, T. and Waring, P. 2010. The lowest of low-cost carriers: the case of AirAsia. The International Journal of Human Resource Management, 21 (2), pp. 197--213.