tickets and at different prices before a flight. This is another area that airline companies focus on as ticket sales are directly related to their operating income and affect customer satisfaction. Delta Airlines is proving to show that they have incorporated these areas and that is why in most recent years have seen record operating
The airline is utilizing big data in various ways such as maximizing revenues through pricing strategy optimization, forecasting maintenance, and improving the passenger’s in-flight experience. Etihad believes that big data will help the company sustain growth in the future. Etihad uses the pricing and revenue management software developed by PROS to add new destinations and grow their connections that best fit the needs of their target group. Etihad also adopted the SITA CrewTablet which will enable the crew to access any operational or passenger data via tablets anytime. Lastly, Etihad is using their loyalty program “House of Brands” to analyze the flying habits of their frequent flyer in order to gain insight that will help in determining the best price and timing to send an upgrade offer in order to boost sales and develop strategic
Airline industry has become an essential part of the economy in both developed and less developed worlds. When the distances involved are far, air transport plays an important role in moving people and products from one place to another, be it domestic or international Oyewole, Sankaran, and Choudhury (2008). Route is one of factor to student preference in selecting airlines industry. The demand of air transportation industry increases continuously due to the growth of economy. Passengers take airplanes more frequently for business or tourism purposes, and many type of products and parts such as mobile phones, semiconductors, and computer parts are transported through airplane for timely deliveries (Ko & Hwang, 2011).
In the same time, our company is moving towards a performance management system as other organization. Hence, I recommend new strategy that call “new world” strategy. Since our company is doing on low-cost airfare and high quality facilities to make passengers satisfy and also increase the popularization of status. Our company also makes available a service which can provide customer to make privilege card at our company in order to collect privilege points to redeem the flight ticket in the following flight booking. While customer needs to get this free privilege card they need to purchase our company airfare RM300 above.
The point of differentiation for IndiGo would be high reliability for on-time performance[Kotler]. 2. Growing competition and risk With introduction of new entrants like AirAsia, there is a growing competition. a) Increasing the frequency of flights b) Expansion Recommendation: (b) Reason and Marketing Objective: Airlines could identify the geographical market which is new
This was initially due to the increase in fuel prices and it was the airlines way of passing on the increases in costs to the customer so that their profits can be maintained. Other operational cost driver examples are the employment of machines to weigh and upgraded security scanners to check the baggage of
Thus, the airline is the convenient transport and service for all the passengers to travel out of their city. To be the pillar of the economy of Hong Kong, providing air transports and allowing to freight are the daily services in Hong Kong, that’s the reason and factors why they can be the winner. Apart from this, the other reason is because of relying upon and contributing by the Hong Kong International Airport (HKIA). Also, the air transportation market has become and facing more challenging; the service quality also has become the consideration of the passengers’ in choosing an airline company, and many airlines have turned to focus on airline service quality to increase their service satisfaction (Studymode,2014). No doubt that to measure the quality is the core concerns of today since the service quality has become the one of marketing condition in the airline industry of competitiveness (Ostrowski et al., 1993).
Another factor is the amount of consumers that purchase airline tickets came from middle class income. Due to individual earning, they will tend to choose airlines that offer cheap and affordable ticket fees compared the one who sell it in expensive and indirectly it will lead to high bargaining power of buyers. Next, nowadays with the advancement of technology and social media make the consumers easily to access the current information regarding the tickets, package, promotion, discounts and others from airlines. They will keep getting the notification and will be alert regarding the airlines. Of course the power of buyer will be
Competitor Reactions: Competition in the airline industry is highly intense; therefore the introduction of Velvet Sky airlines into the industry would likely concern other airlines targeting the same market, the golden triangle. This will influence marketing decisions in existing airlines. Competitors
For domestic airlines, they cannot compete directly with Malaysia Airline, but there are a few international airlines are threatening the development of Malaysia Airline. In particular, Air France is the airline company is expanding routes to South East Asia and are highly service and quality, as well as providing exclusive personalized service at the airport to help passengers comfortable while fly processing. (asie_2015.01-en.pdf). Barging Power of Suppliers (High) Fuel prices are ever increasing affecting the cost so the supplier power is high. The Asian airline industry is very optimistic about the growth potential of the Asian aviation industry so is placing huge aircraft orders thereby increasing the bargaining power of the suppliers again The civil aircraft industry is monopolized by two major aircrafts