Passengers will attempt to make complaints with airline industry about the flight delayed problems. Normally, they will think that they already paid for the service tax and they actually can acquire good service from airline industry. From customer perspective, the major factor of negative outcome of waiting is waste their time. They do not want to wait when the flight is delayed and they do not know it will take how long time to wait for the flight time (Wong, McCain, and Liu,
The only differences between airlines industry is only in terms of their package deal and offering. For example, if the customer does not intent to take travel agencies they might look for AirAsia services whereby AirAsia provide holiday packages that comprising flight ticket, accommodation and travel guides. But the most crucial thing that customers look forward is the place of destination offered by the airlines which indicates the high bargaining power of purchasers. Apart from that, it can be seen that there are low changes costs as the price offered does not have much distinction and it will lead customer to pick the airlines that suit with their time schedule. Another factor is the amount of consumers that purchase airline tickets came from middle class income.
These flyers generally don’t seek comfort and are unable to differentiate between the different flights available. This market would benefit from the entrance of Velvet Sky as it would provide cheap flights and more options for the flight option for the consumer to choose from. Urgent travellers are individuals that require flights with short notice. The entrance of velvet sky would mean more aircrafts endeavouring to Durban, Johannesburg and Cape Town which means travellers are more likely to obtain flights to their desired destination and time. The price may have very little influence of these consumers; therefore brand reputation plays a minor role.
Ryanair’s competition on the other hand have the opportunity to differentiate themselves by providing a better customer service experience. It is difficult to quantify how many customers have been marginalized by Ryanair over the years and refuse to use the airline. Ryanair’s regional airports can be some distance from the city they are servicing. Their competition on the other hand can have the advantage of flying to more convenient locations. Although it is an advantage to Ryanair to fly the one type of aircraft, Boeing, this causes the airline to have few suppliers.
This is no different for Virgin, whilst they could get away we some quality issues as a low cost airline, when they became a full service airline expectation, quality and the consistency of that quality was paramount. Cost base competition will always be a key influence as it is the cost base that constantly needs to be manage Government policies will also be an influence some more than another’s, especially for Virgin which are in a highly regulated industry based on both government policy around the world but also the legal regulation this conditions along can impact service level from a people management process through to quality and maintenance of aircraft. For Apple this is not much different especially in the labour laws which has people and raw material coming in from many place to them be manufactured and shipped. Both
We also suggest that the company must work on developing its aircraft, renewing them a little bit, and working on clearing some problems such as seat comfort and cleanliness. Ryanair is very popular in europe due to its low prices, however companies should sell value also not price, and should persuade customers a higher price for the company’s brand is justified by the greater value they gain. Low prices is not always the solution, customers also search for added value in order to satisfy their needs and wants, ryanair try to work solely on promoting its low prices and on the other hand the company charges its customer extra fees on any other additional service rather than their ticket such as baggage fees, for example it eliminated its free checked-bag allowance and began charging 3.50$ per piece, infant fees, special assistance fees, priority boarding fees, name change fees, these basic services are offered free of charge by airlines all over the world, however ryanair can justify these fees by offering a very low ticket price compared to other airlines, but the problem is that sometimes customers feel that they are paying the money they saved by purchasing ryanair’s ticket on these fees, so they feel that it is the same as buying from other airlines, but that is not alway the case. An airline such as RYANAIR with all of its success must work harder on improving its SERQUAL model and to increase its Reliability, Responsiveness, Empathy, Assurance, and
The Porter’s Five Forces analysis for the airline industry showed that four forces are very attractive for airline providers although market players face a highly intense competition. High entry barriers prevent potential market newcomers to fight for market share and the risk of being substituted is relatively low due to the time savings and convenience by traveling by planes. The power of buyers and suppliers is also low caused by their number and dependency on airlines. Looking at the results, it can be concluded that the airline industry is a highly profitable and attractive industry for well-established airlines. Discussion Since not all airlines are successful although the paper has just examined the attractiveness and profitability
To get the first mover advantage Emirates seeking for underserved market and with the help of the technology it gives better service for their customers (moving to wide-bodied aircraft with 2 agsile rather than narrow-bodied aircraft with agsile). But today first mover advantage is not sufficient to making profits, because other airlines imitate the Emirates strategies to survive in the industry. It is highly challengeable to
Since Nok Air positions itself as “premium low-cost airline”, the firm is now facing the high cost. The costs include fuel engine price, the premium onboard service, foods and beverages, the cost of offering high weight of baggage, and so on. Also, as Nok Air has to hedge fuel engine from Thai Airways International Public Company Limited, it mainly drives Nok Air to have the higher cost, and it results in decreasing the profit (“Broken Wing Nok Air,” 2008). However, the firm cannot increase passenger ticket price. Otherwise, it will be inconsistent with Nok Air’s position.
It has affected Emirates positively and negatively. Face to face meetings are not necessary due to the advancement in technology. This reduces customers flying to different countries for this purpose. Furthermore, online ticket booking system has made ticket reservations easy. Hence this affects Emirates in both the ways.