Providing service-fuelled flights
With an expanding network of destinations, a menu of services to suit different budgets and high-quality frontline service, budget airlines appear to be closing the gap with their full-service counterparts.
The latest Customer Satisfaction Index of Singapore(CSISG) survey showed that gains in the budget airlines sub-sector increased by 4.88 % points year-on-year. A notable outcome of the budget airlines’ stronger CSISG performance is improved customer loyalty.
Perhaps the biggest reason for the gains is the fact that budget airlines have vastly expanded their network in recent years. As such, travellers today have a wider choice when travelling on business or leisure. For example, Jetstar Asia promises greater access by offering 18 weekly services to popular holiday destinations in Cambodia, Indonesia and China.
Another major draw is the a La carte style of service provided by budget airlines, which allows passengers to choose only products and services they need. Depending on their budgets, customers can choose anything from a bare-bones option to value-added options such as pre-booked meals or more legroom.
These no-frills players have also been innovating. Tiger Airways recently launched an app to help its customers book flights. It also recently implemented “combo-flights” that allow for the simultaneous reservation of two separate, connecting flights. Similarly, Air-Asia has a FLY-THRU programme which offers passengers hassle –free and seamless connection of flight to over 85 destinations
Questions:
Using any of the budget airlines mentioned in the case examples, explain the concept of customer satisfaction by examining customer perceived performance and customer expectations,.
Variability and perishability are two of the distinctive characteristics of services that can greatly affect a company’s marketing and programmes.
i) Analyse the potential impact of variability and perishability on flight services offered by Tiger Airways.
ii) For each of the service characteristics mentioned in (i) discuss 2 possible strategies that Tiger Airways can undertake to better control and manage them.