Service Delivery in Indian Airline Industry
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International Journal of Applied Research 2019; 5(3): 194-202 ISSN Print: 2394-7500 ISSN Online: 2394-5869 Service delivery in Indian airline industry: A Impact Factor: 5.2 IJAR 2019; 5(3): 194-202 conceptual study www.allresearchjournal.com Received: 11-01-2019 Accepted: 13-02-2019 Shivananda N and Dr. K Ramachandra Shivananda N Research Scholar in Commerce Abstract Dravidian University, Marketing airline products and services has always been highly competitive and requires that rigorous Andhra Pradesh, India strategic planning is put in place for achieving maximum growth and profitability. With the domestic travel becoming more cost effective, the Airline industry is tapping the potential to the maximum to Dr. K Ramachandra penetrate deeper to attain competitive edge. The international travel still needs a buffer from the Research Guide in Commerce marketers for innovation in service, price promotion, brand building and the like. The present study is a Dravidian University, Andhra Pradesh, India conceptual study of the Indian Airline Industry. Keywords: Passengers, travel, innovation Introduction Today competition is not only rife, but growing more intense constantly. However companies need to start paying keen attention to their competitors, they must understand their customers. Airlines are suffering from such competition. They have to believe customers as core concept of their business: customer satisfaction is what guarantees the future of airlines and it is achievable by an adoption between their services and passengers' needs. In another word, service quality is typically defined in terms of consumer satisfaction. Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Airlines are now among the first companies to fully adopt the relationship marketing concept. The world airline industry has gone through a rollercoaster ride for the past few years. Among factors contributing to the situation are, increasing fuel prices, escalating security insurance, rapid deregulation of the industry, as well as natural disaster, ranging from the outbreak of diseases to eruptions of volcanoes that hinder the air travel growth. Customer demands that change with competitive circumstances of modern day, force firms improve themselves for new strategies to differentiate them from their competitors and to acquire competitive advantage. In terms of airline sector; fast changing life styles, intense work periods and desire of award oneself after those hard periods, increasing expectations of people about using their spare time valuable and amusing; support travel and experience activities. Airline pricing is becoming more transparent when the customers are able to obtain prices of air tickets from different sources such as the airline’s website. Information on prices is also shares in blogs and forum. The airline should in addition identify the high demanding period of time for their flight so that they could arrange an attractive schedule by coordinating with the airport authority. Many customers are willing to pay more money to choose flights that suit their time, especially the business travelers who prices sometimes are not their main concern. This allows the airline to earn additional revenue by operating a flight with high demand and charge a higher price. The airline can also offer incentives for returning customers by offering special fares. Additionally, the main objectives of the airline companies are to create customer engagement, brand loyalty, customer service and profitability. To reach these objectives, Correspondence most airline companies assure they must increase their resources allocated to social media Shivananda N channels. The main problem appears as there is no best practice; which integrates all Research Scholar in Commerce Dravidian University, channels in a consistent way, generates internal value and at the same time provides a Andhra Pradesh, India consistent and integrated experience to customers. ~ 194 ~ International Journal of Applied Research “Social media leaders understand and appreciate the opportunities and risks that these tools create. As a result, magnitude of the shift in customer empowerment and the they approach their social media efforts differently. Table 1: A summary of the Most Important Airline Service Quality Aspects Author Year Context Main findings/ the important of airline service quality aspects The study highlighted the motivation factors for airline alliances and categorised internal and external factors that influence airline alliances. The internal factors are Airline alliances Evans [16] 2001 risk sharing, economics scales, scope and learning, access to assets, resources and service quality competencies and shape competition. External factors include the information revolution, economic restructuring and global competition. Service quality in The study found the efficiency of service and friendliness of attendants plays a Tsaur et al 2002 low-cost airlines significant role in customer satisfaction. The study suggested that airline alliances are no longer only concerned about their Weber and Airline alliances 2004 own service standards and policies relating to service failure events but also need to be Sparks [62] service quality mindful of those of their partner airlines. Airline alliances The study found that the government of New Zealand having majority of ownerships Duval [15] 2005 service quality in Air New Zealand have a significant negative influence on New Zealand public. The results highlight five important factors of service quality that reduce Turkish frequent flyers customer: 1. Lack of free tickets and upgrades of the flight class. Service quality in Atalik [4] 2007 2. Behaviour of personnel. full service airlines 3. Card ownership issues (e.g. high miles needed to retain membership). 4. Nature and level of priority services offered within the program. 5. Lack of alliance with other airlines. Pakdil and Service quality in The results show that the responsiveness dimension was the most important to the 2007 Aydin [45] full service airlines customers of Turkish airlines. The key findings show that the differences between US and EU airlines service quality: Service quality in Flights arriving on-time (US 71.63%; EU 77.58%); Flights operating as scheduled Tiernan et al. 2008 full service airlines (US 84.6%; EU 88.68%); Bags delivered without problem (US 83.34%; EU 82.87%). The results from the study confirm that the service quality of EU airlines on these key issues is generally higher than US airlines. Service quality in The study found appearance of employees and onboard facilities had a significant Nadiri et al. [40] 2008 full service airlines impact on customer satisfaction and repurchase intention The results show that airline services such as frequent fly programs, in-flight entertainment and safety performance have a significant direct influence on the Service quality in Lu and Ling [37] 2008 satisfaction of Taiwanese travellers. By comparison, only in-flight entertainment was full service airlines found had a significant direct influence on satisfaction of mainland Chinese passengers. The study found in-flight entertainment, checking-in service, and convenience Service quality in Leong [36] 2008 booking were weaknesses. The study concluded with the suggestion that the low-cost airlines management should allocate more resources to make improvements in these areas. Tsantoulis and Airline alliances The results show that joining a co-brand alliance had no direct effect on individual 2008 Palmer [61] service quality airline service quality. The study found pre-consumption mood did not appear to impact consumer Weber and Airline alliances 2009 evaluations and behaviour. Consumer’s pre-consumption mood (e.g. positive or Spark [63] service quality negative) is related to the service employee behaviour. Service quality in The main results highlight that the most crucial factors of service quality that Nejati et al. [46] 2009 full service influence Iranian customers are: Flight safety, Good appearance of flight crew and airlines Offering 24 hour customer service. Service quality in The study found trust and overall customer satisfaction had a significant effect on Forgas et al. [17] 2010 full service airlines customer loyalty. The results show that interactional and procedural justice both had a significant effect Chang and Service quality in 2010 on recovery satisfaction. The study concluded that recovery satisfaction plays a Chang [10] full service airlines mediating role in the relationship between service recovery and overall satisfaction. Service quality in The results indicated that two dimensions (tangibles and responsiveness) were the Kim and Lee [4] 2011 low-cost airlines most important in determining Korean passenger satisfaction. De Jager et al. The study found timeliness and in-flight services are the most important service 2012 Full service airlines [14] factors for both South African and Italian travellers. Service quality in Nikbin et al. [43] 2012 The study found customer satisfaction had a significant effect on switching intention. full service airlines Service quality in The study found service quality had a significant influence on customer value, airline Yang et al. [68] 2012 low-cost airlines image and behavioural intentions. Wen and Chi Service quality in Procedural and the interactional justice were found had a significant direct influence 2013 [65] full service airlines customer’s positive