Loyalty Management in the Airline Industry

Loyalty Management in the Airline Industry

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Inhaltsangabe:Abstract: This report will demonstrate the importance of Loyalty Management in the competitive environment of the airline industry and will show that a successful approach to Loyalty Management consists of three different, interlinked aspects. These three pillars are Customer Service, Frequent Flyer Programs, and Complaint Management; their interdependence will be analysed in depth, with special attention given to the perceived importance of Frequent Flyer Programs. Findings from a detailed literature review and a survey show that customers do indeed perceive these issues as vital with regards to their loyalty towards a particular airline. It was found that Customer Service can be regarded as the foundation for Loyalty Management; it can help an airline to gain competitive advantage by setting it apart from its competitors. Frequent Flyer Programs, if implemented and run properly, can provide the customer with added value. As such, they compliment Customer Service and can help to increase overall loyalty. Additionally, Complaint Management was found to be gaining importance among airlines. The number of complaints was shown to be rising gradually, stressing the growing significance of efficient Complaint Management and its strong after-effect on customer loyalty. Inhaltsverzeichnis:Table of Contents: 1.INTRODUCTION6 1.1AIM AND OBJECTIVES OF THE REPORT7 1.2TERMINOLOGY9 1.3BACKGROUND INFORMATION: LOYALTY MANAGEMENT9 1.3.1DEFINITIONS9 1.3.2TRADITIONAL MARKETING AND LOYALTY MANAGEMENT10 1.3.3IMPORTANCE OF LOYALTY MANAGEMENT12 1.4CHARACTERISTICS OF THE AIRLINE MARKET13 1.4.1AIRLINE INDUSTRY ANALYSIS - STEEPLE13 1.4.2CONSOLIDATION IN PRACTICE: BRITISH AIRWAYS16 Airways and KLM16 Airways and American Airlines18 1.4.3THE CURRENT AIRLINE SITUATION19 2.LITERATURE REVIEW22 2.1CUSTOMER SERVICE22 2.1.1BACKGROUND INFORMATION23 Airlines23 2.1.2REVELATION OF DISSATISFACTION24 2.1.3EMPLOYEES25 2.1.4COMMUNICATION25 2.1.5THE CUSTOMER26 Requirements26 2.1.6SERVICE QUALITY27 and Retaining Customers28 2.1.7ORIENTATION OF COMPANY29 2.1.8CONCLUSION CUSTOMER SERVICE29 2.2FREQUENT FLYER PROGRAMS31 2.2.1BACKGROUND INFORMATION31 Frequent Flyer Programs32 2.2.2CRITICAL SUCCESS FACTORS FFPS34 Considerations34 to Target: Share of Customer35 Structure37 2.2.3HARMONISATION BETWEEN FREQUENT FLYER PROGRAMS39 2.2.4CONCLUSION FREQUENT FLYER PROGRAMS39 2.3COMPLAINT MANAGEMENT41 2.3.1BACKGROUND INFORMATION41 2.3.2COMPUTER-AIDED COMPLAINT MANAGEMENT42 2.3.3HELP FROM THE INTERNET43 2.3.4STATISTICS COMPLAINT HANDLING43 2.3.5COMPENSATION45 2.3.6CONCLUSION COMPLAINT MANAGEMENT46 2.4CHAPTER CONCLUSION46 3.METHODOLOGY47 3.1SECONDARY RESEARCH47 3.1.1LIBRARIES47 Libraries47 Loan47 Libraries Plus48 Library48 Catalogues48 3.1.2ELECTRONIC DATABASES49 3.1.3NEWSPAPERS AND PERIODICALS50 3.1.4INTERNET50 3.1.5SEARCH TERMS LITERATURE REVIEW51 3.2METHODOLOGY - PRIMARY RESEARCH52 3.2.1DIARIES AND OBSERVATIONS52 3.2.2EXPERT INTERVIEWS53 3.3QUESTIONNAIRE53 3.3.1PURPOSE OF QUESTIONNAIRE53 3.3.2QUESTIONNAIRE DESIGN54 3.4CHAPTER CONCLUSION57 4.FINDINGS AND INTERPRETATION58 4.1DISTRIBUTION AND RESPONSE RATE58 4.2DEMOGRAPHICS OF RESPONDENTS59 4.3QUESTION ONE - NUMBER OF FLIGHTS IN LAST TWELVE MONTHS60 4.4QUESTION TWO - FACTORS INFLUENCING PURCHASE DECISIONS61 4.5QUESTION THREE - LOYALTY TO FAVOURITE AIRLINE62 4.6QUESTION FOUR - MAIN REASON FOR LOYALTY TO FAVOURITEAIRLINE63 4.7QUESTION FIVE - FREQUENT FLYER PROGRAM PARTICIPATION64 4.8QUESTION SIX - MAIN REASON FOR PARTICIPATION IN FFP66 4.9QUESTION SEVEN - COMMUNICATION WITH FFP67 4.10QUESTION EIGHT - MEASURE OF USEFULNESS OF FFP68 4.11QUESTION NINE - INFLUENCE OF FFP ON AIRLINE CHOICE69 4.12QUESTION TEN - PERCEPTION OF CUSTOMER SERVICE70 4.13QUESTION ELEVEN - PERCEPTION OF OVERALL QUALITY71 4.14QUESTION TWELVE - IMPORTANCE OF FLIGHT TIMES ANDROUTINGS72 4.15QUESTION THIRTEEN - ATTITUDE TOWARDS LODGINGCOMPLAINTS73 4.16QUESTION FOURTEEN - SATISFACTION WITH RESOLVEDCOMPLAINTS74 4.17QUESTION FIFTEEN - COMPLAINT RESOLUTION AND INFLUENCEON LOYALTY75 4.18QUESTION SIXTEEN - COMPLAINT RESOLUTION AND FUTUREBEHAVIOUR76 4.19CHAPTER CONCLUSION77 5.CONCLUSION79 5.1CONCLUSION OF CHAPTER FINDINGS79 5.2CONCLUSION AIM AND OBJECTIVES81 5.3OVERALL CONCLUSION83 GLOSSARY OF TERMS85 LIST OF REFERENCES87 APPENDICES92 APPENDIX I:COMPARISON OF AIRLINE KEY FIGURES 200192 APPENDIX II:FREQUENT FLYER DEVELOPMENT TIMELINE93 APPENDIX III:FREQUENT FLYER PROGRAMS IN NUMBERS103 APPENDIX IV:COPY OF QUESTIONNAIRE106The aim of this report is to demonstrate to the airline industry that a successful approach to Loyalty Management consists of variety of different aspects in regards to the customer. The basis for a prosperous airline is seen to be Service Quality.

Title:Loyalty Management in the Airline Industry
Author:Ben Beiske
Publisher:diplom.de - 2002-05-28


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