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Loyalty Management in the Airline Industry

2002-05-29 Business & Economics
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Release : 2002-05-29
Genre : Business & Economics
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Book Rating : 640/5 ( reviews)

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Book Synopsis Loyalty Management in the Airline Industry by : Ben Beiske

Download or read book Loyalty Management in the Airline Industry written by Ben Beiske. This book was released on 2002-05-29. Available in PDF, EPUB and Kindle. Book excerpt: 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 1.4.1.1Social13 1.4.1.2Technological14 1.4.1.3Economical14 1.4.1.4Environmental14 1.4.1.5Political15 1.4.1.6Legal15 1.4.1.7Ethical15 1.4.2CONSOLIDATION IN PRACTICE: BRITISH AIRWAYS16 1.4.2.1British Airways and KLM16 1.4.2.2British Airways and American Airlines18 1.4.3THE CURRENT AIRLINE SITUATION19 2.LITERATURE REVIEW22 2.1CUSTOMER SERVICE22 2.1.1BACKGROUND INFORMATION23 2.1.1.1Singapore Airlines23 2.1.2REVELATION OF DISSATISFACTION24 2.1.3EMPLOYEES25 2.1.4COMMUNICATION25 2.1.5THE CUSTOMER26 2.1.5.1Customer Requirements26 2.1.6SERVICE QUALITY27 2.1.6.1Quality and Retaining Customers28 2.1.7ORIENTATION OF COMPANY29 2.1.8CONCLUSION CUSTOMER SERVICE29 2.2FREQUENT FLYER PROGRAMS31 2.2.1BACKGROUND INFORMATION31 2.2.1.1Statistics Frequent Flyer Programs32 2.2.2CRITICAL SUCCESS FACTORS [...]

Customer Relationship Management in the Airline Industry

2011-12 Business & Economics
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Release : 2011-12
Genre : Business & Economics
Kind : eBook
Book Rating : 481/5 ( reviews)

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Book Synopsis Customer Relationship Management in the Airline Industry by : Volker Schmid

Download or read book Customer Relationship Management in the Airline Industry written by Volker Schmid. This book was released on 2011-12. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2005 in the subject Business economics - Customer Relationship Management, CRM, grade: A, University of Teesside (Teesside Business School), course: Customer Relationship Management, 22 entries in the bibliography, language: English, abstract: To analyse the consumer behaviour presents an important criteria to be successful in the airline industry. This text gives answers to most relevant questions regarding consumer behaviour, using Air Lingus as an example. Finally, it includes a plan to implement a relationship marketing programme.

Strategy in Airline Loyalty

2017-10-09 Business & Economics
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Release : 2017-10-09
Genre : Business & Economics
Kind : eBook
Book Rating : 000/5 ( reviews)

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Book Synopsis Strategy in Airline Loyalty by : Evert R. de Boer

Download or read book Strategy in Airline Loyalty written by Evert R. de Boer. This book was released on 2017-10-09. Available in PDF, EPUB and Kindle. Book excerpt: This book offers the first comprehensive exploration of frequent flyer programs. By combining academic research with extensive insights and examples from the actual business world, it explores the key drivers and strategies of airline loyalty marketing today in an unprecedented manner. Strategy in Airline Loyalty also explores how the programs have evolved over time from marketing programs to financial powerhouses, identifying both the catalysts for change, as well as the strategic options and underlying trade-offs available to airlines. Covering diverse angles ranging from behavioral economics, to accounting, and structural design, the book reviews every core aspect of frequent flyer programs and offers extensive frameworks and definitions. The book provides a useful and complete reference for researchers, and helps those interested in frequent flyer programs to develop a better understanding of their past, present and future.

Customer Loyalty in the Airline Industry

2005
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Release : 2005
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Book Synopsis Customer Loyalty in the Airline Industry by : Roberta Minazzi

Download or read book Customer Loyalty in the Airline Industry written by Roberta Minazzi. This book was released on 2005. Available in PDF, EPUB and Kindle. Book excerpt: The aim of this paper is to study loyalty programs in the airline industry. In particular, FFP's are analysed. FFP's have the objective to reward customers that travel with the airline for more than 10-12 times every year. They collect miles that can use to obtain allowances and other advantages. Are FFP's only promotional tools based on price competition or are they relationship marketing strategies that want to create long-term customer loyalty? This paper tries to answer this question analysing objectives, costs, risks and effectiveness of FFP's. Finally FFP's of major airlines are analysed. Findings reveal a main trend that is the creation of international networks based, not only on partnership among airlines, but also on alliances with operators of other industries such as banks, mobile operators, credit cards, hotels, etc. Existing international alliances are Sky Team, Oneworld and Star Alliance. This concentration trend entail the integration of loyalty programs towards the creation of "extended" FFP's, which include programs of each operator of the alliance.

The Impacts of Airline Loyalty Programs on Revenue Management Optimization

2017
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Release : 2017
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Book Synopsis The Impacts of Airline Loyalty Programs on Revenue Management Optimization by : Juan Pablo García Saavedra

Download or read book The Impacts of Airline Loyalty Programs on Revenue Management Optimization written by Juan Pablo García Saavedra. This book was released on 2017. Available in PDF, EPUB and Kindle. Book excerpt: Loyalty Programs have evolved over years turning into unique business units, responsible for producing an important source of revenue for airlines. However, despite their contribution to the business, the lack of knowledge on the impacts of giving away rewards to loyal customers may lead to suboptimal decisions, harming bottom line results. The main objective of this thesis is to develop a methodology to model and measure the net revenue impacts of award passengers as they integrate to current airline revenue management optimization practices. By modeling an award demand using the Passenger Origin Destination Simulation tool, it was possible to understand the impacts on airlines' main metrics compared to an environment without these passengers, and to define a baseline scenario based on current airline industry data, to analyze the impacts of different RM strategies. A methodology was proposed to identify and quantify three main effects seen when allowing award passengers into the current RM optimization. The Award Revenue accounts for the economic benefit for the airline of each award passenger. Displaced Revenue is the ticket revenue loss due to the displacement of paid passengers. And, the Sell Up effect measures the change in average paid fare as a result of the introduction of this new demand. Differences between the real economic benefit to the airline of award passengers and the value that the RM optimizer uses for assigning their availability were introduced to measure the net award revenue impact. Results showed that at award valuations higher than the lowest fare, airlines are able to increase their total revenues due to higher award revenue and lower displaced ticket revenue. This outcome was consistent for all RM Schemes and demand levels examined.

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