Passenger Experience for Airlines<br />Evaluating experience drivers for Airline passengers<br />Disclaimer: All the conte...
Contents<br />Current Challenges facing Airline industry<br />Competitive Strategies adopted by Airlines<br />Airline Pass...
Current Challenges<br />The airline industry faces a myriad of challenges, both external and internal which pose unique is...
Competitive Strategies adopted by Airlines<br />All the major players in the airline industry, full service or low-cost, s...
Capacity Optimization (E.g. Increasing Load Factors by driving down capacity)
Employee Layoffs / Pay cuts
Network Optimization (E.g. Hub & Spoke Model)</li></ul>Increased EBITDA<br />Higher Load factors / fleet efficiency<br />R...
Revenue Management
Diversifying Income Streams
Discounts & Promotions
Services Offered</li></ul>Increased passenger share<br />Top line revenue<br />Increased complexity in pricing<br />Erodin...
Customer Experience Management
Brand Creation and Brand Loyalty
Targeted Value Proposition</li></ul>Increased passenger share<br />Increased revenue & market share<br />Improved brand an...
The Airline passenger Lifecycle<br />Passenger Value Drivers<br />1.1 Discover Flight Information & Routes<br />3.1 Flight...
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Measuring Passenger Experience for Airlines

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  • it help me a lot, thanks
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  • ' Excellent Najmuddin. I work at FAO airport (Portugal), and as I'm looking for the airline perspective trends your presentation is very useful.'

    Helder Faria de Lemos
    F.A.O, Portugal
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  • 'Nice presentation Naj. Could I share it with the LinkedIn group of the Harvard - IATA Leareship and Management Diploma Program? There are students taking our distance learning Airline Customer Service and Airline Marketing courses which are combined with Harvard's ManageMentor, that I'm sure they will find it interesting.'

    Constantine (Dino) Hatzigeorgiou,
    IATA, Canada
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  • 'Really excellent work, today airlines understand customer needs and trying to facilitate all customers touch point for better and innovative customer experiences. IATA StB programe also started to simplyfing Airlines business processes'

    Manoj Srivastava,
    IBM, India
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  • 'hi Najmuddin, good ppt. Airlines are indeed refocusing back on the customer and their travel experience. In a recent IATA seminar, airlines C levels all agreed that the only way to grow revenue is to focus on customer experience- personalizing every touch point. This is also one of our core tenet in our passenger service solutions for airlines.'

    Jonathan Tong,
    Sabre Airline Solutions,
    Singapore
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Measuring Passenger Experience for Airlines

  1. 1. Passenger Experience for Airlines<br />Evaluating experience drivers for Airline passengers<br />Disclaimer: All the contents of this document are solely the views of the author and have been sourced from publicly available sources only. No part of this document has been copied/reproduced in violation of IP or Copyright laws<br />
  2. 2. Contents<br />Current Challenges facing Airline industry<br />Competitive Strategies adopted by Airlines<br />Airline Passenger Lifecycle framework<br />Passenger Experience dimensions<br />Select Global leading practices<br />
  3. 3. Current Challenges<br />The airline industry faces a myriad of challenges, both external and internal which pose unique issues impacting the overall industry profitability<br />External Challenges<br />Internal Challenges<br />
  4. 4. Competitive Strategies adopted by Airlines<br />All the major players in the airline industry, full service or low-cost, strive to strike a balance between the following strategies in order to gain competitive advantage and increase market share…<br /><ul><li>Reduced Fleet Types & Upgrades
  5. 5. Capacity Optimization (E.g. Increasing Load Factors by driving down capacity)
  6. 6. Employee Layoffs / Pay cuts
  7. 7. Network Optimization (E.g. Hub & Spoke Model)</li></ul>Increased EBITDA<br />Higher Load factors / fleet efficiency<br />Reduced market share<br />Fewer destinations<br />Labor conflicts & negative PR<br />Cost Leadership<br /><ul><li>Dynamic Pricing / Fare Management
  8. 8. Revenue Management
  9. 9. Diversifying Income Streams
  10. 10. Discounts & Promotions
  11. 11. Services Offered</li></ul>Increased passenger share<br />Top line revenue<br />Increased complexity in pricing<br />Eroding profitability<br />Mismatch in meeting demands across all segments (low & high revenue seg.)<br />Price Leadership<br /><ul><li>Customer focused Loyalty Programs (E.g. Frequent Flyer)
  12. 12. Customer Experience Management
  13. 13. Brand Creation and Brand Loyalty
  14. 14. Targeted Value Proposition</li></ul>Increased passenger share<br />Increased revenue & market share<br />Improved brand and value creation<br />Customer loyalty adding to CLV*<br />Sustained competitive advantage<br />Customer Leadership<br />* CLV – Customer Lifetime Value<br />
  15. 15. The Airline passenger Lifecycle<br />Passenger Value Drivers<br />1.1 Discover Flight Information & Routes<br />3.1 Flight Punctuality<br />4.1 Landing & Taxiing to Terminal<br />2.1 Arriving at Airport<br />3.1 On-Time Performance<br />1.2 Check for Price & Promotions<br />3.2 Cabin Crew<br />4.2 Announcements<br />2.2 Check – In Process<br />3.2 Cabin Crew<br />1.3 Ease of Booking / Manage changes<br />3.3 Cabin Ambience<br />4.3 Baggage Claim<br />2.3 Lounge Facilities<br />3.3 Cabin Ambience<br />1.4 Customer Service<br />3.4 Safety Arrangements<br />4.4 Lost Baggage Management<br />2.4 Boarding<br />3.5 In-Flight Entertainment & Meals<br />4.5 Cab/Hotel Services<br />1.5 Allied Services (Frequent Flyer programs)<br />2.5 Flight Delays / Missed Flights<br />Self Service Channels<br />Airline Website<br />Travel Portals<br />Check – In Kiosks<br />Safety Manuals<br />In Flight Entertainment<br />Airline Website<br />Mobile Phone<br />Social Media<br />Mobile Phone<br />Social Media<br />Assisted Channels<br />Airline CC<br />Travel Portal CC<br />Airline CC<br />Social Media<br />Email<br />Social Media<br />Physical Channel<br />Travel Agents<br />Airline Offices<br />Ground Staff<br />Cabin Crew<br />Ground Staff<br />Cabin Crew<br />Value Creation<br />Brand Creation / Recognition<br />
  16. 16. Passenger Experience Dimensions – Reservation Phase<br />Integrated Multi – Channel Experience delivery<br />1.1 Discover Flight Information & Routes<br />1.2 Check for Price & Promotions<br />1.3 Ease of Booking / Manage changes<br />1.4. Customer Service<br />1.5 Allied Services (Frequent Flyer programs)<br />
  17. 17. Passenger Experience Dimensions – Departure Phase<br />Integrated Multi – Channel Experience delivery<br />2.1 Arriving at Airport<br />2.2 Check–In process<br />2.3 Lounge facilities<br />2.4 Boarding<br />2.5 Flight Delays / Missed Flights<br />
  18. 18. Passenger Experience Dimensions – In-Flight Phase<br />On-Time Performance<br />Integrated Multi – Channel Experience delivery<br />3.2 Cabin Crew<br />3.3 Cabin Ambience<br />3.4 Safety Arrangements<br />3.5 In-Flight Entertainment & meal options<br />
  19. 19. Passenger Experience Dimensions – Arrival Phase<br />4.1 Landing & Taxiing to Terminal<br />Integrated Multi – Channel Experience delivery<br />4.2 In flight Announcement<br />4.3 Baggage Claim<br />4.4 Lost Baggage Management<br />4.5 Cab/Hotel Services<br />
  20. 20. Select Global Leading practices (1/5)Airlines adopting Social Media for Ticket reservations<br />Malaysia Airlines has launched MHbuddy, a service which allows any of the more than 500 million people who use Facebook to not only book a flight with the airline, but to also integrate trip details into their social graph, identifying friends who might be sharing flights, or who will be at their destination.<br />“Our passengers are spending more and more time using social networks and Malaysia Airlines is one of the most active airlines on social media including Facebook and Twitter. <br />With MHbuddy we are pleased to provide our fans on social media an easy way to book a ticket without having to leave Facebook. In doing so, we have also opened another distribution channel for ticket sales,” <br />– Dr. Amin Khan, Executive Vice President, Commercial Strategy, Malaysia Airlines.<br />
  21. 21. Select Global Leading practices (2/5)Using Mobiles as a channel for providing Check-In services<br />Trinity Mobile has just announced a 1,200% increase in the use of mobile boarding passes by airline passengers in the past year. While 2008 saw just 50,000 travelers take advantage of the technology, which works by using a scanner to read the QR code directly off the display of your smart phone, in 2009, that number had increased to 600,000.<br />British Airways’ mobile app allows users to view flight information, timetables up to a year in advance, links to the airline’s Twitter page and also incorporates the mobile boarding pass<br />
  22. 22. Select Global Leading practices (3/5)Brand building through Customer Forums<br />Southwest uses the blog to circulate Marketing & Sales messages (e.g “we won the Freddies for the best frequent flyer program”), understand changing market needs and identify areas within the travel experience, that need to be optimized to foster even more loyal customers.<br />Southwest passengers can blog about their experiences, rate southwest and give their fellow Southwest community friends tips and tricks how to make their travel to and at the destination more enjoyable.<br />
  23. 23. Select Global Leading practices (4/5)“Upper Class Wing” by Virgin Airlines<br />Virgin Atlantic has introduced an exclusive “upper class wing” in Heathrow, to optimize the much dreaded Heathrow travel experience for its premium customers<br />
  24. 24. Select Global Leading practices (5/5)Driving innovation in Loyalty programs<br />Jet Airways, one of the leading Full Service Carriers in India, has launched a loyalty program for those passengers who travel extensively in short bursts of time in order to drive business in off-seasons. The airline offers a single fare option to passengers. Under the scheme, a passenger pays a fixed sum for a fixed duration and can then avail a pre-defined number of flights in that duration at a constant price.<br />
  25. 25. Thank You<br />If you have any feedback or suggestions about the contents of this presentation, please send them to – <br />najmuddin24@gmail.com<br />
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