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Strategic Development: Garuda Indonesia First Class Service

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Presentation for Garuda Indonesia Management Trainee 2013

Published in: Travel, Business
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Strategic Development: Garuda Indonesia First Class Service

  1. 1. STRATEGIC DEVELOPMENT GARUDA INDONESIA FIRST CLASS SERVICE Presented by: Sindy Nur Fitri
  2. 2. Presentation Flows EXTERNAL ANALYSIS OPPORTUNITIES THREAT STRATEGY Defining Issue INTERNAL ANALYSIS STRENGTH WEAKNESS
  3. 3. GA First Class: Status Quo • When: 9 July 2013 • Route(s): Jakarta – Jeddah vv and Sydney – Jakarta – London (prospective route) • Seat(s): 8 passengers on B777-300ER fleet • Fare: USD 8,000 • Load factor: 25% • Seat revenue: for every 10% load -> 30% total revenue • Services: exclusive booking line, immigration on board, exclusive shuttle, PA in airport
  4. 4. Weaknesses • High cost to maintain exclusive service for first class cabin • Low load factor which impact to seat revenue • Current service excellence hasn’t get any award recognition which impact to branding.
  5. 5. Premium Traveler Trends • International market: passenger travelling with premium class increase 2% this year (IATA, May 2013) • The world’s high net worth individuals are increasing in number. US, Japan and Germany are home to over half the total, but China, Brazil and India are increasing their share. (World Travel Market London, Nov 2012)
  6. 6. Competing with Competitors • Etihad Airways has been holding service excellence recognition for their first class cabin. (Skytrax Award 2013) • ANA and SQ is the main competitor in Asia-Pacific market for this segment. (Skytrax Award 2013)
  7. 7. Key Points • • • • • • Finding the right customer Finding favorite destination of the high-end customer Increase high level of comfort and exclusivity service both in-flight and ground (ex: exclusive wine and dine experience with celebrity chef or sommelier, exclusive lounge and airport hotel) Luxurious brand engagement for gaining high-end customer loyalty (ex: branded amenities, high-end magazine) Maximize impact of airline alliance, exclusive car rent, and hotel chain alliance for one-stop exclusive service (ex: one stop booking service from home pick up to airport, accommodation, vice versa) Partnership with prospective company to gain customer.
  8. 8. Emerging Market: China • • • • • Chinese consumers are driving growth in luxury goods sales worldwide, with travel an essential component of a luxury lifestyle. (World Travel Market London, Nov 2012) On average, wealthy Chinese take 3 international trips a year, with 33% of billionaires taking more than five annual international trips. (World Travel Market London, Nov 2012) Significant increasing of tourists from China to Indonesia in the amount of 22% in 2012. (Liputan6.com, Nov 2013) Chinese airlines/competitors (China Southern, Cathay, China Airlines) don’t focus on first class service -> potential market. Prospective route(s): Jakarta – Shanghai vv or Bali – Beijing vv
  9. 9. Thank You

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