A case study on importance of service quality in the airlines industry impact consumer behavior
Module name / number: Consumer Behavior Title of article: A case study on importance of service quality in the airlines industry impact consumer behavior
Abstract:
Competition in airlines industry is getting competitive nowadays. With the uncertainty global economy environment, high operations cost and the rival of low cost airlines (LCCs). Full service airlines (FSCs) have to work out its unique strategy to survival in the market in order to maintain the market share and profit margin. This paper analysis service orientated airlines in different FSCs where successfully influence its customers behavior and improve customer satisfaction by focusing on its service strategic better than LCCs. In the meanwhile, it also highlights the impact of FSCs use service marketing to maintain and establishing long-term relationship with customers.
Keywords: Consumer Behavior, Service Marketing, Airlines industry, Customer Satisfaction
Introduction:
Geneva - The International Air Transport Association (IATA) announced an upward revision to its industry financial outlook. For 2012 airlines are expected to return a profit of $6.7 billion (up from the $4.1 billion forecast in October 2011). This is expected to improve slightly to $8.4 billion in 2013 (marginally better than the $7.5 billion forecast in October). Industry net post-tax margin, however, will remain weak at 1.0% in 2012 and 1.3% in 2013. (IATA, 2013)
The oil prices still remain high and it is above $100 per barrel. Fuel now accounts for over 30% of average operating costs. A decade ago, it was 13%. A further price spike could easily push the industry into losses. (IATA, Annual report 2012)
The current competition in global airlines industry are getting more and more fierce owing to the factor of increasing fuel prices, escalating security insurance, rapid deregulation of the industry. The high operations cost and difficult environment resulting negative impact to maintain profit margin in service airlines
Abstract:
Competition in airlines industry is getting competitive nowadays. With the uncertainty global economy environment, high operations cost and the rival of low cost airlines (LCCs). Full service airlines (FSCs) have to work out its unique strategy to survival in the market in order to maintain the market share and profit margin. This paper analysis service orientated airlines in different FSCs where successfully influence its customers behavior and improve customer satisfaction by focusing on its service strategic better than LCCs. In the meanwhile, it also highlights the impact of FSCs use service marketing to maintain and establishing long-term relationship with customers.
Keywords: Consumer Behavior, Service Marketing, Airlines industry, Customer Satisfaction
Introduction:
Geneva - The International Air Transport Association (IATA) announced an upward revision to its industry financial outlook. For 2012 airlines are expected to return a profit of $6.7 billion (up from the $4.1 billion forecast in October 2011). This is expected to improve slightly to $8.4 billion in 2013 (marginally better than the $7.5 billion forecast in October). Industry net post-tax margin, however, will remain weak at 1.0% in 2012 and 1.3% in 2013. (IATA, 2013)
The oil prices still remain high and it is above $100 per barrel. Fuel now accounts for over 30% of average operating costs. A decade ago, it was 13%. A further price spike could easily push the industry into losses. (IATA, Annual report 2012)
The current competition in global airlines industry are getting more and more fierce owing to the factor of increasing fuel prices, escalating security insurance, rapid deregulation of the industry. The high operations cost and difficult environment resulting negative impact to maintain profit margin in service airlines