measuring passenger experience for airlines
TRANSCRIPT
Passenger Experience for Airlines
Evaluating experience drivers for Airline passengers
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
Contents
Current Challenges facing Airline industry
Competitive Strategies adopted by Airlines
Airline Passenger Lifecycle framework
Passenger Experience dimensions
Select Global leading practices
Current Challenges
External Challenges
Internal Challenges
Input Costs
ATF Fuel price fluctuations
Passenger Service Taxes as per local regulations
Airport charges
Demand – Supply mismatch
Cyclical nature of demand (business and leisure)
Difficult to scale capacity in same line as Demand
Sustaining high Passenger Load Factors (PLFs)
Intense Competition
Price pressure from LCC operators putting downward pressure on top-line revenues & market share
Increased choice leading to higher churn
Low brand/experience differentiation
Operational Efficiencies
Fleet management (single type / multi-type, maintenance, turn around times)
Inventory management (Flight equipment reusability, meal forecasting, ordering, spares)
On Time Performance and Passenger Load Factors
Managing customer expectations
Customers likely to switch based on price
Customers demand better and more “tailored” experiences
Customers prefer peer recommendations
The airline industry faces a myriad of challenges, both external and internal which pose unique issues impacting the overall industry profitability
Competitive Strategies adopted by Airlines
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…
Cost Leadership
• Reduced Fleet Types & Upgrades • Capacity Optimization (E.g. Increasing Load
Factors by driving down capacity)• Employee Layoffs / Pay cuts• Network Optimization (E.g. Hub & Spoke
Model)
Increased EBITDA
Higher Load factors / fleet
efficiency
Reduced market share
Fewer destinations
Labor conflicts & negative PR
Price Leadership
• Dynamic Pricing / Fare Management• Revenue Management• Diversifying Income Streams• Discounts & Promotions• Services Offered
Increased passenger share
Top line revenue
Increased complexity in pricing
Eroding profitability
Mismatch in meeting demands across all segments (low & high revenue seg.)
Customer Leadership
• Customer focused Loyalty Programs (E.g.
Frequent Flyer)• Customer Experience Management• Brand Creation and Brand Loyalty• Targeted Value Proposition
Increased passenger share
Increased revenue & market share
Improved brand and value creation
Customer loyalty adding to CLV*
Sustained competitive advantage
* CLV – Customer Lifetime Value
Self
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The Airline passenger Lifecycle1. Reservation 2. Departure 3. In-Flight 4. Arrival
1.1 Discover Flight Information & Routes
1.2 Check for Price & Promotions
1.3 Ease of Booking / Manage changes
1.4 Customer Service
3.2 Cabin Crew
3.3 Cabin Ambience
3.5 In-Flight Entertainment & Meals
3.1 Flight Punctuality
3.4 Safety Arrangements
4.1 Landing & Taxiing to Terminal
4.2 Announcements
4.3 Baggage Claim
4.4 Lost Baggage Management
4.5 Cab/Hotel Services1.5 Allied Services (Frequent Flyer programs)
2.1 Arriving at Airport
2.2 Check – In Process
2.3 Lounge Facilities
2.4 Boarding
2.5 Flight Delays / Missed Flights
Airline Website
Travel Portals
Check – In Kiosks
Safety Manuals
In Flight Entertainment
Travel Agents
Airline CC
Travel Portal
CC
Mobile Phone
Airline Offices
Ground Staff
Cabin Crew
Passen
ger
Valu
e D
rivers
Value Creation
Brand Creation / Recognition
3.2 Cabin Crew
3.3 Cabin Ambience
3.1 On-Time Performance
Ground Staff
Cabin Crew
Social Media
Social Media
Airline Website
Mobile Phone
Social Media
Airline CC
Social Media
Passenger Experience Dimensions – Reservation Phase
1. Reservation 2. Departure 3. In-Flight 4. Arrival
1.1 Discover Flight Information & Routes
1.2 Check for Price & Promotions
1.3 Ease of Booking / Manage changes
1.4. Customer Service
1.5 Allied Services (Frequent Flyer programs)
Experience Dimension Value Drivers
Connectivity Flight Schedule Information Peer Reviews Brand Awareness
Shortest route (minimum stops) to
destination Flight times in line with travel plans Make informed choice Social status
Price Competitiveness Deals & Promotions Alliances
Lowest affordable fare to destination Value for money
Booking Process Payment Options Ease of Change / Cancellations
Convenience Reduced effort Speed of transactions
Availability Ease of Access Issue Handling Staff Behavior
Hassle free communication Ability to track interactions across channels Quality of service Speed of issue resolution
Loyalty Programs Multi Vendor Tie-Ups Referral Incentives
Value for money Options for redeeming miles “One-stop shop” for the entire trip
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Passenger Experience Dimensions – Departure Phase
1. Reservation 2. Departure 3. In-Flight 4. Arrival
2.1 Arriving at Airport
2.2 Check–In process
2.3 Lounge facilities
2.4 Boarding
2.5 Flight Delays / Missed Flights
Experience Dimension Value Drivers
Pickup services Ground Staff Flight/Terminal information
Reduced effort Speed Ease of navigation to reach the right
terminal
Check-in options Queue wait times Baggage handling Boarding pass details
Convenience Speed Reduced effort Ground staff assistance
Lounge availability Lounge accessibility Lounge interiors Services available
Comfort Social status Quality of service Ground staff assistance
On-boarding process Terminal gate to aircraft transit
Speed Means of transport to the aircraft Ground staff assistance
Flight detail notifications Flight alternatives Ground staff behavior Managing passenger expectations
Flight times in line with travel plans Issue resolution Ground staff assistance
Inte
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Passenger Experience Dimensions – In-Flight Phase
1. Reservation 2. Departure 3. In-Flight 4. Arrival
3.5 In-Flight Entertainment & meal options
3.4 Safety Arrangements
3.2 Cabin Crew
3.3 Cabin Ambience
On-Time Performance
Experience Dimension Value Drivers
Flight departure time Flight arrival at destination
Flight Times in line with Travel Plans Minimum Delays in Travel Times Cabin Crew/Ground staff Assistance
Availability Cabin Crew behavior Willingness to assist Crew grooming
Quality of service Branded experience Crew able to meet passenger needs
Interiors Seating Temperature control Cleanliness
Comfort Value for money Hygiene
Safety demonstrations Safety equipment Safety instructions
Safety
Availability Quality Variety of content / meals In-flight shopping
Entertainment Branded experience Flight information Quality of product / service
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Passenger Experience Dimensions – Arrival Phase
1. Reservation 2. Departure 3. In-Flight 4. Arrival
4.1 Landing & Taxiing to Terminal
4.2 In flight Announcement
4.3 Baggage Claim
4.4 Lost Baggage Management
4.5 Cab/Hotel Services
Experience Dimension Value Drivers
Landing Transit options to reach terminal Disembarking process
Comfort Minimum delay in reaching terminal Cabin Crew assistance
Information Language of communication
Information updates Cabin Crew assistance Language translation
Baggage carousel information Wait times Ground staff Baggage condition
Ease of access Speed Ground staff assistance
Enquiries / Complaints Availability & accessibility of customer
service Ground staff behavior Claims
Hassle free communication Ability to track interactions across
channels Quality of service Speed of issue resolution
Cab services for destination drop Tie-ups with hotels for accommodation Onward journey tie-ups
Convenience Comfort Branded experience Hassle free transfer for On-ward journey
Inte
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Select Global Leading practices (1/5)Airlines adopting Social Media for Ticket reservations
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.
“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.
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,”
– Dr. Amin Khan, Executive Vice President,
Commercial Strategy, Malaysia Airlines.
Select Global Leading practices (2/5)Using Mobiles as a channel for providing Check-In services
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
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.
Select Global Leading practices (3/5)Brand building through Customer Forums
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.
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.
Select Global Leading practices (4/5)“Upper Class Wing” by Virgin Airlines
Virgin Atlantic has
introduced an
exclusive “upper class
wing” in Heathrow, to
optimize the much
dreaded Heathrow
travel experience for
its premium
customers
Select Global Leading practices (5/5)Driving innovation in Loyalty programs
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.
Thank You
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