Loyalty Management in the Airline Industry

Bachelor Thesis from the year 2002 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Middlesex University in London (unbekannt), language: English, abstract: 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 FFPS34§2.2.2.1General Considerations34§2.2.2.2Whom to Target: Share of Customer35§2.2.2.3Program Structure37§2.2.3HARMONISATION BETWEEN FREQUENT FLYER PROGRAMS39§2.2.4CONCLUSION FREQUENT FLYER PROGRAMS39§2.3COMPLAINT MANAGEMENT41§2.3.1BACKGROUND INFORMATION41§2.3.2COMPUTER-AIDED COMPLAINT MANAGEMENT42§2.3.3HELP FROM THE INTERNET43§2.3.4STATISTICS COMPLAINT HANDLING43§2.3.5COMPENSATION45§2.3.6CONCLUSION COMPLAINT MANAGEMENT46§2.4CHAPTER CONCLUSION46§3.METHODOLOGY47§3.1SECONDARY RESEARCH47§3.1.1LIBRARIES47§3.1.1.1Local Libraries47§3.1.1.2Interlibrary Loan47§3.1.1.3UK Libraries Plus48§3.1.1.4British Library48§3.1.1.5Online Catalogues48§3.1.2ELECTRONIC DATABASES49§3.1.3NEWSPAPERS AND PERIODICALS50§3.1.4INTERNET50§3.1.5SEARCH TERMS LITERATURE REVIEW51§3.2METHODOLOGY - PRIMARY RESEARCH52§3.2.1DIARIES AND OBSERVATIONS52§3.2.2EXPERT INTERVIEWS53§3.3QUESTIONNAIRE53§3.3.1PURPOSE OF QUESTIONNAIRE53§3...