Tuesday, May 5, 2020
Online Reservation in Airline Industry â⬠Free Samples to Students
Question: Discuss about the Online Reservation in Airline Industry. Answer: Introduction Internet has become an integral part of an organisational practice in nowadays. This is so because of several reasons such as the enhancement of customer interaction through the latest and most in use technology. An incrementing use of internet in customers especially in the teenagers and the business persons has produced ample of opportunities to the different industries across the globe to avail the created advantage (Westerlund, Leminen and Rajahonka 2014). On a same note, the different airline companies have now started using the internet to get the available benefits. Customers now can book their tickets on the e-commerce websites with ease. Not only this, they are also entitled to compare the best ticket prices offered by the different airline companies operating in the respective zone (Al-hawari and Mouakket 2012). However, this particular study analyses the factuality of the trend based on the selected articles. The selected article is on the application and the management of e-business model by the Kuwait Airways. The chosen article emphasises on the use of a trusted website. The system works through website plug-ins, which is installed in the travel agent web sites. The system in technology terms is known as Application Programming Interface (API). It acts like an interface to the customers and to the clients to help them avail their tickets (Granados, Gupta and Kauffman 2012). In the ancient time, the use of internet was known to be the asset of the tech savvy guys only. However, there has been a huge transformation since then. Interestingly, teenagers are highly addicted to the use of internet. Business persons are the next group that use internet more frequently. The rising use of internet has probably drawn the interest of airline companies towards the e-commerce platform. The use of e-commerce does not only mean to enhance the business but it also requires to be kept secured from hackers. It is therefore necessary to use a trusted website to reduce the risk to a possible extent (Garvey and Sankaranarayanan 2012). The API covers the following services: Flight status Search directions Flight schedules The new form of booking The article emphasize on the use of separate version of e-business for the clients and for the travel agents in order to ensure the principles of Kuwait Airways for B2B. The advent of e-business model has provided many challenges as well to the different airline companies. Consumer behaviour is the one challenge for its rapidly changing decisions. Online marketing, branding and customer relationship management are some factors that differentiate between the different brands (Shaw 2016). The Kuwait Airways need to stand solid in terms of all the mentioned issues to stay competitive. Evaluation of the article using other articles The article has supported the fact that the e-business model can increase the market shares and the customer loyalty if the airline company provides a website that has a flawless application programming interface (API) to fulfil the requirement of customers. The article has also sensed the urgency to be superior in many regards in order to be competitive and leading in the industry. Some of such factors are customer relationship management, online marketing, consumer behaviour and branding. The author has emphasised on the importance of consumer behaviour, which is one of those factors that defines the competition. The changing perception of customers can anytime hamper the business. They do so because the e-commerce platform offers them varied range of offers from ticket prices to the nature of the journey. They mean everything when they plan for a journey. This is where they unintentionally play with the different brands. In course of doing so, the different brand then suffer the c onsequences. Online marketing according to the author is the other potential factor that distinguish between the different brands operating in the airline industry. The company with better marketing strategy scores better in attracting new customers. The retention is the after process, which the particular company can attain by offering their customers the cheapest air ticket pricing and the other services. The other services include many such as retaining the customers in case of flight cancellation. The better the company has strategies for compensating the losses of flight cancellation the better will be the chances to score in competition. Flight cancellation is indeed very common during the winter times. The bad weather condition leaves the different airline industry with no counter option than just to retain their customers (Xiang, Magnini and Fesenmaier 2015). According to Moreno-Izquierdo, Ramn-Rodrguez and Ribes (2015), customer loyalty is never guaranteed with the use of internet in flight tickets booking. This is because the different airline companies use the power of monopoly to change the pricings at a real time close to the scheduled departure of the flight. Customers have then no option than to accept the pricing. The dominating companies take advantage of their reputation and raise the ticket pricing in real time. This means that the ticket booking on internet may attract the dissatisfaction of customers as it is explained in the above example (Zhang et al. 2014). The author has actually argued the fact given by Al-Fadly (2016) by stating that good website could also fail to provide the ultimate success to the airline companies across the globe. This is because the different airline companies use internet for showing off their monopoly to the customers. Such a monopoly will dissatisfy the customers and will eventually become the reason for losing out of a significant customer base. Additionally, the author has further said that there is a fight in between the different airline companies for offering the cheaper air prices. The low cost airline concept is at high boom. However, this also means that such flights will compromise on quality of service. Customers will not be able to get the free foods when they are into a long journey such as it is with the European low cost airlines. This is fulfilling their demands by saving their money on boarding; however, it is also encouraging them to be desirous for better offers. Such tendency of customers gives rise to several new and cheaper airline companies. Nevertheless, customers will definitely select the one that offers the cheapest air pricing. In doing such, it is never possible that they will remain loyal to one brand (David Mc A 2013). In the opinion of Byambaa and Chang (2012), internet has provided many options to the customers. It has provided to the customers the option to browse the different flights and make the payment by using the different available payment methods with ease. However, the payment mode is threatening as it is less secured. Nevertheless, an unsecured platform will lead to customer dissatisfaction as it is evident from the example of Mongolian Airlines (Niranjanamurthy et al. 2013). It has also differed from the beliefs of Al-Fadly (2016) by stating that even a good website cannot reduce the threats of making payments online. The author has not directly said anything about the business profits; however, it is a clear indication that the loyalty level will be at stake. Furthermore, this will challenge the retention of customers. Moreover, market shares might hamper because of an incrementing use of the e-business model. The author has not rejected the importance of internet; however, it has al so not supported the benefits in terms of market shares and the customer loyalty. They rather mean that market shares depend on different other variables such as an effective low cost carrier model, a quality legacy services, effective management of e-commerce website, flexibility with the frequent changing demands of customers and others like those (Hussain, Al Nasser and Hussain 2015). Application of the evaluation on the Omani market The evaluation of the entire selected article has helped to conclude few important points, which are necessary to consider for being competitive in the industry. Following are such points: Flexibility with the changing customers demands is a key to be competitive Payment security is necessary at the e-commerce platform to have a large number of loyal customers To use competitive marketing communication modes to be an efficient advertiser of innovative business strategies The Shaksy Group is an Oman based privately owned holding company. It has several businesses to its credits such as Oil Gas, Real Estate and Construction (Shaksy Group 2017). The real estate business of the company in specific needs the implementation of e-commerce service. Such business needs more and more online advertisement in order to attract the clients. Nevertheless, this can well be supplied to the target clients with the help of e-commerce website. This will be the platform where customers will be able to browse their choice of plots or properties. The point of evaluation would help the company in meeting with the demands of customers, educating its clients on the security related threat in the online payment and to be an effective marketing organisation. The oil gas business will also be requiring the implementation of e-commerce website. Such platform will help the company get connected to more new clients. Moreover, the company will be able to get the updates on the lat est news on the oil gas business. The construction work of the company will also be benefitted with the implementation of e-commerce platform. The e-commerce platform will help to contact various new clients. Moreover, this is a very good resource to get new businesses. Clients will be able to browse the bidding prices of the company. Henceforth, company will have a more defined connectivity with the more new clients. Omantel is the first company in Oman that has provided telecommunications facilities to the country. It is the major provider of internet service in Oman (Omantel.om 2017). The company would be benefitted by one of the facts, which have been evaluated above in the evaluation section. The fact that it is necessary to be flexible with the rapid changing perceptions of customers will be a key for the company to continue its dominance in the country and to also expand to the other parts of world. The company is operating in huge presence across the country and in some other parts of world. Additionally, effective marketing communication will be another key to advertise the new business concept in the local or in the global parts of world. The e-commerce platform will really provide benefits to the company. Omantel provides telecommunication services in Oman. Nevertheless, the company will be able to reach to a wider customer base, which is never possible physically. E-commerce has probab ly made the distant places look closer. It has brought the different worlds closer to one another at just one platform. Conclusion The Kuwait Airways needs to be flexible with the changing demands of customers. The e-commerce website is good for the enhancement of business revenues; however, it is unsafe as well for the payment. It is necessary for the company that it educates the customers for being safe while making payment online and also follow some safety rules to avoid any unwanted consequences. Kuwait Airways should take the leverage of the e-business model; however, it should also educate its customers on the negative consequences that might occur in case of ignoring the safety rules of e-commerce usage. The company needs to be flexible with the rapid changing perception of the customers. They need to be cost effective as well as quality oriented. They need to use a good website in order to soften the experience of both the customers and the clients. The e-commerce platform despite all the challenges such as security threats has won several accolades from every corner. It has not only benefitted the business but it has also benefitted the common people as well. It is the one single platform where the entire world can experience the whole lot of thing that had never been possible without the e-commerce platform. References Al-Fadly, A., 2016. Development and Implementation of E-Business Strategies Managed and Applied by Kuwait Airways.International Journal of Economics and Finance,8(9), p.41. Al-hawari, M.A. and Mouakket, S., 2012. Do offline factors trigger customers' appetite for online continual usage? A study of online reservation in the airline industry.Asia Pacific Journal of Marketing and Logistics,24(4), pp.640-657. Byambaa, B. and Chang, K., 2012. The influence factors of online purchase on customer satisfaction in Mongolian airlines.Retrieved on,22. David Mc A, B., 2013. Service quality and customer satisfaction in the airline industry: A comparison between legacy airlines and low-cost airlines.American Journal of Tourism Research,2(1), pp.67-77. Garvey, F. and Sankaranarayanan, S., 2012. Intelligent Agent based Flight Search and Booking System.INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN ARTIFICIAL INTELLIGENCE,1(4). Granados, N., Gupta, A. and Kauffman, R.J., 2012. Online and offline demand and price elasticities: Evidence from the air travel industry.Information Systems Research,23(1), pp.164-181. Hussain, R., Al Nasser, A. and Hussain, Y.K., 2015. Service quality and customer satisfaction of a UAE-based airline: An empirical investigation.Journal of Air Transport Management,42, pp.167-175. Moreno-Izquierdo, L., Ramn-Rodrguez, A. and Ribes, J.P., 2015. The impact of the internet on the pricing strategies of the European low cost airlines.European Journal of Operational Research,246(2), pp.651-660. Niranjanamurthy, M., Kavyashree, N., Jagannath, S. and Chahar, D., 2013. Analysis of e-commerce and m-commerce: advantages, limitations and security issues.International Journal of Advanced Research in Computer and Communication Engineering,2(6). Omantel.om. 2017.Personal. [online] Available at: https://www.omantel.om/wps/portal/ [Accessed 12 Oct. 2017]. Shaksy Group. 2017.Shaksy Group. [online] Available at: https://www.shaksygroup.com/ [Accessed 12 Oct. 2017]. Shaw, S., 2016.Airline marketing and management. Routledge. Westerlund, M., Leminen, S. and Rajahonka, M., 2014. Designing business models for the internet of things.Technology Innovation Management Review,4(7), p.5. Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet.Journal of Retailing and Consumer Services,22, pp.244-249. Zhang, Q., Yang, H., Wang, Q. and Zhang, A., 2014. Market power and its determinants in the Chinese airline industry.Transportation Research Part A: Policy and Practice,64, pp.1-13.
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