Role Of Icts For Improving Efficiency And Relevance Of Airlines Services For Tourists - Essay Example

? Role of ICTs for improving efficiency and relevance of airlines services for tourists Introduction The direction and disposition of global businessenvironment has been change quite intensively in existing period of time. There are a number of different changes such as increasing competition, dynamic business and economic conditions, globalisation, liberalisation and technological advancements have become some integral aspects of the business organisation. In this direction it has become quite crucial for the organisation to undertake some crucial, new and innovative strategic and tactic moves. In this direction adoption of new and competent Information Communication Technologies (ICTs) has become an important and effective way for the business organisations to enhance their overall capabilities in existing challenging business environment (Konig and Strauss 2000). The importance of ICTs can be sighted in different industries across the world. In this context, international airline industry has also been adopted ICTs quite significantly. The proliferation of Internet as an important channel of communication between business organisation and customers has provided some important and effective measures related with ICTs to international Airlines for enhancing quality of services provided to passengers (Sarmento 2011). In direction to this, the paper aims to ICTs relaed trends prevailing within the International Airlines Industry. The paper also elaborates different new technologies and trends related with information and communication technologies (ICT) that are quite prominently followed within airlines industry. The impact and role ICT related practices and trends in advancing customer expectations is also an important point of discussion made in the paper. On the basis of entire findings, the paper also presents some crucial recommendations for airlines industry for using ICT in the more tactical and strategic way so that efficiency and productivity of the industry can be enhanced. ICTs acceptance within airlines industry Like other business industries, the growth of internet and technological advancement of business environment has also affected trends and practices followed in airlines industry. In order to enhance efficiency of services provided to passengers and providing some intensive and value added experience to them, airlines companies has adopted ICT as one of the most effective tools. The history of ICT acceptance by different Airlines is quite old. Since 1970s, Airlines companies have been using different variants of ICT for facilitating its customers. The availability of telephone availability within this decade has changed the trend of enquiring about availability, reservation and confirmation (Sarmento 2011). In regard to this, first of all American Airlines introduced SABRE Computer Reservation System (CRS) in the year 1962, for the purpose of providing fast and effective facilities regarding reservations and bookings. Afterwards, the system was started to be used for inventory control function within the organisation. This system allowed the company to schedule its crew effectively, track spare parts requirements, and have effective decision support systems for management (Knowles and Garland 1994). The revolution regarding ICTs in Airline industry can be spotted from mid 1990s. The development of internet and intranet facilities within the market place has allowed the airline industry to have some effective strategies on technological innovations in their ICTs infrastructure. In this regard, British Airways has spent ?1.1 billion on its ICT infrastructure for the purpose of making its distribution channels more effective and responsive. Increasing competitive pressure has imposed business organisations to have enhanced the level of interaction with customers so that their trust and loyalty can be won (Noakes and Coulter 2002). In this concern, effective communication and information technologies used by the company has been considered as effective gateways. In addition to this, business organisations operating within airline industries became quite concern about quality and innovation in their services so that they can provide maximum value of money paid by customers and remain sustainable in tough and competitive business environment. In this direction adoption of online booking services is one of the major application of ICT used by companies since early 2000s. Nowadays almost all the Scheduled (often flag carriers) and No–frills (or low cost) airlines are providing facility of internet reservations and bookings to its customers (Gudmundsson and Lechner 2006). In this way, the entire discussion has re-elected that in the airline industry the acceptance level of ICT is quite high. It has adopted many applications of ICT for providing better and effective services to the customer. In future also, there are many other areas of operations, which will be covered effectively by different measures of ICTs. Important ICT related trend prevailing within the industry In existing business environment like other business industries, the airline industry has also been quite affected by enhancing trends of ICT. In this scenario, there are a number of different tools and techniques related with ICT, which are used by different airlines companies for the purpose of providing some intensive services to its customers so that the value of money paid by them can be enhanced. Some of the crucial ICT related initiatives prominently used with airline industry can be listed as below: Facility of E-ticketing: In existing business environment the concept and usage of classical paper based ticket system is getting blurred gradually under the influence of increasing disposition of ICT within the industry. Almost all the frill as well as network airlines have adopted the system of online ticket booking system for facilitating its customers. Increasing usage of internet across the world has ignited the online booking related tendency of the customer. In the year 2007, The International Air Transport Association – IATA has achieved its target of penetrating e-ticketing service among it all the member organisations engaged within the global airline industry. This ICT application provides convenient and easy measure for booking their tickets for customer and a low cost business models for business organisations (Gorin and Belobaba 2008). Bar-coded boarding passes Along with paper less tickets, usage of Bar-coded boarding passes have also been enhanced within the industry. In this context, for the purpose of making the identity of the customer easy and less complex, aviation companies has started to send virtual bar codes on the passenger’s cell phones instead of providing printed boarding passes. These bar codes have all the information regarding the passenger. This system makes it quite easy for customers to have less complex boarding in the flight (Sarmento 2011). Customer service automation Another important ICT initiative within airlines industry is related with the automation of customer service. With the help of ICT, an effective check-in solution can be provided to customers. In this solution, the self service facility is provided to customer for checking in. In this service customers can have web based check-in either from the self service kiosk at the airports or directly from their home or offices. This solution helps the passenger to save their time at the airport. Moreover this facility has also been proved effective for management of the airport to reduce the passenger waiting time at the airport (Khosrowpour 2006). Luggage handling with the help of RFID code For the purpose of enhancing the level of convenience and effectiveness in the luggage handling at the airports, the usage of RFID (Radio Frequency Identification) tags has become quite common in Airline industry. Through this ICT tool, baggage management service facility provided to the customers for the purpose of enhancing customer’ comfort and security of the luggage of the customer can be made more intensive and effective (McKay 2008). These are some of the most crucial trends and applications related with ICTs which are frequently used by different business organisations operating within the industry. Impact of ICTs over management practices of different international Airlines Above discussed section has reflected some of the crucial trends regarding ICT applications in operational framework of Airline industry. Along with operational aspects, from the perspective of management also, the advent of ICT has casted some crucial impact. In relation to this, internet and intranet has facilitate the Airline Companies to undertake it’s various management related functions such as planning, controlling, co-ordinating and decision making. Effective intra-organisational communication is a key of effective coordination and control within the organisation. In direction to this, ICT has enabled the top level management to establish an effective communication with middle level and ground level employees, which channelize the information effectively. This has support the top level management to build and employ some effective and crucial strategies within the organisation. Moreover, as Airline companies have adopted the measure of international business expansion for the purpose of avoiding different external environmental impacts, the role of ICTs has become quite vital. Application of ICTs has provided a number of different means to the top level management through which, proper communications and exchange of information across the international network of the organisation can be possible. Along with there are some other effective and crucial applications of ICTs that allows the organisation to have some adequate and timely information regarding changes in the external business environment. This information helps the management to formulate some effective strategies for countering such changes. In addition to this, Airline companies are using their websites a mean of establishing effective communication with its customers (Sharpley and Pender 2004). By using different technologies related with ICT, Airline companies are focusing upon the development of interactive website, through which they easily communicate with its customers and retrieve their crucial feedbacks regarding services of the company. The management of the organisation uses such feedbacks for the purpose of having effective control and quality management. In addition to this, in the planning function of the organisation also, these feedbacks of customers play a vital role. On the basis of such feedbacks, the management comes to know about what are the requirements and demands of the customer and modify its product and service offerings. In this way, the application of ICT has brought some intensive changes in the core functions and activities undertaken by the top level management (Konig and Strauss 2000). Along with such core management practices, other supportive activities such as marketing, promotion, and distribution of services have also been affected by ICTs quite intensively. Nowadays, internet has become one of the major measure through which airline companies distribute their services to its customers. Nowadays airline companies are providing the facility of online booking, availability, timings and scheduling of flights. The passenger can plan his travel with the help of internet directly from his place (Oldknow, Taylor and Tetlow 2010). Understanding of benefits of online booking facilities for both customers and organisation, Airline companies are promoting the trend and practices related to online booking among its customers. For example, in order to promote usage of internet for ticket bookings, in the year 2002, EasyJet and Ryannair started campaign in which, the companies used to give the discount of ?5 on the tickets booked through internet (O’Toole 2002). Along with this, marketing and promotion are some other areas which have got affected by ICT revolution in Airline industry. Nowadays, online marketing and e-mail marketing has become some crucial and effective measures undertaken by Airlines companies to market, promote and advertise its services to the potential customers. Airlines companies are making some intensive and noticeable investments in the development of Online marketing related competencies. Social media marketing has been spotted as an important and profitable measure of marketing adopted by business organisations operating in the Airline companies. In existing business environment, there are a number of different social networking websites such as facebook, twitter, Linkedin, and so on, which are quite popular among young generation. For the purpose of catering this market in the most effective manner, social media is being used quite intensively by airline companies (Oldknow, Taylor and Tetlow 2010). Role of ICTs in advancing customer expectations In addition to the management practices of different international Airlines, the adoption of ICTs tools has also advanced customers expectations from the company. Nowadays passengers have become quite demanding and aware about their rights as a customer. In this direction, different tools and techniques related with ICTs has also made their expatiations quite high. In relation to this, time saving and convenience are the prime aspect of demand of passengers. They expect quick, easy and effective service delivery to him. Increasing trend of online bookings is one of the major indicators of this expatiation of customers. Nowadays, customers prefer booking their tickets online rather than standing in the queue and waiting for their turn while booking tickets. In this context, different tools and technologies related to ICT has enabled the business organisations to fulfil the demand of easy and convenient services (Adler and Smilowitz 2007). In addition to this, from the perspective of managing customer expectations, information technology related tools play an important role as it helps the organisation to establish an effective and direct interaction with customers. With the help of new tools of ICT the organisation has become able to avail some crucial feedbacks regarding the quality of services provided by the company to customer. These feedbacks have some intensive significance from the strategic point of view as on the basis of such feedbacks management of the organisation come to know about the areas of their weakness. Moreover, the organisation also reveals some crucial demands and requirements of the passenger and modifies its product offerings accordingly (Moutinho 2011). In this way, with the help of ICT the organisation can customize its product offerings for the purpose of accomplishing the demands and requirements of passenger in the most effective manner. Along with this ICTs have also enhanced the level of the quality within the services delivered to the customer. ICTs have enabled the organisation to have a well informed and integrated communication channel within its internal as well as external business environment. This effective communication enables the execution of formulated policies and strategies in the most effective manner, which reflects in the fast, adequate and effective delivery of desired services to customers. This casts a direct impact over image of the airline in the eyes of its customers, which helps the company in building some effective competitive advantage within the market place (Konig and Strauss 2000). In this way, it can be considered that disposition of ICT within existing operational and managerial practices undertaken by airlines industry has revolutionized the existing trend prevailing within the industry. Recommendations for future management directions Although, ICTs has provided some of the crucial and long term advantages to business organisations operating within Airline industry, yet still the application of ICTs requires some intensive amount of efforts and considerations from the side of upper level of management. In this regard some important recommendations can be provided to management of such business organisations. (1) The management should focus on its training and development practices for its employees. The prime focus of such practices is to development learning capacity within employees so that they can be able to handle the technological changes within organisation’s operational framework. (2) There should be regular workshops and training sessions within the organisation for its ground level employees. It will help them to be compatible with new ICTs based tools and procedures (Nair, Palacios and Ruiz 2011). (3) Implementation of ICTs is a process of inducing change within operational and managerial practices within the organisation. In this direction, the management of the organisation should have an effective and structured change management framework. In this context, the application of Kurt Lewin’s change management model will be the most effective tool for the management. As per this model, the organisation must implement such changes within three different stages, a namely unfreezing (in this stage organisation must communicate the reason and significance of the proposed change), transition (the proposed change, i.e. installation of new ICT related technology is accomplished), and refreezing (proper evaluation of the performance of installed technology will be undertaken) (Cameron and Green 2012). These recommendations will be helpful for organisation to retrieve maximum advantage of ICTs in existing highly competitive business environment. Conclusion In the context of airline industry, there have been some significant changes in trends and practices. Nowadays, perception and attitude of people regarding air travel has become quite positive, which has led to expand the scope and functionality of the industry. In this regard, it has become quite crucial for the industry to develop its information and communication technologies more effective and responsive. In regard to this, the paper has shaded some intensive lights over the disposition of ICTs usage in global Airline industry. On the basis of the discussion made in the paper it can be cleared that global Airline industry has positive approach towards the adoption of different new tools and procedures implied by ICT. There are a number of different new tools and techniques related with ICT, which are being used by Airline industry in the most effective manner. 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