The fft of Bggg Srvis on Overall Customer Experience in Etihad - Case Study Example

The Еffесt of Bаggаgе Sеrviсеs on Overall Customer Experience in Etihad Name University Author’s note Correspondence to this paper should be addressed to [Name], Department Contact Abstract Air transport has gained a significant boost over the recent years due to the increased number of flights and the reduction of the cost due to the competitive nature of the aviation industry. This has led to the improvement of services by the companies which deal with air transport. One of such companies is Etihad. This report studies the effect of baggage services on the overall guest experience on Etihad Airline. The report describes the methods that were used to collect information from the participant before giving the conclusions that were reached after the research. Introduction This report focuses on consumer attitude towards baggage services in Etihad airlines and how these services affect the overall customer attitude towards the airline. Report identifies the significance of this subject to consumer decision on returning to use the same airline in future and the satisfaction the airline offer in terms of taking care of the customers’ luggage. Purpose of the study The main purpose of this report is to give explanation on the effects of baggage on the overall customer experience on Etihad airlines. The research will bring in the results of the survey which was carried out on the customers of the airlines on the services and the overall experiences of the customers on the baggage services at the airlines. This then will help in drawing the conclusion on the effects that baggage handling cause to the customers of the airlines and the effect on the overall services offered. About Etihad Airlines Etihad Airlines is one of the biggest airlines in the world with it being listed as the second largest airlines globally. The airlines is based in United Arab Emirates and headquartered at Abu Dhabi. The airlines commenced its operations in 2003 and experienced a rapid expansion with it currently operating more than 1000 flights a week with about 125 cargo and passenger destinations around the world. Etihad has been favored by many customers due to various flight cuisine and options that one can choose from which are affordable and friendly to the customer. The airline is also favored due to its comfort and style in delivery of services which has helped the airlines establish its brand globally as one of the leading operators with just about 12 years in operation. The airline has one of the best crew in the world which has the capability of leaving the customer satisfied and coming back for more. It is also the fastest rising airlines in the world in the aviation business. Etihad has about 60 airplanes in service and very functional remote booking service which hastens the booking process. Etihad has several and different services and products for its customers which are offered depending on the class. The First class called Diamond class; Business class also called Pearl class and Economy class referred as Coral class are some of the classes that are offered to the customer depending on their financial capacity. This in itself is a major factor which allows the company to establish its brand in the market as one of the leading airlines in the world. The online booking system is also of great importance in increasing the speed at which the booking can be done by a customer without necessarily having to visit the offices physically. The flight is enjoyable with the airplanes having numerous entertainment systems that fit every customer ranging from TV shows, movies and games. Young children have a special treatment as well which makes the service uniquely one of its kind and friendly to customers of all ages and economy. Online payment options that have been adopted also make the entire process of booking a flight easy and safe. One is able to pay for a flight using Visa, MasterCard, and American Express among other methods of payment. In addition to the quality services and offers to the customers, the airline has had very few accidents and incidences which affect the flights in the past making it as one of the safest airlines in the world. The airline also has loyalty programs which are designed for its frequent customers as a means of appreciating their loyalty to the services offered the airline. Research methodology The methodology that was used to gather facts for this report were based on the survey that was carried out to put together facts about the experiences of customers using Etihad airlines. Various materials from various sources have been well analyzed and put together as well to reach to a more complete understanding of the baggage issues that are faced by the customers while using Etihad. Various factors such as the ticket policy and ticketing are also put into consideration in the research. The survey used sought to find out if the customers are satisfied with what Etihad has to offer as far as baggage is concerned such as handling of the baggage, tracing the lost baggage and the general view of the customers on the service of the airline. The report also seeks to outline the effects that baggage related issues have on the customers. Research sample The target population in this study consisted of the customers that use or have used the Etihad airline before. The information was gathered through spreading of the questionnaire which included the questions that the sample was required to respond to concerning the baggage. 20 Etihad customers were used to respond to the questions. Research problems The research on the report seeks to identify the overall effect of baggage services on the overall customer experience. The research will then outline the importance of the baggage services to any passenger irrespective of the airline that is being used. The quality delivery of goods to the desired destination is always an expectation of every customer or guest failure to which a guest might choose a different alternative for travelling. The report will also exploit the methods that Etihad has put in place to handle such problems as lost baggage or improper handling of the guest luggage and in case the luggage gets lost or left behind the mechanisms that the airline has put in place to trace the cargo or even the owner of the baggage. Results The survey carried out involved several questions to the participants. The sample taken to participate in the survey were 20 guests who have used the Etihad airline with both responding to various questions posed to them at random, the survey first sought to find if the participant was a frequent customer of Etihad and 85 percent of the interviewed were frequent customers while the remaining 15 percent of the sample were not. The sample was further divided basing on the class that they travel in, 40 percent of the interviewed travelled in economy class, another 40 percent in the business class and 20 percent in first class making economy and business classes the most preferred by most customers. After the establishment of the guest classes, the focus was now on the baggage policy and if it was well stipulated in the ticket, 45 percent of the guests responded positively, another 45 percent responded negatively while the remaining 10 percent were not sure if the baggage policy was on the ticket. On the baggage service issues and the experience by the customers while travelling with the airlines, 35 percent have had an issue related to baggage on their travel with Etihad while the remaining 65 percent have not had any baggage related issue. The level quality of service delivery in handling of luggage received different views from the interviewees, 5 percent responded negatively terming the service as very bad, 10 percent termed it as bad, 55 percent termed the service as good while another 20 percent said the service was very good 5 percent said the service was extremely good and additional 15 percent had no clue. Despite the challenges that have been encountered by some of the interviewees, half of them amounting to 50 percent were willing to travel with the airlines again. However, 30 percent were not willing to use the airline again while the remaining 20 percent were not sure. On the signage and baggage trail at Abu Dhabi Airport, 40 percent responded positively 30 percent negatively and the remaining 30 percent were not sure of any signage or baggage trail. The research further went on to interview the guests on what to do in case they lost a baggage, 50 percent were aware of what action to take in case they lost a baggage, 15percent did not know what to do while 35percent had no clue. 50 percent termed cargo handling as extremely important element compared to other travel needs, 35 percent termed it as just important while 10 percent termed it as normal; however, the remaining 5 percent were not sure. On the cargo space availability, 25 percent strongly agreed that there was available space for all the passengers, 5 percent strongly disagreed, 50 percent just agreed, 5 percent just disagreed while 15 percent were neutral. On the relatives or friends having baggage related issues while travelling with Etihad, 65 percent responded that their relatives or friends have had issues with the baggage service, 25percent of the interviewees said that their relatives or friends have not had an issue while 10 percent did not know. The last question was whether the pricing per cargo weight was fair at Etihad.20 percent termed the pricing as fair, 45 percent said the pricing was unfair while the remaining 35 percent was not sure. Discussion of the results Basing on the research carried out evident through the responses of various respondents, baggage handling is a very important issue in the overall customer satisfaction in travelling and attitude of the guests towards a given airlines. According to [Rie14], passengers take baggage handling seriously as one of the major contributors to the airport and airline quality service delivery. With the mounting pressure in the aviation industry, all sorts of services are in the verge of being improved including the quality of handling baggage. However, the technicality of baggage handling procedures and baggage systems in general poses a great challenge to the airline. Various systems have been designed to solve the problems encountered in baggage handling. However, basing on the research done on Etihad airline, there are still baggage issues despite the measures that have been put in place to minimize the complaints of the customer about baggage mishandling or even loss. While a small issue in airline as it may seem to the entire airline, baggage handling service contributes to the overall service delivery rating to the airline which may in turn affect greatly how the customer looks at the airline. The cargo handling service may impact negatively both cost and the quality of services of a given airline. In the interview, for instance, 35 percent of the entire interviewed sample was not willing to use Etihad airlines in future owing to improper handling of their baggage. This implies that had the baggage been handled in a good manner, the 35 percent of the customers would have been retained. 50 percent of the sample however was willing to use the flight again even after they had an issue with the way in which their cargo was handled. This is more likely due to the satisfaction they had with other services such as the pricing and the friendliness of the staff as well as the facilities that the Etihad airline has to offer to its customers. Large baggage handled at the airport always result in sorting issues which are related to the huge volumes of baggage which in turn lead to congestion, transfer errors and control problems and sometimes even baggage loss. With the complex nature of trying to safe on time and cost while at the same time trying to satisfy the customer in handling of their baggage, airlines have a difficult time in keeping up with different demands by the customers. There are several forces which are involved according to [Rie14]. This include customers who want a stress-free processing and transfer of their baggage which involve freedom of bringing baggage with their desired weight and size and even shape. This is however, not the case with the airline rules which stipulate the size, shape and the weight of baggage that a passenger must be limited to carry. However, the airline are always trying their best to keep the customer satisfaction which always is a priority in line with the policies of handling of such issues as cargo. This involves utilizing the available fleet to the maximum while minimizing the cost and the rates of errors that the airline has to meet in offering these services. The security of the baggage is also one of the stressed factors of concern which has led to the introduction of the screening services to avoid dangers that arise due to the transit of dangerous baggage such as explosive devices. According to [JIY11], attitude of a customer are related to motivation of an individual by various factors which arouses that particular individual to consider using the product or service being offered by a given company. Attitude can therefore exist in relation to the services that a particular company offers. The attitude towards the return usage of the airline by the customer was directly related to the baggage services offered and the delivery of other services as indicated in the chart below. The chart below indicates the customer willingness to use the airline again in percentage. Figure 1: Customer Willingness to use Etihad again Various policies that govern airline operations demand that the customer be compensated for the loss or damage of the baggage by the airline company. The US department of transport for example is one of the aviation and transport governing bodies that maintain that the responsibility of the damage or loss of the baggage lies entirely on the airline operator. This however is subject to the proof that the guest did not pack the goods which are damaged. Most of the clients are travelling in both business and economy classes which always brings challenge in the baggage handling. Basing on the survey, 40 percent of the total sample travel in economy class while another 40 percent travels in business class. The people travelling in these classes are allowed to carry limited amount of baggage depending on the location that one travels to with the excessive baggage attracting an extra charge depending on the amount of kilogram. Basing on the information from the survey, 45 percent of the interviewed responded that the policy of baggage has been well explained in the ticket, this however is refuted by the other 45 percent who claim that the policy has not been well explained in the ticket while the remaining 10 percent were not sure if the policy has been well explained. Poorly stipulated package policy always leads to misunderstanding among the customer and the crew. The results of the survey proof the need of the Etihad to invest more in explaining the baggage policy to their customers in the ticket. The baggage policy should clearly state the weight of cargo that is allowed to be carried as well as the type of materials that one is allowed to carry including the extra charge that is levied on the extra luggage. Issues related to luggage are common but the solutions to these issues are always what matter most. Signage and trailing of the baggage in the airport, for instance, is one of the important factors which must be implemented to avoid confusion and even loss of the luggage. Basing on the survey carried out 35 percent of the total sample has experienced the issues with their luggage being mishandled in person while travelling with Etihad while 65 percent of the sample has not. Another 65percent of the sample responded that their relative or friends have experienced problems with their luggage while using Etihad while the other 25 percent has not experienced any problem with their baggage. Consumer or guest attitudes are composed of beliefs, behavioral intentions and feelings towards a particular brand. Each of these components are however interdependent on each other. The behavior of a customer of Etihad for instance might be influenced by the treatment that the guest and his or her belongings received while using the airline which may alter the belief of the same customer on the services generally. The three components above are viewed together since they collectively affect influence how a consumer reacts to a particular brand. According to [connd], a customer may hold many beliefs about a given subject and may be difficult to point out the belief of a particular guest and satisfy them, some of the beliefs might even be contradictory to those of other customers. Some of the subjects like finding out if the Etihad Airline services are friendly or not might receive varied responses due to the different views on how the customers of the airline perceive the airline. Consumers, however, do not have a consistent attitude towards a given product since the attitude depends on various factors such as age, financial ability, competing demands and influence by other people on a customer. Beliefs, behavioral intentions and how they affect the feeling of a customer are graphically explained in the diagram below. In the above diagram, the interdependence between the beliefs of the customer, the behavior and the effect that it causes to that particular brand are shown. The beliefs change the behavior of a certain brand leading to either a positive or negative feeling towards that product or brand. This also affects the likelihood of the consumer of ever using a given product or service in future as in the case of Etihad airline where some of the behaviors of the customers are influenced by the experience in the airline. Leading airlines in the world have had challenges in providing a solution to the issue of baggage that will satisfy the customer while on the other hand putting the airline in a good strategic position and creating a well established security for both the airline and the guests onboard. Tracking of the lost baggage is one of the major issues as far as the handling of luggage is concerned, major airline service providers have also been tasked to pay for the damages that have occurred to the customers’ baggage. During the past decade, concentration of almost every business has shifted from products to the customer service which is considered as the vital element that allows the increased amount of sales of goods and services. According to [Fit06], creation of effective customer experience and satisfaction for a given product or service is vital for identification and comparison between the perceived service delivery and the actual service expectation. [Ran03] On the other hand suggests the adoption of a holistic view to examine the effects caused by the dissatisfaction and switching of the customers from one product to another. He further argues that this helps in uncovering the perceived effects that are caused by a certain process and therefore find mitigation for it. It should be noted that trust is one of the factors that aids in the retention of customer. In the Etihad airlines, for instance, some of the customers despite having issues with the airlines in handling of luggage have been able to come back and use their airline due to the trust on the airline; this proofs the point that airline such as Etihad can even be able to retain their customers if they are dissatisfied about a given product or service as long as the trust is established between the customer and the company. Conclusion The airline industry is one of the largest industries in the world currently with about 1000 airlines companies operating in the world. There is a stiff competition in the delivery of services to attract more customers by various airlines which include reduction of cost per flight, increasing the travel destination to various parts of the world, improving the quality of delivery of services to the guests’ onboard, purchase of more fleet of aircrafts and introducing entertainment systems to the aircraft. This, however, is done while minimizing the cost that is incurred while trying to boost the levels of profit. In conclusion, the overall customer experience in travelling with Etihad airlines is affected by how their baggage is handled. The way in which the airline handles client baggage is likely to improve or reduce the number of guests that will come back to use the airline. The challenges that are experienced by the customers in handling of baggage have prompted airline to adopt new measures to reduce the encountered issues and customer complaints. The introduction of technology in handling baggage is one of the strategies that have been put in place. The challenge, however, still exists in the efficiency of the systems in handling of the luggage. This leads to the need for further innovation in the field to come up with an effective system to handle the baggage efficiently and accurately. References Rie14: , (Scholing, 2014), JIY11: , (JI YI, 2011), connd: , (consumerpsychologist.com, n.d), Fit06: , (Fitzsimmons, 2006), Ran03: , (Ranaweera, 2003), Read More