Value Creation through Services Cape Model - Term Paper Example

Title: Palm Beach International Aitport. Contents History 0 Value Creation through Services cape Model 1 Critical Analysis of Servicescape Model Using “3 Performance Dimension” 2 Current Facilities 3 Terminal 3 Cargo Facilities 5 Maintenance and Fueling Facilities 5 Parking and Transportation Network 6 Aircraft Rescue and Fire Fighting Facilities 6 Air Traffic Control 7 Airport Operations 8 Environmental Impact 8 EIS Study Team 9 EIS Process 9 Proposed Measures and Funding 10 References 11 Bowie, D & Buttle, F 2008, Customer Relationship Management: Concepts and Tools 11 History Palm Beach International Airport (airport identifier: KPBI) is a public airport that is operated and maintained by the Palm Beach Country Department of Airports. Located in Palm Beach, Florida, KPBI began operations in 1936 as Morrison Field; the first flight out being a New York bound Eastern Airlines DC-2 in 1936. The airport was used by the U.S. military as a training ground during both World Wars, as well as a staging base for the Allied invasion of France. The name was officially changed to Palm Beach Air force Base in 1951 and became home to the 1707th Air Transport Wing (Heavy) and its 1740th Heavy Transport training unit. Soon the airport became the primary United States Air Force training ground for all heavy transport aircraft personnel, training nearly twenty three thousand service men. After much fighting by the Palm Beach County, the U.S. Air Force finally gave all its airport property to Palm Beach International Airport in 1962, which allowed the airport to fully operate and use its commercial services. Value Creation through Services cape Model Sevicecsape model involves recognizing the rationale behind considering physical attributes of a service industry as a key marketing point (Grönroos 2007, p.176). This plays a critical role in enhancing first impression for the customers, and hence the overall brand image of the company. In the Palm Beach Airport, the customers have many opportunities of getting in touch with the company’s environment as they await their flights. Thus, servicescape is a critical model that is able to assess added value for the customers of the Southwest Airlines. Using the servicescape framework, one is able to concur that the physical attributes of the airport and the exterior attributes are critical in value creation (Looy & Dierdonck 2001, p. 183). And in a bid to explain the rationale of considering physical factors as critical in value creation, the model groups these factors into three categories: ambient condition, size and symbols category, and the spatial layout category. This model aims at assessing whether these environmental factors add value to the customers by evoking positive impression. Critical Analysis of Servicescape Model Using “3 Performance Dimension” Using three-performance dimension, which include the customers/ employees’ relationship, the market performance, and the financial performance, Palm Beach International Airport has increased its financial performance by creating value through comfort and luxury. This has been achieved by coming up with a viable strategy that provides the “business class” customers with what they need emotionally: physical evidence (Lovelock & Wirz 2007, p. 231). And more so, the knowledge obtained from the customers helps them build a long-term relationship with the employees. However, while all the above are valid environmental factors that continue to create added value for customers, the notion of considering physical attractiveness as prime factor in creating value for the customers fall short of its expectation in as far as marketing performance is concerned. This stems from the fact that the strategy does not provide an avenue for measuring added value by comparing its environmental features against its competitors in order to assess its comparative strength. If this prospect is put in place, the Palm Beach International Airport will not only provide high quality environmental features with low pricing strategy, but also adopt a pricing strategy that the customers are willing to pay for, as creating added value for customers can also be achieved through premium pricing of luxurious environmental features. Current Facilities Runway and Lighting Palm Beach International Airport currently serves nearly six million passengers a year, non-stop service, to over 35 destinations with its three asphalt runways, a main terminal and three concourses. On December 17th 2009, the runway designations and markings were changed to 10L/28R (10008 * 150 ft) for primary commercial aircraft and is capable of supporting single wheel, double wheel, and double tandem aircraft operations of 85000 to 400000 pounds, the runway is equipped with an Instrument Landing System, with a 4 light PAPI and it uses a medium intensity approach lighting system. Runway10R/28L (3213 * 75 ft) is for non-jet general aviation traffic and is capable of supporting single wheel aircraft operations of 25,000 pounds; it uses a 4 light PAPI on right and has Runway end identifier lights. The only crosswind runway 14/32 (6931 * 150ft) is capable of handling single wheel to double tandem wheel aircraft of 85,000 to 400,000 pounds respectively, it is a non-precision runway and has a 4 light PAPI on the right. General distresses on the runways include cracking, weathering, and swelling but at very low levels. Terminal The terminal apron consists of three concourses, Concourse A serves commuter aircraft, with commercial carriers are served by Concourses B and C. This primary (NPIA Number 12-0085) airport is a medium hub type aircraft that has some world class facilities serving some of the world’s best airlines, like Continental Airlines, AirTran, Southwest, American Airlines and Air Canada. The top ten busiest domestic routes from Palm Beach is Atlanta, GA (558,000 passengers) and Newark, NJ(326,000) passengers. Currently the airport serves around 5 million passengers per year with forecasts with forecasts for it to increase to 6,436,910 by 2025, although there is a lot of competition from the airports further south of it such as Miami International and Hollywood/ Ft Lauderdale International Airport, which could restrict growth. Palm Beach International Airport recently completed an expansion project which doubled their TSA Screening size and also expanded their immigration process to speed up all passenger queues. The airport was awarded third best airport in the country and 6 best airports in the world by Conde Nast traveler magazine, best customer service, and Florida commercial airport of the year by Florida’s department of transportation. The airport also now provides free wireless internet services at main accessible areas of the terminals and concourses. (Dibb et al. 2005, p. 57). By 2025, the PBI terminal will require 37 gates, nine more than the 28 projected to be operational by mid-2008 (25 existing plus three under construction). This number of gates is expected based on a utilization of 5.5 daily aircraft users per gate. An additional 59 ticket counter positions or kiosks will be required by 2025, for a total of 176 positions and an additional seven Explosive Detection Systems (EDS) machines are needed in 2025, bringing PBI’s total complement of EDS machines to 18. Cargo Facilities There are two cargo facilities at the airport, the air cargo building and the air freight building, with UPS providing all cargo services since 1994. The enplaned all cargo forecast indicated an average annual growth of 2.3 percent from 2005 to 2025, with a 3 percent growth in enplaned belly cargo. The air cargo building is a 40,000 square foot building and is has UPS, USPS and the airport’s maintenance division. The annual enplaned all cargo tonnage is 1,964 million tons ending year Dec 2010 and is forecasted to grow to 3034 million tons, with current facilities able to handle this growth. The belly cargo activities at the airport are handled in the 40,000 square foot air freight building, with annual enplaned all-cargo tonnage being 5,811 million in 2005 it is forecasted to increase to 10,294 million by 2025, and the current facilities will be able to operate at that growth level, if the facility is increased by about 30 percent. Maintenance and Fueling Facilities The Palm Beach International Airport Master plan cited the building of a new maintenance compound, which would include four main facilities: administration building, workshop/storage facility, warehouse facility and a covered parking area, requiring a grand total of 85,055 square feet. Aircraft Service International Group (ASIG) operates the primary fuel farm at the airport, and has a total of 1 million gallons of Jet A fuel storage tank capacity. Due to aircraft operations growth, some space has been left near the refueling facility for any new construction required. Parking and Transportation Network There are four public parking facilities at Palm Beach International airport; the Premium lot, short-term lot, long- term lot, and park and ride lot, providing a total of 7,777 spaces. At a growth rate of 3.3 % the airport believes it will require about 1510 spaces by 2025. In addition there is 915 employee parking provided, for both crew (300) and airport staff (615), of which 90% is currently used. Accessibility to the airport is a key growth factor for Palm Beach international, not only being connected by I 95, the airport also has county buses that can transport passengers from the airport to the city center. One of the biggest sources of revenue other than parking spaces is the car rental services offered at the airport. Currently the airport is debating whether to build a separate individual remote facility just for car rentals, with a transportation service from the terminal to the facility; this would generate total revenue of 3.4 million dollars in gross revenue per acre. According to the master plan, they have estimated that approximately 39 acres would be required to accommodate a consolidated facility to meet demand by 2010, while 61 acres would be required by 2025. Aircraft Rescue and Fire Fighting Facilities The 16,800 square foot ARFF station is centrally located on the airfield between the runways. It is capable of housing 11 firefighters per shift and is staffed by 36 employees, and has a crew quarters and living facilities, including a kitchen, dining room, and day and exercise room. The ARFF index for Palm Beach International is Level D, per FAR Part 139. Station 81, Aviation Battalion 3, is run by Battalion Chief Mike Arena and has the following apparatus: (Airport LT1) 2001 Ford/Ferrara F550 Minipumper (AS1) 2008 Ford/Stinar F550 (BC8) 2005 Ford Expedition (Command 81) 2002 LDV Freightliner MT55 (D1) 2006 E-One Titan HPR (D2) 1997 E-One Titan Crash Truck (D4) 1997 E-One Titan Crash Truck (D5) 2001 E-One Titan HPR Crash Truck (DC8) 2005 Ford Expedition (ESCORT1) 2008 Ford F350 (F81) 1996 GMC 3500 4x4 Pickup Crash Truck (RP81) 2007 American LaFrance MedicMaster Freightliner M2 (Support 81) 1999 Ferrara Freightliner FL-70 Heavy Rescue (AC1) Air Traffic Control Costing 19.2 million dollars the new air traffic control tower at Palm Beach International Airport is 231 feet tall, and will guide about 300 flights a day. September 3rd 2011, marked the 10th month the tower has been empty since completion as officials try to find an area to place the long-range radar. The FAA wants to combine Miami International TRACON with Palm Beach which is over a distance of 60 miles and is raising concerns that this is too much traffic to handle, and would cause a problem if Miami ever had a emergency situation such as a terrorist attack. Airport Operations There are a total of 149 based aircraft at this airport, the majority being jet aircraft (96); with 15 single engine, 18 multi-engine aircraft and 20 helicopters. A total of 143,178 aircraft used this airport as of April 30th 2011, 49,463 being air carrier and 32,600 being air taxi. Local General aviation traffic is 450, but 59,700 is international, and 965 is military. 392 Average aircraft operations per day with 42% being transient general aviation, 35% commercial, 23% air taxi and Read More