Customer Service Management for Travel and Tourism in Ryanair Company - Case Study Example

Customer Service Management for Travel and Tourism University’s Name: Submitted by Name Tutor: Date: Table of Contents Introduction 3 Types of Customers in the Travel and Tourism Industry 3 Effectiveness of customer Service in the Travel and Tourism Industry 5 Benefits of Improved Customer Services to Ryanair 6 Quality Systems in Travel and Tourism Industry 7 Application of RATER to Ryanair to Improve its Customer Service 9 Reference List 13 Introduction The focus company in this report is Ryanair Company, which was found by Ryan family in 1985 (Ganusauskaitė and Tauraitė-Kavai, 2014). Ryanair started by operating between Waterford and London through the use of a 15-seater Bandeirante aircraft. It then expended to 46-seater aircraft a year later. The company has witnessed a massive growth since then and it is now operating more than 1,600 flights on a daily basis. Currently, it is connecting 180 destinations in about 29 countries across the globe (Ganusauskaitė and Tauraitė-Kavai, 2014). Ryanair is recognized as the first low fare airline and it has been offering other customer services like free drinks and meals for its passengers to attract more customers. In addition, it has employed about 9,000 skilled professionals to attend to its customers and to meet its goals and objectives. The report, therefore, is based on the customer service management in travel and tourism industry, and it specifically on customer services offered by Ryanair. It analyzes the types of customers and the effectiveness of customer services in the travel and tourism industry. The report goes ahead to discuss the importance of improved customer services to Ryanair and the benefits of quality systems in the industry. Finally, it analyzes how Ryanair can use the RATER model to improve its customer services. Types of Customers in the Travel and Tourism Industry Generally, there are five types of customers that include loyal, discount, impulse, need-based, and wandering customers (Henne, 2014) However, in the case of travel and tourism industry, the majority of customers are need-based because they seek various services based on specific needs that they must satisfy. At the same time, there are some loyal customers that are found in the industry based on the quality of services that are provided by various players. The customers in the industry can broadly be categorized into internal and external customers (Armario, 2008). External customers refer to clients that seek products and services from various organizations in the industry. Internal customers, on the other hand, are the people who work in the same firm and may require services offered by the same company. Internal customers also require excellent customer services to motivate them to offer quality services to external customers. The types of customers in the travel and tourism can specifically be categorized in terms of age, ethnicity, leisure interest, business interests, and those with special needs. A significant number of customers in the industry are children who require services like play ground in airports and hotels and game devices in aircrafts (Henne, 2014). At the same time, there is rapidly increasing number of older people who seek services from the industry. Unlike children, the older people need formal approach in terms of service delivery. The industry also serves customers with different beliefs, cultures, and values who require different treatment. In addition, leisure interest customers also dominate the industry and they are looking for organized activities and entertainment (Henne, 2014). At the same time, some of the leisure interest customer would prefer excitement and relaxed environment. The business interest customers, on the other hand, will be looking for speedy and efficient services from players in the industry. They would prefer additional services newspapers and other communication devices like computers (Armario, 2008). Besides, the industry also serves special need customers like those with physical limitations and language barrier. Therefore, travel and tourism industry serve various customers with different needs. Effectiveness of customer Service in the Travel and Tourism Industry Customer service refers to the general activity of determining and satisfying various customer needs. Customer service can take place on site when giving personal help to customers or it can be pre-set to meet the need of various customers. Therefore, customer service is important in service industries like travel and tourism industry. Players in the industry must deliver quality services in order to bridge the customer gap, which is the difference between customer expectations and perceptions (Virgil and Elena, 2014). Customer services can either be tangible or intangible and they play important role in the travel and tourism industry. Travel and tourism industry is one of the business areas that have experienced a successful customer service, especially due to the stiff competition and the rapidly changing technology. At the same time, the industry players know that the modern customers are well informed and they require full value for their money, which can only be achieved through excellent customer services (Holjevac, Marković and Raspor, 2009). Customer service, therefore, forms the base of the travel and tourism industry because it has a direct influence in the firm’s profitability. Currently, all managers in the industry are focusing on creating a positive customer relationship in order to enhance customer satisfaction. The managements in the industry are striving to understand individual customer’s perception and expectations to come up with services that are tailor made for their clients (Amoako et al., 2012). Therefore, there are a lot of improvements in terms of customer service in the travel and tourism industry. Currently, many players in the travel and tourism industry are using the modern technology to improve their customer services. Many firms are now using smart technology to enhance and simplify travel planning and booking accommodation (Delener, 2010). At the same time, they are using algorithms to enhance service delivery by focusing on the individual taste and preference (Baggio et al., 2014). Therefore, the managements of companies in the travel and tourism industry are majorly relying on modern technology to boost customer service. Specifically, airlines are using modern technologies like internet, teletext, and call centres to create a flexible and time-saving flight booking process (Delener, 2010). Therefore, stiff competition, advanced technology, and modern informed customers have led to effective customer services in the travel and tourism industry. Benefits of Improved Customer Services to Ryanair Ryanair stands to benefit a lot when it improves its customer services. The improved customer service in the company is going to have to positive impacts on customer and employees as well. The main benefit that Ryanair is most likely to get from improved customer service is enhanced customer satisfaction. Improved customer services will enable the company to meet the desires, expectations and needs of customers, which can also lead to customer loyalty (McFarlane, 2013). Consequently, the company will be able to attract more customers and retain the existing clients that may end up giving it a competitive advantage in the saturated market. The same time, the company will be able to make more profits due to increased sales, as it will be serving more customers. Improved customer service in the company will also lead to increased growth and formulation of successful business strategies (Yu, Morais and Chick, 2005). Quality services are more likely to enhance business growth, as Ryanair will be able to expand its customer base and be able to retain its customers. Improved customer service will also enable it to come up with effective customer feedback system, which is important in understanding consumer expectations and desires. In addition, Ryanair will be in a better position to satisfy the needs of its shareholders through improves customer service, especially due to increased sales that boosts profitability of the company. The improved customer service will not only lead to customer satisfaction, but also employee satisfaction (McFarlane, 2013). High quality customer service will motivate employees, as they will be able to work under comfortable corporate atmosphere due to reduced pressure. The increased financial stability and profitability that come out of good customer service will also enable Ryanair to offer better remuneration to its employees and bonuses, which will lead to employee motivation. Generally, improved customer services will lead to enhanced efficiency and effectiveness in the company. Quality Systems in Travel and Tourism Industry Quality is a crucial competitiveness in almost all industry, especially in the service industry like travel and tourism (Hudson, Hudson and Miller, 2004). The management always sees quality as way of obtaining competitive advantage and it always come up with quality management practices in order to enhance the quality of goods and services that a company offers. Therefore, quality systems are important in developing a framework that is aimed at improving the quality of services and improvement of performance measures (Virgil and Elena, 2014). At the same time, travel and tourism companies should invest a lot in the quality systems in order to enhance customer satisfaction, employee satisfaction, and effective coordination and cooperation among various stakeholders. Total quality management (TQM) is the most common quality system that that is used by various companies that are found in the travel and tourism industry. TQM was designed by Edward and Deming and Joseph Juran (Virgil and Elena, 2014). TQM is common in the travel and tourism industry because it does not only help in improving the quality of goods and services, but it also enhances the performance of employees (Ibrahim, 2013). Even though the quality system was initially designed to be used in the manufacturing industries, it is currently common in the service industries where it is used to enhance the quality of services and improving performance measures. TQM plays an important role in the industry because it leads to less quality cost, less consumer and personnel complaints, and effective relationship between various stakeholders (Eraqi, 2008). The second quality model was RATER that was designed by designed by Valarie Zeithaml and Leonard Berry in 1990 (Gržinić, 2007). The quality system highlights five major areas that are crucial to customers when they consume goods and services. The areas include: Reliability: this refers to the ability of an organization to provide to consistently and accurately offer the services. Assurance: it refers to the knowledge, skills and professionalism of employees in an organization and their ability to inspire trust among customers. Tangibles: it refers to the physical evidence of the services that a firm offers in terms of the premises, staff, and equipments. Empathy: the area focuses on the relationship between employees and clients. Responsiveness: the ability of a business to offer quick and high quality goods and services to its customers. RATER, therefore, is a mnemonic acronym where R= Reliability, A= Assurance, T= Tangible, E= Empathy, and R= Responsiveness. Another quality system is SERVQUAL (service quality) model. The model is found in the definition of quality as compared to the expected and obtained gap during service provision (Gržinić, 2007). In addition, it is based on customer’s evaluation of quality of services that are offered by a company. SERVQUAL model, therefore, is important in the identification of gap between customer expectations and perceptions in the travel and tourism industry. Application of RATER to Ryanair to Improve its Customer Service In order to effectively use RATER model to improve customer service, especially when it comes to customer queries and resolving customer complaints, Ryanair must use the model for gap analysis through the use of its five elements (Alex and Ondiek, 2014). It can effectively carry out gap analysis by considering the current situation, future state, and the actions it should take to bridge or narrow the gap that exists. Reliability In order to address the questions that are asked by customers, the company should provide accurate and reliable information that addresses specific concern of a client. The information that is provided by Ryanair employees should also be consistent even if it is repeated severally. At the same time, the information and services offered by the company should be timely. As a result, customers will be convinced that Ryanair is a reliable company and they are likely to trust the services that it offers. Assurance I order to create assurance, Ryanair must ensure that it employs qualifies personnel who have relevant knowledge, skills and the required expertise in the travel sector. The staff should have enough knowledge regarding the operations of the airline in order to address all the questions that can emerge from customers. The company should come up with effective training and development programs to equip its employees on the necessary knowledge and skills, including the conflict resolution skills. Knowledgeable, skilled, and professional employees will inspire trust in customers, leading to quality customer service in the company. Tangibles The company should have the required facilities that can help in addressing customer queries and solve disputes that can emerge. It should develop quick and effective feedback mechanism that can timely address all questions raised by customers. Ryanair should also create a beneficial working relationship between its departments to solve interdepartmental disputes that can emerge from customers. At the same time, it should create a reliable and effective FAQ website that addresses various concerns and questions. In addition, it should create an alternative physical channel that can be used to answer questions and solve disputes that arise from customers in case the digital or website platform is broken. Ryanair should also make good use of social networks like Facebook and Twitter in handling queries and giving feedbacks. Empathy Ryanair should ensure that there is a good and beneficial relationship between its staff and customers. Consequently, customers will be encouraged to ask questions and clarifications because they are assured of getting timely and reliable information. The staff should also be trained to be in better position to understand the emotion needs of customers in order to genuinely take care of the concerns of customer. Good relationship between staff and customers will also help in solving various disputes that emerge. Responsiveness Ryanair should develop a system that provides prompt feedbacks and customers should be able to easily access the services that they need. All feedbacks and complaints from customers should be appropriately managed to gain trust and confidence of clients. In addition, Ryanair staff should be willing and ready to attend to questions and problems encountered by the company. The issues raised by customers should be resolved satisfactorily across its service channels. Therefore, the RATER model can help Ryan to improve its customer services in terms of customer queries and resolving customer disputes. Conclusion and Recommendations Ryanair Company has experienced tremendous growth since it was formed in 1985 because it started with single 15-seater aircraft and it is now operating about 1,600 flights in 29 countries across the world. However, it has not invested much in terms of customer service delivery. The majority of customers in the travel and tourism industry are need-based customers with different expectations and perceptions. Therefore, the industry has various customer segments that can be grouped in terms of age, ethnicity, business interest, leisure interest, and special needs. The travel and tourism industry has tried to meet the needs of these customers through effective customer services, especially by using the modern technology. Quality customer service plays important role in Ryabair and the industry as a whole, especially when it comes to customer satisfaction. Therefore, some of the models that can be used to improve the customer service in the Ryanair include TOM, SERVQUAL and RATER models. I therefore recommend that: 1. To improve customer service, Ryanair should identify the specific expectation and needs of various customer segments that are found in the travel and tourism industry. 2. Ryanair should come up with training and development programs that are aimed at improving the quality of its customer services. 3. Ryanair should use the modern technology, especially the internet and social media to connect and offer quick and reliable services to its customers. Reference List Alex, O.T. and Ondiek, A.B., 2014. Applicability of Servqual/Rater Model In Assessment Of Service Quality Among Local Authorities In Kenya. Amoako, G.K., Arthur, E., Christiana, B. and Katah, R.K., 2012. 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