Ryanair Customers Service Problems in 2013 - Essay Example

?Bad attitude of the staff, inability to deal with s, below-par staff knowledge are some of the issues for which Ryanair has been d the worst in customer service in the United Kingdom (Bradley, 2013). Ryanair may be cheap but it is not cheerful as it is marred by hidden costs and the charmlessness of the CEO (Hickman, 2009). Ryanair banned checked luggage in 2005 which would reduce the cost of flying per passenger by 15 percent (Wyld, Jones & Totten, 2005). This would be due to elimination of staff at check in counters and for baggage handling. The airline expected to deliver faster service through this strategy but this only led to increase in hidden costs. In the next step, the airline raised the weight limit for carry-on bags while also hiking fees for overweight checked baggage. In addition, there were hidden credit card charges, ?100 for amending a passenger name, taxes and fees to be paid with frequent delays and overall poor customer service (Hickman, 2009). Ryanair CEO is also known to call his passengers “stupid” and “idiot” if they do not print the boarding passes ahead of the flight (Independent Traveller, 2011). Apparently such remarks were prompted by a customer who complained of being charged 60 Euros for not having the boarding pass printed. The shareholders complained against the tarnished reputation of the airline after Ryanair refused to refund the fare of a dead passenger and after the CEO’s comments that he was not interested in “sob stories” when no refund came through (Bennett, 2013). The arrogance of executives is another factor that has affected service. Ineffective communication and poor marketing by Ryanair further aggravates the situation. Thus the issues that have severely affected customer service include hidden costs, low knowledge of the service staff, inadequate staff, and the rude and arrogant attitude of the executives. The factors that have driven the airline to undertake strategic restructuring include a warning that its profits could be lower than the lower end of its guidance. The biggest blow came when the brand was voted the worst of the 100 biggest brands in the UK (Eleftheriou-Smith, 2013). Restructuring has become essential as the airline envisages growth in its customer base from 80m to 110m over the next five years (Ryanair News, October 25, 2013). The methodology used for this report would be content analysis based on a qualitative approach which is a text analysis approach to analyse the data collected from the company website. This would enable to explore how the company intends to improve its relationship with customers. In 2013, Ryanair has decided to take certain steps towards better customer service including being “nice to customers” (Bennett, 2013). The CEO has decided to end the “macho” culture and accept the blame or responsibility for the abrupt culture in the organization that has affected customer service. These steps are geared to change the reputation of the airlines and retain customers. One of the first initiatives that Ryanair has taken is to introduce digital marketing strategy which it announced at its AGM. The airline is investing significantly in improving the website, the mobile platform and interaction with passengers using the social media (Ryanair News, September 20, 2013). Website Website would allow customers to enter their details and save them, thereby reducing booking time for all future bookings. This service known as “My Ryanair” would help them store their information and data securely on the Ryanair website for future ease of booking (Ryanair News, October 30, 2013). However, this is expected to go live by December end. The recaptcha security feature was quite annoying which has been removed for individual customers starting October 1, 2013 (Ryanair News, September 20, 2013). It would continue to remain in place for high volume bookers, travel agents and screenscrapers. Removal of recaptcha will speed and simplify the booking process. This is aimed at deterring travel agents and other bookers who only access the website for fare quotes. The other features on the website include a rolling programme that would make it easier for passengers to navigate and quickly locate the all-inclusive price quotes, and avail of promotions. They are also making significant investments in moving from the old to the new media focusing on the social media and the mobile platforms. Social Media To interact and understand customers, Ryanair has launched the Twitter page where it expects to receive instant updates and gain insight into customer expectations and flaws in the service. This strategy ensures its 81m passengers and the media in Europe remain up to date with the latest Ryanair news, promotions, and route developments, “from the palm of their hand” (Ryanair News, September 23, 2013). To celebrate the launch of Twitter account, Ryanair is offering free flight to the 10000th and the 20000th follower on the social media. In the past it has also been criticized for ignoring passenger complaints posted on Facebook and even for rebutting criticism (Eleftheriou-Smith, 2013). However, now the airline is actively listening and responding to the customers. Mobile App The new mobile app will make fares and flight information available through all smart phones. Effective October 1, 2013, the mobile app is downloadable for free which earlier attracted €3 (Ryanair News, October 01, 2013). These can be downloaded from iTunes and Google Play Store. In addition to accessing information, passengers would also be able to make flight bookings, review flight bookings and add optional services such as priority boarding and add checked-in bags to existing bookings. The app is another mode that would enable the passengers to remain updated on the latest information and changes in flight schedules. All these information would also be available through tablets. Further Initiatives Following the above initiatives, Ryanair announced further changes in its customer service based on an extensive customer feedback programme. Individual customers who book directly through the website and not through travel agents would be allowed to fix errors in bookings within 24 hours of the initial booking made (Ryanair News, October 25, 2013). This would be limited to minor errors such as spellings, names, and routings in their original bookings. A major improvement is seen in the form of quiet flights (between 9pm and 8am) effective November 1, 2013, during which no announcement apart from safety announcements would be made. The lights too would be dimmed enabling customers to take a nap if they wish to do so. Baggage Fees Baggage has always been a sore issue with the passengers and now Ryanair intends to allow a 2nd carry-on bag like a small ladies handbag or small airport shopping bag no larger than the size specified. Standard airport bag fees will be cut from $60/?60 to $30/?30 at the bag drop desk and from $60/?60 to $50/?50 at the boarding gate. These rates are standard airport bag fees. Digital Improvements Boarding card reissue fee will be cut from $70/?70 to $15/?15 for those passengers that have already checked online. However, those that fail to check in online will continue to pay a fee of $70 as counter check-in fee. At the same time, mobile boarding passes would be possible by end February 2014 by which time passengers could either download the boarding passes on their smart phones or print them (Ryanair News, October 30, 2013). Ryanair is adding a special “Fare Finder” feature that will allow customers to search for fares by price point, route and period of travel. By clicking on a low fare, they would immediately be shown the dates and flights available for the specified route. “Share the fare” would be another feature that would enable the customers to share these fares on their social networking sites. This would bring in free publicity to the airline as they now wish to harness the potential of the social media. Since European Union comprises of countries with several languages, Ryanair has decided to release tailored language websites in all its major EU markets. They would start with a Spanish language and tailored website and by mid-2014 they also expect the Italian version to go live. This would make the website readily available and accessible in all major EU markets. The strategic restructuring appears to be taking shape because Ryanair has been able to remove the recpatcha from the website two days earlier than planned. The CEO is active over Twitter as he has been talking about forthcoming improvements, the digital media, the improvements to the website and removal of luggage restrictions including major changes in the charges for boarding passes and online check-in. Corrective measures have been taken against all their drawbacks such as poor marketing, ignoring the customers and their complaints, compromising on customer service. The airline had kept away from the digital media but has now shown its eagerness to harness the potential which reflects in the changes on their website and the mobile app. Most importantly, the CEO appears to have mellowed down as he accepts responsibility for the shortcomings that have affected business as well as reputation of the airline. References Bennett, A. (September 9, 20130. "Ryanair's Michael O'Leary Wants To Stop 'Pissing People Off': 20 Reasons Why That May Be Hard", Huffington Post, Available from http://www.huffingtonpost.co.uk/2013/09/23/michael-oleary-ryanair_n_3961331.html [Accessed December 5, 2013] Bradley, J. (December 6, 2013). "Ryanair bottom of customer service league", The Scotsman, Available from http://www.scotsman.com/news/transport/ryanair-bottom-of-customer-service-league-1-3099923 [Accessed December 5, 2013] Eleftheriou-Smith, L. (September 23, 2013). "Ryanair revamps digital strategy with creation of Twitter account", Marketing Magazine, Available from http://www.marketingmagazine.co.uk/article/1212986/ryanair-revamps-digital-strategy-creation-twitter-account [Accessed December 5, 2013] Hickman, M. (September 5, 2009). "Consuming Issues: Ryanair: it's cheap, not cheerful", The Independent, Available from http://www.independent.co.uk/money/spend-save/consuming-issues-ryanair-its-cheap-not-cheerful-1781973.html [Accessed December 5, 2013] Independent Traveller. (2011). "Ryanair CEO Calls Some Passengers Idiots; Maybe He’s Right', Available from http://www.independenttraveler.com/blog/index.php/tag/travel-gripes/ [Accessed December 5, 2013] Ryanair News. (September 20, 2013). "RYANAIR ROLLS OUT DIGITAL MARKETING STRATEGY AT AGM", Available from https://www.ryanair.com/en/news/ryanair-rolls-out-digital-marketing-strategy-at-agm [Accessed December 5, 2013] Ryanair News. (September 23, 2013). "RYANAIR LAUNCHES OFFICIAL TWITTER ACCOUNT @RYANAIR", Available from https://www.ryanair.com/en/news/ryanair-launches-official-twitter-account-@ryanair [Accessed December 5, 2013] Ryanair News. (October 01, 2013). "‘APPY DAYS - RYANAIR’S APP IS NOW FREE"! Available from https://www.ryanair.com/en/news/-appy-days-ryanair-s-app-is-now-free [Accessed December 5, 2013] Ryanair News. (October 25, 2013). "RYANAIR ANNOUNCES CUSTOMER SERVICE IMPROVEMENTS OVER NEXT 6 MONTHS", Available from https://www.ryanair.com/en/news/ryanair-announces-customer-service-improvements-over-next-6-months [Accessed December 5, 2013] Ryanair News. (October 30, 2013). "RYANAIR UNVEILS IMPROVED WEBSITE AND DIGITAL SERVICE TO CUSTOMERS", Available from https://www.ryanair.com/en/news/ryanair-unveils-improved-website-and-digital-service-to-customers [Accessed December 5, 2013] Wyld, D.C., Jones, M.A. & Totten, J.W. (2005). "Where is my suitcase? RFID and airline customer service", Marketing Intelligence & Planning, 23 (4), 382-394 Read More