...Shruti Manchanda ------------------------------------------------- Flight Centre Case Study Analysis Shruti Manchanda ------------------------------------------------- Flight Centre Case Study Analysis Contents Executive Summary 1 Findings 2 Discussion 4 CONCLUSION 7 Recommendation 7 Implementation 8 References 8 Executive Summary This report contains analysis on Flight Centre’s customer experience survey conducted in Australia. The report has been divided into three main sections. The first section lists the important facts, findings from the case study. This is further elaborated to list key challenges faced by Flight Centre. Based on the facts and key challenges alternative solutions have been provided in the second section. Final section of the report mentions the recommendations and implementations for the company to improve the current situation. Flight Centre is one of the largest and most successful travel booking agencies. First Flight Centre store was opened in 1982, the current number of stores in Australia is more than 680. The company’s vision is to be the most successful travel company, delivering best possible experience to its customers and partners Objective of Flight Centre 1. Providing amazing travel experience at best prices 2. Providing excellent customer services with highly trained experts Findings Flight Center conducted a customer experience survey for 219 Australian stores, 9058 survey responses...
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...Flight Centre Business and Strategic Analysis A clear statement of the company’s activities: Flight Centre Limited is Australia's largest and leading travel agent. It provides cost-effective domestic and international airfares, resorts, accommodation, car rental, tours, destination information and visas and travel advice. It owns more than 2,500 stores in ten different countries with more than13, 500 employees. The company offers a full travel service for leisure and business travelers in Australia, New Zealand, the United States, Canada, the United Kingdom, Africa, Middle East, Asia, New Zealand, and Europe. Flight Centre revolutionized the retailing of international air-travel in Australia by shifting to a model where profitability was driven by volume rather than margins. “Initially they built a price advantage by bypassing ticketing wholesalers, seeking out less well-known airlines, and also by arbitraging price differentials across markets.”(Sammartino, 2007, p. 175) Flight Centre has developed very quickly, establishing diverse brands to comply with travel market changes and ever-increasing requirements of customers. Its website flightcentre.com was in the topping list of Australian tourism intermediary website for several years. An analysis of the economy: The Macro Environment Analysis (The purpose of the Macro Environment Analysis is to identify possible opportunities and threats to your industry as a whole that are outside the control of your industry.): * An aging...
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...AIR ASIA Case Study Report Nikhil Singh Tomer Business Strategy, BMGT 43370 2nd individual Assignment Addressed to Bernard Faughey MSc Project Management FT I the undersigned confirm that the work submitted here is entirely my own work, and that any work of others which is included has been properly referenced and acknowledged according to normal academic guidelines. NAME: Nikhil Singh Tomer Student No. 14202643 Core concepts : Porter’s 5 forces, SWOT Analysis , Analysing the internal environment, Porter’s Value Chain, Competitive advantage within International context(cost analysis and differentiation) 1.0 Porter’s Five Forces: 1.1 Threat of new entrants There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts, staff hiring, pilot hiring, etc. Thus, the threats of new entrants for AirAsia are very low. AirAsia uses a very simple and effective strategy of selling tickets. People have to buy tickets from AirAsia’s website which they do very easily. Thus, through this process, AirAsia saves a lot of money by not being liable to pay any travel agent. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. It also provides facilities to people like they can themselves print their ticket or boarding pass and thus competitors cannot easily copy this strategy of AirAsia. AirAsia Also has very good relations with Government which a very rare...
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...------------------------------------------------- Ryanair: Strategic Analysis ------------------------------------------------- Ryanair: Strategic Analysis Principles of Marketing and Management Principles of Marketing and Management Table of Contents 1. Executive Summary 2. Issues and Outlook Profile 3. External Analysis 4. Internal Analysis 5. Strategy and Implications from Analysis 6. Action Plan Executive Summary Ryanair is a low-cost Irish airline operating to 178 destinations within the European Union. It’s Chief Executive Officer, Michael O’Leary reported revenues of €3.629 Billion for the fiscal year of 2011, bringing profits of €374.6 Million. As can be seen in the Issues and Outlook Profile, there are a number of issues confronting the firm. Its controversial advertising, employee relations, susceptibility to oil prices and worldwide conflict, and its dependency on its CEO, are all areas which the firm needs to address. The success of the firm has been credited to the fact the company offer the bare minimum services for the cheapest price, negotiate cheap and rewarding contracts with mainly secondary airports, utilise a modern and thus efficient fleet of 291 aircraft, and charge for any additional services which the customer might require. Despite the success of the firm to date there are several areas in which it can improve. Firstly, by continuing its pursuit to purchase Aer Lingus the firm could become one of the largest...
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...Industry Activity A British Airways PLC Activities The Company is engaged in the operation of international and domestic scheduled and charter air services for passengers , cargo and mail. Structure of the company: British Airways is one of the top ten airlines in the world and serves 200 destinations in more than 80 countries. The airline also operates a freight handling centre, Ascentis, which is considered as one of the most advanced freight-handling facilities in the world. Virgin Atlantic Airways Ltd Activities Virgin Atlantic Airways is engaged in the operation of scheduled air services for the carriage of passengers and freight. Structure of the company: Virgin Atlantic was founded in 1984, and is one of UK’s second-largest long-haul carrier airlines serving the world’s major cities. The company’s schedule includes twenty one (21) destinations from its operational centres at Heathrow and Gatwick airports. Global Supply Systems Ltd Activities Global Supply Systems Ltd is a dedicated operation company using only freight aircraft to carry goods without having any dedicated scheduled flights. Structure of the company: The Company is a subsidiary of River Don ltd. Global Supply Systems ltd is majority owned by a British entrepreneur, while Atlas Air inc has a minority shareholding in the company. Channel Express(Air Services ) Ltd Activities The Company operates cargo aircraft on charter contracts in Europe. Structure of the company: The Company was founded...
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...background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai Air Asia and Indonesia...
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...STRATEGY PROCESS MODELS 1.0 STRATEGIC ANALYSIS Business Process And Operation Air Asia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of Air Asia.com as the company key channel of marketing and sales. Exhibit 1 – Air Asia.com Home Page To book a flight with Air Asia, customers can either choose the following channels or simply visit the Air Asia.com home page and follow the below 5 steps. 1. Call centre 2. Sales office and airport sales counter 3. Authorized travel agents 4. Mobile booking via mobile.Air Asia.com or 5. Online (http://www.Air Asia.com) in 5 easy steps as shown below. Step 1 - Search Step 2 - Select Step 3 - Guest & Contact Step 4 - Payment Step 5 – Itinerary The Product Life Cycle (PLC) Air Asia, Airlines Company with 58 flight destination is in the growth phase position of Product Life Cycle (PLC) stage. The growth phase is when loyalty begins to be built up. Some products or services can be taken up by the customer base very quickly and achieve rapid growth. Sales of Air Asia Airlines grew tremendously in every country in which they were available. It is during the growth phase that the product will begin to recover its development and launch costs and slowly move through the break – even mark to begin to make a profit for the organization. During the growth stage of a new...
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...identifying them PESTEL and 5 factors. In the following, I will be discussing the relevant PESTEL tool, with incorporated 5 factor contributions due to the lack of information to plot out the 5 factor model. Politics Rules and legal compliance differs from country to country. In the budget airline segment, the delegalisation internationally is to their advantage for them, as they have now a wider geographical market opportunities. On the other hand, budget flights being able to provide international services is a real threat to the commercial flights, in which airlines which are tied to their countries comes as a hurdle in to all flight traveling to or from the country in efforts to protect their national carriers eg Singapore Airlines is ties to Singapore and Britirsh airways are tied to Great Britain. Economy Cost of the raw materials required for the business are high and an extant of good relationship with the supplier plays an active part in negotiations to drive down prices. (bargaining power of suppliers). Most continental flights generate a higher percentage of profits from loyal first class and business travelers. Social the growth in wealth globally has increased the spending power of the consumers and the demand for traveling is higher. With more savvy and increased expectations of consumers, they need to be constantly updated and firms reactive to their need also process strong negotiating price driver (bargaining power of customers). Technology The use of the internet...
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...which provides main activity that is air transportation service. AirAsia is the starter and leading the low cost travelling in Asia where operate scheduled domestic and international flight and is Asia’s largest low fare. Air Asia has been established seen 1993 and it has been executed start from 18 November 1996. When it is being established, AirAisa was originally founded by the government owned conglomerate, DRB Hicom. But unfortunately, the incident of World Trade Center attacked by terrorist on 11 September 2001 which influence the airline market trend and leading the worst loss in financial. On 2 December 2001, it was purchased by former Time Warner executive Tony Fernandez’s company Tune Air Sdn Bhd and who has remarkable turnaround which making a profit in 2002. AirAsia is the first aviation industry in the region to adopt fully ticketless travel and unassigned seats by implement and maximize their IT field such as yield management system (YMS), computer reservation system (CRS) and enterprise resource planning system (ERP). Those systems given a lot of beneficial in their area such as create its own web page which provides the facilities to book the seat via online and lead the low expenses. However, as of 5 February 2009, AirAsia has adopted allocated seatings across all AirAsia flights, including in their sister airlines which are Indonesia AirAsia and Thai AirAsia. By the year of 2005, AirAsia already had 16 modern Boeing 737 jets. Its company’s headquarter is...
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... | |Read the attached case study: Fly Mango – affordable flying. This exam is based on the South African airline market and the position and | |role of low cost airlines in the market. You are welcome to gather additional information from relevant websites and industry sources. | . Fly Mango – affordable flying BACKGROUND Mango's first flight took to the skies on 15 November 2006 - 15 days after it was launched as the first true low-cost airline in South Africa. It was obviously what people had been waiting for, as during the first ten minutes of going live, the company's website recorded a record-breaking 15 000 booking requests, making it one of the biggest e-commerce events in South Africa's history. Living up to its mandate to make air travel more accessible to the millions of South Africans who have never been able to fly, the airline has entrenched its leadership status by pioneering a number of innovative special offers such as a R1 fare and successful daily lunchtime Happy Hour during June, among others. In fact, since its first flight, Mango has become a firm favorite among South African travelers. KEY STRATEGIES TO REMAIN AT THE TOP OF THE GAME • To deliver even more affordable, convenient and readily accessible air travel operations, Mango has partnered with various market leaders. • Through its partnership with Edcon, South Africa's leading fashion and lifestyle retail chain, the airline offers guests not...
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...The University of the West Indies, St. Augustine Faculty of Social Sciences Department of Management Studies M.Sc. Aviation Management AVMT 6001 – Accounting for Business Decisions AVMT 6001 – Group Project 2 Managerial Accounting - JetBlue Airways Corporation Group Members: Cherrish Bridgemohan - 807001633 Rajiv Debie - 04708006 Israel Duncan - 814004144 Kenrick Duncan - 814002425 Neil Shepherd - 814004177 Signatures: Cherrish Bridgemohan ___________________________ Rajiv Debie Israel Duncan Kenrick Duncan Neil Shepherd ___________________________ ___________________________ ___________________________ ___________________________ November 16, 2014 Table of Contents I. II. Table of Abbreviations ........................................................................................................................ 5 Executive Summary............................................................................................................................ 6 III. Introduction......................................................................................................................................... 7 IV. Background – JetBlue Airways ......................................................................................................... 7 V. Management Accounting Information.............................................................................................. 8 Financial Accounting versus Management Accounting ...........................
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...United Continental Holdings, Inc. Business Analysis Melissa Alamilla MGT 521 May 16, 2012 J. Merryman United Continental Holdings, Inc. Business Analysis The airline industry has had a few disappointments at the market with the economy fluctuations. Since September the 11th, the airlines are struggling to recover from all the destruction that the terrorist did to the airline industry. Customer’s confidence, high fuel prices, environmental problems, and customer service issues are just a few things that have affected the airlines popularity in the public’s eye. With all that said, how would a mutual fund investor feel about investing in an airline? The mutual funds manager is looking at United Continental Holdings, Inc. as a future investment. The mutual funds investor will being with a complete business analysis of the airline. He will investigate how well the airline is doing. He will look at their annual business reports (balance sheet, statement of cash flow, and income statement); complete a SWOT analysis showing the strengths, weakness, opportunities, and threats, global strategies and their technological advantages. After completion of those items, he will check how well the airlines operational processes and procedures are, the airline practices, and how the airlines product and services compare to their competitors. The mutual funds manager will need some background information on United Continental Holdings, Inc. In 2010, an historic merger...
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...Competitor Analysis of Cathay Pacific Airlines Cathay Pacific Airways is an international airline registered and based in Hong Kong, offering scheduled cargo and passenger services to more than 110 destinations around the world. The main competitors of Cathay Pacific are Singapore Airlines and China Southern Airlines . In this competitor analysis for Cathay Pacific we will assess China Southern Airlines only. 1. What are the objectives of this competitor? The objectives of China Southern Airlines are as follows: * To build an international network-oriented airline with core competitiveness and sustainable profitability. * Core value of "customer first * striving for excellence * continuous innovation and contributing to the society", and the vision and mission of "becoming the most favorite airlines for both customers and employees 2. What is its current strategy? Currently, China Southern operates more than 460 passenger and cargo transport aircraft, including Boeing 777, 747, 757 & 737 and Airbus A380, 330, 321, 320, 319. The airline fleet is ranked among the world’s top six airlines (in terms of fleet size) and with Guangzhou and Beijing as its central hubs, the carrier boasts a substantial route network spanning more than 150 destinations in China and more than 40 destinations in Asia with service to Europe, America, Australia and Africa.. * Substantial Flight Capabilities China Southern continues to be a leader in the Chinese aviation...
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...Table of Content Contents Marketing Audit 2 External analysis 2 Macroenvironment 2 Microenvironment 5 Internal analysis 9 AirAsia Marketing Mix (4ps) 9 SWOT Analysis 11 Marketing Objectives 17 Marketing strategy 17 Action Programs 25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval...
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...SHERATON MONTREAL (Braithwaite) “I will give you my decision in about a week,” said Georges Villedary, directeur general of the Le Centre Sheraton, Montreal, as he put down the phone and looked pensively at the letter before him. The letter, dated March 15, 1994, was from Alitalia requesting a one-year contract for 40 room at $42 per night. In addition, the hotel would have to provide a crew allowance of $25,000 per day. Bills are to be paid within seven days of receipt of statement on a weekly basis. The problem facing Georges was a simple one: does he take Alitalia and fill the 40 rooms for 365 days at $42 or does he refuse the business and hope that he can sell the rooms at the full rack rate of $105.00? Last year he had 115 nights sold out. General Background of the Hotel Le Centre Sheraton was located in the downtown area of Montreal. It was viewed as a corporate/convention hotel. In 1987 the hotel was named winner of the Canadian Automobile Association “Four Diamond Award” and the “Four Star Award” from the Mobil Travel Guide. The hotel had 824 rooms including the Sheraton Towers – a prestigious five-storey hotel within a hotel. The Towers had its own check-in facilities, lounge, and special amenities. It contained 131 rooms including 16 suites. The balance of the hotel offered a choice of king, queen, and double beds with an additional 24 suites and six rooms specially equipped for people with disabilities. All rooms were equipped with a pay-TV system. The hotel operated...
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