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Transcript of Tiger Airways
Nick Redfern Tiger Airways BACKGROUND:
- Low Cost Airline
- Commenced services in Australia in November 2007
Subsidiary of Tiger Airways Holdings (Singapore based company)
- 2011 forced to ground all flights in Australia due to safety concerns regarding maintenance of its aircraft
- Closure of Adelaide and Avalon airport base to recover losses Tiger Airways Core Service:
- Low-cost domestic and international flights
- Company focus is competitive pricing
- Tiger sacrifices service quality for low cost flights
- Struggling to meet demand- only 74 % of flights on time
- 3.5% flight cancellation rate
- Company labelled worst overall airline in Australia
- Only 49% satisfaction rate Tiger Airways Services People processing:
- Customers have to be in physical location
(check-in, flight duration and departure)
- Service organisation provides treatment for customers physical posessions
Tiger Airways customer luggage Category of Service Products: Pre-purchase stage:
1. Need Awareness: required to travel arises
2. Information search: online searches, brochures etc
3. Evaluation of alternatives: assessing flight options
4. Purchase decision: selection and payment of flight Three Stage Process Service encounter stage:
Occurs during customers actual service experience with Tiger and service encounters range from high to low contact between Tiger and customers.
Optimal level of contact: HIGH Post purchase stage:
Occurs after service has been encountered.
Evaluation of Tiger Airways service performance
eg) customer satisfaction, future service intentions Information & risks in decision making PERCEIVED RISKS:
Temporal risks: Flight delays and cancellations
Financial risks: Foregone flight costs because of cancellations, and other additional costs INFORMATION:
Most information sought in pre-purchase stage
Greater risk= more information required
Lower risk= less information required SUPPLEMENTARY SERVICES FOCUS STRATEGY EXTERNAL ENVIRONMENT INDUSTRY ANALYSIS:
International and domestics airline industry
Economical: -2008-09 Economic downturn
-Industry revenue grow by 0.2% annually over next 5 years
Social: - increase in level of customisation Technological: - online flight booking -
- increase smart phone usage