WORLD

UNIVERSITY
OF BANGLADESH

01 April 2020
Department of Tourism &
Hospitality Management
Subject: Transportation Management

Assignment on Case Study

Submitted By
Submitted To Zaman
Minat Orvil
Shahnawaz Kamal
Department : THM
BBA in THM DU, MBA THM
DU Batch : 13th
Lecturer in the Department of
Roll
Tourism & Hospitality : 181
Management, World University
of Bangladesh

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. Answer to question 1
Mr. Karim is a business man and he used to do his job on time. He is very punctual in every
aspect of life. Since he started to do business he never gets late for a meeting. Knowing the
habits of Mr. Karim we can come to a decision that his psychological factor must be the
functional utility.
Because It represents the perceived utility of a mode which is strictly limited to it’s
performance as a mode of travel for a specific purpose. The most common aspects of
psychological functional utility related to various modes for commuting purposes tend to he
arrival on time, direct route, safety, no transfers, having a seat, low maintenance costs, parking
problems, etc. In other words, the psychological world of functional utility is limited to those
mode expectations which directly relate to the function the mode is presumed to perform.

People around the world usually notice Mr. Jason easily for his lifestyle, popularity and
appearance. He is some media personnel works in different movies around the world. So Mr.
Jason’s psychological factor is social-organizational utiliy. they are selectively associated with
certain socioeconomic, demographic and occupational groups of people. These socially
anchored stereotypes produce certain mode utilities or disutilities which become an important
dimension of user expectations.
Mr. Jason also has the same nature to him that refers his psychological factor is social
organizational utility

Jassica always desired to ride on an airplane. But she did not belong to a solvent family. After
her study being completed she joined multinational company. She has to go on a meeting and
her company allows her to choose her transportation mode.
Here Jessica’s psychological factor is curiosity utility. Because her desired turns into curiosity
after long time. She wanted travel by an airplane from her childhood. So basically curiosity
utility is by definition, short-lived. Once a new innovation becomes old hat, it is more likely to
be evaluated on the basis of other four types of customer expectations. However, when two
modes of travel are equal in regard to other dimensions of psychological utility, the mode
which offers innovative ideas, is likely to gain marginal utility due to curiosity, novelty
expectations of consumers.

CASE DISCUSSION QUESTIONS ON SINGAPORE AIRLINES

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 Answer to question i

KrisFlyer is the name given to the frequent flyer and airport lounge programs of Singapore Airlines.
Krisflyer can really attract their consumer. This is happen because of their reliability. They creat the
world’s first blockchain based airline digital wallet. That was launched in July 2018. KrisFlyer manages
both the earning of elite frequent flier status and benefits (priority services, lounge access, etc.) and the
travel rewards program (award travel).

Once you become a KrisFlyer member, you can earn both Singapore Airlines KrisFlyer Miles
and Elite Miles. KrisFlyer Miles are your award miles that can be used to redeem award travel;
whereas Elite Miles are earned to obtain elite status. KrisFlyer Miles are earned when flying
Singapore Airlines/SilkAir, Star Alliance partner airlines and non-alliance partner airlines such as
Alaska Airlines/Virgin America, Virgin Atlantic, Virgin Australia and Vistara.

So the success criteria of krisflyer is really good. Because it helped to lead Singapore airlines in a very
high level.

Answer to question ii
Singapore Airlines has been evaluated as one of the most comfortable and safest airline, it
is known as the safest airline company with the youngest aircraft group, and the average age of
the aircraft is 6.6 years. Singapore Airlines has the feature which design to solve meals aircraft
and quality issues advisory group of airlines in the world of airlines. Singapore Airlines
International Culinary Panel was founded in 1998, whose members are well-known chefs
around the world, to design rich SIA passengers world-class airline meals. In addition, Singapore
Airlines First and Business Class passengers enjoy the “Book the Cook” service in the 24 hours
prior to departure. Customers could choose the favored food in the 20 kinds of food, which
could satisfy the customers who have personal taste.
Here we can come to a decision that Singapore airlines group devoted themselver for
the betterment of Krisflyer. There is a couple of reason. First Krisflyer helped this group
to reach the best level of airlines in the world. And the second one is they are improving
their customer satisfaction, loyality and strengthening their brand.

Miles are earned and redeemed on Singapore Airlines own services as well as with
KrisFlyer partners. Partners include all Star Alliance members, SilkAir, Virgin Atlantic,

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 Virgin Australia, and numerous hotel chains and car-hire companies. KrisFlyer is divided
into KrisFlyer, KrisFlyer Elite Silver and KrisFlyer Elite Gold, which correspond to Star
Alliance Silver and Gold, respectively.

Elite Silver and Elite Gold status is given to passengers who have accrued 25,000 and
50,000 miles (80,000 km), respectively, within a 12-month period. The 12-month period
is predefined according to when a passenger initially applied for KrisFlyer membership,
so travelling 25,000 miles (40,000 km) over a 12-month period may not qualify for Silver
status unless it corresponds with the 12-month period assigned to them by Singapore
Airlines.

Singapore Airlines flights in booking class G (group and promotional fares) and SilkAir
flights in booking classes W and L earn no miles, while Singapore Airlines flights in
booking classes V, Q, N and T (promotional fares) will receive between 10% to 50% of
mileage. This happen obviously for the customer satisfaction as it is the best airlines in
the world.

Here are the explanations why Singapore airlines devoted themselves for Krisflyer.

Anwer to question iii

I. The key areas to better customer experience

The service quality

. In the airline environment, Singapore airline has always outperformed its competitors. It has
never posted a loss on annual basis, has achieved substantial and superior returns compared to
its industry and has received hundreds of achievements awards for its service quality. This
success has been achieved by the company through the dual process of differentiation through
service excellence and innovation coupled with cost leadership among its peers. Singapore
airline has achieved sustainable competitive advantage and has consistently out performed its
competitors through out its three and half decade history. The key success to this may be said to
be the fact that it manages to navigate through two poles which most companies think are
distinct.

Expand the company by assigning with many association

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 At cooperate level, Singapore airlines works with diversification. The airline group has 36 direct
subsidiaries and associated companies which includes Singapore airline terminal, Singapore
engineering company and Singapore airlines cargo.(Singapore airlines,2008). Its airline
subsidiaries which include 100% ownership of Silk air, 49% of Tiger airways and 49% of Virgin
Atlantic is said to cover the customer areas within the industry in terms of domestic and
international distance. As part of its international strategy, SIA in 2000 joined the star alliance
which has been noted earlier in the report.

Answer to question iv

Service is that kind of thing in transportation business which can lead your
company higher to highest. Service – A means of delivering value to customers by facilitating
outcomes customers want to achieve without the ownership of specific costs and risks. They must add
value to the customer, support his or her business objectives and be perceived as a coherent whole.

: Distribution means to spread the product throughout the marketplace such that a large
number of people can buy it. Distribution involves doing the following things: ... Tracking the
places where the product can be placed such that there is a maximum opportunity to buy it.

Distributing services. It refers to delivering core and supplementary service elements

through selected physical and electronics channels. It involves decisions about where,
when and how. Product flow: in some cases (people processing and possession
processing) physical facilities or local sites are needed to deliver the service.

Service characteristics that have been subjected to research and assessment include

1) individual travel costs,

2) travel duration,
3) travel safety,
4) social costs of transport,
5) ability to create a traffic service and
6) other elements of the traffic service.

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Air transport has the following characteristics:

 Unbroken Journey: Air transport provides unbroken journey over land and sea. ...
 Rapidity: ...
 Expensive: ...
 Special Preparations: ...
 High Speed: ...
 Comfortable and Quick Services: ...
 No Investment in Construction of Track: ...
 No Physical Barriers:
 Airline Reservation System is one of the intermediaries of the distribution channel in the
aviation industry. An airline reservation system is part of the so-called passenger service
systems (PSS), which are applications supporting the direct contact with the passenger.
 Airline reservations systems contain airline schedules, fare tariffs, passenger
reservations and ticket records. An airline’s direct distribution works within their own
reservation system, as well as pushing out information to the GDS. A second type of
direct distribution channel is consumers who use the internet or mobile applications to
make their own reservations. Travel agencies and other indirect distribution channels
access the same GDS as those accessed by the airlines’ reservation systems, and all
messaging is transmitted by a standardized messaging system that functions on two
types of messaging that transmit on SITA’s HLN [high level network]. These message
types are called Type B [TTY] for remarks-like communications and Type A [EDIFACT] for
secured information. Message construction standards are set by IATA and ICAO, are
global, and apply to more than air transportation. Since airline reservation systems are
business critical applications, and their functionally quite complex, the operation of an
in-house airline reservation system is relatively expensive.
 Prior to deregulation, airlines owned their own reservation systems with travel agents
subscribing to them. Today, the GDS are run by independent companies with airlines
and travel agencies as major subscribers.
 As of February 2009, there are only three major GDS providers in the market space:
Amadeus, Travel port (the merged World span and Galileo systems), Sabre and Shares.
There is one major Regional GDS, Abacus, serving the Asian marketplace and a number
of regional players serving single countries, including Travel sky (China), Infini and Axess
(both Japan) and Topas (South Korea).

Availability display and reservation (PNR)

Users access an airline’s inventory through an availability display. It contains all offered flights
for a particular city-pair with their available seats in the different booking classes. This display
contains flights which are operated by the airline itself as well as code share flights which are

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operated in co-operation with another airline. If the city pair is not one on which the airline
offers service it may display a connection using its own flights or display the flights of other
airlines.

The availability of seats of other airlines is updated through standard industry interfaces.
Depending on the type of co-operation it supports access to the last seat (last seat availability)
in real-time. Reservations for individual passengers or groups are stored in a so-called
passenger name record (PNR). Among other data, the PNR contains personal information such
as name, contact information or special services requests (SSRs) e.g. for a vegetarian meal, as
well as the flights (segments) and issued tickets. Some reservation systems also allow storing
customer data in profiles to avoid data re-entry each time a new reservation is made for a
known passenger. In addition most systems have interfaces to CRM systems or customer loyalty
applications (aka frequent traveler systems).

Before a flight departs the so-called passenger name list (PNL) is handed over to the departure
control system that is used to check-in passengers and baggage. Reservation data such as the
number of booked passengers and special service requests is also transferred to flight
operations systems, crew management and catering systems. Once a flight has departed the
reservation system is updated with a list of the checked-in passengers (e.g. passengers who had
a reservation but did not check in (no shows) and passengers who checked in, but didn’t have a
reservation (go shows)). Finally data needed for revenue accounting and reporting is handed
over to administrative systems

Key Success Factors for the Next Decade

1. National Agenda: A long term, structured national plan (as part of a broader transportation
plan) with an appropriate policy framework is necessary to attract capital.

2. Regulator: A modern, unified, professional regulator, with enhanced expertise.

3. PSUs: Air India and the AAI need to be gradually privatized, while corporatization of air
navigation services is essential.

4. HR & Training: World class education & training infrastructure is essential for safe and
efficient aviation.

5. Safety: Implementation of safety systems and culture which are comprehensive, enforced
and collaborative.

6. Liberalisation: Market access should be liberalized but there must be a level playing field for
Indian operators.

7. Taxation: A less punitive fiscal regime -particularly sales tax on fuel -which recognizes that
airlines must be viable, is imperative.

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8. Investment: Private sector capital should be encouraged in airport development.

9. Profile: Enhanced profile and recognition of aviation within government. And state
governments must be educated on the role that aviation plays economic competitiveness

CASE DISCCUSION QUESTIONS ON SOTHWEST AIRLINES

Answer to question i

Southwest airline has “Southwest spirit”, which is deep in everyone’s heart. They treat each
other like family members. Good interpersonal relationship and communication ability won’t
leave with Kelleher. If Kelleher leaves Southwest, the organization would still be able to
function with the same dedication as before.

Southwest emphasizes customer service. It is the company’s policy not only to treat the
customer in the best way possible, but also to treat employees as internal customers. This way,
southwest becomes a comfortable and fun place to work. “If you are comfortable, you are
smiling more and you give better service”, says Colleen Barrett (p.7 in the case study text).
Another example of the Southwest attitude towards its employees is a quote by Herb Kelleher
(CEO): “Fun is a stimulant to people. You don’t have to surrender your individuality to work for
Southwest Airlines, work is important don’t spoil it with seriousness” (p.9 ,the case study text).

The Southwest culture is to serve people in a fun and innovative way, but at the same time,
make profits. Southwest’s human resources department, also called” The People Department,”
has its own principles to select employees. The motto is, “Employees are hired for attitude and
trained for skill.

All the employees of Southwest Airlines work as a big family, and everyone in the crew share
the responsibility of cleaning up the aircraft, and enabling their planes to have the take-off
again after a spending very short period of time after the ground duty. Southwest Airlines have,
in fact, pioneered a rapid turnaround service on keeping its aircraft on the ground for less than
twenty minutes. Beside the fact that they have all the people working to get the plane ready for
the next flight despite of the original duty , Southwest Airlines has also gone into the effort of
change the internal design of the aircraft in order to speed up the time of ground duty.

Every employee of Southwest is creative and has his or her own personality. Their original
clothing and dress, humorous conversations, and interesting broadcasting lead to a relaxing and

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delighted atmosphere. It can relieve the stress and pressure for passengers that take Southwest
Airlines as well as create additional entertainment for everyone onboard without spending
additional money. Too much emphasis on deference can build a wall between people. It’s hard
to express ones true self in an environment that is focused on providing the most professional
service. Instead, Southwest employees always treat everyone properly with their heart, and
they do it not because the company requires them to, but because they want to. This is part of
the Southwest spirit.

Just as wearing one’s favourite clothes can help let someone relax, Southwest Airlines also has
many ways to let their employees relax as well. There are gadgets, games, and other creative
outlets readily available on planes and in the corporate offices to make it easy for employees to
engage in breaks. Having a humorous time cuts down on the time spent on feeling stressed and
creates a work environment that is interesting and fun. Every employee of Southwest is
emotionally-connected with their company, and as such is willing to do anything for the
beneficial growth of Southwest. Every employee infects each other with an extreme sense of
joy and satisfaction; therefore as a result, customers are also influenced by the employees’
delight and are, consequently, may also feel happiness. This is how Southwest became one of
the most efficient airlines.

Answer to question iii

Southwest Airlines Co. is a major American airline headquartered in Dallas, Texas, and is
the world's largest low-cost carrier.

The airline was established on March 15, 1967 by Herb Kelleher as Air Southwest Co. and
adopted its current name, Southwest Airlines Co., in 1971, when it began operating as an
intrastate airline wholly within the state of Texas, first flying between Dallas, Houston and San
Antonio. The airline has more than 60,000 employees as of September 2019 and operates about
4,000 departures a day during peak travel season.

As of 2018, Southwest carries the most domestic passengers of any United States airline. The
airline has scheduled services to 101 destinations in the United States and ten additional
countries. Its most recent expansion occurred in March, April, and May 2019 with service to
Honolulu, Maui, and Kailua-Kona respectively. Southwest began to expand service to Lihue in
mid-November 2019, and expanded to Hilo in January 2020.

In an airline business customer is everything. Without the customers this cannot be happen. So as
a business company southwest airlines should look for the customer satisfaction first. The
secondly how to grow the company fast and earn more benefits to run the company smoothly. To
make this happen first of all give the customer a chance to give feedback properly. Taking
customer feedback one can easily understand that what actually a customer want. After knowing

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all the customers feedback the company can make an average that what their customer actually
want from them. What thing can actually make them more satisfied.

If the customers are happy they have no chances to lose them at all. So no customer losing is a
very good sign of a company.

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