Case-Study-Cebu-Pac Done

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CEBU AIR TRAVEL

Founded on 1996 as Cebu Air, Cebu Pacific offers scheduled flights to 33


domesticdestinations, and to 16 international destinations in 10 countries. It is
currentlythe country's leading domestic carrier, serving the most domestic
destinationswith the largest number flights and routes, and equipped with the
youngest fleet.Its main base isNinoy Aquino International Airport, Manila, with
other hubs
atMactanCebu International Airport,Francisco Bangoy International Airportand
Diosdado Macapagal International Airport. The airline is a subsidiary of JG
Summit Holdings, controlled by the Gokongwei family - one of the richest
Filipino-Chinesefamilies based in the Philippines. Cebu Pacific is currently
headed by Presidentand CEO Lance Gokongwei, presumptive heir of John
Gokongwei, the chairmanemeritus of JG
Summit.With a company slogan, “It’s time every Juan
flies” Cebu Pacific
enteredthemarket with a promise to give "low fare, great value" to every Filipin
o whowanted to fly. It operates a fleet of 25 Airbus (10 A319 and 15 A320) and
8 ATR72-500 aircraft, the youngest fleet in the Philippines.
Cebu Pacific remains to bethe pioneer in creative pricing strategies as it
manages to offer the lowest fare inevery route it operates.
The mission of Cebu Pacific is to bring people together through an
affordable,reliable mode of travel that is delivered
with good customer service, and toenhance the quality of life of the
communities and to be an active partner in thenation's progress. While its
vision, is to become the most successful low-costcarrier in the Asia-Pacific
region; to be the best domestic airline and the Filipinotravelers' first choice,
recognized with unparalleled genuine, warm and caringservice; to become the
pioneer in innovation and commitment to excellence. Toachieve its vision, their
goalis to become the employer of choice by providingmany opportunities for
professional and personal growth in learning, egalitarianand non-bureaucratic
workplace; by employing quality people and by adoptingstate of the art
equipment, facilities and systems to ensure consistent highlyefficient levels of
operation. There is commonality and direct relationship in definition. In an
airline industry,the things that the air-traveling public has come to expect are
about on-
timeperformance, schedule reliability and a smooth, comfortable flight. Quality
isdefined as the ability of a product or service to consistently meet or
exceedcustomer expectations.
By emphasizing the importance of customer service, social responsibility,
valuefor teamwork, care for people, innovation and technology, as core values,
there isadherence to quality.Several Key Dimensions of service quality which
are stated and/or implied in theprevious statements include understanding
customers’ needs and wants, access,communication, security, reliability,
responsiveness, and tangibles which are
veryimportant while there is continuous improvement, employee empowerment
,benchmarking, and knowledge of analytical tools in Total Quality Management
aswhat is implicit.
Cebu Pacific entered the market with a promise to give "low fares, great
valueservices". They pioneer in creative pricing strategies to manage lowest fare
inevery route it operates. There is re-fleeting program so as to double its
capacity. Cebu Pacific is the onlyairline in the Philippines operating a 100%
brand-new fleet with 24 Airbus (10A319 and 14 A320) and 8 ATR 72-500
aircraft.It is the first local airline to introduce e-ticketing, prepaid excess
baggage andseat selection in the country.Cebu Pacific has partnered with
various destination hotels, car rental service,travel insurance and
entertainment ticketing service to provide its guests a moreconvenient travel
experience. It became the first airline in the Philippines to usesocial media,
through its Twitter Account.It uses forecasting. The airline targets to reach the
100 million passengers markin 2015. It had more than 1 million passengers in
the month of April 2011, arecord for the rapidly growing airline.
In an airline industry, most of the problems related to quality are
sometimessubjective as in the case of complaints which are
sometimes judged againstcustomer expectations, or emotions or even objective
when it comes to talk abouttangibles which are important component in a
service industry. Also, there
areexternal factors we call “force majeure” or “acts of god” which threatensoper
ations.For example, in its Clause 8 - General Terms and Conditions of Carriage
of Passengers and Baggage, regarding the schedules, cancellations, delays and
diversions of flights, it says there that, the Airline may cancel, terminate or
delayany flight, or suspend the operation of a flight route at any time after a

reservation has been made only when justified by circumstances beyond theAir
line’s control.On the other hand, complaints on the tangibles are noted like on
issues aboutcredit card payment facility, on-line check in facility, seat comfort,
prices of foodand beverages, food selection, and others.

Title Being the best aircraft carrier

View Point external factors

Time Content complaints which are sometimes judged against customer


expectations, or emotions or even objective when it comes to talk
about tangibles

Introduction
Cebu Pacific Airlines always find its way to sustain their mission and
vision with innovating ideas that will provide convenience to its
customer. Bringing the best quality of service among all the Airlines.
Operating a 100% brand-new fleet with 24 Airbus (10A319 and 14
A320) and 8 ATR 72-500 aircraft. It is the first local airline to
introduce e-ticketing, prepaid excess baggage and seat selection in
the country. Cebu Pacific has partnered with various destination
hotels, car rental service, travel insurance and entertainment
ticketing service to provide its guests a more convenient travel
experience. However there are instances that airlines couldn’t avoid
like “force majeure” or “acts of god” which threatens operations.

Statement of the “force majeure” or “acts of god”


Problem
judged against customer expectations

emotions
Alternative Course of
Action Having a proper way or method to address this situation like if the
flight had been cancelled give them free accommodation or decent
food and make them feel that the airlines know what to do in this kind
of scenario.

One solution for judged against customer expectation is to have a


proper hotline or response team to know what seems to be the
problem and settle it as much as possible.

Sudden outburst of emotion is mostly came from frustrations and


disappointment having them feel that the airlines is there to listen for
their concern is a big sighs of relief. Responding to the concern is a
must.

Recommendation
“force majeure” or “acts of god”

Having a proper way or method to address this situation like if the


flight had been cancelled give them free accommodation or decent
food and make them feel that the airlines know what to do in this kind
of scenario.

I chose this solution because it’s always been the problem for
different airlines and the answer is right in their customer. What the
customer want is first to talk to personnel that have knowledge about
the scenario that is happening. Second, have some solution
pertaining to current problem which is delayed flight for how many
hours. How? Give them proper accommodation and food and
schedule their flight as simple as that. Don’t expect them to keep
calm in response of hours of delayed flight, no accommodation given,
and simple snacks given. Have some sense of responsibility.

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