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Semra Orak [email protected] Fazli Yildirim [email protected] How Mobile Based Applications can Affect Customer Service Quality on Aviation Companies: a Case Study in Turkey

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Page 1: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Semra Orak [email protected]

Fazli Yildirim [email protected]

How Mobile Based Applications can Affect Customer Service Quality on Aviation Companies: a Case Study in

Turkey

Page 2: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

ContentsIntroduction

About aviation sector Sector dynamics Literature review of customer satisfaction Civil aviation companies in Turkey

Reseach method (comparative method) FindingsConclusion

Page 3: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Aviation Sector The emerging forms of business models in

the airline industry; How the carrier generates revenue, its

product offering, value-added services, revenue sources, and target customers.

Three main sets of airline business models defines the competition:

1. Full network carriers (FNCs) 2. Low-cost carrier or LLCs3. Charter carrier or CC

Page 4: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

In airline marketing customer satisfaction is an important antecedent of customer loyalty.

Airline managers who are seeking to provide customer loyalty, firstly should keep the service quality at high level and provide customer satisfaction. They provide positive word-of-mouth communication (loyalty).

Understanding passengers’ needs and expectations

Developing high quality service support a competitive advantage in comparison with their rivals.

Sector Dynamics

Page 5: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Indeed, customer satisfaction is carried out in academic studies;

Found that three measures of customer

service; mishandled baggage, ticket over-sales, and on-time performance,

Sector Dynamics

Page 6: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Literature Review of Customer Satisfaction

Price, safety, timelines, baggage transportation, food quality, seat

comfort, check-in process and on-board services

Gourdin (1998); Elliot and Roach (1993)

Seat comfort, safety, courtesy of staff Tsaur, Chang & Yen (2002)

Airlines reliability (safety) Fick & Ritchie (1991)

Aircraft type Truitt & Haynes (1994)

First customer contact / interaction with contact employees Carlzon (1987); Bitner, Booms & Tetreault (1990)

Airline brand, price, sleep comfort Boetsch et al. (2011)

Frequency and timings, punctuality, airport location and access,

seat accessibility/ticket flexibility, frequent flyer benefits, airport

services, in-flight services

Shaw (2007)

Employee’s service, safety & reliability, on board service, schedule,

on time performance, frequent flyer program

Liou & Tzeng (2007)

Flight schedule, total fare, flexibility, frequent flyer program,

punctuality, catering, ground services

Teichert et al. (2008)

Level of concern and civility, listening and understanding,

individual attention, cheerfulness, friendliness, courtesy

Babbar & Koufteros (2008)

Willingness to correct errors, task proficiency, courtesy,

friendliness, tolerance

Mersha & Adlakha (1992)

On-time performance, overbooking, mishandled baggage, customer

complaints

Tiernan et al. (2008/2)

Page 7: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Civil Aviation Companies in Turkey

13 airlines (4*cargo transportation)

1.THY-Turkish Airlines2.Pegasus Airlines3.Atlas Global4.Sun Express5.Onur Air6.Anadolujet7.Borajet8.Corendon9.Tailwind10.Freebird11.MNG (Cargo)12.ACT (Cargo)13.ULS (Cargo)

Page 8: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Domestic Passenger Traffic Company Shares 2013

Thy-Turkish Airlines

PGT-Pegasus Airlines

OHY-Onur Air

KKK-AtlasGlobal

SXS-Sun Express

BRJ-Borajet

FHY-Freebird

CAI-Corendon

TWI-Tailwind

THY; 52.6PGT; 26.9

OHY; 8.2

KKK; 6.2

SXS; 5.5

BRJ; 0.60000000

0000001

FHY; 0.00800000000000001

CAI; 0.00800000000000001TWI; 0.002THY

PGTOHYKKKSXSBRJFHYCAITWI

Page 9: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

International Passenger Traffic Company Shares 2013

THY; 63.5PGT; 14.7

SXS; 7.8

OHY; 4

FHY; 3

CAI; 2.5

KKK; 3.2 TWI; 3.2 BRJ; 0.03OTHERS; 0.00001

SalesTHYPGTSXSOHYFHYCAIKKKTWIBRJOTHERS

Page 10: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Research Method Comparative Research Method is used with the 6

leader companies in Turkey. Companies in Turkey is compared with

passenger size, plane size and establishement date.

Measures of customer services is also compared. Techological tools are examined with web and

mobile applications. Web page and mobile aplication capabilities are

surveyed. Two leader companies such as Turkish Airlines

and Pegasus Airlines companies are examined.

Page 11: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Companies in Turkey

Arline Established Aircraft*2014 Passenger*2014

THY/FCC 1933 231 54.675 mio

Pegasus/LCC 1990 55 19,74 mio

Onur/LCC 1992 21 *flight 33.178

Atlas/FCC 2001 18 *flight 29.612

Sun express/LCC 1989 53 7,3 mio

Anadolu jet/LCC 2008 26 8.484 mio

Page 12: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

MEASURES OF

COSTUMER

SERVICES

THY PEGASUS ONUR AIR ATLAS SUNEXPRESS ANADOLUJET

Price high lower loweraverage lower lower

Brand leader follower averageaverage average average

Safety high high high high high high

Ontime performance unpublished %90,94(03.2015) unpublished unpublished unpublished unpublished

Overbooking rare rare rare rare rare rare

Lost baggageRare

rare rare rare rare rare

Seat comfort high lower lower high lower lower

In-flight services free paid paid free paid paid

Food quality high Medium Medium Medium Medium Medium

Online check-in yes yes yes Yes Yes yes

Airport location Europe-Asia side Europe-Asia side Europe side Europe-Asia side Asia side Asia side

Ticket flexibility High Lower Lower Medium Lower Lower

Frequent flyer benefit yes yes none yes none yes

Page 13: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Technological Tools

Web App. itunes android

THY/FCC + + + +

Pegasus/LCC + + + +

Onur/LCC + + + +

Atlas/FCC + + + +

Sun exp/LCC + none none none

Anadolu jet/LCC + + + +

Page 14: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Website THY Pegasus OnurAir AtlasGlobal Sunexpress anadolujet

Booking Reservation + + + + + +

Check-in + + + + + +

Flight status + + + + + +

Hotel reservations + + + + + none

Car rent + + + + + +

Rezervation fix. none + + none none none

Excess baggage + none none + none

Seat selection + + none + + none

Meal none + + none + none

Insurance + + none + none none

Passenger Rights + + + + + +

Contact Center + none + + + +

Canpaigns + + + + + +

Visa Services none + none none none none

Airport Transfer none + + + + +

Minors + none + + + none

Web Page Capabilities

Page 15: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Web Page Capabilities With advanced technology, passengers have tendency to switch

from manual tickets to e-ticketing by using airlines’ websites. Located on the homepage of airlines' websites, flight search tool

is designed in an easy to understand way for the passengers. Usually on the home page and the left side where the most visible place.

Booking, payment, seat selection and meal selection options, which are the next steps after travel planning, are substantial for the customer satisfaction.

Special purpose applications like visa procedure, hotel booking and car rental services which are located on the homepage of some airlines’ websites meet customer expectations and demands.

Flight status on the homepage of almost all airlines’ website enables the passengers to have information about actual departure and arrival times.

Page 16: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Mobile Application THY Pegasus Onurair AtlasGlobal Sunexpre

ss

Anadolujet

Mobile Booking &

Reservation 

+ + + + - +

Miles & Smiles /

Plus Card/Jetmil

+ + none + - +

Mobile Check-in  + + + + - +

Mobile Boarding Pass none + none + - none

Arrival-Departure  + + + + - +

Timetable  + + + + - +

Seat selection + + none + - +

Meal none + none none - none

Luggage Control none none none none - none

3D secure none + none none - none

Version 1.0.0.40 1.3.1 1.0.6 1.9.3 - 1.2.1

App.created 12.09.2014 30.10.2014 26.08.2014 02.02.2015 - 21.12.2014

User rating in itunes 4+/90 4+/1824 4+/147 4+/34 - 4+/234

User rating in android 4,4/12291 4,0/10932 3,6/2637 4,1/2397 - 4,0/3883

App.cost free free free free - free

Language Eng+Tr Eng+Tr 13* Eng - Eng

Page 17: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

Mobile Application Capabilities

With the introduction of smart devices in our lives, airlines have adapted their business model to the latest developments and succeeded to reach their customers.

Applications have started to launch by Turkish Airlines companies since 2014.

Applications was voted by passengers with high scores and it is proved that customer satisfaction is realized.

Available in the application, some common features like reservation, check-in, mobil barkod (for boarding) and arrival-departure exist.

Special services provided by airline companies to their customers are also included in the application..

Thanks to “other languages tool” in the applications, the passengers in other countries are also benefited from the applications.

Page 18: Semra Orak semra.orak@okan.edu.tr Fazli Yildirim fazli.yildirim@okan.edu.tr How Mobile Based Applications can Affect Customer Service Quality on Aviation

ConclusionMobile aplications and web pages services affects the

customer satisfaction which were examined throughout the research.

Research compares the diferrentiated factors and desribe the framework based on mobile application and web services in Turkey.

Most of the aviation companies follows the new technological tools.

Full cost airlines focus on inflight service quality, low cost companies focus on pre and post flight services with technological tools and aims mass customization with difeerent services.

Loyalty program are mainly used in the sector. Company surveys underlines that customers satisfaction is

related to mobile application and web page services.