WORLD

UNIVERSITY
OF BANGLADESH

Department of Tourism &

Hospitality Management
Subject: Transportation Management in
Tourism

Assignment on Case Study

Submitted By
Submitted To Rupale Sarkar Ratri
Shahnawaz Kamal Department : THM
BBA in THM DU, MBA THM
DU Batch : 13th
Lecturer in the Department of
Tourism & Hospitality Roll : 179
Management, World University
of Bangladesh
 Answer to question 1
According to Mr. Karim’s activities his psychological factor is functional utility. Being a
business man he always like to do his all the work in time. He is very punctual in every sphere of
his life. He never missed single meeting. All his signs are functional utility.
So basically functional utility 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.

Mr. Jason is a media person. He works in different movies around the world. People around the
world notice him easily for his life style, popularity and appearance. 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.
 Answer to question 2
Q1. What are the success criteria of Krisflyer?

I. Singapore Airlines was named “The Best Airline in the World” for 22 years. It won the
best international airline in the world by Travel + Leisure's World's Best Awards. It held
the no. 1 spot in terms of comfort, customer service, food and value. And 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).
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).

The KrisFlyer programme and PPS Club structures, benefits (including without
limitation award tickets, upgrade, PPS Value, PPS Rewards and Elite Gold Rewards)
and other features (including but not limited to KrisFlyer miles) are part of a loyalty
programme which has as its objective, the promotion of the purchase of goods or use
of services provided by Singapore Airlines or any partner specified by Singapore
Airlines. Singapore Airlines does not purport (whether through the KrisFlyer
programme, the PPS Club structures, benefits (including without limitation award
tickets, upgrade, PPS Value, PPS Rewards and Elite Gold Rewards) and other
features (including but not limited to KrisFlyer miles) or otherwise) to operate a
payment service regulated under the Payment Services Act and Singapore Airlines is
not licensed, approved, registered or regulated under the Payment Services Act.
Consequently, holders and users of the KrisFlyer programme, the PPS Club
structures, benefits (including without limitation award tickets, upgrade, PPS Value,
PPS Rewards and Elite Gold Rewards) and other features (including but not limited
 to KrisFlyer miles) will not be afforded the relevant protections set out in the
Payment Services Act and related subsidiary legislation, regulations, circulars,
notices, directions and guidelines. Should KrisFlyer miles be able to be purchased,
such purchased KrisFlyer miles may only be redeemed in Singapore for the payment
or part payment of goods or services (or both) provided by Singapore Airlines and/or
the related corporations of Singapore Airlines.

Q2. Do you think Singapore Airlines group devoted themselves year round for the
betterment of Krisflyer program? – Why?

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, 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.

Q3. Identify the key areas to better customer experience.

III. 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
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.

Better pricing policy

Singapore airlines is the world’s best airlines. Besides this it is also the most
expensive airlines in the world. Every one cannot purchase their ticket. So it
 would be better that they arrange more economy class flight and average ticket
price that average customer also travel by Singapore airlines.

Q4. Based on your knowledge on service characteristics specially for the transportation
company, distribute the service among them.

IV. Distribution is the process of making a product or service available for the consumer or
business user who needs it. This can be done directly by the producer or service provider,
or using indirect channels with distributors or intermediaries. ... The overall distribution
channel should add value to the consumer.
And the main thing which is the 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.
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:

services have grown dramatically in recent years, and are growing quickly in the world
economy, becoming more and more important. Today, they make up already more than
65% of the gross world product. In the developed countries, the service sector contributes
more to economic growth than any other.

However, service is not service. That is, service industries vary greatly. Not only
companies do offer services, but also governments and non-profit organisations.
However, all services have certain characteristics in common: the characteristics of
services
 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.

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).

Inventory Management

An airline’s inventory contains all flights with their available seats. The inventory of an airline is
generally divided into service classes (e.g. first, business or economy class) and up to 26 booking
classes, for which different prices and booking conditions apply.
Inventory data is imported and maintained through a schedule distribution system over
standardized interfaces. One of the core functions of the inventory management is the inventory
control. Inventory control steers how many seats are available in the different booking classes,
by opening and closing individual booking classes for sale. In combination with the fares and
booking conditions stored in the Fare Quote System the price for each sold seat is determined.

In most cases inventory control has a real time interface to an airline’s Yield management system
to support a permanent optimization of the offered booking classes in response to changes in
demand or pricing strategies of a competitor.

Fare quote and ticketing

The Fares data store contains fare tariffs, rule sets, routing maps, class of service tables, and
some tax information that construct the price – “the fare”. Rules like booking conditions (e.g.
minimum stay, advance purchase, etc.) are tailored differently between different city pairs or
zones, and assigned a class of service corresponding to its appropriate inventory bucket.
Inventory control can also be manipulated manually through the availability feeds, dynamically
controlling how many seats are offered for a particular price by opening and closing particular
classes.

The role of the ticketing complex is to issue and store electronic ticket records and the very small
number of paper tickets that are still issued. Miscellaneous charges order (MCO) is still a paper
document; IATA has working groups defining the replacement document the electronic
multipurpose document (EMD) as at 2010. The electronic ticket information is stored in a
database containing the data that historically was printed on a paper ticket including items such
as the ticket number, the fare and tax components of the ticket price or exchange rate
information. In the past airlines issued paper tickets; since 2008 IATA has been supporting a
resolution to move to 100% electronic ticketing. So far, the industry has not been able to comply
due to various technological and international limitations. The industry is at 98% electronic
ticket issuance today although electronic processing for MCOs was not available in time for the
IATA mandate.

KEY ISSUES & CURRENT TRENDS

India is set to experience a transformational growth profile.

The challenges are becoming much greater as the size of the industry increases.

2000‐2010: Indian aviation had to cope with an additional 84m pax,at times, this truly
stretched the system;

2010‐2020: Indian aviation may have to handle an incremental 300‐320m pax;

In absolute terms the challenge ahead will dwarf recent history.

Long term planning in line with a clear vision is imperative. We require imagination, strong
commitment, a clear and robust regulatory framework and capital.

Is Indian aviation ready to meet this challenge?

How do we create the appropriate framework for the long term?

What kind of regulation do we want -government as regulator or independent regulator?

Independent regulation requires that government does not have stakes in airlines/airports.

Is the industry ready for complete deregulation as in the UK/EU?

Do we want rapid or gradual change?

After reaching agreement on these issues, the roadmap for regulation must be documented.

CAPA believes that India has a clean‐sheet opportunity to create an effective new frame
work, that supports industry viability and is focused on security, safety, skills and sustainability
 Answer to question3

Q1. How Southwest Airlines success to manage buyer’s perception?- Discuss.

Southwest Airlines, being a Low Cost Carrier (LCC), is famous for its uniquely competitive low
fares, which are often some 30% lower than most of its major rivals. They have achieved this
low cost leadership position in their industry by emphasizing on:
 

1) Faster than average gate turnarounds to yield higher utilization rates.

2) One class of seating.

3) No meals or movies on flight.

4) One type of airplane – Boeing 737.

5) Point-to-Point flight routes.

6) High employee productivity.

7) A very successful fuel hedging program (long-term contract with oil companies to buy fuel
equivalent to $51 per barrel through 2009 that has reduced a major fraction of its operating
expense).

8) Serves relatively less-congested airports to achieve high asset utilization and reliable on-time
performance (however later it had spread its operations to major airports as well)
Southwest Airlines focuses mainly on point-to-point service, rather than the hub-and-spoke
service provided by major US airlines. Point-to-point service allows for direct nonstop routing by
minimizing connections, delays and total trip time. As a result, approximately 71% of Southwest
Airlines’ customers flew nonstop in FY2011. During the year, the company's average aircraft trip stage
length was 664 miles with an average duration of approximately 1.8 hours. This service also
enables the company to provide its markets with frequent, conveniently timed flights and low
fares.
 
The management of Southwest Airlines is considered to be the most dynamic of all time. The
policies introduced by Southwestern Airline’s top management is considered to be intuitive and
effective by many industrial analysts.
 
Even as its general expansion strategy has been more of an organic growth. In May 2011, the
company acquired AirTran Holdings, the parent company of AirTran Airways, one of the largest
low cost scheduled airlines in the US. The transaction was valued at approximately $1.4 billion.
The acquisition provides Southwest Airlines an opportunity to grow its presence in key markets
it didn't yet served. Moreover, it would allow the company to expand its presence in slot-
controlled markets where the company currently has little (New York LaGuardia) or no (Ronald Reagan
Washington National Airport) service; expand its service in other key domestic markets,
including Boston and Baltimore and to add destinations to its route system; and provide access to
near-international leisure markets in the Caribbean and Mexico, as well as smaller cities.
 
And while pilots in most other airlines pilots are unionized, there are no such union affiliations in
the Southwest Airlines which therefore does not restrict the pilot’s flying hours for a particular
period

So this is how to success to managed to influence buyer’s perception

Q2. Identify any intangible components that facilitate performance of communication of the
service in the environment in which the service is delivered.

An intangible good is a good that does not have a physical nature, as opposed to a physical
good (an object). Digital goods such as downloadable music, mobile apps or virtual goods used
in virtual economies are all examples of intangible goods.
Examples of intangible assets include goodwill, brand recognition, copyrights, patents,
trademarks, trade names, and customer lists. You can divide intangible assets into two
categories: intellectual property and goodwill. Intellectual property is something that you
crntangible assets cannot be touched. While intangible assets do not have a physical presence,
they add value to your business. Intangible assets are long-term assets, meaning you will use
them at your company for more than one year. Examples of intangible assets include goodwill,
brand recognition, copyrights, patents, trademarks, trade names, and customer lists.

You can divide intangible assets into two categories: intellectual property and goodwill.

Intellectual property is something that you create with your mind, such as a design. You have
rights to your intellectual property, and other companies cannot copy it. Intellectual property
includes trademarks, patents, and licensing agreements.

Goodwill measures several factors that affect your brand’s value. Examples of goodwill include
your company’s reputation, strategies, customer base, and employee relations.

Do you know what intangible assets you have at your small business? Take a look at this list to
check:

 A strong, recognizable brand identity

 Trained employees
 Loyal clientele
 A reliable vendor and distribution network
 A functional website
 Your in-house technology, systems, and processes

Usually, you can find the value of tangible assets as a definite number. You add up the value
of each tangible item for a total value. But, the value of your tangible assets does not reflect your
business’s total worth.

Finding the value of your intangible assets is more difficult than tangible assets. It’s likely that
your intangibles do not have cut-and-dry values.

Accounting for intangible assets has some unique requirements. You record intangible assets on
the balance sheet. You only record an intangible asset if your business buys or acquires it. Also,
the intangible asset must have an identifiable value and a long-term lifespan. You do not record
intangible assets that you create within your business.

Q 3. How post purchase feedback help Southwest Airlines to ensure better service?

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
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.