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Service Quality of Vietnam Airlines

Productivity & Quality Management (Trường Đại học Ngoại thương)

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QUALITY MANAGEMENT & PRODUCTIVITY

SERVICE QUALITY OF

Vietnam Airlines

LECTURER
Assoc Prof Dr Le Thai Phong
. . .

GROUP 4
Tran Khanh An 1810280002 -

Nguyen Minh Cong 1815280031 -

Pham Trung Dung 1810280006 -

Le Huong Giang 1812280037 -

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Table of Contents
1. Service Quality.......................................................................................................................................... 2
1.1. Definition ........................................................................................................................................... 2

1.2. Service Quality Measurement ............................................................................................................ 2

1.3. Standards of aviation service quality ................................................................................................. 2

2. Introduction of Vietnam Airline ............................................................................................................... 3

2.1. Foundation ......................................................................................................................................... 3

2.2 Market share........................................................................................................................................ 4

2.3. Outstanding features in service quality .............................................................................................. 4

2.4. Business Performance ........................................................................................................................ 5

3. Methodology ............................................................................................................................................. 6
3.1. Secondary data ................................................................................................................................... 6

3.2. In-depth Interview & Observation ..................................................................................................... 9

4. Data Analysis .......................................................................................................................................... 11

4.1. Secondary Data ................................................................................................................................ 11

4.1.1. Examine validity of secondary data through Cronbach’s alpha and EFA ................................ 11
4.1.2. Descriptive data......................................................................................................................... 13
4.1.3. Multiple linear regression analysis............................................................................................ 13
4.2. IDI & Observation ........................................................................................................................... 16

5. Recommendation .................................................................................................................................... 20

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1. Service Quality

1.1. Definition

● Service quality is a concept that has stimulated considerable interest and debate in research
literature because of the difficulties in both defining and measuring it, with no consensus
on either (Wisniewski et al., 1996).
● Service quality is defined as the context to which a service meets customers’ needs or
expectation (Asubonteng, 1996)

1.2. Service Quality Measurement

The most popular measure of service quality is SERVQUAL, an instrument

developed by Parasuraman et al. (1985; 1988). SERVQUAL shows its best valuation when it is
used to track service quality trends as well as in combination with other forms of service quality
measurement. Moreover, SERVQUAL is used to evaluate the firm’s quality according to the five
services dimensions. These dimensions include Reliability, Assurance, Tangibles, Empathy
and Responsiveness (RATER model).

● Reliability: The ability to perform the promised service dependably and accurately.
● Assurance: The knowledge and courtesy of employees and their ability to convey trust
and confidence.
● Tangibles: The appearance of physical facilities, equipment, personnel and
communication materials.
● Empathy: The provision of caring, individualized attention to customers.
● Responsiveness: The willingness to help customers and to provide prompt service.

1.3. Standards of aviation service quality

Nowadays, customer satisfaction is regarded as one of the most indispensable elements

playing a vital part in determining the success and prosperity of a specific business in such a
dynamic and fast-growing market. According to Rust and Oliver [16], customer satisfaction is
defined as an emotional or affective response which surfaces and develops when meeting with any
kind of service. After service is provided, a positive or negative reaction will emerge from
customers getting that service. Also, Oliver [13] stated that “customer satisfaction is the outcome

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of the evaluative process between the impression during or after service is performed and the
expectations before experiencing the service.” In specific situations, what people assume before
using the service may contradict what we actually encounter during and after the service is
performed.

In transportation context, the fact that passengers are satisfied with the services provided
has a crucial effect on determining the long-term continuance of a specific carrier. Dissatisfied
passengers may lose their trust and not consider choosing the same airline again due to the bad
service provided. Therefore, it is imperative for airlines to assure what customers expect and
experience with their desired service quality. We choose customer satisfaction as a measurement
for service quality of VNA

2. Introduction of Vietnam Airline

2.1. Foundation

● Founded in 27th May, 1995, Vietnam Airlines is the national airline of Vietnam and
majority-owned by the Vietnamese government. Vietnam Airlines is the flag carrier of
Vietnam and the major carrier in South East Asia, operating 94 routes to 22 domestic and
29 international destinations with an average of 400 flights per day
● Vietnam Airlines became a member of SkyTeam in 2010, reaffirming the carrier’s position
on the global aviation map.

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2.2 Market share

The figures published by the Civil Aviation Authority of Vietnam revealed that the
Vietnamese aviation market saw noticeable changes in 2019. VNA witnessed a slight decrease in
its market share due to the expansion of of private carriers

Vietnam Airlines saw a drop to 33.3 percent in market share in December 2019, from
approximately 34.5 percent at the beginning of the year.

Jetstar Pacific and VASCO (2 subsidiaries companies of VNA group) respectively held
market shares of 10.6 per cent (down from 14.2 per cent at the beginning of the year) and 1.6 per
cent (down from 2 per cent).

2.3. Outstanding features in service quality

● The majority of flights take off on time. The frequency of delayed flights is relatively low.

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● Secondly, you don’t have to pay extra for Additional services( snacks, drinks) are included
in the tickets.
● VNA offers up to 20kg of check-in luggage free of charge, while you have to pay an extra
fee for this item while experiencing other low-cost airlines .
● Large investment in refurbishment to provide customers with luxurious and comfortable
experience.

2.4. Business Performance

Growth rate
UNIT 2015 2016 2017 2018 2019 2020
(2019-2020)

Total number of
Thousand 122,8 131,2 141,7 141,3 146,2 95,8 -34,47%
flights

Passengers carried Million 17,4 20,7 21,9 21,9 22,9 14,1 -38,43%

Cargo and mail Thousand

208,4 271 323 341,5 348 196 -43,68%
carried tons

Billion
Revenue passenger-
passengers. 28,7 32,8 34,8 36,2 37,6 15,2 -59,57%
kilometers (RPK)
km

Available seat- Billion

35,8 40,6 42,7 44,7 46,5 19,4 -58,28%
kilometers (ASK) seats.km

Load Factor % 80,7 80,8 81,5 81,3 80,9 78,25 -3,28%

Business Performance of Vietnam Airlines from 2015 to 2020

As can be seen from the table, VNA experienced a significant drop in every aspect of
business performance due to the negative impacts of Covid-19 pandemic. The total number of
flights decreased considerably from 146,2 thousand to 95,8 thousand with the percentage of
34,47%%. In terms of passengers carried, the national airlines carrier witnessed a substantial fall
with the rate of 38,43%. Other metrics such as cargo and mail carried, RPK, ASK and load cargo
also shared a downward trend.

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In conclusion, in the context of the pandemic, VNA has lost a large number of non-
domestic passengers and its market share due to the expansion of cheap private airlines. Therefore,
in order to maintain the loyal domestic customers, VNA should take drastic measures to enhance
its service quality

3. Methodology

Step Output Objective

Ensure the validity and
Determine 2 dimensions
1. Refer Empirical Article: "Customer reliability
that mostly affect
satisfaction of Vietnam Airline domestic Find out what aspect of
customer satisfaction of
service quality" by Giao Ha Nam Khanh service quality affects
VNA
customers

Issues and solutions

Digging deeper into 2
related to 2 chosen
chosen dimensions and
2. Conduct IDI and Observation dimension,
other issues for better
recommendation from
understanding
customer insights

3.1. Secondary data

Variables Framework

A quantitative analysis was conducted to test the hypotheses. This research applies
modified criteria for measuring customer satisfaction with aviation service quality offered by
McGraw-Hill survey for North American airline satisfaction in 2010 to the case of VNA in which
aviation service quality comprises six determinants: (1) reservation (RES), (2) check-in (CHE),
(3) aircraft (AIR), (4) in-flight services (INF), (5) flight crew (FLI), and (6)
boarding/deplaning/baggage (BDB). In-depth interviews with three high-ranking VNA officials
are conducted to identify determinants of service quality and evaluating criteria. The interviewers
are followed by a group discussion based on open questions with seven passengers who frequently
use VNA domestic services in order to find their perception of determinants of service quality.
Their opinions are used for improving and developing scales for aviation service quality.

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Population and sampling

The target population includes Vietnamese passengers who are in the 18–60 age bracket
and used VNA domestic services two times at least in the last 6 months. The sample size and
sampling result are presented in Table 1.

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Data Gathering

A structured questionnaire with 5-point Likert scales with anchors “strongly disagree” to
“strongly agree” was used in this study. The questionnaire consisted of two parts. The first part
was to examine the customer satisfaction through the variables of service quality. The second part
was designed to collect respondents’ demographic information. To validate the questionnaire, a
pilot test was carried out on a convenient sample of 30 passengers and the collected data was used
to refine the survey instrument. A quantitative survey is conducted in Tan Son Nhat Airport.

Analysis Method

After collecting the data, a statistical package for social sciences (SPSS, 22 versions) was
used for analyzing the data. Cronbach’s alpha and exploratory factor analysis (EFA) were
employed to test the reliability and validity, and then multiple regression analysis was performed
to test the hypotheses. Subsequently, the tests of regression assumptions and difference tests
consolidated the findings.

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3.2. In-depth Interview & Observation

It was unable to interview offline during that time due to COVID-19 pandemic prevention
and control requirements. As a result, interviewing via video call was the only method to collect
data. All the questions were unbiased, easy to understand, and courteous as well as avoiding
confusion for participants. We also use observations from Tipadvisor and Airlinequality so that
the results are closer to the Covid context and have more foreign visitors' perspectives. Limitation
of this research is that we mainly focus on economy class’s issues and solutions.
Objective
● Digging deeper into 2 dimensions: BDB (Boarding/Deplaning/Baggage) and CHE (Check-
in)
● Insight about service quality
● Find a basis for recommendations
Content
● Brand perception
● Flight experiences and issues related to BDB and CHE
● Demand, desire and barrier
Sample: base on sample of Secondary Data
Sample Size: 10
Geographical: Hanoi, Saigon, Da Nang N
Male 4
Gender
Female 6
From 18 to 33 5

Age ≥ 34–46 4

47–60 1
≤ 5 million VND 2

Income (per month) 6–9 million VND 1

≥ 10 million VND 7
Business 3
Purpose
Leisure 7

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Questionnaire Design
Criteria Main Points
Tuổi
Nơi sinh sống

Demographic Nghề nghiệp

Thu nhập

Các kênh thông tin thường xem

Tần suất bay?
Thường bay với mục đích gì? Công tác hay du lịch?
Flight
behavior Thường chọn hạng vé nào? (với tùng mục đích bay, độ dài chặng bay)

Thường mua vé máy bay ở đâu?

Hay đi hãng bay nào nhất? (nội địa/quốc tế, tùy độ dài chặng bay)
Lý do chọn hãng bay đó?/Lý do không chọn VNA?
VNA
perception Để miêu tả VNA thì nghĩ đến những từ gì hoặc đặc điểm gì?

Bạn có ấn tượng gì về đồng phục, logo và màu sắc thương hiệu của VNA so với
các hãng khác? Vì sao
Khi lựa chọn hãng bay, bạn quan tâm đến yếu tố nào nhất (theo thứ tự giảm dần):
BDB, CHE, INF, RES, AIR, FLI
Nghĩ gì về chất lượng dịch vụ của VNA?

Đánh giá chất lượng dịch vụ của VNA (theo thứ tự giảm dần): BDB, CHE, INF,
RES, AIR, FLI
Flight
experiences Bạn có gì chưa hài lòng trong quá trình Check in ko? So sánh với các hãng bay
& Issues khác (Thủ tục check-in, Staff, Baggage drop, Waiting times)

Bạn có gì chưa hài lòng trong quá trình Lên máy bay / Hạ cánh / Ký gửi, Nhận
Hành lý ko? So sánh với các hãng bay khác (Xử lý khi delay, phòng chờ, thay đổi
thông tin cửa khởi hành, Hành lý được bảo đảm) Bạn có khó tiếp nhận thông tin
trong trường hợp chuyến bay có sự thay đổi ko?

Đã từng có trải nghiệm ko tốt nào, vấn đề gì khác khi bay VNA ko? (optional)

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VNA có thể cải thiện điều gi để nâng cao trải nghiệm KH?
Mong muốn VNA có thêm dịch vụ gì ko?

App Lotusmile nên bổ sung những tính năng gì để thu hút người dùng?
Demand,
desire and Tiêu chuẩn mà bạn đặt ra cho VNA có cao hơn các hãng hàng không Việt Nam
barrier khác ko? Tại sao?

Bạn định nghĩa thế nào là một hãng hàng không 5 sao?

Với những tiêu chí trên thì cho VNA mấy sao?

4. Data Analysis

4.1. Secondary Data

4.1.1. Examine validity of secondary data through Cronbach’s alpha and EFA

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Table 4.1. Cronbach’s alpha coefficients for scales of determinants of quality service
and customer satisfaction

Table 4.1.2. EFA results

Table 3 shows that Cronbach’s alpha coefficients of all scales are greater than 0.6 and all
item-total correlation coefficients are greater than 0.3. Thus, all scales are reliable
and can be used for EFA. In the EFA process, principal determinant analysis and Varimax are
employed. EFA results show that KMO = 0.888 while the chi-square statistic of Barlett’s test
reaches 7298.249 at Sig. = 0.000. All 31 determinants are reduced to seven factors with an
eigenvalue of 1.041 (greater than 1) with a variation of 66.42% (able to explain 66.42% of changes
in the dataset). Observed variables of seven factors all have factor loadings greater than 0.5, and
they are used for analyzing the research model of multiple linear regression. Thus, resultant scales
are acceptable. After conducting the factor rotation with all 31 aforementioned variables, seven
factors are extracted (Table 4). EFA results show that scales measuring customer satisfaction and
determinants of service quality did obtain convergent validity. The results also imply that the
research model remains stable, comprising six independent variables and one dependent variable.

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4.1.2. Descriptive data

Table 4.2. Passengers’ estimates of determinants

Results of estimation of determinants of aviation service according to the statistical method
describing the mean value in a 5-scale Likert show that scores given by passengers vary from
“medium” to “pretty good”(Table 9). The highest scores are given to reservation (mean = 3.60),
followed by in-flight services (3.56) and flight crew (3.51), while medium scores are given to
aircraft (3.47) and boarding/deplaning/baggage (3.40) and the lowest one to check-in (3.31); SAT
is given a pretty high score of 3.41.

4.1.3. Multiple linear regression analysis

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Table 4.3. Correlation coefficients between determinants

Table 5 shows that the dependent variable has a close linear relation with six independent
variables at α<0.05. Because all absolute correlation coefficients between variables vary from
0.245 to 0.671, thus satisfying condition −1≤r≤+1, all variables are qualified for multiple linear
regression analysis. This demonstrates that the discriminant
validity is achieved, or in other words, scales used in this research can measure various
constructs. The correlation matrix also shows that the variable BDB has the greatest
effect on the customer satisfaction while RES produces the smallest effect.

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Table 4.3.2. MLR Analysis results

Results of the MLR analysis of relations between factors of service quality and satisfaction
using the Enter method. Relations between the aviation service quality reflected in six factors (INF,
FLI, RES, CHE, BDB, and AIR) with satisfaction (SAT) all have Sig. greater than 0.05, and they
are presented in the following:

It turns out that all hypotheses are supported. Adjusted R2=0.627, F= 113.414, and Sig.=
0.000. Table 6 shows that the greatest effect on SAT is produced by BDB (β=0.536), followed by
CHE (β= 0.419), INF (β=0.329), RES (β= 0.164), AIR (β= 0.158), and FLI (β= 0.106).
Additionally, all regression coefficients bear positive signs, implying that all factors in the model
are directly proportional to customer satisfaction.

Table 4.3.3. Adjusted R2 and F values

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Adjusted R2 and F values shows that R2 is 0.633 and adjusted R2 is 0.627. This implies
that the fitness of the model is 62.7%. In other words, 62.7% of customer satisfaction can be
explained by the sic independent variables, and the remaining 37.3% is affected by other variables.
Results of analysis of variance show that the F value is 113.414 and Sig. = 0.000 < 0.01
implying that at least one independent variable has a linear relation with the dependent variable.
Thus, independent variables in the model have linear relations with the dependent variable and
explain its changes; that is, determinants of service quality can explain changes in satisfaction.
This means that the regression model is fit for the dataset and usable, and all variables are
statistically significant at 5%.
Table 4.3.2 shows that tolerance value is very small and all VIF coefficients are smaller
than 10, implying that multicollinearity does not exist. Scatter plot of residual and predicted value
of the regression model reveals no relation between them, and thus, the linearity assumption of the
model is acceptable. In the result of analysis of residuals based on histogram approximates—the
standard level, the residual has a mean value 3.32 × 10≈0 and std. dev. = 0.992≈1. P-P plot shows
that distribution of the residual can be considered as standard, and assumption of normal
distribution of residual is not violated. In short, results of model tests and tests for violation of
necessary assumptions show that the regression model used in the research is suitable.

4.2. IDI & Observation

In order to dig deeper into 2 dimensions: BDB (Boarding/Deplaning/Baggage), CHE

(Check-in), and find insight as a basis for recommendation, we have conducted IDI and observed
customer reviews, vlogs from some travel websites. The results related to VNA issues and
solutions will be presented in Part 4.2. Insights from customer’s desire and recommendation will
be presented in Part 5. For more details about out IDI design, results and analysis, please visit via:
Link

ISSUES
Dimensio
Interpretation IDI Answer Solution
n

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"Nhân viên xử lý vấn đề phát sinh hơi

kém, những khách đi quen rồi thì không
sao nhưng có nhiều khách mới đi, người
7/10 people think that già thì sẽ mất thời gian hướng dẫn, gây Standee to guide
checkin process are tắc nghẽn. the check-in
not clear and effective "Chú không thấy có chỗ thả hành lý dành process
cho check in online, lại phải xếp hàng
như check in bình thường rất mất thời
gian"

"Phân luồng chưa linh động lắm. Lúc xếp

Staff at the front
hàng chờ check in chỉ có một người ở
of the line to
cuối hàng check in để hướng dẫn khách
arrange more
vào các quầy, lẽ ra nên hỏi từ trước khi
effectively
xếp hàng"

"Có những đoàn khách tour quá đông đúc

ồn ào chen lấn xô đẩy mà nhân viên
không điều tiết"

CHE Bạn nhân viên đó có vẻ còn không nắm rõ

quy định của hãng nên còn quay sang
mấy quầy bên cạnh hỏi. Khi anh phàn
8/10 people think that nàn là mọi lần vẫn mang thì bạn đáp lại
VNA staff lack the với thái độ rất khó chịu và thách thức,
skills of professional bảo là không có chuyện đó, hỏi ngược lại Establish
problem solving and anh là anh bay bao giờ? professional code
work organized of actions to
"Thường xuyên xảy ra cãi vã với khách
hàng xong phải gọi quản lý ra" standardize
solutions to all
"I just can’t believe a senior clerk who scenarios.
worked for VNA for 3 yrs, could not
handle the small issue professionally and
respectfully. She does not have good
knowledge of her company’s policy and
no customer service at all. What thought
this could give me of her fellow
colleagues and VNA in general- which is
proudly called national airlines, not to
mention to foreigners."

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"Thái độ nhân viên cũng không niềm nở

lắm, khi có vấn đề phát sinh thường xảy
ra cãi vã phải gọi quản lý"

7/10 people think that "Vào check in thì nhân viên quầy chả nói
HR training for
VNA staffs should chả rằng gì, mình đưa giấy tờ xong đưa
improve
have more welcoming vé, còn không được một lời hướng dẫn
customer
attitude towards như đi mua vé xem phim"
satisfaction
customers
"Nhân viên chảnh, không hỗ trợ tận tình
niềm nở. Mặt nhân viên cứ vênh ngược
lên trời, chắc vì nghĩ vietnam airlines là
nhất việt nam rồi hay sao "
"Thay đổi thông tin chuyến bay nhiều khi
không để ý là bị lỡ ngay. Cảm giác ngồi ở
sân bay còn không dám chợp mắt vì sợ lỡ
Inform the
thông tin"
changes in flight
8/10 people think that
"Thỉnh thoảng ngồi chờ không để ý cái là information
they could miss
không nghe thấy loa báo thay đổi giờ bay, through email,
changes in flight
cửa khởi hành. Có lần ra cửa bay ngồi text message to
information while
chờ mãi xong hỏi nhân viên mới biết là avoid depending
being in the waiting
đã đổi cửa khởi hành. " too much on
area
airport public
"Thông báo về chuyến bay thì toàn báo
loudspeakers.
qua loa nên không nghe rõ mấy, toàn
BDB phải chạy ra chỗ bảng điện tử ở đầu cửa
khởi hành để kiểm tra lại"

"Hay đổi cửa khởi hành bất ngờ, vẫn có

xảy ra tình trạng mất đồ ký gửi. Mặc dù Apply necessary
là hãng đắt tiền hơn nhưng đôi khi vẫn bị services to
8/10 people think that delay như những hãng khác mà không có
passengers of
VNA has not given chính sách gì" delayed or
the satisfied solution
canceled flights,
in case of long delay "Dạo này rất hay delay, có những chuyến
delay 2-3 tiếng ngồi sân bay mà không such as some fee
or cancellation
được hỗ trợ gì chỉ nhận được câu mong services in
quý khách thông cảm trong khi làm lỡ waiting lounges.
việc của khách hàng."

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"Có những lần delay đến mấy lần mà

cũng chỉ nhận được lý do chung chung, lẽ
ra nên có chính sách ví dụ phát nước hay
là gì đó cho khách delay lâu, trả phí cũng
được"

My originally flight was at 2 pm and they

changed to 3:15 pm.They made me sit in
the airplane for a hour then asked
everybody to leave for another flight due
to technical issue without an official
apology. Honestly they are getting worse
and worse while their tickets are higher
than Vietjet. To avoid the pains, dont fly
with the shty VietNam airline.
(Observation, May 2021)

Customer Online "The flight going to Moscow was good. It - Improve online
Support was pretty empty, we got a lot of space online service
and the cabin was excellent too. On center to better
Due to Covid-19, coming back, it was cramped in an older support customer
VNA received many plane. My main issue with them is not - The ground
complaints especially responding to my claim for baggage staff should
from foreign damage. It has been more than 3 months, Coordinate with
OTHERS customers related to no one comes back to me on my claim. online customer
refund issues. Very frustrating." support to timely
Customers have to "Vietnam airline did not even pick up solve customer
wait such a long time their “24/7” service center. We called problems about
to claim their refund more than dozens of times each day, and damaged
and can't connect to all lines are busy; and we sent refund baggage or
online support applications multiple times also got no refund in case of
department. answer." cancellation.

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"It was swift and easy when they take

your money but post-purchase service is
horrible, terrible, they would test your
patience to the max. they changed my
flight schedule - which was fine,and as I
chose for refund in voucher form, this is
where the issue began. it has been taking
me27 days (and still counting) and
countless phone calls and emails, we are
talking 2 digits here.. for them to finally
refund the booking in voucher form PART
BY PART, so it took me 10+ emails and
calls to get a refund for 1 passenger, and
then another round of equal efforts for
another passenger, until this point it has
been 1 month and they still have not
refunded me completely yet. "Online
support Dept" seems to have a tiny team
of 1-2 persons or they are just not in the
mood for working. Your emails will
confirm go to the universe's black hole.
Speechless, waste of my time. never
again."

"I urge all of you reading this review that

you SHOULD NOT BOOK their flights as
they have NO SUPPORT with fake hot
lines to pick pocket your phone charges."

5. Recommendation

Based on the IDI and observed reviews, we have come up with insights and related
recommendations for VNA, specific in 2 above dimensions. Overall, more training courses should
be given to VNA staff to better handle situations and create a friendly atmosphere for passengers.
In general, according to customers' perspective, the criterias of a 5-star airline are often related to
"professional working process", "courteous attitude", "suitable policy", "detail oriented". Based on
their personal standard scale, VNA's service has an average score of 3.33, which is below their

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Certification as a 4-Star Airline. This can be illustrated by the decreasing service quality and higher
expectations of customers.

Insight #1. Customer tend to expect better customer service due to higher price

Customer Truth Brand Truth

VNA customers' expectation is "higher than However, when comparing with others, VNA
others" due to higher prices service is still "like others"

"Hãng duy nhất không phải hãng hãng không giá "Mặc dù là hãng đắt tiền hơn nhưng đôi khi vẫn
rẻ nên chất lượng dịch vụ đương nhiên phải tốt bị delay như những hãng khác mà cũng không có
hơn rồi" chính sách đền bù gì"

"đi Vietnam Airlines thì được cái cho kí gửi hành

"Chắc vẫn ổn hơn mấy hãng còn lại vì giá vé cao
lý thôi chứ dạo này cũng không có đồ ăn nhẹ, các
hơn mà"
dịch vụ khách thì cũng không khác mấy"

"Vé đắt hơn nhiều nhưng chất lượng thì không

"Đương nhiên rồi vì giá vé đắt hơn mà. "
khác biệt mấy thậm chí còn đang giảm sút"

Actually, the higher prices of VNA are often seen through baggage, soft meal INF
(tangible), but not through customer service.
Recommendation: Improve service quality so that customers feel really worth the money.
Highlight the different level of service that VNA could bring to customers as a competitive
advantage.

Insight #2. Customers have higher expectation for VNA than other Vietnamese airlines due
to the notion of "Vietnam's national airline" (10/10 interviewees)

Customer Truth Brand Truth

Foreign passenger will judge Customers are impressed by

When asking about reason for
overall country's service VNA logo and uniform, which
higher expectation, (besides
reputation through their represent Vietnamese signature
higher prices),
experiences with VNA symbol

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"Vietnam Airline là hãng hàng

"Đồng phục tiếp viên đẹp hơn
không quốc gia, đại diện cho "a shame for a national
các hãng khác, thể hiện đúng là
việt nam nên chất lượng cũng airlines"
hãng hàng không quốc gia"
đạt tiêu chuẩn"
"What thought this could
"Vietnam Airlines còn không
give me of her fellow "vietnam airlines chọn mấy cái
phải hãng bay tư nhân mà là
colleagues and VNA in biểu tượng của việt nam kiểu áo
của nhà nước, đại diện cho Việt
general- which is proudly dài, bông sen nên tạo cảm giác
Nam nên cũng đòi hỏi chất
called national airlines, not chính thống, quốc gia"
lượng hơn"
to mention to foreigners."
"They wouldn't refund my
flight even though there is a
"Logo hoa sen rất đặc trưng,
resurgence of covid in
"Tiêu chuẩn có cao hơn vì giá đồng phục cũng nổi bật nhất, các
saigon. Typical Vietnamese
đắt hơn và vì là hãng bay của hãng bay còn lại đồng phục đều
scammers. Vietnam easily
nhà nước" theo một phong cách giống
has the worst customer
nhau"
service of all the countries
I've been to."

VNA positioning in customers' minds is often associated with "Hãng hàng không quốc gia
Việt Nam", "hãng máy bay Việt Nam đầu tiên". This leads to the higher expectation of service and
favorable in traditional details. However, VNA has only displayed it through logo and FLI uniform
-> Add in some cultural elements to service details to promote nationality, such as
traditional food, using traditional patterns in packaging, blanket, magazine.
VNA service also affects foreigner's first impression and judgement of Vietnam's overall
service reputation. So VNA should improve service standards to proudly represent national
airlines.

Insight #3. Customers are willing to use Lotus app if it has useful features and promote
customization (10/10)

Customer Truth Brand Truth

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Member benefits of Lotus Smile are not

Lotus app should include detailed flight
information and support connection between
customers and flight attendants
"Có nhiều tiện ích thì sẽ tải, cá nhân hóa cũng
hay vì làm cho khách hàng thấy được sự tận
tậm hơn, ở Việt Nam chưa thấy có hãng nào
làm"
enough attractive to customers (among 10
people, 5 people registered membership but
not download mobile app, 3 people have not
registered)
"Có đăng ký thành viên, có lần thử tải app để
check in online nhưng hệ thống bị lỗi, bị lag
nên lại phải lên giao diện web"

"Thông báo các thông tin chi tiết trước khi

khách lên máy bay như cửa khởi hành nào nếu
có thay đổi, di chuyển bằng phương tiện gì ra "Có đăng ký nhưng k tải app vì app không có
máy báy, cách liên lạc với tiếp viên trưởng, nhiều chức năng"
thông tin đội bay, cập nhật thay đổi thời gian hạ
cánh dự kiến"

"Có nếu có các chức năng hữu ích như chế độ

nhắc nhở lịch trình bay, nhắc khách để chế độ "Có đăng ký nhưng ko tải app vì thấy ko cần
máy bay trước khi bay chẳng hạn, chính sách thiết, ko rõ app có thêm lợi ích gì ko"
tích dặm cũng cần rõ ràng và hấp dẫn hơn"

Customers want a proactive method to update information changes quickly. They also want
detailed flight information and are willing to use Lotus app to enhance the customization of
services.
-> Lotus app should add the some functions to attract users
● Information about the crew, contact of chief flight attendant, update the expected landing
time, update the departure gate, delay
● Features such as flight schedules reminder or remind passengers switch phone to airplane
mode
● Connect customers and staff to enhance customized experiences such as personalized
greetings on each passenger's screen or note of customer preferences of food, drink, blanket
if needed

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REFERENCES

1. History of Vietnam Airline. Vietnam Airlines. (n.d.).

https://www.vietnamairlines.com/cz/en/vietnam-airlines/about-us/history.
2. New players reshape Vietnamese aviation market. Viet Nam News. (2020, January 13).
https://vietnamnews.vn/economy/571056/new-players-reshape-vietnamese-aviation-
market.html.
3. Vietnam Airlines Flights and Reviews. Tripadvisor. (n.d.).
https://www.tripadvisor.com/Airline_Review-d8729180-Reviews-or10-Vietnam-
Airlines.
4. Vietnam Airlines is certified as a 4-Star Airline. Skytrax. (2021, March 5).
https://skytraxratings.com/airlines/vietnam-airlines-rating.

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