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Enathi NdudeSimphiwe TwalaB-tech: Tourism ManagementFaculty of BusinessCape Peninsula University of Technology11 November 2014
Supervisor/Lecturer: Prof K.Swart
Co-Supervisor: Dr C.Dube
AKNOWLEDGEMENTS
INTRODUCTION Background
Problem statement
Research objectives
LITERATURE REVIEW
RESEARCH METHODOLOGY
KEY FINDINGS
CONCLUSIONS AND RECOMMENDATIONS
REFERENCES
PRESENTATION OUTLINE
INTRODUCTION
Low cost airline started by the American domestic carrier Southwest (Kretschmer,
2008:23–25.)
Since 2001, the South African domestic air transport environment has been
characterised by the entry of the low cost carriers. (South Africa.To, 2012: n.d).
In the low cost airline market there is a strong competition (Turner,2003:14)
Background of the study
Problem statement
Low cost airlines faces fuel consumption, oil prices, air-traffic and high competition
Low cost airlines in South Africa have not yet developed extranet facilities for their business clients
South African low cost airlines use low fare strategy which might lead to a negative perception to its targeted customers
Ineffective low fare strategy to passengers can bring failure to deliver high quality service (Yu-Chiun and Yen-Heng, 2012: 406)
INTRODUCTION
Determine passengers’ motives for using low cost airlines
Determine passengers’ perceptions of service delivered by low cost
airlines
Identify the low cost airlines’ strategies in targeting their passengers
Research objectives
Over the past five years the South African airline industry has grown by more than 50
per cent (Economist.com 2013.n.d)
In 2001, the domestic market comprised fewer than 7 million passengers, compared
to almost 12 million in 2006 (Sultan, & Simpson, 2000.:188).
Low cost airline in recent years used to be the primary domain of business travellers
(Webster,1985:n.d).
LITERATURE REVIEW
Mason (2001:103) cited that South African domestic passengers of low cost airlines
were viewed as unpredicted when the low cost airlines came into existence
Bui and Nguyen (2004:34) stated that low cost airlines particularly Mango airlines
has improved its customer’s loyalty and satisfaction via their high quality products
and services
Zeithaml and Bitner (2000:41) said that passengers perceptions of low cost airlines
can be influenced by the image or reputation of the company.
Fare was by far the most important factor for customers in choosing to fly on a low
cost airline (Barret, 1999:21-25)
LITERATURE REVIEW
RESEARCH METHODOLOGY
Quantitative data
Structured survey questionnaire
Closed-ended questions
Population size N=300 and sample size n=100 due to scale of project,
resource and time constraints
Pilot study conducted
Data was analysed using SPSS (Statistical Package for Social
Sciences)
RESEARCH METHODOLOGY
Ethical considerations The participation of respondent in the survey was voluntarily
The respondents were assured that the information would be kept confidential
There was an informed consensus on all those respondents who participated
voluntarily
SIMPHIWE
KEY FINDINGS
Gender of respondents (n=100, in %)
KEY FINDINGS
Age group of respondents (n=100, in %)
KEY FINDINGS
South African Low Cost Airlines (n=100, in%)
KEY FINDINGS
Purpose of travel for respondents (n=100, in %)
KEY FINDINGS
Passenger’s motives for choosing low cost airlines (n=100, in %)
KEY FINDINGS
Table 4.1: Level of Satisfaction (in %, N=100)
FEATURES OF LCA RATING
Poor Averag
e
Good Excellen
t
N/A
Bookings 1 13 47 39 -
Baggage Service 3 20 53 24 -
Punctuality 3 10 44 42 1
Overall Experience 3 6 55 35 1
KEY FINDINGS
Limitations of the study
Transport to get to the study area
The existing study is limited
Distribution of questionnaire permit
CONCLUSION
Majority of respondents using low cost was young adults
Negative and positive impacts
Importance of service delivery
RECOMMENDATIONS
Improve in prompt service
Offer students discounts
Improve in punctuality
RECOMMENDATIONS
Possible future areas
Extending study to perceptions of passengers on full service airlines with a
bigger sample size on passengers.
REFERENCE Bui, H., & Nguyen, L. 2004. Total quality management. Hochiminh: Vietnam National University. p34-45.
Barrett, S. (1999). Peripheral market entry, product differentiation, supplier rents and sustainability in the deregulated European aviation market—a case study. Journal of Air Transport Management, 2(5): 21–30.
Economist.com, 2013, Flying cheap, viewed 11 August 2013, from http://www.economist.com/blogs/graphicdetail/2013/04/daily-chart-10 [10 October 2014].Kretschmer, C. 2008. Blending models. Ascend magazine (magazine of Sabre airline solutions). 2008 (1):23 – 25.
Mason, K. 2001. Marketing low cost airline service to business travelers. Journal of Air Transport Management, 3(3):7:103-109.
Sultan, F. & Simpson, M.C. 2000. ‘International service variants: Airline passenger expectations and perceptions of service quality’, Journal of Services Marketing, 14(3): 188-216.
SouthAfrica.to, n.d. http://www.southafrica.to/transport/Airlines [02 October 2014].
Turner, S. 2003. Comparison of passenger profiles and selection criteria: a study of London Amsterdam passengers, ATRS Conference, Toulouse.
Webster, M. 1985. Webster`s nith new collegiate dictionary. Meriam - Webster Inc.n.d.
Zeithaml, V.A., & Bitner, M.J.2000. A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(2):41-50.
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