Third annual eConference Champions new Airline Customer Centric Approach By eNewsline.net staff writer |
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With record high flight delays and cancellations this year, the organizers of the annual eConference, to be held in Singapore on 5-6 November, have prioritised their agenda around the discussion of so-called next generation passenger service systems and the customer centric business model. The concept of Customer Centricity is not altogether new and should not be confused with an airline being customer focused. Customer focus is actually a business requirement of a customer centric approach. Customer relationship management (CRM) processes are also components of the customer centric model. For the sake of stimulating debate the organizers of eConference have pitted speakers presenting on customer centricity and those covering CRM against each other in order to bridge the gap between stand alone CRM enterprise resource planning systems and more specialized CRM solutions that can be integrated with processes designed around a customer centric approach. During the first quarter of 2007, more than 25% of all flights within the United States arrived at least 15 minutes late. Statistics from the Association of European Airlines showed that more than one flight in three left Heathrow more than 15 minutes late, earning London’s Heathrow the dubious title of worst delayed airport in Europe during the first half of 2007. Unfortunately statistics do not tell the full story due to the manner in which delays are filed by airlines and tracked by various regulatory bodies. According to research by the Massachusetts Institute of Technology, when missed connections and flight cancellations are factored in, the average delay becomes two-thirds longer than the official statistic. Based on this reassessment of airline delay trends, Roger Williams of eConference organiser Airline Information commented: "Customer centric business requirements that could be supported with existing technology could significantly reduce the recovery time for airlines dealing with customer travel irregularities." Williams continued: "This is by no means a panacea, but if systems were adjusted to anticipate irregularities, especially misconnects arising from flight network delays and provide re-accommodation also on ground transportation in the absence of flight alternatives to onward destinations. Additionally, airlines are smart enough today to segment passengers based on loyalty and value, this knowledge should materialize into priority re-accommodation for modal and inter-modal rebooking on the same airline, another airline, train, bus, rental car, or in a last resort hotel room." Passenger value, explains Williams, should also steer the assignment of higher valued seats or steer any necessary down grading from one airplane to another. A significant amount of delays and cancellations in the US Northeast and Western Europe occur when passengers are within a reasonable driving or rail distance from their final destination. “Technology can only work up to a certain point, the rest of the customer service equation relies on the airline’s command of service initiatives, planning and the airlines’ set of business rules and parameters according to the different re-accommodation scenarios“ explains eConference chairman, Frank Socha, who has written business requirements for the industry’s major passenger service systems.
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In 2002, an airline industry study conducted by Booz Allen Hamilton outlined the need not to eliminate complexity, but the cost of complexity:“ ...by designing processes that reflect the simple needs of the vast majority of customers.“ The eConference customer centric proposition is by all means complex from both a systems and business relationship standpoint – some elements such as distress reaccommodation in many cases will require additional interline and alliance co-operation. This year’s eConference discussions will grapple with the “cost of complexity“ and protecting the all-important bottom line and razor thin yields.
It certainly does no harm to dream though, so imagine that you are on a trip with a couple of flight connections before you arrive at your final destination. Your flight arrives late at the first connection airport and you miss your scheduled connection, as you quickstep across the terminal wondering what to do next while frantically trying to find an available customer service agent you switch on your mobile phone and scrutinize your boarding pass jacket in an attempt to locate the airline’s toll free number. But suddenly something completely unexpected happens, and you receive an SMS on your phone presenting you with your new “best possible“ connection details booked and ready to go. Online Travel Portal Orbitz offers an admirable concierge service called TLC but in the instance of a flight cancellation you are notified by SMS or an automated voice system when you are then prompted to contact their live agent who will contact the airline to rebook you. The future of airline customer service will be based on customer centric planning and systems that pre-empt bottlenecks and quickly recover from disruptions with passenger movement through smarter re-accommodation including inter-modal transportation if necessary. When asked how soon in the future we would see airlines adapting such systems eConference chairman Frank Socha commented: "you’ll have to come to Singapore and find out for yourself".
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