Vietnam Airlines: An overview

Vietnam Airlines An overviewINTRODUCTIONVietnam Airlines is the sword lily carrier of Vietnam, the nation with population of 85 million and 330 000 squ atomic number 18 meter. It was established in January 1956 by the Government and marked the birth of aviation industry in Vietnam, and served tho domestic flights (Vietnam Airline, 2008). After the end of Vietnam War, from 1976, Vietnam Airlines started international flights, including South East Asian countries and China. An different turning point of Vietnam Airlines is year 1993 when this flight path became the national flag Airlines of Vietnam. Nowadays, Vietnam Airlines connects 19 cities throughout the country and 42 international destinations (including cypher-sharing work) in Asia, Europe, US and Australia,.Mission As a flag carrier, Vietnam Airline wants to be the bridge over between Vietnam and otherwise countries in the do main(prenominal) and bring Vietnam cultural to the world (Vietnam Airline, 2008).The Internat ional Air Transport Association (as cited by Chan (2000)) predicts air go in Asian Pacific allow account for 40 % in 2010. The potential of this air hose market increases due to the particular that the attractive of tourism, the emergent economies and the increase twist of middle-class. Un uniform in Western country, surface transportation, much(prenominal) as railways, mellowways in Asia is not good and therefore, it understructure lay down opportunities for airline transportation as the only and the faster way.Like other countries in Asia, the potential of Vietnam market is high and untapped. In 2007, 4.2 million foreign visitors go awayled to Vietnam, 16 per cent more than in 2006 (Sydney cockcrow Herald, 2008). And according to Sydney Morning Herald (2008), Vietnam is ranked as number 4 by The cosmos Travel and Tourism Council on its list of the worlds fastest growing affect destinations.Vietnams domestic market is as well as highly potential due to the fact that su rface transportation infrastructure is not competitive. It takes more than 30 hours to travel by train, from Hanoi to Ho Chi Minh City, much higher than about 2 hours of normal flight. Other alternative is coaches which also take clock measure and inconvenient. Although average income per capita of Vietnamese is only 835 US Dollars (in 2007) (General Statistics map of Vietnam, 2008), lower than other neighbour countries, such as Thailand, Malaysia, Sin scissureore the income increases gradually in the dying few years increase 7% per annum, shows the tourism potential of this airline in Vietnam market. Moreover, due to high population density and air opportunities in ii largest economic hubs of Vietnam Hanoi and Ho Chi Minh City, travel acquire for business purpose is very high.However, aviation divine wait on quality in Vietnam is farther behind the international standard. It is very easy to rise up piles of articles of customers complaints about all three domestic airli nes in Vietnam Vietnam Airlines, Indochina Airlines, Jetstar Pacific. Even in Vietnam Airlines, the national flag carrier and full advantage airline, emolument rescue is mainly product-oriented which has set the mind of focus board to be far apart from customer-oriented. Customer dis cheer varies from booking go, poor catering, the temper of air conclave to luggage delivery work.Broad aim of the researchUse SERVQUAL sit around to assess customer satisfaction and service quality of Vietnam Airlines. inquiry questionsHow hind end the customer satisfaction with Vietnam Airlines be described?How satisfied of Vietnam Airlines customer with its services?How raft Vietnam Airlines managers improve the service satisfaction among Vietnam Airlines customers?The main purpose of this learning is to investigate customer satisfaction in airline industry. In the chosen airline, Vietnam Airlines, the author aims to explore what customer satisfaction is in the perceptions of the airline p assengers and find the solutions to improve customer satisfaction. By analyzing questionnaires and interview of customers, customer satisfaction tier will be examined and after that, new strategies and recommendations will be stipulation for Vietnam Airlines to enhance service quality. This study aims to help Vietnam Airlines instruction to bust call the customers needs and expectations. It will also play a role in identifying the present situation of this flag carrier and suggest future strategies for better customers service.Conceptual frameworkTo investigate the service quality and customer satisfaction of Vietnam Airlines, I will using up the SERVQUAL model (Parasuraman et al, 1985, as cited by Chau and Kao (2009)) which the de literature REVIEWThe importance of customer satisfactionThank to good services and customer satisfaction is met, behavioral acts of customer give the axe affect the advantageousness and market share of a firm through three main behavior word-of- rim, repurchase intention and positive feedback.The first customer behavior is word of mouth, defined by Saha and Theinge (2009) as a light of information about products and services that passes from one customer to other and shag be utilise as authorityable source of information to evaluate recommendations (mouth to mouth marketing). In all case, customer satisfaction does not always create mouth-to-mouth marketing unless it is a necessity that satisfaction is met for positive word-of-mouth. Research conducted by Babin (2005) shows that not only pleased customers get world-of-mouth but also extremely dissatisfied customers causes negative feedback and controlling two flows of information is necessity for marketers.Secondly, good services also lead to repurchase intention or customer loyalty. It is very necessary to gain loyalty because it is cheaper to keep grey-headed customers than lure new ones from other service providers. Airline carriers often use frequent flyer schem e but it is not often utilize for budget airlines due to the high cost. Only by services and inexpensive price, low cost carriers can maintain the number of customers.Another behavior of customers as mentioned above, customer behavior, refers to transmission of complaints and compliments to service suppliers. Soderlund (1998) shows that dissatisfied customers tends to generate negative feedback than positive one from satisfied customers. The number of feedback cannot be the about precise method for customer analysis but it is useful to call consumer trends and improve services.Customer satisfaction in airline industry Thai and Chan (2002) define service satisfaction as the set up purchase evaluation of consumption experience. Unlike material products or pure services, airline service- like other hospitality services is combination of tangible products and quality of service offered to passengers. For example, satisfaction with hospitality service- such as a restaurant repast i s amalgamation of the food for thought or drink (material product), the behavior of waiters or waitresses, and the environs of the restaurant (decoration, lighting).In aviation industry, the core products are only physically transport customers and their luggage between two destinations. Other services in a flight, such as making enquiry and booking, seat allocation, in-flight services and baggage handling are only secondary tasks but they can create dissatisfaction if it is performed badly.Service quality and customer satisfaction becomes vital in the sustainability of aviation industry, basing on following criteria financial data, fares, passenger load factors, service related issues (Sultan and Simpson, 2000). Sultan and Simpson (2000) suggest marketing strategies for airline industry taper on customer satisfaction, rather than troupe profit. Airline service can also be rated in terms of volt dimensions overall performance, comfort, service, food and website (Rhoades, 2006). On the other hand, Rhoades and Waguespack (2005) points out the operational measures of airline service qualities the number of flight delays, mishandled baggage, overbooks flights and consumer complaints.Only a few airlines (including Sin open frameore Airlines, British Airways and American Airlines) can establish the reputation of high service quality (Chan, 2000). These airlines are successful in positioning themselves, not by offering the cheapest prices but delivering excellent service quality. Providing consistent service quality is a scrap for all companies in service sector, including airline industry. In these days, to keep the high level of quality standard, mega carriers and small airlines are cooperating rather than competing with others by sub-contracting, code sharing and global marketing network. (Nejati et al, 2008). The formation of these alliances increases the benefit of economies of scale by enhancing flight availability and yield from customers. However, to wor k in effective way, two airlines must offer similar service level and position themselves in the same way in the market.Customer satisfaction MeasurementSERVQUAL -the gap model which is firstly proposed by Parasuraman (1985) (as cited by Nejati, 2008) is a widely used model and has been applied for plenty of service industries public services (Bryland (2001) and Wisniewski (2001)), police force services (Donnelly et al, 2006), heath care (Kilbourne, 2004), mobile communication (Lai et al, 2007), etc. SERVQUAL is ground on the assumption that the service quality is measured by the gap between the customers needs and wants of service and the actual service quality that customers fool from service provider (Donnelly, 2006). If the service is over customers expectation, it is assessed as excellent service otherwise, the service becomes unacceptable. It is a useful method because service quality is assessed from customers perspectives, and by comparing and contrasting the difference b etween the each customers groups and the differences between the company and its competitors, managers know where they are in the market, how to position the service and which group will be the target customers. Zeithaml (1990) (As cited by Donnelly et al, 2006) identifies five dimensions of service quality management-Tangibles the existence of modern equipment and facilities, professional employees, and communication materials. Reliability performing the service as promised, carrying out the service right at the first time and managing to solve customer services problems. Responsiveness willingness to help customers, provide strike service and readiness to customers request. Assurance. The knowledge and courtesy of employees and their ability to convey trust and confidence. Empathy understanding customers need and wants and giving customers individual attention, convenient business hours.Among the five gaps of SERVQUAL, this research concentrates on Gap 5- the difference between c ustomers expectation and perception. The origin for this limitation of the research due to the fact that it is the only gap that can be investigated solely by the data provided by customers while other gaps need information from management board and the company itself.BIBILIOGRAPHYBoddy, D. (2008), Management An introduction, fourth edn, Pearson discipline Limited Essex.Bryman, A. and Bell, E. (2007), Business research methods, 2nd edn, Oxford University Express in the buff York.Collis, J. and Hussey, R. (2009), Business Research A practical guide for undergraduate and post graduate students, 3rd edn, Palgrave Macmillan Hampshire.Chan, D. 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