1. Passenger Experience for Airlines Evaluating experience drivers for Airline passengers Disclaimer: All the contents of this document are solely the views of the author and have been sourced from publicly available sources only. No part of this document has been copied/reproduced in violation of IP or Copyright laws

2. Contents Current Challenges facing Airline industry Competitive Strategies adopted by Airlines Airline Passenger Lifecycle framework Passenger Experience dimensions Select Global leading practices

3. Current Challenges The airline industry faces a myriad of challenges, both external and internal which pose unique issues impacting the overall industry profitability External Challenges Internal Challenges

5. Capacity Optimization (E.g. Increasing Load Factors by driving down capacity)

6. Employee Layoffs / Pay cuts

8. Revenue Management

9. Diversifying Income Streams

10. Discounts & Promotions

12. Customer Experience Management

13. Brand Creation and Brand Loyalty

14. Targeted Value PropositionIncreased passenger share Increased revenue & market share Improved brand and value creation Customer loyalty adding to CLV* Sustained competitive advantage Customer Leadership * CLV – Customer Lifetime Value

15. The Airline passenger Lifecycle Passenger Value Drivers 1.1 Discover Flight Information & Routes 3.1 Flight Punctuality 4.1 Landing & Taxiing to Terminal 2.1 Arriving at Airport 3.1 On-Time Performance 1.2 Check for Price & Promotions 3.2 Cabin Crew 4.2 Announcements 2.2 Check – In Process 3.2 Cabin Crew 1.3 Ease of Booking / Manage changes 3.3 Cabin Ambience 4.3 Baggage Claim 2.3 Lounge Facilities 3.3 Cabin Ambience 1.4 Customer Service 3.4 Safety Arrangements 4.4 Lost Baggage Management 2.4 Boarding 3.5 In-Flight Entertainment & Meals 4.5 Cab/Hotel Services 1.5 Allied Services (Frequent Flyer programs) 2.5 Flight Delays / Missed Flights Self Service Channels Airline Website Travel Portals Check – In Kiosks Safety Manuals In Flight Entertainment Airline Website Mobile Phone Social Media Mobile Phone Social Media Assisted Channels Airline CC Travel Portal CC Airline CC Social Media Email Social Media Physical Channel Travel Agents Airline Offices Ground Staff Cabin Crew Ground Staff Cabin Crew Value Creation Brand Creation / Recognition

16. Passenger Experience Dimensions – Reservation Phase Integrated Multi – Channel Experience delivery 1.1 Discover Flight Information & Routes 1.2 Check for Price & Promotions 1.3 Ease of Booking / Manage changes 1.4. Customer Service 1.5 Allied Services (Frequent Flyer programs)

17. Passenger Experience Dimensions – Departure Phase Integrated Multi – Channel Experience delivery 2.1 Arriving at Airport 2.2 Check–In process 2.3 Lounge facilities 2.4 Boarding 2.5 Flight Delays / Missed Flights

18. Passenger Experience Dimensions – In-Flight Phase On-Time Performance Integrated Multi – Channel Experience delivery 3.2 Cabin Crew 3.3 Cabin Ambience 3.4 Safety Arrangements 3.5 In-Flight Entertainment & meal options

19. Passenger Experience Dimensions – Arrival Phase 4.1 Landing & Taxiing to Terminal Integrated Multi – Channel Experience delivery 4.2 In flight Announcement 4.3 Baggage Claim 4.4 Lost Baggage Management 4.5 Cab/Hotel Services

20. Select Global Leading practices (1/5)Airlines adopting Social Media for Ticket reservations Malaysia Airlines has launched MHbuddy, a service which allows any of the more than 500 million people who use Facebook to not only book a flight with the airline, but to also integrate trip details into their social graph, identifying friends who might be sharing flights, or who will be at their destination. “Our passengers are spending more and more time using social networks and Malaysia Airlines is one of the most active airlines on social media including Facebook and Twitter. With MHbuddy we are pleased to provide our fans on social media an easy way to book a ticket without having to leave Facebook. In doing so, we have also opened another distribution channel for ticket sales,” – Dr. Amin Khan, Executive Vice President, Commercial Strategy, Malaysia Airlines.

21. Select Global Leading practices (2/5)Using Mobiles as a channel for providing Check-In services Trinity Mobile has just announced a 1,200% increase in the use of mobile boarding passes by airline passengers in the past year. While 2008 saw just 50,000 travelers take advantage of the technology, which works by using a scanner to read the QR code directly off the display of your smart phone, in 2009, that number had increased to 600,000. British Airways’ mobile app allows users to view flight information, timetables up to a year in advance, links to the airline’s Twitter page and also incorporates the mobile boarding pass

22. Select Global Leading practices (3/5)Brand building through Customer Forums Southwest uses the blog to circulate Marketing & Sales messages (e.g “we won the Freddies for the best frequent flyer program”), understand changing market needs and identify areas within the travel experience, that need to be optimized to foster even more loyal customers. Southwest passengers can blog about their experiences, rate southwest and give their fellow Southwest community friends tips and tricks how to make their travel to and at the destination more enjoyable.

23. Select Global Leading practices (4/5)“Upper Class Wing” by Virgin Airlines Virgin Atlantic has introduced an exclusive “upper class wing” in Heathrow, to optimize the much dreaded Heathrow travel experience for its premium customers

24. Select Global Leading practices (5/5)Driving innovation in Loyalty programs Jet Airways, one of the leading Full Service Carriers in India, has launched a loyalty program for those passengers who travel extensively in short bursts of time in order to drive business in off-seasons. The airline offers a single fare option to passengers. Under the scheme, a passenger pays a fixed sum for a fixed duration and can then avail a pre-defined number of flights in that duration at a constant price.

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