An investigation on the impact of loyalty scheme on tourist fidelity towards the aviation industry

Dissertation

TABLE OF CONTENTS
TITLE:.............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
CHAPTER 3: RESEARCH METHODLOGY..............................................................................20
3.1 What it’s all about................................................................................................................20
3.2 Research strategy.................................................................................................................20
Introduction................................................................................................................................20
Case study..................................................................................................................................20
Survey........................................................................................................................................20
Survey instrument......................................................................................................................21
Action research..........................................................................................................................21
Ethnography...............................................................................................................................22
Experimental research...............................................................................................................22
Historical research.....................................................................................................................22
Grounded theory........................................................................................................................22
Quantitative vs qualitative research...........................................................................................22
Sampling technique...................................................................................................................23
Positive and phenomenology.....................................................................................................24
Research philosophy..................................................................................................................24
Reliability and validity..............................................................................................................25
Data collection...........................................................................................................................25
Recruitment strategy..................................................................................................................26
Framework for data analysis......................................................................................................26
Limitation and potential analysis...............................................................................................27
Further reading...........................................................................................................................27
3.3 Summary of key points........................................................................................................28
CHATPER 4: DATA ANALYSIS................................................................................................29
4.1 Introduction..........................................................................................................................29
4.2 Thematic analysis................................................................................................................29
Correlation.................................................................................................................................42

4.3 Discussion in relation to literature review findings.............................................................44
CHAPTER 5: RECOMMENDATION AND CONCLUSION.....................................................47
5.1 Conclusion...........................................................................................................................47
5.2 Recommendation.................................................................................................................49
REFEENCES.................................................................................................................................50
Appendix 1.....................................................................................................................................54
Appendix 2.....................................................................................................................................56
Figure 1:Flyer card of British Airways..........................................................................................59
Figure 2:study found that BA burned 51% more fuel per passenger than Norwegian, which
ranked firs......................................................................................................................................60

TITLE:
“An investigation on the impact of loyalty scheme on tourist fidelity towards the aviation
industry”- A study of British Airways
CHAPTER 1: INTRODUCTION
Overview of the Research
Customer loyalty can be described as the result of positive emotional experience and
physical attributes which are based on satisfaction and perceived value of an experience in
regards to a product and service (Best, 2012). Consumer loyalty is also consisting as an essential
element for an organisation. In this modern era competition is so high at market place and
organisations are concern on gaining attention of customers through offering them goods and
services as per the choice and preference of customers.
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Over the past five years airline can be considered as the most developing sector and helps
in providing various opportunities and benefits to the economy of country. All organisation come
into existence in order to earn a huge amount of profit and attain a secure and successful position
at market place (Attar, Haghighat,and Ghassemi, 2016, pp.313-316). There is no doubt that
strong loyalty programs motivate existing buyers to purchase product on frequent basis. Loyalty
of customer exceeds beyond its behaviour and incorporates liking, preference and future
intension to purchase product from the same industry. Airline industry concern on providing
most satisfactory products and services to their regular customers as to sustain them for long
time. The present research is based on investigation on the impact of loyalty scheme on tourist
fidelity towards the British Airways. Loyal customers are beneficial for organisational growth
and success. Organisations are widely focused on attracting customers through offering them
various offers and high quality products and services. Services which are offered by different
companies in the aviation industry are different from one another depending upon their size and
scope. On the other hand, a study of British Airways is comparatively operating on lower scope
and is providing service at economic prices. Both of these are part of aviation industry but are
using distinct approaches to raise the total customer loyally.
Background of the research
Customer loyalty and satisfaction can be consisting as a most important element of each
business organisation. It is effective for attaining long term objectives in effective and efficient
manner. Now-a-days, it is very common in many service sector to establish great relationship
with its target customers and tries to retain them for longer period (Eid, 2011, pp.78).
Organisations are very much focused on gaining loyalty of customers as to creating benefits and
profit form firm. This dissertation talks about loyalty scheme which are offered by airline
industry in order to retaining customer loyalty and satisfaction. Large airline industry such as
British Airways is concern on providing variety of goods and services to their significant buyers
in order to sustaining them for long time of business activities. Contradict to this less efforts are
given by easy jet to ensure innovation and monotonous activities are carried out as it fall under
the category of a domestic airline. In UK, British Airways is considered as the largest airline
based on fleet size. The company was created in 1919 with a merger of four different companies
namely, Northeast Airlines, Cambrian Airways, British European Airways and British Overseas
Airways Corporation. In 2012, British Airways merged with Iberia, creating International
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Airlines Group which is considered as the world's third large airline group in terms of generating
annual revenue and ranked second largest in Europe. Easy jet follows the strategy of satisfying
the customer by providing facilities at affordable prices so that more and more customers can be
attracted towards the same (Espevik, Johnsen and Eid, 2011, pp.352-377). On the other hand,
British Airways focus on improving the present comfort level of customer by adding more
valuable facility which can raise the standards of passengers in terms of their life style. This
research dissertation mainly talks about loyalty program of airline industry that aid in satisfying
and retaining customer for longer duration. Executive Club, discount offers, free food etc. are
some of most popular loyalty programs which are significantly adopted by airline firms.
Research Aim
Aim is a predetermined statement which provides a clear direction to the researcher to
carry out the work n proper manner. This part of research provides a clear intention of
conducting the research project (Ramanathan and Ramanathan, 2011, pp.7-25).
The essential aim of this particular research is “An investigation on the impact of loyalty scheme
on tourist fidelity towards the British Airways”
Research objectives
These are considered as the detailed objective that depicts what a researcher will
researched during its study. The main objective of investigator is to get the right solution of a
right problem. Basically, these are the results sought out mainly by the researcher at the end of
research process. This help in providing guidance and direction to researcher so that they can
achieve what they wanted to in an effective and efficient manner. Some of the main objective of
research dissertation is mentioned below:
1. To measure the effectiveness of loyalty scheme in market.
2. To determine the reason behind loyalty of stakeholders and customers.
3. To analyse the impact of loyalty development programme on tourist allegiances of British
Airways.
4. To recommend the ways in which loyalty schemes can be made more effective for
attracting more tourist towards British Airways.
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Figure 1: Responsibility of a channel manager within Airline Industry
Source: (Responsibility of a channel manager within Airline Industry, 2018)
.
Research Question
This is considered as another important part of researchdissertation that aid in
establishing strong relationship between objectives and aims of research. Here questions are
prepared on the basis of above mentioned research objective. Mentioned below are some
research question:
 How to measure the effectiveness of loyalty scheme in market?
 What are the reasons behind loyalty of stakeholders and customers?
 How loyalty development programme can impact on tourist allegiances British Airways?
Special and General Terms involved in Research
Loyalty is a trait which is rarely found in individuals and therefore when company
engages in business it seeks for customers who will be a regular purchaser of its goods and
services. Airline industry is a kind of industry where profit margin is low and competition is high
and in such as case if a company in this sector would be able to get customers who would remain
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loyal with company throughout then it can be a strategic asset for them. Customer would want to
stick with one particular airline as the services provided by them might be different from other
competitors and the company would be giving extra benefits and offers to its regular customers.
Both company and customers will get various kinds of benefits, if there will be a loyalty scheme
that will be in place. The British Airways will be able to retain its customers.. History suggests
that if there is a proper loyalty scheme that is in place it can ensure that company's customer base
will increase going forward and it will contribute to company's growth and profitability. It is
quite clear from this analysis that only those companies will be able to succeed in future which
will focus on improving customer loyalty and various program will be initiated for the same.
Reason for selection of Topic
The main objective behind selection of this topic was to analyse the level of loyalty that
consumers have towards the aviation industry after the implementation of Loyalty scheme for
tourists. It is very crucial for every organisation to retain its loyal customers over a longer period
of time as they can contribute for growth of business. Loyalty is something which cannot be
gained by any company very easily and therefore it is of paramount importance that company
should implement various policies and strategies that will result in maintenance of loyalty of
customers. Some of the reasons behind selection of this topic includes British Airways will be
able to know its strength in that particular industry and how it can improve the same. A company
should focus on improving loyalty of its customers and stakeholders, for this purpose the
management of company should make necessary decisions (Laroche, Habibi and Richard, 2013,
pp.76-82). The topic has been selected as this will enhance the skills as well as knowledge of
learner and by studying about this loyalty scheme of British Airways, learner will be able to
analysis on how customer loyalty effects business and its profitability and what measures are
adopted by organisations to retain its loyal customers.
Chapter Structure of research dissertation
There should be proper format in order to perform the research in effective manner. The
presentation of research should be design in effective manner so that it can be easily understood
by anyone. In this case researcher is going to implement definite structure which is mentioned
below:
Chapter 1: Introduction
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