Analysis of Tourism and Hospitality Industry Studies

The provided document is a collection of various study materials related to the tourism and hospitality industry. It includes research papers on topics such as customer satisfaction and loyalty in hotels, the impact of shared mental models on team performance, and the effects of social media on travel suppliers. Additionally, it references studies on safety culture in aviation and healthcare, and educational research methods. The document also provides a comparison of fuel consumption between British Airways and Norwegian Air. It is essential for students and researchers in the tourism and hospitality industry to analyze these studies and gain insights from academic research papers.

Impact of loyalty schemes on customer
fidelity in the aviation industry

Table of Contents
LITERATURE REVIEW................................................................................................................1
2.1 Measure the effectiveness of loyalty scheme in market...................................................1
2.2 What are the reasons behind loyalty of stakeholders and customers...............................5
2.3 Impact of loyalty development programmes on tourist allegiances................................8
2.4 Recommendation for enhancing the quality of loyalty program....................................11
REFERENCES .............................................................................................................................14

LITERATURE REVIEW
2.1 Measure the effectiveness of loyalty scheme in market
The loyalty program is nothing new, but this means it can be outdated. As per the
investigation, the large number of customers groups are make effectiveness in the loyalty of
schemes and strategies in better manner. Every year business can expand their loyalty program in
the form of providing discounts, special promotions, free rewards system, etc. that can help in
redeem by customers. While customer loyalty program are common place, evidence indication
that are not seen as strategies which are rendering the services and facilities in better manner.
Therefore, the measurement of impact on customers loyalty program which is not essential and
develop new reward system such as vouchers, game platforms and loyalty cards in effective
manner. The common way that are used by marketing manager of entire aviation industry is to
measure the results of loyalty program which is simple for comparing with sales quality of large
number of staff members against the sales of non member, after that it will determine the high
level of sales number regarding loyalty program (Aaker and Joachimsthaler, 2012). There are
correct attribution which are missed the equation and the loyalty program is very complex for
analysing the company income and revenue in better manner. For measuring the effective loyalty
scheme, they need to follow all approaches and concept which are made by company. There are
various aviation companies which are also measure their customers loyalty system which help
them in analysing their needs and demand and according to their demand, they are given them
appropriate services and facilities. For example; British airways which is a multinational airline
company provide high quality based goods and services to their passengers as compared with
this there are different airline organisations such as Cello aviation, eastern airways, easy jet, etc.
which are offering low cost products and facilities to their passengers for making customers
loyalty in proper manner. This will maintain the goodwill and reputation of these organisation.
The loyalty scheme can encourage and motivate the business repeat and also assist their
customers satisfaction. There are advantages and disadvantages of various loyalty systems and
this can assess their effectiveness.
Point system is one of the common loyalty program that is determine as points system.
There are various customers who are earning high points while buying with the help of member
card. Such points are assembled and gathered in various sort of discount and advantages of
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customers. Along with this, point system is providing high loyalty program for their businesses
whose customers are making small but developing frequent buying systems. It is one of the great
point system which maintain loyalty system of Airline industry. This is one of the famous
company which provide effective services and facilities to their passengers. This is very simple
system and Airways sector can make random discount and special birthday rewards for
maintaining their buyers in better manner. While comparing between various aviation industry
such as Cello aviation, eastern airways, easy jet, etc. also offer these type of system and policies
which assist them maintaining customers loyalty.
Tier system is the major difference between tiered program and points programme is that
where tiered schemes can provide and offer reward system in the long time period. This system
work for serving small rewards for connecting with the program, after that they will increasing
the rewards cost by which customers will became loyal. It will tend towards work that can help
in doing appropriate task which need higher commitment such as insurance, travel and
hospitality sector (Chuah, Marimuthu and Ramayah, 2014). The airline sector will get
advantages with this system. If large customer base are buying small products and items then
they will enjoy the services and facilities which are provided to them in the airline. The tiered
system will discourage them for the next level of unachievable.
VIP status is all about for getting customers to paying future privileges that can gain
complex result or outcome, that can show the certain possibility in better manner. At the time
when VIP rewards program is tempting from different business point of view then they will
make and develop appropriate customers services and facilities in their airlines. For the whole
aviation sector, they are providing VIP system to their rich passengers and other low class people
does not getting all the high level services and facilities in proper manner.
Assess the effectiveness of rewards system is all about after execution of appropriate
customers loyalty program, this can be imperative while analysing and help in increasing the
retention system of customers or create high level of satisfaction among them. There are various
ways which help in doing effectiveness in the current business operations and functions. Some
terms which assist them in measuring the loyalty scheme in the large market place and also they
can evaluate the rewards program success level.
Customer retention rate is clearly describe about measurement and evaluation of how
will customers are stay in the market place for long time period. The overall point of loyalty
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scheme assist in enhancing the large number of buyers who are survive in the business area for
lengthy period of time (Couto, Batista and Botelho, 2011). For measuring and evaluating the
difference between customer retention among large group of members which is one of the major
ways for determining the loyalty scheme in the large market area. With the successful loyalty
program, there are various number which can be increasing in given time period as the huge
number of loyalty scheme are help in growing the members which lead towards gaining
profitability and productivity.
Customer effort score will help in measuring the business customer services and
facilities which are based on actual experience where customers have with their firm. Customer
effort score determine with that how much efforts are putting for resolving major issues and
problems within an organisation. Along with this, loyalty program are highlighting the expedited
requests like British Airways and other airline companies are supplying accurate services and
facilities to their passengers in appropriate manner.
Negative Move is that which help in measuring and evaluating how various customers are
attracted with their firm at the large market place (Espevik, Johnsen and Eid, 2011). Therefore,
in negative point is the measurement of buyers who are leaving, updating their membership and
purchase extra services or facilities in appropriate way. So negative churn is an essential metric
for tracking at the time of smoothly running the loyalty program. For doing proper evaluation
and measurement, it will required to capable for individual users or customers and also track the
volume of buying services in given time period. This also help in maintaining and controlling the
whole loyalty scheme in the market area.
Net promoter score is term as customer satisfaction measured which can derivable from
simple customer response. It is one of the most general form of NPS which is the degree where
customers can recommend with firm to others that are based on scale from one to ten.
Loyalty programmes is establishing in high range due in order to gain maximum benefits
by satisfying clients needs or demands. Their main motive is to expand the business across the
regions for competing with their rivalries. For example; British airways is facing competition
when other association are flying their planes in same routes like; New York and JFK London is
very busy route due to which they are encountering numerous of issues. However, around 30
flights are going through the same route in a single day such as; American, Virgin, Delta,
Norwegian and Air India. Hence, by having same path companies needs to make distinct
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initiatives by considering necessary facts or figures so that they can easily compete with
fluctuation factors such as; emergence of several substitutes, changes in political norms, currency
alteration and so on. Aviation industry is trying to expand their business by coming with best
programmes and sessions to satisfied their consumer needs or demands. In fact, all the
competitors are focussing in managing each or every elements such as spending funds in
launching distinct loyalty sessions for encouraging the minds of distinct customers.
(Source:- Study found that BA burned 51% more fuel per passenger than Norwegian,
which ranked first, 2015)
As per above data it has been assessed that competition is increasing day by day in
aviation industry due to which companies are encountering major problems while designing
loyalty programmes. Along with this environment is getting affected in various ways; fuel
created major problem to the normal people as society is fully influenced. Thus, above
4
Illustration 1: study found that BA burned 51% more fuel per passenger than Norwegian,
which ranked first

diagrammatic representation said that British Airways is focussing in preventing the surrounding
from getting exploited in order to enhance their image at marketplace. Along with this, their
competitors are increasing but by taking correct initiatives British Airways get succeeded in
managing their position as well as establishing goodwill at marketplace. Above digram shows
the current status of various competitors in terms of transportation fuel.
2.2 What are the reasons behind loyalty of stakeholders and customers
Loyalty is more powerful word, and business has been capable for motivating and
inspiring their company position in better manner. At the time, when business stakeholders are
satisfied with this, so they are being loyal, competition become correct or relevant. An
organisation seeks towards loyalty from customers or stakeholders, their high level of
performance by leaders that directly impact on proactively developing their new and improved
goods and services for their buyers and its stakeholders. They are providing best quality based
data and information to their customers and on the other hand, they are partner with their buyers
which help them and creating business opportunities. Loyalty among customers and an enterprise
is possible when the role of leaders are present in large number of groups. The leader are
improving and maintaining their company effectiveness in better manner (Hussain, Rahman and
Hassan, 2012). While regenerating the income, it is necessary for customers is to sustain with the
customers loyalty regarding customer base. The performance of effective leaders should be
highlighted, this will desired towards customers loyalty, impact on business operations and
functions to make creative and innovative things, also developing appropriate decisions with the
help of customers and many other. All such activities and actions are concentrate on anticipation
of customers regarding their cost, quality and services. For instance; British airways are
providing effective facilities and services to their stakeholders and customers and also analysing
the reason behind their loyalty in huge manner. This will create and make appropriate reason for
developing and maintaining loyalty among customers and stakeholders regarding aviation sector
services. On the other hand airline organisation such as Cello aviation, eastern airways, easy jet,
etc. that are also adopting various methods and techniques for maintaining customers loyalty.
The concept of customer and stakeholders loyalty is the main goal which manage and
maintain the role of company leaders which is applicable for other stakeholders, employees,
community, society and owners. All such stakeholders have their related demand, needs and all
the leaders have their own goals and objectives which help in performing better task or work
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which are able for motivating or inspiring the loyalty system (Janotta, 2013). There are various
reason which help in maintaining the customers loyalty that are described.
Strengthen the positive customer experience: As per the research, there are various
services and facilities which are offer by Airline industry company which help in maintaining
and increasing the customers loyalty towards their items and products which are provided by
them to their customers or passengers. At this stage, the customers need to understand about the
company different services and policies which they are serve at the time of using their facilities
within the air-plane. A loyalty program given the perfect scheme in proper manner.
For managing and maintaining effective relationship wit enhancing the opportunities and
lower the risk level of each relationship and organisation can increasing their quality of their
intangible assets and after this this will increasing the whole valuation of the business concern.
This will also assist in maintaining the relationship with customers, employees, suppliers.
Competitors, owners and government in proper manner. For each and every group of the
integrity principle, authenticity and engagement should be implemented. There are some
strategies and policies which as been implementing by British Airways which increasing the
customers and stakeholders loyalty.
Personalisation in the airline industry, there are various sectors which are satisfying their
passengers needs and demands with more personalised experience. For getting this, industry are
adopting latest technology and method for managing customers wants and demand (Minazzi,
2015). They are prefer the customers choice and according to their request they are fulfilling all
their needs and demands. British airways can given their passengers with more customised
travelling experience which remember them for long time period.
Rewards programs in Airlines industry giving rewards programme which has been
impulsive the power behind customers loyalty. Therefore, the loyalty system are also known as
frequent flier programs which have track the number and offer incentives such as tickets and
updating travel frequency. This system is given in fair manner to each and every passengers.
Revenue based program are structure to rewarding the airlines appropriate customers that are
based on spending money. The Airways rewards are satisfying the customers loyalty and it will
also increasing and maintaining the whole revenue based program. As compared with this, all the
other aviation sector are also providing high amount of reward system to their employees which
increasing their morale and boost them towards doing effective work.
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Customers feedback through surveys is one of the most essential factor which ensure the
customers loyalty. With the assistance of this, different airline are looking forward for
communicating with their customers and desired to analyse the major opportunities for
improving their services or facilities. The delay in flights will continue towards the large number
of passengers points and airline company are mainly concentrate on making and developing
improvement in their services in effective manner (Newsome, Moore and Dowling, 2012). It is
proactive approach for improving their customers services for analysing surveys and
examination of customer response for delay in flights of British Airways. The staff members of
airways need to effective communication with their customers which help them in enhancing
their relation and maintain this in strong way. For knowing the customers concern, airline are
capable for developing effective and motivated loyalty based on rapid customers services in
better manner. If an organisation provide them low cost tickets and other facilities then it will
create high level of loyalty among customer or stakeholders towards their services. British
Airways are differentiated with their rivals from the competitors, developing customers loyalty
and encouraging income or revenue that are required to incorporate certain methods and
techniques.
Premium economy air cabins is all about purchasing their ticket and embark for higher
the customers loyalty in the airline in the future that are totally depend on their experience. They
are providing comfortable seats which is not higher reserved for first class passengers. It is
becoming the appropriate rules and regulations related to economy cabin and airlines are striving
for providing customers along with sense of customised. It is fastest growing cabin sector and
they are offering premium economy and this can estimated in better manner. British airways are
doing important amount of investigation which give preferences and choice of the customers.
The airline are expanding their economy premium that includes wool seating, sound system,
LED based television, lighting and as compare with this all other airlines companies are also
providing their customers effective needs and wants in better manner. These are different
methods which help in increasing customers loyalty in effective manner. This will help in
managing and maintaining the whole function of the business operations and their functions
(Patankar, 2012).
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2.3 Impact of loyalty development programmes on tourist allegiances
Managers of overall industry is trying to focussing in enhancement programmes for
improving the company performance in much better way by satisfying customers needs or
demands in defined time frame. Their main objective is to grab the opportunities which is
emerging at market by adopting various useful strategies such as; conducting awareness sessions,
promoting schemes and so on. Consumers are seen as most indispensable element for
organization success because products or services are finally consumed by them only. On
contrary to this employees are consider as mandatory asset for company because business
activities are managed and regulated by them. Therefore, it has been analysed that employees
and consumers both of them are playing every eminent role in success. Beside this, entire
aviation industry are engaging in several programmes for creating positive relations with their
users in order to gain their trust or loyalty. In fact, attainment of client loyalty is highly useful for
tourist commitments and preferences as it affects the sales performance of an organization.
Tourism industry is growing in a rapid sense due to increase in consumer demands as
every individual wanted to try something new or different as well as wish to experience
innovative things. Thus, British airways is trying to gain loyalty of consumers by serving them in
a best manner. Loyal clients are seen as primary elements for every association because cost of
selling new customers is more than offering it to existing one. Basically, loyalty programmes are
those activity in which attractive rewards is provide by an organization to its users in order to
enforce them towards purchasing specific product (Smith, 2012). Travelling industry is
becoming more competitive due to emergence of new entering rivalries with close substitutes.
For example; British airways is feeling conscious due to introduction of several other aviation
organization with totally unique or different ideas. In order to compete with threats and
competition company is involving in establishing various other events for gaining consumer
trust. On contrary to this, it has been assessed that number of aviation companies are identyified
which are facing major problem while implementing loyalty programmes such as; easy jet is not
having that much of positive image as compare with their competitors. Hence, because of
increment in competition British airways is getting enforced towards introducing creative ideas
or thoughts of capturing minds of customers as well as trying to retaining. For example;
insurance of hospitality industry, additional benefits and so on.
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According to Prasad Dhamdhere, 2016 it has been stated that loyalty marketing
programmes plays a very eminent role in maximizing the income level of business entity. For
instance; in US consumers hold around 3.3 billion memberships due to which around 26%
revenue get increased in coming time frame. Aviation industry is improving their performance
by adopting several additional strategies as well as advanced technology to seek the attention of
customers. Moreover, some of the major loyalty events are; offering special discounts on buying
products, packages, seasonal offers and so on. Loyalty programmes have a major impact on
entire airline industry.
Impact of loyalty on income is all about entire corporate world are establishing for
gaining maximum profits by accomplishing business activities in much better way. In fact,
strong loyalty sessions are useful in maximizing the spending potentiality of consumers as well
as they get attracted towards particular products.
(Source:- European airline, 2015)
According to this graphical representation it has been analysed that sales of industry can
automatically increased due to loyal; consumers because they are regular and trustable one. In
fact, data is showing the profit level of aviation sector which get maximized due to more or more
loyalty of clients. For instance; British airways is investing maximum funds in gaining consumer
attention by accomplishing various useful activities. Therefore, above data is showing the major
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Illustration 2: European airline

relationship between sales and loyalty of clients. It means foreign clients are automatically get
influenced by services offered by company due to its effectiveness and uniqueness. Apart from
this, overall aviation industry is focussing on consumer choice or preferences and trying to
maximize retention through several other events which may attract the minds of clients.
Impact of loyalty on acquisition is essential to gain the attention of users by adopting
various other programmes such as; advertisement, PR campaigns, marketing, social media and so
on. Loyalty sessions are consuming minimum amount as compared with advanced technology of
acquiring consumers because social media as well as other mode of tools are adopting maximum
amount of funds. Whereas, events are not consisting high range of funds due to presence of users
(Taylor, 2011). Additionally, campaigns are also using by industry for improving their
performance across international marketplace because with the use of these type of tools
company can easily gain the information about specific users. Acquisition is all about seeking
minds of final customers by adopting some of the useful tools or machinery in order to create a
trustworthy connection between users and company. As a result, industry get succeeded in
continuing their business for long term and attain future vision in a defined time frame. In today's
world consumers are demanding more or more from their selected brands. For example; loyal
clients of British airways are demanding more economy in minimum price, some major special
discounts and so on. Hence, it has been assessed that loyalty programmes are seen as major door
through users can enter.
Impact of loyalty on finding suitable users is element consumers whomsoever are
buying discounted products and services then it act as heavy burden on organizational financial
health. Basically, profit or amount which is earned by these type of customers are very less as
compared with amount that incurred while serving them. For instance; According to Gary
Hawkins who is CEO of US based Green Hills supermarket identified that out of 10 only 3
consumers are helps in generating enough profit for covering the expense which is incurred
during entire process.
By analysing all the above information one thing is determined that aviation industry is
fully influenced by loyalty programmes because it affects the company performance, sales,
acquisition hence forth. Additionally, aviation industry is also engaged in various other loyalty
development programmes for improving the current method of capturing consumers in order to
gain more return on initial investment.
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2.4 Recommendation for enhancing the quality of loyalty program
Aviation industry are involving in conducting or planning various programmes or
sessions for encouraging customers towards specific brand in order to maximize the income level
of overall industry. Thus, entire aviation industry is concentrating in designing few major
activities or strategies to analyse the need or demand of users for making plans as per current
situations. In today's advanced world every consumers are becoming more qualitative instead of
low price because of image at societal place. In order to maintain goodwill an association is
engaging in offering best quality to their customers which resulted in maximization of users
demands. Beside this, numerous of loyalty programmes or sessions are introducing in these days
for motivating society towards particular brand in order to improve the technique of serving
clients. It helps an association in various manner such as; increase the amount of revenue, create
a healthy relation with final users, establish the image at marketplace and so on. As a result,
airline industry can automatically attain their long term and short term vision by gaining trust of
domestic as well as foreign clients (Wallen and Fraenkel, 2013). Apart from this number of
things needs to improved at global level in order to control the possibilities of mistakes and
losses. Some of the necessary initiatives which must be take by entire aviation industry to gain
maximum benefits in a minimum time frame.
Consideration of consumer choice is a initial thing which needs to consider is that while
designing loyalty sessions it is essential for company to have a personal conversation or
interaction with distinct consumers. As everyone knows that choice or preferences are differ
from users to users due to number of reason such as; background, religion, beliefs, environment
and so on. Therefore, company needs to understand the preferences of local, regional and foreign
clients in order to control the probabilities of losses and errors. However, overall sector is a most
successful industry at global market due to which they need to consider essential elements for
defending their image from getting misused. Thus, managers of industry always identifies the
requirement of desired consumers for enhancing productivity which resulted in improvement in
quality of loyalty programmes.
Need to keep it on time means in this running world every individual wanted immediate
gratification without wasting time because all are in hurry and wanted to attain their goals in a
less time. It means company is liable for conducting things on a timely basis for preventing
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consumers in better way. Duration is most indispensable factor which must be consider for
improving the performance of an association which resulted in acquiring loyalty of clients.
(Source:- Running Out of Time, 2018)
Easy to access means few uneducated people don't know how to understand various
things as well as not aware about the method of accessing advanced technologies. Therefore, in
order to resolve these kind of problems company needs to make easy plan or policies so that
every member can easily access without facing much more issues.
Make it valuable says that loyalty programmes is consuming lots of money and time as
well as required experience for attaining target set at initial stage. Mostly, consumers always
prefer valuable things which is useful for their use. Thus, company needs to make things
valuable instead of invaluable.
Apart from all these above factors it has been understood that as per the viewpoint of
Wallen and Fraenkel (2013) it is stated that number of things needs to changed for improving
quality of loyalty programmes because gaining satisfaction of users is highly complex process.
Meanwhile every individual is having their own choice or preferences due to which British
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Illustration 3: Running Out of Time

airways is focussing on maintaining quality of events. However, quality is maintained through
usage of modern technologies as well as required to introduce advanced things at marketplace in
order to fulfil the demand of clients. Apart from all the above data some of the major changes
that must be done by company for improving quality of loyalty programmes.
Plan needs to make appropriate strategy for reducing possibilities of mistakes and errors
in a minimum time frame. Along with this, it aids in controlling losses by understanding the
needs of customers which are differ in various terms.
According to Newsome, Moore and Dowling, 2012 it is stated that appoint skilled or
talented employees helps mangers while accomplishing business activities by implementing all
the activities in much appropriate manner. Employees are playing a very crucial role at
workplace by performing business activities by considering things as well as fulfils the needs of
various users.
Implement advanced technology is a major component or modern tools are playing
major role while designing loyalty programmes because it aids in completing set objectives in a
minimum time period. Along with this, aids in protecting confidential information from
exploitative activities. Moreover, overall industry is surrounded with various several tools and
consumers are getting addicted towards modern technologies due to which company needs to
focus on advanced tools for attaining set objectives.
Hence, it has been determined that above factors plays a very eminent role in improving
the performance of entire industry by conducting various loyalty programmes at marketplace. As
a result, industry can easily enforce the desired users towards buying of specific items in order to
maximize profit level of entire industry. Thus, industry is considering necessary elements for
maintaining the service quality in order to cope up with current emerging problems which affects
the success of an association in various manner.
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REFERENCES
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Couto, J. P. A., Batista, M. D. G. C. and Botelho, D. R., 2011. Tourists' satisfaction and loyalty
in the hotel business: an application to the island of São Miguel, Azores. Working Paper
Series.
Espevik, R., Johnsen, B. H. and Eid, J., 2011. Outcomes of shared mental models of team
members in cross training and high-intensity simulations. Journal of Cognitive
Engineering and Decision Making. 5(4). pp.352-377.
Hussain, F., Rahman, M.B.B.S. and Hassan, M.G.B., 2012. Exploring usefulness of CRM and IT
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Minazzi, R., 2015. Social Media Impacts on Travel Suppliers: Social Media Marketing. In Social
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Newsome, D., Moore, S. A. and Dowling, R. K., 2012. Natural area tourism: Ecology, impacts
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Patankar, M.S., 2012. Safety culture: Building and sustaining a cultural change in aviation and
healthcare. Ashgate Publishing, Ltd.
Smith, V. L. ed., 2012. Hosts and guests: The anthropology of tourism. University of
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Taylor, J., 2011. Decision management systems: a practical guide to using business rules and
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Wallen, N. E. and Fraenkel, J. R., 2013. Educational research: A guide to the process. Routledge.
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Study found that BA burned 51% more fuel per passenger than Norwegian, which ranked first,
2015. [Online]. Available
through<http://www.dailymail.co.uk/travel/travel_news/article-3323529/British-
Airways-named-worst-transatlantic-airline-fuel-consumption.html>.
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