Recommendation Report Based on Qantas Consumer Analysis

This report offers recommendations to Qantas based on consumer analysis to improve their services and mitigate issues. It includes short-term, medium-term, and long-term recommendations. The report also discusses the research findings and provides an introduction to Qantas Airways. The document type is a recommendation report and the type of assignment is based on Qantas consumer analysis.

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RECOMMENDATION REPORT BASED ON QANTAS
CONSUMER ANALYSIS

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Executive summary
Qantas airlines are one of the first growing aviation industries in Australia hosting travellers
across the country. The airlines connect with many countries conveying passengers to business
and holiday destination. Qantas has collaboration with multiple partners such as resorts and
banking systems that generates more revenue at the same time offer their customer with lucrative
combo packages. However, there are some nicks in the service and management system of
Qantas, this report is prepared that would offer recommendations helping the aviation firm to
mitigate issues by modifying customer services.

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Contents
Introduction......................................................................................................................................4
Research findings.............................................................................................................................4
Recommendations............................................................................................................................5
Short term.....................................................................................................................................5
Medium-term...............................................................................................................................6
Long term.....................................................................................................................................8
Conclusion.....................................................................................................................................10
Reference list.................................................................................................................................11

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Introduction
Qantas Airways limited are a popular frequent carrier in Australia serving different communities
for more than 100 years. The flight offers its customer with customized services with in-flight
dining facilities booking accommodation and entertainment for travellers. The carrier aims at
creating potential values for its every stakeholder by offering them world-class experiences. This
report will throw light on recommendations based on the prior report on Qantas consumer
analysis. The recommendations would help the aviation industry to design more dedicated
service in the near future through consumer satisfaction.
Mission statement: delivering today, acting responsibly and looking ahead
Research findings
Qantas has many competitors in the market such as Virgin and Tiger, in order to maintain its
brand value it seeks optimization of domestic routes so that customers can avail it at a cheap
price (qantas.com, 2019). As a result of increasing competition in the aviation industry, the fuel
price and aircraft maintenance have raised high.
It adopts the latest technologies such as safer flying mode to ease their customers in travelling.
Presence of too many competitors (new entrants) in the market might put the industry in threat as
many of them offer seasonal discounts and offers to their passengers at a low price(Ko, 2019)
(bargain power of buyers).

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It focuses more on domestic routes rather than international ones (qantas.com, 2019). Although
the firm is known to deliver remarkable services, it pays below average figure to its employees.
The recommendations might help the firm to overcome the challenges.
Recommendations
Short term
 Introducing passenger screening technologies
 Offering short term discounts for students and elderly citizen
Action plan
As it is evident from the consumer megatrends identified from Qantas aviation firm, consumers
have totally relied on digital technology and the passengers fall into several categories such as
business, leisure and holiday travellers and they engage into online transition while purchasing
tickets (Shaw, 2016). Therefore a passenger screening technologies will reduce the chances of
risk in carrying any insidious passenger (Teker, Teker&Guner, 2016). This can be performed
with the help of imaging and trace detection technologies that screens a particular suspected area
without harming the privacy of the traveller. This might also save the flight from hijack or any
accidental injury (Cline, 2016).

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Customer segmentation chart reveals that leisure customers make up to 15% of total passengers,
consisting of larger groups (qantas.com, 2019). So in order to please the travelling experience,
Qantas can offer a discount applicable for purchasing a certain number of the ticket. As seems
from demographic segmentation, customers range from the middle class to higher working class
such as Johnson giving nominal discounts, middle class can experience all the facilities creating
brand awareness. Similarly, students such as Maria can make frequent travel from her hostel to
her hometown.
Medium term
 Administration and management
 Lower the frequency of flight cancellation
Action plan
With rising competition, Qantas has set its price towards the higher end that bothers its
customers. Optimizing only the domestic route is another downside of the industry. Hence
efficient management and administration is recommended to look into these actions. According

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to Welc&Esquerdo(2018), the firm should approach the federal government for financial support
rather put pressure on its customers. The federal government spends a handsome amount on
aviation advancements. An efficient research team should be appointed that would pinpoint
every flaw need to be addressed. Management should be able to review the merit of researchers
and implement actions required (Rhoades, 2016).
Considering the inconvenience faced on sudden flight cancellation, Qantas should reduce its
frequency. A flight is only to be cancelled when there is an utmost necessity such as unclear sky
route or gusty storm. In case there is unpredictable cancellation, the organization is required to
arrange for an alternative within the stipulated time (Burger, 2017).

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Long term
 Maintain sufficient investment to purchase biofuels
 Follow governmental guidelines related to employee pay act
 Adaptation to risk management techniques
Action plan
As recorded from SWOT consumer analysis in the previous report it reveals that a rise in the
price of fuels has set the airline fair high (qantas.com, 2019). In such a scenario the airline
industry should opt for biofuels. Qantas should collaborate with biofuel stakeholders including
governmental entities. According to Petitt, (2019), this approach might help them to build
financial structures and raise capital integration in biofuel supply. According to Biofuel policy
theory, using biofuel will also reduce adverse health effects on the customer since it would
reduce exposure to carbon emissions. Hence passengers who are allergic and very sensitive to
any sort of transport particulates can priories Qantas over other airlines.

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Qantas should follow the regulations of employees pay act in order to reduce employee quitting.
Reports have revealed that the package offered to long term existing employees is poor as
compared to the aviation market. Unpredictable relinquishment by the employees makes the
guests unwelcomed when there are not sufficient staffs available to host them (Baker,
Merkert&Kamruzzaman, 2015). Also, there are passengers who are experiencing the travel for
the first time so they require constant guidance of the cabin crews.
As discussed in the previous section, there are passengers who are travelling across the country
for the first time. In order to assist these customers the airline has to prove their efficacy by
expanding its service to frequent international routes. In addition to the airlines, the company
should hire professionals who hold certification in risk management so that customer can rely on
them completely while flying (Teker, Teker&Guner, 2016). Moreover, the airline should install
all the necessary equipment and flying modes such that there zero chance of any catastrophe.

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10
Conclusion
Industry analysis of Qantas Airways states that the airline operates in Australia, New Zealand
and Asia. The industry holds a market share of 60.7% that is worth 17.06 dollar bn and the
annual report says that the organization is likely to increase its revenue by 2.3%. The marketing
strategies undertaken by Qantas are generally public campaigns and events that help them to
reach a customer. The group keeps transforming their strategies and policies so that their
passengers are better positioned in the near future. Although Qantas have taken worthy initiatives
towards sustainable development along with serving customers, it is experiencing potential
threats and challenges. The stated recommendation along with action plan is likely to overcome
its shortcomings in the near future.

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11
Reference list
Baker, D., Merkert, R., &Kamruzzaman, M. (2015). Regional aviation and economic growth:
cointegration and causality analysis in Australia. Journal of Transport Geography, 43,
140-150.
Burger, V. (2017). The influence of fuel properties on threshold combustion in aviation gas
turbine engines (Doctoral dissertation, University of Cape Town).
Cline, H. E. (2016). Hijacking open skies: the line between tough competition and unfair
advantage in the international aviation market. J. Air L. & Com., 81, 529.
Ko, Y. D. (2019). The airfare pricing and seat allocation problem in full-service carriers and
subsidiary low-cost carriers. Journal of Air Transport Management, 75, 92-102.
Petitt, K. K. (2019). Safety Culture, Training, Understanding, Aviation Passion: The Impact on
Manual Flight and Operational Performance.
qantas.com(2019)QANTAS [Accessed on 3 May 2019 From https://www.qantas.com/au/en.html]
Rhoades, D. L. (2016). Who Governs International Aviation?.In Ethical Issues in Aviation (pp.
73-80).Routledge.
Shaw, S. (2016). Aviation marketing and the leisure market. In Aviation and Tourism (pp. 65-
76). Routledge.
Teker, S., Teker, D., &Güner, A. (2016).Financial performance of top 20 airlines. Procedia-
Social and Behavioral Sciences, 235, 603-610.
Welc, J., &Esquerdo, P. J. R. (2018). Real-Life Case Study: Identifying Overvalued and
Undervalued Airlines. In Applied Regression Analysis for Business (pp. 257-
276).Springer, Cham.