Analysis of EasyJet's Operational Efficiency and Customer Satisfaction

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ESSAY
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EXECUTIVE SUMMARY
The travel and tourism industry has been regarded as the second fastest growing sector in the
world. It directly contributes to the economic growth of the economy. The tourism industry
includes everything from accommodations, entertainment, transportation, etc. both the
tourism and aviation industry are correlated with each other. They cannot think of working
without a contribution from each other. Aviation sector helps the economy maintain
sustainability in their operations. Easyjet was launch in London as a low-cost airline. It was
started with two Boeing airplanes by Stelios – haji in April 1995.
It covers both international as well as domestic routes in more than 30 countries. The company
had partnered with various other organizations and also provides membership programs to
their loyal customers. In the present day, they are more focused on gaining market share and
market position. The revenues and sales of the company are increasing day by day
(approximately 14% in 2018). The travelers and passenger also show positive trends in traveling
and grew by 6.8 million again in 2018. The industry follows a dynamic process and is growing
drastically. It will open more and new opportunities for the player and company. The countries
are emerging quickly just to reap the economic benefit of the industry.
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Table of Contents
EXECUTIVE SUMMARY...................................................................................................................2
INTRODUCTION............................................................................................................................. 4
OUTLINE THE PROBLEMS BEING CURRENTLY EXPERIENCED BY EASYJET.......................................6
EXAMINE TO WHAT EXTENT EASYJET HAS THE RIGHT CAPABILITIES AND COMPETENCES TO
IMPROVE THE QUALITY..................................................................................................................8
ASSESS THE IMPACT THAT BENCHMARKING COULD HAVE ON EASYJET IN TERMS OF DELIVERING
CONSISTENT AND EFFECTIVE QUALITY MANAGEMENT...............................................................10
CONCLUSION............................................................................................................................... 13
RECOMMENDATIONS.................................................................................................................. 14
REFERENCES.................................................................................................................................15
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INTRODUCTION
The report will study the importance of total quality management in the aviation industry. The
report will have an in-depth analysis of the current problems faced by EasyJet. Their capabilities
and resources to eliminate the upcoming problems and issues. The report will also contain an
understanding of various quality management tools like benchmarking, their advantages as well
as disadvantages in the context of EasyJet (Albers et al., 2017). additionally, the report will
also include a recommendation regarding the improvement to be made in the service of
Easyjet. The report will revolve around how to manage quality in the hospitality and tourism
industry.
Total quality management
The success of the business is measured with the quality of its goods and services. The total
quality management because of its appropriate model gains a vast prominence over the years.
In order to face the competition managers always strive to maintain high-quality standards. The
main aim of total quality management is to ensure improvement in quality throughout the
management process (Anitha, 2016). The quality product helps the organization to create a
competitive advantage over its competitors. The concept of total quality management was
invented by William Deming. It is never ending process of meeting the needs of customers by
investing continuously in matching the standards.
Quality in tourism
The quality of products in the tourism sector can be measured in terms of durability, reliability,
and affordability (Barbieri and Álvares, 2016). In general, quality can be defined as providing
excellent service as per the customers' expectations. Proper management of quality in the
aviation sector is very important as it increases the satisfaction of customers and passengers. a
base of loyal customers will be created only if they are fully satisfied with the type of service
company offers. Quality has a direct connection with the two main dimensions which are
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improvement and development. it ensures higher productivity and increased return for the
organization (Golasowski et al., 2017). Quality management makes organization a better
workplace both for its employees along with customers. One of the main challenges faced by
the aviation industry today is attracting customers with differentiated and innovative services.
Quality in tourism helps in generating trust among the team members and also promotes
teamwork. The superiority and Excellency in service of tourism can be termed as quality.
Quality assurance plays a very important role in retaining customers for a longer period of time
(Albers et al., 2017). It makes them more happy and satisfied. TQM starts with analyzing the
needs expectations and demands of people through customer perspectives. Quality
management also focuses on delivering products as per the promises with the help of
marketing and promotions. Managing expected quality is the prime motive for all the aviation
companies in tourism services. Quality is the key element of achieving the objectives and goals
of being number one (Wirtz and Jerger, 2016).
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OUTLINE THE PROBLEMS BEING CURRENTLY EXPERIENCED BY EASYJET
Easyjet was doing very well and it was established within a growth period. While growing more
business always faces a number of challenges in order to maintain sustainability. In the current
competitive global market, the company always faces competition from its rivals firms (Brough
and Biggs, 2016). It maybe is in terms of service delivery or other facilities. The various
proble4ms which EasyJet is currently facing are listed below:
Operational and commercial problems
Both low-cost airlines and flag carriers are giving tough competition to EasyJet. Because
of the highly competitive market in tourism and aviation sector the company is losing its
market share (Curley and Salmelin, 2018). Operational and commercial risk can
negatively affect the performance of EasyJet in present conditions.
Environmental problems
The environment is unpredictable and changes as per the climatic conditions. The
company must be ready to face any unpredictable challenge. Natural disaster, floods are
some of the problems which could destroy the business. Poor weather conditions can
adversely impact the company in large (Albers et al., 2017).
lowered customer trust
Establishing trust among customers is very important for all the business. EasyJet is not
able to fulfill the demand of customers in terms of service quality and products. They
have been regarded as poor airlines when it comes to service. Trust is very vital for a
business to succeed.
un-professionalism
Maintaining professionalism is very important for all the industry (Barbieri and Álvares,
2016) they must deliver services as per the required standard. The staff and crew
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members of the airline are not helpful and supporting. They are very rude in their
behavior. This is one the biggest problem which easy jet is currently facing
Despite all these main issues Easyjet is facing some other problems as well:
Demand and share of EasyJet are going down which is impacting negatively in the fairs
of the company (Bogetoft and Lopes, 2016). brexit is the main concern for the company
which is impacting the overall business negatively.
Shareholder invests their money in the airline as the comsap0ny is in full control of
managers and shareholders (DIACONU and MAXIM, 2015). As the risk is increasing day
by day which leads to decreased market share shareholders are not ready to invest
more.
Increase in financial and monetary risk through the rising in the price of fuel
consumption. the company has spent a large amount of money in order to provi8de
consistent results.
Easyjet may also face problems related to business and product risk. it will bring more
issues in upcoming days as well (Dias et al., 2017).
The management of the easy jet must formulate various strategies and tools to eliminate
upcoming risks. The company should also try to implement the methods for solving the
existing risk. The company should try to focus on providing customized services to their
clients in order to make them happy again (Farrington et al., 2018).
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EXAMINE TO WHAT EXTENT EASYJET HAS THE RIGHT CAPABILITIES
AND COMPETENCES TO IMPROVE THE QUALITY
Easyjet undergoes various capabilities and resources which help them stand different from
other airlines and competitors (Ighravwe and Oke, 2017). The number of capabilities easy jet
possess are listed below
The flights of EasyJet always maintain punctuality and respect the value of time.
increase in demands because of the low price and cost
Differentiated and excellent baggage service.
effective marketing and sales team
continues innovation and invention in the process
Open minded approach and focused largely on maintaining sustainability for the long
term.
strong brand awareness across the country
Safety and security provision is well designed
The company aims to attract more people by customizing their services and brands. They focus
on implementing new and appropriate marketing and operational strategies for the same. They
maintained a strong base of financial resources which can help them in achieving their overall
objectives (Albers et al., 2017).
They have a highly developed structure of organization thereby providing high returns to
shareholders and investors. They are making use of different innovative and creative tools for
improving their performance. The tools are flight tracking devices that help saving time, auto
bag drop which makes the facility of baggage accurate and digital innovation for the adoption
of more advanced technology (Lăzăroiu, 2015).
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The company, on one hand, receives bad reviews regarding their customer service but on the
other side, they still fall in the growth phase. They are able to create a cost advantage by
providing services and tickets at cheap and affordable rates. Easyjet hires human resource and
workforce in large number to serve customers well (Minh, 2015 ). They are represented as the
face of the organization. Easyjet uses various data-driven tolls in order to eliminate upcoming
errors. Their model based on sustainability is helping them throughout their management and
business operations.
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ASSESS THE IMPACT THAT BENCHMARKING COULD HAVE ON EASYJET IN
TERMS OF DELIVERING CONSISTENT AND EFFECTIVE QUALITY
MANAGEMENT.
Benchmarking
Benchmarking was introduced by Xerox Corporation in the year 1990. It is the process of
measuring and comparing business performance in terms of quality. It is used as a tool for
enhancing and improving the competitiveness of the organization. It does a comparison on the
basis of customer service, cost, time, service quality, etc (Scheffler, 2018). it finds out the gaps
between actual performance and desired outcome or results. it helps the organization in
improving and managing quality to beat the competition.
Advantages:
Developing improvements
It helps the company in assessing their position in the industry. Benchmarking helps in
providing guidance while improving and developing their products and service as per
the industry standards (Ighravwe and Oke, 2017). It allows companies to find out the
area where they are lacking behind. it also aims at improving performance and
standards in an organization. It is very important for company success and long term
growth.
Promotes creativity
Benchmarking helps the business in meeting goals creatively and accurately. It promotes
creativity in solving problems and making improvements in the same. it also makes the
business stay current according to the competition (Albers et al., 2017).
Improves the quality of work
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It helps the business in identifying its strengths and weakness during its operations. it
also undergoes a basis of comparison through which the company can analyze the areas
for further improvements (Albers et al., 2017).
Disadvantages
No measurement of the effectiveness
One of the main disadvantages of benchmarking is that it does not measure how
effective is the performance (Wirtz and Jerger, 2016). It does not give a solution for how
to attain the standards. it remains ineffective while measuring the overall metrics and
process.
often regarded as a solo activity
On the one hand, benchmarking is a very important part of the business. But on the
contrary, it is only a small part of the process which helps the business to reach out to
end goal. It will not give a business creative solution rather it will only analyze from
where to start (García et al., 2017).
Adoption of the wrong method of benchmarking
Different type of benchmarking is suitable in a different situation depending upon the
product and process. The various types of benchmarking include, functional, generic,
competitive and internal benchmarking (Warith, 2019). The selection of incorrect
methods of benchmarking can make the business suffer from a huge loss.
So benchmarking has both pros and cons in dealing with business. Benchmarking compare the
standards needs but does not take into account the consideration. The danger and difficulty of
complacency is the biggest disadvantage of benchmarking. Though it has both benefits and
limitation the advantages of benchmarking overshadows its limitation (Mansouri et al., 2018).
Many of the organization take benchmarking as a tool for continuous improvements like six
sigma and TQM
Comparison of EasyJet and jet2 in terms of service quality :
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Basis of comparison EasyJet Jet2
Baggage facilities The EasyJet as compare to jet2
does not provide appropriate
baggage service as they charge
an extra premium
They are known for their
excellent baggage service. they
also have a separate cabin for
luggage
Workforce Easyjet has nonprofessional
staff which ultimately makes
the customer dissatisfied.
The staff and other employees
of jet2 are very supportive and
also treats their customers
well.
Boarding procedures Difficult and complex boarding
procedure
Simple methods of boarding
Connectivity Strong network with
affordable price
Weak network as comapre4d
to EasyJet.
Customer service Poor and dissatisfied service
for customers
Superior customer service
Table 1
(Source: Minh, 2015).
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