Research Report: Customer Satisfaction and Ryanair's Role

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This report presents a comprehensive analysis of customer satisfaction within the context of Ryanair, a prominent low-cost airline. The study delves into the importance of customer satisfaction in the airline industry, exploring factors that influence passenger experience, such as pricing, service quality, and operational efficiency. It examines Ryanair's strategies for enhancing customer satisfaction, including cost-saving measures and service improvements. The research employs a qualitative approach, utilizing questionnaires and secondary sources to gather and analyze data. The report includes an introduction providing an overview of the study, a literature review establishing a theoretical framework, a methodology section detailing research methods, and a data analysis section evaluating the collected information. The conclusion and discussion summarize the findings, offering insights into Ryanair's performance and suggestions for further enhancements. The report aims to identify how low cost airline companies enhance customer satisfaction.
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Research Project
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Abstract
The present study aim to identifying the role of low cost airline company in enhancing
the customer satisfaction with Ryanair This is a wide area of academic research which is
effective in exploring the idea and knowledge base of learner and researcher in regards to the
chosen subject area. In the airline sector, organisations are very much concern over developing
strategies in relation to providing low cost facilities to their customers as it is effective for the
businesses to attaining higher growth and success at market place via retaining customers for
long run. In this aim and objectives are developed to assist the overall work in right manner and
in the section of introduction an overview regarding the chosen subject area is being provided,
Furthermore, background and rationale has also been developed to provide the reason behind
conducting the investigation. In this literature review is effective in developing the understanding
of the learner and researcher through conducting a detailed analysis via the support of opinion
and views analysis of authors and writers. In the third chapter, proper description regarding the
methodologies are provided to develop the knowledge regarding the systematic execution of
investigation activities in right manner. Thus this study is based on qualitative aspects as in this
exploration is based on human observation. In addition to this, In this chapter a proper
description regarding the sources of information collection are mentioned as in this present
exploration investigation is mainly conducted through questionnaire as in it is appropriate to
conduct primary research. On the other side secondary sources like books, journals, published
research articles etc. are applied to conduct literature review. At the end, proper conclusion and
discussion has been made over the findings of the research as it is effective in summarizing the
work in appropriate manner.
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Table of Contents
Abstract ...........................................................................................................................................2
TITLE .............................................................................................................................................1
Introduction .....................................................................................................................................1
Literature Review ............................................................................................................................6
Research Methodology .................................................................................................................15
Research Setting...................................................................................................................15
Participants ..........................................................................................................................16
Materials...............................................................................................................................17
Procedures............................................................................................................................18
Data Analysis ................................................................................................................................20
Discussion and Conclusion ...........................................................................................................35
Reflection.......................................................................................................................................36
References .....................................................................................................................................37
Appendix .......................................................................................................................................40
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TITLE
To analyses the customer satisfaction in Low cost Airline Company: “RYANAIR”
Introduction
Overview of the study
Customer satisfaction introduces as as effective measurement tool which is used by
company to quantify degree to which a customer is more satisfied with a service or products.
High level of satisfaction among customers is important for each organisation. As it support
business by improving its brand image and goodwill in marketplace. Quality service in airline
industry plays an important role in enhancement of customer satisfaction (Chiu, Liu and Tu,
2016). Thus, offering better or excellent service quality leads to higher satisfaction among
customer which outputs in maximising customers number and increase the profitability ratio of
company. Customer satisfaction within airline industry is depends on different factors which are
reservation and ticketing, in-flights services, language handling and check in process. For this
report dissertation, Ryanair is a chosen Irish budget airline industry. It was founded by David
Bonderman, Michael O'Leary, Peter Bellew in 1984 and headquartered in Dublin Airport,
Ireland. The U.S. passenger airline business is a major sector within tourism which significantly
composed of legacy, regional and low cost airlines. Legacy airline is based on larger operations
with number of employees and numerous aircraft's of different sort of flights to domestic
communities of all sizes and to international destinations. Low cost airline is mainly entered in
the market after the U.S. airline sector was deregulated in the year of 1978 and typically have
less extensive network and lower operating cost. This project contains the study about
identifying the role of low cost airline company in enhancing the customer satisfaction. This is
wide area of academic research which is supported by predetermined aim and objectives, that are
based on the investigation area (Noe and et. al., 2017). Therefore, in this literature review is also
created which is effective in providing an effective theoretical framework that supports in
enhancing the understanding of the learner and researcher related with the chosen subject area.
Research methodology is also efficacious in assisting the work in right manner to reaching at
potential outcome. In addition to this, data analysis is effective in conducting proper evaluation
over the collected information to reaching at the appropriate outcome. At the end of the
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investigation discussion and conclusion has been developed over the findings of the research,
therefore, this section is effective in summarizing the work in effective manner.
Background of the study
The airline industry has always been popular for its constant challenges including
managing fluctuating demand, cutting costs, keeping tight quality needs while trying to keep
superior services as well as satisfy the requirements of different groups of customer (Low-Cost
Airlines Management Model And Customer Satisfaction, 2014). Satisfaction among customers
has been at very low levels for decades as per the American Customer Satisfaction Index, the
airline sector scores has been the lowest out of 47 other sectors. In this troubling environment,
airlines are highly forced to shift their emphasis towards customer service. There are different
factors that impacts customer satisfaction in low cost airline such as price, timing and so on.
Ryanair DAC is a popular Irish budget airline company, which is founded in the year of 1984.
The key people of the firm are David Bonderman who is the executive chairman of the firm,
Michael O'Leary is the CEO of the firm and Peter Bellew is COO of the firm. The headquarter of
the firm is in Dublin Airport, Ireland (Kim and Lee, 2011). The subsidiaries of the firm are
Lauda, Ryanair Sun, Ryanair UK and Malta Air. The company has covered around 225
destinations, therefore the net income of the firm is around €1.145 billion. The company has
around 17,500 employees who are putting their significant efforts in the growth and success of
business. The company is famous for its effective facilities, therefore, the company is ensuring
their customers regarding the arriving time, effective flight schedule, safety of path way. In
addition to this, company is mainly targeting to the people from middle and high class therefore
they are mainly considering airlines for fulfilling their needs. People from middle class group are
mainly seeking for booking low cost flights as to saving cost and satisfying their needs and
wants. Management of Ryanair concentrates to saving costs in customer service costs, aircraft
equipment costs and airport access and handling costs. Ryanair invest more in customer service
costs when applying third party contractors at some airports (David Mc A, B., 2013). This means
that the other airline company is liable for aircraft ticketing, handling and other services.
Company is convinced that it acts more cost efficiently when using third party services.
Statement of Problem
One of the main issue of this investigation is low cost airline company not much more
able to provide better services to the customers. As it has negative impact on its entire
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performance and growth in marketplace. Today's customers are more willing to get quality and
excellent services at affordable price. In order to overcome this issue, company try to conduct an
investigation and identify needs and wants of customers about their services (Jiang and Zhang,
2016). They also take an effective action to reduce their cost and provide additional services to
the customers. As it will support an enterprise in increment of its sales and market ratio.
Research Aim:
Main aim of this dissertation is to identify the role of low cost airline company in
enhancing the customer satisfaction. A study on RYANAIR"
Research Objectives:
The main objectives of the study is to identify the role of low cost airline company in
enhancing the customer satisfaction. In order to accommodation this objective there are some
sub-objectives which are mentioned below:
To identify the importance of customer satisfaction within airline company.
To determine the role of Ryanair in enhnacing the customer satisfaction. To analyse the ways by which Ryanair can enhnace satisfaction among customers.
Research Questions:
What are the importance of customer satisfaction within airline company.
What are the role of Ryanair in enhnacing the customer satisfaction. What are the ways by which Ryanair can enhnace satisfaction among customers.
Rationale and importance of research
Main rationale behind doing this investigation is to identify contribution of low cost
airline company in increasing satisfaction level among customers. Along with this, by doing this
investigation Ryanair can easily identify importance of higher customer satisfaction in business
growth and development. Another reason for conducting this investigation is to overcome impact
of low cost airline company over customer's satisfaction (Koklic, Kukar-Kinney and Vegelj,
2017). This research is important in educational as well as personal level. In personal level, this
investigation support in increasing research skills such as literature review, data collection, time
management and data analysis in researcher. Under educational level, by reading this
dissertation, student become able to improve their understanding about the significance of
customer satisfaction within airline industry.
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Route Map of the study
Route map of the study is consider to be most essential part of investigation because it
support readers in giving an overview about the structure of research which is to be conducted. It
will be useful for researcher because it support them to analysis overview of dissertation which
will further assist in completion of research activities in systematic manner.
Chapter 1 : Introduction
This introduces as a first chapter or activity of dissertation which is mainly show a
background of company and an overview to the current topic (Rajaguru, 2016). This chapter also
gives an in-depth information about the problem statement. This activity will also includes
different number of sub activities which are research aim, research objectives, research
questions, rationale of study and many other information relevant to the topic.
Chapter 2 : Literature Review
This is a second chapter or task of research which basically emphasis over collecting in-
depth or detailed information from different number of secondary sources which are books,
journals, magazines, publication research and many other relevant articles related to the current
investigation (Leong, Hew, Lee and Ooi, 2015). Main purpose of this chapter is to generate
accurate about regarding the current area of investigation and determining its nature so that
further study such as primary can be performed by developing a base to study.
Chapter 3 : Research Methodology
This is consider one of the main and useful part of study which helps reader by providing
proper information regarding the research methods. In this section of investigation, different
number of research methods will be included which are qualitative and quantitative research,
research approach, research philosophy, research strategy (e.g. questionnaire, case study,
interview, observation etc.), primary and secondary methods of data collection and so on. These
are useful methods which helps researcher to collect accurate data about the current study.
Chapter 4 : Data Analysis and discussion
This is another part of research which includes different number of evaluation techniques
such as quantitative and qualitative. These techniques are essential but according to the current
study, content analysis as an effective part of quantitative analysis will be applied. This is an
useful method of data analysis because it support researcher to interpret the data in systematic
manner.
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Chapter 5: Conclusion and Discussion
It is another section of dissertation which assist readers by providing accurate information
about the topic provided by selected respondents. This part includes entire summary of project
which will be beneficial for researcher towards accomplishment of research aim and objectives
easily. In addition to this this section also help in identifying that whether the investigator be
capable to accomplish the research objectives. This is consider last part of the study which is
basically based on some discussion. In this, some results will be provided to the company about
how to overcome current issues and how to accomplish better results easily (Rajaguru, 2016).
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Literature Review
Importance of customer satisfaction within airline company.
According to the Sophia Bernazzani, 2019, customer satisfaction introduces to the metric
that is used to quantify the degree to which a client or consumer is happy with a service,
experience or product. It defined as the feeling that an individual experience when an offering
meets their expectations. Customer satisfaction is more essential because it gives business
owners and markets with a metric that they can apply to manage and enhance their businesses. In
addition to this, customer satisfaction is a measure of how services and products supplied by an
organisation surpass or meet expectations of customers.
According to the Eugene Sefanov, 2018, customer satisfaction within airline industry is
always top of mind. Disengaged or unhappy customers naturally mean less revenue and fewer
passengers. It is more essential and significant that customers have an excellent or good
experience each and every time they travel. Along with this, higher satisfaction among customers
will be more important for airline industry by increasing their sales and market image. On-time
flight, excellent in-flight entertainment, more legroom and more snacks might be the clear
contributors to an effective experience as well as more loyalty (Namukasa, 2013). Airline
customer service is giving better support to the customer before, during, and after a flight. The
complexities and also difficulties of air travel can make assistance a main issues, but enhancing it
can lead to more happier or satisfied customers, improved service ratings and better travel
experiences. Satisfied customers or travellers are more likely to stay with airline industry a
longer time duration, which can essential maximise profitability and sales revenue over time.
Along with this, increased customer loyalty further support airline industry in reducing
marketing cost, minimising service cost, improving brand image etc. These are major benefits
which will be gained by airline industry if they have satisfied customers. Honest and quick
feedback, stand tall among competitors, forecast accuracy, cross/up selling possibilities, repeat
business, customer acquisition and retention are also consider main importance of customer
loyalty which is only possible by having satisfied customers.
Improved customer service helps an organisation to increase satisfaction among
customers. It would develop positive or favourable attitudes among entire workers. Front and
crew office worker of company require to have favourable attitudes so as to develop sustainable
and long lasting relationship with the clients (Akamavi and et. al., 2015). Along with this,
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improved customer services is a main part of customer satisfaction which is more beneficial for
Airline industry by increasing its sales and revenue. Customer satisfaction vital and essential for
success of any organisation.
Customer Satisfaction:
Customer satisfaction is recognised as a measurement which determines how a customer
found happiness with a companies products, services and capabilities. In addition to this,
customer satisfaction data involves survey and rating that can help a business to analyse how to
best improve or change its products and services. In the context of airline industry, customer is
the key asset of the business as the growth and success of the business is based on the
satisfaction of the customers, therefore, customer satisfaction is defined as consumers response
to the evaluation of the perceived discrepancy among prior expectation and the actual
performance of the products as perceived after its consumption.
The airline industry is mainly composed of legacy and low cost airline, therefore, legacy
airline generally operates through its hundred aircraft's with the support of complex hub and
spoke operations with around thousand of employees. In the operations are held in domestic and
international level. On the other side low cost airline refers as an airline which is operated
through an especially high intensity on reducing operating cost and without some of the
traditional services and amenities rendered in the fare. In addition to this a low cost airline or
carrier are known as no-frills, discount and budget carrier, which is mainly operating its
operations via the support of one type of aircraft with up to 200 seats which are mainly offering
low fare in the exchange for eliminating many traditional passenger services. There is a
difference between low cost carriers and legacy carrier airline, which is defined as underneath:
Characteristic Low cost carriers Legacy carriers
Brand
Price
Target group
Customers
One brand: low price
Simple pricing structure
Leisure, price and time sensitive
travellers
The expectation of customers are less
Extended brand: price/service
Complex pricing structure
Business and leisure travellers
The expectation of customers are
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Expectation
Ancillary fees
Customer service
Distribution
Checking in
Network
Classes
During flight
Aircraft usage
Aircraft type
Turnaround times
Airport
Operational
activities
Services
as in this other facilities like meals,
accommodation, food, safari
excursions, and other small luxuries
are not included and customers are
also not expecting such facilities in
low cost airline facilities.
Expect to pay for ‘extras’ like
luggage, meals, seat selection.
Generally underperforms
Internet, direct booking
Kiosk, e-tickets
Point-to-point
One class
No frills
Very intensive
One type
30 minutes or less
Secondary
Focus on core – flying
No frequent flyer program or
high as they are paying for high
class facilities in which
accommodation, food, safari
excursions, and other small luxuries
are included.
No need to pay any extra payments.
Full service, offers reliability
Internet, direct, travel agent
Kiosk, Paper tickets, e-tickets
Hub-and-spoke
Multiple classes
Frills (free food & beverages)
Average – intensive
Multiple types
Slow: congestion/complexity
Primary
Flying, cargo
Frequent flyer program and
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