TUI Customer Experience: Quality Systems, Relationships & COVID-19

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This report explores TUI Group's customer relationship management strategies, focusing on the impact of internal and external factors, particularly COVID-19, on the organization's quality systems and controls. It applies key marketing and consumer relationship theories, such as CRM and Herzberg's motivation theory, to analyze how TUI can effectively engage customers and maintain strong relationships during crises. The report identifies systems like Total Quality Management (TQM) and Six Sigma that support TUI's quality procedures and enhance customer satisfaction. It further examines the benefits and challenges of developing and maintaining good customer relationships, emphasizing the importance of adapting to changing customer needs and market trends to achieve business objectives.
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UNDERSTANDING AND
ENGAGING
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TABLE OF CONTENTS
TASK...............................................................................................................................................3
Applying key marketing and consumer relationship theories in TUI context.............................3
Identifying systems that help company quality procedures and provide a critical
comprehending of the extent to which those systems are effective in meeting consumers needs
and maintaining good relationship with them in duration of crisis like pandemic......................7
Critically examine benefits and challenges of developing & maintaining good customers'
relationship.................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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TASK
Applying key marketing and consumer relationship theories in TUI context
In the world of business, there are variety of concepts, models and theories are accessible
and utilized in the context of many companies, in order to identify and analyse the crucial factors
that influences controls for target market and quality systems of firms. With the help these
frameworks, it becomes easier to determine each factor such as COVID-19 and other that either
affect positively or negatively upon above business functions.
Here, in regard to TUI group, which falls under the category of leading travel and tourism
organizations in the UK, CRM and Maslow's hierarchy of needs as marketing and customer
relationship management concepts use. In precise manner, these two theories are mention below;
Customer relationship management theory-
CRM is one of those strategic frameworks that provides effective and useful directions to
a company and their management, for purpose of acquiring and retaining potential customers
who may provide a lot of benefits to venture in term of increasing sales and profits margin by
repurchasing their products and services. In recent time, due to corona-virus, people do not
prefer to plan any holiday with their friends and family, as they prefer to stay at home. This form
of their behaviour and decision after pandemic over may put negative impact on TUI, which
operates several business functions such as airline, retail outlets and hotels (Itani and et.al.,
2020). It may negatively influence quality systems of company in term of putting a lot of
pressure on management to maintain their services quality and promote the same in market,
which help to gain the attention of new customers and contribute to influence existing buyers
towards visiting hotels and buying tickets that TUI offer.
Just because of COVID, organization may also face challenges to control the quality of
goods according to customers needs as it may unable to identify what they actually want and
seek to obtain. At this situation, CRM concept may help in varied terms. For example, it may
provide a strategic and effective framework that chose travel company may follow to be
productive and preferable firm for target market. There are few stages define below that support
TUI to overcome the negative impact of factors such as pandemic, market trend, etc. that
influence buying decision of customers and then quality systems of ventures.
Analysis and planning-
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According to chosen CRM concept, it is important for company to fill in any information
and behavioural gaps that its prospect presents, then attempt to find out what value it may bring
to target market (Mardani and et.al., 2020). Management may effort to analyse situation and
determine factors that affect current practices, which enable them to develop effective plan.
Proposition-
After passing above stage in term of develop strategic plan on the basis of situational
analysis, its time when management attempt to identify customers needs, because it helps them
to retain and attract customers, which is quite important for organizational success.
Information and technology-
Along with above activities, it is as important for company to look at the technologies
that it may use to determine how administration adding customers information to consumer
relationship management, which made them capable to analyse gather data and take action
accordingly.
People and company-
After that, TUI may take initiative to gain the attention of new customers, improve
quality of its current systems and retain potential passengers for longer, in term of hiring skilled
and talented candidates who may perform in effective manner and contribute to increase the
organizational productivity.
Process management-
Without assuring that customers service and sales department working well, TUI and its
management is unable to grow, as it is important for them to support target market effectively
and appropriately by providing all the information about new and existing offers (Chatterjee and
Mandal, 2020). They may also assist them by solving their quires, which help to enhance their
satisfaction level and interest as well regarding product and service purchase from TUI.
Customers management activity-
The most important action may organization and its manager as well as leaders may take
is obtaining more details about whom they target for range of products categories and service as
well. For example, they may obtain data about what people in pandemic crisis prefer and how
they take decision by influencing the factors, whether these are internal or external. It enables
them to take appropriate decision and then action which help to retain and acquire new group of
consumers.
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Effect measurement-
Administration as set of varied experience holders such as manager may attempt to
analyse the effectiveness of their teams performance at workplace, as it may also influence
quality systems and controls for target market.
Customers experience-
Firm may take appropriate and effective action to determine and analyse the extent to
which its customers are satisfied from current offerings by it, which is important as it helps to
identify areas where potential changes require.
Herzberg motivation theory-
Just like above concept of customer relationship management, here, another model is
chosen and apply in the context of TUI, which help to define varied forces that may influence
quality system and controls for target audience. The selected model is Herzbery motivation,
which is one of those models that encompasses key elements in term of motivators and hygiene
factors.
Motivators-
Products quality-
Quality of goods and services play vital role in success and growth of TUI, as it put
positive impact on management practices in term of developing and maintaining good
relationship with target customers (Herzberg’s Motivation Theory – Two Factor Theory, 2018).
It also helps to retain buyers with brand for long time and enable them to do not switch to other
company products. Product quality as a key factor influence people positively to be a loyal
consumer.
Key features-
Another force that influence organizational controls for consumers is current one,
according to which firm may control the target market in term of retaining them with products
and services purchase offer by the company. It may gain the benefits of become a local people as
loyal customer, who may help to promote venture globally and effectively, which is quite
beneficial for venture growth. In term of key feature, organization may effort to add some
valuable elements like new flavour according to target market needs.
Packaging-
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When the product packaging and service quality is appropriate, firm may attract new
customers who seek to obtain a good holiday package and stay connected with those travel
companies that provide satisfactory and unforgeable experience to individual guest. As per the
chosen theory, these are those forces that motivate a person and boost their interest level related
to specific service or good purchase exchange of money.
Hygiene factors-
Ineffective communication-
Those factors that affect negatively upon quality systems of TUI and controlling activities
related to customers, identify with the help of chosen theory. According to that, lack of
communication may impact in negative manner upon customer relationship management as it
may lead to decrease working efficiency of employees and unable them to retain potential buyers
for long time. Without effectively interacting with each other and target market, workers may
unable to satisfy people and provide them satisfactory services.
Pandemic-
Another force that affect quality systems and activities related to consumer control is
corona-virus, which may impact in negative manner and decrease operational effectiveness of
brand. Due to this factor, firm may unable to retain and acquire potential individuals who may
provide it benefits recently and in the future as well. It may lead to decrease the capability of
company to retain individual which means it may unable to be productive.
Lack of collaborative-
When the individual employee within TUI may enable to collaborative and coordinate
with each other, it means they affect negatively upon service quality and systems. Moreover, just
because of this factor, organizational products quality and service standard may also suffer,
which is not good for its brand image in market and further growth in travel industry as opposite
to main rivals. It is important for candidates to conduct collaborative practices, when they do not
do that, they may become a reason of organization failure.
Lack of understanding between customers and management-
When the comprehending between target market and service provider is not develop, then
the productivity, quality system and organizational activities may suffer a lot, which means it
may affect in negative manner.
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Identifying systems that help company quality procedures and provide a critical comprehending
of the extent to which those systems are effective in meeting consumers needs and
maintaining good relationship with them in duration of crisis like pandemic
In today's competitive business environment, organizations whether it is small or large
attempt to improve their products and service quality, because this initiative enable them to
maintain the effective relationship with customers and help to meet their specific needs in
effective way. In order to do so, companies just like TUI as chosen firm may focus on using one
of those effective approaches or systems that support their quality processes perfectly and these
are;
TQM-
Total quality management is the most commonly utilize systems in the business world by
the many companies. Here, it may apply in regard to TUI, in order to improve its operational and
functional quality, which allow company to acquire and retain potential customers by meeting
their requirement (Abbas, 2020). When firm may consider this approach, it may drive its
attention towards focus on outputs that management may provide in term of accommodation and
other travel services to customers, because their concentration may enable them to identify the
effectiveness of each item and at extent to what product may satisfy individual customer. With
the help of this action, manager and leader may identify improvement areas related to products
quality and throughout that practice they may provide satisfactory item or service to target
market according to their needs.
It enables brand to maintain excellent relationship with all the passengers who may prefer
to obtain all services provided by TUI. The implementation of Total quality management concept
at workplace within enterprise, may contribute to develop wide customer base (Saffar and
Obeidat, 2020).
Six Sigma-
Just like above one, it also supports TUI service quality system and enable management
to meet the key requirement of target market, which in return help top build strong relation with
them.
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Stage 1-
According to this system, employees may attempt to identify areas where improvement is
important. It is one of those stages that Six Sigma concept encompasses, and driven the attention
of management towards determining and defining poor functioning sections (Tucci and et.al.,
2021).
Stage 2-
They also attempt to collect information about issues or barriers that influence negatively
upon quality services and service standard within TUI. Failure mode as tools effects analysis, so
manager may consider and use that and measure the quality systems' effectiveness. As it given
them clear overview about improvements.
Stage 3-
Management attempt to interrogate gather data about issue as it enable them to take
action against that and enhance operational effectiveness that help to satisfy customers after
obtaining satisfaction from products and services usage.
Stage 4-
Illustration 1: Six Sigma
(Source: Introduction to Six Sigma Quality, 2020)
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They may utilize gather information to innovate something according to customers needs,
which enable management and TUI to build and maintain effective relation with target
passengers and other as well.
Stage 5-
Organization also effort to improve the service standard and product quality after
analysing and considering its customers needs (Sharma, Sachdeva and Kaur, 2020).
Stage 6-
At last, it may take important and beneficial action in term of monitoring the performance
of workers and controlling the operational activities in effective manner, which allow firm to
always stay ahead in competitive environment in industry with strong consumer base who are
now become their loyal buyers.
JIT-
Just in time is inventory and quality management approach, which driven the attention of
companies towards focusing on effective and useful activities. For example, it stated that
employees, raw materials and other resources in a company like TUI may re-filled according to
requirement in the context of customer satisfaction (Peebles and et.al., 2020). It may provide
benefits to organization in term of maintaining customers relationship and enhancing target
market satisfaction, when firm may follow the elements that JIT encompasses.
Creation, refer to process of creating plan that help to identify areas where development
or improvement is needed. Then storing element may drive the attention of management towards
storing those items are provided valuable services to consumers, which they purchase from
trustable suppliers. At last, manager may effort to track of only enough orders from consumers
such as flight booking, room reservation, etc. through which they may conduct activities to
deliver these orders on time via physical outlets or intangible services. Just in time driven the
attention of company towards those things that it may use to gain trust of individual passenger
and retain them forever.
Queuing theory-
This system related to quality management may refer to mathematical study based on
formulation, function and congestion of long queues. It may support TUI's quality procedures in
term of improving its service quality and standard, in term of considering key components. For
example, it drives the attention of management towards considering needs of customers and their
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quires, on the basis of that it may segregate target market accordingly. With the help to this
action, organization within its industry may build strong and most influencing organizational
image, which help to gain the attention of new passengers and give reason to existing to retain
with brand offerings, through that they take pleasure of unexpected vacations.
It made firm able to analyse how consumers receive its services in term of booking, and
room bookings as well as meals. Within workplace management may develop teams of skilled
players who may take reviews from target market about services and products they obtain, via
using digital technologies or paper work. They may also effort to prioritize each customer on the
basis of their approach, which help to remove long list of complaints.
Kaizen-
As effective quality management system, it also supports travel organization to be
productive and profitable by selling quality products to consumers and making changes within
these by considering their needs as it help to build effective relationship with both, firm and its
Illustration 2: Kaizen Approach
(Source: What is Kaizen? An Introduction to Kaizen, 2021)
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target market. It drives the attention and efforts of all candidates towards discovering
improvement potential, analysing current approaches that help to enhance service and customer
satisfaction extent. Furthermore, it encompasses more stapes that TUI follows and gain benefits
for example, generating idea to improve quality, developing implementation plan, implementing
stages that covers under that and finally evaluation phase, where management takes initiative to
measure the outcomes and identify the gap between earlier and current profitability margin. It
can be said that by considering the overall principles of Kaizen as stages, organization may grow
continually and take pleasure of boosting its productivity, efficiency, and profits margin.
Furthermore, along with above advantages, chosen system may provide more in term of reducing
costs for unnecessary products purchase, saving time and minimizing waste, which is really very
important for all candidates to effort to do so, as it saves money.
Effectiveness of systems in the context of customers expectation meeting-
Excluding Queuing theory, all above systems are effective in the context of improving
quality of TUI services, because each approach may provide strategic directions in several terms
that organization may consider. For example, Six Sigma, provides set of elements that firm may
consider and obtain benefit of maintaining effective and influencing relationship with potential
customers, who are able to promote venture after obtaining full satisfaction from its offering via
word of mouth.
Just like that one, Kaizen also covers important and useful components that firm may use
to improve its service quality that help to maintain better connection with target market.
Furthermore, excluding these, organization may also take advance initiatives in term of
collecting feedbacks and reviews from potential passengers who may take its services earlier and
obtain full on satisfaction, which make their holiday's memorable. It allows management to do
not essentially requires costly investments recently and in the future.
Queuing may support at low extent in term of just stating how company remove waiting
quo, nothing more than that.
Critically examine benefits and challenges of developing & maintaining good customers'
relationship
Within industry, where TUI operates, many companies effort to build up their brand
image in market and gain competitive advantages. They also attempt to develop and effectively
maintain trustworthy relationship with customers. Just like these, chosen company may also do
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the same, which in turn may provide it unexpected benefits to its venture in term of increasing
sales profits margin and productivity.
The key advantages of maintaining and developing customer relation-
In time of pandemic, when company attempt to develop relationship with customers on
the basis of trust, it may obtain benefits of increasing sales, which is not so easy for any company
to do so, as it may require transparency between both parties. It can be said that good relation
between them may enable TUI to grow rapidly and successfully and also drive its attention
toward expanding venture with wide satisfactory consumer base, as it help to promote business
worldwide via those people who enjoy their vacation by connecting with brand and obtaining its
services that provide in satisfactory quality and quantity.
By developing better relation with target market, organization may allow each customer
to promote its services standard freely without feeling any pressure (Gil-Gomez and et.al., 2020).
This activity from consumers may consider as word of mouth promotion that contribute to
generate excellent brand awareness from domestic to international level.
Furthermore, by maintaining effective relationship with them TUI may understand the
needs and buying behaviour of individual whom it plans to offer new and existing services in the
future, which means management grab the chance to be sustainable and competitive forever.
Throughout this action, they may obtain competitive advantages in a bulk, without giving
opportunity to other firms in travel industry to do so. The development and maintenance of bond
with target passengers, make organization able to think about future where it may develop
innovative ideas, to offering creative services which also influence in positive manner, just like
existing does or more than these.
Challenges of developing and effectively maintaining relationship with target market -
In order to, develop and well-maintain the relation with passengers TUI may require and
use key resources, which means that the absence of these assets may bring challenges form
company to achieve strategic goal.
Lack of efficiency employees or human resource, is the most common challenge that
firm may face and effort to deal with same (Blue and Baffour-Awuah, 2020). Due to lack of
skilled and talented candidates who may interact with individual buyer, it is impossible for it to
develop a strong bond with people that are interested to purchase its services in term of
accommodation reservation.
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Pandemic, as external factor bring another barrier for company, due to which it may not
be able to grow continually and successfully. COVID-19 affect buying behaviour of individuals,
and because of that firm may unable to maintain a good relationship as customers do not prefer
to go across home town.
Lack of communication as growth barrier may put negative impact on sales and success
of TUI as it may lead to decrease its profitability and productivity, which may provide negative
outcome in term of decreasing number of reservation and booking of flights, accommodation and
other travel service that firm attempt to offer (Shatat and Shatat, 2021). Effective communication
is important because it may provide chance to gain the trust and retain customers with company
forever. Without appropriate interaction, management may do not able to develop and maintain
better relation with those who may capable to contribute to growth and excellent success of
company.
CONCLUSION
On the basis of above discussion, it has been concluded that organization within its sector
has gained the competitive benefits, by following the stages and key element of customer
relationship management and other models. It has builds strong customers base, by gaining the
attention of new target audience who taken reviews from those that already taken pleasure of
company services and obtained excellent satisfaction to that. Furthermore, by summing up above
analysis, it has been summarized that by using quality management systems, firm has improved
its service standard and enhanced successfully the satisfaction of customers. It has given the
tough competitive to major rivals that exist within travel industry, and efforts to be competitive
by using essential and useful resources. Firm has taken the needs and expectations of target
marketing into its consideration that enabled it to offer the services accordingly, which given
reason to individual passenger to retain with its venture and refer other to do so. It has developed
plan to acquire more customers by improving service quality and enhancing operational
effectiveness.
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REFERENCES
Book and Journals
Abbas, J., 2020. Impact of total quality management on corporate sustainability through the
mediating effect of knowledge management. Journal of Cleaner Production. 244.
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Blue, D. and Baffour-Awuah, E., 2020. Systems for Customer Relationship Management and its
Challenges. International Journal. 9(1.2).
Chatterjee, S. and Mandal, P., 2020. Traveler preferences from online reviews: Role of travel
goals, class and culture. Tourism Management. 80. p.104108.
Gil-Gomez, H. and et.al., 2020. Customer relationship management: digital transformation and
sustainable business model innovation. Economic research-Ekonomska istraživanja.
33(1). pp.2733-2750.
Itani, O.S. and et.al., 2020. Social media and customer relationship management technologies:
Influencing buyer-seller information exchanges. Industrial Marketing Management. 90.
pp.264-275.
Mardani, Y. and et.al., 2020. The influence of reputation and Customer Relationship
Management (CRM) towards the competitive advantage of airlines in Indonesia.
In Advances in Business, Management and Entrepreneurship (pp. 196-198).
Peebles, R.C. and et.al., 2020. Nurses' just-in-time training for clinical deterioration:
Development, implementation and evaluation. Nurse education today. 84. p.104265.
Saffar, N. and Obeidat, A., 2020. The effect of total quality management practices on employee
performance: The moderating role of knowledge sharing. Management Science Letters.
10(1). pp.77-90.
Sharma, V., Sachdeva, G. and Kaur, P., 2020. An Empirical Work on HR Practices within the
Aviation Industry of India. In Performance Management (pp. 141-152).
Shatat, A.S. and Shatat, A.S., 2021. Cloud-Based ERP Systems Implementation: Major
Challenges and Critical Success Factors. Journal of Information & Knowledge
Management. p.2150034.
Sobaih, A.E.E. and Hasanein, A.M., 2020. Herzberg’s theory of motivation and job satisfaction:
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in Hospitality & Tourism. 19(3). pp.319-343.
Tucci, H.N.P. and et.al., 2021. Six sigma with the blue economy fundamentals to assess the
economic and environmental performance in the aircraft refueling process. Renewable
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Online
Herzberg’s Motivation Theory – Two Factor Theory. 2018. [Online]. Available Through:
<https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory/>
Introduction to Six Sigma Quality. 2020. [Online]. Available Through:
<https://www.educba.com/six-sigma-quality/>
What Are CRM Models. 2021. [Online]. Available Through:
<https://www.businessnewsdaily.com/16098-crm-models.html>
What is Kaizen? An Introduction to Kaizen. 2021. [Online]. Available Through:
<https://www.theknowledgeacademy.com/blog/what-is-kaizen-an-introduction-to-
kaizen/>
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