Documente Academic
Documente Profesional
Documente Cultură
MANAGEMENT STUDIES
INTERNAL ASSESSMENT
Guided by Prof. Kazi
Semester V
Service Sector Management
TYBMS/A
Submitted By:
Roll No.
Names
02
Mustafa Rangwala
03
Mustafa Attar
22
Mustafa Ranapurwala
28
Murtaza Udaipurwala
30
Mufaddal Khamgaonwala
32
Murtaza Rupawala
GDP:
Gross domestic product (GDP) is the market value of all officially
recognized final goods and services produced within a country in a
year, or over a given period of time. GDP per capita is often used as an
indicator of a countrys material standard of living. GDP per capita is
not a measure of personal income. Under economic theory, GDP per
capita exactly equals gross domestic income (GDI) per capita.
However, due to differences in measurement, there is usually a
statistical discrepancy between the two figures.
INR 147 billion directly contributed through the output of the aviation
sector (airlines, airports and
Ground services, aerospace);
INR 107 billion indirectly contributed through the aviation sectors
supply chain; and
INR 77 billion contributed through the spending by the employees of
the aviation sector and its
Supply chain.
In addition there are INR 582 billion in catalytic benefits through
tourism, which raises the overall
Money supply:
In economics, the money supply or money stock, is the total amount
of monetary assets available in an economy at a specific time. There
are several ways to define "money," but standard measures usually
include currency in circulation and demand deposits. It is easy to
confuse the amount of spending money in the economy with the
amount of money in the economy.
Inflation :
The annualized inflation rate in India is 8.9% as of June 2012, as per
the Indian Ministry of Statistics and Programme Implementation. This
represents a modest reduction from the previous annual figure of 9.6%
for June 2011. Inflation rates in India are usually quoted as changes in
the Wholesale Price Index, for all commodities.
(10.8%); Machinery and Machine Tools (8.9%); Textiles (7.3%) and
Transport, Equipment and Parts (5.2%).
How inflation affects the common man?
If you are having to increasingly pay more for your groceries at your
neighbourhood Kirana store or a swanky department store, chances are
that you have been hit by inflation.
Purchasing power of the rupee falls -- a Rs.50 note, which you could
use to buy a kilogram of rice, will now fetch only half a kilogram.
2) Commodity wholesaler dealers, such as rice dealers at mandis, may
try and hoard essential commodities like food grains on hopes of
reaping profits when prices increase further on dwindling supplies.
3) Fixed income groups will be hit the hardest because their salaries
will not be revised to include the cost of living even as prices of items
soar.
4) Household as well as national savings drop because there is less
money to save now as people use a greater part of their disposable
income to pay for daily-use commodities.
Exchange rate :
Price for which currency of country can be exchanged for
another
country's
currency
is
called
exchange
rate. Factors that influence exchange rate include (1) interest rates,
(2) inflation rate, (3) trade balance, (4) political stability, (5) internal
harmony,
(6)
high
degree
of
transparency
in
(8)
quality
of
governance.
History
Indian Aviation Industry is one of the fastest growing airline industries
in the world. The history of Indian Aviation Industry started in
December 1912 with its first domestic air route between Karachi and
Delhi. It was opened by the Indian Air Services in collaboration with
the UK based Imperial Airways as an extension of London-Karachi
flight of the Imperial Airways. Tata Sons Ltd., the first Indian airline,
started a regular airmail service between Karachi and Madras three
years later without any backing from the Indian government.
During 19991-1992, Modiluft, East West and Damania went bankrupt.
Air Sahara and Jet Airways survived along with government own
Indian Airlines because they had the capability to bear losses.
Globalization and privatization had a major impact on aviation
industry. Indian aviation industry was deregulated by the government
in 1990s.By the year 2000 several private airlines have entered into the
aviation business in succession and many more were about to enter into
the arena. Indian aviation industry today is dominated by private
airlines and low-cost carriers like Deccan Airlines, GoAir, and
SpiceJet, etc. And Indian Airlines, the giant of Indian air travel
industry, gradually lost its market share to these private airlines.
Brief Introduction
Indian Aviation Industry has been one of the fastest-growing aviation
industries in the world with private airlines accounting for more than
75 % of the sector of the domestic aviation market. With a compound
annual growth rate (CAGR) of 18 % and 454 airports and airstrips in
place in the country, of which 16 are designated as international
airports, it has been stated that the aviation sector will witness revival
by 2011.
Today Hyderabad International Airport has been ranked amongst the
world's top five in the annual Airport Service Quality (ASQ) passenger
survey along with airports at Seoul, Singapore, Hong Kong and
Beijing. This airport in Hyderabad is managed by a public-private joint
venture consisting of the GMR Group, Malaysia Airports Holdings
Berhad and both the State Government of Andhra Pradesh and the
Airports Authority of India (AAI).
The Indian aviation sector can be broadly divided into the following
main categories:
Scheduled air transport service includes domestic and international
airlines.
Non-scheduled air transport service consists of charter operators and
air taxi operators.
Air cargo service, which includes air transportation of cargo and mail.
Employment opportunities
Today India Aviation Industry requires approximately 7,500-8,000
pilots and an equal number or more air cabin crew by 2010. Heavy pay
packages are awaiting pilots with a commercial pilot license (CPL). An
amateur pilot can start his career with a salary of Rs 2.5-3 lakh a month
with a commercial airline. With the sudden increase in the number of
airlines, pilots are in great demand.
Latest developments
Modernization of Airports
Airports Authority of India (AAI) manages the development and
modernization of all 35 non-metro airports in the country
simultaneously and work is due to be completed by the year end of
2010. Wholly owned subsidiaries of AAI are being created for
betterment of these airports. According to the AAI there are work
orders for terminal buildings at 13 airports, and for airside
development, including runway, taxiway, apron, fire station, control
tower and isolation bay, at 19 airports.
are 14 which include new players like Jagson, Air Deccan, Spice Jet,
Go Air, Magic Air etc
Social Environment
In India, before 1990s, traveling by air was considered expensive and
luxury mode of transportation. After deregulation in aviation industry
several new airlines come up and there was a drastic reduction in fares
which was a spur for Indians to opt for air travel. Indias first low cost
carrier Air Deccan began with Rs 500 per ticket offer. It was neck to
neck competition with Indian railways. Soon Spicejet gave a counter
offer of Rs 99 per ticket. Since then prices for airline ticket kept on
reducing as a promotion strategy. People traveling on trains by first or
second class AC, till now, shifted their attention to airlines. It improved
their lifestyle.
Technological Environment
Airports Authority of India in collaboration with Indian Space
Research Organization (ISRO) is developing a new satellite-based
navigation called Gagan. The project is likely to be operational by
2008. Only three countries including the United States has similar
Satellite-based system. It is one of the latest technology in the world.
It will enhance safety of flights.
Overview of the company
Airways (BEA). Air India took over international routes and Indian
Airlines Corporation (IAC) took over the domestic and regional routes.
Eight pre-Independence domestic airlines, Deccan Airways, Airways
India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian
National Airways and Air Services of India and the Domestic wing of
Air India, were merged to form the new domestic national carrier
Indian Airlines Corporation. International operations of Air India Ltd.
was taken over by the newly formed Air India International. Indian
Airlines Corporation inherited a fleet of 99 aircraft including 74
Douglas DC-3 Dakotas, 12 Vickers Vikings, 3 Douglas DC-4s and
various smaller types from the seven airlines that made it up.
Operating Revenues
Operating Profit(Loss)
2002
41,015
-1347
2003
46,498
-1251
process and the global economy slumped. With the fall of the BJP-led
NDA government in 2004, these attempts were shelved. In 2000, Air
India introduced services to Shanghai and to its third U.S. gateway at
Newark Liberty International Airport in Newark, New Jersey. In May
2004, Air India launched a wholly owned low cost airline called AirIndia Express. Air India Express connecting cities in India with the
Middle East, Southeast Asia, and the Indian subcontinent. In 2004 Air
India launched flights to its fourth US gateway at Los Angeles
International Airport in Los Angeles (which has since been terminated)
and expanded its international routes to include flights from
Ahmedabad, Amritsar, Bangalore, and Hyderabad. On 1 December
2009, Air India introduced services to its fifth U.S. gateway at
Washington Dulles International Airport in Washington, D.C.,
accessed via a stopover at JFK Airport in New York City.
Until 2007, Air India and Indian Airlines operated as two completely
different airlines, though completely owned by the government of
India. Air India mainly operated on International long-haul routes while
Holiday Travellers
Such travellers travels in holiday seasons like Eid, Diwali, Christmas,
Summer Vacations. Air India focus on such customers only in a
specific time of the year. They attract such customers via Discounts,
Offers & Schemes.
Pilgrimage Travellers
These travellers are belonging to different communities of the world
who travel to the holy places recognize by their religion. Such travellers
go national and international and travellers keeps on changing because
such pilgrimage trips are a compulsion once in lifetime. Here Air India
launches tour packages for travellers who wish to go for pilgrims.
Emergence Travelers
These are travellers who due to some urgent work or due to any
uncertainty needs to reach a specific place as soon and as fast as
possible. For such kind of travellers a number of seats are kept reserved
by Air India in every flight. Such travellers are not common and dont
keep on coming back every time there are new travellers. The number
of people are less and hence the reserved seats kept are very low for
this market segment.
India a normal ticket and services and discounts are usually not offered
directly.
Goods Transportation (Export Via Air)
Not only humans but also air lines pick and drop goods from one
destination to other at national and international level. Such transport
are attracted by Air India with special schemes and logistics portals.
B. Targeting By Air India
Tourism Agencies
Air India has a type with such agencies in order to sell their services.
They offer special discounts, bonus points and extra benefits to
agencies for selling their services via tourism agencies all over India
and abroad. These agencies are a major target in order to capture vast
customer segments
Online Ticket Sellers
These are sellers who specialize in selling tickets online via internet.
They dont only extend their services to ultimate customers but online
selling widen their limitations of selling to sell to small ticket booking
agents.
are also targeted by Air India in order to access sales. Air India does
this by providing such agents a high commission rates on sales of each
ticket and also some extra points which are redeemable.
Google Ad words
The very famous concept and used for online advertising and
promotion of goods and services. It also redirects to a specified link on
click as well as people not clicking can at least see the ads. Air India
has done positioning via Google Ad words and this has brought to their
website a huge traffic.
Ads Included In Tourism Packages
They include their ads in packages and catalog of tourism agencies by
influencing them by giving them higher commissions and incentives.
Such ads drags notice of customers and tune their mind to use travel
service of Air India which again maximize their sales.
Via Newspapers & Subscriptions
They give ads in newspapers in order to aware customers about their
services and ongoing offers and schemes. This is a good way of
positioning Air India in market as newspaper is read by all classes of
society.
Other Sources
They also promote selling of tickets and services given by them via
ticket bookings agents, magazines and different ad portals. They also
keep on switching to new positioning sources regularly to drive a mass
turnover.
Information Technology
1. Online booking
Online booking is a convenient way of booking your travel over the
internet
Benefits of Online Booking: Book a flight and pay online for your travel.
Request for a, special meal or service.
Redeem your frequent flyer miles online.
Check Flight status.
View the Schedule/timetable.
Also while booking online AI offers special fares for self, as well as
companion fares.
2. Web Check In:This is a facility through which passengers having confirmed booking
in an AI operated flights could check-in for the flight through AI web
site. Currently web check in is not available for travel from Bahrain,
Dhaka, Dubai, Muscat, Melbourne, Milan, Rome and Sydney.
Benefits of Web Check In:-
Seat of my choice
Saves time & Also Airport can be reached a little later, than
expected boarding timings
3. Mobile Check In:This is a facility through which passengers having confirmed booking
in Air India flights could check-in for the flight through their Mobile
phone by accessing URL http://flyai.mobi
Benefits Of Mobile Check In:
Convenience of Passengers
Simply having a web enabled Mobile Phone to avail this facility
Marketing Mix
The marketing mix refers to the set of actions, or tactics, that a company
uses to promote its brand or product in the market.
All the elements of the marketing mix influence each other. They make
up the business plan for a company and handled right, can give it great
success.
a) Product:
A product is seen as an item that satisfies what a consumer demands.
It is a tangible good or an intangible service. Tangible products are
those that have an independent physical existence. Typical examples
of mass-produced, tangible objects are the motor car and the
disposable razor. A less obvious but ubiquitous mass-produced
service is a computer operating system. The air transport service.
The airline product includes of two types of services:
In-Flight Services.
b) Pricing:
Variety of structured price bands categorized on the basis of the
various combinations of routes (Short/long distances and number of
halts etc.) and categories (i.e. Business class, Economy class).
Premium Pricing, Value for Money Pricing, Cheap Pricing, LowCost Pricing etc.
c) Promotions:
Point of purchases i.e. ticketing counters at traveling agencies,
online options (E.g. Membership promotions, couple tickets, Tourist
packages for agencies and various other individual and corporate
offers). Airlines Advertisement Needs to Keep in Mind the Image of
Country, The Scenic Beauty, Tourist Attractions, Rich Cultural
Heritages or Which Would Attract Number of Tourists.
d) Place:
Ticketing counters delivering services.
Online 24 hour reservation system
Consolidation
Tour Operator / Travel Agent
Affiliated with company
e) People:
A team of skilled & professionally trained pilots, ground staff, flight
attendants, freight movers and packers, security personnel,
management decision makers and most importantly, customers.
f) Process:
To avail of the air service, there is online or manual booking of
tickets followed by confirmation at security desks on arrival at the
airport at least 2 hrs before the scheduled commencement of the
journey.
g) Physical Evidence
h) On the ground:
Booking offices or ticket counters.
Paperwork.
Brand Logo.
Tickets
In-flight:
Aircraft.
Good Inner-exteriors.
Ambience.
Labels or Tag
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