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CUSTOMER
RELATIONSHIP
MANAGEMENT
Meaning of CRM in Airlines
Industry
CRM is the process of managing detailed
information about individual customers and
carefully managing all customer “touch points”
to customer loyalty
Reservations
Touch
Food &
Points Frequent-flier
Beverages program
Business
Flight
Class
attendants
Services
Does this add any value?
ROI from different CRM Activities
Financial Assessment of different CRM initiatives
Paradigm Shift in CRM
We know why you fly, we're
American Airlines
• American Airlines was developed from a
conglomeration of 82 small airlines through
acquisitions and reorganizations.
• It is the world's largest airline in passenger
miles transported and passenger fleet size.
• American Airlines serves four continents.
• As of February 2009, the American Airlines
fleet consists of 616 aircraft.
• American Airlines had an average fleet age of
15.4 years in February 2009.
CRM: The AA way
The Low Fare Airline
• Southwest is the largest airline in the world by
number of passengers carried per year (as of
2007).
• Southwest Airlines was originally incorporated to
serve three cities in Texas as Air Southwest on
March 15, 1967, by Rollin King and Herb
Kelleher.
• Successful business on an unusual model: flying
multiple short, quick trips into the secondary
(more efficient and less costly) airports of major
cities.
• The fleet include only one aircraft type, the
Boeing 737.
CRM in Southwest Airlines
The joy of Flying
Jet Airways is India‟s leading private airlines.
It boasts of a market share of about 29%.
Jet operates with a relatively young fleet of
Boeing 737 jets and ATR72 turboprops.
Started international operations in March 2004
between Chennai – Colombo.
It carries about 7 million passengers a year.
CRM in Jet Airways
Special Offers
Offering free tickets
Jetlite surprises
Other CRM Activities
Rapid Rewards program for all passengers
that make all their reservations online.
Incentives include lower rates, express
boarding passes, and in-flight bonuses like
free snacks & drinks.
Business Rapid Rewards for Business
travelers.
Special services to senior citizens.
What tactics should airlines
use to acquire,
develop and retain
customers with greater
precision and improved
results?
In order to manage the customer more
effectively across all lines of service, airlines
must change their approach to CRM in a
number of ways…
Customer Segmentation
CRM Initiatives
Organization design & Management
What are the problem areas?