UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Thuy Trang POOR GROUND SERVICE AGENT ATTITUDE AT VIETJET AVIATION JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Thuy Trang POOR GROUND SERVICE AGENT ATTITUDE AT VIETJET AVIATION JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: LE THI THANH XUAN Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com Table of contents Table of contents. i List of figures. iii List of tables. iv EXECUTIVE SUMMARY.
1 CHAPTER 1: COMPANY BACKGROUND. Product and service. Business development strategies. 5 CHAPTER 2: PROBLEM IDENTIFICATION.
Service quality and customer satisfaction. Uncomfortable air travel experiences. Ground staff’s attitude. Poor of inflight services.
Initial symptoms and potential problems. Main problem validation. 33 CHAPTER 3: CAUSES OF PROBLEM. 34 i TIEU LUAN MOI download : skknchat@gmail.
Stress on work. Motivation and promotion. Main cause validation .1 Content of training. The delivery methods of training.
50 CHAPTER 5: ACTION PLAN. 58 CHAPTER 7: SUPPORTING INFORMATION. Information of in- depth interviews conducted. In- depth interview – section 1.
In- depth interview - section 2. In- depth interview - section 3. 78 ii TIEU LUAN MOI download : skknchat@gmail.com List of figures Figure 1.1: Business model Figure 1.2: Vietnam aviation market size in annual passengers 2011 to 2016 Figure 1.3: Vietjet business performance 2017 Figure 1.4: Vietnam aviation growth Figure 3.1: Vietjet overall service quality rate 2017- 2018 Figure 3.2: Service quality rate by services provided 2017- 2018 Figure 3.3: Vietjet Customer’s complaints 2018 Figure 3.4: Vietnam air transportation market share 2018 Figure 3.5: Comparison image comparison between VNA and Vietjet Figure 3.6: Price comparison of four Vietnam aviation companies Figure 3.7: Bamboo transportation term and regulation Figure 3.8: Vietjet transportation term and regulation Figure 3.9: Phases of the Air- Travel Experience Figure 3.10: Total of delayed flight first half of 2018 Figure 3.11: Initial symptom and potential problems map Figure 3.12: Initial symptom and main problem map Figure 4.1: Initial causes and effect map Figure 4.2: The general process of initial training for ground staff in Vietjet Figure 4.3: Final causes and effect map List of tables Table 3.1: Vietjet KPI performance 2018 Table 3.2: Service quality rate by services provided Table 3.3: Reasons customers choose Vietjet Table 3.4: Summary passenger’s interview Table 3.5: Comparison of satisfaction rate 2017- 2018 Table 3.6: Rate of staff attitude satisfaction- 2018 Table 3.7: Task accomplishment evaluation – 2018 Table 3.8: Inflight service quality rate Table 3.9: Ground staff evaluation report 2018 Table 5.1: The costs of private course of training ground service agents and recurrent training Table 5.2: Cost of outsourcing initial training course and recurrent program Table 5.3: The costs of consulting specialists and recurrent training Table 5.4: Action plan of training program iii TIEU LUAN MOI download : skknchat@gmail.com Abbreviation Index Abbreviation Description 1 CAAV Civil Aviation Administration of Vietnam 2 CAPA Centre for Aviation 3 FSC Full Services Carrier 4 HR Human Resources 5 HRM Human Resources Management 6 LCC Low Cost Carrier 7 VNA Vietnam Airlines 8 Vietjet Vietjet Aviation Joint Stock Company iv TIEU LUAN MOI download : skknchat@gmail.com EXECUTIVE SUMMARY The aviation industry in Vietnam becomes more competitive in recent years. Vietjet Aviation Joint Stock Company now has to compete with various airlines and one of big rivals is Vietnam Airlines, the state owned organization with famous reputation.
Vietjet attempts to retain loyal customers and establish themselves, so they have to pay attention on improving the service quality rate. It is not a stretch to say that customer retention in service industry depends on customer service. Today, customers are more knowledgeable of their options among various offerings, which is the main reason that airlines seek to enhance customer services. The purpose of this research is to explore the causes of poor of customer service attitude of Vietjet ground service agents.
This problem is searched through the symptoms of KPI achievement failure and low service quality rate year by year. Though the internal data combined with in depth interviews, the thesis has defined three potential problems, which are high competition, visa restrictions and customer dissatisfaction. In the issue of dissatisfaction, there are three elements contributing to that are uncomfortable air travel experiences, ground staff attitude and poor of in- flight services. By the method of collecting data, literature supported and interviews, the thesis finds out main problem leading to customer dissatisfaction and KPI achievement failure is unprofessional ground service agent’s attitude.
The findings of this thesis reveal that main cause of staff attitude problem is the poor of initial training and recurrent program for ground service agents working at airports. In the current of Vietjet context, the most suitable solution suggested is outsourcing consultants instructing initial training course and conduct e- learning system for existing staff periodically. The findings are investigated in details accompanied with recommendation and detailed implementation plan for board of management consider with an aim to increase level of service quality rate, they also are known as foundation for customer satisfaction and enhance passenger transportation revenue for airline. 1 |P a g e TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: COMPANY BACKGROUND 1.
History Established on 23rd July, 2007, Vietjet Aviation Joint Stock Company (Vietjet) operates on low cost model transportation to offer travelling services that would accommodate demands of Vietnamese and international passengers. Vietjet always aims to provide safe flights with excellent service quality in domestic and Asian region. Vietjet spent four years on good preparation in resources, systems and finance to ensure sustainable development when joining to Vietnam aviation industry. In 2018, Vietjet has met the air travelling demand of millions passenger, contributing to the growth of Vietnam aviation and tourism industries and the economic development as well.
After 6 years taking off, Vietjet has established itself in aviation market with a large portion of market share; achieved significant milestones in the journey of sky conquering.1: Business model- Source: Vietjet annual report 2017 2 |P a g e TIEU LUAN MOI download : skknchat@gmail. Vision Vietjet always aim to be a multi-national aviation group with the various network which covers the whole Vietnam regions and the global. Vietjet does not lonely provide aviation services but also consumers product based on e-commerce platform. Become a favorite and trust airline, which receives credibility from customers.
Mission To operate and develop domestic, regional and international flight network. To create breakthrough in aviation services. To make flying a popular means of transport in Vietnam and in the world. To bring joyfulness, customer satisfaction by providing luxurious and exceeding expectation services with friendly smiles and professionalism.
Product and service Vietjet makes continuous efforts to cut down cost and unnecessary expenses on tickets prices to make air means of transportation more affordable for the majority of customers. Vietjet focuses more on product research and diversify its segmentation as well as to make services more outstanding. Vietjet operates on low cost strategy with some changes to hybrid model. Besides its standard low-cost economy ticket price (Eco), Vietjet has launched luxury services for premium objectives called “Sky-boss” ticket.
Using Sky-boss services, passengers can have special privilege like changing flight time no fee of charge, free check-in baggage, using VIP lounge, entitled to use priority check in and boarding to aircraft, in- flight complimentary food and beverage. Operating on low cost strategy, Vietjet also offers additional services called “Ancillary” which an aim to improve passenger’s experience and comfort when flying with Vietjet. Vietjet has introduced kiosk check-in system in three international airports, web check-in and mobile check-in to release pressure in high seasons, make procedure shorten and cut waiting time for passengers. Vietjet has launched “Sky-shop” services for further interesting and comfortable travel experiences for customers.
With “Sky-shop” service, passengers can taste hot delicious meals bringing unique culture of regions and countries flying to. The carrier also 3 |P a g e TIEU LUAN MOI download : skknchat@gmail.com provides in- flight shopping call “Duty free merchandise” with small souvenir, perfume, cosmetic and jewelry. Business development strategies In 2020- 2025, Vietjet continues to expand domestic and international routes: launch new routes connecting global airports and optimize frequency to local routes, especially prior to North Asia, Northwest Asia, ASEAN market. Besides expanding market, Vietjet maintains strong brand health to enhance reputation and credibility with stakeholders including passengers, partners, which helps to nurture sustainable development for firm.
Continue to research and develop customized services and products on e-commerce platforms, enhance cost management and deploy high tech, cost savings application for operation. Target customer Vietnam’s local carrier Vietjet is helping to stimulate the traveling demand of customers. Vietjet establishes itself with new generation airline with low cost strategy. Segmentation that Vietjet aims at is limited- travel budget customer, who cannot be able to afford for high fare.
Most of Vietjet’s passengers are price-sensitive, who have more free time and do not depend much on schedule’s change. Completely new customer segmentation: customers are using the services of other means of transport like trains, automobiles with the remarkable utility of aviation services. 30 percentages of Vietjet customers who first go on air. Vietjet helps Vietnamese customers can approach to fast and modern air transportation with reasonable price, for more experience and comfort to fly with Vietjet.
Market share Vietjet has driven a large portion in significantly growth, especially in domestic market. In 2018, Vietjet has outperformed other carriers, maintain its leading position in domestic air transportation with 45 percentages in market share. During first 9 months of 2018, Vietjet has conducted the total number of 89,690 flights, increase approximately 22 percentage compared to this period last year. In international market, Vietjet continues to expand flight network with strategy to develop brand name in global market.
Vietjet has 4 |P a g e TIEU LUAN MOI download : skknchat@gmail.com increase flights to Northeast Asian, South Korea, Taiwan, Hong Kong and China- the region with highest average revenue coming from charter flights.2: Vietnam aviation market size in annual passengers (millions) 2011 to 2016- Source: CAPA 1. Business performance The Vietnam aviation market expected to grow in 2020, in the context as prediction that the economy can achieve highest GDP development. The Vietnamese government create suitable environment and promote tourism as a key economic sector, which attract millions of foreign tourists to Vietnam. With the expanding fleet of aircrafts (64 aircrafts) and the increase in international routes, Vietjet is on the way to be a multi-national carrier and high competitive advantage.
5 |P a g e TIEU LUAN MOI download : skknchat@gmail.3: Vietjet business performance 2017- Source: Vietjet Annual report 2017 In 2018, Vietjet has sustainable growth and continues to get considerable achievement. The carrier has conducted of safe flights and met the travel demand of over 23 million of passengers with high technical reliability 99. Vietjet with the strategy wants to become leader carrier in domestic market and favorite airlines in region. Vietjet has explored destination in 39 domestic routes and expand international fight network to 66 destinations in international region.
Airlines have signed agreement for new routes to India, Japan and Cambodia. 6 |P a g e TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 2: PROBLEM IDENTIFICATION 2. Problem context Vietnam is one of the rapid growing aviation industries over the world, increases by 17.4 percent in last decade, driven by a growth in domestic and international tourists as well as the development of low cost carrier models. Between 2018 and 2020, passenger transportation volume is expected to increase by more 16 percent.