Classic Airlines Marketing Solution Essay

2118 words - 9 pages

Classic Airlines Marketing Solution
A study of the Classic Airlines scenario reveals problems within the organization including customer dissatisfaction with customer service, a decline in customer loyalty and problems with employee job satisfaction and retention. Without resolution to the problems faced by Classic Airlines which have resulted in finanacial losses bankruptcy may be inevitable. Resolution or at the very least improvement for some of the customer service issues identified within Classic Airlines including limited redemption options for frequent flyer miles earned by Classic Club member, limited direct flights, and the timeliness of scheduled flights can is possible. ...view middle of the document...

According to Classic Airlines Exhibit A (3), [miles earned in Classic Rewards will not expire as if the members travel at least one time in a two-year period. Classic Airlines allocates 10 seats per flight for frequent flier redemption with blackout periods surrounding all major United States and European holidays. Frequent flier redemption tickets are non-transferable, and members may only redeem one ticket per flight. Members are allowed to redeem for only one companion ticket every two years. Classic Rewards members may redeem miles for stays at one of Classic’s six partner hotel chains or for car rentals at one of Classic’s three car rental partner companies. Members may also redeem miles for upgrades to first-class and may redeem miles for an annual “pre-board” pass that allows them to board flights prior to normal boarding.] Conversations with customers indicate dissatisfaction with redemption options, blackout dates, the number of limited non-stop flights for rewards customers, and the limited options for redemption for companion tickets.
To increase customer loyalty Classic Airlines needs to focus on improving Classic Rewards member’s customer satisfaction regarding the redemption options for earned miles. Conversations with Classic Airlines’ customers found in University of Phoenix Classic Airlines Exhibit B, competitors of Classic Airlines offer more frequent flyer rewards redemption options than Classic. Classic Airlines should closely consider this area of their customer service and make the necessary changes to improve customer loyalty. Recommendations for changes in Classic Rewards member’s frequent flyer miles redemption options include allowing customers more flight options including direct international flights, reassessing blackout dates allowing more flexible travel options and allowing more frequent redemption of miles for companion tickets. By doing market research, Classic Airlines can obtain a better understanding of the frequent flyer mile redemption options offered by their competitors enabling them to make the necessary changes to their program to be more competitive in their market. By partnering with other Airlines, Classic Airlines as well as the partnered airlines could allow their customers to exchange frequent flyer rewards miles between the two airlines allowing more redemption options for the customers. The frequent flyer miles are rewarded perks rewarded for repeat customers for loyalty. As such, the customer should be able to use the reward miles for flights based on assigned trade values same as cash for flights on the customers desired travel dates and for companion tickets. Classic Airlines should also increase partnerships with to include additional hotels and rental car agencies, credit card companies, and by adding restaurants, spa services, companies offering entertainment venues and other travel related services. Classic can also increase options allowing customers to use...

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