MANAMA: Customer loyalty and retention efforts are viewed as the two vital challenges for business continuity in 2009 by an overwhelming majority of 86 percent airlines surveyed by Sabre Middle East.
Sabre Airline Solutions conducted a survey of 90 airlines across the globe and found that while fuel cost instability and revenue management are among the top challenges for carriers over the next 18 months but customers loyalty and how to retain customer base have also emerged as a new trends in the aviation industry.
In past years, the survey revealed, the airlines were most concerned with skyrocketing fuel prices. "Today, carriers around the world are making dramatic business-model changes to survive not only fuel costs but a multitude of challenges. This could result in a positive change that brings about the ultimate travel experience for consumers," it added.
"It is customer loyalty and retention efforts that are viewed by an overwhelming majority (86 percent) as having the most positive impact on their business. Nearly 50 percent of those surveyed said that customer experience was the primary issue related to customer loyalty and retention. Maintaining or developing customer loyalty is part of the problem airlines face today, since many carriers as one of the top tactics to increase revenues view charging additional fees and ancillary services. However, one of the lessons learned is that airlines ought not forget the customer." "The importance of customer loyalty and retention was distinctly higher in this year's survey compared to a similar study we did two years ago," said Maher Koubaa, Sabre regional vice president for the Middle East and Africa.
"That's not surprising as airlines grapple with the challenge of introducing additional fees to generate much-needed new revenue, in a way that doesn't erode an airline's brand or negatively impact customer loyalty. The airline that finds that magic balance will become a model for the rest of the industry.
"We've seen some winners and losers in this area, particularly as customers are less loyal to brands and more apt to switching preferences now than ever before. Other key Sabre survey findings for the Middle East and Africa region include revenue management and yield was rated by 50 percent of survey respondents as the biggest challenge in managing airline profits over the next 18 months.
