Ryanair Customers Service Problems - Assignment Example

? Ryanair s service problems in Introduction Ryanair is one of Europe’s leading low cost airlines that have established a strong foothold in the scheduled passenger airline segment in Europe over the years. It has been consistently offering low fares that have contributed towards an increased passenger interchange while keeping a maintained stronghold on operating efficiency and cost control. However, off late the company has been suffering an image crisis due to its weakened customer service. The company chief, Michael O’Leary has admitted that they had been running like lunatics for the past 20 years and it is time that they change their modes. The company shareholders had been complaining of airline’s image and share prices have faced a slowdown. The profits also have declined and for the second consecutive time. Problem 1: Hidden fees Ryanair required its passengers to check in online for boarding and arrive at the airport with the boarding pass. If the passenger failed to do so, he or she would have had to pay a fine of €70. A reissue of boarding pass invites a charge of €70 (Pope, “Is this the advent of a new caring, sharing Ryanair?”). Another issue with hidden fees is with the baggage standard norms and charges associated with it. Ryanair has been famous for having one of the strictest baggage allowances in Europe. The airline allows a baggage size of 55cm x 40cm x 20cm which is even smaller that what IATA standardizes as baggage allowance. Also, the airline charged a pretty high sum of €60 at the bag drop counters and boarding gate. Measures taken The charge for not checking in online remains unchanged. The argument put forward by Ryanair is that if a passenger can come forth with his passport, he can check in online as well. This is one criticism that the company refuses to accept. They deny that the hidden charges are hampering company’s brand image and need to be tackled. The strictures maintained by Ryanair for online boarding requirement remain strong. Charges for reissue of a boarding pass shall however be reduced to €15. Ryanair did not focus on these issues when it went strong on growth but in the recent times when there was a second profit warning in the past 10 years, the airline realised the need to shift the focus of its strategy to addressing consumer complaints with a digitally powered strategy. Company chief says that they are actively participating in improvising on customer service and actively listening and responding. As a part of the initial steps towards better customer service, the company has reduced these charges to €30 at the bag drop counters and €50 at the boarding gate. The company also plans to put an end to hefty fines on baggage’s that weigh a little heavier or are just slightly larger. It also announced an allowance of a second carry in baggage that shall be limited by the measure of 35 x 20 x 20cm over and above the pre-existing 10 kg baggage allowance (“Ryanair Rolls Out More Customer Service Improvements”). Analysis The reasons provided for impositions for not checking online are unreasonable. People might not accept the reason that checking online is as cultural as carrying a passport while taking a flight. Technology has made online access easier. It shall be a matter of time until people get used to the idea of boarding online. Moreover, not all airlines view online check-in likewise. Until then, hefty fines on not checking in online is detrimental to company image. Strict rules on baggage size have been detrimental to company’s brand image. Complains have gone unheard over slight mismatches in size inviting heavy fine impositions. Such brand reputation goes a long way in bringing down customer count, word of mouth reputation spreads stronger and faster for factors that are unacceptable by consumers. In this view, small improvements in baggage allowances shall be welcomed but the change in consumer perception shall take long to change unless the fuss over extra handle size or extra wheels are not eliminated. Problem 2: Communication and marketing On the online platform, Ryanair has been short of no complains. A simple ticket booking process needed at least 17 clicks before one could finalise his travel itinerary. The company website was facing tremendous problems with the recaptcha code that was almost impossible to decipher while booking tickets (Macleod, “Ryanair unveils plans for new website, with mobile app to roll out in May 2014”). Company chief, O’Leary had earlier also dismissed the utility and importance of social networking to remain in touch with customer needs. He now acknowledges that the platform allows better interaction and means to understand customer complains. The mobile app that was launched after 6 months of its unveiling announcement was also made available at €3, which is quite unusual for a company engaged in airline business. The airline has now identified that in the digital age, it needs to revamp its website, the mobile platform and allow itself a social media presence which it had dismissed earlier, to ensure customer and stakeholder satisfaction. Company chief announced that the winter shall see tremendous improvement on the digital platform where they shall put more investments and increase interaction with passengers to ensure that their problems are addressed (Topham, “Ryanair's new touchy-feely O'Leary hits turbulence but sees clearer air ahead”). Measures taken To address ticket booking issues, the company plans to do away with the recaptcha code requirement entirely. Also, its hall allow its passengers, a window of 24 hours to make minor changes with their ticket booking like name change, spelling corrections and route alterations. Ryanair acknowledges that the requirement of 17 clicks for making a single booking is ruthless harassment of passengers and in a luring business of airline service, even such minor mistakes can be deadly. The company website shall undergo a complete revamp and a separate team shall be appointed to handle customer complains. The website shall also include a passenger registration feature that shall ease the booking process for returning customers. To cater the larger EU market, the website revamp program also includes tailored national websites for EU nations to allow the larger customer base to make greater savings and allow greater convenience in airline booking (Vizard, “Ryanair overhauls digital strategy to focus on mobile and social media”). On 1st October 2013, the company launched its first free of cost mobile app that was available for download on both Google Play Store and iTunes. The app has been designed to provide easy access to cheapest airfares for European travellers. Passengers can make flight bookings, review registered bookings, check schedules and add services to their prior bookings like priority boarding option and baggage check in. There is also a special ‘Fare Finder’ feature that allows passengers are allowed to make fare specific searches and plan route and travel period accordingly. Another ‘Share the Fare’ feature links the social media with the mobile app allowing passengers to share the fares over their social media platforms. It is expected that by the end of December 2013, ‘My Ryanair’, the passenger registration system shall be completely functional. The app also keeps passenger updates on latest news and events at Ryanair. Price offers, latest promotional schemes and introduction of new flights and routes for Ryanair is now just a click away (“Appy Days - Ryanair’s App Is Now Free!”). Analysis All plans to revamp website and mobile apps are a part of positive theory in approach to addressing customer issues. Ease of booking and hassle free check in shall be well received. Ryanair needs to focus on continuous updates of its digital platform. Problem 3: Lack of staff The problem of staff shortages at baggage check in desks has been rampant with Ryanair. There are maximum 2 to 3 people deployed at each desk. In 2009, the shortage was so acute that only 11 desks were stationed for 225 flights at Stansted airport. Swissport, ground handling partner for Ryanair apologized for their default. This however, was not a one off event. Frequent complains of staff shortages at bag drop counters have been reported over social media platforms and also customer complains portals of Ryanair (“David Dimbleby among hundreds who missed flights after Ryanair opened just 11 check-in desks for 255 flights”). During its growth phase, Ryanair believed that people value cheaper flights and safety more than customer service (“Strategy”). Ryanair sold both but ignored consumer complaints almost completely. Repeated complaints over inappropriate fines, high food pack charges, inadequate bag drop staff, unrealistic baggage norms and unusually troubled web booking experience fell on deaf years. The company brand image took a toll and unless it was reflected in company profits, consumer complaints went largely unheard. Measures taken In a latest attempts to improve company brand image, Ryanair has decided to hire a marketing director who shall be responsible for all kinds of marketing and sales activity. He shall also act as the sole spokesperson for the airline. The responsibilities for the marketing person shall include brand promotion, advertising, devising and implementing sales strategies and communications strategies while maintaining the company message of low fares and company policy of passenger safety. In a related attempt, the company shall also set up a team that shall be devoted to the task of handling customer complaints over emails. Such team shall also manage the social media platform for Ryanair wherein the passengers shall remain updated of the latest changes in routes, enhancement of flights and routes and price promotions well in advance so that they can plan an easy and cheap travel (Vizard, “Ryanair to hire first marketing director to help improve customer image”). In its hiring plan, the company also plans to pick a commercial director who shall act as a specialist and hold responsibility for airport negotiations, traffic growth, load factor, route management and development and yield management. Analysis Hiring of a marketing agent shall be a thankless job unless simultaneous improvements are made in training and preparing other resources of the company that shall support marketing initiatives. Polite staff, relaxed baggage rules and ease of check in need to combine with strong marketing plans to re-establish lost foothold of the company. A dedicated team deployed with the task of consumer complaints is a welcome initiative but this again needs to be supported by a carefully charted out functional linkages and handling such that problems are handled more efficiently and quickly. It confirms with the legitimacy theory of matching social requirements off a company with consumer needs (Tilling, “Refinements to Legitimacy Theory in Social and Environmental Accounting”). The airline needs to take a comprehensive approach to its marketing initiatives so regain its tarnished image. Conclusion Ryanair’s attempts to resolve consumer dissatisfaction and rectify tarnished brand image have come about late. In this scenario, efforts made by the company will see a long time lag before any fruitful results are borne. To make their efforts more effective, the company needs to make significant advertising campaigns that talk loud and clear about their efforts to make people more aware that the company is now taking their issues at hand. Customer grievance addressing team needs to be efficient and ensure quick responses. For all this, a sound training mechanism for all employees within the organization needs to be well in place. Works Cited “Appy Days - Ryanair’s App Is Now Free!” Ryanair. Ryanair, 1 Oct. 2013. Web. 7 December. 2013. “David Dimbleby among hundreds who missed flights after Ryanair opened just 11 check-in desks for 255 flights.” Daily Mail Reporter. Daily Mail, 3 Aug. 2009. Web. 7 December. 2013. Macleod, Ishbel. “Ryanair unveils plans for new website, with mobile app to roll out in May 2014.” The Drum. TheDrum, 30 Oct. 2013. Web. 7 December. 2013. Pope, Conor.“Is this the advent of a new caring, sharing Ryanair?” The Irish Times. The Irish Times, 25 Oct. 2013. Web. 7 December. 2013. “Ryanair Rolls Out More Customer Service Improvements.” Ryanair. Ryanair, 28 Nov. 2013. Web. 7 December. 2013. “Strategy.” Ryanair, (2005): 1-4. Ryanair. PDF file. Tilling, Mathew. V. “Refinements to Legitimacy Theory in Social and Environmental Accounting.” Flinders University(2004): 1-11. Flinders University. PDF file. Topham, Gwyn. “Ryanair's new touchy-feely O'Leary hits turbulence but sees clearer air ahead.” The Guardian. The Guardian, 5 Nov. 2013. Web. 7 December. 2013. Vizard, Sarah. “Ryanair overhauls digital strategy to focus on mobile and social media.” MarketingWeek. MarketingWeek, , 20 Sep. 2013. Web. 7 December. 2013. Vizard, Sarah. “Ryanair to hire first marketing director to help improve customer image.” MarketingWeek. MarketingWeek, , 11 Oct. 2013. Web. 7 December. 2013. Read More