Optimizing the Marketing Strategies of Qantas Airways and Thai Airways
Keywords:Airline Marketing, Airline Strategy, Code-Sharing Agreement, Qantas Airways, Thai Airways
First, we revisit the concepts of airline marketing strategy, its components, code-share agreements, Business Model Canvas (BMC) and the benefits of marketing via strategic alliances. Due to the growth in the low-cost airlines sector and air transport passengers, traditional airlines have become increasingly exposed to a highly competitive international market, with airfares having to be reduced and efficiency increased. In response, airline companies have shifted their focus to investing in airline marketing and strategy research. In the meantime, passenger expectations change, and markets evolve rapidly. Hence, this case study is aimed at examining recent trends in passenger satisfaction and expectations, with reference to the marketing factors and airline cooperative strategies of Qantas and Thai Airways. For the study, both qualitative and quantitative approaches were employed and the results are presented separately. In the quantitative section, the BMCs of Qantas and Thai Airways are discussed to determine whether these two airlines can implement the code-sharing agreement. In the following part, customer satisfaction and expectations survey results are used to identify optimal marketing strategies and to formulate recommendations.
Carlson, J. A., & Parkin, M. (1975). Inflation expectations. Economica, 42(166), 123-138..
Chen, C. F., & Tseng, W. S. (2010). Exploring customer-based airline brand equity: Evidence from Taiwan. Transportation journal, 24-34.
Chin, A. T. (2002). Impact of frequent flyer programs on the demand for air travel. Journal of Air Transportation, 7(2), 53-86.
David, M. E., David, F. R., & David, F. R. (2009). The Quantitative Strategic Planning Matrix (QSPM) applied to a retail computer store. The Coastal Business Journal, 8(1), 42-52.
Dresner, M. E., & Windle, R. J. (1996). Alliances and code-sharing in the international airline industry. Built Environment (1978-), 201-211.
Elbanna, S., Thanos, I. C., & Colak, M. (2014). An exploratory study of the determinants of the quality of strategic decision implementation in Turkish industrial firms. Journal of General Management, 40(2), 27-46.
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.
Fan, T., Vigeant-Langlois, L., Geissler, C., Bosler, B., & Wilmking, J. (2001). Evolution of global airline strategic alliance and consolidation in the twenty-first century. Journal of Air Transport Management, 7(6), 349-360.
Forgas, S., Moliner, M. A., Sánchez, J., & Palau, R. (2010). Antecedents of airline passenger loyalty: Low-cost versus traditional airlines. Journal of Air Transport Management, 16(4), 229-233.
Forgas, S., Moliner, M. A., Sánchez, J., & Palau, R. (2010). Antecedents of airline passenger loyalty: Low-cost versus traditional airlines. Journal of Air Transport Management, 16(4), 229-233
Gilbert, D. C. (1996). Relationship marketing and airline loyalty schemes. Tourism Management, 17(8), 575-582.
Goh, K., & Uncles, M. (2003). The benefits of airline global alliances: an empirical assessment of the perceptions of business travelers. Transportation Research Part A: Policy and Practice, 37(6), 479-497.
Guerras-Martin, L. Á., Madhok, A., & Montoro-Sánchez, Á. (2014). The evolution of strategic management research: Recent trends and current directions. BRQ Business Research Quarterly, 17(2), 69-76.
Hamill, J. (1993). Competitive strategies in the world airline industry. European Management Journal, 11(3), 332-341.
Hapsari, R., Clemes, M., & Dean, D. (2016). The mediating role of perceived value on the relationship between service quality and customer satisfaction: Evidence from Indonesian airline passengers. Procedia Economics and Finance, 35(12), 388-95.
Hoskisson, R. E., Wan, W. P., Yiu, D., & Hitt, M. A. (1999). Theory and research in strategic management: Swings of a pendulum. Journal of management, 25(3), 417-456.
Hess, S. (2007). Posterior analysis of random taste coefficients in air travel behaviour modelling. Journal of Air Transport Management, 13(4), 203-212.
Hazledine, T. (2011). Legacy carriers fight back: Pricing and product differentiation in modern airline marketing. Journal of Air Transport Management, 17(2), 130-135.
Kandampully, J., & Duddy, R. (1999). Relationship marketing: a concept beyond the primary relationship. Marketing Intelligence & Planning.
Morrison, S. A., & Winston, C. (1990). The dynamics of airline pricing and competition. The American Economic Review, 80(2), 389-393.
Nardo, M. (2003). The quantification of qualitative survey data: a critical assessment. Journal of economic surveys, 17(5), 645-668.
O’Connell, J. F., & Williams, G. (2005). Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11(4), 259-272.
Oum, T. H., Park, J. H., & Zhang, A. (1996). The effects of airline codesharing agreements on firm conduct and international air fares. Journal of Transport Economics and Policy, 187-202.
Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., & Ferreira, J. J. P. (2011). Business Model Generation: A handbook for visionaries, game changers and challengers. African journal of business management, 5(7), 22-30.
Pereira, B. A., & Caetano, M. (2015). A conceptual business model framework applied to air transport. Journal of Air Transport Management, 44, 70-76.
Pi, W. P., & Huang, H. H. (2011). Effects of promotion on relationship quality and customer loyalty in the airline industry: The relationship marketing approach. African Journal of Business Management, 5(11), 4403.
Rajasekar, J. (2000). The impact of airline alliances: the effects of codesharing on the performance of domestic airlines (Doctoral dissertation, Golden Gate University).
Remane, G., Hanelt, A., Tesch, J. F., & Kolbe, L. M. (2017). The business model pattern database—a tool for systematic business model innovation. International Journal of Innovation Management, 21(01), 1750004.
Rhoades, D. L., & Lush, H. (1997). A typology of strategic alliances in the airline industry: Propositions for stability and duration. Journal of Air Transport Management, 3(3), 109-114.
Mohammad Shafiee, M., Sanayei, A., Shahin, A., & Dolatabadi, H. R. (2014). The role of brand image in forming airlines passengers’ purchase intention: study of Iran aviation industry. Int. J. Services and Operations Management, 19(3), 360-376.
Tapera, J. (2014). The Importance of strategic management to business organizations.
The Bureau of Infrastructure, Transport and Regional Economics 2019, International Airline Activity Annual Publications, BITRE, Australia, viewed 1 August 2019, https://www.bitre.gov.au/publications/ongoing/international_airline_activity-annual_publications.aspx
The International Air Transport Association 2018, IATA Global Passenger Survey, IATA, viewed 16 September 2019,https://www.iata.org/publications/store/Documents/GPS-2018%20Highlights.pdf
Theil, H. (1952). On the time shape of economic microvariables and the Munich business test. Revue de l'Institut International de Statistique, 105-120.
Vowles, T. M. (2000). The geographic effects of US airline alliances. Journal of Transport Geography, 8(4), 277-285.
Yilmaz, K. (2013). Comparison of quantitative and qualitative research traditions: Epistemological, theoretical, and methodological differences. European journal of education, 48(2), 311-325.
Zou, L., & Chen, X. (2017). The effect of code-sharing alliances on airline profitability. Journal of Air Transport Management, 58, 50-57.