Corporate Reputation in the Digital Age: The Case of Dubai International Airport

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Table of Contents

Abstract
Introduction
The problem statement
The Background
The Solution
Conclusion
Bibliography
Footnotes

Abstract

The present white paper addresses the problem of maintaining reputation in the digital age. Specifically, it provides a rationale for building a strong online presence and engaging with consumers for airline companies and outlines the key steps to take to realize an effective strategy. The case that this paper seeks to solve is that of the grounded flights at Dubai International Airport in February, 2019.

The incident took place due drones spotted next to the airport and resulted in a half-an-hour delay that bothered many travelers. Customer loyalty and satisfaction are associated with positive purchasing decisions and more revenue for businesses. Back in February, DBX had to handle complaints on various social media platforms. An effective strategy that the company could undertake would be proactive at its core. The key principles would include social listening, timely responses, content generation, and strong brand philosophy.

Introduction

Reputation has always been a type of resource — an entity or a person could gain some or lose some, thus, moderating their chances to meet their desired goals. In today’s digital world, corporate reputations have become as important as ever. Partly, this tendency can be attributed to the relative permanency of online reputation. A single publication or a review can ruin the image that a company has been carefully building and maintaining for years. Moreover, ridding of unwanted digital footprint is challenging and problematic. Another reason why these issues have become even more critical is the trust that Internet users put in what they read online.

A quick search may skew their perception of a company and make them change their minds about purchasing a product or a service. Airline companies should be especially wary of their reputation since taking a plane has certain perceived risks. Thus, a good online strategy for an airline company should be meticulously tailored and customized to meet its most dire needs. The present white paper describes the case of flight suspension at DXB, Dubai, provides an overview of the issue, and proposes an action plan to tackle it.

The problem statement

As reported by ABS-CBN News, on February 15, 2019, all flights at Dubai International Airport (DBX) were grounded on suspicion of drone activity ¹. The suspension lasted from 10:13 a.m. local time to 10:45 a.m. This incident caused a major inconvenience for everyone involved, including staff and passengers. In 2018, the primary hub for airlines Emirates and flydubai, Dubai International Airport became the world’s busiest airport. As stated in the report by ABS-CBN News, in the first two months of 2018, 81.4 travelers visited DXB.

The UAE was not the first country to be confronted with drone activity impeding commercial air traffic. The issue has first taken on urgency after suspicious drone sightings were spotted next to airports in the United Kingdom and the United States. One month prior to the incidence in Dubai, London’s Heathrow airport was paralyzed for an hour after a drone was sighted. Around the same time, drone sightings temporarily halted arriving planes at Newark Liberty International Airport in New Jersey. In December, London’s second busiest airport, Gatwick Airport, faced a serious disruption in flight schedules due to drone activity.

While at first sight, a half-an-hour delay might seem insignificant, the incident might have hurt Dubai International Airport’s reputation. Many passengers who witnessed the disruption took their worries and discontent with service to social media. For instance, a Twitter user @anushwij wrote: “Stuck for ages at Dubai airport runway unable to taxi as unauthorized drones have entered the airspace here and all takeoffs have been grounded!” Since DXB trended on Twitter due to the unexpected delay, it is easy to imagine that this tweet and many others found their audience. Those users who visited DXB might have started doubting its reliability.

The situation may be even worse for potential customers — their first impression of DXB might have been this unfortunate news, which could have contributed to their future choices. Hence, the question arises as to how a major airline company can build an online strategy to protect its reputation in case of incidents like the one described above.

The Background

Obviously. No business can boast a 100% customer satisfaction rate. As of now, customers’ behavior in the case of dissatisfaction has been well observed and documented. When they do not have a positive experience with a product or a service, the following three scenarios are possible:

customers no longer use a company’s products/ services and choose to take their business to a competitor instead;
customers file a complaint against the company that caused the dissatisfying consumption experience;
customers share their dissatisfying consumption experience with other customers (so-called negative word-of-mouth)².

All these outcomes are modifiable; however, to take action, DBX’s marketing specialists need to see a clear rationale behind developing an online reputation strategy. In his review, Erskine highlights the key facts on the association of online reputation and customers’ behavior. For instance, as of 2016, 90% of consumers consulted Internet sources for reviews before making a purchase. 67.7% of purchasing decisions were influenced by online reviews, and 84% of people trusted online reviews on par with personal recommendations from friends and family. More than three-fourths of consumers reported that positive reviews made them trust a local company more. The question arises as to how negative feedback affects revenue. As stated by Erskine, even one critical review on the first search results page can cost a business as much as 22% of annual revenue. Two negative comments may mean a 34% decrease while three may cut revenue in half ³.

While the aforementioned facts apply to all industries, the air transportation market sets its own rules. First, this market sector has undergone rapid growth in recent years, making the competition as tough as ever. The industry is no longer monopolized by a few major companies. Instead, their low-cost contenders are gaining more leverage and expanding their market share by attracting more customers. Second, passengers and visitors have their own evaluation criteria when they recall their experiences with an airline. Independent research run by Brandwatch has shown that in-flight and post-flight conversation topics had a significant variation. During their flight, passengers mostly cared about seating (38%), food and drinks (15%), and service (16.5%). After the flight, customers worried the most about punctuality (33.8%), brand loyalty (34%), and compensation (21.64%) ⁴.

Studies like the one described could help Dubai International Airport set its priorities straight. Third, as stated by Brandwatch, companies with strong online presence and control over information were seen as more reputable by customers.

Some studies, however, do not reveal much correlation between online word-of-mouth and purchasing decision. For instance, a recent research paper described the behavior of customers after viewing the online feedback and criticism of major airlines ⁵. The authors stated that participants did not rely fully on available information. It was not exactly possible to predict the outcome based on the quality of reviews. However, online presence had an emotional effect on respondents: they reported more satisfaction with those airlines who had positive reviews.

The Solution

The data above show why it is critical that a company as powerful and influential as Dubai International airport should take care of its online reputation. A good strategy could be the answer, but only if it relies on the following principles:

Prompt answers and transparency

For many people, buying a plane ticket is one of the biggest discretionary purchases that they make every year or two. Thus, when their plans fall through as in the case with a sudden delay at DBX, it is only natural for consumers to get emotional. With the availability of Internet service and wide use of mobile devices, disappointed consumers find an outlet in social media and can make fairly emotive posts. If an airline company ignores these publications, other consumers, including potential ones, might become suspicious. To them, the company either silently accepts its fault or does not care enough to provide any meaningful feedback.

Following the incidence with drone sighting, it was imperative for Dubai International Airport to keep its social media followers posted and update information as the situation was unfolding. It does not mean that social media marketing specialists would have to reply to every post and tweet. Instead, it would suffice to make announcements on all of the official social media pages. In this case, people would feel that since DBX is well aware of what is happening and remains in control.

Customer care

It makes more sense to act proactive instead of retroactive as in dealing with consequences. To realize this strategy, an airline company needs to conduct research on customers’ pain points and worries continuously and take measures accordingly. As it was mentioned above, during and after the flight, consumers tend to have different expectations. The statistics provided may be too general to make any meaningful conclusions. Thus, it would only be reasonable for Dubai International Airport to run their own surveys to understand its target audience. Consumers need to be heard and listened to, and in the era of tough market competition, compassion and attention are unequivocal advantages. Moreover, customers who trust their provider may be more likely to remain loyal to the company even after unfortunate events such as the delay of departing flights in February.

Content generation

Dubai International Airport can build a strong online presence by means of high-quality content generation. For years now, content in the form of various media — images, videos, and texts — has been dominating the Internet and reigning supreme on the market.

Given the competition in the industry, Dubai International Airport needs to find a way to stand out. A feasible idea would be to post informative content that travelers and visitors would find both useful and entertaining. Apart from that, in light of the recent events, DBX could help its customers relieve stress and rid of fears by posting comprehensive guides on how to stay safe before, during, and after flights. A separate series of posts could clarify what drones are and why their sightings can be disruptive to daily activities at the airport. The human brain finds it hard to deal with uncertainty, and by providing up-to-date information, DBX will win a good online reputation.

Brand philosophy

Today, more customers than ever pay attention to the brand’s vision and mission. They are some of the primary contributing factors influencing purchasing decisions. People no longer want to see corporations as soulless money-making machines. Instead, they start to value the ideas and support of the right causes. Thus, building brand philosophy should be an indispensable part of the online reputation strategy. Dubai International Airport should have a clear mission statement and actually practice what it preaches — care, compassion, and strife for higher quality.

Conclusion

In the digital age, it has become as important as ever to build a strong online presence and maintain an impeccable reputation. Different studies point to the association between a company’s perception based on online reviews, feedback, and social media activities and customers’ decision. Nowadays, the majority of people consult Internet sources before making a decision to buy a product or a service. Airlines are under immense pressure to perform well and respond to online feedback promptly. Sometimes, an unfortunate turn of events can compromise an airline’s reputation that it has been building for years.

In February 2019, Dubai International Airport had to reschedule departing flights on suspicion of drone sighting nearby. Many customers took their complaints to social media and made a point to express their dissatisfaction. While this situation is complicated, it is far from unresolvable. A good online reputation strategy for Dubai International Airport should be based on social listening, timely responses, content generation, and strong brand philosophy.

Bibliography

“Drones Temporarily Ground All Dubai Airport Flights.” ABS-CBN News, 2019. Web.

Erskine, Ryan. “20 Online Reputation Statistics That Every Business Owner Needs To Know.” Forbes, 2017. Web.

Kim, Yong-Sook, and Jin-Woo Park. “A Study on the Impact of Online Word-of-Mouth for Airlines on Customer Behavior.” The Open Transportation Journal 11, no. 1 (2017): 81-89.

Kitchen, Philip J., and Ebru Uzunoglu. Integrated communications in the postmodern era. Berlin: Springer, 2014.

Mindruta, Ruxandra. “How Airlines Can Use Social Listening to Boost Online Reputation.” Brandwatch, 2014. Web.

Footnotes

“Drones Temporarily Ground All Dubai Airport Flights,” ABS-CBN News, 2019. Web.
Philip J. Kitchen and Ebru Uzunoglu, Integrated communications in the postmodern era (Berlin: Springer), 2014, 79.
Ryan Erskine, “20 Online Reputation Statistics That Every Business Owner Needs To Know,” Forbes, 2017. Web.
Ruxandra Mindruta, “How Airlines Can Use Social Listening to Boost Online Reputation,” Brandwatch, 2014. Web.
Yong-Sook Kim and Jin-Woo Park, “A Study on the Impact of Online Word-of-Mouth for Airlines on Customer Behavior,” The Open Transportation Journal 11, no. 1 (2017), 87.

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