Case Study of Emirates Skywards

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Table of Contents

Introduction
Internal Marketing Environment
External Marketing Environment
Unmet Needs
Evaluation of Relationships and Processes
Marketing Metrics
Conclusions and Recommendations
Reference List

Introduction

Being one of the global icons of the aviation industry, Emirates Airlines must embrace the accommodation of future trends that accompany this industry. One of the profitable ventures that the aviation industry is embracing is incorporating theme parks into their offering. Such theme parks include Dubai Parks and Resorts and Disneyland (Codd, 2020). This is a timely move for this industry due to the approaching summer vacations where families look for experience-based holidays. These are normal families with children below the age of 18, which make up the majority of the world’s population (Abdurakhmanova, 2019). The incorporation of theme parks by the airline does not only give families globally an easier time when organizing vacations but is likely to be very profitable for the airline.

This paper aims at providing a detailed report on the factors that surround the implementation of this service into the airline, an evaluation of the processes involved, the marketing metrics, and recommendations surrounding this idea. The Emirates Holidays and Dnata Travel, which are under the Emirates Group, can help the company in getting offer partnerships with the Theme parks that mostly interest the public (Emirates Financial Commentary, 2017). Successful implementation of this service will serve many families, especially around summertime when the children have closed schools.

Internal Marketing Environment

For Emirates skywards to implement the service of theme parks into its offering, the company must investigate its internal marketing environment before making any changes. This investigation involves examining the customers of the emirates and their interests in productivity to be achieved (Hollebeek, 2019). The company must do a case study on how many of their customers are willing to pay extra for this service and how much extra they are willing to pay. This helps the company provide quality services to existing customers, which may lead to the attraction of new customers (Indounas, 2018). However, the company may only need to pay more emphasis on this service when the summer season is approaching and concentrate more on the other services they offer during the off-peak season.

The company will need to consider its employees before implementing this service. As of 2020, Emirates Airline had more than 20,000 employees, and this number is set to grow as the company grows (Alanezi and Zahrani, 2020). These employees are given different allowances and incentives according to the nature of their work (Li and Cui, 2018). The addition of theme parks into the Emirate’s offering will force the company to hire additional personnel to ensure that all operations in that sector run smoothly.

Emirates will also have to consider its investment in various sectors of the tourism industry. Emirates has a market share of 39%, but with different investors entering the market, this may be a threat (Sharafi, 2022, pp. 48). The company will have to increase its investments in various tourism industry sectors, particularly in profitable theme parks (Kalugina, 2020). This joint venture will help in smooth operations between the companies once a merger is formed.

Emirates would have to alter its distribution channels and suppliers to suit the new services they offer. The airline has an application that allows customers to buy tickets from a nearby franchise or online (Destia and Umiyati, 2019). This service must be changed so that customers can choose whether to access the theme park service or not and pay for the recurrent costs as they make their reservations.

External Marketing Environment

Demographic and natural forces are great factors contributing to the success of this idea. Certain destinations are greatly affected by changes in seasons at different times of the year (Shaaba et al., 2018). The airline would have to advise their customers on the best destinations to visit during different seasons (Kamarudeen and Sundarakani, 2019). However, during the peak seasons, such as summer, the airline should present all options to their customers and allow them to choose.

The Emirates needs to consider key economic factors are interest and exchange rates, inflation, taxes, and demand/supply. The company needs to start offering the theme park service when the economic factors are favorable for the aviation industry to avoid extra spending (Camilleri, 2018). The increase in revenue over the years is advantageous for the airline as it provides room for development which may be done through the provision of this service.

Technological factors play a key role in the operation of the airline and the services it offers. A good example is using a mobile application for customers to buy tickets online (Bakar et al., 2020). The airline will have to alter its technological facilities to accommodate the new service to be offered. The organization would need to ensure that the political situation is stable before diving into such an important venture (Kiraci, 2019). Political instability during the implementation of the theme park service might lead to more losses being experienced despite it being a full-proof idea.

Unmet Needs

Travelers base their purchasing decisions more on needs than on prices. Identifying customers’ unmet needs shows customers that the airline cares and is listening (Choi et al., 2019). Many parents would like to spend summer vacations with their children but have a problem choosing an appropriate travel destination (Stamolampros and Korfiatis, 2019). Even if they find an appropriate destination, traveling there becomes an issue as it may require various means to arrive, which is tiresome for people with children (Wojtynska, 2020). Identification of this problem by the airline leads to offering the service of direct travel to appropriate destinations for family vacations at an extra cost (Lokulyanage and Dhammearatchi, 2020). This way, the Emirates airline has become the most preferred airline by families who wish to take family vacations.

Evaluation of Relationships and Processes

The inclusion of activities that generate value in the form of products and services is at the heart of an operational plan. The service of incorporation of theme parks holiday facilities into the services offered by the airline is bound to create value in the industry (Warda, 2019). This company focuses on the quality of services offered and satisfaction with these services (Krzymowski, 2020). Decision-making in a strategic manner helps the operations management of the system achieve timely orders hence keeping their customers happy and satisfied (Buehring and Bishop, 2020). The company’s performance before and after the service should then be measured in terms of effectiveness in inventory management, order fulfillment, and product planning hence tracking any uncertainty in operations (Mimovic, 2018). Emirates Airlines employs several operational measures to guarantee the success of this service, including:

Scheduling long flights to reduce costs associated with frequent landings.
Incorporating the use of wide-bodied aircraft to charge less for a seat per mile (Minwoo et al., 2019).
Installation of modern forms of technology in the aircrafts to provide family-friendly entertainment and ease the work of booking, carrying luggage, and boarding services (Zhang, 2018).
Using aircrafts with lower average age, decreasing maintenance costs, enhancing fuel economy, and enticing more passengers to fly with the company.

These operational strategies would lead to the success of service operations by making the airline stand out from companies that pose stiff competition to them and help transform the airline’s competency (Gallego, 2018). Following these operational services strictly would increase the revenues realized (Swidan and Merkert, 2019). The company should make certain that these services are properly welcomed by its clients all around the world.

Competitive Strategy

In order for a company to be successful, it must have a distinct edge over its competitors in the products and services it provides. The advantage of partnering with theme parks is that it is a service that many airlines do not provide despite being very beneficial for families who love to travel together (Milman and Tasci, 2022). Providing such a service helps the airline maintain a significant market share in the airlines.

Marketing Metrics

Marketing metrics are a good way to track the performance of a new service being offered and are important for measuring its effectiveness for use by other similar companies. A good way of measuring the marketing metrics is by conducting a case study and analyzing the findings through supply chain strategy, supply chain risk, strategical backlogs, and the supply chain process map (Uzma, 2018). A noticeable success rate among these factors would prove the profitability that adding theme parks into the services the airline offers would bring to the company hence giving the go-ahead for the implementation.

Supply Chain Strategy

The facility driver of this new project had a responsive strategy. This is because the facilities that accompany this service are closely associated with the airline’s services, and the destinations the company deals with do not have to change that much (Thomke, 2020). They all rotate around the tourism industry; hence these services complement each other. The inventory driver had a highly responsive strategy (Brettel et al., 2018). The inventory plays an important role since regular inspection is needed for smooth operations to occur.

Transportation, sourcing, pricing, and information systems drivers had hybrid strategies. Transportation involves the smooth movement of families and their luggage to their required destinations (Button, 2020). Focusing on the comfort of the families during traveling, especially for families with younger children, paves the way for efficiency (Boer, 2018). Sourcing would require the company to prioritize the quality of the service over cost, which may lead to hiring more labor force to concentrate on the proper provision of the traveling service (Zabalawi and Jammal, 2021). The pricing should be considered though it may be higher than those who are accessing the regular services. Moreover, it may be higher for those flying in business and first-class due to luxury than economy class (Shaaban, Muley, and Elnashar, 2018). The Emirates should use IT systems that are more advanced for activities such as reservations systems and inventory tracking for efficiency.

Supply Chain Risk

Several disruptions may accompany the provision of theme park services to its customers. Such disruptions may be due to the weather conditions in various parts of the world, such as storms which may cause the cancellation of flights to that area. An area experiencing a downpour would not be convenient for a holiday destination (Khatib et al., 2021). However, this may not be an issue as natural calamities can be foreseen. Political situations cannot be foreseen and may become a serious threat to the business as travel for leisure would reduce by a large percentage or even stop during the period of instability.

Delays are a possible risk as inflexibility in one supply source greatly affects operations. It is likely to occur as the airline would need to partner with theme parks in their areas of operation, which may be difficult to control as they are under different management (Attaran, 2019). Moreover, fluctuating fuel prices are a possible risk as they significantly affect the operational cost (Stamolampros, 2022). This may make it difficult for the airline to diversify its services.

IT systems that control Emirates Skywards’ operations may malfunction, hence causing a disruption. A constant breakdown in the Air Traffic Control Centre is likely to greatly affect the operations of several airlines in a day. As a result, this may cause a delay and disruption of services (Harry and Vivek, 2021). A breakdown of the connected IT systems may lead to huge financial losses for the airline.

Strategical Backlogs

Through constant innovation, Emirates Airline serves as a fantastic example for its rivals on how to enhance their services. The company’s success is mainly attributed to the fact that it is never reluctant to accept changes required for the growth of the company. Coming up with new strategies such as the one highlighted in this paper will help the company cope well with airline industry changes.

Supply Chain Process Map

Emirates should ensure a certain section of their suppliers in in-flight systems (electronic and entertainment systems), in-flight materials, and food services. They should all provide quality and modern services convenient for travelers, especially families. The company should ensure that the manufacturers that serve it are trusted, consistent, and provide quality services. These manufacturers are those in House Research Centre, Engineering Centre, flight scheduling systems, computer reservations, training institutes, and lounges (Fitzgerald, 2021). Retail and marketing are an important part of the process. This sector is responsible for the sale of tickets, and they provide the option of online booking through the website. Travel agencies and other websites sell Emirates tickets in different countries and provide different classes of these tickets (Alanezi and Zahrani, 2020). The marketing management of the airline should have skilled professionals in the areas of brand management to promote the services offered by the airline.

Conclusions and Recommendations

Achieving a good fit in the service operations of the business plays a key role in overcoming financial challenges that may accompany the issuing of a new service. Analyzing the findings of Emirates Skyward proves that incorporating a new service into its operations is likely to be a profitable venture. The service of travel to theme parks targets families and aims to make travel easier and more comfortable for them. If Emirates Airlines follows the supply chain process where execution is done in response to the order received from the customer, the profits realized are likely to be boosted.

Emirates has proved to be a tough competitor to other airlines as a result of its low cost and high output. The new service will be a step in the right direction for the firm, which expects tremendous growth in the years to come. Emirates should then concentrate on offering the theme park service by using modern aviation technologies to make the necessary changes. Doing so is likely to improve the company’s economic performance and lead to its growth in terms of infrastructure and the population it attracts.

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