Qantas Airways Limited: Company Analysis

Introduction

Travel industries today emerge with the use of sophisticated technologies in order to operate more productively and apply strategic marketing in a more effective way. Previous writings showed that today’s travelers look for high-end travel services, information, products and what is worth their money. The surfacing of new products and services of tourism such as E- ticketing for Qantas is part of the marketing strategy which will largely benefit the customers, as well as the airline.

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Qantas Airways Limited is the major airline in Australia and is located in Sydney. It is the largest airline in Australia and the second oldest airline which is still operating. Recently, Qantas was voted as the third best airline worldwide through the researches. It was founded on the 16th of November, 1920 in Winton, Queensland. It has been one of the most cost-effective airlines in the global scene and possesses a good structure of marketing strategies which impacted profitable sales for the company (Business Wire, 2004).

Discussion

Quantas’ airline E-ticketing.

Why E-ticketing Quantas

Qantas emerges through the use of promotional activities over the net. It developed a website where in the airline’s products and services are posted on the website for the convenience of the travelers. The web connections of Qantas also offer a high-speed broadband internet in some of their domestic terminals.

Qantas use E-ticketing strategy because it gives an effective channel for developing a certain and sustainable electronic infrastructure for gathering information and doing business transactions for the travelers as well as the airline itself. Thus, this strategy carries out a one on one marketing and mass customization which the Qantas can understand the needs of the customers and apparently come up with a decision making that point out to the individual needs of the people and provide a tailor- made product and service. However, online travel developments add up to the business competition for the traditional business strategies. This means that other airlines are motivated to pattern the business structure with the emergence of newly developed technological techniques such as the internet marketing and e-ticketing in particular (Fesenmaier and Jeng, 2004). In addition to, the propensity to acquire products and services online importantly increase the income and overall profitability of the business.

Characteristics of E-Ticketing of Quantas

E-ticketing is one of the strategies of Qantas airlines where in it allows travelers to conveniently book online through the use of internet. Primarily, Qantas’ e- ticketing system offers a lot of benefits for the customers such as; this cannot be stolen or lost and they can do check-ins in a fast way. E-ticket also minimizes costs not like paper tickets because of its various breakdowns for expenses (Business Wire, 2004). Providing the customers the information they want from a product will be very convenient for them to scan the web pages and save time instead of picking up the phones or going to the place to know about the products and services of a firm or business. However, one actually does not really have to own a website in order to market products online, but it recommended creating one most especially for bigger and corporate firms such as an airline to have more efficiency in their marketing deals (Jones et al., 2003).

With the e-ticketing process, international flights are not available in Qantas. The check-in process is only available for Australian and New Zealand domestic Qantas and QantasLink flights. International flights should be made at the airport for the process of checking in.

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Online Resources

E-tickets are largely famous because of the added services that it provides. It is provided through the use of internet and new technologies in communication. The online of self-service kiosk check-ins, an early check-in, automated refunds and exchanges online and printing boarding passes at the kiosks of the airport and at other locations accessible for the passengers. The Information technology of Qantas is advanced and it comprise of various support systems throughout the business. Qantas is certainly involved with the development and application of technology such as providing information through the use of web and in fact booking flights over the internet. Through its alliance with large internet corporations such as IBM, Amadeus, Navitaire, SITA, Telstra, Satyam Computer Services and Tata Consultancy Services that performs significant roles for online operations of Qantas (Business Wire, 2004). Information technology is explicitly included in the airline’s business plan and function with the strategy to come up with the improvement of the business process and offerings for the customers (Laesser and Jaeger, 2001).

Check-in

Online check-in is accessible for Qantas and QantasLink Australian and New Zealand domestic bookings only. This is made within 24 hours and an hour before the departure time. This is provided mainly through the internet access where passengers can easily check in anywhere. At the airport, those travelers with carry-on bags can go directly for the flight while those with bags should drop by a bag counter. E-ticket also gives customers the chance to completely skip the check-in counters and directly go to the security if they o not have any luggage. The choice to check-in online is also available through other competitors. The passenger registers the confirmation number at the website of the airline and prints the boarding pass and this is usually allowed up to twenty-four hours before the time of departure.

Differentiation through Strategic Alliance

Last 18th of December, the government of New Zealand conditionally backed up the strategic alliance of Qantas with Air New Zealand. This is through the complete authorization with regard to the competition. The proposal for strategic alliance proposal was actually different from the agreement that was being finalized by the Government during the previous year which is to give a capital to Air New Zealand that gives an entitlement for ownership of about 82% of the company. However, the alliance depicts a share with the ownership of each company. It is believed that the strategic benefits to both airlines will make sure that the airlines are playing big roles in contributing for the growth of the economies. The alliance is viewed as an excellent example of a strategy and is seen to succeed. This will help assist the airlines in maintaining the independency in the industry that faces substantial and constant difficulties (The Treasury, 2003).

Oneworld Alliance

Oneworld alliance is the global alliance that is comprised of the ten best airlines in the world that are committed to give high-end services for the customers including Qantas. This is the third biggest alliances in the world which also aims at the standardization of frequent flier schemes. The members of this alliance have developed common specifications through the engineering and activities for the maintenance that apparently minimizes the costs by the process of sharing for parts and bulk buying. Accordingly, this is the only alliance that possesses a full network in Australia which is represented by Qantas (The Treasury, 2003).

Through this alliance, member airlines such as Qantas is given the privilege to grow with the shared costs from other airlines and acquire new developments to help improve the services and value for serving the customers.

How these competitors competing with Quantas of using E-ticketing

Qantas major competitors are listed as follows; Singapore Airlines, UAL or United Airlines Limited, and the Virgin Blue. The top competitors of Qantas also use e-ticket in their marketing strategy to develop a more systematic way of booking and checking-in.

International

Singapore airline and who they competing with Qantas

Singapore airlines widely use e-ticketing and uses a selling proposition of checking in anytime and any day. They also emerge in the use of e-ticketing as a marketing strategy to be bale to develop a more accessible way of settling the processes for flights.

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This airline has received a lot of awards for claiming the most awarded airline last year and topped the best quality of service for comfort and food in all classes. It has a share in the Virgin Atlantic and has reacted to the threats that are flaunted through their investment in Tiger airways. Thus, Singapore airlines compete with Qantas through the alliances that it got with Tiger airlines and Virgin Atlantic.

Emirates airline

Emirates airlines which are comprise of a huge flight destination also uses e-ticketing. Airline tickets can be booked through the internet with the same processes. Emirates has been responsive with the mandatory of IATA, thus they have developed in-house e-tickets that includes multifaceted products such as e-ticket for code-share flights and infants. The benefits of e-ticketing depicts on both consumer and airline through giving a large convenience, lesser time of processing, simple operations and quicker check-in.

It is noted that Qantas is one of Emirates’ rival for the growth in the future. It is said that the two are competing with the ability of performing high quality of services such as the maintaining a high level status.

Domestic

Virgin Blue airline

E-tickets are maintained with the reservations of Virgin system and alleviate the importance of a paper document that is used. Though, because of the immigration and the security requirements, e-ticket is implemented by the airline. With its brother airline, Virgin Atlantic, it also shares the common interests and possesses a plan that caters to the competition and rivalry with Qantas. It is considered as the Australia’s second biggest airline and has a Virgin branding. It also competes with its title as being honored with the exceptional customer service.

Tiger airline

The Tiger Airways Australia is a low cost airline that is known for its services in the domestic market of Australia. It is originally a part of the Singapore airlines and competes with Qantas. The coming arrival of Tiger Airways Australia in the market scene received reactions from its competitors mainly Qantas and Virgin Blue. The airline reveals cheap fares than other airlines and this becomes part of their strategy. It made the customers to be enticed with the airline and specifically done through the bonus system. Hence, Tiger Airwaves emerge with the use of low cost fares to compete with Qantas and use e-ticket for the customer’s convenience.

Capital cost and Government Regulations

Airlines use e-ticket as part of the strategy because of a more profitable result and thus this kind of technique is then required by the IATA. The institution for the program of using electronic ticketing has widely suggested the transition of paper ticketing into electronic ticketing through the airlines. Paper tickets should no longer be used and issued to the passengers in order to conclude for an industry savings. Indeed, this may greatly impact the savings of cots because airlines will no longer spend money for the papers and processes needed to undergo such issuance of paper tickets. And hence, this is also to avoid a lost ticket. The impact IATA’s mandatory results to the competition among major airlines and this requires a thorough strategic planning on how each will differ from other airlines. The competitors of Qantas also use the same system of e-ticket in order to respond to the developing trend of such strategy and respond to what the IATA mandated.

Conclusion

E-ticket strategy of Qantas airlines limited largely accounts for the emergence of new technology in the sense of internet marketing. It is viewed to be effective as it directly gives convenience for its travelers and customers with the use of high- end technology for booking and checking-in online. This enables customers to get the information that they need from through the use of online visits and reduce the chances of flight delays and check-in hassle in times of peak season especially.

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For the business’ view, e-ticket prevails to be an excellent technique in attracting customers and potential customers as they maintain their ad and marketing campaign over the internet through the use of their own website. This serves as an effective distribution channel for the airline and minimizes the costs of spending and risking for transactions in a personal marketing way (Pearce and Schott, 2005). However, this is also a good way of business strategy to provide customer relations and satisfy the valued customers through providing excellent customer service. Generally, the impact of the Qantas’ strategy considers the success of the airline as it still operates today and provides good quality of products and services for the customers as well as the potential customers. E-ticket indeed is a very efficient way of marketing and points out to the determination of revenues that Qantas Airlines Limited gets. The increased market share greatly considers the innovation factors such as technological advancement and improves its industrial relations in a global sense.

Competition among airlines with the use of e-ticket is determined to fall under the company’s strategy of how they develop the technique and relate with the needs of the customers. Thus, Qantas should maximize the efforts in determining the positive sides of the strategy and improve for better adjustments with regard to what convenience it may bring for the customers.

References

Business Wire. (2004). “Qantas and British Airways Add Interline E-Ticketing Within the Oneworld Alliance; Qantas Yet Again a Leader in the E-Ticket Revolution”. 2008. Web.

Barnett, M., and C. Standing (2001). “Repositioning Travel Agencies on the Internet.” Journal of Vacation Marketing, 7 (2), 143—152.

Fesenmaier, D.R., and J.M. Jeng (2004). “Assessing Structure in the Pleasure Trip Planning Process.” Tourism Analysis, 5 (1): 13—27.

Hopkins, L., N. Rodi, and A. Vincent (2002). “European Consumers as Travel Retail Customers.” In Proceedings of the TFWA World Exhibition Conference.

Jones, J.L., C.W. Scherer, and D.A. Scheufele (2003). “Exploring Motivations for Consumer Web use and Their Implications for E-Commerce.” Journal of Consumer Marketing, 20 (2): 90—108.

Laesser, Ch., and S. Jaeger (2001). “Tourism in the New Economy. ” In Tourism growth and global competition, edited by P. Keller and Th. Bieger. St. Gallen, Switzerland: AIEST: 39—84.

Pearce, D.G., and Ch. Schott (2005). “Tourism Distribution Channels: The Visitors Perspective.” Journal of Travel Research, 44(1): 50—63

The Treasury (2003). “Air New Zealand, Qantas, Strategic Alliance, Information Release”. 2008. Web.

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