The Service Operations Guidelines for Ultra Low-Cost Carrier in Thailand

Abstract

          The aims of this research are 1) to study the needs of an Ultra Low–Cost carrier in Thailand; 2) to propose service operations guidelines for Ultra Low–Cost carrier in Thailand. A qualitative research method was applied in this study. The sample group by purposive sampling was 400 Thai workers of different ages, who were not airlines employees and at present living in Thailand. The research instrument used in this research was a questionnaire to survey the needs of an Ultra Low–Cost carrier in Thailand. Percentage, means, and standard deviation were used to analyze data. Results showed that the majority of the group of sampling wanted to purchase the lowest airfares in the market. After comparing the airfares of different carriers, they wanted to find the Ultra Low–Cost carrier that has the best offer which makes them feel that it is worth the money they spent for the products and services especially if the airfares were obviously lower than what the other Low–Cost carriers offer. If the majority of sampling gets the lowest airfares, they will tend to purchase the add–on products and services as they needed, even though the price of the add–on products and services might be higher than other airlines and market prices. They admitted that they could accept the limitation of the services, facilities, and the service terms and conditions of the Ultra Low–Cost carrier even they were less flexible than other airlines. Proposed service operations guidelines are based according to the Marketing Mix’ 7Ps 1) Product and Service: As customers are price concerned and tend to purchase the add–on products and services even the price is higher than other airlines. Therefore, ultra low-cost airlines should offer the lowest airfares to customers. 2) Price: Customers compare the airfares and consider the offer of Ultra Low–Cost carrier which is obviously the lowest and makes them feel they make the right decision. 3) Place: Electronic distribution channels can be used as a major distribution channel as customers tend to arrange their trips and purchase the products and services through electronic devices by themselves. 4) Promotion: The Ultra Low–Cost carrier should advertise its products, services, promotions, and engage its customers through social media as customers tend to connect to social media more than the other types of media. 5) People: An Ultra Low–Cost carrier may hire fewer employees to provide the services. However, the self-service technologies should be utilized to provide the services to the customers, instead. 6) Physical Evidence: The Ultra Low–Cost carrier must be concerned about the highest aviation safety standards and maintain the standards according to the regulatory bodies. The Ultra Low–Cost carrier must ensure the on-time departure flight, present the airlines' image and position outstandingly different from a Low–Cost Carrier. 7) Process: The Ultra Low–Cost carrier may implement the technology in a core service process. However, the technology should be accessed from a computer, mobile device and service kiosks.