Diploma Thesis from the year 2002 in the subject Business economics -
Business Management, Corporate Governance, grade: 1,3 (A), ( Middlesex
University in London ), language: English, abstract: This report will
demonstrate the importance of Loyalty Management in the competitive
environment of the airline industry and will show that a successful
approach to Loyalty Management consists of three different, interlinked
aspects. These three ′pillars′ are Customer Service, Frequent Flyer
Programs, and Complaint Management; their interdependence will be
analysed in depth, with special attention given to the perceived
importance of Frequent Flyer Programs. Findings show that customers do
indeed perceive these issues as vital with regards to their loyalty
towards a particular airline. It was found that Customer Service can be
regarded as the foundation for Loyalty Management; it can help an
airline to gain competitive advantage by setting it apart from its
competitors. Frequent Flyer Programs, if implemented and run properly,
can provide the customer with added value. As such, they compliment
Customer Service and can help to increase overall loyalty. Additionally,
Complaint Management was found to be gaining importance among airlines.
The number of complaints was shown to be rising gradually, stressing the
growing significance of efficient Complaint Management and its strong
after-effect on customer loyalty.
