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AirAsia's IT Innovations for Success

The document discusses the implementation of various information technologies by AirAsia, including SMS for bookings, e-commerce platforms, self-check-in machines, and management systems to enhance operational efficiency and customer experience. It highlights the positive impact of these technologies on travelers, making booking more convenient and streamlined. Additionally, it compares AirAsia's technological advancements with those of Philippine Airlines, which is adopting the Amadeus Altéa Suite to improve passenger services and operational efficiency.

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0% found this document useful (0 votes)
52 views5 pages

AirAsia's IT Innovations for Success

The document discusses the implementation of various information technologies by AirAsia, including SMS for bookings, e-commerce platforms, self-check-in machines, and management systems to enhance operational efficiency and customer experience. It highlights the positive impact of these technologies on travelers, making booking more convenient and streamlined. Additionally, it compares AirAsia's technological advancements with those of Philippine Airlines, which is adopting the Amadeus Altéa Suite to improve passenger services and operational efficiency.

Uploaded by

ramosmikee112
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

STI College General

Santos, Inc. Jose Catolico


Sr. Avenue., Lagao
General Santos City, South Cotabato

In Partial Fulfillment Requirements of Bachelor of Science in Tourism


Management under the course of Applied Business Tools and Technologies in
Tourism

TASK PERFORMANCE:
Case Study of Air Asia: Information Technology Implementation for Business Success

Submitted by:
Mikee Carlo [Link]

Submitted to:
Glenna N. Arias, MBA-TRM, CTMP

Course Instructor
• What are the information technologies AirAsia, adapted based on the article?

- Based on the articles the AirAsia adapted SMS (Short Messaging Service) which AirAsia used
for booking and payment of airlines and allows guest to inquire about the lowest fare and allows
guest to first to know the new promos of the airlines, the AirAsia also maximize the use of e-
commerce and Information Technology as it launched Vista Gadget with Microsoft on 2007 which
enables their guest to have live travel information, they also launched self-check-in machines in 2008
and by maximizing e-commerce the AirAsia used it to sell their products such as e-ticketing and hotel
rooms, advertisement, they also adapt (YMS) Yield Management System which processes and
allocate the right type of capacity to the right kind of customer at the right price so as to maximize
revenue or yield, (CRS) Computer Reservation System which is used to store and retrieves
information and carry out transactions related to the information or booking of airline ticket, railway
ticket, hotel booking etc. and has made the

online booking and collecting information much easier, faster and effective and (ERP) Enterprise
Resources Planning system which is used to manage day-to-day business activities such as
accounting, procurement, project management, risk management and compliance, and supply chain
operations and lastly the AirAsia uses outsourcing in IT field to reduce the cost in IT system.

 As a traveler, will you be encouraged to book a flight with AirAsia, given their technological
advances? Briefly explain.

- As a traveler, yes we are convinced and encouraged to book a flight with AirAsia with
their technological advances. AirAsia has effectively created an atmosphere that
accelerates Information Communication Technology across the sector of community
through the services of their self-check in kiosk and the web check in facility. Travelers
can look forward to a strong, faster and hassle-free service. AirAsia’s internet booking
advances is a modern approach to booking, we are now living in a modern and
advanced world that is why most customers are convinced by the technology services
due to its advantages. In addition, most of the travelers are busy with their schedules
that they don’t have much time to go to travel agencies just to book for a flight, by
AirAsia’s development, it is helpful for travelers, convenient, and would definitely not
take much time. These will surely be useful for travelers like us to use this kind of
service- it is well tested by the organization and proven to be reliable.

 Did applying information technology impact AirAsia and its stakeholders?

- Business innovation is greatly aided by information technology. Information


technology aids in the processing, system, and delivery of data. Every business helps
to improve the quality and productivity of a firm through innovation. Information
technology has a significant impact on Air Asia and its stakeholders; it enhances the
process of all services and streamlines the company's workflow. Information
technology can aid in the recording and security of a company's data. It may also
improve the process of reaching consumers by employing SMS, websites, and
applications. This allows you to acquire information and stay up to date on Air Asia's
latest deals with less effort because you don't have to go to the establishment. It also
aids employee communication by providing them with access to internal and external
documents as well as connections to different departments within the organization
via a centralize portal. The time saved can be put to better use. It also helps to
minimize operating costs because information technology can not only bring
convenience to customers and save time, but it can also assist employees organize
and track their sources of information through back office operations such as
accounting and record keeping. Employees' physical labor will be decreased as a result
of the significant assistance and influence that information technology provides to the
Air Asia firm.
 Research one (1) company that utilizes information technology to elevate its business
strategies. Detail these technologies and their impact on the business.

- Philippine Airlines (PAL) has tapped Amadeus for the use of an information technology
(IT) system to better serve passengers from booking to boarding, in line with its goal
to become a five-star carrier by [Link] a statement, PAL said it signed an agreement
with Amadeus to adopt the full Amadeus Altéa Suite, a complete passenger service
system which would enable the carrier to streamline
and improve all core passenger processes including reservation, inventory, departure control, and
flight management. PAL expects to enable customers to enjoy a smoother experience from
booking to boarding through the use of the Amadeus Altéa Suite. The Amadeus Altéa Suite is a
next-generation airline IT system which will enable PAL to deliver more consistent and
personalized customer service, develop new revenue streams, and improve operational efficiency.
Among the tangible benefits of using the system are faster and simpler check-in for travelers, the
ability to re-accommodate disrupted passengers in a matter of seconds, improved on-time
performance, and consistent, automatic application of customer preferences at every touch point.
Based on our research, Jaime Bautista the president of Philippines airlines said, PAL
should offer a passenger experience that is truly representative of the Philippines and
a source of pride for the people. Philippines Airlines are expanding and modernizing
the fleet, opening new routes, but most importantly, sharpening the customer service
excellence. PAL need technology that will capably support to ambitions, but also a
partner that shares to vision. Accordingly, after a rigorous evaluation process, they
have chosen to partner with Amadeus, their technology and their people.
PAL need to stand side by side with the world's best aircrafts. they are massively
pleased with the four-star rating; however, it has simply propelled to work significantly
harder. Buddy mission is to address the best of the Philippines, and the best of the
Filipinos to the world. So the following objective is to get that fifth star by 2020.
Notwithstanding further developed traveler experience, PAL additionally expects the
utilization of the IT framework to help its plan to join a carrier collusion. More than
two-thirds of Star Alliance airlines, three-quarters of one world airlines and half of
Skyteam airlines use Altéa. Through Altéa, there is better integration between partner
airlines with real-time sharing of availability, fares, as well as customer and booking
information to deliver a harmonized customer experience across the alliance.
Cyril Tetas an executive vice president to Amadeus said, PAL’s business strategy is end
route to further propel it into the future of travel, where its customers need it to be,
and extremely proud to walk that path with the airline. They are committed to PAL’s
success in the long-term, and look forward to delivering continual collaboration to
ensure today’s agreement matches the expectations of its travelers.
-

Common questions

Powered by AI

The Amadeus Altéa Suite is key to Philippine Airlines' strategy to enhance customer service and operational efficiency. It streamlines core processes, from reservation to flight management, offering smoother booking experiences and allowing rapid passenger re-accommodation during disruptions. This suite supports PAL's goals of becoming a five-star carrier by providing consistent customer service and enabling better integration with partner airlines, thereby improving the overall travel experience. These enhancements are critical for PAL to maintain a competitive edge and align with their strategic growth and service excellence objectives. This technology's implementation reflects PAL's commitment to elevating its service standards and joining an airline alliance .

Information technology, through tools like the Amadeus Altéa Suite, significantly enhances PAL's customer service by ensuring swift transaction processes, personalized service, and reliable management of flights and bookings. This IT strategy supports PAL's ambition to become a five-star airline by providing a distinguished travel experience and expanding operational capacity via alignment with strategic objectives. These technological advancements allow PAL to deliver consistent service, quickly adapt to changes, and foster customer loyalty, aligning IT with broader business strategies to achieve growth and customer satisfaction .

Advancements in AirAsia’s IT have strengthened relationships with stakeholders by enhancing service delivery and operational transparency. Information technologies streamline communications between the company and its customers, making it easier to access services and promotions with minimal effort. Employees benefit from a centralized portal that improves internal communication and document access, fostering a more cohesive organizational structure. These improvements facilitate better customer experiences and ensure operational efficiency, thereby building trust and satisfaction among stakeholders .

The implementation of self-check-in systems aids AirAsia's strategy by enhancing customer convenience, reducing queues, and cutting operational costs associated with traditional check-in counters. This aligns with their commitment to providing a hassle-free and efficient travel experience. By leveraging these systems, AirAsia can allocate resources more efficiently, focus on value-added services, and improve customer satisfaction. These advancements contribute to a streamlined airline operation, bolster brand reputation, and strengthen competitive positioning in the travel industry .

Information technology has significantly reduced costs for AirAsia by enabling various efficiencies. IT systems, such as outsourcing, decrease expenditure on IT infrastructure by utilizing third-party expertise. Technologies like e-commerce minimize the need for physical transactions, thus cutting operational expenses. Self-service tools like check-in machines reduce labor costs and enhance efficiency. Furthermore, the ERP system helps streamline accounting and supply chain processes, resulting in time savings and lower administrative costs. These IT solutions contribute to reduced staffing needs and improved process efficiency, thus lowering overall costs .

AirAsia might encounter challenges such as high maintenance costs, cybersecurity threats, and the need for continuous updates to its IT systems to keep pace with technological changes. As technology evolves, integrating new systems with existing infrastructure can be complex and costly. Additionally, maintaining data security and privacy amid increasing cyber threats poses significant risks. Keeping staff trained and adaptable to new IT practices also requires ongoing investment, which could strain resources. Therefore, balancing innovation with these operational challenges is critical for sustaining IT benefits .

AirAsia has integrated various information technologies to streamline its operations and improve customer experiences. They adopted SMS for booking and payments, allowing customers to inquire about fares and receive updates on promotions. They launched self-check-in machines and employed e-commerce for services like e-ticketing and advertising. Advanced systems like the Yield Management System (YMS), Computer Reservation System (CRS), and Enterprise Resource Planning (ERP) were utilized to manage capacities, store and retrieve booking information, and oversee day-to-day business activities. These technologies enhanced AirAsia's operational efficiency and customer service, cutting costs and simplifying transactions .

AirAsia employs the Yield Management System (YMS) to optimize its capacity management and revenue opportunities by dynamically adjusting prices and availability according to demand. This IT system ensures that the right type of capacity is allocated to the suitable customer segment at optimal pricing, maximizing revenue. The Computer Reservation System (CRS) augments this strategy by efficiently handling bookings and data transactions, ensuring that capacity is flexibly managed and occupancy rates are maximized without compromising on customer service .

By integrating with airline alliances through the Amadeus Altéa Suite, Philippine Airlines seeks to enhance service quality and operational sync with alliance partners. This integration offers real-time sharing of availability, fares, and passenger information, providing a unified customer experience across networks. It strengthens PAL's market position by offering customers access to a wide range of destinations and coordinated service standards, thus increasing competitiveness and appeal. Furthermore, technological alignment facilitates smooth handling of disruptions and enhances overall operational efficiencies .

Philippine Airlines adopted the Amadeus Altéa Suite to achieve several strategic objectives: improving customer service consistency and personalization, enhancing operational efficiency, and positioning itself as a five-star carrier by 2020. This suite modernizes passenger services and supports PAL’s ambition to join a global airline alliance by providing real-time partner integration. These strategic moves aim to foster brand loyalty, penetrate new markets, and enhance the customer experience, ultimately establishing PAL as a leading carrier representative of Philippine excellence in aviation .

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