A 2020 view on catering, personalization and unbundling on the European network

Abstract

As a result of rising operational costs, economic uncertainties and fierce competition KLM is pressurized on their European network. The ‘all-fits-one’ approach KLM precedes is no longer viable seen from an economic and customer point of view. Customer demand increased value for money, while KLM tries to further optimize its current way of thinking. Inflight catering is one of the services to illustrate the only option is either to take or not to take the product. Customers are critical, expect a personal approach and demand high value for money. Personalization in service providing is a growing trend in other industries, but has so far not been applied on large scale in the aviation industry. Great opportunity lies ahead to differentiate with. Framed upon a profound study including an internal and external analysis, staff and pax interviews, process analysis, and a creative session, ten problem factors were found illustrating the overall problem to be larger than catering alone. The actual problem is framed in both customer perception and KLM’s service approach, illustrating the ‘all-fits-one’ model to be obsolete for the masses of short haul travellers. The problem factors supporting this statement were transformed in a solution ground named the future trilogy. The future trilogy holds three pillars entailing; the experience economy, choice and control and corporate social responsibility, supporting a future vision on how to direct the trilogy. ‘’KLM SHOULD GIVE MEANING TO THEIR VALUE PROPOSITION BY ALLOWING CUSTOMERS TO HAVE CHOICE IN SERVICE PREFERENCES AND CONTROL ON THEIR TRAVEL, RESULTING IN A TRANSPARENT VALUE PROPOSITION A BETTER BRAND EXPERIENCE AND A REDUCTION OF OPERATIONAL WASTE’’ All customers travelling have different preferences. KLM should therefore enable customers to allow what includes the ticket price, be it a sandwich, a paper or luggage. A new model is suggested that includes issuing award-miles in the ticket price to purchase services with, in order to freeform a customer’s travel. The ‘virtual’ award-miles issued during booking stage can either be used to purchase services with (luggage, upgrades, catering, etc.) and or be stored for later travels with KLM. This model allows customers to freeform their travel, as it turn the Flying Blue program into a loyalty program instead of a frequent flyer program. The model enables the ending of KLM’s ‘all-fits-one’ service inefficient model, as well embracing unbundling in customer participating manner. The implementation of the model will change the second stage of the booking process, allowing customers to shape their service preferences. Five profile suggestions are made to display the function of the adapted booking process. Three profiles; shape new travel, previous travel and my preferred refer to the customer ability to determine what they want themselves. The other two suggested profiles; the green traveller and royal treatment are used to boost ancillary sales or to stimulate certain customer behaviour. Based upon on the model the overall benefits are displayed, for both customer and company, directing to a global overview of projects to be initiated enabling the model to be functioning. Subsequently this is framed into a roadmap, leading to 2020.