Scandinavian Airlines Group 6: Kevin, Ika, Scott, Ryan

Vision: To be Valued for Excellence by all stakeholders Mission: We provide Best Value for Time and Money to Nordic Travelers whatever purpose of their journey Promise: We promise to minimize your travel time and maximize the value of the time spend with us

1984 – SAS wins “Airline of the Year” award from Air Transport World 1946 – DDL, DNL, and SILA formed SAS to operate intercontinental Services SAS History 1957 – SAS is the first airline to offer "round the world service over the North Pole.“ 1997 – STAR Alliance was founded

1984 – SAS wins “Airline of the Year” award from Air Transport World 1946 – DDL, DNL, and SILA formed SAS to operate intercontinental Services SAS History 1957 – SAS is the first airline to offer "round the world service over the North Pole.“ 1997 – STAR Alliance was founded 2011 – SAS launched “4 Excellence” Strategy

The SAS Strategy Platform 4 Excellence

Fleet size: 136 Number of employees: 12,833 employees Passengers per year: 27.2 million passenger Sales Revenue (in US$): $5.68 billion Number of scheduled destinations: 128 Daily departures: 667

SAS Passenger

Scandinavian Airlines Fleet:

SAS Northern Europe's leading airline Offers a wide range of innovative travel solutions

 Wi-fi Internet (a shared connection of 12 Mbps)  GSM – Sends/Receives SMS/MMS, Receives/Makes phone call  Global System for Mobile Communications, digital cellular networks SAS in Technology

Environmentally Responsible

Europe's most punctual airline 2011, 2010, 2009 by FlightStats. o 352,163 flights – 88.9% on time rate) o departure within 15 min World’s most punctual airline in July & Aug of 2011 that SAS Group’s airline companies are the only ones in the world with both ISO and EMAS environmental certification. Awards:

1. Describe the overall customer experience for an airline. How do you think customer service for an airline would compare with other service industries such as retail, healthcare and express delivery services?

Service Factory Time Perishable Low degree of labor intensity Low interaction and customization It would be similar to healthcare, retail, and express delivery services in that they all have to meet the minimum customer expectations to remain viable. The airline industry differs from the other industries in that the customer interactions are less factory-like with Healthcare, retail, and express delivery services.

2. Mr. Jan Carlzon, the former President and CEO of Scandinavian Airlines (SAS) popularized the term “moment of truth.” Provide 5 examples of a “moment of truth” that could enhance SAS’s reputation for superior quality?

When a customer is: Greeted by the gate agent Receiving their baggage after a flight Goes through security Checking in Waiting for a flight On the flight

3. What is SAS doing to become a forerunner in the development of the airline industry?

SAS is allowing the customer to design their own personal experience. Study hours of video tape to monitor customer behaviors and adapt their processes. Use the information Kiosks to better design the customer experience and develop a means of open communication with the customer.

4. a. What are basic customer needs that SAS has identified? b. Why does SAS believe these have to be satisfied before moving up the pyramid? c. What does SAS have to focus on to become more competitive? d. What must SAS do in order to delight their customers?

a. Basic customer needs: The customer needs are those expected by the customer. Examples: Safe, trouble free flight Get customers there safely Get customers there on time b. SAS believes these have to be satisfied because: They believe that the fundamental customer needs serves as a basis for establishing an understanding of the customers. c. SAS has to focus on this to be more competitive: Performance needs Examples: Number of flights Arm and leg room d. SAS needs to satisfy their customer’s delight requirements by working on: Exciting Requirements Examples: Tailoring travel process to each individual

5. Explain the travel experience as a service process. What are the 5 phases of the travel experience?

Service Factory Time Perishable Low degree of labor intensity Low interaction and customization Includes all the parts of the interaction between the customers and SAS: 1.Check In 2.Lounge 3.Gate 4.In-Flight 5.Baggage Claim

6. What three main areas of innovation did SAS chose to prioritize, based on the findings from the study? Why did they focus on these three areas? Provide an example within one of the three areas and discuss its benefits

“SAS focused on these 3 areas to achieve as profound an impact as possible on the customer’s overall impressions on the travel experience.” In Flight Services Ground Services Information Services Example: Information Kiosks provide up to date FAQ’s, relevant flight information, and customer contact preferences.

How does SAS’s customer service practice differ from the rest of the industry?

SAS studied countless hours of footage of their customers to find out what is important to them. This was a new technique when the case was written in This is an example of how they continue it today.

What would you do to improve SAS’s current customer service practices?

SAS should consider utilizing the experience that well traveled customers have by setting them up in separate areas or having express lanes dedicated to them so that employees may better spend time assisting customers that are not used to the procedures.

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