IT is one of the major enablers of AirAsia's successful low priced business design AirAsia had confirmed the strategic value of information and communications technology (ICT) in enhancing competitiveness with a very high most its passengers making their bookings online. AirAsia was also the world's first airline to allow SMS (brief messaging service) reservation and repayment of airline tickets. In 2003, AirAsia proud to be the first airline on earth to provide flight arranging and payment via Short Messaging Service (Text) and make their guests flight arranging anytime and from anywhere a day and 7 days a week. Aside from making a Flight Scheduling, AirAsia guests can also make enquiry on least expensive fare, departure or arrival information and city rules. All of this is offered by a normal cost of RM0. 15 cents per Text message and without the additional charges. AirAsia friends can also register to be the first ever to know of new promotional fares as soon as they are made available. AirAsia was also the world's first airline to allow SMS (brief messaging service) scheduling and payment of airline tickets.
AirAsia move from the traditional business into modern business by implementing E-commerce and maximize the info technology (IT) in their business. AirAsia boost their e-commerce business with starting of AirAsia Vista Gizmo with Microsoft on 31 January 2007. This gadget enables customers to keep update with live travel information such as vacation spots, itineraries and rates and latest advertising. AirAsia enhance their service and maintain their low priced strategy by increasing use of technology and new technology. They launched self check-in machines on February 2009, the technology introduce to eliminate long check-in queues in counter and minimize the manpower.
Traditionally in airline industry, most air tickets were purchase through travel agent or call centers. By 2003, the numbers of society in Malaysia running a personal computer has been increase to 18%, this technology allow the development of low cost providers (LCC).
The first successful and pioneered LCC was AirAsia in asia. It is also the first air travel in the region to put into practice online reservation and completely ticketless travel. LCC pursued straightforwardness, efficiency, production and high utilization of assets to provide low fares. E-commerce helps LCC to simplify the process of purchase by online reservation and issuing of e-ticket, as such no middleman is required in this technique. In terms of efficiency, LCC are able to perform real-time transaction to a global customer every day and night every day and seven days a week. The info provide in online booking incorporate with the right software will lessen the business administration process to stored and categorized automatically, update instantly and accessed on demand. That is whereby LCC save cost on manpower to data entrance this information. LCC also can fully make use of the sources of information such as booking couch, customer repository to plan in advance their business strategy; this will help to minimize the vacant couch and maximizes the sales of couch.
The functional environment of your air travel industry is sophisticated. Large network in the source chain, constant daily operation, and many external uncontrollable variables such as the weather and government polices become factors affecting airlines' performance. Given these complexities, functional planning and arranging across the resource chain are important factors determining the success of any air travel. Therefore, AirAsia apply APS system to optimises its resource string management. It works as the brain of supply string activities by gearing activities in relation with customers and suppliers requirements. APS system clusters and classifies customer purchases, forecasts future fulfilment requirements, assessments resources availableness and units order priorities. Additionally, APS system helps AirAsia in gaining competitive gain as it provides visibility across supply string. APS system also improve AirAsia's tactical and functional performances particularly in the inbound and functional activities
AirAsia have better connection across the supply chain in terms of cross-functional scheduling and planning with suppliers and customers. APS system ensure each get together works collectively in integration. Connections among techniques and their activities become apparent. Furthermore, this shorten scheduling pattern, lead time, and maintenance pattern leading to upgraded efficiency. Beside that, APS system enables AirAsia to get better understanding and control of the interrelationship between different parameters constituting total performance. Complexity in calculating interrelationships can be manipulated by deploying an APS in an effective way. An example may be the aftereffect of a delay scheduled to air-port facilities or other factors such as bad weather condition. APS can help plan beforehand for such situations so that proper actions can be designed to contain such situations. Besides that, The APS system will analyse the soaring routes offering optimal earnings for AirAsia given constraints such as geographical, short haul flights commitment i. e. AirAsia focused on serve flights no longer than four time thus it only buys or leases small aeroplanes e. g. Boeing 737 and AirBus 320. Optimal traveling route is imperative in deciding new destinations for AirAsia to serve. Aeroplanes maintenance quality is critical in flight industry. In AirAsia case, it is even more critical since AirAsia utilizes its aircraft fleet more than standard airlines. The visibility across the value chain given by APS provides better collaboration between AirAsia and airplane manufacturers and other suppliers. It'll reduce over-haul time thus it'll enable AirAsia to improve its fleets utilisation. Using APS system, AirAsia can save large proportion of its maintenance cost. Maintenance cost contributes about 9% to the overall cost of an flight.
The excellent utilization of IT have immediately contributed to their promotional activities such as email notifications and desktop widget that was jointly developed with Microsoft for new offers, brand building exercise with over 3 million hits monthly and on the most widely surfed booking engines on earth as well keep the cost low by enabling direct purchase of tickets by consumer thus conserving on airline agent fees.
AirAsia investment in technology to develop the business across all fronts is bearing berry. ICT has enabled them to offer leading edge products and also to continue steadily to offer quality service with their constantly expanding traveler bottom part. AirAsia's use of ICT is first rate in the airline industry. All areas with their business are backed by ICT, that allows these to be fast and productive in servicing our guests, who use their technological tools to amongst others check air travel schedules, book seating, pre-order meals and purchase holiday packages. ICT has been instrumental in the success of AirAsia and over 80 percent of AirAsia's trip bookings are done via the internet.
Other than that, AirAsia also utilize mobile technology to disseminate information with their friends via handheld devices. Guests could look forward to further convenience through the services of their personal check-in kiosks and web check-in service and Air Asia also efficiently created a host that accelerates the all-pervasive use of ICT across all sections of the community. AirAsia has almost practically overnight in commercial terms, demonstrated the proper value of ICT to improve the competitiveness of businesses, promoted online scheduling, and helped dispel the myth that individuals are afraid to look online because of network security doubts.
Beside that, AirAsia online booking system resides over a secure server that encrypts customer purchase information using Secure Socket Layers. They use all affordable endeavors to protect private information from loss, misuse and alteration. Only certified employees, who are under appropriate confidentiality obligations will have access to their customer private information. However, customer will be accountable for any end user ID or password that is used on site.
Apart from that, A cookie is a bit of data stored on the user's hard drive filled with information about an individual. Usage of a cookie is by no means associated with any in person identifiable information while on our site. This enables AirAsia system to recognize their customer browser and remember passenger titles and billing information so that customer won't have to retype it. The address and passenger information is preserved to their cusomer hard drive by the AirAsia web server. These details can only just be accessed by the AirAsia web server but Internet surfers and others cannot access this information. For security reasons, customer charge card quantity is not saved. so customer must type the visa or mastercard number each time they purchase travel using Ticketless Arranging Online. Beside, AirAsia also utilize cookies to trail the potency of online advertising. These details is treated confidentially and can not be distributed to anyone outside of AirAsia Bhd. AirAsia will only use this information to make up to date decisions in regards to to the purchase of internet marketing. This allows AirAsia to maintain low costs and low fares for his or her customers.
Integration
From now aday, the Information technology is totally use by the social. Airasia know that E-commerce is becoming a small business tools. Airasia utilize this to sell thier products(e-ticketing, hotel room and etc), advertise, bypass intermediaries and so on. AirAsia was implemeting E-commerce and maximized thier information technology usage to make the success and effieciecy in thier company and make possible low priced arrier in thier business. Airasia has put into action current IT such as Produce Management System(YMS), Computer Booking System(CRS), and venture resources planning(ERP) system.
Airasia has use the Yield management System as earnings management system it understand, anticipates and reacts to the tendencies of the client to maximize revenues for the business. In this technique, Airasia take into account the operating cost and assists AirAsia to optimizes price and allocate capacity to maximize expected earnings. Airasia use YMS to optimization the seats to maximum revenue. The price of the solution can be based on the available of the seats at various time. A reservation done at a later time will be costed more than the main one done earlier(for the same seats). This may make the aircraft when flight in once can be full chair, prevent any empty car seats at the aircraft. Predicated on the economy theory, when the chairs are the fixed cost, for minimize the preset cost, most effective way is to increase the seats, this can bring earnings maximization. The second is the way, by adjusting charges for routes/destinations which have an increased demand when compared to others). The effective methods however is to incorporate the car seats and routes for all flights, this may lead both of the chair and the road are effeectively charged for all the flight. By using this produce management system, AirAsia can understand the habit of their customer and offering the success and effiency strategy and can also allocate capacity to maximize the expected earnings.
Airasia applied Customer Reservation System(CRS), it is an integrated web-based reservation and inventory system. It ncludes internet;call center, airport departure control and much more. It is a direct sales engine that effectively prevent the middleman(travel agent) and the sales commision that require to paid to them. By using this system, Airasia can cut thier cost and eradicates the middleman(travel agent) and the sales commision to pay them. Besides that, this system are very customer frinedly because the whole customer if want to buy or make a reservation, the customer are no need like the original way, call go to have reservation the chairs or through the company, the the airline company will deliver the ticket to your dwelling. It can be all done by online, the client just need to online to make reservation and payment, print the ticket, when go to the terminal simply need to show out the printing ticket to the counter and also your IC(identity card) or passport. This also because of why the flight solution are cheapest than other flight company because the company have direct romance with the customer with no intervention middleman. Airasia can save the cost and transfer the power to thier customer.
Airasia also implementation of venture resources system(ERP) to maximized IT to meet up with the most reasonably priced during thier business activities. ERP is the machine that integrate thorough software to make the IT system is more effectively and efficiency. From the professionals view in an organization, the emphasis is on the word planning;ERP symbolizes a comprehensive software approach to support decisions concurrent with planning and handling the business enterprise. Airasia is looking to successfully maintain process integrity, reduce financial month-end closing control times, and increase reporting and data retrieval processess. Then, this system focusing on taking transaction in daily procedure and supporting AirAsia to save lots of its functional cost as well as to raise the effieciency and integrity in its operation.
Airasia also put into action Customer Romance Management(CRM). AirAsia has partnered with travel and tourism solutions company Amadeus. The collaboration will enable more than 10, 200 traven companies using Amadeus Global Distribution System(GDS) to book flights for travelers on AirAsia and all its subsidiaries. AirAsia also provide accomodation, they provided the traveller convenience to reserve their hotel. Airasia also provided the travel package deal for the business who need their staff travel overseas, this also can save the cost of the company, and can also build the nice relationships with the company. Other than that, Airasia provide if the journey delay, AirAsia will send a SMS(short massage therapy service) or email to their customer to see them. AirAsia also using the SMS to market their advertising as well.
AirAsia also using the outsourcing to regulate thier cost. Through the use of outsourcing, AirAsia can be elimnated in more resource ingestion. And than for the competency, AirAsia competency is not in IT, by implemeted outsourcing IT field, AirAsia can also reduce cost in IT system activities which is can make possible more cost in thier business. Airasia can easily to regulate all the system that is outsourced to other supplier or company, the control in this strategy also provides benefits because AirAsia function only to be controlled something that is AirAsia used. Example like the AirAsia does computer reservation system(CRS) by Navitaire Start Skies Technology Company, and than utilizing enterprise source planning (ERP) by Microsoft Corportation, and also utilizing AirAsia X. By implemeting outsourcing more better than in house procedure, because it can give more most reasonably priced, reduce risk, more effectively and successfully, and also can simply control by AirAsia and than more fast in AirAsia company.
