Etihad Airways Competitors - Research Paper Example

Managing marketing Outline Table of contents Introduction Etihad Airways competitors Product value proposition Market perception of Etihad Position of Etihad in Asian market Conclusion Table of content Introduction 2 Etihad Airways competitors 2 Product value proposition 3 Business class product position map 7 Market perception of Etihad 8 Position of Etihad in Asian market 10 Conclusion 12 References 1 Introduction Etihad Airways being the national airline of Abu Dhabi began its operations in 2003 and has been declared the fastest growing airline in Asia. The company’s positioning as a provider of personalized and luxurious travel services has made the company a global leader in the first class travel service. With this leverage, the company growth strategy is well founded and as it expands its market (Bomber, Gittell & Kochan 2009). The company’s endeavor to be the market leader in Asia can still be enhanced on the same platform of offering personalized and luxurious travel service. Etihad Airways competitors Etihad airline has most of its competitors based in the Middle East and Asia. The airline competition is usually based on the flight routes and the major competitors of Etihad airways in the Asian routes are as follows; 1. Emirates 2. Qatar airways 3. Oman air 4. Gulf air 5. Saudi airline 6. Singapore airlines 7. Cathay Pacific Airlines According to Skytrax world airline awards, Qatar airways and emirates are the major competitors of Etihad airways. Etihad airways was the declared the global best airline in the first class seat and catering arrangements. Product value proposition Etihad airways has been associated with personalized and luxurious first class product- Diamond first class globally, this made the company a global leader in this product category as per the 2010 Skytrax awards. The company has positioned its first class product as associated with style, space, luxury and ambience. With a customer driven approach, Etihad airlines diamond class has been designed for greater customer experience to the affluent members of the society and world entrepreneurs. The product package entails a wide range of services starting with luxury to business conferencing facilities. Etihad airlines diamond lounge has uniquely designed services that have surpassed most of the global airline industry players. The following are the services package in the diamond first class lounge Spa treatment A la carte fine dining Champagne bar Lighting options Business room facilities Resting and refreshing facilities Great experience family room Cigar lounge Business class product for Etihad airways-pearl business product also performs exceptionally well having been rated by Skytrax as in the third position globally and its Asian competitor Qatar airways leading in the category. The product positioning is that of comfort and convenience for business professionals on travel. Just like the diamond class lounge, the pearl class lounge product also upholds a greater customer experience and luxury services in its greatly designed interiors. In the pearl class package are a range of services listed as follows; Spa treatment Five star dining Business room facilities Resting and refreshing facilities Great experience family room Entertainment facilities From the service analysis Etihad airways has been able to compete efficiently with other global competitors by enabling personalized and luxurious in-flight experience to their customers in their products. This has been detrimental at the same time to other customers who are conservative and wouldn’t buy the luxury proposition offered by the airline. Comparison with the competitors Airline industry competition currently has grown with many players in the industry focusing on the customer experience as their leverage. Etihad airways being one of the industry players has focused more on the aspect by providing state-of-the-art services to their customers making the company ranked as the world leading airline by the World travel awards for two consecutive years; 2009 and 2010. 1. Etihad airways and Emirates Emirate airlines’ first class product is tailored to offer travel comfort. The services offered in the first class include; comfortable sleeper seats, hand held controller, access to a wide range of wines and cabin crew support. Unlike Etihad airways’ diamond first class product, the first class product of the Emirates is not much personalized and luxury oriented. The business class product with the Emirates is moderately cool offering cabin crew services, business communication support and comfortable sleeper seats. Comparatively, both commercial airlines are targeting different market niches with Emirates mostly targeting the middle class clientele while Etihad targeting luxury driven clients. 2. Etihad airways and Qatar airways Etihad has the world leader in the first class product while Qatar has been the world leader in the business class as per the Skytrax rankings. Unlike Etihad diamond class product, Qatar airways first class constitutes more of auxiliary services like the premium terminals, chauffeur services and baggage allowance. Others in flight services in Qatar airways first class service include in-flight cuisine, office facilities and entertainment facilities. Comparably Etihad diamond first class product has more differentiating factors from Qatar airways. On the business class product, Qatar airways is only positioning its product based on the ambience related to space and comfort. Unlike Etihad product that advocates for additional services to customers like business room, resting and refreshing room. Qatar Airways staff service has been rated the best in the business class both at the airport terminals and the cabin. With this consideration, Qatar airways has been rated the best globally as a result of the cabin crew staff performance which has been critical just like any hospitality industry. Etihad airways and Oman air Oman airline offers a contemporary first class service with no auxiliary services apart from the ambience. It is an airline company that still offers conservative services unlike Etihad which is very contemporary and global in approach. Oman air promotes much of the Middle East hospitality. The business class product just like the first class is a product of traditional airline ambience and lack creativity in their interiors. Comparably Oman air has positioned itself so conservative in its products unlike Etihad airways which appreciate creativity and style. 3. Etihad airways and Gulf air Gulf air has been in operations for a longer time compared to Etihad. Gulf air first class product offers only privacy and space as the foundations of their ambience. The interior designs are very conservative and compared to Etihad airways it needs considerable upgrading. The business class product of gulf air is also very conservative. Most of the favorable services like internet connectivity and coffee offer is at the lounge but unlike Etihad, gulf air does not have a very nice crowd controls. Gulf air needs to be consisted in the business class product designs in their various planes. The product must not be seen to vary with the airplane type. The business class service of Gulf air has a better staff hospitality and a variety of food and drinks selection. 4. Etihad airways and Saudi airlines Saudi airlines first class product entails a cuisine with executive service, comfortable seats, entertainment and sleeping suits for long-haul flights. Unlike Etihad airways with Spa services, family area and business rooms, Saudi airlines needs further improvement in the first class service. The business class service of Saudi airline has a great staff service, well designed seats, on board entertainment and library materials and children’s bag. Saudi airline being a very conservative airline has its business class service positioning just space and limited luxury compared to Etihad which values great customer experience. 5. Etihad airways and Singapore Airlines A Singapore airline is one of the premier airlines in Asia leading customer numbers. The airline first class product is much positioned as offering privacy and comfort unlike Etihads’ great ambience and luxury. Singapore first class product varies with the fleet of plane unlike Etihads. The business class for Singapore airline is also differentiated with respect to different fleet. The differentiation of the business class product must the contributing factor to the high customer base for the airline. The business class features also are pretty good with its main concept being customer comfort. 6. Etihad airways and Cathay pacific airlines Cathay pacific airlines is a quality approved airline and hence meaning meets accepted standards for customer service. The first class product has a good lounge comfort, seat comfort and high quality meals. Compared with Etihad, Cathay pacific airlines are almost at par with Etihad airlines as regards their product rating but its product is much tailored and positioned as offering comfort. The business class travel of Cathay pacific airlines has a fairly high seat comfort, food and drinks service. Below are the position maps for Etihad and its competitors for the two products First class product position map Business class product position map Market perception of Etihad Etihad market positioning has been that of great customer experience thereby becoming a choice for most of the luxury travelers and business entrepreneurs. The pricing strategy used by the company is competitive to match its target market. The most profitable destination for business class and with large number of clients is Middle East, Asia and Australia. In order improve on the profitability more concentration should be invested in this market since this contributes to more that 60% of the earnings of the company. On the first class product, more clients are long distance luxury clients destined mainly to Australia and the USA. The most favorable routes for the first class clients are Abu Dhabi to Melbourne, Tokyo, New York, Chicago and Toronto. Generally customers view Etihad airways as a quality service provider and a consistent and trustworthy travel partner. This positioning has been affirmed by the delivery of the various value prepositions by Etihad airways. Below is a market perception positioning map for Etihad and its competitors for both products. Etihad has high rating in terms of comfort and luxury but it is also perceived to be expensive compared to its closest competitors Qatar and Emirates. Market perception position Map Position of Etihad in Asian market Etihad Airways customer driven vision has made the airline strategically positioned to be the market leader in the Asian market. The three legged vision structure supported by personalized, hospitable and luxurious travel has made the airline company the global leader. Etihad Airways vision of ensuring that their customers experience a personalized and luxurious has made the airline company tap on the upper class market of the regional population. The ability of the airline to offer these services has been undoubtedly assured with its current global rating. It is therefore imperative that the airline continues to facilitate great customer experience. The competitors of Etihad like Qatar Airways, Emirates and others are already aware of Etihad’s market positioning and this makes it necessary for Etihad to be consistent in their service provision standards as a leader in luxury and business travel globally. With the luxury facilities already established, it is high time for Etihad pricing strategy to be changed to tap on the whole market for its clientele. First class product position map For the business class product service where Qatar airways is currently the world leader, it is necessary for Etihad airways to improve their customer service provision where Qatar airways excelled. Etihad cabin crew should undergo a capacity building program to enhance their customer relationship skills indispensible in fostering personalized services. With the proper market leadership position in this two market segments, Etihad Airways performance will be sustainable and consolidated. Etihad should always strife to strike a balance between its luxury services and the pricing strategy. Business class product position map Conclusion Etihad Airways market approach has been strategic and unique making it the global leader in the airline industry within a short span of time. The company having realized that personalized client services are the key to business success, invested heavily in provision of quality, business support and auxiliary services to its customers. Etihad airways’ value proposition of providing luxury and personalized services to clients is real and deliverable; this has made the company a choice by most first class clients. The company endeavor should now focus on human aspects of customer services by its cabin crew so as to ensure a holistic and great customer experience. In order to improve on their market share, the company should leverage on a pricing strategy to capture the business and economy class product leadership. References Bomber, G, Gittell, J & Kochan, T 2009, Up in the air: how airlines can improve performance by engaging their employees, Cornell University Press, New York. Etihad Airways 2010, Etihad Airways, Abu Dhabi, viewed on 17th November 2010. Skytrax 2010, Skytrax, London, viewed on 17th November 2010. Read More