Service Management Cathy Pacific

Executive Summary

This report is analyzing the whole service performance of Cathay Pacific (CX) that including the company background and culture of CX. It is well-developed of the service structure of Cathay Pacific who are fourth times get “The World’s best Airlines” award.  

The success of Cathay Pacific understands the customers’ needs clearly and it has a certain business strategy – “Straight from the Heart”. It mays customers enjoy each flight with CX and repurchase. Also, CX keeps improvement the hardware and software facilities are one of key issues in success.

The whole service setting will been shown in the reports and makes the recommendations based on the customers reviews and ratings.

Content Page

1. Introduction                                                      p. 4

1.1 Company Background – Cathay Pacific (CX)                            p. 4

1.2 Target market and organization culture of Cathay Pacific                p.4-5

1.3 Customers’ Needs                                                       p.5

2. Service characteristic                                               p.6

2.1 “3Ps” of Services                                                  p.7

2.2 Quality Management                                             p.7

2.3 Total Quality Management (TQM)                                    p.8

2.4 Service process                                                 p.8-9

2.5 Service Setting                                                 p.9-10

2.6 Blue-print of Cathay Pacific                                        p.10

3. Service Encounter  p.11

4. Service Scripts                                                 p.11-12

5. Recommendation                                                p. 12

6. Conclusion                                                      p.13

7. References                                                      p.14

Appendix                                                         p.15

1. Introduction

This report is analysis the service blueprint and service process including the organization, services cape and the physical evidences of Cathay Pacific that help to improve the service efficiency.

1.1 Company Background – Cathay Pacific (CX)

Cathay Pacific (CX) is an international airline company was found in 1946 from Hong Kong and offering premiums passenger traffic service. The head office and hub of CX is based on Hong Kong International Airport. CX offers over 110 destinations in 42 countries worldwide. The vision of Cathay Pacific is “to be the world’s best airline. Being the best means that we always strive to excel in everything we do. Our dynamic team provides the highest quality service so that our customers are happy they chose Cathay Pacific” (Cathay Pacific, 2015). And there are seven mission statement by CX as the following graphic: [pic 1]

(Source: Cathay Pacific, 2015)

Also, CX is the major shareholder in AHK Air Hong Kong Limited that an all-cargo carrier that offers scheduled service in the Asia region and the shareholder in Hong Kong Dragon Airlines Limited (Cathay Pacific, 2015). In 2006, CX acquired Dragon and still continue operate in its own brand that does not hamper CX from continuously trying to provide the best service to the original target customers of CX.

The main reason of success in CX is customer retention that service is critical for a company especially who are selling service so that employee is one of important assets of CX. This report will analysis the key success issues in software and hardware support, and the improvement of CX that including the characteristic of service, service quality, etc. Moreover, the slogan as a commitment of Cathay Pacific to the customers is “Service Straight from the Heart” that reflected CX aims to provide the best service and flight experience to the customers.

1.2 Target market and organization culture of Cathay Pacific

Cathay Pacific is selling experiences to the passengers with its goal – Straight from the Heart. The emotional bonding with the customers is building up the loyalty and encourage customers to repurchase the airline products. The crew of CX especially the front line crew is the bridge of passengers and Cathay Pacific so that the staff selection and training is important. Selection helps CX choses the “right people” and training improves teamwork and do better.

Service “Straight from the Heart” aims to build up the culture change within focus on continues improve customer service and makes passengers feeling warmed, welcomed and feel at home. According to the service provide from CX on the official website, it was found that children and infants, pregnant women, elderly, disability assistance and medical assistance are the range of service included (Appendix 1). There are three main customers of Cathay Pacific: Business travelers, leisure passengers (families & tourists) and students.

1.3 Customers’ Needs

According to the Maslow’s Hierarchy of needs (1943), there are 4 needs Cathay Pacific to satisfy the customers as the following table:

The customers’ needs are the orientation of customer service of Cathay Pacific.  

1. Service characteristic

Gummesson (1987) defined that “a service is something which can be bought and sold out which you cannot drop on your feet”. There are 4 main characteristics of service by Fisk and Brown suggested in 1993 that including: