In my recent trip to Sri Lanka, I became acutely aware of the need to reduce airlines’ customer care costs. It was very clear on the British Airways component of the trip that the airline was trying to take steps to reduce its customer care costs. However, the experience was difficult as we were faced with automated baggage check-in at London Heathrow, which was difficult to handle. We did have help, however but the whole process was cumbersome. First, you have to answer questions on a touchscreen whilst at the same time sorting out the baggage. Baggage labels are then printed of which you then have to attach to your checked-in luggage by yourself. This has to be done at the same time as dealing with customers behind you, effectively saying, ‘get a move on.’
Maintaining Standards
So how do you reduce costs whilst at the same time maintaining customer care to the standards expected? Here, I have detailed what, in my opinion, can be done to improve airlines’ customer care costs.
Technology is an important tool that can be used to do this. However, technology should not be used to reduce airlines’ customer care costs at the expense of comfort. Nevertheless, technology is still a valuable tool for reducing airlines’ customer care costs. The use of paper, for example, has declined over time as tickets are emailed out rather than sent in the post, reducing both administration as well as printing and posting costs.
There are ways however that they could use technology to reduce airlines’ customer care costs whilst at the same time as maintaining standards. In this case, perhaps they could warn people before checking in that they will be faced with an automated baggage check-in process. In addition, people could be asked the baggage check-in questions at the time they do online check-in. This means that they could then focus on putting the baggage labels on, thereby speeding up the check-in process. In addition, some people should be around to provide help for any customer who needs it, although admittedly, this would still be less than what would be needed for normal check-in via a customer service agent. This means that staff costs will still be reduced.
Improving Quality
The problem with technology, however, is that whilst airlines’ customer care costs are reduced, many people may feel that in order to maintain an airline’s respect, quality should be improved in order to justify a noticeable decrease in staff numbers. So one could emphasise that simplifying the check-in process at the airport, by reducing the number of questions asked by the automated system, would speed the process, and in addition, staff help would not be needed by many. This effectively improves the quality of the service whilst at the same time reducing airlines’ customer service costs, creating a win-win situation for both the airlines as well as customers.
To reduce staff numbers further, there could be a co-operation between airlines so that each member of staff can help with multiple airline check-ins. Outsourcing (the contracting in of another company to provide check-in and other services) may also be possible, particularly if there is co-operation between more airlines that jointly organise another company to provide such services. An outsourcing agreement could also extend to call centre staff dealing with customer queries for those who ring up. In terms of airport check-in provision, however, quality can be improved by simplifying the process, thereby improving speed and reducing the necessity of staff help.
To conclude, therefore, airlines’ customer care costs are an area where airlines such as British Airways are trying to clamp down on. However, it is important for airlines to at the very least not compromise on their standards in order to reduce costs. This means that care must be taken when putting in processes such as automated baggage check-in. We have to wait to see how this progresses.
So all in all in my opinion there are ways to improve airlines’ customer care costs without compromising on quality. What are you views on airlines’ customer care costs?
