Critical Evaluation of AirAsia's Website

Scientific Essay, 2015

10 Pages, Grade: 2,0 (B)


Table of Contents

1. Introduction

2. Company’s Website ( Evaluation

3. Business Model of AirAsia
3.1. Production Innovation
3.1.1. Online Value Proposition
3.1.2. Target Customers
3.1.3. Capabilities
3.2. Infrastructure Management
3.2.1. Resources
3.2.2. Partner Network
3.2.3. Activity Configuration
3.3. Financials
3.3.1. Online Revenue Model

4. Electronic Customer Relationship Management (e-CRM)
4.1. Information Strategy
4.2. Distribution Channel
4.3. Trust & Loyalty

5. Recommendations

6. References

1. Introduction

This report written on the topic of “Critical Evaluation of AirAsia’s have four sections. First section deals with analysis of AirAsia’s website ( with respect to the implications of certain information systems. Second section will contains information regarding the company’s online value proposition and revenue model. Company’s electronic Customer Relationship Management (e-CRM) will be analysed in the third section. In the fourth section, some actions will be recommended to the company for strengthening the digital business strategy adopted by the company.

2. Company’s Website ( Evaluation

By reviewing company’s website (its screen shot is in the appendices section). One could say that company’s website is acted as company’s heart. Company’s website is like a myriad of information systems that permit company’s management to link its website with different types of information systems.

It has been found out that at operational level management, company’s website is linked with the information system known as Computer Reservation System (CRS). It has been observed that CRS is powered by Navitare Open Skies technology which permits company’s customers to book tickets and confirm their reservation on timely basis (Amadeus, 2014). Because of CRS, AirAsia managed to initiate first ticket less option and some other features (such as advanced boarding passes). Mainly CRS has been implemented for performing three functions outlined below:

- Facilitating online transaction with customers.
- Managing flight departure, flight schedules and flight fares.
- Issuing online boarding containing unique PNR number.

For the purpose of revenue management, AirAsia’s management has linked its website with Yield Management System (YMS). By using this system, AirAsia management used to take account of its operating cost which then assists them in optimising price and allocating capacity so that a company would maximise its projected sales (Voneche, 2005). It has been inclined that AirAsia’s YMS used to do optimisation at two levels (seat and route). Seat is regarded major opportunity for the maximisation of company’s revenue. It has been seen that seats for same/different
routes are priced differently at different interval. Customers who would reserve ticket few days before the date of departure would have to pay more price than the customers who made reservations earlier. Second optimisation level is route which used to optimize price based on the demand of specified route(s). Therefore, effective method is to combine both of these levels together so that the company would permit its customers to effectively priced seat and route for all flights (Amadeus, 2014). Company’s YMS falls under the category of management information system which is instrumental for supporting AirAsia’s tactical level management.

It has been understood that AirAsia’s website is also linked with another system for the purpose of supply chain planning. This system is called as Airline Reservation System. It has been seen that ARS is at the core of AirAsia (Benckendorff, et al., 2014). It interface with the company’s departure system for ensuring that both processes (online reservation and passenger processing) are controlled efficiently (Benckendorff, et al., 2014). This system categorized as company’s decision support system (DSS) which assist company’s middle level management in managing and making decisions.

In order to enable company’s executive level management to analyse company’s performance, AirAsia’s management has linked its website with the integrated Enterprise Resource Planning (ERP) system (WONG Pui Man, 2008). This system is powered by Microsoft Business Solution (MBS). Because this system, company has managed to gain certain benefits: maintaining process integrity speeds up data retrieval process, making its reporting process reliable and stimulating red financial month end closing process. Company’s ERP system is classified as executive support system (ESS).

3. Business Model of AirAsia

It has been found out that AirAsia business model is composed of four major aspects that are listed below:

- Product Innovation: concerned with what of sort of marketing offerings (products or services) offered by the company?
- Infrastructure Management: take account of fact that how a company is managing its operations?
Financials: focused on how much a company has been earning?
- Customer-Relationships: intended on analysing that who are company’s target customers?

Top 3 three aspects will be discussed in depth in this section while last aspect will be explained in the next section.

3.1. Production Innovation

3.1.1. Online Value Proposition

AirAsia’s view point in regard to selling tickets online is to allow an opportunity to all people to experience air travel at lowest possible fare. In this way, people having less money could also undergo journey with them.

By reviewing company’s online value proposition, it has been determined that for attaining the company’s value proposition, AirAsia’s has adopted four different strategies that have been illustrated in the table below:

Abbildung in dieser Leseprobe nicht enthalten

Figure 1 AirAsia's Key Strategies, adopted from JUHARI, et al. (2011)

3.1.2. Target Customers

It has been seemed that AirAsia’s target customers are passengers who are more concerned about price. As a matter of this fact, AirAsia has adopted low cost leadership strategy.

3.1.3. Capabilities

Capabilities demonstrate repetition of company’s action for the purpose offering products or services to their customers. In this regard, it has been seemed that AirAsia is successful in utilizing its assets in an effective that is why the company has lowest turnaround time in Asia Pacific region.

3.2. Infrastructure Management

3.2.1. Resources

It is generally understood that a company always need resources for the purpose of creating value. For this purpose, AirAsia owned certain resources that have been outlined below:

- Staff (Tangible)
- (Intangible)
- Airbus A320 (Tangible)

3.2.2. Partner Network

This element examined that which component of company’s activity configuration is associated with its partners. Evaluation of this element would reduce company’s transaction cost by great extent. In accordance with partner network, it has been inclined that AirAsia has manage to create long term oriented partnership with its partners.

3.2.3. Activity Configuration

Main theme behind any sort of business is to create value in a context where customers are willing to pay for it. With respect to this element, certain business processes (network promotion, infrastructure operator, contract management and service provisioning) of AirAsia are creating value for the company.

3.3. Financials

3.3.1. Online Revenue Model

Company’s has pursued different models in regard to generate revenue through its website.

- Direct Sales: It has been examined that 85% of company’s tickets are sold through its website (AirAsia, 2015). It meant that is an integral part of company’s infrastructure.
- Affiliate Model: Airasia’s management has also made alliances with various partners in the category of hotel booking, car rental services, fast food and fragrance. Because of this model, company has managed to generate 17% of its revenue through selling ancillary products and services online (RAGHUVANSHI, 2013).

4. Electronic Customer Relationship Management (e-CRM)

It has been discovered that e-CRM incorporates three factors: Information Strategy, Feel & Serve and Trust & Loyalty. e-CRM is significant for AirAsia as 85% of its tickets are sold through its website. Creating and maintaining effective e-CRM strategy would allow the company’s management to acquire and retain customers for long term period (Sam, et al., 2009).

4.1. Information Strategy

This element is more concerned about the collection of customers buying behaviour information which would results in strengthening the company’s relationships with its customers. It has been analysed that AirAsia management has linked their website with PolyVista Discovery Intelligence for the purpose of data mining and data warehousing. It has been revealed that this system permits company to closely observe its customers’ buying behaviours. Moreover, this system has made possible for the company’s tactical level management to learn about their customers’ interaction. Due to this system, AirAsia has managed to offsets many problematic features presented on its website. In this manner, a company used to analyse its customers’ purchase behaviour with the intention of optimising its adopted marketing mix elements.

4.2. Distribution Channel

It has been understood that AirAsia has been in customer centric e-business (CCEB) which meant that selling tickets online is a prominent distribution channel for the company. In order to boost the growth and scope of its business, company has allocated huge budget for research & development in web and wireless technologies. Main aim behind this initiative is to make ticketing buying process convenient and simple.


Excerpt out of 10 pages


Critical Evaluation of AirAsia's Website
University of Bedfordshire
2,0 (B)
Catalog Number
ISBN (eBook)
ISBN (Book)
File size
742 KB
AirAsia, Customer Relationship Management
Quote paper
Master of Science with Commendation in Finance and Business Management Junaid Javaid (Author), 2015, Critical Evaluation of AirAsia's Website, Munich, GRIN Verlag,


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