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Indigo Airlines is a privately owned low-cost domestic airline based in Gurgaon with Indira Gandhi International
Airport as its main base, its tagline is go Indigo. IndiGo Airlines started operations on 4th August 2006 and is
owned by InterGlobe Enterprises and Mr. Rakesh Gangwal. It is amongst the best airlines which are offering
professional services, economical prices with great deals and discounted airfares. b
The main aim of the IndiGo is to offer cheaper Airfares to the passengers. Its target is lower middle class and
middle class people who are cost conscious. Beside lowest airfares Indigo air gives easy options of online
booking with hold and pay facility and easy refund facility. Currently Indigo airlines have the highest passenger
load factor. Indigos strong adherence to low cost model, buying only one type of aircraft which are of same
configuration, and keeping operational cost as low as possible along with an emphasis on punctuality are some
of the reasons for its success.
CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES IN INDIGO AIRLINES
Customer Relationship Management activities are the activities which help the organization to identify the most
profitable customer and initiate and maintain relationship with those potential and existing profitable customers.
These activities are taken up with three major objectives; Customer Acquisition, Customer Extension and
Customer retention. Indigo airlines take up different activities which help in fulfilling all the three objectives.
There are different services and product offerings that are lucrative enough to attract middle class of the
society to avail services of indigo. Eg. Zero cancellation charges, Food and Beverages are allowed inside the
flight, Web Check-in for domestic flights, web check in, in case of urgency tickets can be booked and cancelled
through SMS, in case of delay or cancellation of flights notification can be sent through SMS, low charges to
select seats no. etc. are some of the services offered by Indigo airlines which appeal to middle class and lower
middle class of country. But further some activities are taken up by customer relationship management to
maintain good relations with customers and retain them. Customer relationship Practices are beyond just
product or service offerings, it is a strategy which provides reciprocal benefits. In IndiGo airlines Customer care
cell tries to identify such profitable customers and provide them special services, and if they are not profitable
customers then the special service can be ceased.
Following is a list of CRM practices taken up by Indigo airlines:
A. 6C membership Scheme: This is a scheme for those customers of IndiGo airlines who are consistent flyers
of IndiGo airlines. These customers are provided membership into 6C membership scheme, which help them
avail 10% discount on base rate of their tickets.
B. IndiGo Corporate plan: This plan is for those corporate travelers who prefer travelling with Indigo airlines
for their corporate visits. In this plan a contract is entered into with the corporate and this is an annual contract
which provides some concessional benefits to those corporate.
C. Partial Payment Schemes: Those customers who have their account in Citibank and HDFC banks can
make partial payment of tickets and pay the remaining amount later, or the remaining amount can be paid in
EMIs. In this case banks become intermediaries and airlines develop good relations with both the customers
and banks.
d. FAM trips: Special trips to tourist destination in partnership with trip planning sites. These trips are different
from the packages that are provided by the airlines. These are specially trips planned for those customers who
hold account in indigo airlines. These trips can be availed by all kind of account holders.
E. Value flier & bundled hotel offerings: Leisure travelers are provided with a ticket package called value
flier & bundled hotel offerings. Those customers who are willing to pay some extra amount and get a package
for their travel can avail this plan. Through this plan they can pay some more amounts and can get free food on
board or the package can also provide hotel offerings.
F. Separate accounts for member, agency and corporate: Indigo airlines provide different accounts for
member, agency and corporate and they are provided schemes according to their needs and nature of account
specifies different facilities that can be availed by virtue of holding that account.
G. Call centers: 24/7 multilingual call centre: IndiGo provides services through there call centers as well, they
provide multilingual call centers that can cater to different people from different parts of India. This service is
provided to make the person more comfortable in talking to the agent in the language they are comfortable in
and find out solutions for the queries and understand the CRM activities.
website:
Indigo airlines have a website which makes it convenient to the customers to avail their services, Using the
website has proved to be very convenient as the customers dont have to visit a travel agent to book a flight. by
just using the website the customers ccan have a look at the various offers and prices of the various flights,
book their flights,change or cancel tickets, check flight status, or just clarify their queries.
There are numerous other offers provided by the airline, such as arranging wheelchair if required and special
assistance for infants and unaccompanied minors.
From the analysis it can be seen that the CRM practices does leave impact on the customers as well as the
airlines. Indigo airlines targets middle class people hence they are the one who experience and enjoy the most
of its CRM activities.
a. People who have plans to fly frequently for some particular period prefers to enter the 6C plan enjoy
discount. Those people are not frequent flyers but for some particular period they fly frequently. Hence this
helps them to enjoy discount and airlines earns continuous revenue. And hence in future also these people
prefer to travel through IndiGo and recommend to others also.
b. Indigo airlines started its operation in 2006, and has expanded and grown manifolds as compared to other
airlines. It has created a huge customer base duet to its excellent strategy of keeping customer comfort as its
highest priority.
c. With corporate plans most of the corporate have become customer of Indigo airlines which helps the airlines
to have stable customer, and those corporate enjoy benefits on cost and other on board services.
d. Indigo airlines has become partner to many other service industries like bank, hotels and travel business,
which help them make procedure easier for customers and customers enjoy those services due to fast
processes.
e. Indigo holds 19.2% of market share and is the best low cost carrier in India. But it still maintains its low cost
carrier image and helps people to exercise option of partial payment and EMI payments. This makes middle
class more loyal to them, as it caters to their needs.
f. Value flier and hotel bundling are Cross selling and upselling options which helps to create a better
impression of airlines and that adds to comfort of customer. It enhances the profit of airlines and a customized
service helps to create bigger customer base.