Virgin Atlantic Airways Case Study

Critically assess how the organisation has employed e-business technologies to perform its key business processes and improve service levels for its customers To begin with, the online e-business model of Virgin Atlantic Airways is a business to consumer as the Virgin Atlantic Airways sells plane tickets directly to customers without passing intermediaries. Virgin Atlantic Airways implements the e business technologies to perform its key business processes and improve service levels for its customers by improving reservation online, provide all convenient services, flight data , route, cost saving ,more flight and news update and promotion. Reservation Online System First of all, Virgin Atlantic Airways (2012) stated that the reservation online enhance booking system and increase sales. This is because it is convenient for passengers to check dates and flight. No matters where passenger live, they can reserve online and make a payment directly to Virgin Atlantic Airways through credit cards. Secondly reservation online provide all level of services. So passengers can select the service to suit their need. Virgin Atlantic Airways provide services such as economy class, premium economy class as well as upper class. Convenient. B2C or Business direct to customer is quite convenient and efficient with airline business (Kotler, 2008) . This reduces the need of sell agents as intermediary. As a result of this, Virgin Atlantic Airways can sell plane ticket at a lower price. Furthermore, e-business technology can increase foreign passengers through Virgin Atlantic Airways booking system. This is because foreign passengers can check the route , flight data and prices to compare with other airline. However, if they find Virgin Atlantic Airways suit their need more , they will book directly with Virgin Atlantic Airways. Flight Data E-business technologies make a flight data more accurate and fast due to, the system is operated by computer. To demonstrate this, if one passenger book the plane ticket the system will show the seats availability left and if one change his or her mind by cancellation the system will responds very quick. Route E-business technologies could perform its key business processes and improve service levels for passengers by showing the flight route and provide alternative route for passengers to select. Therefore, passengers have varies option to pick the most convenient route and economical route. For a long flight, sometime passengers can pick an economical flight by choosing the flight that transfer at other airport or require couples stop. This enhance customers base and flight booking system. More Flight Virgin Atlantic Airways (2012) mentioned that online system can enhance more flight. This is due to if any flight or route is popular due to high demand or season factors. The system will suggests to possibility to increase more flight . Therefore, Virgin Atlantic Airways revenue and profit will rise as Virgin Atlantic can serve more demand. Cost Saving Cost saving is one of major key success of Virgin Atlantic Airways (Kotler, 2008) . The e business online system can save the cost effectively as there is less need for sell agents and intermediary . Also, the e-business system can manage ticket price effectively as well. This is because if the fuel price and tax price change , the system will adjust the selling price of plane ticket instantly. E –business system which is a computer system require less staffs working. Therefore, the system can save hiring cost. News update and Promotion. Virgin Atlantic website shows all news and promotion update. This is a fast way to communicate directly to passengers and it is quick because the company can just update instantly. This benefits both passengers and the Virgin Atlantic company due to passengers can compare the airways promotion with other airways or decide to purchase the promotion that suit their need instantly.