A Research On Service Innovation Of Xiamen Airlines

Service innovation has become a vector to balance the need from consumers and the service supply from corporates,a key method to optimize brand image among the industry,and one of the most important resources for airlines to gain competitive edge.To get full appreciation of current aviation industry,it is heavily impacted by the fast-changing general global economy environment,rapid-expanding high speed rail network,capacity constraints,popularization of customer structure and etc.Operation for domestic carriers is getting much tougher,while obviously,their revenue is getting lower and lower.They keep seeking to break away from the fierce competitions not only inside the aviation industry but also across transportation industry by differentiating their business model.Service innovation,becomes the main method and essential strategy to match with the rising concepts of personalization,diversification,and one-stop consumption and to fulfill brand differentiation in thecompetitive market.Driving by service innovation,airline service mode changes from basically providing safe and comfortable transportation to offering a whole seamless travel solution that takes care about both your physical and psychological feelings.Profit-centric is gradually replacing cost-centric as the main guideline for corporate strategy planning.This paper will be divided into three parts.In the first part,status of service innovation management in Xiamen Airlines will be studied,following with pointing out the short of new technique,new conception and the integrated innovation of service and further analysis of four key causes,namely lack of strategic implementation from top to bottom,lack of differentiated core brand value,lack of customer-centric norm,as well as lack of interactive with sales and marketing.In the second part,practical and workable suggestions based on service innovations theory,service supply chain theory and related theories and methods,combining with data from spot investigation,will be listed.The suggestions could be summarized as a four-step process.Step one,setting service innovation driven strategy.Step two,to clarify the core brand value.That is the heart and soul of service innovation operation pattern and the specific element to differentiate the brand among all competitors.Step three,to reconstruct related system.That is the bones to support the innovation and the essential part for sustainable development.Step four,to expand and complete the service chain.That is the blood and organs to keep the service innovation operation pattern and the corporate alive and outstanding in the market.In the final part of it,quantitative analysis method will be applied to evaluate the effect of the above improvement.Further ideas to enhance brand value and improve travel experience by adding emotional touch points will be raised in the end of the paper.