What is Strategies and Plans to improve the yield of Qantas airlines
Before developing and planning the strategies of Qantas Airlines, it is important to consider and analyses the basic and immediate priorities of the organization. For the management of Qantas the most significant priority is to reinforce the core of the business and address the unprecedented scope. The long-term goal of the organization is to look for a profitable as well as sustainable growth. Another significant priority of the organization is to develop strong Group Domestic Position and develop competitive advantage even in the international market of airline industry. Based on this objectives and focus of the organization, the strategies should be developed by the management of Qantas (Awad, 2011).
Cost reduction strategy
Qantas has opted for the cost reduction strategy in order to enhance their revenue. To carry out this strategy, the organization has reduced the number of flights which has helped the organization to cut down their cost. Along with this the organization has also implemented lower depreciation charges and lower fuel prices and also took steps in the removal of the carbon tax. However, there are still two ways in which the management of Qantas can implement their cost reduction strategy. Bench marking is an important tool that would help the management of Qantas to identify the problems as well as the issues associated with cost structure of the organization. Based on the identified problems, the organization will be able tominimize the cost wherever, it is necessary. Optimization is yet another process in cost reduction strategy. To minimize the cost and increase the profit of the organization, the management of the organization is required to make use of the in perfect manner (Marks, 2007).
Strategy to Improve Revenue
Considering the priorities and the objectives of the organization, the management of Qantas should frame revenue increasing strategies there are three ways in which the management of the organization will be able to enhance their revenue. The most helpful strategy for the organization will be to expand regionally and at the same time focusing on the destination which will be able to generate higher yield. Although Qantas serve worldwide but still I is important for the organization to look for some places where they will be able to boost their revenue. Utilizing the concept of connectivity is yet another factor which should be taken into account by the management of Qantas. Considering this concept, the management of the organization is required to develop some more hubs and that too in busy cities(‘Qantas expands its maintenance’, 2009). Another significant process of increasing the revenue is following the strategy of ancillary revenue. In this form of strategy, the organization generates revenue from the non-ticket sources. For instances, the management of Qantas can charge fees for baggage, on-board food and service and this will prove to be very vital component for the low-cost carriers.
Sales strategy
Apart from focusing on cost reduction strategy, Qantas should also develop appropriate sales strategy. For the airlines industry, it is very important to establish effective sales strategy as that the revenue of the organization can be increased and at the same time a strong base can be founded for sustainability and customer retention. E-reservation and E-ticketing along with e-check in will create sense for the customers as well as for the airline company itself. At the same time, it should be considered that there is large number of people who does not have proper access to the internet. It is the duty of the sales and the marketing team of Qantas to tar4get the specific group that possess the capability to provide for corporate as well as group travel(Qantasnewsroom.com.au, 2015). It is the duty of the regional managers to target these efforts and at the same time make use of the mass-marketing and internet to attract the individual customers, who after feeling the affinity and experiencing satisfaction will become loyal to the organization. Along with sales strategy the promotional strategy should also be developed by the management of Qantas. The sales and promotional strategy are closely related with each other. To make the sales strategy known to everyone and to attract the customers, it is vital for Qantas to promote their services and product to the customers (Sutherlandglobal.com, 2015).
