COMPANY BACKGROUND
History
Founded on July 23, 2007, Vietjet Aviation Joint Stock Company operates as a low-cost airline, catering to the travel needs of both Vietnamese and international passengers Committed to safety and exceptional service quality, Vietjet focuses on domestic and Asian routes After four years of thorough preparation in resources, systems, and finance, the airline has ensured sustainable growth within Vietnam's aviation sector By 2018, Vietjet successfully met the air travel demands of millions, significantly contributing to the growth of Vietnam's aviation, tourism, and overall economic development Within just six years of operation, Vietjet has secured a substantial market share and achieved remarkable milestones in the aviation industry.
The business model illustrated in Figure 1.1 is sourced from the Vietjet annual report of 2017 This model highlights key strategies and operational frameworks that contribute to the company's success For further insights, the complete thesis can be downloaded from the provided email address.
Vision
Vietjet aspires to be a leading multi-national aviation group with an extensive network that spans across Vietnam and globally In addition to offering aviation services, Vietjet also provides consumer products through its e-commerce platform The airline aims to be a trusted favorite among customers, earning their credibility and loyalty.
Mission
To operate and develop domestic, regional and international flight network
To create breakthrough in aviation services
To make flying a popular means of transport in Vietnam and in the world
To bring joyfulness, customer satisfaction by providing luxurious and exceeding expectation services with friendly smiles and professionalism.
Product and service
Vietjet is committed to reducing ticket prices and minimizing unnecessary expenses, making air travel more accessible for a wider audience The airline emphasizes product research and service diversification to enhance customer experience Operating primarily on a low-cost strategy, Vietjet has introduced a hybrid model that includes its standard low-cost economy ticket (Eco) alongside premium offerings, such as the luxury "Sky-boss" ticket for discerning travelers.
Sky-boss services offer passengers exclusive privileges, including free flight time changes, complimentary check-in baggage, access to VIP lounges, priority check-in and boarding, as well as in-flight complimentary food and beverages.
Operating on low cost strategy, Vietjet also offers additional services called
Vietjet enhances passenger experience and comfort by implementing an ancillary service strategy The airline has introduced a kiosk check-in system at three international airports, along with web and mobile check-in options These innovations aim to alleviate congestion during peak travel seasons, streamline procedures, and reduce waiting times for travelers.
Vietjet has introduced its "Sky-shop" services to enhance travel experiences for customers This service allows passengers to enjoy a variety of hot, delicious meals that reflect the unique cultures of the regions and countries they are flying to.
4 | P a g e provides in- flight shopping call “Duty free merchandise” with small souvenir, perfume, cosmetic and jewelry.
Business development strategies
From 2020 to 2025, Vietjet is set to enhance its domestic and international network by introducing new routes that link global airports and optimizing the frequency of local routes, with a particular focus on the North Asia, Northwest Asia, and ASEAN markets.
Vietjet is committed to expanding its market presence while ensuring strong brand health to build reputation and credibility among stakeholders, including passengers and partners, which fosters sustainable development The airline continues to innovate by researching and developing tailored services and products on e-commerce platforms, improving cost management, and implementing high-tech applications to enhance operational efficiency and reduce costs.
Target customer
Vietnam’s local carrier Vietjet is helping to stimulate the traveling demand of customers Vietjet establishes itself with new generation airline with low cost strategy
Vietjet targets budget-conscious travelers who seek affordable airfare and have flexible schedules The airline primarily serves price-sensitive customers, including those who typically use trains or cars for transportation, highlighting the advantages of air travel Notably, 30% of Vietjet's passengers are first-time flyers, demonstrating the airline's role in making modern air travel accessible to Vietnamese customers at reasonable prices, enhancing their flying experience and comfort.
Market share
Vietjet has significantly contributed to growth in the domestic market, achieving a leading position in air transportation with a 45% market share in 2018, outperforming other carriers.
In 2018, Vietjet operated a total of 89,690 flights, marking an approximate 22% increase compared to the previous year The airline continues to expand its international flight network as part of its strategy to enhance its brand presence in the global market.
5 | P a g e increase flights to Northeast Asian, South Korea, Taiwan, Hong Kong and China- the region with highest average revenue coming from charter flights.
Business performance
The Vietnam aviation market is poised for significant growth in 2020, driven by predictions of robust GDP development The Vietnamese government is fostering a conducive environment and promoting tourism as a vital economic sector, attracting millions of foreign visitors With an expanding fleet of 64 aircraft and an increase in international routes, Vietjet is positioning itself as a multinational carrier with a strong competitive edge.
Figure 1.3: Vietjet business performance 2017- Source: Vietjet Annual report 2017
In 2018, Vietjet has sustainable growth and continues to get considerable achievement The carrier has conducted of safe flights and met the travel demand of over
23 million of passengers with high technical reliability 99.64 percentage Vietjet with the strategy wants to become leader carrier in domestic market and favorite airlines in region
Vietjet has expanded its operations to include 39 domestic routes and a growing international network with 66 destinations The airline has recently signed agreements to introduce new routes to India, Japan, and Cambodia.
PROBLEM IDENTIFICATION
Problem context
Vietnam's aviation industry is experiencing rapid growth, with a remarkable increase of 17.4 percent over the past decade, fueled by rising domestic and international tourism and the emergence of low-cost carrier models From 2018 to 2020, passenger transportation volume is projected to rise by over 16 percent The country is home to five major airlines: Vietnam Airlines (VNA), Vietjet Air, Jetstar Pacific, Vietnam Air Services Company (VASCO), and Bamboo Airways - FLC Group.
Figure 1.4: Vietnam aviation growth 2011- 2017– Source: CAPA
The entry of Bamboo Airways has intensified competition in the aviation market, prompting Vietjet to prioritize service quality and enhance customer satisfaction to maintain its reputation and revenue As noted by Adler, passenger satisfaction is crucial for success in the competitive aviation industry.
Enhancing service quality and understanding customer needs are crucial for the survival and success of airlines Prioritizing passenger satisfaction can significantly improve service quality.
Symptom analysis
Despite advancements in its fleet and an expansion of operational routes, Vietjet's revenue falls short of its KPI targets The total revenue reached 30,951 billion dong, achieving only an 85% completion rate against the target Specifically, transportation revenue also stands at 85%, while ancillary revenue completes at 91% However, revenue from cargo remains low, at just 57%.
Actual 2018 KPI 2018 Compare Actual to KPI
In 2018, Vietjet generated transportation revenue primarily from seat sales on its modern fleet of 64 aircraft, which includes 21 A320s and 43 A321s, serving over 23.13 million passengers The total transportation revenue reached 22,825 billion dong, reflecting a slight decrease of 4,015 billion dong compared to the target, achieving 85% of its revenue goal.
Vietjet's ancillary revenue is generated from non-ticket fees, offering a range of added services such as priority check-in, boarding, hot meals, and pre-ordered beverages Additionally, the airline provides travel insurance products to help minimize travel risks, which can be conveniently purchased by passengers through www.vietjetair.com.
Customers can now select insurance services alongside their booking itineraries Sky-shop has enhanced its offerings, providing not only hot meals and unique Vietjet souvenirs but also a variety of seasonal products available for purchase onboard These include items for summer, winter, and Tet (Lunar New Year) celebrations, among others.
Vietjet's international flights have seen a surge in popularity for their free products, including a diverse selection of cosmetics, perfumes, alcohol, and cigarettes, all offered at competitive prices These value-added services significantly contribute to the airline's revenue, with ancillary revenue accounting for 91% of total gains, despite a decrease of 698 billion compared to the KPI target.
Vietjet not only specializes in passenger transportation but also utilizes aircraft space for cargo transport, which constitutes 3% of its total revenue In 2018, cargo revenue achieved only 57% of its potential The airline's business strategy prioritizes passenger transportation to establish itself as a market leader, with cargo revenue serving as a supplementary contribution to overall earnings This research primarily examines passenger transportation activities and ancillary services.
The Customer Service Department's satisfaction report reveals that the overall service quality rate in 2018 was only 68.6%, marking a decline of 4.5% from 2017's rate of 73.1% Notably, the service quality rates across all provided services have also decreased.
Figure 3.1: Vietjet overall service quality rate 2017- 2018- Source: Vietjet Customer
Overall service quality rate tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Table 3.2: Service quality rate by services provided
Source: Company data- Service quality level report in 2018
Figure 3.2: Service quality rate by services provided 2017- 2018-
Vietjet categorizes its service quality into four key areas: booking service, airport service, on-board service, and in-flight service These sections represent the essential stages of the passenger air travel experience, starting from the check-in process and concluding with luggage retrieval at the arrival terminal.
Vietjet's booking service is assessed across three primary channels: the Vietjet website, the call center (1900-1886), and ticketing agencies The overall satisfaction rate for the booking service stands at 70.1% However, customer satisfaction regarding waiting times for call responses is notably lower at 55.7%, while the initiative in addressing customer demands is rated at 65.3%.
Booking services Airport services On-Board services In-flight Merchandise
Service quality rate by services provided
Service quality rate by services provided 2017 2018 2018 /2017
In-flight Merchandise 64.8% 60.0% (4.8%) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The airport service experience is outlined in three key stages: the check-in counter, the departure gate, and the arrival terminal A significant number of customers report feelings of frustration, with 65.7% expressing dissatisfaction during the check-in process and 67.8% feeling discontent while waiting for their luggage.
In 2018, on-board service saw enhancements, reflected in a slight increase in service quality ratings This evaluation was based on three key criteria: cabin cleanliness, in-flight announcements, and flight attendants, all of which achieved over 70% satisfaction rates, demonstrating significant improvements in service and professionalism.
LCC models enhance overall revenue through ancillary services, which are additional fees customers pay for value-added services beyond the ticket price This highlights the significance of in-flight merchandise as a key factor influencing service quality In-flight merchandise is primarily categorized into two services: food and beverage offerings available on both domestic and international flights, and duty-free products exclusively on international routes.
While traditional carriers face numerous challenges in modern air travel, low-cost carriers (LCC) are implementing innovative strategies that resonate positively with passengers By offering tickets with reduced fixed costs, LCCs have emerged as some of the most profitable airlines in the aviation industry However, excessive cost-cutting can negatively impact service quality, prompting customers to seek better value elsewhere Consequently, competing solely on price is insufficient for success, particularly for low-cost carriers Moving forward, all passenger carriers must focus on developing strategies and delivering exceptional services to achieve a sustainable competitive advantage.
In the evolving landscape of Vietnam's aviation industry in 2018, Vietjet faced both opportunities and challenges Despite notable achievements, the airline encountered numerous passenger complaints that significantly impacted its reputation Issues such as flight cancellations, delays, and negative feedback regarding service quality and staff attitude highlighted a gap in performance expectations.
In 2018, the customer service department of Vietjet handled over 14,392 negative inquiries, highlighting the challenges faced in customer satisfaction.
12 | P a g e feedbacks, complaints from customers in some channels through weekly survey, mail box and call center 1900-1886 This figure evaluated that significantly increases by 11.78% compared to 2017 (12,875 complaints)
Figure 3.3: Vietjet Customer’s complaints 2018- Source: Customer Service report
Potential problems
The research investigates the observable symptoms of KPI achievement failure by analyzing organizational data and conducting focused interviews, while also exploring various subjective and objective factors that contribute to this failure.
- In the relation to objective reasons, one of the challenges of Vietjet performance is the increasing high competition from other airlines in Vietnam aviation industry
The visa element is one of the barriers for airline activities Currently, Vietjet has
Delay and cancelled flights Staff attitude
Services Payment channel failure tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Japan, Korea, and Taiwan are popular tourist destinations; however, obtaining visa approval for travel to these countries can be challenging As a result, many customers often find themselves canceling their bookings due to delays or failures in the visa application process.
Passenger transportation activities and ancillary services are struggling to meet targets due to a significant number of customers discontinuing their use of Vietjet services A report from Vietjet reveals that the percentage of customers who continued to fly with the airline in 2018 was 91.8%, reflecting a decrease of 2.7% compared to previous years.
In 2017, customer satisfaction with Vietjet was notably lower compared to other airlines, with only 94.5% satisfaction reported Specifically, 66.7% of customers rated Vietnam Airlines' service quality as superior to that of Vietjet This low level of customer satisfaction has contributed to the failure in achieving key performance indicators (KPIs) related to transportation and ancillary revenue.
According to Mr Son- Commercial Director, he mentioned high competition is one of the challenges leading to failure in target KPI achievement Mr Son shared that:
The air transportation sector in Vietnam is experiencing heightened competition with the entry of new players, including the FLC Group's Bamboo Airways, which marks the emergence of the country's fifth airline Established carriers like Vietnam Airlines (VNA) and Jetstar Airways are adopting competitive strategies, such as offering low-priced tickets and attractive promotions The market has become increasingly dynamic with the arrival of Air Asia, the largest low-cost carrier in Asia, which is expected to pose a significant challenge to Vietjet.
Figure 3.4: Vietnam air transportation market share 2018- Source: CAPA 2018
In 2018, Vietjet captured a significant 44.8% of the market share, establishing itself as the largest domestic airline in terms of capacity While Vietjet focuses on competitive pricing, Vietnam Airlines (VNA) is recognized for its high-quality branding and exceptional service, making it a preferred choice among travelers.
A 2018 survey by CAAV indicates that Vietnam Airlines (VNA) holds a significant competitive advantage in service quality, achieving a score of 46%, while Vietjet scored only 23%.
Figure 3.5: Comparison image comparison between VNA and Vietjet
In the competitive air transportation market, Vietjet has established itself with affordable pricing over the past six years However, the new entrant, Bamboo Airways, operates a hybrid business model that combines various pricing strategies While Vietnam Airlines (VNA) has successfully captured the high-end customer segment with exceptional services, Bamboo Airways leverages its focus on niche markets as a competitive advantage.
FLC Group operates within a strong ecosystem, offering short-haul flights to local destinations that are often overlooked by VNA and Vietjet This integration is complemented by a comprehensive range of accommodation services, including resorts and hotels.
Figure 3.6: Price comparison of four Vietnam aviation companies- Dec 2018-
Bamboo Airways is emerging as a strong competitor to Vietjet in the mid-tier customer segment, offering three distinct seat classes: Bamboo Eco, Bamboo Plus, and Bamboo Business The pricing for Bamboo Business class is comparable to Vietjet's Sky Boss class, while being approximately 13% lower than Vietnam Airlines Additionally, Bamboo Eco provides attractive pricing that is significantly lower than both Vietjet and Vietnam Airlines, with discounts ranging from 9% to 61% depending on the occasion.
Figure 3.7: Bamboo transportation term and regulation- Source: Bamboo Airways website
Vietjet Air's transportation terms and regulations are detailed on their official website, providing essential information for travelers For the latest updates and comprehensive guidelines, users can access the full document directly from the site.
According to Yang and Zhang, Adler and Liebert, and Jiang and Zhang, several factors contribute to the failure of airline entrepreneurs in achieving Key Performance Indicators (KPIs) One major reason is the rise of low-cost carriers, which provide travelers with more transportation options and intensify competition in the short-distance transport market, particularly against high-speed rail This dynamic competition forces less effective airlines out of the market, leading to harsher competition focused on pricing and service quality As service quality becomes increasingly vital to air travelers, it significantly influences customer loyalty within the airline industry Research indicates that various aspects of the air travel experience can shape customers' perceptions of service quality.
Air travel encompasses a comprehensive experience that includes ticket booking, check-in procedures, and completing the itinerary The attitude of airline staff plays a crucial role in customer satisfaction, as they are the face of the airline and convey its values Unprofessional and discourteous behavior can lead to negative perceptions of value and diminish overall customer satisfaction.
Besides core product is transportation, ancillary service still contributes to success of LCC, customer evaluate satisfaction in all serviced provided and add- value service is not excepted
Tourism is a vital component of the global economy, with arrivals hitting 10 billion in 2017 Despite this growth, travel barriers persist, as many countries implement visa restrictions to control the entry of travelers.
Travelers must adhere to the visa submission process by applying at the consular headquarters of their intended destination This process often involves fees and lengthy waiting times, and applicants may face denials with little to no explanation Various factors, including political, economic, and security concerns, can contribute to restrictions at country borders.
Initial symptoms and potential problems
The initial symptom and potential problems map is crucial for identifying issues in the project It serves as a foundational tool for troubleshooting and enhancing overall performance For further insights, please refer to the latest version of the thesis available for download.
Main problem validation
The depth interviews conducted with the management, has explained that competition, visa barriers are temporary
Mr Son- Commercial Director shared some view about competition among airlines
Competition is a fundamental aspect of every industry, including aviation In Vietnam, the aviation market is dominated by four key airlines: Vietnam Airlines (VNA), Jetstar, Vietjet, and Bamboo Airways Vietnam Airlines adopts a traditional model, offering high-quality services at premium prices, while Vietjet targets budget-conscious travelers by providing low-cost tickets that align with the financial capabilities of most Vietnamese consumers.
Vietjet faces unavoidable competition in the airline industry, particularly from Vietnam Airlines (VNA) However, it holds a competitive edge in the middle and low customer segments by offering reasonable prices.
VNA is striving to achieve a 4-star airline rating by offering exceptional and luxurious flight services, while Vietjet targets budget-conscious customers, aligning with the income levels of many Vietnamese The entry of Bamboo Airways into the market does not pose significant challenges to established airlines like VNA or Vietjet, as Bamboo Airways requires time to establish its operations and for customers to become familiar with and experience their services.
Systematic factors like competition and visa regulations are unavoidable; however, low customer satisfaction is a concerning issue The primary cause of this dissatisfaction stems from a decline in service quality, which adversely affects customer experiences This decline often leads to an increase in complaints, prompting customers to switch airlines in search of better services.
Delayed and cancelled flights can arise from various subjective and objective factors, as noted by Mr Son from the Commercial Department In 2018, Vietjet entered into a contract to purchase new A320/A321 aircraft from Airbus However, the delivery schedule was delayed by three months, resulting in insufficient seat capacity and postponements in launching new routes.
A shortage of aircraft results in reduced revenue and operational efficiency, leading to schedule changes and difficulties in roster management Additionally, if one flight is delayed, it can cause a domino effect, resulting in subsequent flights being late as well.
Delayed flights come from bad weather condition, which are unavoidable risks
Technical issues contribute to flight delays, but they are not a significant factor Vietjet boasts a technical reliability rate of 99.64%, ranking it among the top airlines in Asia Consequently, the airline should focus on enhancing its timeliness by collaborating closely with Airbus manufacturers.
Vietjet's in-flight service challenges stem from its cost-saving strategy, with a fleet designed for low-cost operations featuring seat configurations of 180 to 230 The airline's long-standing focus on minimizing costs targets price-sensitive leisure travelers, which necessitates significant investment in diverse and convenient in-flight entertainment However, the limited response from passengers on short, point-to-point routes raises concerns about the effectiveness of this investment In-flight income, a key component of ancillary revenue, accounts for nearly 23% of Vietjet's total revenue and has shown stable growth of 4% annually over the past three years Consequently, the shortcomings in in-flight service are not expected to significantly impact the airline's key performance indicators (KPIs).
Vietjet must prioritize enhancing the behavior of its ground services agents, as highlighted by Mr Cuong, the Head of the Customer Services Department, who expresses concerns regarding customer dissatisfaction with the attitude of the ground staff.
Ground staff are crucial in delivering services to customers, yet their skills in handling unexpected situations and persuading passengers are lacking In 2018, only 32% of passengers reported satisfaction with Vietjet, a decline of 13% from the previous year The customer service department frequently receives complaint letters, primarily regarding dissatisfaction with staff behavior.
Ground service agents serve as the primary representatives of airlines, directly interacting with customers and acting as the main point of contact between the organization and its clientele The Service-Profit-Chain model by Hesket, Sasser, and Schlesinger (1997) emphasizes that employee performance is crucial for customer satisfaction, establishing a strong link between employee satisfaction, productivity, customer satisfaction, and overall company profitability However, in the case of Vietjet, many ground staff exhibit unprofessional performance, resulting in a diminished value of services provided to airline customers.
- Firstly, representatives and check in staff have unprofessional manner in words, welcoming and attitude
- Secondly, customers complain about no fully support from staff, they have no persuasive explanation in charging fee regulation at the airports
- Ground staff have inconsiderate instruction with passengers take flights at the first time
A recent report by Vietjet's mystery shoppers team reveals that the check-in staff at airports have a compliance rate of only 50%, indicating below-average service quality and poor work performance.
Items Criteria Description Full compliant
CKS01 Attitude Be nice when communicate with passenger 23% 17% 60%
CKS02 Manner Proficient action, react situation fast 28% 36% 36%
Staff's manner and posture are always attentive, professional (chat, use private mobile phone, eat when serving passenger are not allowed)
CKS04 Uniform Staff's uniform are clean and tidy 38% 27% 35%
CKS05 Make-up As regulation 61% 23% 16%
CKS06 Jewelry Accessories (Earring, bracelet, 58% 19% 23% tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
32 | P a g e ring…) as VJC's regulation CKS07
Use 2 hands in taking and giving document with customer
Call passenger's name in serving process (at least once)
Guiding passenger departure gate, board time, way through security area, immigration zone
CKS11 Use whole hand To guide passenger 10% 18% 72%
Say thanks and enjoy flying
Say thanks and enjoy flying when finishing check in procedure
Release arbitrarily passenger who go with improperly hand luggage or oversize baggage without fee
Table 3.9: Ground staff evaluation report 2018- Source: Customer services Department
Mr Cuong mentioned the concern with ground staff attitude has exist for a long time but employees do not acknowledge comprehensively all the serious consequences themselves
To address the declining service quality that is causing customer dissatisfaction and prompting them to consider alternative airlines, it is crucial for the management board to identify and implement effective solutions This issue not only impacts customer perceptions but also results in a decrease in passenger transportation revenue, highlighting the need for immediate action to enhance overall customer satisfaction.
Recent studies have highlighted the link between customer satisfaction and employee attitudes, emphasizing the importance of service quality for business success In the context of airline services, there is a strong correlation between frontline staff performance and customer perceptions of service quality.
The primary issue affecting Vietjet's customer satisfaction is the unprofessional attitude of the ground service staff at airports.
Problem consequence
Effective staff management is crucial for service-oriented organizations, as front line employees serve as the vital link between the organization and its customers The quality of service delivered by these staff members significantly influences customer evaluations, impacting their satisfaction and future purchase intentions In the aviation industry, ground service agents exemplify front line staff, playing a key role in the overall travel experience Their behaviors, such as attentiveness, courtesy, and friendliness, are essential for fostering positive interactions with passengers Additionally, maintaining low staff turnover is beneficial, as it reduces recruitment costs and enhances organizational performance.
CAUSES OF PROBLEM
Potential causes
Numerous studies have examined how employee behavior influences service quality and overall customer satisfaction Key factors contributing to negative employee attitudes include workplace stress, training policies, and motivation techniques.
Stress negatively impacts employee work attitudes, leading to absenteeism, tardiness, and reduced productivity These behaviors are fundamental indicators of overall job satisfaction and are closely linked to staff performance.
In an interview with Ms Van, a representative of Vietjet, she was questioned about passenger complaints regarding the impolite and unprofessional behavior of the ground service staff Ms Van did not recognize any lack of enthusiasm or energy in her communication with passengers.
Ms Van expressed that maintaining happiness throughout the day is challenging, particularly for those working shifts that begin as early as 3:30 AM or end as late as 2:00 PM Each shift lasts for 8 hours and involves a high volume of passengers, which can lead to stressful situations She highlighted the difficulties of interacting with unsympathetic customers who often present demanding requests.
When having discussion with Mrs Hong- manager about negative behaviors of ground service agents, she shared some comments:
“Working in airport environment is quite challenging, indeed married female staff
Working in shifts without a fixed schedule for family care, coupled with a high-pressure environment and diverse customer interactions, presents significant challenges for many employees.
35 | P a g e balance work and lives they usually call sick, absence from work or have inactive attitude in work.”
Stressful conditions negatively impact the work performance of ground service agents, leading to inactivity Shift work disrupts the work-life balance, affecting both physical and mental health It is crucial for Vietjet's management to dedicate more time to investigate and address the pressure experienced by staff in the working environment.
Effective training and development are crucial for enhancing employee performance in the airline industry, as a lack of proper training can lead to decreased work efficiency Modern job complexities necessitate that workers receive adequate training to adapt to rapidly changing technologies and job requirements Organizations must implement comprehensive training programs to equip both new and existing employees with the necessary skills and knowledge, ultimately fostering a positive work attitude and improved performance Additionally, ongoing efforts to measure the impact of training and identify key factors for effective learning are essential for achieving organizational goals.
According to sharing point of view, Ms Van has some concerns regarding to how to respond and treat with incorporate customers
“Most of us usually dealt with fastidious customers, they violated airlines ’policy but expressing incorporate and rude words, behaviors with ground service agents
Some individuals even resort to threats of violence, making it difficult for us to communicate effectively As a result, negotiations become an impossible task.
In the service industry, personal skills are crucial for success, and equipping employees with the necessary qualifications is essential Vietjet recognizes the significance of customer service; however, there are ongoing concerns among managers regarding the training of ground service agents Mrs Hong highlighted the current lack of formal training as a pressing issue.
Vietjet is experiencing rapid growth in its aircraft fleet and operational network, resulting in a significant demand for human resources Recruitment and training, including recurrent training, are major challenges for the airline Most service agents undergo on-the-job training and begin working just two weeks after being hired, lacking formal training and recurrent courses for expertise evaluation This gap leads to incomplete knowledge of the airline industry, regulations, and policies among employees.
Interviewees highlight a significant gap in training programs for Vietjet ground service agents, particularly in areas such as providing effective customer instructions, managing stress, and delivering professional service.
Insufficient motivation and promotion strategies, such as target setting, feedback provision, and transparent recognition of good performance, adversely affect employee behavior According to Maki (2018), work motivation is defined as "a set of energetic forces that originates both within as well as beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration." Internal factors like motivation and promotion policies significantly influence staff through achievement, recognition, and compliments.
Motivation and promotion are crucial in encouraging employees to exert effort in their work, significantly influencing their customer service behavior When employees are not satisfied or happy with their work, it becomes challenging for them to consistently inspire and exhibit positive behavior towards customers.
Vietjet has implemented effective policies to motivate and promote its employees, as confirmed by manager Mrs Hong The airline's benefits are competitive compared to VNA, offering staff and their families 10 free return tickets and organizing monthly teambuilding activities Additionally, Vietjet employs a KPI evaluation system biannually, fostering a competitive work environment After two years of service, employees are eligible for salary reviews, promotions, and departmental transfers based on their qualifications and experience The company prioritizes internal candidates for job openings, encouraging employees to refer friends and relatives However, the motivation techniques currently in place may not adequately address the needs of shift workers, such as Ground Service Agents, highlighting an area for management to improve employee morale.
Main cause validation
Through an analysis of the cause and effect tree, in-depth interviews with staff and management, secondary data from the Customer Service Department, and relevant theories, it has been identified that the primary issues leading to unprofessional attitudes among ground service staff are significant.
38 | P a g e are Stress on work, Training and Motivation They are considered as serious problem that board of management should undertake appropriate strategies to resolve theses
Work-related stress is often linked to unprofessional behavior among staff, particularly in the rapidly growing aviation sector, where Vietjet's swift development has heightened pressure on employees Shift work is a common practice in airlines, especially during peak seasons like holidays, as airports operate around the clock to meet passenger demands Consequently, the pressure of shift work is a challenge that Vietjet must address through compensation strategies, although a complete resolution may not be feasible Additionally, stress is often a personal issue for employees, many of whom lack the skills to balance their work and personal lives Implementing training programs can effectively equip staff with the necessary skills to manage stress in both their professional and personal spheres Ultimately, employees should take an active role in addressing their own work-related stress.
The issue of motivation and promotion is complex and cannot be resolved quickly due to several factors Firstly, the promotion process must be regulated to ensure distributive justice, yet biased candidates often qualify for the standby list Additionally, social issues like personal relationships and discrimination contribute to subjective judgments by management, leading to biased promotions Furthermore, the role of a supervisor necessitates not only five years of work experience but also the qualifications to effectively manage and organize rosters.
Vietjet enhances its success by inviting leaders from Vietnam Airlines and other travel organizations to discuss value creation However, addressing these challenges amicably proves to be a complex task that extends beyond the scope of this thesis.
Inadequate training programs can significantly impact employee attitudes and perceptions, leading to diminished morale Furthermore, denying employees the opportunity to participate in training courses can hinder their performance and the overall quality of service Effective training is essential for enhancing staff capabilities and ensuring high service standards.
A negative attitude can significantly hinder an organization's productivity Research indicates that many employees believe insufficient training is a key factor contributing to this issue.
A negative attitude in the workplace can be contagious, as noted by Mack S (43), who emphasized that one employee's complaints can lead to widespread dissatisfaction among colleagues This poor attitude not only affects morale but can also result in mistakes and decreased performance, ultimately lowering overall productivity.
From the staff's viewpoint, a cut in the training budget is perceived as detrimental to their benefits The absence of training or budget reductions are seen as indicators of declining organizational health and a drop in employee morale, as noted by Longenecker and Fink.
(41) mentioned that the talented or skilled staff have tendency to leave company if training and development opportunities for promotion are poor
Therefore, the thesis will concentrate on training issue to resolve unprofessional ground services agent attitude to improve customer satisfaction because of some reasons:
The Vietnamese aviation authority prioritizes the training of airline staff, emphasizing its importance for ground service agents Mr Quoc, the Director of Vietjet Training Centre, highlights the critical role that effective training plays in enhancing service quality within the industry.
Vietjet faces challenges in effectively implementing training and recurrent courses for ground staff due to budget constraints typical of low-cost airlines New recruits undergo a one-month initial training program, which includes two weeks of theoretical instruction in aviation and two weeks of on-the-job training During this period, trainees are expected to familiarize themselves with reservation systems and airline regulations However, there is a lack of emphasis on developing personal skills to handle difficult customers, leading to unsatisfactory interactions and behavior among staff, which negatively impacts passenger experiences.
Figure 4.2: The general process of initial training for ground staff in Vietjet – Source:
Vietjet currently lacks a comprehensive procedure for the periodic training and retraining of its ground staff New employees are able to acquire essential aviation knowledge, airline procedures, and system operations skills in just one month.
Training course includes two section Theoretical and On the job training
- Theoretical training will provide knowledge concerning general aviation, dangerous goods regulation, airlines procedure at check in stage and technical skills to operate check in systems
The two-week on-the-job training program equips trainees with essential skills to assist passengers with the check-in process, boarding procedures, and effectively managing unexpected situations like gate changes, flight delays, or cancellations.
Besides, recurrent course has not well implemented for ground staff, examining and evaluation are not considered, which create denial participation in a large of staff Ms
Van – representative of Vietjet working more than 4 years shared concerns about lack of recurrent training for ground services agents
People department completes procedure concerning to recruit new ground services agent
Vietjet Training Center set up for training schedule
- On the job training (two weeks)
Managers are finalizing the training course for new ground staff and are establishing shift rosters for their work schedules.
Vietjet lacks a recurrent training program for its existing employees, providing only initial training during the onboarding process There is no ongoing evaluation or training, with updates communicated solely through necessary documents.
The primary goal of training is to enhance employees' knowledge and attitudes towards their assigned tasks, yielding both short-term and long-term benefits for both staff and the organization According to Cook (1999), training provides numerous advantages that contribute to overall performance and development.
- High morale: staff receiving good training will increase confidence in work and motivations
- Lower turnover: training brings to security at workplace where labor turnover and absenteeism is avoided
- Training helps to enhance and increase understanding and involvement of staff, provides skills and abilities needed applied in challenging situation
- Provide recognition, help to enhance responsibility of increased pay and promotion