CASE STUDY SYNOPSIS

CASE STUDY SYNOPSIS 

1. Introduction 

1.1 Changi Airport Group 

Changi Airport became operational on 1 July 1981 and officially opened on 29 December 1981. Currently, Changi Airport has four terminals and Project Jewel which is scheduled to be opened in April 2019. There are also upcoming plans to build Terminal five which will be bigger than Terminal two and three and would be able to handle up to 50 million passengers in the terminal alone (Tan, 2014). The Civil Aviation Authority of Singapore (CAAS) used to manage the airport until it was corporatised on 1st July 2009. CAAS was then restructured into two different entities comprising of Changi Airport Group (CAG) which oversees airport operations and CAAS overseeing regulatory issues (Tan, 2014).

Changi Airport is a world-class airport having won the best airport awarded by Skytrax for six consecutive years (Changi voted World’s, 2018). This means that it is essential for Changi Airport to continue delivering the best passenger experience for all travellers. The values set by Changi Airport facilitates all decisions and drives the organisation forward. The most important factor would be their world-class service through their passion and culture of excellence (Our belief, n.d.). In addition, the main contributing factor to Changi’s success is the pervasive culture of service which can be achieved by delivering the “Changi Experience” (Wirtz, 2017). Despite having a record of 65 million passengers passing through Changi Airport in 2018, Changi Airport still sees the need to constantly improve on their service standards (Changi Airport, 2019).

2. Purpose Statement 

This report identifies the gap between CAG’s promised service delivery and the passengers’ perception regarding the issue of baggage collection delays. The lack of communication between Changi Airport, its’ employees and passengers were identified as the service gap affecting a seamless Changi experience promised by Changi Airport Group. Improved service recovery methods are essential to close the identified service gap. Hence, the objective of implementing the new service recovery process is to ensure information is conveyed seamlessly and accurately with adequate communication to both passengers and employees.

3. Problem Identification 

Research has shown that lighting activity and bad weather conditions have affected 225 flights out of 14,971 flights from January to October which is almost triple the average of 78 cases per month in 2017 (Changi Airport warns, 2017). Hence, unforeseen circumstances such as bad weather conditions might lead to a delay in the baggage transfer from the aircraft to the baggage conveyor belt (Lim, 2017). During monsoon season, delays of more than 35 minutes to retrieve their baggage can be expected which does not align with CAG’s vision (Lim, 2017). It is crucial for CAG to control the situation as this is one of the initial touch points for passengers. Therefore, it is important for employees to have constant interdepartmental communication to ensure the correct message is being passed to the passengers.

3.1 Current recovery actions 

According to observations during delays, an announcement would only be made after a period of time. Signages that are known as “lighting cubes” would be deployed on baggage belts of affected flights to alert passengers of baggage delays (Chan, 2017) (See Appendix A). Subsequently, CAG engages Changi Youth Ambassadors (CYA) to roll out service recovery trolleys with refreshments and beverages for passengers who are waiting for their baggage. Other recovery measures include converting some space in the baggage claim hall of terminal two and three into a temporary lounge, providing passengers with wifi and power sockets as well as a complimentary home delivery option in extreme cases (Changi Airport warns, 2017).

However, only limited relevant departments such as ground operations department and baggage handling team are aware of the baggage status. Therefore, it will be beneficial to transmit the information into a centralised system which provides every department with access. This is a necessary step towards improving interdepartmental communication. For example, many passengers would approach the Changi Experience Agents (CEAs) at the information counter for real-time updates when faced with baggage delays. As such, it would aid the CEAs in crafting a better response to passengers. 

However, the current recovery actions might not solve the issue in the long run as it will not be sustainable once Changi Airport expands with Terminal 5 in the future. Changi Airport may face a shortage of manpower as a result of rolling out the service recovery trolleys during peak hours with the increased number of arriving flights.

Furthermore, pushing out service recovery trolleys does not solve the issue of the delay along with the lack of information communicated to passengers and time wasted. Although parts of the terminal are converted to a temporary lounge for waiting passengers in some extreme cases, a lot of time is wasted when waiting for these measures to be carried out. As a result, this could affect the overall passenger experience as CAG strives to create an enjoyable experience for passengers when they pass through Changi (Changi Airport, n.d.). Hence, based on the REACT technique for service recovery, CAG is lacking in communication and immediate reaction.

4. Implementation for Problem Resolution

As aforementioned, the current service recovery process only serves as a temporary solution to ease passengers’ anxiety. It does not eliminate passengers’ concerns due to the lack of communication. Therefore, the proposed problem resolution revolves around immediate reaction, providing adequate communication and targeting the concerns’ of the passengers.

4.1 Lounge

To improve service delivery, it is recommended that Changi Airport set up a permanent lounge for passengers affected by the baggage delays. The lounge would provide refreshments and entertainment to keep the passengers occupied while waiting. It would also provide updates on the baggage status to passengers that do not own the iChangi app. Furthermore, this can be utilised by high needs passengers such as the elderly, pregnant or those with young children. This makes the lounge multi-functional and not just limited to bad weather situations which justifies the need to build a completely new lounge. The staffing for this lounge will comprise of CYAs who are deployed during baggage delays. They would also be responsible for informing passengers on the latest baggage status updates. 

4.2 Baggage update system 

To pair with the “lightning cube” signages, a baggage update system will be integrated into the lounge and arrival hall to update passengers on their baggage status (See Appendix A). Furthermore, this system will be incorporated into the Changi Airport mobile application known as iChangi for the convenience of the passengers. This helps Changi Airport to communicate the current status of the baggages to both the passengers and employees. Additiona lly, employees at the information counter are able to access the central baggage update system to retrieve real-time updates, while other employees would be able to use the iPad distributed by CAG or their own devices to check the status via the application.

To facilitate the implementation of the baggage update system, training will be provided to all CAG employees to ensure that they are aware of this new system. In the event of frustrated passengers asking for information about the baggage delay, employees are able to use the application to update passengers of the progress accordingly.  This eases passenger’s anxiety and improves communication between employees and passengers.

5. Benefits 

The implementation of the above-mentioned problem resolution would affect the following stakeholders: CAG, Changi Airport’s employees and passengers. As mentioned by Richard Branson (Wagner, 2017): “Happy employees = happy customers”. Therefore, when the employees are satisfied, they would provide better service to the passengers.

5.1 Benefits for employees 

The real-time updates of the baggage collection aid in relieving employees’ workload. In bad weather conditions, this ensures that passengers would not swarm around the employees and make things difficult for them. Additionally, employees would be constantly updated on the latest situation which reduces their uncertainty and subsequently increases their work performance and productivity.  

5.2 Benefits for passengers 

Employees are able to better serve the passengers when things are running smoothly with constant updates on the latest baggage status. Additionally, the lounge provides a space for passengers that do not have the iChangi app to gain access to the updated baggage status as well. Other than communicating the baggage status, passengers have a proper location to rest and pass time while waiting for their delayed baggage. The entertainment and refreshment in the lounge keep passengers occupied which makes the wait less frustrating. Moreover, the baggage update system integrated into the iChangi application provides convenience and easy access to information. As it is available on the iChangi application, passengers are able to roam around freely and are not restricted at the baggage collection area which provides an opportunity for passengers to make full use of their time.

5.3 Benefits for CAG 

The robust information technology system of Changi Airport is one of the main reason for its success. Therefore, the implementation of the baggage update system would be aligned to the practice of Changi Airport (Choudhury, 2015). Furthermore, it would assist CAG in communicating the baggage status to passengers and employees. With better communication, employees have real-time information and are able to better serve passengers. When passengers are provided with better service, this increases passengers’ satisfaction and lead to positive word of mouth for Changi Airport. As a result, this boosts the brand reputation of Changi Airport. The positive brand image would attract both first-timers and return travellers to choose Singapore as their destination of choice, thereby increasing the annual passenger traffic and revenue for CAG.

6. Research method

Primary and secondary data were collected to identify the concerns and expectations of passengers. Data collected through this research will assist the team in providing suitable recommendations for CAG’s appropriate service recovery during a delay in baggage collection.

6.1 Primary Data 

The baggage collection area is in a restricted part of the airport which is not accessible unless the passenger has just landed in Singapore or is a staff member. As such, the primary data used are all the personal experiences of the team members and observations from a team member during her internship at CAG.

6.2 Secondary Data 

For secondary data, it was retrieved through newspaper articles, online reviews and other statistical information from various authorities and firms. These secondary data provides a more in-depth understanding of the current state of Changi Airport, and how current CAG’s passengers feel about the delay in the collection of baggage.

7. Conclusion 

With the existing issues faced by Changi Airport, we feel that there is a need to further improve on the service quality in these aspects. Therefore, the team concluded that there are many possible measures for Changi Airport to implement in order to overcome the service gap identified above. By erecting a permanent lounge, the team felt that Changi Airport would be able to maintain their status as the Best Airport in the World. At the same time, the baggage update system helps to communicate the status of delayed baggage to all affected parties such as employees and passengers. 

8. References

Changi Airport. (2019, January 29). Changi Airport crosses 65 million passenger mark in 2018. Retrieved March 15, 2019, from http://www.changiairport.com/corporate/media-centre/newsroom.html#/pressreleases/changi-airport-crosses-65-million-passenger-mark-in-2018-2829095

Changi Airport. (n.d.). Our belief. Retrieved March 10, 2019, fromhttp://www.changiairport.com/corporate/about-us/our-belief.html

Changi Airport. (n.d.). Adding That Special 'Changi Touch' to the Airport. Retrieved March 11, 2019, from http://www.changiairport.com/corporate/media-centre/resources/publication/issue-23/adding-the-changi-touch.html

Chan, S. K. (2017, December 05). Changi Airport Will Offer Refreshments To Passengers Affected By Delayed Baggage Due To Lightning. Retrieved March 15, 2019, fromhttps://mustsharenews.com/lightning-delayed-baggage-changi/

Channel NewsAsia. (2018, March 22). Changi voted World's Best Airport for 6th consecutive year. Retrieved March 15, 2019, from https://www.channelnewsasia.com/news/singapore/changi-voted-world-s-best-airport-for-6th-consecutive-year-10065554

Channel NewsAsia. (2017, December 04). Changi Airport warns of potential baggage delay due to monsoon season. Retrieved March 12, 2019, fromhttps://www.channelnewsasia.com/news/singapore/changi-airport-warns-of-potential-baggage-delay-due-to-monsoon-9466542

Choudhury, A. R. (2015, March 30). How IT helps Changi Airport to be smart, sweet and swift. Retrieved March 18, 2019, from https://www.businesstimes.com.sg/focus/in-depth/cio-speaks/how-it-helps-changi-airport-to-be-smart-sweet-and-swift

Lim, A. (2017, December 05). Bad weather may delay bag arrival at airport. Retrieved March 18, 2019, from https://www.straitstimes.com/singapore/transport/bad-weather-may-delay-bag-arrival-at-airport

Ministry of Communication Singapore. (2017, December 5). Changi Airport warns of potential baggage delay due to monsoon season [Channel NewsAsia]. Retrieved March 15, 2019, fromhttps://www.gov.sg/news/content/channel-newsasia---changi-airport-warns-of-potential-baggage-delay-due-to-monsoon-season

Tan, B. M. (2014, April 09). Changi Airport. Retrieved March 18, 2019, fromhttp://eresources.nlb.gov.sg/infopedia/articles/SIP_574_2004-12-23.html

    

    Wagner, R. (2017, February 27). Happy Employees Equal Happy Customers? Well, Yes, But It's

Complicated. Retrieved March 19, 2019, fromhttps://www.forbes.com/sites/roddwagner/2017/02/27/happy-employees-equal-happy-customers-well-yes-but-its-complicated/#7d1d52737c6e

Wirtz, J. (2017, March 30). Five business lessons from a world leading airport. Retrieved March 20, 2019, from http://thinkbusiness.nus.edu/article/five-business-lessons-from-a-world-leading-airport/

Appendices:

Appendix A: Changi Airport Lightning Cube

Source: The Straits Times

Appendix B: Baggage update system