Thai lion air cargo service must prioritize security

Abstract

This co-op project focuses on assessing the customer readiness for adopting online booking and tracking services in Thai Lion Air. The project aims to understand the factors that influence customers' willingness to use digital solutions for flight bookings and tracking, ultimately contributing to improved customer experiences and operational efficiency for the airline. Through a comprehensive methodology involving surveys and data analysis, the project provides insights into customer attitudes and concerns regarding the transition to digital platforms. The results of this study can guide Thai Lion Air in designing effective strategies for successful digital solution adoption.

Over the course of this project, we will investigate the essential components necessary for a successful introduction of online booking and tracking services in cargo service department. This includes evaluating technological infrastructure, assessing customer readiness, addressing expectations and concerns, and more. Our collaborative efforts will not only lay the groundwork for Thai Lion Air Cargo Services but also provide valuable insights for other cargo transportation companies looking to embark on their own digital transformation journeys.

The collaboration between Thai Lion Air Cargo Services and Mr. Narathon Praditanusorn, Students from King Mongkut’s university of technology north Bangkok, exemplifies a commitment to innovation and customer-centricity in the cargo transportation sector. Through this cooperative project, we intend to demonstrate how pioneering spirit, industry-academia collaboration, and forward-thinking can reshape cargo logistics for the digital age.

The introduction of an online booking and tracking system presents a viable solution to these challenges. While Thai Lion Air currently offers phone reservations and inquiries, the integration of an online platform would significantly streamline the entire process. Online booking and tracking would not only reduce delivery times but also provide customers with comprehensive information about shipping goods. This would include details on flight schedules, eligible types of products, and various airline requirements. Moreover, customers would be able to obtain approximate service fees and rates for their products, offering them greater transparency. The tracking feature would enable customers to monitor the progress of their deliveries, ensuring their goods are on the right track for timely and correct delivery.

Consequently, conducting a customer readiness survey to assess their willingness to adopt online platforms for booking and tracking services is a prudent and forward-thinking idea. Such a survey would not only gauge the demand for such a system but also help the Thai Lion Air Cargo Service Department tailor their services to the evolving needs and preferences of their customers. In doing so, the airline can improve customer satisfaction, enhance operational efficiency, and maintain its competitiveness in the industry.

The impact of technology on human life and the business landscape is pervasive. This transformation touches every facet of personal and professional productivity, ushering in a new era where effective collaboration with technology is as crucial as collaboration with humans (Tinko Stoyanov, 2017). The integration of digital media, mobile devices, and the transformation of information flow are propelling organizations towards more open, personalized, efficient, collaborative, and creative operations.

Online Booking and Tracking Services in the Air Cargo Industry:

The customer journey is at the core of digital transformation efforts, as exemplified in Janike Heimonen's work. By focusing on quality, value, and empowering customers with real-time tracking capabilities, companies can enhance the overall customer experience. An improved customer experience leads to higher satisfaction and loyalty.

Angelia Christa Mambu and Merinda H. C. Pandowo (2019) provide a relevant case in point. Their study on Lion Air's online booking system highlights the importance of responsiveness and reliability. The customer's perception of attributes related to online reservation systems plays a pivotal role in shaping customer preferences. This research reveals that while the attributes may be important for customers, the actual performance of these attributes may fall short of customer expectations, thereby highlighting the critical need for improvement.

Despite the rapid evolution of technology in the aviation sector, the air freight industry has been relatively slow to embrace digitization. Passenger airlines have embraced digital channels, enabling transparent product comparison, shopping experiences, and electronic ticketing. In contrast, air freight still relies on traditional channels for booking and inquiries, along with multiple paper documents for shipments (Janike Heimonen, 2021).

The slow adoption of digital technologies in the air freight industry highlights a pressing need for change. As highlighted by SiaPartners (2018), the industry's pressure to transition towards digital and omnichannel solutions is unmistakable. The digitization of air cargo services promises a new value proposition and higher customer expectations, shifting the industry from traditional B2C and B2B models to a more inclusive "All-to-All" framework.

Where:

Data Collection:

To collect data from Thai Lion Air customers and assess their readiness for online booking and tracking services, a comprehensive survey questionnaire will be employed as the primary data collection tool. This questionnaire will be carefully designed which the index of item-objective congruence (IOC) evaluation will be an integral part of the methodology. The IOC, developed by Rovinelli and Hambleton (1977), is one method for quantitatively measuring content experts' judgments of items to evaluate the fit between test items and the table of specifications (Turner & Carlson, 2003). Furthermore, Turner and Carlson (2003) reference Berk (1984) as saying that the most important assessment during the content validation stage is an evaluation of the match between items and objectives. Therefore, the IOC evaluation will be conducted to meticulously review and refine the content and structure of the questionnaires employed in the survey. This step is crucial to ensure the accuracy, clarity, and consistency of the questions being presented to the customers. Through the IOC evaluation, we will verify that the questionnaire effectively addresses the key aspects of customer readiness for online booking and tracking services within Thai Lion Air, enhancing the overall quality and reliability of the data collected to gather valuable insights and perspectives from a diverse range of customers. It will encompass a variety of questions that aim to gauge customers' familiarity with digital technologies, their current usage of online booking and tracking services, and their preferences for the same. The survey questionnaire will serve as a pivotal instrument in gathering quantitative data, allowing for a holistic understanding of customer attitudes and behaviors related to digital innovations in the context of Thai Lion Air's services. It will be administered to a representative sample of customers, ensuring that their feedback and responses are accurately captured and analyzed to inform future strategies and service enhancements.

Figure 3: Second part of the IOC questionnaire

Figure 4: Second part of the IOC of questionnaire

Calculating the IOC

IOC = Item-Objective Congruence Index

Questions with an IOC value between 0.50 and 1.00 are considered to have an accuracy level that makes them suitable for inclusion in the questionnaire.

Questions with an IOC value lower than 0.50 are considered to have inadequate alignment with the objectives and must be improved before being used in the questionnaire.

Readiness For Online Services:

Question A1: How receptive are you to the idea of utilizing online platforms for booking and tracking cargo flights? Respondents are required to rate their openness on a scale from 1 (Not open at all) to 5 (Very open).

B3: Access to exclusive offers and discounts.

Concerns and Expectations:

C4: Reliability of the online platform during peak times.

Factors Influencing Adoption:

D4: Availability of customer support.

D5: Familiarity with digital platforms.

3. Assistance from a dedicated call center.

Furthermore, there will be a section for collecting Suggestions and Expectations to gather feedback.

Figure 6: Second part of Questionnaire

Data Analysis:

The formula for calculating the sample size is as follows:

Given the past year's average monthly population of 300 customers using the cargo service and the typical precision level of 5%, the sample size (n) is computed as follows:

Table 2: The gender of Thai Lion Air Cargo's customers

Gender Analysis:

Table 5: The income of Thai Lion Air Cargo's customers

Income Analysis:

For those who reported being "Somewhat familiar" or "Not familiar at all" (12.3% and 9.4%, respectively), specific strategies should be implemented to bridge the familiarity gap. This might include providing user-friendly guides, tutorials, or customer support services to assist and educate these users. Ensuring that the online booking and tracking system is intuitive, easy to navigate, and supported by clear, concise instructions will be crucial to accommodate customers across all familiarity levels.

Table 7: The Frequently of Thai Lion Air Cargo's customers

Table 8: Knowing Company of Thai Lion Air Cargo's customers.

Knowing Company Analysis:

Table 9: Readiness for Online Services of Thai Lion Air Cargo's

Table 11 Concerns and Expectations of Thai Lion Air Cargo's

The "Clarity and accuracy of flight information (C2)" is also highly rated with a mean score of 4.54, highlighting that customers have a strong expectation for transparency and precision in the information provided by the online platform. Any discrepancies or inaccuracies in flight details can lead to a loss of trust and confidence in the online service.

Last, the "Ease of use of the online platform (C3)" is a key factor with a mean score of 4.47. This demonstrates that customers expect a seamless and user-friendly interface when booking and tracking cargo flights online. A complicated or unintuitive system can be a significant deterrent, impacting the overall customer experience.

In the "Factors Influencing Adoption" section, "Customer support availability (D4)" is the top-rated factor with a mean score of 4.54. This underscores the significance of providing accessible and effective customer support. Customers value the reassurance that they can seek assistance when needed, and the availability of a responsive support system plays a substantial role in their decision to embrace online services.

"Security and privacy (D3)" are the next most influential factor with a mean score of 4.40. Customers hold high expectations regarding data protection and privacy when using online platforms. Any perceived lack of security can be a significant deterrent, potentially dissuading users from adopting the service.

Table 13 Preferred Assistance of Thai Lion Air Cargo's

Customers

In conclusion, the assessment of customer readiness for online booking and tracking services in Thai Lion Air Cargo has provided valuable insights that can shape the company's digital service adoption strategy. The demographic analysis highlights the importance of tailoring marketing and user experience design to most of male customers, while not neglecting the female and diverse gender identities within the customer base. The focus on the 20-40 age range and the understanding of various occupations and income groups underscores the need for customized features and pricing strategies to cater to the diverse needs of the clientele. The high familiarity with online platforms presents an advantage, while strategies should be in place to bridge the familiarity gap for less tech-savvy customers. The frequency of cargo shipments emphasizes the importance of streamlining the booking process for frequent users and incentivizing occasional users to adopt digital services. The knowledge of how customers first become aware of Thai Lion Air Cargo underscores the significance of the website, word-of-mouth referrals, and social media in marketing efforts. The finding of this assessment indicates a strong receptiveness among customers of Thai Lion Air Cargo Service to the adoption of online booking and tracking services. Customers highly value the perceived benefits of convenience and time-efficiency when using digital platforms, emphasizing the need to emphasize these aspects in the digital solution's marketing. However, customers have substantial concerns and expectations related to data security, platform reliability, information accuracy, and ease of use, underscoring the importance of robust data protection measures and a seamless user experience. Furthermore, the availability of customer support plays a pivotal role in influencing adoption, and while cost-effectiveness is a factor, it appears to be of slightly lower priority. It is crucial to provide a comprehensive support infrastructure that caters to users' preferences for self-learning, in-person assistance, and call center support. To successfully implement these online services, Thai Lion Air Cargo Service must prioritize security, reliability, and user-friendliness while offering diverse support options to meet the varying needs of their customers.

References

Mambu, A.C., & Pandowo, M.H.C. (2019). EVALUATING THE ONLINE SERVICE QUALITY SYSTEM ON LION AIRLINE TICKETS SALES IN MANADO USING IMPORTANCE AND PERFORMANCE. file:///C:/Users/User/Downloads/iogi2018,+10+ANGELIA+OK.pdf

Tan, J. H., & Masood, T. (2021). Adoption of Industry 4.0 technologies in airports -- A systematic literature review. ResearchGate. https://www.researchgate.net/publication/357417821_Adoption_of_Industry_40_technologies_in_airports_--_A_systematic_literature_review

Turner, Ronna C., & Carlson, L. (2003). Indexes of Item-Objective Congruence for Multidimensional Items. International Journal of Testing, 3(2), 163-171. https://doi.org/10.1207/S15327574IJT0302_5

Thai Lion Air. (2013). About Us. Retrieved from Thai Lion Air Web site: https://www.lionairthai.com/en/About-us