Measuring Performance: Factor In The Airline Industry Is Operating Ratio

Measuring Performance
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Measuring Performance
The two other metrics for measuring operation and load factor in the airline industry is operating ratio. The operating ratio measures the portion of income versus the operating expenses (Coyle et al., 2011). To break it down, it is about account income versus the expenses related to freight or passengers. Based on the load factor we measure how the plane capacities are utilized. Transportation services will be offered regardless of the levels of bookings made. Therefore, proper planning is important to factor in several elements (Coyle et al., 2011).
The other key to successful performance is customer satisfaction and loyalty; loyalty programs attract repeat services. A good measure needs to focus on good loyalty programs. The program should examine the number of both repeat members, new members and upgraded members (Coyle et al., 2011). With all this information, the airline can offer appropriate incentives for different groups of members, especially those who upgrade or recruit new members (Coyle et al., 2011). Since some people travel frequently, they can be loyalty club members. Measuring metric of repeat, new or lost customer enables the airline to improve on customer services and increase customer satisfaction through customer satisfaction measure (Coyle et al., 2011).
Other factors like delay, timeliness and flight cancellations that need to be measured. A good metric measure needs to factor in the number of flights each day, the times, the departure schedule, arrival and outcomes of the flight (Coyle e...