Introduction
Companies use a variety of metrics and evaluation tools to examine the efficiency of their work. Such a quantitative representation of their work helps shape strategies for future operations based on current performance. The report published by The Emirates Group displays the specific approaches that this organization adopts to determine the efficiency of its work. This paper aims to examine customer measurements and their application by reviewing the Emirates report.
Report Review
Firstly, it is necessary to identify necessary customer measurements and determine which specific metrics are used by Emirates. According to Bough et al. (2017), using these approaches to assess the level of services a company provides is the first step towards creating an appropriate strategy for improvement. However, many executives become overly cautious of this component and use too many metrics, which obstructs one from shaping a clear vision of the issue.
Customer experience and satisfaction are among the crucial elements that businesses have to measure. Simsek and Demirbag (2017) state that higher customer satisfaction rates usually result in more profit for a company. According to the report, Emirates aims to develop a relationship with its passengers that would be characterized as loyal (Annual report 2017-2018 2018, p. 2). However, the company does not provide data that would display the actual perception of its services from a customer perspective.
The primary metrics that enable an understanding of the scale of work that an airline performs is the number of people who choose it for their travels. The report provides an understanding of the number of clients that use the services of Emirates, which were more than 58 million people in 2018 (Annual report 2017-2018 2018, p. 2). Besides, this data provides an understanding of the cargo that was carried. Additionally, these statistics showcase that the company was able to increase the number of passengers over the years, which represents the overall growth of Emirate’s operations.
The passenger seat number is a metric used to define how many seats are occupied by passengers at a given time. This indicator is crucial for aircraft companies because it accounts for the sales a company was able to make and thus can provide insight into the revenue. According to Beers (2018), “airlines have high fixed costs associated with each flight,” which results in a need to cover these expenses through selling seats (para. 2).
It should be noted that airplanes cannot be operated without a full crew onboard and additional elements such as fuel or passenger entertainment. Evaluating the passenger seat factor is especially important because it determines whether a particular company can pay for fixed expenses with the current passenger load. However, a ratio that is lower than average can still mean that an airline is profitable (Goldstein 2018). Thus, it is necessary to review this metric together with a financial statement to gain a cohesive understanding of operations.
Conclusion
Overall, in its annual operations report Emirates accounts for the major metrics that are necessary to determine the efficiency of this company’s work. The most important data point that is displayed is the passenger seat number, which conveys an understanding of the ability to generate revenue that covers operational costs for flying an aircraft. However, Emirates can add metrics such as customer satisfaction rates and retention to improve the understanding of service quality and improve the organization’s daily work.
Reference List
Annual report 2017-2018. 2018. Web.
Beers, B 2018, How does load factor impact airline profitability? Web.
Bough, V, Breuer, R, Fanderl, H, & Neher, K 2017, Four ways to shape customer-experience measurement for impact. Web.
Goldstein, M 2018, ‘Meet the most crowded airlines: load factor hits all-time high report’, Forbes. Web.
Simsek, K, & Demirbag, O 2017, ‘Modeling service quality, customer satisfaction and behavioral intentions in the airline industry: a SEM approach’, The Journal of International Scientific Researches, vol. 2, no. 6, pp. 11-29.