A study of service innovation in airlines based on experiential services

The airline industry is forced by the increasing worldwide competition due to the development of economic globalization and technology advancements. Competitive advantage undoubtedly can come from innovation in services. Southwest Airlines achieved an enviable position as the most effective airline; its success was due to process innovation in areas like reducing airport turnaround times. Consequently, the airline industry needs to further leverage external deregulation as well as internal restructuring to establish more efficient and competitive business models. Aside from basic cost cutting, innovation may become the decisive driver of progress, comprising advanced business models, customers’ experiential service, and technologies. Because the airline service can be seen as a journey, innovation takes place at each of touch points as well as of the overall journey itself. So this study focus on innovation in experiential service, five distinct design areas is discussed.