Long-haul carrier Virgin Atlantic is recognised for going outside the box to improve the in-flight experience. Virgin has used comparable innovation in its behind-the-scenes activities, which is less well-known.
Virgin's passenger traffic had risen by 2004, which was a significant achievement considering growing fuel prices, an uncertain corporate climate, and a crowded labour market. This meant Virgin had to balance quick expansion with low overhead expenses. As a result, executive management made the decision to re-evaluate its operating model in order to improve efficiency, gain a competitive edge, and reduce costs.
Jeremy Carrington, Virgin Atlantic's head of procurement at the time, says, "Virgin thought outsourcing was a assignment writing help strategic way to accomplish these objectives but required more than an outsourced partner." “We needed a partner that knew the business as well as Virgin's distinct culture.”
Virgin chose WNS Global Services (WNS) after a thorough evaluation process due to its experience and established track record in the travel sector. “Knowledge of the industry was crucial. Carrington adds, "We wanted to make sure we picked a provider that understood the complexity of our company." “WNS' expertise was extensive, and its solutions were adaptable.”
The Virgin Atlantic account is presently serviced by 550 WNS employees in India. “The WNS-Virgin collaboration began with ten workers and a single procedure. We've scaled to 30 after success with one,” Grover says of the burgeoning connection. “We wanted to be a natural extension of the Virgin brand.”
WNS trainers were given insight into Virgin Atlantic's company-specific rules and processes before returning to India to educate their staff. The airline also dispatched specialists to India to build up systems and collaborate closely with WNS during the integration's early phases.
Change in communication
Virgin made securing internal support for the decision to offshore a top priority. The airline arranged for top managers to travel to India as ambassadors. “Our executives were able to witness first-hand how WNS functioned as a result of these trips. “We wanted to show that WNS was a partner who was dedicated to upholding our success standards,” Carrington adds.
Carrington stressed WNS's experience in the travel industry, extensive industry expertise, and flexible business strategy to colleagues at Virgin's headquarters. “The majority of workers completely supported and acknowledged the value of the choice to offshore,” says Carrington.
Reason behind the successful relation
Grover continues, "The top management of both businesses understood the importance of this connection and committed substantial time and effort to make it operate well." “We operated as a single company, tackling problems together and resolving them with pooled resources.”
“We were particularly pleased by WNS's collaborative approach,” Carrington adds. “From the beginning, WNS' top management was fully committed to the partnership. The team had direct communication with the CEO, CFO, and even the chairman.”
Meeting challenges ingeniously
WNS and Virgin came up with creative solutions to the industry's high turnover rates, which are frequently between 30 and 40 percent. Senior executives risked their bonuses to demonstrate their commitment to fixing the problem. Virgin Atlantic also collaborated with WNS to develop a comprehensive incentive programme for top-performing agents, which included retention bonuses and free plane tickets.
WNS has allowed Virgin to speed up current procedures and “implement new ones, like as booking amendments,” according to Carrington. Virgin may now focus on more strategic projects after standardising and automating procedures. According to Grover, offshoring allowed the airline to examine "business streams it had not before envisaged."
Offshoring also allows for more adaptable call centre services. “Because of the cost difference, we can hire more people for buy assignments. “With more personnel, contact centres can better handle changing call volumes and provide better overall service,” Carrington adds. Voice training has guaranteed that the quality of calls handled in-house and offshore is consistent.
Furthermore, the quality of client assistance has increased. By combining offshore and in-house teams.
SWOT Analysis of Virgin Atlantic
The service provided by Virgin Atlantic is efficient.
The customers are satisfied with Virgin Atlantic and they have a good number of affluent customer base.
In a year they approximately carry 5 million passengers.
Competition means a small market share for the airline.
The global presence is limited.
To penetrate into global market, they can use their brand image.
Virgin Atlantic has a scope to increase their international routes.
Changing aviation restrictions and rising fuel prices
Virgin Atlantic's profits may be impacted by rising labour expenses.
The European market is becoming more competitive.
Virgin Atlantic PESTLE Analysis
Virgin Atlantic is a British airline with headquarters in Crawley, England. These elements are extremely essential in the Virgin Atlantic's operations. The United Kingdom has two major political parties (the Labor Party and the Conservative Party), both of which have an effect on the country's political climate. Brexit will also have a negative influence on the number of individuals who visit the UK, resulting in a revenue loss for the firm.
The aviation sector has been harmed as a result of COVID-19's global slowdown. On May 5, 2020, the airline announced that it will lay off 3000 employees and reduce its fleet size to 35 by the summer of 2022. Following the pandemic, it would also not restart operations from Gatwick. Due to lower sales and losses, the firm is currently going through a difficult period.
Because Virgin Atlantic operates in so many countries, it must pay special attention to each country's culture, purchasing patterns, gender ratio, demographic profile, and so on. Because the United Kingdom accounts for a large percentage of the firm's income, the company cannot afford to ignore the country's social aspects.
Virgin Atlantic is a technologically focused company. These characteristics are extremely significant in university assignment help the aviation sector, as continual technological advancements enable airlines to enhance their safety standards while also lowering their operating costs.
Copyrights, patents, data protection, and intellectual property law are some of the legal elements that impact how businesses are conducted from one country to the next.
The aviation sector is frequently chastised for its excessive carbon emissions, which contribute to a slew of future issues. People are now aware of the company's efforts to solve these environmental concerns. As a result, they should follow environmental regulations and look for measures to minimize carbon emissions.
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