PROPOSED BUSINESS STRATEGY FOR GARUDAMILES ON DEVELOPING AIRLINE LOYALTY BUSINESS IN INDONESIA

• Main Author: Muharam, Fakhrudin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35486
• Institution: Institut Teknologi Bandung

The aviation business in Indonesia has grown aggressively in the past 12 years. The domestic market has more than tripled since 2005. This condition has lead Indonesia grouped with the US, China, India and Japan as the 5 countries with the largest domestic aviation market in the world. Where Indonesia is ranked fifth. However, the Indonesian aviation industry faces a challenging situation. Market growth tends to be stagnant, Low Seat Load Factor (SLF), and overcapacity makes airlines difficult to achieve profitability, which happen also in Garuda Indonesia. Fierce competition and low margins make airlines need to to find alternative sources of income aside from ticket sales. Ancillary revenue has become a promising alternative in the last 10 years. And one of the tools is through loyalty programs. Garuda Indonesia has GarudaMiles as a loyalty program but has not yet provided a promising revenue contribution for the company. The purpose of this study is to analyze the existing conditions and formulate the best strategy for GarudaMiles so that the contribution of the contribution increases. The method used is Environmental analysis to analyze external and internal environment of GarudaMiles and then use SWOT framework to analyze and formulate the strategy based on finding from environmental analysis. Diamond Strategy concept used to sharpen the strategy that will be implemented. The implementation plan is also prepared to make the plan well executed.