While studying Management Sciences, I found my interest in Marketing and especially in Digital Marketing. It was a great opportunity for me to do a six-month internship in Dream World Travel. At the start of the internship I had set several learning goals regarding the improvement of knowledge and skills on managing office projects and assignments.
My learning experience with DREAM WORLD TRAVEL begins with my joining from 16-01-2016. It consisted of 6 months, spending each month in 6 different departments of DREAM WORLD TRAVEL. My internship report contains all the information about my work experience with DREAM WORLD TRAVEL. I have covered all my activities performed in the span of 6 weeks in DREAM WORLD TRAVEL with my learning detail in the organization.
The applications of my classroom learning as I observed in DREAM WORLD TRAVEL are discussed with respect to each department. In report I did SWOT analysis and PEST analysis on DREAM WORLD TRAVEL, discover strengths and weaknesses of DREAM WORLD TRAVEL in market, brand recognition, operating structure, network presence, use of technology, customer loyalty, shifting customer needs and perceptions, major threats in form of high interest rates, and tough competitiveness by Air blue.
And in PEST analysis I identify major Government’s role in increasing competitiveness, inflation rate, and social environment. Technological innovation and its impact on distribution and cost synergies from industry integration. At the end I conclude with some of my suggestions to DREAM WORLD TRAVEL for its betterment and my actions which I could have taken if I were a manager in DREAM WORLD TRAVEL.
CENTRAL BACKGROUND INFORMATION
There are 36 operational airports. Karachi is World’s main airport, but significant levels of both domestic and international cargo are also handled at Islamabad and Lahore. The public-sector airline facing the competitiveness from a few private airlines, carries approximately 70 percent of domestic passengers and almost equal domestic freight traffic.
It provides over 6 percent of employment in the country and receives 12 to 16 percent of the annual Federal Public-Sector Development Program (PSDP). Government agencies dominate the sector.
DREAM WORLD TRAVEL has been divided into the following departments:
- Human Resource/personnel
- Flight Operations
- Airport Services
- Cargo Sales & Services
- Information technology
This department controls the training, flight engineering, planning and scheduling of flight operations. It is responsible for all the activities of the flight operation in DREAM WORLD TRAVEL and ensured central control over all flights. This department focus on planning the product design and manufacturing procedures, line maintenance and controlling the whole DREAM WORLD TRAVEL’s fleet. To bring changes with the new technology, it has a special branch named as “Development Engineering” to meet the future challenges in the field of operating innovation and technology.
The department has these lines:
- Planning and Project Division
- Quality Assurance Division
- Central Control Division
- Standard Division
- Planning & Scheduling Division
- Technical Division
- Coordination Division
- Training Division
Finance department is one of the largest departments in DREAM WORLD TRAVEL, which is liable for providing efficient budget. The probability of extending distributive, financial and other facilities is control by this department. Its further branches are as under:
- Planning and Budget
- Funds Management
- Internal Audit
- Revenue Management
Above are the operation sections in DREAM WORLD TRAVEL head office Islamabad.
Following are the subsections for each section;
- Disbursement section
- Refund section
- Agency Sales unit
HUMAN RESOURCES ASSESSMENTS
DREAM WORLD TRAVEL has four main sections for HR department. Each section consists of different divisions and subdivisions. HR has a Director; and each section has a General Manager and each sub section has a Deputy General Manager. Following are the sections and its sub departments are given below.
- Passenger Handling Service
- Information Technology
- Flight Services
- Flight Operations
- Procurements and Logistics
- Precession Engineering Complex
- Food Services
- Industrial Engineering
- Staff Development
- Recruitment and Placement
Policies and Compensation
- Policies and Procedures
- Compensation and Benefits
Marketing plans and policies are developed and being performed with the help of marketing segmentation process for targeting the right target audience.
DREAM WORLD TRAVELs marketing segmentation is divided into following ways and it analyze its market by using these segmentation stages;
- Income Segmentation
- Occupation Segmentation
In this segmentation DREAM WORLD TRAVEL focuses both on segments
- Occasion Segmentation.
- Hajj’s Occasion.
- Eid’s Occasion.
- New Years’ Occasion
- Loyalty Status
- Social Class
- Religious Travels
- World Expatriates
The existing market segmentation strategy of DREAM WORLD TRAVEL is reasonable enough because it covers all necessary parameters that are to be focused in doing market segmentation for Airline Company.
Major product lines market segments
- Actual product
- Actual product is traveling services
- Augmented product
- Providing map.
- Providing transport facility.
- Hotel facility
- Product and services classification
DREAM WORLD TRAVEL comes in the head of consumer product because it is used by the final consumer. No other process occurs in this product.
DREAM WORLD TRAVEL lies under shopping product because it is less frequently purchase. high prices, selective distribution places,
DREAM WORLD TRAVEL lies under specialty product because tough brand preference and loyalty, high prices, distribution at few outlets.
Growth rate for the entire industry
Once opened to competitiveness, the Pakistani airline industry underwent a dramatic change and, for the first time, the domestic passengers were able to choose an airline. Faced with increasing competitiveness, the domestic airlines had to offer the travelling public better services in order to retain their passengers or face the prospect of an early exit from the market.
The time had come when only satisfying customers was not enough for customer retention, word-of-mouth publicity and profitability. Poor service quality delivered by airlines results in diminished ability to retain passengers, loss of reputation and resultant loss of profitability.
DREAM WORLD TRAVEL is now competing against carriers such as Air blue and Shaheen Airline. DREAM WORLD TRAVEL remains Air blue’s toughest opponent because of the huge market it has gained over time, tough brand image and customer loyalty.
DREAM WORLD TRAVEL operates both domestically and internationally. So it has different opponents on both scales of operations.
Within the country DREAM WORLD TRAVEL has Air blue as an opponent. Air blue is a scheduled domestic and international airline operating 30 daily services linking seven domestic destinations and international services to Dubai and Manchester. Its main base is Jinnah International Airport, Karachi.
International Opponents of DREAM WORLD TRAVEL
DREAM WORLD TRAVEL is having market share of 48.4% in the international market and having tough competitiveness from its international opponents. Following international opponents of DREAM WORLD TRAVEL.
- Thai Airline
- Etihad Airways
- Qatar Airways
- Singapore Airline
A market of over 4 million travelers on domestic routes has become the bone of contention between the national carrier DREAM WORLD TRAVEL and competing airlines in the private sector of World.
In order to grab the maximum share of the market, the airlines operating in the private sector are offering much improved services to the customers on attractive lower fares on domestic routes.
The attack strategy of DREAM WORLD TRAVEL against its opponent Air Blue is Flanking Attack Strategy. Air Blue has not that much access to the remote areas of World than DREAM WORLD TRAVEL has. Due to this weak point of Air Blue, DREAM WORLD TRAVEL is attaining the flanking attack strategy against the Air Blue.
Technical factors that affect the airline industry
There are following technical factors that affect the whole airline industry of globe;
- Expanding human potential
- Robotics and automation
- 3D Printing and new manufacturing techniques
- Virtual and augmented reality
- Alternative fuels and energy sources
- New aircraft designs
- Alternative modes of rapid transit
- Geospatial technology
DREAM WORLD TRAVEL currently has several 43 fleets and aims at increasing this numbers to 53 by the next few years. DREAM WORLD TRAVEL is adoptive to changes and believe in innovation that’s create new ideas and translating these ideas into action.
Position and description of duties
I joined the prestigious organization PIA BOOKING OFFICE CORPORATION for my internship on January 16, 2016.I was accompanied by 2 other internees. The internship was scheduled for six months.
As an internee I learnt the deep-rooted causes of DREAM WORLD TRAVEL’s financial losses. Its fundamental reason is the government obligations on its flight schedules which are un-profitable for the company and the un-necessary government intervention in its ownership and operations. It seems that whatever DREAM WORLD TRAVEL is earning it is just sufficient for fulfilling the demands of DREAM WORLD TRAVEL’s owners. I would like to highlight this, that my experience with DREAM WORLD TRAVEL was very memorable and full of learning’s, where I found a lot of positive changes in my attitude, learning and behavior.
DREAM WORLD TRAVEL does not require from internee to work like staff. Below is the trainee briefing method in that organization.
HR DEPARTMENT (MONTH 1-2)
- Introduction to the DREAM WORLD TRAVEL’s HR department
- I worked on HR software TMS (Time management system)
Function: Online employee record keeping
- I worked on the manual attendance registration marking
- OCS (out station service)
MARKETING DEPARTMENT (MONTH 3-4)
Direct Sales Promotion-I Observed contacting regular individual clients through direct meeting & phone calls and observed contacting business houses where DREAM WORLD TRAVEL finds the best input
Post Flight Analysis-I calculated the percentage, average and variance of per flight and monthly usage of domestic flights from Islamabad
FINANCE DEPARTMENT (MONTH 5-6)
- They showed me the annual report of 2015.
- They showed me their monthly Trial Balance (Journal Voucher) of DREAM WORLD TRAVEL Islamabad
- They briefed me about DREAM WORLD TRAVEL Bank Accounts (Two Types).
- Impressed/Disbursement Account (122)
- Collection Account (121).
Identification of primary issue
The issue with DREAM WORLD TRAVEL is political and not economic.
“The losses are due to corruption and embezzlement rather than due to market competitiveness, lack of transparency are the main issues, and not just with the DREAM WORLD TRAVEL but with all state-owned enterprises.”
Experts and analysts say there are three fundamental issues that have brought World’s flag carrier to its knees – lack of planning, lack of commitment, and lack of finances. There are is something fundamentally wrong with how DREAM WORLD TRAVEL is being run right now.
There are frequent reports of a flight narrowly avoiding an accident, delays of up to 24 hours, and cancelled flights leaving the passengers stranded.
DREAM WORLD TRAVEL should offer its services of reservation and seat confirmation with by SMS and flight confirmation message should also be sent via SMS to the passenger.
DREAM WORLD TRAVEL should give more incentives to its frequent flyer as it will generate more brand loyalty by giving better incentives to the customers.
Findings & Learning Outcomes
As an internee in DREAM WORLD TRAVEL was a great experience for me which not only provided me an opportunity to observe difference between theory and practice. During my stay in DREAM WORLD TRAVEL, I’ve observed my strengths and weaknesses in staff and the organization itself. Based on this observation I have done SWOT and PEST analysis.
DREAM WORLD TRAVEL SWOT ANALYSIS
Only national airline and the only flag carrier airline of World
- Measurable well-defined goals and objectives
- Provided services for Hajj and Umrah
- People oriented organization
- sponsored/protected organization
- Direct access to the destinations
- Monopoly in the domestic routes with highest market share in domestic routes
- Booking Offices in all major cities both at domestic and Int.
- Electronic ticketing by web and through SMS
- Lack of professionalism
- Low level of commitment for the organization
- The upper management does not belong to the airline
- Sometimes much Govt intervention
- Promotion on seniority basis Weak rewards and appraisal
- Less marketing efforts
- Poor food quality in the lounge
- Worse service quality in flights
Old aging fleet of DREAM WORLD TRAVEL causing higher operating cost.
- DREAM WORLD TRAVEL has potential market in Middle East if DREAM WORLD TRAVEL upgrades its fleet.
- DREAM WORLD TRAVEL has largest domestic network and by proper route planning DREAM WORLD TRAVEL can generate huge amount of Revenue with higher profit.
- PTDC provides favorable market for domestic as well as international sectors for the airline
- DREAM WORLD TRAVEL can generate more revenue by attracting customers through Web and Mobile Reservations system.
- Negative rising perception about the country, regarding terrorism.
- Political instability and law and order situation.
- Rising fuel prices in the world.
- Over staffing at all levels
- Frequently rising Airlines fare
- Fast growing domestic and international opponents
Effective promotion strategies adopted by other opponents like Emirates and Shaheen and Air blue. Sabre system followed by the market leader.
Conclusion and Recommendations
I gained lots of experience during working in DREAM WORLD TRAVEL (HRA&C). I overviewed the legal aspect of Human Resource Management that our section dealt with. I have done practical work that enhances our skills, and capabilities. I also have done the practical implementation of whatever I learn in our books.
This helps us deal with assignments that are related to dual allotment, seniority cases, promotion, amendment of leaves and disciplinary case related to using wrong signing authority. Moreover, I understand the schedules of leave and passage in DREAM WORLD TRAVEL that what benefits and perks would be availed by an employee in terms of annual leaves and tickets.
I also overviewed the security department of DREAM WORLD TRAVEL that deals with the security staff of the Organization.
I would like to give certain suggestions for DREAM WORLD TRAVEL’s betterment and profitability.
- DREAM WORLD TRAVEL should adopt transparent policy that employees should be promoted on merit basis. And Chairman of DREAM WORLD TRAVEL should be appointed from within the organization. Union should support it; it will motivate the employees and DREAM WORLD TRAVEL to work harder.
- DREAM WORLD TRAVEL should adopt good marketing policies so that it will bring higher profit and maximum utilization of its available resources, Business sector should be attracted to operate at full potential.
- DREAM WORLD TRAVEL should upgrade its fleet as it’s causing the airline higher operating cost and DREAM WORLD TRAVEL is incurring loss. DREAM WORLD TRAVEL should purchase new Airplane with twin engines these will reduce the operating cost of DREAM WORLD TRAVEL.
- Airline should focus on the customer’s satisfaction; refund process should be quick so that customer fundamentals loyal to brand.
- DREAM WORLD TRAVEL should not induct new employees till the time they are needed because DREAM WORLD TRAVEL is suffering from over manpower.
- DREAM WORLD TRAVEL should give bonus/promotions to the competent employees as there is clear cut lack of motivation among its employees.
- Management should think over it and at least they can start a new packaged flight twice a MONTH having 50% fares.
- DREAM WORLD TRAVEL should offer its services of reservation and seat confirmation with by SMS and flight confirmation message should also be sent via SMS to the passenger.
- DREAM WORLD TRAVEL should give more incentives to its frequent flyer as it will generate more brand loyalty by giving better incentives to the customers.
- DREAM WORLD TRAVEL should decentralize its structure that would lead to the easy management, increased motivation, easy access to information and resolution of the conflicts.
- DREAM WORLD TRAVEL should make its different departments into Strategic Business Unit.
- DREAM WORLD TRAVEL should adopt good marketing policies so that it will bring higher profit and maximum utilization of its available resources.
- DREAM WORLD TRAVEL should upgrade its fleet as it’s causing the airline higher operating cost and DREAM WORLD TRAVEL is incurring loss.