Due to increase in globalization and competitive nature, many enterprises are expanding their business globally and nationally. So, business Travel is an important thing to be encountered as it is part of the conducting business.…
Identify a market for tourism or hospitality services in the Asia Pacific region that is essentially oligopolistic in nature. Analyse the pricing and supply strategies of the key firms operating in this market.…
Looking at the passenger market, despite all the negative aspects that characterises the economy at the moment, the International Air Transport Association (IATA) predicted that there will be an increase of 3.3 billion passengers by 2014, up by a third from 2.5 billion passengers in 2009. Growth will be driven by strong economic activity in Asia which will act as a key driver to the industry’s expansion. Announcing the forecast, IATA Director General and CEO Giovanni Bisignani said: “The focus of the industry continues to shift eastward. By 2014, one billion people will travel by air in Asia Pacific. That’s 30% of the global total and a 4ppt increase from the 26% it represented in 2009”.…
The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…
United Technologies Corporation (UTX) has 5 different major segments. These five segments can be broken down into three major industries. Pratt & Whitney, Hamilton Sundstrand, and Sikorsky Helicopters can be classified as Aerospace/Defense (AEROD). Carrier can be grouped in the Heating & Air Conditioning Equipment Manufacturing Industry (HVAC). The Otis segment belongs to the Elevator, Millwright & Machine Rigging Contractors Industry. The company as a whole can be classified as a conglomerate; however, analyzing the Conglomerate Industry as a whole would not be beneficial for valuation. United Technologies as a company is 42% Aerospace/Defense products, therefore that industry will represent a majority…
Easy access to finance has made it very easy for potential entrants to entre the airline market. In addition, airline industry still enjoys high class status in society, therefore entrance of big corporate houses in this domain is very much probable. Airline industry is mostly dominated by two suppliers Boeing and Airbus. Therefore, airline industry need to rely on these two suppliers for necessary supply. At the same time, on a positive note, there isn’t cutthroat competition among suppliers. The bargaining power of the customers in airline industry is not very high since willingness to purchase the airline ticket does not vary much with reasonably increased priced ticket. Therefore buyer does not put pressure on the airline or the prices of tickets. Airline industry is very competitive industry. This competitiveness in combination with rising fuel costs substantially affects profit margin for the airlines.…
Classic Airlines is up against not just one challenge but several challenges they need to deal with. Unfortunately travel has decreased as a result of uncertainty with regards to flying; this has forced the stock prices to be reduce decreasing the price of a share of Classic Airlines stock by 10% over the previous year. The negative messages being conveyed by Wall Street and the media is bringing employee morale down to an all time low. Consumer confidence in the airline has resulted in a 19% decrease in Classic flight reward members which in turn has decreased flights by loyal members by 21%.…
Air travel remains a large and growing industry.In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion…
As technology rapidly develops in the 21st century, so are goods and services in the competitive market. The airline industry in Asia is one of those undergoing ¡§a tidal wave of changes¡¨, causing a drastic alteration in the business landscape. Some of these changes were not heard of before,…
The airline industry is an unstable industry because of various factors. One such factor is that airlines are highly dependent upon current market conditions. The passengers’ reasons for travel contribute to instability of the airline industry. Various events such as increased oil prices, terrorist attacks, and inflation significantly have changed the demand for travel through the years. Typically, passengers travel for either business or pleasure. The airline industry is elastic because leisure or vacation travel is more price sensitive (Business Travel News, 2008). Business travelers still contribute to high demand for airline travel, however, with improved technology and a global recession; a portion of the business travel has been…
The airline industry is one that is both costly and necessary to the economy. Costly because of the funding provided by the government, recent layoffs; which has a hand in rising inflation, dealing with negative externalities and high security risks; necessary because the ease and speed of air travel is needed to keep countries productive and competitive. It is a key component to the economy. Many businesses rely on air transportation as well as consumers and individuals employed within the industry. Without this form of accelerated transportation, production necessary for economic growth would decelerate. Businesses would not be able to meet supply demands.…
Air travel is a large and growing industry. It facilitates economic growth, world trade, international investment and tourism.…
The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.…
In theory both supply and demand can have an effect on growth in air travel. However, the biggest influence usually arises from price factors, such as rise in price of substitute goods or general fall in air travel. Supply factors include, emerge of lower cost airlines and increased number of airports. These and other supply and demand factors can be analysed closely in order to evaluate the reasons for increased growth in air travel.…
Government deregulation on the airlines can be largely contributed to the current state of the industry. The option for companies to file for Chapter 11 bankruptcy allows the firms to seek protection from their creditors and existing contracts. This practice became quite the issue as successful companies couldn’t compete with bankrupt airlines and the artificial costs that were low.…