Airline and Travel Agent Cost Improvement Relationship (Paperback)

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⦁Why tourism and airline industries have close relationship to influence their profitability between of them.In my study, I suppose terrorism, profitability and the price of petroleum which had properties of distinct and interrelated close relationship. Moreover, these variables ( terrorism, profitability and the price of petroleum) displayed differentiation, self replication, efficiency and hierarchy which can cause risk events to airline industry. However, I also think the other internal and external threat factors of airline industry, such as inflation, bank interest rate, business model, service quality, airline fuel or plane engine technology, air ticket pricing, brand loyalty, airline strategic management, government policy and fuel hedging of these factors which can also raise the risks to threaten any airlines existence in airline industry. There are two basic business models in airline industry. They are network ( full service) and low cost ( discount) carriers. The network carrier model employs diversification strategy by increased domestic destinations, serving international routes, providing diverse seating arrangements ( business, economy and first class), maintaining a complex system of offering high quality service. Otherwise, low cost ( discount) airlines focus on lower air fares. To keep operating costs down, discount airlines offer shorter routes and provide point-to-point destinations rather than through sophisticated flights are primarily in domestic destinations. So, discount airlines operate a common model aircraft fleet, offer a single seating arrangement and cheaper flight services offered to compare network airlines. However, these two basic business models have their unique competitive abilities to provide any airlines existence in airline industry nowadays.In fact, natural resource of oil is decreasing in our earth. But as the same time, human demand is increasing and oil supply is decreasing, so it also causes the oil fuel price is increasing to supply to airline industry. It influences not only to airline industry, it also impacts of higher oil fuel price to tourism, such as expansion of airports are made based on expected demand increase. Tourism has been proven to many adverse events, including terrorism, flight disruptions. Beside, the bad natural climate change influences, such as the volcanic ash cloud event occurred in April 2010 year. So, airline industry need to concern climate change because it will cause high fuel prices indirectly. For example, the event occurred the extreme increase in operating costs for airlines in 2008 year, due to unprecedented prices for aviation fuel also meant, that despite the introduction of fuel charges, so this event causes the global airline industry recorded losses seriously. Even if alternative fuels become commercially available for airlines which are still likely to be more expensive than present aviation fuel. Thus, it seems that poor tourism will influence poor travel consumption and low airline tickets sale.
Product Details
ISBN: 9798628210277
Publisher: Independently Published
Publication Date: March 19th, 2020
Pages: 308
Language: English