Wednesday, May 6, 2020

Airline Industry The Impact Of Deregulation -Myassignmenthelp.Com

Question: Discuss About The Airline Industry The Impact Of Deregulation? Answer: Introduction Tourism industry is one of the major industry that has helped in the economic growth of a nation. Tourism is the way an individual travel for pleasure and for any business purposes (Westcott, 2012). Today, tourism has become one of the major source of income because it helps in the balance of payments of a nation. Likewise, an interrelationship is defined as when any business start working with other companies in which they have strong interrelationships and one cannot be successful with the help of other. There are some issues which are still not clear and a nation must work on it to eradicate those issues. There are also major trends that helped tourism industry to stand on the top (Kangut, 2012). I have learned that there are many factors that have an adverse effect on this industry which must be taken into consideration. Emerging trends and its future impacts Travelers have stated that the cost involved in the travelling and other additional fares are increasing day by day which ultimately reduces the number of travelers to visit any destination. In the recent years, the airline industry has reduced the amount of fares and controlled their budgets by focusing on the bag check fees and other many paying costs (Kalyanaraman, 2015). Earlier, the fares for travelling were very inclusive and they used to focus on the destination rather than focusing on the high prices. But today, it has more focused on cost rather than focusing on the destination. (Elliott, 2014). Despite of all the issues, airlines industry are also offering several options which will be based on the total amount a traveler wishes to invest and it has also provided the easy access to overseas travelling. The agreement between Chinese and Australian government has provided aid in this industry and aimed at reducing the tedious journey for a traveler (Cameron, 2013). Economic growth Tourism industry in Australia in strongly growing and has also contributed to the economic growth. It has strongly grown in the last two decades because the total number of visitors is doubled from 1992 to 2014. The total number of international visitors were 2.5 million in the year 1992 which resulted in 6.7 million in 2014. This shows that the tourism industry in Australia has grown with some massive changes. Tourism is one of the major source of income which helps to increase the GDP of the country (Burkhard, 2016). There are some changes in the Australian airport which created a positive impact on the travelers experience of the airport. The major changes can be seen in the Brisbane Airport which was involved in several projects worth $3.8 billion. It aimed at expanding several terminals and car parking as well. Likewise, Canberra Airport is also redeveloping itself by introducing more food and beverages stores and managing children area so that kids can have fun during the intervals. The government of Australia is also going to invest $3 billion in building the next airport in Sydney in mid 2020s (Narendra, 2013). Technology upliftment There is a huge change that can be observed in the tourism sector and of the major changes can be seen is the changes in the technologies. The technology of mobile phones has changed the whole nation and today a traveler can plan their trips on phones. They are provided the facility to search and plan according to their requirements and budget plans (Glion, 2017). Several flights are available at cheap rates which covers the 60% of the customer demands and also helps to generate 40% of the revenue. Mobile phone has made the travelers to plan their unplanned trips within a click. A traveler just need to pull out their phone and get a price and book the tickets. The message alerts and pop up messages can always be seen on ones mobile phones. I have also personally experienced the use of mobile phone to encourage tourism industry (Lenior, 2016). I was planning to attend a concert and I searched on it about the venue and the timings. It was going to be held in New York. As long as I was searching for all the details regarding the concert, there was a pop up messages and a search window where flights to New York were seen that would match the timings of the concert as well. One can book the flight right away and attend the event without any investing much time in looking more options. Decline of the generic holiday Travel has become a trend in the todays era. Because of the updates in the technology, one can see how many people are looking forward to travel for any specific reasons. There can be many purposes as mentioned below. Living like a local: This has given an upliftment to the people who have travelled to gain personalized experience and authentic experience as well. Airbnb provides the services that takes the traveler from their destination to a very new city. They either travel for few days, few weeks or few months and have fun and gain lots of experiences. Working holiday: There are many people who prefer to combine two activities in one i.e. travelling along with working. This has become a new trend to work and travel. Such type of trips is known as bleisure trip. Bleisure trips are the trips which are multitasking in nature where you pick work along with your bulky bags. In such trips a traveler generally carries laptops with them so that they can use it anytime and complete their work along with the trips. I personally believe that a person should complete their work in the work place and avoid carrying their work on the roads. Because if a person is involved in two tasks, then he/she cannot either enjoy the trip or can he work properly. Ecotourism: The climate changes from time to time and when a traveler plans a trip, he can easily get the climate updates. And also avoid going to endangered destinations. The travelers plan those trips which have the suitable climate and which also meet their requirements as well (Global environment, 2017). Interrelationships An interrelationship is when a when one company works with another company to get the mutual benefits (Weebly, 2014). Let us take an example for an instance, I had once visited British Museum in London. It had many restaurants and stores around. The British Museum was linked to all those caf and stores which helps it to attract huge number of visitors towards it. They have interrelationships with those restaurants and stores which made the museum more successful. Chain of distribution The above diagram shows the interrelationships between the intermediaries that are involved between a traveler and service providers. The chain of distribution shows how a consumer gets a product. In the tourism industry, hotels offer packages and make a bucket of offers together and serve those packages to the tour operators. Later the tour operators carry forward it to the travel agents and those agents sell those packages directly to the consumers. So, basically the chain of distribution is working together to ensure that the travelers get best offers and packages to travel and have lots of fun. It is very difficult to meet the customers expectation in this industry (Cook et al, 2014). Tour operators and Travel agents These two areas are inter linked with each other. Travel agents are those people who arranges a travelers itinerary. Agents are responsible for all the deals and offers which are provided to the traveler (Education, 2013). For an example: Lunn Poly is a travel agency which aims at selling trips for Kuoni which is a tour operator. Kuoni aims at providing luxury holidays. Attractions and Transport Operators These two sectors are also interconnected to each other. Many transport facilities are provided by the transport operators who visits the places. They usually provide bus routes and tube routes as well. They also make certain announcements which makes easy for the traveler to travel from one location to another location (Moutinho, 2011). Transport operators and Tour operators Transport operator and tour operator work together by offering huge ranges of destinations with best deals and packages along with the best experience of flights. Tour operator manages the tours by providing the best deals and transport operators managed the transportation facility of the traveler. For an example: First choice is a tour operator and Thomson Airways is the transport operator (Newsroom, 2015). There are mainly 5 different sectors within the tourism industry which are listed below. Accommodation: It includes all the hotels and restaurants where a traveler lives in. It is further categorized on the basis of the star rating of the hotel and budget of the traveler. Events and conferences: It includes the certain conferences and events that takes place at different places for which a customer wishes to plan a trip and attend those conferences and concerts. Food and beverages: This sector also plays a major role in the tourism industry. This sector helps a customer to eat healthy and remain healthy because getting healthy food while traveling is one of the major concern. This sector ensures that the customer gets the food according to their requirements (UKEssay, 2015). Transportation: It helps a traveler to move from one place to another place with the help of vehicles. It provides the facility of vehicles which are used by the customer for their convenience. Tourism services: This service understands the demand of the customers and plans trips according to their budget by offering the best deals and offers which will best suit the customers requirements (Hall, Timothy Duval, 2012). The stages of the costumer journey involve six major levels. The below figure shows the six stages of travel which a customer faces from initial to the destination Planning Planning is the way of drafting something and working accordingly. It is the very first stage of a travelers journey. Whenever a person gets bored, he/she plans to visit or go out for a day, weeks or more than weeks to refresh their mind. Last year, I remember I was getting bored during my vacation and planned a holiday of 15days. I planned to visit Paris. Booking Booking tickets is the second stage of the customers journey while traveling. When I made a plan to visit Paris, I searched for all the packages and plans along with the best deals. Later I consulted several travel agents and finally booked the tickets to Paris. Anticipating This is the third stage of the journey. Anticipating is the way of predicting anything in advance. After I booked my tickets to Paris, I started thinking and making assumptions like will I have enough time to visit all the places, will I be able to do lots of shopping and many more. So, finally I collected all my stuffs sand packed my luggage to reach the place. In route In route is the fourth stage of the journey when one finally gets on the way to reach a certain destination. After packing all the luggage, I finally reached the destination. I was very excited to look at Paris and have fun over there. There lived my 3 of the friends who were supposed to pick me up and guide me to visit all the places of Paris. Destination It really makes a person happy when they plan something and implement it successfully. Finally, I reached the destination and the same happened to me. I was so happy and bit tired too because it was too long journey. I took a nap for a while and then planned to visit the museums on the very first day. Dreaming It was a week plan because I had already spent my half of my holidays with my family. I visited all the places and it was like a dream came true. I came back to my place but the memories were still running on my mind. Airline Industry An airline industry is the industry which provides air services to its customers with the utilization of air crafts. Today, the worlds airlines carry nearly 3billion of travelers in a year with 50million tons of freight. It has contributed $664.4 billion to a nation by increasing the total global GDP. It has also created 9.9 million jobs which has helped huge number of people to get employed (Morrison Winston, 2010). Evolution of Airline Industry The birth of flight took place in 1903. Air travelling is one of the major means of transportation. This airline industry has made 100 successful years in this sector by providing the way to travel and have fun. In this industry, it has served not only through the means of transportation but also provided the way of living. Early 20th century Airlines industry was widely used in the 20th century but people were afraid to fly because of the risks involved in it. The Air Act developed the airline industry with certified aircrafts and licensed pilots along with several regulations and protocols. Pan American, Western Air Express and Ford Transport services are the first commercial airlines introduced in the early 29th century. After 10 years, United and American airlines were introduced (Dixon, 2015). Late 20th century New routes along with new carriers were introduced into the airline industry which helped to connect cities via layovers. It was easy to access and move from one place to another. The prices were reduced which aimed at increasing the number of customers. Pan American and TWA began to decline because of the huge competition in the market (Williams, 2017). 21st century In 2001, business travel was reduced which gave rise to the cost of fuel and labor. Several issues regarding this industry were raised because of which number of passengers were reduced and operating cost was increased. There was a continuous loss seen in the Australian Airlines and no profit was generated till the year 2006. All the issues were regarding the quality and the services like flight delay and unavailability of proper hygiene inside the aircraft. It also included the fares that were charged very high because of the costs involved in it. Later in 2010 and 2011, the department of transportation generated a set of protocols that every airline must follow in order to create some modifications that will benefit the passengers and increase their numbers as well. Future of Airline Industry One of the most important industry which is growing and attracting huge number of customers is airline industry. Besides of its growth, there are some issues like risk of oil prices which can be seen in this industry. The prices of the oil which is used for aircraft is increasing day by day which will increase the fares of airline at the end to match up with those costs Airline manufacturers will continue to save energy in the coming few years with the use of several technologies like designing the engine in a more better way, more direct routes for aircraft, faster turnaround, and many more. It also includes consolidating the smaller airlines. Moreover, the passengers will be provided the options of budget, premium budget, traditional economy and premier business class which will be decided according to the budget of the passengers (Belobaba, Odoni, Barnhart, 2015). Keeping the energy prices rise aside, the passengers will definitely fly more and spend more in planning their trips and giving an opportunity to raise income of the airline industry. Burning fuel in the plane engine is also another issue which will be faced in very near future. Many of the airline will burn carbon-based fuel because the average life of a new plane is 30years. The only form of transport which is apart from ships is aircraft. It will be using carbon-based fuel in the ne xt 30-40 years. Batteries are too heavy to be used for commercial aircrafts, solar cells are too feeble and fuels are too bulky which provides too little energy that can be useful for planes (Kletzel Terry, 2017). Issues in airline industry: It must focus on the experience, convenience, quality and value for money because major issues are seen under these categories only. Strategies required: This industry must be flexible and alternative strategies must be prepared when some sudden incidents may take place. The alternative strategies must be activated within an hour. Greatest risk factors: Complacency is one of the major risks involved in this industry. Greatest opportunity: It provides a wonderful experience which is very imaginary and an efficient way. Today every people loves to travel and plan trips so that they can recreate fun their life. Thus, it can be concluded that Airlines industry is one of the major industry that gives an economic push in a nation and the world as well. Despite of the several issues involved in this industry, this industry has grown successfully in the recent years and has also increased the number of passengers. References Belobaba, P., Odoni, A., Barnhart, C. (Eds.). (2015). the global airline industry. John Wiley Sons. Burkhard, S. (2016). Travel trends. Viewed on 13th February, 2018. Available at: https://www.trekksoft.com/en/blog/7-travel-trends-for-2017-that-will-drive-the-global-tourism-industry Cameron, M. (2013). Bundling, Unbundling and Re-bundling of Airfare: What does it all mean. Viewed on 13th February, 2018. Available at: https://www.cbtravel.com/2013/07/bundling-unbundling-and-re-bundling-of-airfare-what-does-it-all-mean/ Cook, R. A., Hsu, C. H., Marqua, J. J. (2014). Tourism: the business of hospitality and travel. Boston, MA: Pearson. Dixon, P. (2015). Future of Airline industry, Radical change. Viewed on 13th February, 2018. Available at: https://www.globalchange.com/future-of-aviation-industry-radical-change.htm Education. (2013). Difference between tour operator and travel agent. Viewed on 13th February, 2018. Available at: https://www.slideshare.net/10th/difference-between-tour-operator-and-travel-agent Elliott, C. (2014). How Unbundling Fees Make Airlines a Bundle of Cash. Viewed on 13th February, 2018. Available at: https://www.frommers.com/tips/airfare/how-unbundling-fees-make-airlines-a-bundle-of-cash Glion. (2017). Hospitality Industry Trends: Technology Customer Experience. Viewed on 13th February, 2018. Available at: https://blog.glion.edu/from-glion/2017-hospitality-industry-trends/ Global environment, (2017). Ecotourism and Sustainable Tourism. Viewed on 13th February, 2018. Available at: https://chge.hsph.harvard.edu/ecotourism-and-sustainable-tourism Hall, C. M., Timothy, D. J., Duval, D. T. (2012). Safety and security in tourism: relationships, management, and marketing. Routledge. Kalyanaraman, A. (2015). All you wanted to know about: Fare unbundling. Viewed on 13th February, 2018. Available at: https://www.thehindubusinessline.com/opinion/columns/all-you-wanted-to-know-about-fare-unbundling/article7909158.ece Kangut, C. (2012). Introduction to tourism. Viewed on 13th February, 2018. 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