Airline ticket prices might seem illogical at times, but they are actually based on careful consideration of the different contributing factors. To the outside observer, the distance between airports is probably the most important factor, but in reality there many other considerations that are just as important if not moreso. The cost inputs are a factor and these affected by the distance, but competition also plays a critical role, as does the perishability of the product. McAfee (2006) argues that the most important variable is competition. The number of airlines competing on a given route has become a critical variable since the deregulation of the airline industry in the United States brought about conditions of competition on most routes. Thus, the most popular routes are highly competitive and it is with these routes that prices are the lowest. This explains why some routes to smaller centers are subject to higher prices -- there are fewer airlines running those flights. In some cases, a given route might not have any competition at all. In such...
Indeed, the most highly competitive routes are often used as loss leaders to drive traffic to the smaller routes. Airlines have very thin margins on popular domestic routes, and make up for that with higher margins on the routes with less competition. Included in the latter category are international routes, many of which are subject to government controls. Under situations of government control, only two airlines might fly a given international route (one from each country), meaning that those carriers are operating in a duopoly. Duopoly pricing is subject to the conditions of supply and demand (Investopedia, 2012). If supply is artificially restricted and demand is high, then the prices charged by those airlines will be potentially very high.
4). The return on this modest investment was impressive: "We saw that mobile is five-to-ten times more effective than online advertising" (Butcher, 2009, para. 4). The contest also increased visitors to the company's WAP site (Butcher, 2009). 7. Description of Location The same location will be used for the envisioned marketing campaign as the "Back for a while" initiative which targeted Hispanic males and females ranging in age from 27 to 45
Airline Industry Analysis This report aims to present a summary of findings for a research study regarding the airline industry. The objective of this project was to first, gain new experience in the analysis process of an entire industry from an economic and business perspective as well as an environmental and social viewpoint. Secondly, the research attempts to provide direction for potential employment opportunities within the various aspects of the direct
One-to-one marketing allows premium pricing as well as increased sales volume to particular unique micro markets. Studies show that as customer satisfaction and loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value that other alternatives do not provide (Giddens, 2002). Long-haul international business travelers and short/medium-haul domestic business travelers are the customers that
Airline industry has had a very tough last decade where growth rate was consistently slowing down and profit margins were shrinking every year. This year too, the industry does not mean to have very favorable outlook because macro-environmental factors are not very encouraging. The government on its part has been trying to improve conditions for airline industry which has resulted in more privatization. This means the government itself has lower
Airline Terrorism As the name implies, terrorism is an attempt to provoke fear and intimidation. Therefore, terrorist acts are intended to attract wide publicity and provoke public shock, outrage, and/or fear. The intent may be to provoke disproportionate reactions from governments, and they are intended to achieve political or religious goals, not personal gain. Many definitions of terrorism exist, produced by the politicians, media, academics, think tanks, and of course by government.
Airline is the dream of many countries and it is a difficult dream to achieve for a small country like Haiti. The country is a wonderful place to visit and the reputation of different areas of the country is due to different reasons -- Jacmel in the south eastern part of the country is supposed to have a reputation for very good coffee. Another very famous product of the country
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now