Air Travel Industry Q&A

1. Consider the air travel industry’s microenvironment. Using Figure 3.1, indentify the main companies and other organisations forming the microenvironment.

Microenvironment is the factors that impact to organisation ability to serve its customers. In air travel industry, microenvironment can be say that is

• Suppliers: Transport industry need vehicle to serve its customers, thus Boeing and Airbus, aerospace company, are main suppliers of air transport. Moreover, serving meal is one of its services that provided almost every flight. In-flight food companies, so are suppliers in this industry.

• Company: Company need appropriate decision to perform efficiently. Such internal organisation as, finance department, account department, marketing department and so on, are influence to strength and weakness of company. Each company differing focus on different market. Qantas Group, for instead, transfer domestic flight to low-cost subsidiary airline, Jetstar, and drop some flights to reduce capacity and generate more profit in economic downturn while Singapore airlines concern about its premium market. (Geoffrey 2010, p43)

• Competitors: Company that serve the same thing to the same group of customer, which in this case can be other airline or other transport, such as, train, bus or cruiser.

• Marketing intermediaries: Instead of promote itself, agencies both ticket and travel, is chance of transport industry to make more sale which in globalisation, they effectively provide service via internet, telephone and also branch office. Customers simply access to agencies that provided like one-stop services.

• Customers: Customers of air travel are consumer markets and international markets, such as tourists, students and businessmen.

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...ompany interested to increase flights in that. Thus, companies that have serviced in Asia have to try harder to attract customer by mean of concern about offer them cheaper price.

4. Why do those who pay more for air travel perceive value, when it is clear that many other people perceive value when they use a low-price air carrier?

Price is not only one factor that used to choose this kind of service. Air travel industry depends on many factors such as, type of customer, how long of trip, service and facility in flight. In long trip flight, for instead, customer would like to have comfortable and wide seat, more room for leg, good meal, sufficient personal entertainment and prefer to pay more money for that. Moreover, others convenient things that provided such as check-in online, mile collection to be higher member with privilege option or after flight service.