Air Travel Essay

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The demand for air travel

This essay deals with the growth of the aviation industry based on the demand for air travel. Therefore, will touch upon the structure of the aviation industry and the stages of development that can create an impact on it. This assignment will also cover discussions and evaluation based on the implications of the changes for the aviation industry.

People were always captivated by the idea of flying and the first successful flight goes back in the 2nd century when gliders used to fly over very short distances, however it took a long time until the Wright brothers had their first flight in 1903. As soon as the success of the two brothers was heard around the world, new versions of the Wright Flyer were developed.
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These factors include the number of passengers in a particular market and their financial status, their preferences, the prices of other competitors on the market and the passenger expectations. Some of the implications of the changes for the aviation industry are the changes in demand. For instance, the preferences of a passenger can either be in the favour of the airline or against it. Advertising can usually increase the demand of tickets in a particular period of time whereas if there is an unfavourable change in the passenger’s preferences that will automatically decrease the demand. The prices of competitors are always important because if your competitors have a higher price, that might lead customers to switch to your airline however, the same thing can happen if you raise your price as passengers will look for something more affordable and therefor the airline will lose customers in the process. The financial status and income levels of passengers is another important aspect as one of the reasons the airline industry has grown more is because of rising disposable income which means that people have more money to spend on travel. Looking at the non-price determinants related to the financial status of the passengers, air transportation is very delicate when it comes to instabilities within the economy as if there is a collapse in the economy that means that unemployment rates go down and people will not travel as much anymore. On the other hand, when the economy is prosperous people will travel more abundantly especially those from the business sector. Wensveen
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