External Forces Shaping The Future Of The Airline Industry

1741 Words4 Pages
bulb-icon

Recommended: Obesity in america

External Forces Shaping The Future Of The Airline Industry

INTRODUCTION

The purpose of this report is to inform airline executives about the external forces affecting their industry and what they can do to keep up with the changing business atmosphere. The terrorist attacks of 9/11 had a grueling effect on the economy, and while most industries are almost back to their pre-9/11 financial status, the airline industry is lucky to break-even. This report will explain three leading trends that are forcing the airline industry to re-think their stance on strategic planning.

The first trend discussed will illustrate the effect that online booking has had on the way airlines do business. The second trend will describe how obesity has caused new standards to be set within the industry. The final trend will explain how the demand for business-related travel has been decreased from the use of new technologies. This paper will close with a brief synopsis of the most relevant trend to the industry—the decrease in business travel due to new technologies.

DESCRIPTION

The following portion of this report will describe each of the three trends and contain information to support the claim. Continue reading for further explanation of the trends.

Online Booking

Online booking is becoming more popular, especially in a country where over 50% of its households are connected to the internet (U.S. Department of Commerce 2001). (See Appendix; Graph 1) Americans want things “NOW!” not ten minutes from now. The quicker the service, the more satisfied the customer will become. Various online travel agencies, such as Orbit and Travelocity, give consumers the ability to compare different travel options, all without leaving the comfort of their home. In 2003, 35 million Americans went online to book travel reservations, a 17% increase since 2002 (U.S. News 2004). Currently one-third of all internet-related transactions involve making travel arrangements (The Times 2004).

Obesity

Americans today are heavier than ever, and despite increased health awareness, the obesity epidemic is not slowing down. (See Appendix; Graph 2) Currently two-thirds of Americans are considered to be overweight (New Zealand Management 2004). According to the last U.S. Census, the current population of the U.S. is 281 million. When mixing those details together you can acquire ...

... middle of paper ...

...on Week & Space

Technology v138 n6 (Feb. 8, 1993): 31,33.

Lollis, Barbara De. “Virtual meeting companies get boost as travel wanes. USA Today

(March 18, 2003): 10.

Lollis, Barbara De and Chris Woodyard. “Larger Passengers pay more on Southwest

Air.” USA Today (2002) .

McKee, Bradford. “Sprawl and America’s Sprawling Middle.” Architecture v92 n8

(Aug. 2003).

“Obesity Research.” American Obesity Association (2002) http://www.obesity.org/

subs/fastfacts/Obesity_Research.shtml>.

“Percent of U.S. Households with Internet Access.” U.S. Dept of Commerce (Feb.

2001) .

Stellin, Susan. “Online Booking Cuts Costs and Simplifies Corporate Trips.” New York

Times (Sept. 2, 2003): C7.

“Web World.” The Times (United Kingdom) (Sept. 4, 2004): 4.

APPENDIX

Graph 1: Percent of U.S. Households with Online Access

Data Source: Newburger, Eric C. “Home Computers and Internet Use in the United States.” US Census Bureau (Sept. 2001) .

Graph 2: Obesity Prevalence in America

Data Source: “Obesity Research.” American Obesity Association (2002) http://www.obesity.org/

subs/fastfacts/Obesity_Research.shtml>.

Show More
Related

  • Pros And Cons Of The 16th Amendment

    1048 Words  | 3 Pages

    (Nugent, p. 116) The amendment granted woman’s suffrage, and was the fruit of many years of labor of several women’s rights groups, such as the National American Woman Suffrage Association, and prominent women’s rights activists, such as Susan B. Anthony. The amendment expanded the bounds of popular democracy, bringing attention to women who felt increasingly ignored as participants in the political system (Piott, p. 166). Being the inalienable right of any citizen, the right to vote inevitably expanded the political freedom of American women, and also opened other doors of opportunity to them; they could advocate for more job opportunities, better economic security, and advantageous marital and family

    Read More

  • Analysis Of Charles Busch's Play 'The Divine Sister'

    1334 Words  | 3 Pages

    The play takes place around a rundown monastery named St. Veronicas during the 1960’s, in a time of social turmoil. The

    Read More

  • Deregulation Of The Airline Industry

    1703 Words  | 4 Pages

    whether or not that city had enough gates for the new carrier, and whether the

    Read More

  • Friar Lawrence in William Shakespeare's Romeo and Juliet

    2596 Words  | 6 Pages

    Shakespeare reveals no trace whatever of the widespread prejudices of non-Catholics in connection with this aspect of the life of the Roman Church. On the contrary: he does everything in his dramatic power to show his friars and nuns, their lives and customs, in an unequivocally favorable light. (267)

    Read More

  • Delta Case Analysis

    1945 Words  | 4 Pages

    After September 11th, 2001, the airline industry experienced a significant drop in travel. The reasons for the airline industry downfalls also included a weak U.S and global economy, a tremendous increase in fuel costs, fears of terrorist's attacks, and a decrease in both business and vacation travel.

    Read More

  • Jet2 Case Analysis

    1206 Words  | 3 Pages

    Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.

    Read More

  • Three Sociological Perspectives

    1124 Words  | 3 Pages

    When studying in the field of Sociology everyone is going to approach topics in a different manner. No two people are going to have the exact same view on a particular subject. There are however, three major categories in which people might choose to approach topics. The approaches are know as sociological perspectives and are the functionalist, conflict, and interactionist perspectives. These perspectives name different ways in which different people choose to analyze a subject, and how they look at a society as a whole. The following paragraphs compare and contrast the three, and identify major characteristics of each.

    Read More

  • Existentialism

    1788 Words  | 4 Pages

    1)     Barnes, Wesley. "Is Existentialism Definable?" The Philosophy and Literature of Existentialism. Woodbury: Barron's Educational Series, Inc., 1968

    Read More

  • Group Cohesion

    832 Words  | 2 Pages

    Cohesion is the “glue” that binds a group of people together. It represents the unity of a group and shows the strength of the bond between group members. This is a direct reflection of the efforts that are coordinated to achieve a goal. Many factors can affect the success of group cohesion such as group size, stability, and success; however a level of group cohesion can still be achieved if the members have a willingness to work together towards the same goal. There is very little commonality between the cohesion that exists and looking at each factor, the individual might identify keys to group cohesion success. On a successful team the capabilities of the members to work together on future projects is sustainable and stronger.

    Read More

  • A Long Way Gone Analysis

    562 Words  | 2 Pages

    Today, we only hear of these horrors through television, word of mouth, but never by experience, which is true, for the young boys in Sierra Leone. Ishmael and his friends, who survived, know what it is like to hold a gun, to not be able to eat for more than two days, to kill or not to be killed. At such a tender age of maybe thirteen, these young boys of Sierra Leone have had more painful memories then an eighty-year old man in America. Ishmael tell of his horrors in the war and we may feel for him, but we as Americans will never be able to understand the full extent of his pain. He has been shot in the foot, lost his family, watched his own friends die before his eyes, and even tortured. Ishmael has had hope right in front of him, only to have it taken away by rebels and war. These are only half of his memories and already his story has out-shined that of an American young boy his

    Read More

  • IT Governance in Airline Industry Case Study

    1556 Words  | 4 Pages

    Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).

    Read More

  • Team Communication

    1200 Words  | 3 Pages

    Having a team is harder than working alone. Every member of their own way on how they understand when people are communicating and how they communicate with others. Observing different types of teams, whether its football or in a business atmosphere, they all have the same sort of habits that make them successful. Small things such as, leadership, trust, and how you communicate are key components of many team successes.

    Read More

  • Team Dynamics

    1098 Words  | 3 Pages

    Your team’s success is reliant upon clear cut guidelines and expectation set forth by the group. Spend time getting to know one another and your timeframe availability. State the hours that you can be reached, and if you’re available for emergencies. Establish due dates, and time limits for email responses. Davidson suggests establishing a hierarchy of requests for deadlines and due dates. He gives examples of ASAP; drop everything and finish this as soon as you can, please rush; complete this and report back quickly, priority; put this task high on your to-do list, and FYI; look at this information when you can (2008). Most team members want to meet other team member’s expectations, but in order for this to occur, everyone must be on the same page with what is expected and when.

    Read More

  • Airline Sustainable Competitive Advantage

    1432 Words  | 3 Pages

    When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...

    Read More

  • Business: Different Types of Team

    1191 Words  | 3 Pages

    Teamwork is a coordinated function implemented by a set of employees, often individuals with very different skills. These different types of teams can even be found in a college setting. Teams may be permanent or established on short notice to handle problems or opportunities as they occur. These concepts depend quite heavily on open and effective communication. Employees who are empowered to make decisions need information and the insights of their colleagues; they cannot make good decisions without an effective communication system. Questions need to be asked within a “teamwork” setting in order to work to a solution. For teams to communicate effectively there has to be more than one person. For one person does not make a team! Communication is the single most important aspect of a successful team. “Along with cooperation and commitment; communication is critical in the success of teams.” (Luebeck, 2014) “Clearly articulating the division of responsibilities and having a mutual understanding of the shared goals, division of responsibility and ultimate end product is critical.” (Luebeck, 2014) Next is motivation. Not everyone seems to have motivation. Motivating staff requires awareness and good communication. For a team to be successful, there needs to be the fundamentals of good leadership and great communication. This is all very true and I will explain throughout this paper what I believe teamwork and leadership should entail.

    Read More

More about External Forces Shaping The Future Of The Airline Industry

Open Document