The tourism and hospitality industry is broad and covers travel, accommodation, foodservice, conferences, and leisure and recreation. This report focuses on the passenger airline sector, the hotel sector and the fast-food sector of the industry as a whole. It examines the current state of these sectors and their existing leadership practices. The issues and challenges which the industry and its leadership is likely to face over the next five to ten years are examined and thus recommendations are made for how these challenges may be responded to. Current state of industry As the world’s economy became more globalized, the significance of air travel escalated consistently (Hwang, 2011). According to the air traffic report released by International Civil Aviation Organization (ICAO), Airports Council International reported that air traffic growth in 2010 increased by 6.3% from 2009. This represented the carrying passengers of 2.5 billion. The figures are expected to grow quite significantly as focus is drawn to the emerging economies including India and China. Other than US and Europe, it was forecasted in 2009 that in 2028, 14 of the large 20 aircraft airports will be in Asia Pacific (Butterworth-Hayes, 2011). Transformation progress in the air transport industry structure, particularly the international airline following the signing of the ‘airline deregulation act’ in the US in 1978 and Europe in 1980s and 1990s, has been dynamic (Fillol, 2009). The formal acceptance of this act by the regulatory body signified the beginning of ‘global airline industry liberalization’ or the “open skies” bilateral agreement. This act has greatly impacted the economic performance of the aircraft industry. Airline scholars, Fu, Oum... ... middle of paper ... ..., L., Franz, I., & Russell, S. (2007). A systematic approach to career development at McDonald’s. Organizational Development Journal, 25 (3), 31-37. Service Skills Australia (2011) Tourism, Hospitality and Events Environmental Scan. Retrieved 23 September 2011 from http://www.serviceskills.com.au. Tarlow, P. (n.d) Tourism and Transportation: Planning for the future. Retrieved 23 September 2011 from http://www.eturbonews.com/24332/tourism-and-transportation-planning-future. Wain, D. (2009). Leadership with ketchup in its blood. Training Journal, 25-27. Wickford, H. (n.d).Types of hotel ownership. Retrieved 29 September 2011 from http://www.ehow.com/about_5598328_types-hotel-ownership.html Williams-Lee, A. (2008). Accelerated leadership development tops the talent management menu at McDonald’s. Global Business and Organizational Excellence, 27, 15-31.
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
"Problems" in the airline industry have not risen due to too much competition within the industry. To the contrary, Washington regulators should turn the industry loose in any more ways that it can. Lowering restrictions to enter the market place, emphasizing private ownership of aviation matters, and encouraging open and free competition within the scope of anti-trust law should be the goals of the Clinton Administration. Instead of heading towards re-regulation, Washington should get out of the airline business for good.
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
International and domestic aviation industries exhibit large changes in political environments, affecting mannerisms of customer travel (asse.org, 2017). Aviation bodies, including International Air Transport Association (IATA , 2017), regulating international air transport, and Civil Aviation Authority (CASA, 2017), regulating Australian air services, have authority in ensuring execution of the correct practices and procedures. The Australian Competition & Consumer Commission (ACCC, 2017), ensures government regulations, trade agreements, and taxation laws are executed. International political trade relationships, affect passenger numbers travelling between countries, and political instability affects Qantas revenues (Kaivanto & Zhang, 2017).
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
Tourism Research Australia, Department of Resources, Energy and Tourism. Tourism contribution to the Australian Economy, 1997-98 to 2009-10., [Online. Available at: [Accessed 7 March 2012].
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).
Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).
Kandola, B. (2004). Skills development: the missing link in increasing diversity in leadership. Industrial and Commercial Training, 36(4), 143-147.
Political Factor: Political interference plays a vital role in the Airline industry more particularly in Asia-Pacific and ASEAN counties. About 69% of Malaysian Airline is owned by the Government. They proctect there Air...
Hospitality industry is one sector that provides multiple opportunities for growth and a great variety of profiles to work with-in the best restaurants, pubs & bars, and nightclubs such as reservations, concierge, chef, reception, and much more. Furthermore, the industry has great potential for rapid horizontal movement and growth
Peters, M & Pikkemaat, B 2005, ‘Innovation in Tourism’ Journal of Quality Assurance in Hospitality & Tourism, vol. 6 no.3, pp.1-6.
Air travel is a huge and tremendously flourishing industry. Globalization can be defined as the integration of national and local economics, culture and societies through a web of communication, transportation and trade. The current era considers globalization as the dominant driver of almost all business due to the influence or the international market. The emerging prosperity of the global aviation industry plays a substantial role in economic growth, tourism, global investment and world trade, which are the impacts of globalization. This essay portrays the negative and positive effects of this globalization on the airline industry.
1.2 Problem Formulation In the problem formulation part of my report I would describe the overall situation of the U.K Tourism industry. The service concept of “Simply Travel” will give us information about the services provided by the company. I will find out about the customers, competitors of the company. I will find out what political, economical, social and technological factors affecting the company and its demand situation.
Tourism is an amalgam of activities, facilities, services and industries that deliver a travel experience (Tourism and Leisure Committee, 1997). These experiences include