[AIB subject title and subject AQF Level]
[Student name]
[Student number]
[Title of assignment]
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Executive summary
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Table of contents
1. Introduction 4
2. [… Section heading…] 4
2.1 [… Sub-heading…] 4
2.2 [… Sub-heading…] 4
3. [… Heading ….] 4
3.1 […. Sub-heading…] 4
3.2 [… Sub-heading…] 4
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Conclusion (or Conclusion and Recommendations) 4
Reference list 4
Appendix 1 – [… Title of Appendix 1…] 4
Appendix 2 – [… Title of Appendix 2 …] 4
1. Introduction
Benefiting by many facts the global airline industry has been growing rapidly in the last decade. According to the international Air transport Association (IATA), The airline industry had another
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These competitors are sharing with Etihad almost the same market segment, and the winner here who can offer customer a better value. Etihad marketing plan was based on giving consumers a leverage traveling experience at affordable price. According to Etihad CCO, Peter Baumgarter, Etihad marketing strategy was built on 4 principles “To avoid undifferentiated superiority, to be inspirational to individual, behave like a luxury brand but don’t lose sight of the entire and introduce Abu Dhabi to the world” (University of Abu Dhabi, 2013 ). From this perspective, Etihad had decided its target market; travelers who are looking for luxuries traveling experience and don’t mind to pay a little extra money. Attracting this segment was not very hard for Etihad by giving economy class traveler a similar experience to what Business class traveler might experience on other traditional airlines. Highly sophisticated entertainment system, full set menu, and extra wide seat are how Etihad differentiated its economy class from other airlines. But Etihad’s marketer didn’t stop there; the plan is to target all segments by going an extra mile for everyone. First class traveler can enjoy a totally isolated apartment on board of Etihad new aircrafts. Etihad recently introduced The Residence which the company describe it as “A truly unique and bespoke travel experience, delivered with complete discretion …show more content…
The target was to introduce Etihad travelling experience and unique facilities. Along with the pricing strategy, Etihad lunched a very generous flyer rewarding program which gives double the miles a client can accumulate with any other program. Etihad came in a partnership with Abu Dhabi Islamic bank, one of the biggest banks in UAE, and other two banks to introduce Etihad Guest credit card. Etihad Guest credit card gives eligible clients an introductory 35000 points which worth a flying ticket from Abu Dhabi to any of Middle East Etihad’s destinations. After the year 2013 Etihad changed it is pricing strategy from discounted prices to price segmentation. As mentioned earlier Etihad’s clients has the freedom to choose among three pricing schemes. The new pricing strategy made it possible for Etihad to compete with low-cost airlines and big airlines equally. Fixed schedule clients can enjoy Etihad flying experience paying the same airfare as any low-cost or traditional airlines. While customer who were not sure of their schedule, can enjoy the flexibility of changing their itinerary with low or no fees at all based on the fare they chose. No matter what category customers chose, the return value is still high. Etihad had and still differentiating its aircrafts facilities to give its clients the ultimate travelling
The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.
The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).
In recent years the Airline Industry in Europe has experienced good levels of growth. Despite instances of deceleration the market is forecasted to remain stable producing moderate growth through to the end of the forecast period in 2018. According to a report issued by MarketLine in 2014 the European Airlines industry had total revenues of $180,945.8m in 2013, which represented a compound annual growth rate
In today’s business industry, the globalization process has become an important aspect and fundamental force. The elements that contribute to globalization is the environment, culture, regulation and technology and production. While the advancements globalization has increased greatly, so has the advancements in airline industry with their aircraft (Shevell, 1999). Globalization also provides a great amount of potential profits to nations and their corporations (Button, 2008). Air transportation has evolved into a major industry (Kroo, 1999). The airline industry’s continuously grows and is facilitated through its international investment, tourism, world trade and economic growth (Kroo, 1999).
In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely.
American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.
Although the company has been able to gain a competitive advantage by distinguishing themselves from the competition, it still remains a difficult industry to compete in. Because the competition is very high it is simple for customers to look elsewhere for a better deal. The product is air travel and there are many competitors offering the same destinations. Airfares and rates vary and the competitors are always pushing to lower rates in order to fill empty seats and ensure profits.
The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.
carrier; the worst all-around carrier charges for every ancillary product. Established under Airline Segmentation, Spirit targets price sensitive, business-class, middle-class, students and solo travelers within psychographics (Zigu, 2017). Consequently, this paper will discuss the carrier; ticket distribution channels, pricing strategy, and product promotion.
Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and
Qatar Airline’s goal is making the airline become the customer’s choice, offering the flight that customers want, and flying to the destination the
One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.
Airline behavior could not be explained effectively with changing cost structure. In the bottom line of any alliance marketing strategies and demand response are important. With Star Alliance, the airline can offer their consumers large and denser global network of airlines with smooth connections among airlines. Airlines have demands with competitive prices in Star Alliance due to economies of scope, scale and density. In Star Alliance partners are able to offer better products and services due to airlines increased capacity to retain and generate passengers (Cullen, Johnson and Sakano, 2000).
Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.
Like any organization, Emirates Airline’s business objective is to grow and operate profitably in a mid to up- size market with a whole range of travel products and services which are aligned to Emirates Groups value of choice, competitiveness, quality, service delivery and return on investments by offering finest selection of worldwide destinations, based on and complementing the Emirates network which are customized according to travelers need (Kotler, 1997).