We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Determinants of demand for airline tickets - Term Paper Example

Comments (0)
Determinants of Demand for Airline Tickets Author’s Name Institutional Affiliation Abstract This document contains a brief introduction of the airline industry with specified determinants for demand of airline tickets generally from customers, within the competitors and based on income flows…
Download full paper
Determinants of demand for airline tickets
Read TextPreview

Extract of sample
Determinants of demand for airline tickets

Download file to see previous pages... Large carriers in the industry have quite dominated the market, but the tactics of small carriers have been expressed to develop, and be able to penetrate the difficult large carrier zones, by providing frequent services through low cost carrier. It also elaborates the yield management pricing strategy of airline industries to maximize their profits by providing similar services to their customers at different prices. Finally, other concerns that the customers and airlines should consider before respectively buying and selling their tickets, which may affect their satisfaction and benefits are discussed. Keywords: Airline Industry, Customers, Large Carriers, Small Carriers, Low Cost Carriers Pricing Strategy, Demand, Demand Elasticity, Tickets, Profits ,In Flight Amenities Air transportation is one of the fastest modes of travelling in the modern society that has embraced technology and is very concerned with time management. It is very flexible and timely, but not everyone has had the opportunity to use it. The airfares are quite expensive and some societies may view air travelling as a luxury. However, airline customers are offered a variety of airline tickets to purchase according to their suitability. ...
They include income, ticket price, competitor’s ticket price, economy state, customer’s income, availability of substitute mode of transport and substitute price, customer loyalty, fright frequency, and preference among other minor factors (2008). Airline Industry Oligopoly and Ticket Price Taking an example of U.S. market share of the airline industry, in the third quarter of 2009, the four largest carriers, Delta & North, American, United and Continental airlines held 21.8, 15.2, 13.0 and 10.1percents respectively, totaling up to 60.1 % while the others held the 39.9 %, which best refer to an oligopoly situation(“Airline competition,” 2011). In general Enz states that “air line in United States, European union and Asia are dominated by a few large carriers” (2010, 65). The Airline industry consists of numerous firms global wise, and at an individual nation level, that merge up at times to create competition in service production. An action by any firm carrier in the industry has an impact on the general market since they are interdependent on each other. An entry in the airline industry is often difficult, and the collusion of the few existing companies in the industry gives the merging group superior marketplace control. While providing similar products that at times may be having no variation, it is often associated with insignificant competition if not none preferring product differentiation for a firm uniqueness. If one firm decides to change the ticket price for its customers, then this action would adversely affect the demand of tickets and flow of customers in other firms. Stability of an airline firm in the industry becomes deeply connected to the action and reactions of every single airline firm. If one company ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Easy Jet Airline Company
Easy Jet is an airline company with its headquarters in London, Luton airport. In United Kingdom, Easy Jet is one of the largest airline companies, with a high number of passengers and operations both internationally and domestically. The company has more than 500 routes in European, West Asian and North African airports.
5 Pages(1250 words)Term Paper
Demand Analysis
Consumers are willing to purchase SUVs regardless of their price variations because they believe that larger and tough vehicles would protect them in an accident. However, gasoline prices can have an inverse effect on the demand of Toyota SUVs. To illustrate, the Toyota SUV market experienced significant sales declines in 2006 when gasoline price reached $3 a gallon.
5 Pages(1250 words)Term Paper
Internal Analysis and SWOT Analysis of Southwest airlines
Southwest Airline began its operation in 1971 in the United States of America. The paper would accomplish the task of analyzing the performance of the company and synthesizing the internal analysis with the external analysis of the Southwest Airline.
6 Pages(1500 words)Term Paper
Demand and supply theory
Economists are in agreement that prices and quantities are descriptively the most observable attributes of individual interests that interact within a market structure to facilitate a mutually beneficial exchange as envisaged by Adam Smith (Friedman 145).
4 Pages(1000 words)Term Paper
Supply and Demand
There are four primary laws of supply and demand. First, if demand rises and supply remains unaffected, there will be a shortage causing a higher equilibrium cost. Second, if demand lessens and supply remains unaffected, there will be a surplus causing a lower equilibrium cost.
3 Pages(750 words)Term Paper
Aggregate supply and demand
On the other had human beings have unlimited wants. In a free market economy, the forces of demand and supply determine the market equilibrium and the prices are determined by the price system. When a country or a company has a comparative advantage compared to the other countries, producing a same good, the country which has the advantage can supply the good at a cheaper rate compared to the other countries.
5 Pages(1250 words)Term Paper
Demand and Supply Analysis
Consumers must have sufficient purchasing power to no effect on the use of scarce resources. Understanding ceteris paribus is the key to understanding much of microeconomics. Many
3 Pages(750 words)Term Paper
Airline Deregulation Act of 1978
jectives of the Act included the safeguarding as the utmost precedence in air commerce, placing highest confidence on antagonism while providing the services of air transportation, encouraging the air services at the urban areas through the availability of secondary or satellite
8 Pages(2000 words)Term Paper
Demand, supply, and equilibrium
Demand and supply are the fundamental concepts used in economics. The factors of demand and supply form the backbone of the market economy. Demand is the measurement of
7 Pages(1750 words)Term Paper
Money Demand
Other statistical information such as regression are utilized in the essay. The regression has been run using the data of new domestic cars. The unit time is one month and the values per unit time are the amount of money the
8 Pages(2000 words)Term Paper
Let us find you another Term Paper on topic Determinants of demand for airline tickets for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us