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Analyze the reasons for the growth in UK low-cost airlines in recent years and then discuss the implications for the tourism as a whole - Essay Example

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The aviation industry is one of the most essential in a country and the global environment at large, not only for facilitation of movements of people across borders but also for the growth and development the tourism sector. This realization has led to many countries developing…
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Analyze the reasons for the growth in UK low-cost airlines in recent years and then discuss the implications for the tourism as a whole
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Analyze the reasons for the growth in UK low-cost airlines in recent years and then discuss the implications for the tourism as a whole

Download file to see previous pages... It is important to note that in many countries, tourism has been taken as an important sector that has caused growth and development of the economies of these countries (Fan 2006, 92). In this understanding, many of these countries have developed proper infrastructure in order to attract people to visit various sites and scenes for the growth of their tourism industry.
The tourism industry has been offering various employment opportunities to people directly and indirectly. In this case, it has helped to achieve various micro and macroeconomic policies in these countries. People have exchange their cultures and learnt various things from those that come from various countries, underpinning the significance of the tourism industry.
Aviation services are inseparably interrelated with the tourism; it provides the essential links to the tourism destinations and gives straight and significant impacts in the business arena as well. As the general standard of living increases and the globalization goes by, the demand for overseas trip has been increasing (Davison & Ryley 2010, 437). Consequently, the importance of functionality of aviation services in tourism is being magnified these days. Due to the nature of the aviation industry, the overall profit structure of industry is inherently vulnerable to irregularity.
According to the IATA statistics, aviation industry has earned over $ 1 trillion in the last 60 years, but they have produced mere $ 32 billion as profit. In other words, an average profit margin is only 0.3 % (Smith 2009, 14). Moreover, Losses and profits fluctuate in accordance with the cyclical pattern. Under these unfavorable circumstances, the United States deregulation act has brought enormous changes in the airline industry. This has enabled aviation corporates to begin turning to the Low-Cost Carrier (LCC) market to secure profitability and competitiveness. ...Download file to see next pagesRead More
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