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 industrythe 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
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
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