Essays on Airfare

Economics can be use to provide solutions to various questions that relate to different phenomena, issues, and life events. The understanding of how different economic models are applied in real life situations is vital to the exploration of the underlying causes of various events and analysis of the behavior of economic agents. The most intriguing question of interest to me involves the reasons behind variations in airline tickets. The question is why some airline tickets are expensive than others. I decided to choose this question because it involves various economic factors that can be analyzed through a suitable econometric ...

Ancillary Revenue Management in the Airline Industry

Introduction There is a stiff competition between the network airlines and the low-cost carriers (LCCs) in the airline aviation industry. For a long time, the traditional network airlines have been struggling to cope up with the many economic uncertainties in the industry, especially the rising cost of jet fuels and increasing operating costs. Consequently, to survive in the industry, they have been forced to come up with new ways of generating revenue. Like LCCs, the network carriers are now considering unbundling their services to produce additional income. Network airlines are also adopting the trend of selling chargeable services, which ...

The Honourable Marc Garneau, P.C, M.P.

Dear Minister, Attention- As per a recent study of Airport Council of Canada, as reported by the Canadian Press (2013), 4.8 million Canadian fliers, in the past, preferred to board American flights instead of Canadian carriers, causing the monetary loss of $1.1 billion to the economy besides 9000 job losses to the country. This is despite the fact that the Canadian airports offer one of the best infrastructure and facilities in the world to the fliers. This calls for an urgent need to take the remedial measures to bring back the Canadian passengers ...

Abstract

In today’s competitive landscape, an organization must employ all possible means within reach to maximize growth and profitability by focusing on strategic marketing. Classic Airlines has the opportunity and resources to alter the landscape of the airline industry in its favor. In order to succeed, Classic Airlines must correctly forecast market potential and future demand, by establishing both short- and long-term marketing objectives.

Classic Airlines

Classic Airlines faces an organizational issue requiring urgent solution. The current internal and external marketing programs have not been able to satisfy the needs and wants of the stakeholders. Classic Airlines customers have resorted to ...

Airline firms that do business need to understand the forces that may impact on their survival. This will enable them understand these forces and how they may impact their performance. This will enable these firms to implement strategies to counter these effects in order to maximize profits. This can assist companies to carry out feasibility studies when planning to enter a new market. This will help it analyze different market segments and assist such companies implement business models that are profitable. Bargaining power of buyers This threat is high because most customers ever search for better deals. As such, commercial ...

Demand refers to the quantity of a commodity a consumer is willing to purchase under different conditions. The demand for a commodity depends on a number of factors like the price of the commodity, income of the consumer, the price of substitute commodities, the price of complements, the preference for the good by the consumers, fashion trends, seasonality, and such others. Therefore, the demand function can be written as: QD = F(P, Y, PS, PC, T, O)

Where, QD: Quantity demanded

P: Price of the commodity PS: Price of the Substitute commodity PC: Price of the complementary commodity T: Consumers’ tastes and preferences ...

Once, the decision between car travel and plane travel was an easy one to make. Unless there were major obstacles such as great distance or the need to transport a lot of supplies for the trip, most people found plane travel preferable to car travel. Following the Airline Deregulation act of 1978, flying became affordable to many people and it became the preferable way to travel. However, now that airfares have risen dramatically due to laws and requirements put into place after 9/11, the dramatic increase in the cost of jet fuel and the decreased amount of items you are ...

1. The role of pricing in the marketing mix Pricing is a very important element of the marketing mix. The process of setting the right price for a product plays an essential role in determining the overall success of not only the other elements of the marketing mix but also the overall success and profitability of the firm. It is thus very important that the pricing process of any product of a firm be undertaken carefully to ensure optimal results for the company. Pricing is the most flexible of the marketing mix elements. This ability to change prices according to ...