Industry Research

Overview of the Airline IndustryThe airline exertion is a multimillion dollar patronage which forms bingle of the major contributors of the economic growth of most highly-developed countries . Additionally the effort is tightly linked with the tourism effort which provides for a major source for foreign exchange flood tide into either country According to industry reports the air prompt has been increasing at a steady rate horizontal after suffering from the shock of the events of 9 /11 and the sequential aftermath . In to conduct this industry as economically viable and successful as possible the governments discombobulate invested in the development and maintenance of the tourist resorts and spots as rise as financing and supporting the airline industry digression from increasing the tourism in the country , the airline industry is also directly linked with increasing the incumbent trading activity in the regions . The growing number of business crime syndicate passengers and other passengers blending for business and corporate reasons on the airlines has significantly increased the trade of goods and services across bs more fluent The airline industry is ruled by the similar economic models of activity of supply and demand like any other industry . However the expansive nature of the industry and the scale of its operations require that companies in this industry have to be competitive and much better at apprehensiveness the customer than others in the market . The airline industry produces products which were one considered luxury goods .

The first segmentation and business class environs and facilities provided by the airlines argon still luxury goods but the gather up for the people to travel long distances in a moderate time frame has made the economy products offered by the airlines to constitute necessities instead of luxury items Shifts in Price Elasticity of put out and DemandAs mentioned earlier the goods and services provided by the airline industry are dynamic in nature according to perception runing in the airline industry having the characteristic of harboring some(prenominal) elastic as well as inelastic demand . The definition for the snap fastener of demand states that the price affects the demand of the goods . This is true for the airline industry as when airfares are reduced or discounted packages are offered , the travel via that airline increases showing the demand for the airline industry is elastic in nature . However the elasticity of demand is curb to only the economy class and the luxury / first class The business class offered by the airline industry is non affected by these price changes and as a result is inelastic in nature specially pertaining to demand as for a business traveler it is much more of import to make the meeting and catch the flight in to make it to the important meeting . The goods and service provided by the industry get going normal goods for the customer resulting in price inelasticity of demand for the airline On the supply side the industry faces elasticity and inelasticity both as well . The reason for this is that when the...If you want to get a full essay, order it on our website: Orderessay

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