- How the economy affects the success of your chosen industry.
- Economic influences that can affect the industry in a negative way.
The response addresses the queries posted in 2405 words with references.
//Before lettering about the research on the airline industry, we have to understand the airline industry and its business environment. We should know what kind of business the industry is making and the market conditions for the industry. It is also essential to understand about the benefits, the airline industry is contributing to the society. So, firstly we will have generalized information about the airline industry, for the introductory part: //
Airline industry is a large and growing industry. Air travel plays a very important role in economic growth and world trade. It is expanding for either of the following reasons that is for business purpose or leisure travel. It helps in increasing the international investment as well as tourism also. Now the airlines have made it more comfortable to travel from one place to another. Now the airlines are offering reasonable charges. Affordable charges encourage people to travel further to new places. As a result, people have started traveling to new exotic destinations. Billions of passengers are traveling every year from airlines. Airline industry is not only growing in developed countries but it is growing in developing countries also. As the economy of developing countries is growing, the citizens of the developing countries are becoming the new tourists. In future, the citizens of the developing countries would become the new tourists at the international level. Government of developing countries has also realized that the tourism is one of the important factors which help in the growth of economy. Developing countries realized the benefits of tourism to their national economies so they are paying attention to the infrastructure development and the development of resorts. They are trying to provide convenient air travel services. Improved air travel services help in increasing the tourism and as a consequence, it supports their economy. It helps in the growth of airline industry.
//Above, we discussed about the airline industry. Now, we will know about the business, the companies in the airline industry are doing for fetching an international status. The growth rate of the industry at the international level can be understood by the following description.//
Now the companies are becoming international. Companies are doing their business at an international level. Nowadays companies are not only targeting the local citizens but are also targeting the customers, world wide. Many companies of the developed countries are now moving towards the developing countries in search of new markets for their product. Companies are becoming global in the terms of investment, supply, production chain etc. As the companies are becoming global, business travel has also grown. In the growth of business travel, rapid growth of world trade in goods and services has contributed a lot. International direct investment also contributed in the growth of business travel at an international level.
//After analyzing the growth perspective of the airline industry, we will now evaluate the effect of economy on the airline industry. It will further be helpful in analyzing the increase in the number of passengers, profitability of the companies operating in the industry and the labor productivity in the industry: //
Last year, scheduled airlines carried 1.5 Billion passengers. In the last ten years, growth of air travel is satisfactory. The air travel has grown by 7% per year in the last ten years. According to the forecast of the IATA, International Airport Transport Association, at the end of the decade, the air travel will grow by an average of 6.6% per year. IATA also forecasts that from 2000 to 2010 the growth is over 5% a year. Forecast rate given by, International Airport Transport association is almost similar to the rates of the last ten years. Air travel market is highly developed in Europe and North America so the expected growth rate in air travel business is slower ...
We have to understand the airline industry and its business environment. We should know what kind of business the industry is making and the market conditions for the industry. It is also essential to understand the benefits, the airline industry is contributing to the society. We also need to look at the growth rate of the industry in international markets, the effect of the economy on the industry, the strategies that companies use to respond to economic influences, the culture and social responsibilities of airline companies, the challenges that exist in the industry, and key research findings. This solution is 2405 words with five references.