...government owned conglomerate, DRB Hicom. But unfortunately, the incident of World Trade Center attacked by terrorist on 11 September 2001 which influence the airline market trend and leading the worst loss in financial. On 2 December 2001, it was purchased by former Time Warner executive Tony Fernandez’s company Tune Air Sdn Bhd and who has remarkable turnaround which making a profit in 2002. AirAsia is the first aviation industry in the region to adopt fully ticketless travel and unassigned seats by implement and maximize their IT field such as yield management system (YMS), computer reservation system (CRS) and enterprise resource planning system (ERP). Those systems given a lot of beneficial in their area such as create its own web page which provides the facilities to book the seat via online and lead the low expenses. However, as of 5 February 2009, AirAsia has adopted allocated seatings across all AirAsia flights, including in their sister airlines which are Indonesia AirAsia and Thai AirAsia. By the year of 2005, AirAsia already had 16 modern Boeing 737 jets. Its company’s headquarter is located in Sepang, Selangor, Malaysia. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA) which is the new home for the AirAsia Bhd and employed 3474 employees to operate the airline business. LCCT...
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...E-Business advantages for Airline Industries Analysis of the supply chain structure of the Airline Industry to highlight the advantages of the e–Business systems Index E-Business advantages for Airline Industries ................................................................................................ 1 Introduction and scope ............................................................................................................................... 2 The Airline Industry .................................................................................................................................. 2 External actors ........................................................................................................................................... 2 I.C.A.O................................................................................................................................................... 3 I.A.T.A. .................................................................................................................................................. 3 EUROCONTROL.................................................................................................................................. 4 The digital flight, how the e-business revolutionized the Airline Industry ...............................................4 Can we make the journey experience different? Should we do it?........................................................ 5 ...
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...(Fahey and Narayanan 1986).Most organizations are susceptible to volatility in their market environment because changes in customer expectations or competitor actions can directly affect their performance (Boyd and Fulk 1996). Shifting market structures and competitive dynamics have compelled organizations to collect, analyze, and act on information from their market environment at an increasing pace (Eisenhardt 1989). It is evident that environmental change is an issue that has strong implications for organizations through its extensive debate in business literature. This essay will endeavor to identify and explain why Internet emerge that have taken place in the external environment is important to the air travel industry, and discuss the likely impact on air travel industry and how marketing might be applied to create a solution, and finally this essay will comments about the effect of Internet on the future of marketing. Discussion Fewer than ten years ago, commercial use of the Internet was considered improper. From 1969 to early 1990s, the Internet was restricted to military, academic, and a few corporate research users. Over 150million people worldwide have become Internet users since 1994. (Ward Hanson 2000). Kozinets (1999) estimated that by the year 2000 over 40 million people worldwide participated in ‘virtual communities’ of one type or another and prodigious growth in the quantity, interests, and influence of virtual communities is guaranteed. Measured by this momentum...
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...the level of adoption in the Nigerian organizations, and the impact on the operations of these organizations as well as investigating the factors responsible for the present level of adoption of these technologies in the organizations. Globalization of the social economy will further increase during the 21st century. The mission of international air transportation will become more important, and all airports around the world will have a significant role to play. Furthermore, it is predicted that air transportation demand in the world will double over the next 15 years. In the meantime, since the September 11, 2001 terrorist attacks on the United States, the environment surrounding the aviation industry has become very severe and has caused adverse impact to the entire aviation industry. Security at airports has been reinforced in all aspects, significantly deteriorated on-time performance, caused mass congestion at the airport, and caused a drastic increase in aviation management and operational costs. Owing to...
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...Written Assignment 1 Frantisek Dzuno 2012-10-MAR-301 Part A Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence. The domestic airline industry has generally been characterized by very high competition and low profit margins. To understand the position of the economic climate in this environment, an examination of Porter’s Five Forces could be used to obtain a better picture of these factors’ within the airline industry. New entrants are usually blocked by the cost or difficulty if entering a market (Boone & Kurtz , 41). The airline industry is a typical case when the extremely high initial cost is the main barrier for new entities - entrants. The investment to build, purchase or rent airplane is enormous. Employees such as pilots and maintenance technicians are expensive to pay. The training efforts are extremely high. Security, safety requirements are heavy regulated. Another important factor which creates a challenge for new entrants to enter the airline market is the brand identity. Airlines with a long history in the industry have created a strong relationship with their loyal customers based on safety records as well as the discount programs they offer (frequent flyer programs, business members) The Power of Suppliers within the airline industry is very low. The main factor relating to the bargaining power of suppliers is the...
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...[pic][pic] E-Commerce Management (Lecturer: Mr Damien Yam) Individual Assignment Assignment Question: Explain how the use of Information Communication Technology (ICT) and E-Commerce has produced competitive advantage to Hospitality Industry Done by: Jane Lim Chiew Ping Submitted on: 19th November 2009 Table of Contents Page 1.0 Introduction……………………………………….. ………03 2.0 E-Commerce Applications for Hospitality Organizations…05 3. Lodging……………………………………………….........06 4.0 Food Industry………………………………………………12 5.0 Meetings and Events………………….……………………14 6. Entertainment/Recreation………………………………….15 7. Airlines………………………………. ……………………16 8. Travel Agents……………………………………………....19 9. Cruise Lines ………………………………………………..21 10. Conclusion……………………………………………….. ..24 11. References………………………………………………….25 [pic] Introduction When most people think about hospitality industry, they have visions of hotels, airlines, cruise ships, restaurants, health spas, and the like, based on their personal experiences. All aspects of the industry are involved in business processes at the operations level. Business processes consist of transactions and interactions with guests or customers, employees and even other businesses. A transaction is an activity such as checking in to a hotel or placing an order in a restaurant. Interactions include the relationships that...
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...Company will cater to the need of people age 55 and over who want the flexibility in traveling by groups or individually. Services will include a web site where customers can create their own customized vacation package or choose from the pre-set travel packages of the week and chat with people who are also interested in traveling with them. Customers will also be able to locate travel buddies if they have an idea of a destination, but do not have a large enough group for traveling. Financing: Initial financing required is $2,105,185, and will be received from venture capitalists and bank loans that will be paid off over 12 years. The invested money from venture capitalists and bank loans will allow Pegasus Travel, Inc. (“Pegasus”) to cover office space, office equipment and supplies, advertising, technology development, salaries and wages and utilities. This report is confidential and is the property of the co-owners listed above. It is intended only for use by the person to whom it is transmitted and any reproduction or divulgence of any of its contents without the prior written consent of the Company is prohibited. II. Executive Summary Pegasus Travel.com (“Pegasus” or “the Company”) is a niche online operator specializing in customized and package tours for the age group of 55 and over (referred to as seniors). It is based on the belief that, as an increasing number of seniors become users of the Internet, combined with an interest in traveling, they will provide...
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...ICTs in the airline industry Dimitrios Buhalis* Centre for eTourism Research (CeTR), School of Management, University of Surrey, Guildford, England GU2 7XH, UK Received 16 June 2002; received in revised form 26 April 2003; accepted 6 August 2003 Available online 13 November 2003 Abstract Information Communication Technologies (ICTs) have revolutionised the entire business world. The airline industry in particular has fostered a dependency on technology for their operational and strategic management. Airlines were early adopters of ICTs and have a long history of technological innovation, in comparison to many other travel and tourism businesses. This paper discusses comprehensive research, including exploratory research with airline executives, using qualitative methods to examine the use of ICTs in the contemporary airline industry and to discuss recent developments in the industry. The work demonstrated that the airline industry was using the Internet to improve its distribution strategy and reduce costs; it also used Intranets and internal systems to develop tactical and strategic management. In addition, Extranets were being gradually used for communicating with partners and to support business-to-business (B2B) relationships. The effort demonstrated that ICTs will be critical for the strategic and operational management of airlines and will directly affect the future competitiveness of airlines. # 2003 Elsevier B.V. All rights reserved. Keywords: Airlines; Tourism; Transport;...
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...Entrants * Threat of Substitutes * Competitive Rivalry between Existing Players * Competitor Landscape * Alaska Airlines * Southwest Airlines * United Airlines * Air Canada * Key Success Factors * Internal 16-23 * Resources * Tangible * Intangible * Value Chain Analysis * Primary Activities * Secondary Activities * Capabilities * VRIN Testing * Core Competencies SWOT Analysis 24-25 * Strengths * Weaknesses * Opportunities * Threats Strategy Formulation 26-28 * Strategic Alternatives * Alternative Evaluation * Alternative Choice Strategic Alternative Implementation 29-31 * Action Items * Action Plan References 32 Strategic Profile: Company Introduction Alaska Air Group is made up of two principle subsidiaries Alaska Airlines and Horizon Airlines. Alaska operates all jet engine aircraft with average mid-range flight distance of 1,051 miles while Horizon is a short distance carrier averaging around 386 miles. Horizon also uses both turbo prop and jet engine aircraft. Alaska Airlines respectively has 115 jet engine aircraft in the form of 737’s and MD-80’s.1 The two carriers operate in an integrated fashion allowing for a...
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...INTERNET EFFECTS ON TOURISM INDUSTRY Ericka Duncan Ortega erickaduncan@hotmail.com Doctoral Student Universidad de Las Palmas Gran Canaria This article aims to demonstrate the positive effects of the Internet on the tourism industry in three main areas: planning travel, commerce and industry structure. The document highlight that the journeyers have several tools provided by the Internet to receiving, looking for and sharing information to plan their travels. Also, Global Distribution Systems via the Internet have provided a new distribution channel for the retail of touristic products and services. Finally, the Internet has affected each actor of the value chain in the tourism industry. For the suppliers the Internet is providing directly information of their customers helping to increase their sales. Finally, the intermediaries have realized that they have to adapt to the new environment. Key Words: Tourism, e-tourism, travel, GDS, information communication technologies. JEL: L83, L86 To be or not to be is not longer the question, the real question in tourism is where to go, how to go and what to do. Nowadays, these are very easy questions to answer in contrast to Hamlet`s dilemma. Tourism is one of the largest industries in the world. Certainly, in 2008 the World Tourism Organization (WTO) reported 924 million international arrivals around the world, and according to the World Travel & Tourism Council (WTTC) this industry represents around 11% of...
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...Southwest Airlines Research Report Tommy Best - Jessica Johnson - Adam McCormick Laura Monday - Evvan Tolly - Jessica Wirth Mary Wrenn ADV 340 - Dr. Childers - Fall 2009 Table of Contents Industry Overview Introduction....................................................................................................................................................................................................................... 1 History............................................................................................................................................................................................................................... 2 Size of Industry.................................................................................................................................................................................................................. 2-3 Stage in Product Life Cycle.................................................................................................................................................................................................. 3-4 Seasonality......................................................................................................................................................................................................................... 4 Growth Potential/Forecasts..........................................................................................................
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...the airline industry. As a cost leader they aim to achieve high volume sales by attracting customers with low prices. As a result of charging some of the lowest prices in the industry, Ryanair has seen growth in traffic and reported record revenues. To remain profitable the company focuses on maintaining low costs and efficient operations. The key issues facing Ryanair include how to remain profitable in light of rising fuel prices and currency exchange risk, the ability to maintain market share and growth in a segment characterized by intense competition, and whether or not it would be profitable to expand into the growing international/emerging markets and internet retailing space. In addressing these key issues, it is recommended that Costco focuses on opportunities in the internet retailing space to grow bottom and top line growth as well as increasing market share. It is also recommended that they remain committed to their low cost high inventory turnover strategy in order to continue to offer consumers the lowest prices and achieve high inventory turnover. By taking these initiating the strategies summarized above, Costco will be able to maintain their position as market leader and continue to operate profitably in the discount membership warehouse segment of the retail industry. Business Model & Strategy Ryanair operates as a cost leader in the low cost segment of the airline industry. As a budget carrier they aim to achieve high volume sales by attracting...
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...Marketing Research Paper Air Leo Airline ______ This Air Leo airline will base its business and marketing strategies on achieving high, and profitable, load factors through absorption of unmet demand in three key air-traffic categories: unserved and under-served routes on which high unmet demand currently exists or can be readily developed; serving key niche markets where demand is either unmet or poorly served; and meeting peak traffic demands on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing but lower-quality competition, or where competition cannot meet the demand. The proposed Air Leo airline will be designed around, and operated utilizing, the most up-to-date electronic, informational, and aviation technologies to ensure low operating and marketing costs, maximum efficiency in deployment of its resources, and a high level of customer service and convenience. And it is this final element - dedicating the airline, its staff, and its organization to providing a high level of customer service and convenience, and efficiently meeting the needs, wants, comfort, and safety of the passenger - that will assure the proposed airline's rapid acceptance in the marketplace and its long-term growth and success. How the company will execute the Marketing Plan: 1. Provision of high-quality service on routes and in markets that currently are either unserved, poorly served, or under-subscribed by existing carriers...
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...Introduction Which is the one place where you can satisfy your every need (almost every need) at your price? Be it airline tickets, hotel rooms, rental cars, mortgages, new automobiles, or even long distance calling time. The answer would be Priceline.com. All you have to do is know your need, state your terms, and make your offer. It doesn’t get easier than this! Priceline.com was one of the pioneer online companies to traverse the traditional limitations of the Internet and revolutionize online purchasing. It’s strategy – letting the consumer name his/her price, and matching it with a seller who is willing to fill the demand at that price and those conditions, there by providing the required service the consumer desires. Thus Priceline.com is basically an integrated, Web-based e-marketing automated system, which was one of its kinds when it started its business in the consumer marketplace. In simple word it is the ideal middleman, who gets you what you want, when you want it through a unique dotcom experience. Priceline.com was formed on April 6, 1998 as a limited liability company, but looking at its potential and rapid success it was soon converted into a corporation. It activities at this time dealt mainly with providing leisure airline tickets with the unique difference of letting the customer name his/her own price. By December 31, 1999 its services included hotel rooms, mortgages and new automobiles. The Company's licensee, Priceline WebHouse Club, Inc., soon launched...
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...Introduction Recent events in the cruise industry, specifically a terrorist attach on a cruise ship in the Caribbean, are expected to affect cruise travel negatively over the next year. Based on the effects of past terrorist attacks on the airline industry, overall bookings for cruises worldwide are expected to drop by 50%-55% over the next six months, and 30%-35% overall for the next year. If there are no further incidents, worldwide demand for cruises could be restored to 2012 levels by 2014. A projection for 2013 and 2014 is included in Appendix A. During this downturn period, the Board has mandated that Coast4Life remain profitable and explore methods to reduce costs and/or generate revenue. As directed, the following four options were analyzed: divest the Fraser dry dock, target a more profitable market segment, register Coast4Life’s ships in Liberia and hire crews and hospitality workers from underdeveloped countries for low wages, and implement a web-based booking system to take advantage of the increasing numbers of travellers who are making reservations via the Internet. Analysis Option One: divest the Fraser dry dock. An offer has been made for the dry dock land, facility and equipment for $4.3 million. The current book value of the dry dock is $2.6 million. While the sale will generate cash (see Appendix B), the location of the dry dock next to the Head Office and passenger dock offers future growth opportunity. The sale may also affect the organization’s reputation...
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