Determinants of demand for airline tickets Term Paper

Determinants of claim for flight path tag ends - Term Paper ExampleLarge carriers in the industry have preferably rule the foodstuff, but the tactics of small carriers have been expressed to develop, and be able to penetrate the difficult bear-sized carrier zones, by providing frequent services through low cost carrier. It also elaborates the yield prudence pricing strategy of airline industries to maximize their profits by providing similar services to their customers at polar prices. Finally, early(a) concerns that the customers and airlines should consider before respectively buying and selling their tickets, which may affect their satisfaction and benefits argon discussed. Keywords Airline Industry, Customers, Large Carriers, Small Carriers, Low Cost Carriers Pricing Strategy, Demand, Demand Elasticity, Tickets, Profits ,In Flight amenities Air transportation is one of the fastest modes of travelling in the modern society that has embraced technology and is very(prenom inal) concerned with time management. It is very flexible and timely, but not everyone has had the opportunity to use it. The airf ares are quite expensive and some societies may view air travelling as a luxury. However, airline customers are offered a variety of airline tickets to purchase according to their suitability. ... They include income, ticket price, competitors ticket price, economy state, customers income, availability of substitute mode of transport and substitute price, customer loyalty, fearfulness frequency, and preference among other minor factors (2008). Airline Industry Oligopoly and Ticket Price Taking an example of U.S. market share of the airline industry, in the third quarter of 2009, the four largest carriers, Delta & North, American, United and Continental airlines held 21.8, 15.2, 13.0 and 10.1percents respectively, totaling up to 60.1 % fleck the others held the 39.9 %, which best refer to an oligopoly situation(Airline argument, 2011). In general Enz s tates that air line in United States, European union and Asia are dominated by a few large carriers (2010, 65). The Airline industry consists of numerous firms global wise, and at an individual nation level, that merge up at times to create competition in service production. An action by any firm carrier in the industry has an uphold on the general market since they are interdependent on each other. An entry in the airline industry is often difficult, and the collusion of the few existing companies in the industry gives the merging group sterling(prenominal) marketplace control. While providing similar products that at times may be having no variation, it is often associated with insignificant competition if not none preferring product differentiation for a firm uniqueness. If one firm decides to diversify the ticket price for its customers, then this action would adversely affect the demand of tickets and flow of customers in other firms. Stability of an airline firm in the ind ustry becomes deeply connected to the action and reactions of every private airline firm. If one company