Podcast
Questions and Answers
Which airport was ranked eighth in the world's busiest airports by international passenger traffic in 2013?
Which airport was ranked eighth in the world's busiest airports by international passenger traffic in 2013?
What is the first step in the four-stage process of marketing management for airline services?
What is the first step in the four-stage process of marketing management for airline services?
In product planning for airline marketing, which of the following is NOT mentioned as important?
In product planning for airline marketing, which of the following is NOT mentioned as important?
What aspect is emphasized as vital for airline marketing in the content provided?
What aspect is emphasized as vital for airline marketing in the content provided?
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Which of the following airports is ranked the highest based on international passenger traffic as of 2013?
Which of the following airports is ranked the highest based on international passenger traffic as of 2013?
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What percentage of airline carriage is typically attributed to business travel?
What percentage of airline carriage is typically attributed to business travel?
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Which fare type is specifically designed for tourists?
Which fare type is specifically designed for tourists?
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What is one of the main reasons for reduced airline fares during fluctuating world trends?
What is one of the main reasons for reduced airline fares during fluctuating world trends?
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Which organization is primarily focused on U.S. domestic airlines?
Which organization is primarily focused on U.S. domestic airlines?
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What term is used to describe fares set by government directives?
What term is used to describe fares set by government directives?
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Which of the following statements is true regarding the airline industry?
Which of the following statements is true regarding the airline industry?
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Which of the following associations allows passengers to buy a single ticket while using multiple airline operators?
Which of the following associations allows passengers to buy a single ticket while using multiple airline operators?
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What is one of the impacts of quick and efficient transportation on travel?
What is one of the impacts of quick and efficient transportation on travel?
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What is one of the main functions of a Global Distribution System (GDS)?
What is one of the main functions of a Global Distribution System (GDS)?
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Which of the following is NOT a brand of Travelport's Global Distribution System?
Which of the following is NOT a brand of Travelport's Global Distribution System?
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What distinguishes a scheduled carrier from a charter operator?
What distinguishes a scheduled carrier from a charter operator?
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Which of the following best defines a low-cost carrier?
Which of the following best defines a low-cost carrier?
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Which of the following services does GDS NOT provide to travel agencies?
Which of the following services does GDS NOT provide to travel agencies?
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Why might a customer choose a charter flight over a scheduled carrier?
Why might a customer choose a charter flight over a scheduled carrier?
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What is a common misconception about the role of Global Distribution Systems in the travel industry?
What is a common misconception about the role of Global Distribution Systems in the travel industry?
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Which type of airline typically operates flights that are more expensive due to their exclusive arrangements?
Which type of airline typically operates flights that are more expensive due to their exclusive arrangements?
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What percentage of the regional market does American Airlines hold?
What percentage of the regional market does American Airlines hold?
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Which countries agreed to subsidize service to Miami in 1997?
Which countries agreed to subsidize service to Miami in 1997?
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What is one major problem faced by Caribbean airlines?
What is one major problem faced by Caribbean airlines?
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What strategy can help Caribbean Islands manage air service problems?
What strategy can help Caribbean Islands manage air service problems?
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What hindered the implementation of the multilateral air service agreement in 1995?
What hindered the implementation of the multilateral air service agreement in 1995?
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What is a potential consequence of Caribbean airlines prioritizing cost-cutting?
What is a potential consequence of Caribbean airlines prioritizing cost-cutting?
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What recent agreement did CARICOM members pursue to benefit the region?
What recent agreement did CARICOM members pursue to benefit the region?
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What approach have several Caribbean airlines taken to manage fuel costs?
What approach have several Caribbean airlines taken to manage fuel costs?
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What is one reason airlines servicing peripheral routes charge higher airfares than trunk routes?
What is one reason airlines servicing peripheral routes charge higher airfares than trunk routes?
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What spatial strategy did US airlines adopt following deregulation?
What spatial strategy did US airlines adopt following deregulation?
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What change occurred regarding passengers needing to connect flights as a result of deregulation?
What change occurred regarding passengers needing to connect flights as a result of deregulation?
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What negative effect of deregulation is argued regarding smaller communities?
What negative effect of deregulation is argued regarding smaller communities?
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What was a concern regarding the hub system introduced after deregulation?
What was a concern regarding the hub system introduced after deregulation?
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What trend was observed in the fatality statistics from 1975 to 1990 in US civil aviation?
What trend was observed in the fatality statistics from 1975 to 1990 in US civil aviation?
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Which of the following best describes the Caribbean airline market post-deregulation?
Which of the following best describes the Caribbean airline market post-deregulation?
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What did many airlines seek to achieve post-deregulation regarding their workforce?
What did many airlines seek to achieve post-deregulation regarding their workforce?
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Study Notes
Tourism Industry
- Tourism is the world's second largest industry.
- The travel industry thrives due to efficient transportation infrastructure.
- The travel industry is sensitive to inflation and unemployment, making it a luxury for many.
- Airlines have adapted to fluctuating travel demands by creating different fare categories: First class, Economy, Excursion, and Charter.
- IATA and government directed fares are the two major fare categories used by airlines.
- 35% of airline carriage was for business travel, but airlines sought to expand to the holiday market to increase demand.
Air Travel History
- Jet travel only became prominent in the second half of the 20th century.
- Cooperative organizations like the Air Transport Association (ATA) and International Air Transport Association (IATA) improve industry efficiency.
- These associations allow passengers to buy a single ticket for a journey involving multiple airlines.
Busiest Airports
- London Heathrow Airport is the busiest airport globally based on international passenger traffic.
Airline Marketing
- Airline marketing can be described as a four-stage process:
- Identify target markets and segments through research.
- Product planning, which includes price determination, market research, and analyzing competitor features.
- Develop a marketing plan to facilitate sales.
- Monitor and review service standards using customer feedback, sales data, and surveys.
Airline Marketing Needs
- Airlines need to shift from operational bias to a market-oriented approach to meet customer needs.
Global Distribution Systems (GDS)
- GDS provides travel providers and travel agencies with aggregation, search, and transaction processing services, allowing them to book travel products from multiple providers.
- Examples of GDS include: Apollo, SABRE, Amadeus, Galileo, Abacus CRT, Travelport, Worldspan.
Scheduled Carriers vs Charter Operators
- Scheduled carriers operate on specific routes at set times, for hire, under Federal Aviation Regulation guidelines.
- Charter operators, or air taxis, operate flights outside of regular schedules, often at a higher price, upon request by a specific customer.
Low-Cost Carriers (LCC)
- LCCs offer lower fares but reduce traditional passenger services.
- LCCs often have a higher fare on peripheral routes compared to trunk routes.
- Deregulation has led to increased passenger volume due to discounted fares.
Deregulation and Air Travel
- Deregulation in the US led to the "hub and spoke" structure for airlines, a more efficient system but criticized for negative impacts on smaller communities and service quality.
- Some argue that the hub system increases the potential for accident risk due to more takeoffs and landings in one location.
- Deregulation has provided more control to airlines over their workforce, enabling them to pursue productivity increases and economies of scale.
Caribbean Airlines
- CARICOM countries lack an integrated regional airline system.
- The Caribbean airline market is fragmented, with larger national airlines and smaller operators.
- Leeward Islands Air Transport (LIAT) was a regional airline that is now defunct.
Airlines Flying Caribbean from the U.S.
- Numerous airlines serve the Caribbean from the U.S., including:
- American Airlines
- Caribbean Airlines
- Bahamasair
- Cayman Airways
- Continental
- Delta Air Lines
- Jet Blue
- Silver Airways
- Spirit Airlines
- Southwest Airlines
- United Airlines
- Frontier
- Lynx Air
- Mexicana
- North American Airlines
- Northwest Airlines
- Pan Am 800
- US Airways
Integration Challenges
- Caribbean airlines serve different market segments, leading to limited efforts to integrate.
- Many airlines struggle to be profitable, and several smaller airlines are at risk of closing.
- Larger carriers have been denied permission to serve US routes due to failure to meet operational standards, making the region dependent on foreign carriers.
US Dominance in the Caribbean Market
- American Airlines holds 65% of the regional market and has reduced services on key routes.
- The Caribbean islands have faced pressure to subsidize services to retain certain routes.
- The heavy influence of foreign airlines with self-interest poses a risk of exploitation for the Caribbean.
Problems in the Caribbean Airline Industry
- Uncertainty about the reliability of foreign airlines during difficult times.
- Caribbean airlines are indebted and under pressure to be profitable, potentially impacting service to smaller islands.
Managing the Problem
- The Caribbean islands can manage challenges by liberalizing commercial arrangements and regulations to ensure efficient market demand.
- Many air services are governed by bilateral agreements, leading to restrictions on capacity, routing, pricing, and competition.
Existing Issues
- CARICOM countries attempted a multilateral air service agreement in 1995 but faced domestic opposition.
- Carib-Express failed to acquire landing rights in some countries.
- Competition from other airlines has added pressure.
Future Prospects
- CARICOM members have agreed to move toward a harmonized regional transportation policy to create a single market and economy.
- Several Caribbean airlines are collaborating on bulk fuel purchases.
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Description
Test your knowledge on the tourism industry and the history of air travel. This quiz covers topics such as airline fare categories, the impact of economic factors on travel, and the role of major organizations in the industry. Discover how the travel landscape has evolved over the years and identify the busiest airports around the globe.
