Monday, November 4, 2019
The airline industry in the US Essay Example | Topics and Well Written Essays - 500 words
The airline industry in the US - Essay Example The best examples are frequent flier program and customers brand loyalty. When customers cumulate their miles in the same airlines they can redeem their points to get some rewards. The industry has low-cost competitors and legacy carriers. Low-cost competitors like jet-blue, focus on the low-cost routes and point-to-point service. They have the diversity of routes in short distance which can increase their demand and increase their revenue. For legacy carriers, like Delta, they offer some international routes which cover large geographic areas and they also offer the better experience for customers. There are some ways to become more competitive. The companies in the airline industry need to provide the better quality of service. E-tickets are a good example since customers can check in online; it may be more convenient for them to take the aeroplane. Also, existing companies in the airline industry should lower their cost to gain more profits. The cost includes rent fee for the airp ort and the labour fee. Location is also a good way for them to become more competitive by offering flights for popular routes. Companies in airline industry should also attract customers from substitutes because customers are very price sensitive, thus the option for them to differentiate products is very limited. For example, if in short distance, customers would like to take cars and trains for travelling. Also for business customers that always go to other cities to meet with their clients or have the conference.
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