Abstract
The research within this study examines the underlying influences that propel consumers to use international airline travel. With much of the previous studies focusing on economic principles, this investigation seeks to determine the value that the inclusion of social data has on the travel desire. The underlying concept of this study is to explore common economic influences and combine this understanding with the social and emotional drivers that serve to sustain the effort. Using a combination of case study and academic, peer related material this paper will assess the past, current and future potential in a direct effort to construct a reasonable guide to the evolution to the international airline industry. This study is has the opportunity to examine the airline industry components working together, as opposed to a single perspective. The results reflect a growing recognition on the value of air travel and the associated ability for the consumer to easily access the regional facilities. Considering the building impact of economic and social international integration efforts adds depth to the demonstrated results.
Air transportation has increased in value in many areas as a result of the growing influence of innovation and technology. Suryani, Chou and Chen (2010) argue that the forecasting methods of air passenger demand will be utilized in many security and social integration efforts globally. The ability to correlate factors that include emerging economic and social issues that drive international travel will enable the creation of a credible consumer prediction model. Smyth and Christodoulou (2011) utilize the growing number of aircraft ordered internationally as a fundamental sign of the impending massive growth of the world wide air travel industry. Alongside this evolution must be the responsible extension of security and social measures that ensure a positive experience.
This study will examine the past influences on the air travel industry with the focus on developing a data range upon which to build a solid foundation. Following this segment with an assessment of modern airline practice in response to these variables will allow a credible illustration of the positive and negative aspects of the system currently in place. Combining the first segments, in order to illustrate the correlation between influence and action, will enable a reasonable assessment for the future potential of the influences for international air travel industry.
In the end, this investigation will have examined past practice, modern application and future potential with the stated goal of assessing the influences on the air travel industry and the potential for these to be successfully navigated.
Past Practice
The international airline industry has an established set of variables in order to predict potential market demand (Wensveen and Wells, 2010). With factors that include market growth assessments in order to establish the presence of long term trends in the industry, the airlines have long sought out an effective means of establishing a credible model. Many personal and economic variables have the potential to play a direct role in the amount of international air travel experienced at any one moment (Wensveen and Wells, 2010). Cyclical variations in the global economy as well as seasonal phenomena that may include adverse weather have the very real possibility to add to, or decrease, the amount of active travel over the course of a week, month or year. Alongside the predictable patterns of consumerism, unique factors have the potential to fundamentally alter the behaviour of airline consumers (Wensveen and Wells, 2010). Strikes, political upheaval and underlying natural disasters can radically impact the amount of revenue experienced in the region.
Globally, the regions of North American and Europe have experienced a more robust form of airline related regulatory trends, allowing a more liberal approach to business (Wensveen and Wells, 2010). This approach enables the companies themselves to assume more control over their operations, thereby increasing consumer relations, which in turn allows basic capitalism to function. The Asian regions that include China and India have begun to emerge as a building source of airline revenue (Wensveen and Wells, 2010). This growth in air travel corresponds with their strengthening economy and international standing as a productive marketplace. Current trends have the air hub located in the Hong Kong-Taipei as the busiest international airport, clearly signally the importance and growing clout in the region (Wensveen and Wells, 2010). The influence of economics has always served a vital role in the developing airline industry.
The conclusion of the twentieth century as well as the first portion of the modern era has seen the travel industry expand at a dynamic pace, on a global scale (Pascu, 2012). With an unrivalled position, the airline industry is poised to become one of the most important points of access around the world. This developing economic and social influence will serve to benefit the nation that has the capabilities of capitalizing on the opportunity. It will be the nations that can provide the physical infrastructure, security and access opportunity as well as long term support that will yield the best overall results (Pascu, 2012). This fact will lead to an advantage in the coming international integration efforts, as the more prepared nations will draw in more tourism and business potential.
Modern Practice
Evolving theory regarding the influences of travel has begun to look past the economic factors to incorporate many social elements into innovative models (Thitthongkam and Walsh, 2011). This recognition has tied the revenue stream directly to the areas of society that are most related to air travel industry. Tourism is a critical travel industry that combines the elements of finance with the reality of needing to connect with society (Thitthongkam and Walsh, 2011). The relative competitiveness of the industry in any given region has the potential to create incentives for travel to the area. Utilizing the Thai Tourism industry as an example Thitthongkam and Walsh (2011) clearly illustrate the direct ties that political instability, epidemic disease, the media, disaster and culture have a long lasting impact on the amount of air travel to the region. With an increased negative perception regarding the social backdrop, the air travel is profoundly reduced, with the converse proving out in the case of positive variables.
Lacking any credible support system, the airline industry in the Thai region is dependent on the associated factors in order to sustain operations (Thitthongkam and Walsh, 2011). This series of external influences to the airline industry can be found in any nation around the globe. Just as economic factors have the ability to influence the revenue stream of the international airline industry, the associated social factors carry equal weight.
Smyth and Christodoulou (2011) utilize a massive upturn in sales in the Arabian Gulf to signify an impending growth of the airline industry in the region. Emerging markets that include many of the nations that reside in the Arabian Gulf are predicted to expand at an incredible rate once the global recovery has been firmly established. Economic, social and demographic factors are tied into the perception of increased air travel, with a large portion of the argument resting on the maturity of underlying marketplace (Smyth and Chrisodoulou, 2011). This approach elevates the value of an established support infrastructure that allows for a sustained prediction of potential consumer habits. Smyth and Chrisodoulou (2011) continue on to conclude that the wide disparity of influences surrounding air travel motivation make any true prediction model heavily dependent on the overall reliability of the data from which the variables are determined.
Combined with a nation’s economic efforts, the tourism and travel industry act as a stimulating influence (Pascu, 2012). With positive exposure the associated rise in both of these sectors will serve to propel the airline industry to further revenue. The international compulsion to make the most of many of the emerging markets drives many of these smaller, less established regions to become a prime attraction. Coupled with a savvy tourist marketing effort, the influences of finance and vacation have the possibility to drive many nations to fund the airline industry with the solitary goal of providing an access point to the rest of the developing world (Pascu, 2012). Just the airline industry directly benefits from the success of the national tourism efforts, so too do the underlying restaurant and hotel accommodations benefit from a strong airline industry. An established destination is often a powerful influence to the air traveller, further indicating that the more strength a national and international support infrastructure is, the better position of advantage that region will possess (Pascu, 2012). With the readily available nature of the resources available for tourist activities, the airline industry has the potential to truly maintain a reciprocal relationship, providing even further incentive for consumers to choose the destination.
Future Potential
The potential to forecast the travel habits of consumers has driven the need to develop a method to accurately chart the influences associated with the influx of consumers (Suryani, Chou, and Chen, 2010). Alongside the development of the airline industry must be the understanding of what compels the international community to participate. This understanding will propel the industry to the next level. Employing a combination of societal data combined with economic practices will enable the creation of dynamic prediction models capable of anticipating the needs of the global population (Suryani, Chou and Chen, 2010).
Initial researches into the influences that drive the airline industry focused on passenger numbers and producing a static system of evaluation have been transformed with new understanding (O’connor and Fuelhart, 2012). The recognition that there are several levels of concern including the state of security, overall economic conditions and political stability, has enabled the means to produce a credible prediction model. Not only do the personal and social factors serve to influence air travel, the physical ease of access to the airline facilities increases the variables (O’connor and Fuelhart, 2012).
It is the realization that the building dependence on air travel will call for a further expansion of available services is the incentive that serves to give fuel to the desire to properly prepare the entire international community. Utilizing individual characteristics that are present in every scenario, the ability for the regional service to improve has been demonstrated (O’connor and Fuelhart, 2012). The application of past and future lessons to the future decision making models has the potential to carry the next generation of innovation forward. Using unique city and national classifications in order to achieve a better level of service will enable each access point for the entire airline industry to provide the best possible products for each individual market.
In Conclusion
Air transportation has increased in value, in some cases becoming the very life line of emerging economies. This study has presented evidence that demonstrates the wide range of influences that serve to impact the international airline industry. From concerns that range from security, to political instability and the very real concern of being able to leave upon entering, the need to clarify and develop the airline industry is a clear indicator of the international drive to integrate on a social and economic level.
Various studies have illustrated the expansion potential in the airline industry, giving further credence to the argument that every level influence must be considered in order to provide the best possible service. Through the recognition of the social elements that play a fundamental role in the determination of air travel, the means to create a model that takes into account not only the fiscal factors but the potential emotional variables has the opportunity to increase the underlying efficiency of the entire system. This approach will continue to, build future value into an already indispensable system.
In the end, this study has demonstrated that the world is growing ever more dependent on air travel, which in turn requires a credible system that enables positive consumer relations. Understanding and adjusting to the influences that surround the need to travel will produce an airline industry that has the capability of sustaining itself through the next generation. It will be a combination of past experience, current research and future potential that serve to build the international communities ability to successfully utilize the airlines.
References
O'connor, K. and Fuelhart, K. (2012). Cities and air services: the influence of the airline industry ☆.Journal of Transport Geography, 22 (1), pp. 46-62.
Pascu, E. (2012). Tourism Infrastructure – a Factor which Influences the Quality of Tourism Services.Dimitire Cantemir Christian University, 1 (1), pp. 265-270.
Smyth, A. and Christodoulou, G. (2011). Maturity in the passenger airline industry?: revisiting the evidence and addressing maturity in forecasting the future market for air travel. Association for European Transport, 1 (1). p. 1-100.
Suryani, E., Chou, S. and Chen, C. (2010). Air passenger demand forecasting and passenger terminal capacity expansion. Expert Systems with Applications, 37 (3), pp. 2324-2339.
Thitthongkam, T. and Walsh, J. (2013). An Analysis of Factors Influencing the Competitiveness of the Thai Tourism Industry. 2010 International Conference on Business and Economics Research, 1 (1), pp. 138-141.
Wensveen, J. and Wells, A. (2010). Air transportation. Aldershot, England: Ashgate. P. 1-200.
