Jetstar is an international airline company who is categorised into the international airline industry. The global airline industry transports worldwide via at least 23,000 aircrafts of all sizes. Due to being a global industry, the trends in the macro environment have endless effects on the operations of airlines worldwide. (MIT, 2015)
Sociocultural
• Increasing numbers of people anxious of flying due to recent disasters such as 9/11, MH370 and MH17 has led to decreases in the number of people traveling on airlines due to fear of their lives and safety. (Research and Markets, 2015)
• The growing trend of tourism and travel becoming more attractive means there is higher demand for international flights, and a greater diversity of cultures on board. Thus leading to an increase in revenue for the industry, but also increased risk of upsetting a certain culture’s ethic. (What’s next, 2015) • Airlines are battling too keep up with the desired comfort and service levels of consumers, therefore searching to develop more entertainment, enhanced methods of dealing with baggage and comfier seats on board, to retain high levels of customer satisfaction and revenue. This may be a potential threat or opportunity. (PWC, 2015) Technological • Rapid advances in technology allow the industry to create more efficient operations such as online check-in or ordering coffee’s from mobiles, ready to pick up before boarding. (Airline trends, 2015) Greater conveniences increase the will of passengers to travel, in turn, increasing profits and many future opportunities. (Seatguru, 2015) • Billboards and posters are becoming obsolete, as more and more, cheaper marketing and promotional options are becoming available. This allows the industry to advertise via the Internet or social media, which reduces costs and reaches a larger portion of the population, benefiting the industry’s profits and decreasing expenses. (Seen Best, 2015) • Technology developments allow aircraft manufactures improve the efficiency of the planes, fit more people, be more comfortable and fuel and energy efficient. This also interrelates with environment benefits, due to more people per plane, and greater efficiency, allowing fewer flights, less emissions and greater revenue. (Seatguru, 2015) Economic • Fuel is currently the largest industry expense, and with fuel prices constantly rising on a global scale, the industry expenses are also increasing. This negatively affects the industry in terms of expenses and profits. (MIT, 2015) • World GDP is currently 2.8% and growing, increasing supply and demand levels in the economy (World Bank, 2015). Considering the airline industry contributes to 3.4% of the total GDP, stimulation in the economy results in increasing growth of the economy itself. (Air Transport Action Group, 2014) • Current economic …show more content…
Thus, negatively affecting the industry in terms of economic benefits.
• As sustainability is as concept that has growing importance, the industry is becoming increasingly committed to applying ‘green’ and environmentally friendly methods to manufacturing, in order to decrease the amount of greenhouse gases produced when flying, and satisfy customers. (Seatguru, 2015)
• In order for airlines to operate, there are mass amounts of infrastructure required, from airports and runways, to aircraft manufacturing factories. This affects the industry, as if the infrastructure cant keep up with the increasing demand for air travel, potential profits will not be gained. (Enviroaero, …show more content…
This improves the ability to reach more destinations, governments to interact and grow closer to other
Sociocultural
• Increasing numbers of people anxious of flying due to recent disasters such as 9/11, MH370 and MH17 has led to decreases in the number of people traveling on airlines due to fear of their lives and safety. (Research and Markets, 2015)
• The growing trend of tourism and travel becoming more attractive means there is higher demand for international flights, and a greater diversity of cultures on board. Thus leading to an increase in revenue for the industry, but also increased risk of upsetting a certain culture’s ethic. (What’s next, 2015) • Airlines are battling too keep up with the desired comfort and service levels of consumers, therefore searching to develop more entertainment, enhanced methods of dealing with baggage and comfier seats on board, to retain high levels of customer satisfaction and revenue. This may be a potential threat or opportunity. (PWC, 2015) Technological • Rapid advances in technology allow the industry to create more efficient operations such as online check-in or ordering coffee’s from mobiles, ready to pick up before boarding. (Airline trends, 2015) Greater conveniences increase the will of passengers to travel, in turn, increasing profits and many future opportunities. (Seatguru, 2015) • Billboards and posters are becoming obsolete, as more and more, cheaper marketing and promotional options are becoming available. This allows the industry to advertise via the Internet or social media, which reduces costs and reaches a larger portion of the population, benefiting the industry’s profits and decreasing expenses. (Seen Best, 2015) • Technology developments allow aircraft manufactures improve the efficiency of the planes, fit more people, be more comfortable and fuel and energy efficient. This also interrelates with environment benefits, due to more people per plane, and greater efficiency, allowing fewer flights, less emissions and greater revenue. (Seatguru, 2015) Economic • Fuel is currently the largest industry expense, and with fuel prices constantly rising on a global scale, the industry expenses are also increasing. This negatively affects the industry in terms of expenses and profits. (MIT, 2015) • World GDP is currently 2.8% and growing, increasing supply and demand levels in the economy (World Bank, 2015). Considering the airline industry contributes to 3.4% of the total GDP, stimulation in the economy results in increasing growth of the economy itself. (Air Transport Action Group, 2014) • Current economic …show more content…
Thus, negatively affecting the industry in terms of economic benefits.
• As sustainability is as concept that has growing importance, the industry is becoming increasingly committed to applying ‘green’ and environmentally friendly methods to manufacturing, in order to decrease the amount of greenhouse gases produced when flying, and satisfy customers. (Seatguru, 2015)
• In order for airlines to operate, there are mass amounts of infrastructure required, from airports and runways, to aircraft manufacturing factories. This affects the industry, as if the infrastructure cant keep up with the increasing demand for air travel, potential profits will not be gained. (Enviroaero, …show more content…
This improves the ability to reach more destinations, governments to interact and grow closer to other