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On a bright winter morning Thursday, December 17th, 1903, for the first time Wilbur and Orville Wright Flyer flew the first powered flight in the world. Was a dream come true for brothers tenacious. This was the beginning of aviation history for consumption.
It was 100 years now, but after deregulation in 1978, and the building industry of the 1980s, we face major changes in the airline industry, the most important purchase of air tickets by travel agencies, higher low-cost carriers and changes in the airline hub-and-spoke route model.
Online travel sites and low-cost carriers have certainly made flying affordable for the hordes of travelers, with a major impact on travel patterns of our decision.
Ahoy! Reducing costs
Okay, guess how many Customers, we around the world. Reports and surveys show that more than 1 billion people are glued to the internet everyday! The advent direct sale of tickets on both individual airlines and discount travel websites have made enormous changes in the marketing and sale of air tickets. Whether American Airlines or United Airlines, Lufthansa or any other airline on earth, ticket booking plane is just a click away!
For example, in 2002, more than 39 million Americans booked travel Travel using websites. Did you know there is an increase of 25% compared to 2001? " Such exponential growth in bookings line resulted in significant cost savings for airlines. For example, buy a ticket from Northwest Airlines by a travel agent costs $ 30. A ticket sold online costs about $ 10. Therefore, distribution and selling costs have been reduced by one third to less than 10% of costs total airline.
What benefits to customers?
It is an easy guess that the price reductions in tariffs are the benefit buy a ticket online. Price transparency requires that airlines adjust to more price conscious consumers. After all, most of us shop around and compare the options prices and tariffs in the different airlines. Added to this, fierce competition and increasing knowledge on alternative flights and airfares continue to drop.
Cost Cutting and flight services
How affected on cost reduction services in flight? One obvious result is the decrease in the number of airlines providing facilities such as meals theft and the usual services. Many airlines are providing fresh and healthy meals without additional costs now sell snacks and meals board. Thus, while flying Midwest Airlines, we buy Deli, lunch and dinner on board selections.
There is a positive side, entertainment systems and individual data ports are becoming increasingly available to consumers. Thus, it is easier for us to remain connected while in the clouds!
Implications of Hub-and-spoke
We know the importance of the hub (airports) are allowed. But such dependence an airport may have important implications for both consumers and airlines. For example, disruption of weather violent May paralyze whole operation is a major airline. This could lead to flight delays, and greater demand for direct flights (cons stops), including business class flyers with tight deadlines. In addition, a greater frequency of flights between the two markets could result in hub airline tickets has increased. Say, if we have a greater frequency of flights British Midland between London and New York, chances are that British Midland rates air between the two hubs will see a sharp increase.
Future Trends
In 2001, commercial airlines carried 450 million passengers. This a huge increase of 250% since deregulation in 1978. According to estimates, over the next 20 years air travel will triple. A prediction interesting is that 70% of flights will be operated from only 25 airports, many of whom, like New York and Heathrow are already so crowded, they can not accommodate more planes. In these circumstances, the only solution is the use of large carriers to accommodate more passengers. The double-deck, four-engine, 555 capacity Airbus A380 has already been tested and is scheduled to start operations at the end of 2007.
Aviation is under way through another change history. Bigger planes to carry more passengers, cheaper flights and airports less. 10 years from now, I wonder how we'll think about that time.
About the Author:
Manoj Borah is a Senior Writer & Journalist working with CheapoAir.com, a top travel site online. Manoj writes and reviews articles with special focus on à la mode vacation spots for budget travelers and road warriors, besides sharing tips and nuggets on booking cheapest airfares, hotels and air travel deals.
Article Source: ArticlesBase.com – Trends in the Aviation Industry: Coping With Change
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