Introduction to Service Marketing (Paperback)

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What factors will influence airline industry's price elasticity of supply and demand? Can airline fuel price influence airport service performance to travellers ?In fact, the airline industry is largely dependent on the supply of the oil industry. Otherwise, the oil industry is inelastic. However, the increase or decrease of the price of airfare is directly related to the increase or decrease of the oil's price to fuel the aircrafts because there has no any new energy which can be substituted to oil fuel to airline industry. So, it seems oil fuel producers are monopolies to control its sale price to be raised easily. Another factor that can affect airline industry to be directly targeted by a tragedy brought about by terrorism. The past four years, from 2001 year to 2005 year, there had been at least $40 billion worth of losses in the airline industry because of the September 11 date terrorism attacks in 2000 year. There had been an expected and significant decrease in the demand for the airline industry services because of the attacks that involved planes hijacking and crashing into key locations like the World Trade Center and the Pentagon in USA. Although, terrorism attacks can bring risk to influence fuel price rising in airline industry. However, this risk occurrence to airline industry is only that after the terrorism attacks occurred. It is possible that terrorism attacks won't occur again in the future. Otherwise, our concerning ought be the greenhouse emissions and how it affects global warming. The air quality would be better once this new regulations are adopted. However, it would affect large airlines. So, it would increase the price of airfares because of economic fees that airline companies have to cover. Air pollution can give a negative impact on the domestic or oversea owned airline companies for long term. If airlines' planes can use clean fuel to fly, e.g. biofuel, then it will bring benefits to global airlines for long term. On the positive side, the environment would be healthier as the earth's temperature would rise, and greenhouse effect would be dramatically reduced. This positive effect can come at a cost that is greater than most people perceive. On the psychology view point on travelers, who will be more preferable to catch planes to go to different countries to travel, due to the chance of air pollution and global environmental warm issues will be reduced to low risk to influence our health if planes can use biofuel to be energy to fly in the future one day. It seems that spending expenditure to research other non polluted biofuel new energy is one solvable method to global airline industry in the future. To solve, any airlines or countries' governments or oil producers ought choose to spend more time to research new biofuel. Otherwise, the predicting when terrorism attacks event will be occurred, it is more difficult to predict the time more than researching to produce new biofuel energy method in the future. So, I recommend that researching the new biofuel energy or other kinds of energy to substitute the oil energy is the urgent behavioral economy which the airlines or oil producers or different countries' governments which need to concern nowadays.

Product Details
ISBN: 9798638878580
Publisher: Independently Published
Publication Date: April 20th, 2020
Pages: 244
Language: English