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Modual Review

ModualReview

ModualReview

Part1

Question1

Sincethe deregulation of the airlines in 1978, pricing of their ticketshas seized to be regulated, this has enabled them to price theirtickets with regards to their interest(Sjögren &amp Söderberg, 2011).However, this method adopted in ticket pricing does not favor theenvironment rendering it competitive and challenging in the currentairline market than it was before. This has sincerely come up becauseof the stiffness in competition amongst companies in the airlinesmarket (Sjögren&amp Söderberg, 2011).Marketing being more challenging than it was earlier, managers haveto follow the deregulation rules to form suitable airline costs thatwould retain and attract more clients. A management dealing with therevenue will work hand in hand to ensure the airline market generatessubstantial financial returns in relation to their pricing decisions(Sjögren&amp Söderberg, 2011).The airline management must ensure that they have an adequate numberof seats, which they can easily quote their price and on the otherhand, the revenue management will suggest suitable seat prices thatwill maximize their financial returns.

Question2

Eachairline adopts a different business strategy that is unique toitself. The different business strategies target the different groupsof prospective customers and the financial capability of each of thecustomers to buy the tickets differs so much(Torlak, Sevkli, Sanal &amp Zaim, 2011).Owing to the different capabilities and features of the customerstargeted by the airlines, they need to have their pricing strategiesas dictated by the business model, the strategy that they adopt, andtheir target group of customers. Each of the airlines has differenttechniques and strategies to manage their revenue as determined bythe complex mathematical models that they use. However, one of thethings that remain a constant is that different passengers will paydifferent amount of money to buy a ticket.

Thereexist different types of travelers, and this will dictate the pricesthat they will pay (Torlaket al., 2011).The classes include business and luxurious travelers. For thebusiness travelers, they are high chances that they will opt to buyrelatively more expensive tickets in exchange for the luxuryexperience when traveling. Their choice to go for expensive ticketsis mainly because the travel expenses are on the company and notthem. On the other hand, for the leisure travelers they are likely togo for the low-cost tickets or affordable fares as they pay them outof their pockets(Torlak et al., 2011).Having the above-mentioned characteristics of the passengers, theairlines must come up with different pricing strategies as dictatedby the business model. Having this in place will ensure that theairlines can comfortably meet the price demands and the needs of thepotential travelers and their target customer base.

Question3

Thepricing manager has a role to play in regards to the pricinginitiatives that are made by the rival companies in the market. Themanager will ultimately decide whether to take action or not to takeaction in response to the pricing initiatives made by the rivals.Depending on the decision that the manager makes, whether or not totake action has either positive or negative impacts on the businessenvironment of the airline (Torlaket al., 2011).Positive impacts on the environment will be good news while negativeimpacts will be indeed bad news for the company. Therefore, the leastdecision that the manager will want to take up is one that leads tonegative results. The airline market is very competitive, and everyairline has to get a way through which it gains a competitiveadvantage over other airlines in the same market.

Devisingways of being competitive enough ensures that the airlines canattract more prospective travelers and have increased market shareand often the process largely entails having a price-cutting strategy(Torlaket al., 2011).A case in point is a new rival that gets into the market withdiscounted fares with a hope to get on board the leisure travelerswho prefer the discounted fares when traveling. Notably, this samestrategy is also applied by the low-cost carriers that have no anyother service apart from the provision of low fares in comparison tothe other airlines. It is at this point that the manager has to makea decision on whether or not to cut prices and any decision that themanager makes will affect the airlines significantly. One of theimpacts is that reduction of the fares may lead to having morepassengers as they will opt to travel through the airline. Theairline will also come up with frequent flier programs. However, ifthe strategy is not well-thought of and properly executed it may leadthe airline into losses. With the losses accrued by the airline,there are high chances it will lose the market share.

Question4

Theairport under focus is the John F. Kennedy International Airport inNew York. This is the busiest international air passenger gateway tothe United States and remains as the fifth busiest airport in theUnited States. The airport has more than ninety airlines that operateout of the airport with direct flights to different parts of the sixcontinents. The airport has six passenger terminals and four runways.It is the hub for American Airlines and Jet Blue Airlines.

Whilevisiting the airport on numerous occasions, I noticed that there arean adequate number of trolleys to the passengers. The airport hasseveral lifts and escalators within the facility, and the cleanlinessof the airport is maintained throughout. Having these services inplace made the airport to achieve a high level of customersatisfaction in regards to attractiveness, convenience, and quality(Graham, 2008).The waiting time, the security checks and the immigration werestandard during the hours that the airport experienced high traffic.Often when the traffic is immense, more check-in counters andsecurity points would be opened to help in shortening the queues andreducing the waiting time. In the end, there is overall satisfactionachieved at the end of the day. Within the airport, there is also ataxi stand that ensures that passengers get convenient access andhigh level of satisfaction as far as transportation is concerned(Graham,2008).

Part2

SurveyQuestions

  1. Was the security clearance process conducted in a standard manner?

  2. Did you have easily accessible public transportation system within the airport?

  3. Does the airport has sufficient amount of restaurants and gift shops?

  4. Are the rest rooms conveniently located?

  5. Do you have a pickup available at the airport? Are they convenient?

  6. Does the airport has enough parking?

  7. Are the taxiways congested?

  8. Are the runways up to standard?

  9. Was the immigration process timely?

  10. Was the baggage made available to passengers on time?

References

Graham,A. (2008). Managingairports: An international perspective (Third ed.).OxfordBurlington, MA: Butterworth-Heinemann.

Sjögren,S., &amp Söderberg, M. (2011). Productivity of airline carriers andits relation to deregulation, privatisation and membership instrategic alliances.&nbspTransportationResearch Part E: Logistics and Transportation Review,&nbsp47(2),228-237.

Torlak,G., Sevkli, M., Sanal, M., &amp Zaim, S. (2011). Analyzing businesscompetition by using fuzzy TOPSIS method: An example of Turkishdomestic airline industry.&nbspExpertSystems with Applications,&nbsp38(4),3396-3406.