- May 18, 2020
Eventhough both are within the aviation industry, there is a differencebetween the airlines that buy the airline that buy the airportfacilities direct and the public. For the airport buying thefacilities directly, there are cost implications involved. One suchcost is the negotiation of the gate and facilities of the airportthat they are buying. When they incur the cost of the gate, they aresure of a commercial space where they can carry out their normalcommercial operations. Some of the issues that airline is buying aport directly would consider is adding of extra routes that wouldhelp it later for the expansion when there is a need for it to meetthe growing demand. On the other hand, for the consumers or thepublic, theirs is to use the facilities that are available at theairport. Some of the facilities that the general public use includesthe parking, the waiting bays, the shopping centers, the dining. Theyare considered as the consumption side of the airport products. Inshort, the airlines buy or rent a facility to be used by theconsumers.
Often,it is advised that the best way to segment demand in an airline is bydoing it through the product type. Usually, there are a lot ofconsiderations that have to be made in regards to the marketingapproach that is to be used as an airport manager. Every decisionthat has to be made narrows down to the consumer market within aspecific area.
Inlow cost-service, I will have lower fares and fewer comforts. One ofthe marketing approaches is to introduce the frequent flyer program.Through this program, there is frequent flyer point that is givenwhenever the customers buy the ticket. There are points that whenaccumulate can be redeemed and one gets a free ticket or even upgradetheir class seat as dictated by the company policy in place. Low-costservice there is also point to point approach as another way that canbe used by the low-cost carriers (Akamavi et al., 2015). Throughthis, the low-cost carriers are allowed to their final destinationdirectly without involving a hub. This can attract the customers asthey will save on the time that is likely to be wasted intransitioning. Customers have the will to use the low fare but traveldirectly without time wastage.
Thefull-cost traditional airport is the costliest when operating andmanaging. One thing that I would is to operate on a higher level thanany other airport. This is supported by the fact that there will be aneed for the passengers to travel for them to sustain the largeairports (Button, 2012). I will also incorporate more amenities andservices with some of additional needs being incorporated. Some ofthe extra needs include parking, dining, and even better shoppingareas.
Forthe charter service marketing approach, it is necessary to keep thecosts low. This can be done by having the booking done online throughthe flight`s websites. Also, there is need to have more marketing onthe locations that they serve such as airport transfers and areasthat other individuals do not get into.
Forthe airports attracting many business travelers, the marketingresearch that is related to the size of nearby businesses and any newdevelopment can prove very successful when evaluating the futuredemands. Nonetheless, there is other marketing research that isrelated to these activities that may be instrumental to an airportmanager when estimating demand (De Neufville et al., 2013). One suchother way is for the marketing manager to estimate the future demandfor the airport through researching on the passengers that come intothe airport and getting more information about the profiles of eachof the passengers. Having the information in regards to the itemsabove can then be used by the airport management to their advantage.Also, passengers often travel for different reasons, and there is aneed for the management to find out these reasons and offer therequired services for each of their target customers. This can alsohelp the management to come up with certain specific services fortheir customers (De Neufville et al., 2013).
Accordingto the textbook, airport group refers to the airports that operate asa system or even a group and not those that operate individually. Oneof the critical aspects of the airport groups is whether there willbe strong competition in the groups against one another. Usually,there are merits and demerits for the airports that operate as agroup. One of the positive impacts includes the ability to share theexisting resources and expenses, the capability of cost reductionowing to the scale effects and adoption of a strategic as well as theco-oriented approach when developing the airport. Nonetheless,airport operating as a group has its negative impacts, and one suchimpact is a higher competition for the air traffic between theairports. As much as all the airports work in synch, the individualairport can be more concerned with their specific revenue as opposedto working to achieve the best for all as may be the case. This meansthat the self-interest approach will only hurt the airports in thelong-run.
Akamavi,R. K., Mohamed, E., Pellmann, K., & Xu, Y. (2015). Keydeterminants of passenger loyalty in the low-cost airlinebusiness. Tourismmanagement, 46,528-545.
Button,K. (2012). Low-Cost Airlines: A Failed BusinessModel?. TransportationJournal, 51(2),197-219.
DeNeufville, R., Odoni, A., Belobaba, P., & Reynolds, T.(2013). Airportsystems: planning, design and management.