Johnny Ch Lok

Online and Walk in Travel Agent Strategy Comparison Johnny Ch Lok

Airline travel agency AirAsia in the domestic airline low cost strategyThere are three major characteristics of the airline industry namely is product nature, its expenditure structure and its market entry conditions. Airline agent's product is homogeneous or undifferentiated, causing significant competition in airline domestic travel or foreign travel both markets, which are free from regulations and economic barriers. However, high capital and operating expenditure is another important characteristic of the airline industry. Aircrafts, airlines' major capital expenditure are very costly to acquire . For operating expenditures, aviation fuel and labor make up the two major costs in the industry. Another important characteristic of the airline industry is the conditions for market entry, which differs between international and domestic airline markets . In the international travel market, airline travel agency entry is very difficult as international flights and routes are the results of regotiations between governments . On the other hand, in the domestic and regional travel market, travel agency entry depends on the level of deregulation or liberalisation. More and more countries, however are opening up their domestic travel markets for more competition. In addition, government plays an important role to regulate the travel markets and existing players may significant influence over now travel agent entrants. In fact, the mjor factors influence to international or domestic travel consumption increasing numbers are the global economy and safety issues, instead of other different economic factors, such as travel destination choice, electronic air ticket or paper air ticket price, hotel price, the country's political change, e.g. war occurrence, bad weather, e.g. very cold or very hot etc. different factors infuence. Because generally, the world or any region of it is in an economic crisis or depression, the demand for airline services will fall.