Johnny Ch Lok

Airline industry service performance management strategy Johnny Ch Lok

Fuel raising price solve methods?Why oil fuel raising price factor can cause risk to airline. In long run, implications of changes to supply and demand side conditions of oil fuel energy may differ qualitatively. For example, due to investment responses of producers, consumers and governments in alternative energy sources and more energy efficient plants, vehicles are supplied in order to achieve oil fuel price can't be risen seriously. However, I believe oil fuel rising charge will be an important factor to influence global airline ticket fares to be also increased. Firstly, on the bank interest changing factor, e.g. bank interest rate rising which only attract more bank saving. But it can not influence the bank savers who choose to reduce relax time to go to other countries travelling. Otherwise, when the bank savers can save more money to earn higher interest in banks, who will prefer to choose to use their saving to consume travelling. Due to who can earn higher interest rate after a period of saving time. So, I believe whose behavioral travelling consumption will be raised when the banks will raise interest rate, then the bank savers won't choose to save more money in banks. So it is possible that who will withdraw more money to consume to go to travelling from their bank saving. It seems bank interest rate changing won't influence bank savers' behavioral travelling consumption to be reduced. Secondly, on the exchange rate changing factor, although any country's exchange changing will cause other countries' money value to be fallen down or risen up. However, it won't influence any travelers' behavioral consumption to be reduced seriously. Although, it is possible that the traveler won't spend too much to go to shopping when who travel to the another country and arrive the country. But, it is not possible to influence the traveler decides to reduce consumption to buy any air ticket to go to travelling. Thirdly, any country inflation also can not reduce travelers' travelling consumption easily because inflation can influence consumers who choose to buy cheaper foods and clothing and reduce entertainments in their every day life. But, one country's inflation can not influence it's citizen do not spend much travelling expenditure because travelers only spend one time or two times of travelling every year usually. So, the travelling expenditure rate of any households is not too much to compare daily essential expenditure. So, it seems that bank interest rate and exchange rate changing and inflation factors won't influence any travelers' travelling consumption of decisions to be reduced easily. Otherwise, if the oil fuel price raises too much, then global airlines' cost will be raised. So, the airlines only choose to increase their air fare prices to aim to avoid loss possibly. It seems that oil fuel price has direct influence airline income.?Methods to solve rising air fare prices demand.