Johnny Ch Lok

Explaining Why Fuel Cost Factor Influences Airline Trveller Choice Johnny Ch Lok

In economic theory, on income effects indicate negative impacts on tourism demand, the exact effects of higher oil fuel prices for specific destinations are far from clear. However, airline industry's different market segments show different sensitivities to air ticket fares changes. On the first hand, if the visitors are long destinations generally wealthier than average and therefore potentially less affected, as energy costs would be a smaller proportion of their income compared will be those from less wealthy groups. On the second hand, oil prices don't translate into higher transport costs especially not on air routes that are highly competitive and that are maintained for strategic reasons. On the third hand, many other factors shape tourists' decision making, including emotion drivers or those related to images, fashions and perceptions. Increasing environmental protection awareness of tourists could also be an important factor to influence tourism consumption, instead of oil fuel price raising causes air ticket fares raising factor to reduce traveler numbers. However, oil price raising reason causes also due to high use of cars, vans and domestic air transport in some countries, e.g. Hong Kong, China countries, there are many people like to buy cars to drive. So, the private driver numbers are increasing demand to cause these countries' oil fuel prices raise in the short time suddenly. It will influence HK and China air tickets prices need to be risen, due to there are many cars, vans and domestic air transport tools need to use oil to supply energy to cause oil import numbers will increase to HK and China and HK and China airlines need to pay higher price to buy oil to use. In the result, HK and China airlines air ticket prices will also need to rise and it will influence HK and China travel consumption desire.