Demographic Factors Affecting Airline Industry Essay

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Register to read the introduction… This indicates changing travel preferences among the latest generation. Demographic factors play an important role in forecasting demand and future travel preferences. (Gursoy, D et al., 2005). The last external factor group are those that fall under the technological and environmental factors. Because of social media and how technology has evolved, the affordability to fly has increased.
The increasing schedules of flight and their availability have caused the competitiveness. Changes in consumer prefrences, perceptions, spending patterns, or demographic trends can greatly affect airlines. Increases in costs of safety, security, and environmental measures and differentiation in the services of airlines. Consumer behavior is an external factor that will affect the airline industry. Airline Segments
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Market segmentation in the airline industry occurs when the airlines priorities and trade off the requirements of the customers against the economic production of the country. The requirements of different class of groups are adhered by the airline industry to serve them in the best credible manner (Hitt et al., 2009). Targeting a specific group of customers in the passenger airline industry has become a challenge for most airlines. Airlines identify their target markets and provide them incentives in order to retain their customers. Market volatility such as fuel prices influence large amounts of the costs faced by airlines. There is a need for airlines to have good hedging practices. However, shocks in this area are likely to impact all players in the market equally. The Foreign exchange rates can also cause problems for Airlines if they are regionally or nationally based internationally. Segmentation is essentially the identification of subsets of buyers within a market that share similar needs and demonstrate similar buyer behavior. (Teichert, T., Shehu, E., & Wartburg, I.,2008) The world is made up of billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Particular for truly global players, they should be able to manage the international currency try examining the structure of the passenger airline

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