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Report on TM 5009 - Managing International Tourism, based on an organisation from a tourism sub-sector of your choice

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TM 5009 - Managing International Tourism

Airline Industry

Abstract 

This summer, many European resorts made headlines as they encountered difficulties in increasing the number of visitors. As popular cities and resorts around the world become sufferers of their own victory, a worldwide, cross-industry tactic is required to handle sustainable tourism. The phenomenal growth of the aviation industry and international tourism has made the world a pleasant little place with great mobility and accessibility. There are more than 1 billion tourists visiting the world, and many countries have an unprecedented number of arrivals. It is expected to increase further in the next few years. 

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As the government recognizes the importance of a thriving tourism industry for the country's economic development, it is vital to develop international airports to facilitate the entry of more and more airlines into the country. The economic influence of global tourism is enormous: it accounts for 10 percent of the world GDP as well as one of 11 jobs. Tourism is mainly significant for developing countries and rural communities that dearth a diverse economy. There are also individual aspects: the capability to travel easily and cheaply offers cultural as well as relaxation opportunities that have been closed for preceding generations. There is no doubt that the tourism industry has a positive impact, but coins have another side. As more and more people seek to travel to remote areas around the world that offer novel and exciting experiences, it becomes increasingly difficult to find unaffected destinations that are far from the traveller path. Natural surroundings are influenced by the construction of restaurants, hotels, roads, shops and bars and must provide energy, water and sewage treatment services. Leisure activities, for example, hiking, climbing and scuba diving can also have adverse effects such as spoiling, channel erosion and coral reefs, harm to trees and plants.

 

Introduction

Caribbean Airlines, operating in the Caribbean, is considered the flagship airline and national air company of the Trinidad and Tobago. It functions in both the Jamaican and Caribbean airline brands. The airline is even Jamaica's flagship airline with 16% of airline ownership. Although the aviation industry operates only in small island economies, it is said to provide a key contribution to economic and social relations in the country, people and culture. The company associated with the Caribbean Star is considered to be the largest airline in the region. For a long time, the two have been competing with each other. There is a proposal to merge with LIAT, which will increase the company's market share and its competitive advantage.

Challenges

The aviation industry is nowadays facing few problems that were earlier considered impossible - into full privatization. In order to achieve this goal, Antigua Airlines only privatizes part of its ownership, but its business is not uniform. Jamaica Airlines’ operations have been severely hit by increased airline competition and rising fuel prices. The airline's general manager, Clive Forbes, has approved that entity is trying to maintain a feasible state of mind. The firm has been tackling difficult environmental and competitive pressures (Abdelghany, Abdelghany&Azadian, 2017). It is constantly striving for market share, under the conditions of rising fuel prices, the competitiveness of routes outside Jamaica, etc. The only long-haul destination for Caribbean Airlines from the Port of Spain to the United Kingdom is on uneven ground, as described in a publication by the Government of Trinidad and Tobago, which points to the route to London. profit. Jamaica Airlines, which was purchased in the Caribbean in 2012, has lost millions of services and gradually abandoned the route.

Since JetBlue launched its flight from Spain to Fort Lauderdale, Caribbean Airlines has faced fierce competition from North American routes. Prior to the launch of JetBlue, the Caribbean aviation industry enjoyed a monopoly on this route. Ticket prices have fallen sharply. JetBlue's launch on similar routes has led to fierce competition, and the Caribbean's monopoly route has been captured by a market that sells and provides services at low prices. The main owner of the Caribbean is the Government of Trinidad and Tobago, and the Government of Jamaica has a small stake in the aviation industry. The acquisition of Jamaica Airlines in the Caribbean has no success factors. The most recent failure case was the airline pilot's protest because they did not receive a reward for owing them. There are also reports that the government of Trinidad and Tobago will merge with the Bahamian government (Pels, 2013). Due to the history of merging trace records, it is not a good idea to accompany another such merger. There may be situations where political and business complexity may lead to new problems. Other challenges include economic sustainability and efficiency. The increase in economic integration requires air transport, capacity issues, and a positive impact on trade and tourism in CARICOM countries. Some regional governments have been criticizing the Trinidad and Tobago government for implementing unfair subsidies for Caribbean airlines that violate trade rules.

The company faces a huge problem with many strikes that caused the flight to be cancelled. There may be no conclusions between the company and the crew unit. Poor economic threats lead to high levels of competition and can easily affect a changing economy. Restructuring and cost-cutting have been major challenges for Asian and European airlines. Rethinking this will help airlines protect them for a long time (Maksimov&Raskin, 2013). 

Managerial Issues

• On-board entertainment: Airline staff are always trying to provide passengers with a fun-filled journey. It might include onboard entertainment choices (such as fashion shows) and a variety of free gifts. Although this can be done on shorter trips and fewer passengers, it might not be viable for longer transports and more travelers as customers might be seeking a quiet sleep instead of just entertainment.

• Business travellers: The Virgin Blue has continually dreamed of being young. The optimistic energy shown in this way may be different from the relationship of business travelers, their preferences and attitudes are different from those of tourists.

Opportunities

Many customers travel by bus, train and other modes of transportation. It depends on the distance the customer intends to travel. British Airways has been changing the mindset and perspective of travellers and trying to motivate them to travel through flight mode. This can increase the company's business, and management is also concerned with providing high quality and better service at a reasonable price. It also includes the customer's requirements and is willing to pay the price of the service to the existing and potential customers for management. Expectations from customers around the world have increased significantly. The increase in income of most people has a positive impact on companies (Agiacai, 2017).

The aviation industry continues to enlarge. It has withstood the crisis and showed long-term suppleness and has become a vital means of transportation. Historically, air transport has expanded every fifteen years and is growing faster than most other businesses. In the year 2016, global airlines transported approximately 3.8 billion travellers per year and passenger revenues reached 7.1 trillion kilometres (RPK). Five million tons of cargo were carried by air, reaching 205 billion tons of freight kilometres (FTK). About 100,000 flights a day carry more than 10 million passengers, worth about $18 billion worth of goods (Pourkarjou&Yousefi, 2013). The economic health of the Caribbean is heavily dependent on tourism (Lin, 2012). In Saint Lucia, Martinique, Guyana, Cuba, Trinidad and Tobago and the Dominican Republic, over 90% of the tourists reach by air. In the year 2014, the aviation industry supported $27 billion in tourism consumption in the region, with leisure tourism at $24.3 billion and commercial tourism at $2.7 billion. In Africa, a projected 4.9 million persons are hired in areas where overseas tourists are constantly invading, most of which arrive in the region by air and contribute $36 billion to the gross domestic product of African economies in 2016. In a few Caribbean nations, tourism makes available one of few resources of an economic growth. The competitiveness of tourism is increasing, especially in emerging countries, especially in the Asia-Pacific region. Trends indicate that the tourism between and among emerging economies is rising steadily; though, as revenues in developing economies increase and ticket prices decline, one of the barriers to worldwide travel remains the limiting visa system, even if it for tourism aims. The good news is that trends indicate that countries are realizing that these immigration procedures create unnecessary obstacles to their own tourism sector, limiting economic opportunities, creating jobs and tolerance (Boshota, 2018).

Recommendations

Caribbean Airlines acknowledges the lack of effective communication and has been seeking to mend relationships and win back Jamaica Airlines travelers. Service quality and lack of effectual management have led to the collapse of the aviation industry. Travelers have been complaining regarding the counter staff at the airport. However, customers prefer Caribbean Airlines to travel because one of the constant factors they have is free two-piece baggage rule. It is likewise the only air company that offers premium and child discounts (Dwyer, Deery, Jago, Spurr&Fredline, 2013). Now, in the current situation, Caribbean Airlines owners need to emphasize that they are concerned about the market reality that airlines face losses caused by long-haul flights and increased pressure on North American core routes. The government performs an important role here. The initiation of modern air traffic systems has effectively maintained a higher level of operation. Improvements in infrastructure have led to the accelerated implementation of the strategic plan. The development of technology will help to promote joint efforts. Strengthening cooperation and transparency among all stakeholders is an effective measure (Pierson &Sterman, 2013).

• Reduce transaction costs and save time: As airlines will enter lengthier routes with the higher frequencies, this will mean shorter turnaround times, reducing transaction costs and time savings for each customer.

• Enhanced productivity: Functioning on a longer route and offering discretionary pay-per-use services will mean improved use of equipment because companies can guess the number of customers ready to pay for these services as well as can plan to capitalize accordingly. This will increase the company’s overall revenue on assets.

• Enhance decision making: By providing timely, comprehensive, comprehensive and accurate information to improve access, the company's overall decision-making will be improved.

Few recommendations are available to Caribbean Airlines to compete in the global marketplace and face a variety of crisis and competitive business environments. Caribbean Airlines must continue its international strategy so that it can develop a variety of regional business units. A transition approach can also be used when expanding its operations in overseas countries. Caribbean Airlines have the opportunity to occupy the Chinese and Indian markets through regionalization strategies because of the need for local and regional responses. There is a great tendency for individuals to travel abroad. If it can successfully meet the needs and needs of local and regional individuals, this can ultimately bring business and growth to the aviation industry (Thakur, 2012). Caribbean Airlines is also required to focus on developing energy-efficient aircraft to reduce operating costs. Fuel costs are a major part of the airline's overall cost and need to be managed through a variety of strategies so that airlines can gain competitive advantage from competitors. Transportation is the reason and influence of tourism growth. First, improved services have enthused tourism, in addition, the development of tourism has stirred traffic. Accessibility is a key function of the tourism transportation. The growth rate of international air transport is linked to the growth rate of international tourism. Striking travel groups, competitive tickets fascinate more and more tourists every day, so the industry is expanding rapidly (Trypsteen, 2017).

Conclusion

As can be seen from the report, the company has been suffering from various problems related to traffic within the area. It is said that the loss was caused by the ownership of the government. Most passengers and global customers complain that the quality of services provided by the aviation industry is poor. In addition, other issues include lost luggage and poor customer service. Companies should also form alliances with other international airlines. As one of the largest travel operators, Caribbean Airlines offers a range of extraordinary experiences. Through Caribbean Airlines' Future Planet program, Caribbean Airlines can become a strong supporter of economic, social and environmentally sustainable tourism organizations.

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