Macro Environment Analysis for Airlines

This assignment requires an analysis of the macro environment influencing airlines within the tourism sector. Students must apply a PESTLE framework to identify key factors such as political, economic, social, technological, legal, and environmental influences. The analysis should then explore how these factors impact airline operations and necessitate strategic adjustments for effective management within the travel and tourism (T&T) industry.

Airline, Travel agency and Your
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Factors that influence passenger decision and utilisation of these factors to attract future
passengers...................................................................................................................................1
2. PESTEL analysis of Jet2.com which influence the changing industry...................................2
3. Investigate the tour operations industry within the travel and tourism industry.....................5
4. (a) Retail travel environment and the role of a travel agent....................................................6
(b) Different types of travel agencies and the relationships that exist within retail agents.........7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Airline industry is define as one of a major sector which used to enable individual to
move from one place to another (Aguiar-Quintana , Moreno-Gil and Picazo-Peral ,2016). Travel
agencies support in providing services to target user base so that touring of vast clients become
possible. This project is based on travel agencies, airlines and tour operations by taking example
of Jet2. com whom are award winning airlines which flies to holiday destinations in
Mediterranean, the Canary Islands and European leisure cities. In this project various factors will
used to discuss that can influence a passenger decision. Although, business managers required to
understand such factors properly to attract future passenger. Along with this, it will also used to
understand the PESTEL for analysing external abilities of a company. Although. Retail travel
environment required to understand properly with the role of travel agent.
TASK
1. Factors that influence passenger decision and utilisation of these factors to attract future
passengers
Travel decisions are based on various kinds of aspects like business tourism, leisure
tourism etc. All these need to understand by travel providers properly so that they could greet
each and every individual properly. Thus, there are certain number of factors get underpin whom
need to understand by tour operators so that future related consideration could be maintain and
manage. Jet2. Com are one of a major travel service airline providers whom provide better
services to all their clients (de Carlos , Araújo and Fraiz ,2016). During the first year, 360,000
passengers travel happily and in the October 2010, the crossed the number of 20 million.
Certain factors which used to influence passenger decisions of travel of Jet2. Com define
as appeal which signify as amenities of airlines. If such are not attractive in nature then it will
used to impacted decision making process. Thus, Jet 2.Com required to understand such factors
and elements in better manner so that they could attract the future passengers of a company.
Thus, a basic determination of all those considerations are signify as follow:
 Appeal: One of a thing which used to impact the decision making of travel guest are
appeal which related with amenities. It is really important to made the environment
attractive in nature which used to satisfied each and every individual properly. Jet 2.Com
are one of a major travelling service providers whom used to provide airlines facilities
1

from Mediterranean, the Canary Islands and European leisure cities. Thus, they need to
maintain and manage their interior in such frame which used to attract future passengers.
Like they could take a step and example from some major aspects like Palace on Wheels,
Jaipur train which provide a proper royal sense to their users. Such interior design will
used to attract more passengers whose reflection could be determine in the form of
satisfaction.
 Convenience: Future passengers always used to determine their convenience first and
then used to adopt such services. Thus, if flights are not available on time then it will
going to impacted the overall satisfaction of a guest or a client. Thus, management of Jet
2. com need to understand this factor where they have to provide seats properly to each
and every client as well as provide each and every facility to all kind of guest. Such
convenience of services will attract more and more number of passengers which facilitate
them in deriving better and appropriate outcome. Thus, Jet 2.com need to made their
facilities more convenient like they could provide a bus facility from arrival place to the
flight where it used to land.
 Price: An essential aspect which used to attract more and more number of customers is
price of product and services. Although, all kind of packages price need to be appropriate
and suitable in nature so that it used to attract more and more users. Jet 2.com need to
determine each and every group of users properly in future aspect like some wants
business trip, some wants leisure trip and then used to craft prices for such packages
(Georgescu ,2016). This will enable them to attract more and more future individuals for
the packages. Henceforth, if they not going to understand such customers demands
properly then it will used to made negative influence which define lower profitability of a
firm.
All these factors need to better understand by managers of Jet 2.com in near future
course. These aspects will lead to influence the working of management badly and once they
could underpin properly then such will work as a beneficial consideration. Like, Jet 2.com have
to determine the price of their packages by targeting each group individual properly. This will
made them understand to get competitive edge and made them different from others.
2

2. PESTEL analysis of Jet2.com which influence the changing industry
Business needs to determine their strength and weakness properly as well as need to
assess the macro environment as well. Such aspects are influential in nature which need to
understand by business managers properly (Georgescu ,2016). Although, strategies will going to
crafted on the basis of macro aspects by align them with internal abilities as well. Jet 2.com have
to determine the PESTEL analysis of a company so that they could used to determine appropriate
strategic direction. Political: Business need to determine a country which is political stable in nature as well
as not used to impose heavy trade and other policies. For Jet 2.com, they have to evaluate
and determine about the political consideration like Middle east change in politics will
used to enhance the price of fuels. This made a negative influence where prices of airlines
could be extended. Along with this, business used to focus on carbon emission aspects as
well so that they could provide a healthy environment. The high prices of fuel and
uncertainty about future define threat for a company which need to understand by
management properly. Jet 2.com need to understand such aspects and influences
properly. Like they could purchase fuel from some other country where prices are low
and store them so that at the time of requirement utilise it. This strategic direction enable
and facilitate them to operate freely which further assist in deriving better working. Economical: Business operations and profitability completely depend upon economy of a
country. There is a relationship between the GDP and airline industry. A major thing
from which business could be impacted during the year 2008 a notable recession got
underpin which influence the traveller and their travelling most. This decline made vast
impact on working operations of a airline company whom aspects could be estimated in
the form of negative contribution on Jet 2.com as well. This also work as a major threat
for a company which need to understand by managers of a company in better and
associated manner. Although, such crises and changes in policies rise the prices of
packages provided by Jet2.com which used to shift such users towards other cheaper
mode of transportation. Although, to deal with such stances, management required to
expand their operations in undiversified manner so that jobs could be provided as well as
economical crises could be deal out in better and effective frame.
3

 Social: This era society is modern in nature where individuals want to travel around the
world. Almost the part of society covered by the young and youth generation whom want
to travel the world but at lower cost. Hence, with this amendment, more and more
number of airline industries could estimated which provide services at lower cost.
Jet2.com used to target the young group of society where they made interior of flights
attractive. Like they could adopt the option of using some consideration like made
interior by using theme of Avengers. This will assist management to target more group of
individuals around the world which suppose to be evaluated as major opportunity. This
will assist them in enhance profit and revenue with higher customer satisfaction. Technological: One of a major source and consideration which facilitate about
technological advancement is internet (Goburdhun Bhurtun ,2016). Passengers or an
individual become more able to book tickets online which increase efficiency in
operations as well as reduce the load of staff. It also used to made the prices of various
companies transparent which enhance the rivalry among each and every association
better. Jet2.com need to understand this section properly where they could use this option
of online booking. This will enable them to define about packages more properly where a
video could be presented on their official website. Such video also used to publish on
business social media page which used to describe not about packages but also about
flights and success. This will enable them to gain success for long term by targeting more
number of individuals. Environmental: A business need to focus on environment properly where they have to
adopt and work on such aspects and attribute which used to facilitate success and
sustainability. Association need to reflect positive image on a company and its working if
they could contribute some to environment. Airline industry is one which harm the
environment most because of emission of carbon. Thus, it is really important to secure
the environment properly through less carbon emission and scandal. Jet2.com need to
understand this fact and need to enhance the environment friendly consideration properly.
 Legislative: Laws and regulations need to followed by every company as well as
customers of a company. In America, after 9/11 attacks as well as some major hijack
problems made the legislation more strict and compulsory for each and every individual.
4

Jet 2.com need to fulfil such legislation properly and in better frame as well so that guest
could gain better services as well as such aspects could be minimise.
Strategic direction could be imposed in better and efficient manner through analysing
macro factors and relate them with opportunities and threats. Like opportunities for Jet2.com is
to utilise the internet sources properly where as threat for a company could be recession and
attacks of terrorist.
3. Investigate the tour operations industry within the travel and tourism industry
A tour operator is one where different ingredients used to combine together for creating a
holiday package. They used to advertise products and services through brochures, so that
holidays and packages could be develop (Merzlyakova ,2017). Tour operators are the one which
facilitate to provide a complete tour experience to each and every individual. The tour operations
industry comprises several aspects which associated with travel and tourism industry: Different types of tour operators: There are various kinds of tour operators are
determine which associated and provide packages for each and every customer. Such
kinds of tour operators whom used to facilitate packages to their ultimate number of
clients are define as follow:
◦ Inbound operators: These are such tour operators whom used to facilitate working
and provide facilities to provide services from within the boundary line. They do not
provide services for their clients to move from one country to another and used to
take place in similar country. Hence, these tour operators do not have much profit
chances.
◦ Outbound operators: These are such kind of operators which provide facilities to
move individuals from one country to another. Their working are a is quite big or
vast t as compared with others. These are also a part of travel industry where if a
person want to move to another country they used to signify appropriate packages.
◦ Domestic operators:These are such kind of operators which used to facilitate
services during an appropriate location. The territory need not cross to some other
extent where they provide services for a definite location and not move to other
places. Industry structure: All kind of operators not going to adopt and underpin the similar
structure. As they have to follow a definite and suitable structure so that better and
5

effective outcome could be gain. Their structure is as per the working and nature of
operations. The market share of inbound tour operators are low in nature as compared
with outbound tour operators. This will assist them in deriving better and definite
outcome. Thus, travel and tourism agencies follow a quite simple framework than any
other.
 Legislations: There are various kids of legislations are associated with travel and
tourism industry (Santibáñez ,2017). Out of such legislations some used to protect the
right of consumers where some bodies enable to operate and manage things in better and
definite manner. Many working bodies are already concern in such aspects like ABTA
etc. with clear motive to improve their practices and derive the better and definite
outcome. Hence, travel and tourism agencies require to follow the laws as well as
determine these bodies.
All these aspects need to understand by the Jet2.com so that they could facilitate better and
effective working which further assist and enable them to derive appropriate and effective
outcome. Every sector have their structure which support in reaching to the target with better and
appropriate manner. Thus, management need to maintain and facilitate their focus mainly on
these structure which define them effective outcome. The various kinds of operators whom used
to work in this section are inbound, outbound whom have their own and definite structure of
working which need to understand and follow in determined manner.
4. (a) Retail travel environment and the role of a travel agent
A retail travel environment is one where anyone could go and booked their favourite
package to spend some time. It is completely differ from cooperate travel where an individual
used to spend for a business project for attending the conference or any other section
(ONYIEGO ,2016). A retail travel environment is free for the travel agent where they could
work freely.
Travel agencies are free service providers consider as retailer one whom used to render
services on behalf of suppliers. They used to booked the aspects for an individual in advance like
a retail travel agent need to booked tickets for airlines, cruise etc. as well as hotels. Thus, for
them effective and better services are important where customer satisfaction is a major thing.
Thus, they need to perform well and better at market environment which facilitate them in
deriving better and supportive outcome.
6

Travel agents are one whom used to design the package and plan for their clients so that
they could spend their holidays in better frame. They need to make the customers understand
about each and every package properly so that defining results and outcome could be estimated.
Booking reservation is not a single aspect, but they also enable their clients to choose the best
destination as per their requirement. Although, they used to lose half burden where transportation
facilities, hospitality facilities all used to provide them in better and definite manner.
Hence, at retail travel environment, travel agent is a one whom used to facilitate their
working at dynamic area world. This will used to influence their working properly where they
could become able to maintain and manage working in better and signified manner. Moreover,
such travel agents are a part of retail travel environment which suppose to support in deriving
and providing effective facilities to deal with customers.
(b) Different types of travel agencies and the relationships that exist within retail agents
There are various kinds of travel agencies could underpin whom take a vast and
appropriate place in the retail environment (Orams and Lueck ,2016). Such travel agencies used
to please their customers with appropriate product and services. Such products and services need
to be more innovative and appropriate towards work where they need to gain response from their
customers. The various kinds of travel agencies are define as follow: Traditional travel agency: These are related and work as a retail or wholesale
consideration whee retail and whole sale environment could be evaluated. Thee travel
agencies not going to adopt the better and effective techniques to reach wider number of
customers,. They basically related with existing users and customers where they suppose
to be associated with inbound and outbound tour operators.
 Online travel agency: These are such travel agencies whom used to manage and deal
their operations through online section. Here they could provide facilities t their target
clients to book online flight tickets. This will enable them to define and determine the
better and appropriate outcome where business managers are outbound and manage
operations at globalised level. This will assist and support them to enhance profit growth
and margin in near course.
7

CONCLUSION
It get concluded from the project that airline industry needs to be fair and appropriate
price in tenure which enable customers and clients to satisfy various groups. There are various
kinds of factors get evaluated in business like amenities, price etc. which need to understand by
managers of a company properly. Although, such aspects used to understand by managers of a
company properly so that they could frame strategies to deal with such factors. Although, with
macro environment analysis, management become able to frame or craft strategies which enable
and manage their working in better and effective manner. Although, the tour operations industry
need to evaluate it in effective and efficient manner so that every firm need to follow their
structure which facilitate them to accomplish targets. Henceforth, management need to
understand about retail environment in travel agencies and their relationship with other travel
agents so that effective and better outcome could be derive. All such aspect need to understand
by managers of airlines company for managing T&T.
8

REFERENCES
Books and Journals
Aguiar-Quintana, T., Moreno-Gil, S. and Picazo-Peral, P., 2016. How could traditional travel
agencies improve their competitiveness and survive? A qualitative study in Spain.
Tourism Management Perspectives. 20. pp.98-108.
de Carlos, P., Araújo, N. and Fraiz, J. A., 2016. THE NEW INTERMEDIARIES OF TOURIST
DISTRIBUTION: ANALYSIS OF ONLINE ACCOMMODATION BOOKING SITES.
International Journal of Management Science & Technology Information. (19).
Georgescu, C., 2016. The role of air transport in international tourism. Knowledge Horizons.
Economics. 8(1). p.151.
Goburdhun Bhurtun, I., 2016. MAURITIUS: A SUNNY HOLIDAY DESTINATION FOR
FINNISH PEOPLE.
Merzlyakova, P., 2017. Multifunctionality of TripAdvisor: What makes TripAdvisor the
preferable travel web site among Russians.
ONYIEGO, C. O., 2016. E-SERVICE OPERATIONS STRATEGIES AND PERFORMANCE OF
TOURISM FIRMS IN NAIROBI, KENYA (Doctoral dissertation, UNIVERSITY OF
NAIROBI).
Orams, M. and Lueck, M., 2016. Marine tourism. Encyclopedia of Tourism, pp.585-586.
Santibáñez, B., 2017. Business Plan for a travel agency and tour operator in Latvia.
Sarilgan, A. E., 2016. Impact of Low Cost Carriers on Turkish Tourism Industry. International
Journal of Academic Research in Business and Social Sciences. 6(4). pp.176-188.
Yin, C. Y. and Poon, P., 2016. The impact of other group members on tourists’ travel
experiences: A study of domestic package tours in China. International Journal of
Contemporary Hospitality Management. 28(3). pp.640-658.
Zhang, L. M. and Chen, P. J., 2017. Co-creation a Vacation Package Tour: Here Comes the New
Chinese Travelers' Wish List!. International Journal of Business and Economics. 16(3).
pp.251-256.
9

10