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British Airways | Case Study

   

Added on  2021-04-21

21 Pages6061 Words33 Views
Running Head: British AirwaysBritish Airways

British Airways1Contents2. Fact and Figures:....................................................................................................................22.1 The Passenger Number by Years:....................................................................................22.2 International Travel Movement:.......................................................................................23. Facilities and Attractions:......................................................................................................33.1 Facilities:..........................................................................................................................3I.British Airways:...........................................................................................................3II.Main Airport:...............................................................................................................33.2 Attractions:.......................................................................................................................34. Current Trends & Influences affecting Airline Industry........................................................44.1 Rising Cost of the Fuel.....................................................................................................44.2 New Business Entrants.....................................................................................................44.3 Porter's Five Forces Analysis...........................................................................................44.4 Use of Information Communication Technologies (ICT)................................................55. Characteristic of Consumers and the Tourist.........................................................................55.1 Demographics concerning the Gender, Level of Education, Level of Income and Status................................................................................................................................................55.2 Lifestyle............................................................................................................................55.3 Purpose of the Visit..........................................................................................................65.4 Seasonality........................................................................................................................65.5 Type of Travellers............................................................................................................66. Sustainable Development Approaches...................................................................................76.1 Business Stability Approach.............................................................................................76.2Other Approaches by British Airways........................................................................7I.Flying Start..................................................................................................................7II.Approach for Changes in the Climate.........................................................................8

British Airways2III.Environmental Management....................................................................................8Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).............97. Marketing and Promotional Strategies...................................................................................9Product strategy......................................................................................................................9Pricing strategy.......................................................................................................................9Promotion strategy..................................................................................................................9Promotion, Positioning and Branding of the Destination.....................................................108. Impact towards the Tourism Industry:.................................................................................108.1Environmental impact.....................................................................................................108.2 Economic crisis..............................................................................................................118.3 Political...........................................................................................................................118.4 Technological.................................................................................................................118.5 Safety and security.........................................................................................................129. Strategies..............................................................................................................................129.1 Government....................................................................................................................129.2 Experts from the Hospitality Industry............................................................................139.3 Personal Opinion............................................................................................................1310. Recommendations for Research Issues..............................................................................1411. Conclusion..........................................................................................................................14References................................................................................................................................14

British Airways32. Fact and Figures:2.1 The Passenger Number by Years:The British Airways (BA) transports greater than 145,000 customers daily and 40 milliontravellers each year [ CITATION Bri18 \l 16393 ]. Numbers of passengers from the year 2013 to2017 were[ CITATION Sta15 \l 16393 ]:YearNumber of Passengers201338,412,127201439,643,245201541,255,582201642,141,258201745,200,000 (approx.)[ CITATION Sta18 \l 16393 ]2.2 International Travel Movement:BA’s primary hub is Heathrow Airport in London. 80% of BA flight are either initiated ordestined here[ CITATION Mar16 \l 16393 ]. It flies to destinations over 200 in 75 countriesaround the world. BA covers the following destinations across the world fromLondon[ CITATION Bri181 \l 16393 ]:PlacesNumber of DestinationsEurope, UK and Ireland121North America29Latin America and Caribbean19Middle East and Africa21Central and South Asia6Far East and Australia9In every 90 seconds, there is one British Airline taking off somewhere around the globe. Ithas a fleet of over 280 aircrafts [ CITATION Bri18 \l 16393 ].

British Airways43. Facilities and Attractions:3.1 Facilities:I.British Airways:BA provides food and beverages facilities on-board[ CITATION Bri182 \l 16393 ]. BA providesthe facilities of on-board Wi-Fi, duty free on-board High Life Shop, High Life Entertainmentplans and High Life magazines for adults. Also, there are various Skyflyers Kid’s Zonesavailable for kids[ CITATION Bri183 \l 16393 ]. There is BA app available which makes thehandling easy including the bookings, boarding, seating plans, on-board facilities and others.There is disability assistance available for mobility as well as for assistance dogs. Travelassistance includes assistance for children travelling alone, pets, medical conditions andothers[ CITATION Bri184 \l 16393 ].II.Main Airport:BA has its primary base in London Heathrow airport. It also operates from the GatwickAirport in London. It provides facilities of ATMs, baby care, bag wrapping, baggage storage,bars, cafes, restaurants, cell phone rentals, Chapel, currency exchange counters, duty freeshopping, fast track services, gifts and souvenirs. It also provides hotel reservations andtransportation, internet and Wi-Fi, lost property services, charging points, medical care andemergency rooms, lounges, porter services, play area for kids, baby facilities, postal andpremium services, showers, smoking areas, VIP services, fitness and wealth.3.2 Attractions:BA provides high-end facilities and all its customers. There is a wide range of aircrafts andairbuses along with multiple travel classes to attract the different segments of customers. Itprovides free food in all long distance travels. The flight information, seating and baggagedetails are easy to access through the BA app. British Airways provides the facility to bookhotels and rent cars along with the tickets for all its destinations. It provides the facility tobook multi-centre holidays (with provides extensive information about the destinations) andprovides various options for the same[ CITATION Bri185 \l 16393 ]. Options include CityBreaks, Winter Sun, Beach holidays, Luxury holidays, Villa holidays, Fly-drive holidays, SpaBreaks, Romantic getaways, Sea holidays, Golf holidays, Theme Park holidays and manyothers[ CITATION Bri186 \l 16393 ].

British Airways54. Current Trends & Influences affecting Airline Industry 4.1 Rising Cost of the FuelIncrease in the prices of fuel increases the cost of airline industry. It amounts to 35% of thetotal cost of the airlines company. It thereafter increases the costs for the travellers as fuelsurcharges. Given the level of competition, BA cannot increase the prices much else themarket share will fall[ CITATION Fed13 \l 16393 ]. In 2015, the price of airlines fell due to thelow costs of fuel and it therefore increased the demand by passengers[ CITATION Mac17 \l16393 ].Current fuel prices have been declining recently. Consumers protested for reduction in theprices of the airline tickets. This has persuaded the airline industry to cut down its fuelsurcharges and ticket prices[ CITATION Pat17 \l 16393 ].4.2 New Business Entrants A new airline called Level has been introduced by International Airlines Group (IAG). It isbased out of Barcelona, Spain and was launched in March 2017. It is expected to be a stylishand modern, long haul and low-cost carrier. It will operate between and Europe and placesacross Atlantic, with new Airbus A330 jets.4.3 Porter's Five Forces Analysis The market of airlines is not perfect. The capital requirement inn airlines industry ishigh. Lack of distribution channels and many legal barriers restrict the entry of newfirms.There is no threat from substitutes since the alternatives like railways and waterwaysare neither effective nor efficient means of transport for long distances travelling inshort time.Bargaining power of the consumers is moderate because of no close substitutes andhigh level of competition from other airlines.Bargaining power of suppliers is high because there are no alternatives available forfuel used. Also, the suppliers of aircraft are few and hence, pose a threat to BritishAirways.There is high level of competition from the rivalries both at local and internationallevels. There is competition in terms of prices, services, convenience and quality. Itscompetitors include Virgin Atlantic and American Carriers.

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