Analyzing Air Asia: Low Cost Airlines & Australian Tourism Impact

This case study explores the impact of low-cost air carriers, specifically Air Asia, on the Australian tourism sector. The introduction of Air Asia has significantly reduced travel costs, leading to an increase in visitor numbers, longer stays, and a boost to small and medium-sized enterprises (SMEs) within the tourism industry. Data analysis reveals a rise in passenger numbers and a shift in demographics, with middle-class families now able to afford travel to Australia. The study highlights the positive economic impact, with SME businesses experiencing growth. Recommendations include enhancing the diversity of tourist attractions and improving service quality to sustain visitor satisfaction. This analysis demonstrates the transformative effect of low-cost airlines on Australia's tourism landscape.

Running Head: LOW COST AIRLINES
Low Cost Airlines
Name of the Student
Name of the University
Author Note

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Table of Contents
Country whose tourism is impacted due to the introduction of the Low Cost Air Carriers........................................................................2
Run data.......................................................................................................................................................................................................2
Impact of Low Cost Air Carriers on the location (visitor numbers, demographic, length of stay, economy, small businesses)................5
Recommendations........................................................................................................................................................................................6
References....................................................................................................................................................................................................6

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Country whose tourism is impacted due to the introduction of the Low Cost Air Carriers
Australia is one of the countries whose tourism sector is affected u to the introduction of the Low cost air carriers in the
travelling field of the tourism sector. The major source that acts as the factor to serve the processing of the Low Cost Airway Carrier
is Air Asia. This increase in the usage of the low cost airways carriers has been acting as an evolution in the terms of increasing the
facilities in the tourism aspect of Australia. Ari Asia has been leading the way for the low cist air carriers in Australia. The fare of Air
Asia for Australia to Vietnam is as cheap as RM 1,941, this aspect introduces the fact that the travelling cost of the passengers
decreases which leads to the increase in the spending s that the customers can make during the stay in Australia. The maximum usage
of the Air Asia finds its ways in the time of mid November until late February as the residents of the land who stay abroad return back
during the year ending. During the year, ending the ticket price gets higher as the demand of the ticket increases. The only way
possible is by starting the booking of the ticket before 3 months of the reserving date. This will ensure the fact that the pricing of the
ticket stays low (Williams, 2017).

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Run data
reportin
g_perio
d
M
on
th
A
ir
A
si
a
aircraft_
km_x10
00
Numbe
r
of_flig
hts
aircraft_
hours
total_pas
sengers_
uplifted
seat_km
_availabl
e_x1000
seat_km_
used_x10
00
cargo_to
nnes_upl
ifted
total_tonne_k
m_available_x
1000
total_fre
ight_ton
ne_km_
used_x1
000
Total
passengers
(in
millions)
201701 Ja
nu
ar
y
1207 1699 2532.4 98899 110512 7865 0 11055 0 1.1
201701 Fe
br
ua
ry
1300 1376 2019 98978 110512 7536 0 11055 0 1.3
201701 M
ar
ch
1256 1455 2767 98986 110512 7624 0 11055 0 0.98
201701 A
pri
l
1322 1234 2876 87986 110512 6734 0 11055 0 0.99
201701 M
ay
1344 1435 2989 89767 110512 7835 0 11055 0 0.87
201701 Ju
ne
1237 1324 2676 87654 110512 6878 0 11055 1 0.88
201701 Jul
y
1435 1432 2389 89329 110512 8787 0 11055 0 0.89
201701 A
ug
ust
1223 1243 2647.4 89329 110512 8678 0 11055 0 1.2
201701 Septe
mber
1342 1543 2879.3 89329 110512 5465 0 11055 0 1.4
201701 Oc 1675 1234 2734.8 97554 110512 8788 0 11055 0 1.2

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to
be
r
201701 Novem
ber
1200 1656 2543 98653 110512 6886 0 11055 0 1.3
201701 Decem
ber
1456 1666 2897.3 98765 110512 8777 0 11055 0 1.3
(Lawton, 2017)
Impact of Low Cost Air Carriers on the location (visitor numbers, demographic, length of stay, economy, small businesses)
Due to the fact that the Air Asia has been serving the import of global audience who enacts to be visiting Australia a easy
journey as the efficiency provided by the Airways company have been at a great rate. This ensures the fact that number of the
customers who are visiting Australia have been increasing as the travelling cost to and fro from Australia have decreased ever since
the introduction of the Low Cost Air Carriers. Since the introduction of Air Asia Australia enjoys an import of passengers of nearly 15
million a year. This ensures that the SME business increase to 39% in the field of tourism (Wensveen, 2018).
The total numbers of visitors have increased immensely due to the low cost that is inquired in the processing of the travelling
allowances as the total number of flight range from 1000 to 1300 every month (Lawton, 2017). The total numbers of visitors have
increased immensely due to the low cost that is inquired in the processing of the travelling allowances. The decrease in the rate of the
cost in the travelling methodology has been leading to the fact that the efficiency in the cost effectiveness have been increasing in
terms of service provided by the flight services and the cost incurred for accessing the services. Due to the high servicing cost of the
flight services previously the visitors could not afford the flight charges hence the number of visitors were limited to a certain extent

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and this intrusion of the Low Cost Air Carrier has made it possible for the common visitors to visit Australia. There has been a growth
in the incoming population by 33% since the introduction of the Low Cost Air carriers. The middle class families who could not
afford the processing fees are now visiting Australia. The average cost of a ticket to Australia is RM1500 (Wensveen, 2018). Air Asia
provides them the opportunity to spend the basic amount to visit Australia. This even acts to be affordable for the visitors. The days
spent in Australia has increased due to the fact that the cost incurred in the travelling has decreased which is being beneficial for the
customers to spend efficiently. The small business organizations that has been based on the tourism sector has been gaining profits as
the number of visitors has been increasing and the number of days that the customers are staying in Australia has increased. The
economy of SME business firms have increased by 6% after the introduction of the Air Asia.
Recommendations
The recommendations that will act beneficial to the company are as follows: -
 Increase the ethnicity of the location which will attract the global audience.
 The flight services of Air Asia must be categorized and have different arrangement for different sectors of passengers.
 The services provided by the flight service should stay up to the mark in order to keep the visitors happy.

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References
Burghouwt, G. (2016). Airline network development in Europe and its implications for airport planning. Routledge.
Lawton, T. C. (2017). Cleared for take-off: structure and strategy in the low fare airline business. Routledge.
Wensveen, J. (2018). Air transportation: A management perspective. Routledge.
Williams, G. (2017). The airline industry and the impact of deregulation. Routledge.

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