Author Question: Why do airlines have more flexibility in controlling seat supply than hotels have over their room ... (Read 79 times)

lak · **on:** Sep 11, 2019

Question 1

If you were to start a new travel company, what kind would you like it to be (a tour operator, cruise line, airline, Internet travel company, etc.

)? Why would you make that choice? What would be the biggest obstacles to overcome and how would you do that?

Question 2

Why do airlines have more flexibility in controlling seat supply than hotels have over their room supply?

What will be an ideal response?

efwsefaw · **Reply #1 on:** Sep 11, 2019

Answer 1

The specific choice of a new travel company is obviously up to each student but all must consider key elements. Essential questions include what is the product, why would the target market be interested in it, and how does the product differ from what is currently available in the marketplace? Some of the obstacles include recruiting a good staff who possess needed skills, setting up relationships with other travel suppliers that will be part of the chain (food suppliers, ground operators, customer contact people in remote locations), designing an effective marketing campaign, deciding which media or communication channels to use in order to spend marketing dollars wisely, etc. The challenges are great, but addressing the topic will help students understand that real-life choices can make an important difference.

Answer 2

Airlines can move aircraft in and out of markets with relative ease while moving a hotel would be impossible. Consequently, the latter may be more apt to suffer from seasonality and changing tastes regarding destinations.