Passenger Airline Industry

Passenger Airline Industry

Introduction

The airline industry has experienced several modifications in terms of marketing and strategic planning in recent years. The increasing schedules of flight and their availability have caused the competitiveness in the airline industry. The marketing strategies of the airlines have changed depending upon the requirements of the customers. The introduction of different types of airline services for the passengers has lead to the formation of differentiating classes in the airline. Airlines are moving towards the proper management of positioning strategies to comply with the growing needs of customers and maintain their position in the airline industry (Belobaba, 2009).

This paper discusses the key external factors that affect the passenger airline industry. It provides analysis of the major market segments present in the airline industry. The evaluation of target markets for business class, first class and economy class is provided in detail. In the end, the paper includes the comparison of Jet Blue and Southwest Airlines in terms of key external factors and the target markets.

Key External Factors

The passenger airline industry has seen several modifications in terms of growth and differentiation in the services of airlines. Some of the key factors that have contributed to the modifications in the passenger airline industry are the marketing factors such as segmentation, targeting and positioning.

Segmentation

The market segmentation in the airline industry occurs when the airlines priorities and trade off the requirements of the customers against the economic production of the country. The requirements of different class of groups are adhered by the airline industry to serve them in the best credible manner (Hitt et al., 2009).

Targeting

Targeting a specific group of customers in the passenger airline industry has become a challenge for most airlines. Airlines identify their target markets and provide them incentives in order to retain their customers.

Positioning

The market positioning has contributed in the differentiating strategies of the airline industries. The market positioning of airlines in the airline industry determines the perception of the airline in the mind of customers.

Impact on Political and Economical Conditions

The factors of marketing segmentation, positioning and targeting have responded to the economical and political issues of the economy and helped the airlines in dealing with the external environmental conditions of the airline industry. The targeting of customers with low fare demand is catered with the introduction of economical class in the airline which helps in improving the economical conditions of the country.

Major Airline Market Segments

The segmentation in the airline industry occurs with the differentiating pries for different market segments. Passenger airlines segment the market according to the demand off services. There are mainly two types of segment in which the passenger airline industry has divided its customers. First is the segment in which the passengers have a high willingness to pay for the better services in the airline. The cost of tickets for these passengers increases and they purchase an expensive fare ticket from the airline in order to get better services. The second type of segment is the discount consumers who want to ...