How to Write a Summary of an Article? Alternative to GDP Topic: In fact, some experts are of the opinion that GDP growth is making the society poorer.
A case study of EasyJet and the airline industry http: Easy Jet has seen a rapid expansion, operating domestic and international service on routes between Europe, North Africa and Asia. Its successful strategies based on low-cost, no frills model which derive from the a concept that demands for short-haul air transportation is price elastic.
That means if the price of plane tickets are being reduced, more people will fly. Microeconomics Major determinants of demand The demand for a particular good or service depends on a variety of factors. Key influences include the price of substitutes especially goods that are close substitutes and the price of complements, the levels of consumer income, consumer's expectation.
The availability of alternative modes of transportation for air travel The gdp case study essay increasing ownership of automobile and the railway development.
The close substitutes might be a threat of traditional airline company, dominating short journey less than 3 hours However, the rail is hard to challenge low-cost airline company. The price elasticity of demand measures the responsiveness, or sensitivity, of the demand for a good to changes in its price when other influences on demand are held constant.
It is defined as the percentage change in quantity demanded resulting from a given percentage change in price. In this case, since the percentage fall in demand is greater than the percentage rise in price, total spending on the good will decline, and the demand for it is said to be "elastic".
Accordingly, to examine the sensitivity of the demand for air travel to its price, separate estimates of the own-price elasticity of demand are gathered for each of these distinct markets.
Since the availability of alternative modes of transportation that are reasonably close substitutes for air transport diminishes with distance travelled, it is expected that the demand for air transport will be less elastic for longer flights than for shorter flights.
Further, international travel tends to be spread over more time than domestic travel, so that the airfare is a smaller proportion of overall trip costs, which makes international travel less sensitive to changes in ticket prices.
In addition,leisure travellers are more likely to postpone trips to specific locations in response to higher fares, or to shop around for those locations offering more affordable fares. Consequently, it is expected that the demand for air transport for leisure reasons will be more elastic than business travel.
Price Elasticity of Supply and Demand The demand with price of traveling by air is both elastic and inelastic to large extent depending on various customers who it is that is traveling. Say, a family is planning a trip just to take a vacation by air traveling, if the price of an airline ticket is extremely high, they are more likely decide to delay on the trip until the prices are lower.
This shows that leisure travelling by aircraft is considered elastic. However, if a business customer needs to travel across the country by the next day, he will need a plane ticket regardless of the ticket price. For business travelling, the price of airline would be considered inelastic because it is a necessity.
The current market has a big part in the supply and demand in the airline industry. Another factor in the price of an airline ticket is the date it is purchased. If there is anemergency, customer need to booked a ticket on the day before travelling or purchases a ticket close to the departure date, even though there are unsold seats available the price will be higher.
As described below, several simultaneous factors are transforming the global airline industry. The growth of low-cost airlines: The increasing growth of the market share of low-cost, low cost fares during the last few years is one of the most significant trends in the industry, and has presented a considerable threat to the viability of network of traditional carriers.
The response of the traditional network airlines to the growing low cost airlines challenge will be critical to determining the future structure of the airline industry, both in the United States and in Europe.
Competitive analysis The most obvious competitive advantages Easy Jet possessed are delivering low-cost and maximizing margins. This is done in several major ways: Passengers receive an email containing their travel details and booking reference instead of get a paper ticket when they book online.
This helps to lower significantly the cost of issuing, distributing, processing and reconciling millions of tickets each year. Cutting off free catering on-board decrease cost and unnecessary bureaucracy and management.
It is also an important differentiator between easyJet and other airlines and a potent reflection of our low-cost approach.
Passengers can purchase food on-board if they need it and, ironically, Easy jet have won awards for our catering service. The new concept of a 'simple service model' also reflects a more general need about eliminating other unnecessary, costly services.
By reducing turnarounds time to 30 minutes and below, easyJet can achieve extra trunaround on the high-frequency routes, thereby maximizing utilisation rates of its aircraft. The management and administration progress of the company is undertaken entirely on IT systems of the company which can be accessed through secure servers from anywhere in the world enabling huge flexibility in the running of the airline.
The operation easyJet currently has operating various bases throughout the UK and mainland Europe.How to Write a Good Case Study. How to Write a Summary of an Article? ” GDP as an economic measure of the economic progress of a country Gross domestic product (GDP) is considered one of the most important factors that determine the economic activity and hence the progress of the development of a country.
We will write a custom essay. Also, developing countries’ primary sector of economic is the major contributor to the GDP of the country. Low GDP per capita is there. We will write a custom essay sample on Econ case study specifically for you. for only $ $/page.
Order now. Search. Related Essays. Effects of globalisation case study- . This China Essay covers a lot of areas relating to economic growth and development. Aimed at addressing a case study question in the HSC.
Effects of globalisation case study- China Essay.
A+. Pages:5 Words This is just a sample. To get a unique essay. non-state economies account for 40% of China’s gross domestic product (GDP). We will write a custom essay sample on Effects of globalisation case study- China specifically for you for only $ $/page.
In the National Income and Product Accounts release for the initial quarter of this year, the real gross domestic product (GDP) shrunk in this year’s first quarter by . The Case Study: The UK current account deficit and exchange rate Introduction This case study will explain the exchange rate depreciation, discuss the likely effect of it on the deficit the trade of goods and services on the current account, the three main costs to the UK economy of a sustained current account deficit; and also the explain.