--%>

Internet technology in airline transactions strategies

Speculate regarding the behavior which could result from Internet technology in airline transactions and propose 2 or more strategies to deal with them.

E

Expert

Verified

Internet technology in airline creates value creation. Value drivers like efficiency and novelty help in the technology drive. Internet enhances commerce between airline and consumers. Consumers can get information about travel and fare details. Communication between airline and consumers will become quick and fast. The instantaneous communication helps in day to day business.  Customer’s expectation gets higher in the use of internet. The airline corporate strategy is to use the internet services to the fullest extent possible. Customers get value for the price they pay to the services availed. Novelty and innovation will be possible by using internet technology. Internet is paving way for innovative exchange mechanism. This is useful for customers. The innovative transaction structure will help the customers. Exploitation of internet at customer interface will transform the airline industry.

Information communication technology will be useful for operative and strategic management. Internet will be useful for distribution strategy. This will pave way for cost reduction and cost efficiency in airline business. The use of intranets will increase tactical management. This will also improve strategic management. Extranets help in communicating with passengers and partners. This will be useful for business-to-business contact. The use of internet technology and communication technology will help the airline firm to compete with the competitors and market leaders in the industry. Cost reduction is possible in the long run by reducing the overhead costs. Cost reduction committee can probe the reasons for cost escalations.  Innovation in the service will bring down the cost in future. Novelty services will always attract existing and future customers. The consumers in domestic and international markets can have easy access with airline operators. The internet technology not only creates value creation in passenger traffic but also in cargo movement. Logistics is vital for companies.  Movement of people and goods across local areas, regions, national boundaries and international borders make business and travel more sophisticated and gentle.

   Related Questions in Macroeconomics

  • Q : Explain about the marginalism theory

    Most economists believe such that people increase an activity when they perceive the expected additional benefits as exceeding the expected extra cost, but decrease their level of an activity whenever they believe the benefits from the last few units of the activity a

  • Q : Define Break Even point Define Break

    Define Break Even point? Elucidate with the help of saving function. Answer: Breakeven point is a point where consumption equals to income and saving is equivalent t

  • Q : Example of microeconomic issue Hey

    Hey friends i need your support for justify the problem that is given below: If the United Auto Workers Union acquires benefit package and a large wage from GM, Ford, and Chrysler which increases the cost of U.S. cars, it is a

  • Q : Definition of surplus Definition of

    Definition of surplus: It is a condition in which quantity supplied is more than quantity demanded. To remove the surplus, producers will minimize the price till the market reaches to equilibrium.

  • Q : Economics Hello. I need help with my

    Hello. I need help with my assignment, I was sick and lost alot of time.My submission deadline is tomorrow i need your help i have attached the questions Thanks in advance

  • Q : What is multiplier Multiplier : The

    Multiplier: The Multiplier is the ratio of change in income by the change in investment. Multiplier (k) = ΔY/ΔI

  • Q : International trade the most frequently

    the most frequently asked question on foreign direct invetment

  • Q : Macroec Examples of command economies

    Examples of command economies are: a) the United States and Japan b) Sweden and Norway c) Mexico and Brazil d) Cuba and North Korea

  • Q : Market imperfection associated with

    Question: This assignment in Economics, deals with macro-economics. An essay on Market imperfection associated with negative externalities. According to Economics, perfect markets would require an "invisible hand" to allocate all the resources to be a

  • Q : Problem on diminishing marginal utility

    An illustration of how marginal utility diminishes takes place when: (1) Derek finds it tough to laugh politely when he hears a “new” joke for the fourth time now. (2) Amy Sue chooses she would instead have 150 hogs than 151 on her pig far