Challenges of Hong Kong Essay

result contends of Hong Kongs effective serving airmanshiplines lining today This essay examines the challenges faced by Hong Kongs full characterfulness skyways nowadays. production line transportation serves not only to kick upstairs trade and ontogeny in the touristry pains in Hong Kong, nevertheless as well as to improve peoples mobility and to nervous strain a modern society. In this essay, full divine dish out airline is defined as traditional airline that provides work such(prenominal) as allocated screwing, transfer of baggage surrounded by flights, blankets and meals. Full service airlines suffer some(prenominal) challenges in the aspect of production woo for developing advanced system and contender with low-priced airlines nowadays. For this reason, I would like to look into the challenges in depth according to the to a eminenter place aspects and figure out possible solutions. contend 1 Low- salute airline violationIn recent years, the airlin e industry has underg one and only(a) a revolution ca practised by the growth in population of low-cost carriers, which ar airlines that provide discounted suffices and essential service to passengers, and the subjoin in the number of low-cost carriers ca utilize a huge growth in freeing and arrival of regional airports and established a brand new food market in short-break tourism. While low-cost airlines argon improvering an increase market sh atomic number 18 within the industry, the full-service airlines are struggling. Numbers of full-service airlines are on the coast of bankruptcy, and some even had to sign agreements or mergers to ensure their long-run existence.To manage with the no-frills airlines, some full service airlines had set up up their own low-cost subsidiary, but a few of them ended up in operational losses, forced to manage their subsidiary. Pels (2008) describes full service airlines as aiming to stretch out quality, whereas no-frills carriers aim to come on costs low. He states that although it may be difficult for low-cost airlines to earn currency on ticket sales, they may gain profit on board by selling snacks and beverages, and from the airports depart from or get to on. Moreover, most low-cost airlines promote themselves for their transparence in the pricing system, and so keeping air travel remarkably afford commensurate, patronage the high cost of jet fuel.As low-fare airlines invades the airline industry, full service airlines volition not only encounter fare pressure, but go out also fall in to progressivelyfight with the upstarts for takeoff, landing slots and introduction space in Hong Kong or different crowded airports in Asia. In localize to encounter this challenge, the airline should emphasize on the services it provides, and focus on improving their flights operations both in the air and on the ground, utilizing optimum flight counsel procedures and providing customers with sustainable products and services, in coordinate to compete with the go up trend of low-cost airlines.Challenge 2 Managing destinationsFull service airlines use the Hub and Spoke System, which enables passengers to travel from one small city to another smaller city via a hub or even ii hubs. This system not only service more cities at a get cost, but also maximizes passenger charge ups, thus saving fuels. Low-cost airlines use dim-witted point-to-point communicates, as they operate streets which originate or end at a major airport, which allows them to enter any market they pick up fit. Thus, if the route turns out to be unprofitable, the low-cost carrier will close it down. gibe to Pels (2008), full service airlines cannot easily retrograde from a market, even if it is hardly profitable, because a full-service carriers get together amongst a hub airport and spoke airport serves many different indirect markets. If this route is closed because of the decrease in load factor due to compet ition on the market between the hub airports and spoke airports, passengers and profits, in all other markets victimisation this link are lost.According to a good deal by the Company Barclaycard, a relatively large number of the business travellers (71%) used low-cost airlines for business trips. This indicates that passenger preferences may be shifting to low-cost, less service airlines. The low-cost carrier suck ups passengers from the full-service airlines, thus causes competition and reduces load factors and profits for the full-service airlines. In order to solve this problem, full-service airlines can offer more low-fare tickets on short-haul routes, and use short-haul routes as feeders for the globose markets where they make most profits. Even though the competition for indirect travellers is very intense, they will allow conventional airlines to maintain a large network with relatively high frequencies.Challenge 3 Investment on the advanced technologyWith the rapid deve lopment in advanced technologies and popular use in mobile gadgets, reserving a seat on the plane is just one click ahead. Simply by browse the website of their desired airline, customers will be able to get all the relevant training they will need to plan their trip, including the come of fares in specific dates and allocation of the sit down on the aircraft. In addition, systems like self-acting airport check-ins and ticketless air travel are getting more popular, and will be the future trends in the airline industry. Therefore, in order to provide the passengers accessibility in online reservations and to build up the image of a green airline, investments are needed to be made on improving the systems.Acknowledging the legion(predicate) benefits provided by the internet, airlines have been investing resources in their websites. Standing (2000) claimed that the Web has changed from pushing firms and services to pulling clients into value-added opportunities that a company pro vides. Airlines do not only compete among distributively other, they also compete with online travel agents such as Expedia. Thus, to solve this challenge, the airlines should entice travellers to platter their trips via the airlines website, by providing extra benefits to customers when they barter for online.ConclusionTo summarize, the challenges that full service airlines in Hong Kong faced are the rising of low-cost airlines, the managing of destinations and huge investments made on developing and improving the systems for reservation and check-ins. It is significant for airlines to understand that when passengers purchase an airline seat, they are not just paying for a seat in the aircraft they also purchase the service behind. In order to attract a consumers attention, benefits or attributes of using full service airlines and low cost carriers such as price, safety, network connections, and service will be important.REFERENCESCooper C. and et al. (1999) touristry Princip les and perpetrate, 2nd ed., Longman Publishing Harlow. Driver, J. (1999). Developments in airline marketing practice. Journal of Marketing Practice Applied Marketing Science, 5 (5), 134150. Law, R. & Leung, R. (2000). A Study of AirlinesOnline Reservation Services on the Internet. Journal of Travel Research, 39 (2), 202-211. Moiseiwitsch, J. (2012). compute airlines find Hong Kong a tough market to crack. In South China break of the day Post. Retrieved November 6, 2014 from http//www.scmp.com/business/companies/article/1404255/budget-airlines-find-hong-kong-tough-market-crack Pels, E. (2008). Airline network competition Full-service airlines, low-cost airlines and long-haul markets. Research in Transportation Economics, 24 (1), 68-74. Sigala M. (2003) The Information and conference Technologies Productivity Impact on the UK Hotel Sector, worldwide Journal of Operations & Production Management, 23(10), 1224-45. Wang, J. & Lee, S. (2014). Asias Budget Airline Invasion. In Bloomb erg Businessweek. Retrieved November 6, 2014 from http//www.businessweek.com/articles/2014-02-13/asias-budget-airline-invasion-cathay-pacific-defends-hong-kong