INTRODUCTION
The purpose of this report is to inform airline executives about the external forces affecting
their industry and what they can do to keep up with the changing business atmosphere. The
terrorist attacks of 9/11 had a grueling effect on the economy, and while most industries
are almost back to their pre-9/11 financial status, the airline industry is lucky to
break-even. This report will explain three leading trends that are forcing the airline
industry to re-think their stance on strategic planning.
The first trend discussed will illustrate the effect that online booking has had on the way
airlines do business. The second trend will describe how obesity has caused new standards
to be set within the industry. The final trend will explain how the demand for
business-related travel has been decreased from the use of new technologies. This paper
will close with a brief synopsis of the most relevant trend to the industrythe decrease in
business travel due to new technologies.
DESCRIPTION
The following portion of this report will describe each of the three trends and contain
information to support the claim. Continue reading for further explanation of the trends.
Online Booking
Online booking is becoming more popular, especially in a country where over 50% of its
households are connected to the internet (U.S. Department of Commerce 2001). (See
Appendix; Graph 1) Americans want things “NOW!” not ten minutes from now. The
quicker the service, the more satisfied the customer will become. Various online travel
agencies, such as Orbit and Travelocity, give consumers the ability to compare different
travel options, all without leaving the comfort of their home. In 2003, 35 million
Americans went online to book travel reservations, a 17% increase since 2002 (U.S. News
2004). Currently one-third of all internet-related transactions involve making travel
arrangements (The Times 2004).
Obesity
Americans today are heavier than ever, and despite increased health awareness, the obesity
epidemic is not slowing down. (See Appendix; Graph 2) Currently two-thirds of
Americans are considered to be overweight (New Zealand Management 2004). According
to the last U.S. Census, the current population of the U.S. is 281 million. When mixing
those details together you can acquire an interesting fact; approximately 185,460,000
Americans are overweight (McKee 2003). In 1991, only 12% of Americans were
considered to be obese; since then that percentage has risen to 26% (Lollis 2002). For
someone to classify as overweight, the person has to have a Body Mass Index over 25; to
be obese a person has to have a Body Mass Index over 30 (American Obesity Association
