2. Airline Industry Value Chain
INBOUND
LOGISTICS
OPERATIONS OUTBOUND
LOGISTICS
MARKETING
AND SALES
SERVICE
PROCUREMENT
TECHNOLOGY
DEVELOPMENT
HUMAN
RESOURCE
MANAGEMENT
FIRM
INFRASTRUCTURE
-Financial Policy - Accounting -Regulatory Compliance - Legal - Community Affairs
Pilot Training
Safety Training
Agent
Training
In-flight
Training
Baggage Tracking
System
•Promotion
•Advertising
•Advantage
Program
•Travel Agent
Programs
•Group Sales
•Ticket Counter
Operations
•Gate Operations
•Aircraft
Operations
•On-board Service
•Baggage Handling
•Ticket Offices
•Route Selection
•Passenger Service
System
•Yield Management
System (Pricing)
•Fuel
•Flight Scheduling
•Crew Scheduling
•Facilities Planning
•Aircraft Acquisition
Information Technology
Communications
Product
Development
Market Research
•Lost Baggage Service
•Complaint Follow-up
•Baggage System
•Flight
Connections
•Rental Car and
Hotel Reservation
System
Computer Reservation System, In-flight System
Flight Scheduling System, Yield Management System
Baggage Handling
Training
Flight, route and
yield analyst
training
3. External Environment
Demographic
Age: Elders aged 50 and above nowadays tend
to travel with their retiring funds
Young generation also travels with their
friends during school vacation
Education: High-educated person has tendency
to work in multinational company
Occupation: Employee who high-positioned in
4. or businessmen are of the main customer to airline industry
Population: The larger the numbers of population, the more frequent the utilization of the
airline
Gender: Women nowadays are more influential in planning for vacation in a family
Economic
1.Bilateral trade:
Businessmen are able to travel between countries due to business matter as international
trading is encouraged by government
2.Inflation rate: High inflation rate in a country indicates low purchasing power of people and
vice versa
Thus then tendency of people travelling would be low
3.Power of currency: High currency value of a country indicates high purchasing power
of people and vice versa
High currency value increases the intention of people to travel
4.Interest rate: High interest rate in a country encourages people to save their money in bank
to earn higher interest
Thus, people will spend less of travelling
5. 5.Gross Domestic
Production (GDP): High GDP
indicates higher income of a country
People will likely to travel when their country has higher income
Sociocultural
1.Races:
People with different races would like to travel back to their home country to celebrate their
own festivals such as Deepavali, Christmas and etc.
2.Exchange of sociocultural:
People in different countries make friends with each other through networking and they might
introduce and invite their friends to visit them to their own countries
