Marketing In Aviation

Assignment 01

Submitted by:

Umer Bin Mansoor (F2019001173)

Hina Khalid (F2019001036)

Anas Waheen (F2019001047)

Submitted to: Mr. Muhammad Usama

Marketing In Aviation: AM-401

31st October, 2022

University of Management and Technology, Lahore.

 Topic: Effects of “Tourism Saturation” on airline industry.

1 Introduction
The two sectors of the travel industry are intrinsically linked. Aviation depends on tourism to
transport people, while tourism depends on aviation to create demand and fill seats. Particularly,
certain countries, especially those that are islands, like Indonesia, rely on air travel to draw
tourists because some of its locations are inaccessible. Many developing nations also need a
booming tourism sector to sustain an economy that is supported by easily accessible air travel
industry.

Around 7.7 million people in Africa are employed as a result of the increase in international
visitors, who largely travel by air, according to Aviation Benefits Beyond Borders, a
Switzerland-based nonprofit that supports the air travel industry. The tourist sector contributed
$44 billion to Africa's GDP in 2018 alone.

2 The factors of tourism which directly affects the airline industry are:
 Volume of tourists 
 Demand of tourist destination (Religious, cultural, historical)
 Economy of the country.
 Leisure Travelers.

3 Correlation between Aviation and Tourism

Every area that welcomes tourists has a limited capacity or Infrastructure; it can be because of
things like the restricted number of available accommodations. However, a more important
consequence of over-exploitation of tourism is that the motivations for visiting are frequently
negated.
These factors could include:
 a resort's exclusivity,
 the presence of natural resources like wildlife,
 or easy access to significant historical monuments.

The total amount of air travel made for leisure may not be affected by the so-called "Tourism
Saturation" impacts of over-exploitation. However, they will have a significant impact on its
geographic dispersion and present a problem for all resort area administrators. Overall, the
airline industry's marketing environment offers an essential backdrop against which airline
management must ponder on their marketing strategies. It is obvious that these policies cannot be
created in an isolation. Aviation and tourism are directly correlated with one another. The
aviation industry depends on demand created by tourists, which in turn depends on
transportation. Everyone wants to go a very long distance in a short amount of time, yet both
 surface transportation and rail transportation find it extremely challenging to fulfil this demand.
At that time, the aviation sector has assumed the lead due to passenger leisure needs. Both inter-
regional tourism and international tourism are greatly influenced by air travel.

4 Key Driver of Global Economic Growth: Aviation and Tourism

Urban and rural locations both have significant aviation-related infrastructure, which promotes
population connectivity by way of integrated transport networks. With well over half of the 1.5
billion visitors who visited the world before the pandemic travelling by air, aviation connectivity
across nations has created a crucial foundation for tourism marketplaces and value chains,
contributing to the 900 billion dollars in annual global GDP.

5 An Exemplary Model: Indonesia’s Tourism

Based on a trend it was observed in the pandemic, where tourists wanted to visit smaller
locations like islands rather than immense tourist destinations that are clustered in vast areas,
creative tourism model was built in Indonesia. Creating possibilities for travelers to experience
unique locations is the goal of the new form of tourism known as creative tourism. While supply
factors offer real advantages, demand factors give the visitor a sense of need. At well-known
locations, specialized tourism infrastructures with distinctive regional products, arts, and crafts
will be built.

In 2021, there will be a 30% rise in tourist arrivals as a result of the new tourism phenomenon,
which is anticipated to spur the creation of more opportunities and will help restore the aviation-
related jobs that were lost as a result of the pandemic.

5.1 Air Transport

Seaplane operations were strengthened by Indonesia, in order to enhance safety and maintain a
robust civil aviation sector that can advance and achieve economic prosperity through
sustained socially responsible tourism which is one of the key economic drivers. This was done
because of Indonesia's particular geography and accessibility challenges.

Through the connectivity it offers, aviation not only supports key economic development regions
but also presents opportunities for highly trained and frequently high-value jobs. By 2022, the
airline industry will earn $432 billion, which is 65% more than it did in 2019, according to
forecasts. As a result, by year's end, demand for international travel may reach 2019 baseline
levels at 84%.