Environment How Influences Service Industry Consumer Behavior

Download or read book Environment How Influences Service Industry Consumer Behavior written by Johnny Ch Lok and published by . This book was released on 2021-04-16 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: What is the relationship of oil price and terrorism to airline industry to influence ticket price increasing?Terrorism is one negative psychological factor to influence the travellers who choose to travel to the country. However the effects of oil price and terrorism on airline profitability was limited to a regional perspective, e.g. the terrorism attack of plane crash event to USA on 11 Sept. After the terrorism attack happened on USA 11 Sept. incident of terrorism attack was restricted to events of skyjacking, attacks on oil production, refinery and distribution. Other types of terrorist activities, such as attacks on financial targets or senior government officials could have an adverse effect on the petroleum and airline industry. I think the disruption of the production or distribution of petroleum because of incidents of terrorism was costly in terms of loss of business and the inflationary effect on fuel dependent products or services. In fact, some airlines have adopted more fuel saving technology, so whose fuel consumption would not use more than other non fuel saving technology airlines, these own fuel saving technology airlines which do not need to increase ticket prices to influence passenger numbers to be decreased in possible. It seems fuel price increasing will not be the only factor to influence the airline industry's traveler numbers decreasing, in addition to terrorism external incident factor influence. However, due to some airlines which have fuel saving technology, so which can avoid to use more fuel to provide planes to use and which fuel costs will be reduced, then which can provide cheaper air ticket fare prices to compare the non fuel saving technology airlines. The result will cause some airlines will lose travelling customers in this global airline travelling market, also the non fuel saving technology airlines need to renew their fuel technology if which want to keep their competitive abilities to avoid to close down their businesses.Also, I shall indicate the financial risk of airline industry evidence from Cathay Pacific airways and China airlines against key determinants of which include interest rate, exchange rate and fuel price risk for the period of January 1996 year to December 2011 year. During this period, these key external factors which were the most serious influence to cause these two airlines choose to change their strategic behaviors. Due to any these financial risks is difficult to predict and it was also changing often, these factors will also affect any airlines stock returns which arise from changing economic conditions, e.g. fuel price movements and fluctuations in exchange rates. These external unpredicted changing factors will attribute to the air tickets cyclical demand, capital investment, fixed costs of labor and landing rights to this global airline industry. However, the relationship between fuel price and stock prices varies across economies. The effects of oil price changes in sub-sector indices, such as wood, paper and printing, insurance and electricity. In the past, on global stock exchange market was positively significant in 2011 year. Otherwise, with respect to the U.S.A. aviation industry, some economists suggested that global airlines stock returns were negatively to percentage change in fuel prices related to any airline firm value, e.g. Qantas and Air New Zealand were negatively share price growth to fuel price risk in the short term in the 2011 year. Thus, airline industy needs to concern whether the effects of oil price changes in sub-sector indices, such as wood, paper and printing, insurance and electricity influences to predict when oil price will increase or decrease because it will lead to influence its passenger travelling numbers indirectly and these sub-sector industries have close relationship to bring cause and effect influence to oil price to airline industry.