Impacts of low cost airlines in Singapore

Impacts of moo damage airlines in capital of SingaporeWhat impacts deal the first bell airlines had on the tourism product in Singapore? Consider this from a consumer perspective and a supplier perspective i.e. hoteliers.IntroductionTourism related activities have change and crowing in different ways of classifying the industry have emerged. It has to a fault evolved as attempts have been made to plate a title on a difficult to define group of naturally related portion activities and participants. The activities chthonian scoren during their stay in those destinations, and the facilities created to cater to their needs is temporary movement of people to destinations outside their normal purport of work and residences.History of Low cost carrierThe first airline that created the concept of a low cost airline is Southwest Airline, an Ameri freighter domestic carrier which launched its flight on 18 June 1971. The airline was created to provide consumers with cheap airf atomic number 18s. The creation of low cost carriers proved to be attractive to consumers, and besides a threat to agio airlines as they were able to offer cheaper airf atomic number 18s as compared to the full cost airlines.With its unique branding of air stewardesses in hot pants and white boots, Southwests concept was copied around the world. much(prenominal) than people began to see the success in the concept of low cost carriers, and the market for low cost carriers began to expend.The industry for low cost carriers has grown significantly over the past decade. According to an Airline business line low-cost airline survey done in 2011, low cost carriers carried nearly 640 million passengers in 2010.Low cost carrier in SingaporeIn Singapore, at that place are three low cost carriers based here, and a total of 6 low cost carriers that have operations in the state of matter. The pioneer low cost airline in Singapore is tigerair, previously known as Tiger Airways. The cipher car rier was established in 2004, and has since then grown to be the biggest low cost carrier, and split second biggest airline in Singapore as of 29 April 2010. Jetstar Asia, which was established soon after Tigerair in 2004, is also one of the airlines based in Singapore.As these low cost carriers have managed to create a raw(a) market, traditional airlines are more inclined to create a low cost carrier as subsidiary so as to maintain or dismantle increase its market share. As a result, airlines such as Scoot were created. Scoot is a low cost carrier established by Singapore Airlines, to offer no-frills, low-fare flights for medium and long-haul routes.In general, low cost carriers have a positive government activity issue on the travel industry. While it may have a negative impact on premium airlines, low cost carriers have managed to increase the profit of the tourism industry. This is because passengers who have been unwilling or uneffective to afford the traditional full-fri ll airfares now have the option to fly at a lower airfare.In Singapore, the growth of the low cost airline industry has increased so much over the years, there was a figure terminal built specially for low cost carriers. However, as there is so far much potential for low cost carriers to expand, the Singapore government has decided to tear down the figure terminal and build a new Terminal 4, in order to provide passengers with the best experience. This is a prominent evidence that proves that low cost carriers have become an influential segment here in Singapore.Jetstar Asia had scheduled 37 flights to Singapore on February 12, 2014, on an average 1.5 hours a flight landing in Singapore which is very frequent. This is one of the reason why Singapore Changi International Airport ranked fifteenth in the world busiest airport 2013 with the passengers of 51,181,804 in 2012.Consumer perspectiveWhen the bud raise up airline concept first launched, umteen consumers deem its unsafe, and withal immobile without maintenances. A few years down the road, more and more consumers are choosing low cost carrier as their first choice when flying overseas. The word budget implies something made cheaply, without much concern for quality, but the answer to this is no. Budget airlines are no less(prenominal) safe than any other airline, cutting corners on safety could completely ruin their business. Some of their cost-cutting measures even increase safety.The biggest differences between low cost carrier and full-fledged carrier are that low cost carrier plane is smaller than full-fledged carrier plane, and on-board catering has to be paid extra when flying with budget airlines, extra costs mean the quality of the food is often good or even better than the regular airlines. Consumers are recommended to look at hidden extra charges and what is the special offers which regular airlines have before they book the flights. Consumers who are flying short distance may prefer to fly with budget airline as they may find that the additional services of a traditional airline are redundant.Not all passengers taking low cost carriers are budget traveler, because some are taking short route flight, and they just need a seat to fly to certain country. 40% of the travelers are visiting friends or relatives, 37% for vacation or leisure, 20% for business and 3% of other purpose. commentary of tourism productIt is the inclusion of a whole tourism package to meet the clients expectations. These would include accommodation, tourism, meals, entertainment, and witch among others. It can be divided into a local product to encourage the citizens to participate or global products for revenue collection.5 Advantages of tour packageConvenience Traveler does not need to spend a lot of time deciding what to do and which supplier to use. The decision-making process will be shortened. single-stop shopping One payment covers the cost and paperwork of two or more services which mad e buying process easier. The traveler is allowed to know how much the trip will cost because all inclusive tour can be seen as virtually cash freeCost savings Tour packages will be more expensive if the tourist were to buy all the elements separately, tour group are able to able to get special discount and this cost saving will be passed on the tourists because they are able to take advantage of volume discount straight from the suppliers. Special treatment Tour member will get together privileged treatment as the volume of business tour operator represent to service supplier. pursue for example that tour group members seldom stand in the long queue or under the hot sun, transport are park near from the entrances to attractions and when they arrived, the hotelier will pre-check-in the tour groups, and they just obviously pass them the hotel key.Worry free The tour personnel will handle problems and details allowing the tourists to concentrate on the experiences and the new wor ld around them when traveling on a hosted or escorted tour.Economic impactsWhen travelers from another country purchase goods and services within Singapore, tourism acts as an export industry by earning revenues from external sources. Travelers expenditures also increase the general level of economic activity in the host community in many ways, direct and indirectly, the two most visible being creating new job opportunities and income. Taxes collected by government will also increase with the higher level of economic activity.There are several factors that can influence the level of tourism activities