Should The United Airlines Survive In The Tourism Industry?

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Recommended: Conclude impact of tourism

In these days, there are many people who prefer to go out their countries and explore the world. It is because people recently seek for a better life; they motivate themselves by having fun experiences or traveling. According to IATA (2013), “by 2017 total passenger numbers are expected to rise to 3.91 billion — an increase of 930 million passengers over the 2.98 billion carried in 2012.” As the number of tourists increases, therefore, many airline organizations are created during last few years to offer transportation to tourists. Because there are many airline companies that provide similar products and services, each airline needs to have competitive advantages to survive in the tourism industry. Competitive advantage can be defined as “a superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation (Competitive advantage, n.d.).” In the airline industry, customers seek for …show more content…

Therefore, one of the ways that companies can have competitive advantages and grow their business is providing good quality of services and having appropriate legal compliance systems. In case of the United Airlines, however, the company has some problems in its service quality and legal compliance.
The United Airlines is one of the large American carriers in the world that was founded by Walter Varney in 1926. In 2015, the United Airlines operated more than 1.5 million flights carrying more than 140 million customers (United, 2016). The United Airlines’ airline base or main hub is O’Hare International Airport in Chicago (Planespotters, n.d.). Walter Varney was built the company so that many people can air travel with low and discount fares. It is true that lower price of products and services attracts

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