Decreased Demand in Travel Services Memo – Emirates Airline

Decreased Demand in Travel Services Memo – Emirates Airline

Date: September 28, 2020

To: The Board of Directors

From: Management Consultant for Emirate Airline

Subject: Decreased Demand

Emirate Airlines has been evolving from a small company to an international airline service. The company has managed to achieve tremendous growth as it opted to use a unique and independent strategy. The strategy entails connecting their flights to two different pairs of cities, such as New York in the United States and Nairobi in Kenya. A new terminal has been built to accommodate all the Emirates flights. However, recently, there has been a decrease in demand due to increased terror attacks and fluctuation in oil prices. Hire our assignment writing services in case your assignment is devastating you. Our team of experts is ready to help.

The purpose of this memo is to address the issue of decreased demand in travel services, which has made the company experience a decline in revenue generation. The notice includes an overview of the problem, followed by an analysis of the issue. There is a proposal for possible solutions to curb the decrease in demand at Emirates Airlines in the memo. Lastly, the directive provides recommendations that the company’s management can use to take action to solve the problem at hand.

Issues/Problems

The decline in demand for the company’s services is due to increased terror attacks and increasing fuel prices. Most companies, especially those in the middle east, have reduced their employees’ travels leading to a resultant decline in the demand and revenue for Emirates Airlines. With an increasing fear of terrorism, most people are cutting down on international flights. This issue has mainly affected countries in the Middle East, which has resulted in changes in some of the routes.

Emirate Airlines has resolved to operate the Boeing 777, which carries fewer passengers compared to its previous fleet of Airbus A380. There have also been claims that the company has been using low-price fuel in its fleet. The main concern is that these lowered prices are derived from government subsidies (Carey and Jones n.p). The airline has been dealing with the decline in demand by providing amenities to the passengers. This is one of the reasons they have managed to remain afloat in business. The airline is attracting more customers with the amenities program and does not depend on government subsidies.

Analysis of Issues/Problems

Consumers are essential to the survival of any business venture. Emirates is not an exception as they need to balance the demand for services and supply. A decrease in order implies a reduction in profits. Emirates openly discloses its financial documents for each fiscal year in the international reports. Thus, it is highly unlikely that they receive government subsidies for fuel to fund their operations. Open disclosure of the statements implies that they can account for each coin spent and profits made.

The fluctuation of oil prices is a challenge to many economic activities. An increase in the prices means the management has to reconsider the amount of money they charge for their services. An addition in the cost of service means fewer people will be flying using Emirate Airlines. The increasing terror attacks in some parts of the Middle East are also threatening the passengers’ lives. Most potential clients will have to limit their business activities in such areas. In general, Emirates will be losing more and more passengers each fiscal year.

Proposed Solutions

One solution that Emirates Airlines can undertake is to increase their flight to other countries. The strategy aims to cover lost trips in the Middle East. Instead of increasing the prices of their flights to other places, they can improve service delivery. An increase in service delivery attracts more consumers, and they will manage to maintain their revenue. They can enhance their inflight viewing at the back of their seats (Torkashvand, Stephane, and Vink 4). Equally, the strategy will be advantageous as it will give them an absolute advantage over their competitors.

Security threats and an increase in fuel prices are an economic challenge that the company does not control. Thus, the best the airline can do is to increase the destinations in other places. Instead of focusing more on the Middle East, they can make flights to areas considered safer. The safety of their passengers should be a priority (Singh, Sharma, and Srivastava 248). Consumers are likely to use the service more if they feel safe and secure and have a good flight experience. They should use routes that are cleared as safe to prevent any security issues.

Conclusion and Recommendation

Emirate Airlines has performed tremendously over the years. The main issue that the company faces in the industry is a reduction in demand. The problem arises from an increase in fuel prices and terror attacks. This has led to a decrease in Emirate Airlines’ revenue and profits. One possible solution to the problem is to improve service delivery. Another solution is to increase its flights to safer places.

Increasing the destinations of their flights to safer places will be the most effective solution. The solution aims at maintaining its revenue generation without increasing the flight prices. With fewer destinations and passengers, the company is likely to hike the costs to these few destinations. The increase is to cater to the gap in their profits and remain in business. The strategy will allow Emirates Airlines to maintain a good customer relationship and still be competitive. Therefore, increasing destinations will provide passengers with a new feeling and experience.

Work Cited

Carey Susan & Jones Rory. U.S. Airlines Claim to Document Subsidies at Gulf Rivals. The Wall Street Journal. Retrieved from https://www.google.com/amp/s/www.wsj.com/amp/articles/u-s-airlines-calim-to-document-subsidies-at-gulf-rivals-1429573165. Accessed 28 September 2020.

Singh Jagroop, Sharma Somesh & Srivastava Rajnish. Managing Fuel Efficiency in the Aviation Sector: Challenges, Accomplishments and Opportunities. FIIB Business Review, 7(4), 2018, 244-251.

Torkashvand Golnoosh, Stephane Lucas & Vink Peter. Aircraft Interior Design and Satisfaction for Different Activities; A New Approach Toward Understanding Passenger Experience. International   Journal of Aviation, Aeronautics, and Aerospace, 6(2), 2019, 1-16.

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Case Study Memos – Emirates Airline in 2017
The cases will analyze and generate one recommendation that comes from proposing 2-3 possible solutions: 1)Case 12: Emirates Airline in 20172) The length of the memo case study will be two full type-written pages per the memo writing style. Use Arial font at 10 points.

Decreased Demand in Travel Services Memo

Objectives for This Activity
DIRECTIONS FOR WRITING A CASE STUDY MEMO
You will provide an introduction paragraph, which does not contain an introduction header, to briefly talk about each company and state the general purpose of the memo. The memo does not read like a book report about the case. You identify and write descriptively a key issue(s)/problem(s), analyze the issues/problem, provide 2-3 proposed solutions, and choose one of the proposed solutions as a recommendation. You look at a specific issue or two issues interconnected in the case, and you don’t take a broad approach that defines little to nothing about what you think. Be precise and add direction for the problem/issue identification so the reader (executive) can make a decision from your memo.

The first header after the introduction paragraph will address what you see as a problem(s) and/or issue(s). Write two-three paragraphs about this header content, using 6-7 lines per paragraph, not exceeding eight lines. I count lines per paragraph and deduct a point or two for excessive paragraph length, and the point deduction counts for each paragraph in the memo. The “look” of any written document affects the read, so polish the look of your memos. This section will contain 2-3 paragraphs.

The second header section will provide an analysis of the issue/problem, composed of 2-4 paragraphs with a general length of between 6-7 lines, which applies to all paragraphs, with a max paragraph length of eight lines. In this section, you analyze the problems/issues, looking at influences on the company, departments, unit, and possibly teams. As a researcher, which includes your work as a manager/consultant in business, you connect the influences to the problem/issue to help the reader understand the dynamics of an organizational situation that needs improving or changing to improve unit cost. Use the Complicated and Complex Slide Diagram to help you see the observable and hidden action.

The third header will provide 2-3 proposed solutions made up of the same number of paragraphs, using 6-7 lines, with a max of eight lines. You write a paragraph for each solution, not one paragraph for all two or three solutions for the issue(s)/problem(s) the team will address and/or design to meet what is/are identified as an issue(s)/problem(s). In each paragraph, you paint a picture of what the proposed solution will entail at a high feature component, which I will address how it will affect the company. Features represent the proposed actions that the company will take to solve the problem. In the first line, per the memo example, describe the title of the proposed solution that can take on project work as the next step.

For the Conclusion and Recommendation header, you will provide a conclusion paragraph that summarizes the main ideas in the memo so an executive can easily understand the key issues and solutions. The last sentence of the summary, no more than two lines, will identify the title of each proposed solution. You end with a recommendation paragraph at the bottom of the second page. The conclusion paragraph provides a high-level summary of the key items discussed in the memo, not to exceed eight lines. A recommendation paragraph selects one of the 2-3 proposed solutions to address your analysis and chosen direction, and you explain the benefits of using this recommendation to generate positive results, which I will explain.

You don’t introduce new information in the conclusion and recommendation. If you introduce new information in either paragraph, points will be deducted.

Use these headers below as the outline for the memo, which I described above. See a business memo example inthe Content section of Beachboard.

Opening paragraph describes the basic situation, and the last sentence describes what the reader will read in the memo, stating the memo will include a recommendation in the Conclusion and Recommendation header. NB: You state the recommendation in the first sentence in the recommendation paragraph and explain your reason along with implementation. Use these headers below for the memo after your introduction paragraph

Paragraph Order:
Issues/Problems
Analysis of Issues/Problems
Proposed Solutions
Conclusion and Recommendation