INCREASING AIRLINE SALES THE CASE OF VIRGIN ATLANTIC Assignment

INCREASING AIRLINE SALES THE CASE OF VIRGIN ATLANTIC - Assignment Example Fundamentally, the report suggests that the major challenges in increasing company sales come from the internal structures and business strategies adopted by the company. The report suggests a number of possible options towards increasing sales for the company, including merchandising, partnerships among others. The report finally concludes by offering suggestions in the recommendations section, on ensuring sustained profitability through increased sales. Table of contents 1.Introduction 4 2.Methodology 4 3.Background to airline industry 4 4.Background to Virgin Atlantic 5 5.Strategic market audit findings – increasing airline sales 6 5.1.Customer choices 6 5.2.Competition 6 5.3.Code share agreements 7 5.4.Frequent-flyer program 7 5.5.Distribution channels 8 6.Strategic options 8 6.1.Partnerships 9 6.2.Merchandising 10 6.3.Consumer research 11 6.4.Competitive mapping 12 7.Recommendations 13 8.Conclusion 14 9.Bibliography 14 10.Appendices 17 11.Annotated bibliography 18 11.1.Pr imary sources 18 11.2.Secondary sources 19 1. Introduction This report will focus on the airline industry with specific focus on ways of increasing sales for the Virgin Atlantic airline. ... 3. Background to airline industry The airline industry has continuously been transformed since the inception of aircrafts. Airlines have undertaken different income generating methods through including cargo and mail among the items transported. Traditionally airlines offered passenger travel to individuals moving between different locations. Considered a luxury for many individuals, the increasing number of airlines has resulted in airline transport becoming recognised and increasingly utilised. The airlines have further provided different products for their clients aimed at maximising the number of passengers transported. Global ranking for airlines continues to be based on number of passengers transported within passenger airlines. Increased competition within the airline industry continues to present surmountable challenges to various carriers within the industry. Different carrier routes continue to be developed as well as different products aimed at enhancing sales. Within the airline industry, many carriers have continuously focused on enhancing customer satisfaction and flying experience. Passenger carriers have also introduced other services like cargo and mail to increase revenue and diversify business opportunities. Many carriers have taken diversification further through acquisition of cargo planes. While some companies like DHL have specialised in cargo transportation, passenger carriers continue to invest in cargo as they diversify their business opportunities for sustainability 4. Background to Virgin Atlantic Virgin Atlantic is trademark of the Virgin Atlantic Airways Limited, registered in Britain as an airline based at the Gatwick airport in West