Essays on Effect of Competition in Leisure Industry: UK Airline Industry Case Study

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The paper "Effect of Competition in Leisure Industry: UK Airline Industry" is a great example of a case study on business. The Leisure Industry deals with products and services related to entertainment, automotive, recreation, fishing, tourism, sports and gambling, and many more. Recently, Government spending has been enhanced in developed as well as developing countries in order to promote this contemporary industry. As a result, this industry is experiencing opportunities for high growth in the future. Such high future prospects are attracting a large number of market players; consequently, a high degree of competition prevails in this industry.

In order to evaluate to what extent such competition leads to affect the pricing of the Leisure Industry, the nature of competition in the UK Airlines Industry will be analyzed in the paper along with the effect of such competition on the pricing of services (Langabeer and Napiewocki, 2000). The UK airline industry is the world’ s third-largest Aviation Network, only after the USA and China. The industry tends to provide world-class services at an economically beneficial price. UK airlines contribute more than £ 11 billion to the GDP of the economy and create provision for approximately 200,000 jobs; thus accelerating trade and investment, supply chain, and tourism for the economy.

The airline industry of the UK is an important part of the Leisure industry of the country that brings a wide range of benefits for individuals and society as a whole, creating scopes for travel and visit to family and friends (PWC, 2014). Discussion Airlines Industry in the UK operates in a highly privatized and competitive international market, though safety and security, airport charges, air traffic control, and environmental standards are regulated at the national, international, and European levels.

The major market players are Atlantic Airlines, British Airways, Eastern Airways, Thomas Cook Airlines, and Virgin Atlantic Airways (Belobaba, Odoni, and Barnhart, 2009). Since the privatization of the British Airport Authority in late 1980, uncertainties arise in the UK airlines industry which has left a significant economic impact on the aviation market. Hence, after reviewing the current position, Government regulations have been invited in order to control uncertainties and price war and to foster healthy competition among the existing market players (Ganesh, 2009).


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