Airline marketing – the role of passenger demand

This chapter considers certain characteristics of the demand for air travel and examines the various factors that affect the level and growth of demand in any given market. The density of passenger demand, its seasonality, the purpose of travel, the distance to be travelled, and other demand aspects should influence the way in which air services are supplied and will impact on costs. The most significant socio-economic variable affecting the demand for leisure travel is personal or household income, since leisure trips are paid for by the passenger, who may also be paying for a spouse and one or more children. The daily and weekly peaks in demand generally pose a less severe handicap than the seasonal peaks. It is the seasonal peaks of demand which create more problems and impose the greatest costs. The demand for passenger services arises from the complex interaction of a large number of factors which affect the different market segments differentially.