Question

1.

- List 5 things that need to be considered in airline cost controls
- What can we do to control these costs? Explain fully.

2.

- List 5 seasonal cost considerations in the attractions industry
- What can be done to mitigate these considerations? Explain fully.

Answer 1

1) Following are the five things that need to be considered for airline cost controls:

1. Requirement of customers based on seasonal changes.
2. Fuel costs
3. Maintenance costs
4. Manpower costs - This includes all staff including airline staff, security, IT and administrative staff.

These costs can be controlled by monitoring the expenses verses income statements. Also, the trend analysis can help the airline company forecast the demand and manage it's internal resources such as manpower.

2) Following are the five seasonal cost considerations in the attractions industry:

1. Discounts and promotional offers to attract customers during off-peak seasons.
2. Maintaining the food and beverages served to the flyers as per seasonal requirements.
3. Advertising and promotional expenditures. Also, awareness creating campaigns for introducing new attractions or changes.
4. Innovations and new offerings or programs.
5. Creating value for customer - i.e. being able to cater to customers said as well as unsaid desires.

In order to mitigate these considerations, the industry must devise a strategy of innovation and development. It must survey the market and have a good forecasting strategy. Also, the organization must focus on managing it's labor force to fulfil the seasonal requirements, i.e. rise in customers in peak season. Be proactive, rather than reactive.