Whole Foods

Industry Analysis:

Future growth potential:

1. According to IATA, demand for luxury travel is up 17 percent relative to 2009. This is a good indication that even though the world economy is still trying to overcome from the financial crises, people are demanding more luxury travel.

2. Leisure travel is up by 11 percent from the depths it hit in 2009. It is nowhere close to the highs of the late 1990’s but the overall industry is gathering pace.

3. To maintain an edge over competition, luxury airlines have to make sure that they keep innovating and offering new services to its customers. Example, Emirates recently added luxury shuttle buses at busy airports to make traveling with them a pleasurable experience. Services like these help maintain customer loyalty.

4. Exploiting the change in consumer interest is also a key growth factor. More & more people are travelling by air today. With the emergence of BRIC countries, luxury airlines have started to seriously look into these developing countries to catch the first wave of the changing travel needs. With increasing level of disposable income, developing countries could serve as a very promising market for the luxury airline sector.

Future growth in profitability:

The growth in profitability in the luxury airline industry is going to come to airlines that are innovative enough to justify the cost to its consumers. Consumers are ready to pay an extra amount if they feel like it is well spent & they are indeed receiving a higher standard of services. Just like the case for any other luxury product or service, demand is going to increase if consumers can see the difference. Apple products are more of a luxury brand considering substitute products are available in the market for a much cheaper price but since Apple is always ahead of the curve in terms of innovation, growth & profitability has never been a cause of concern for the company in recent times. As long as...