Do you agree that the majority of airline companies are price-oriented?
Nowadays, Majority of Airline companies’ customers are price oriented, and the people are very conscious of their rights, and they know that they have many choices in the market, regarding choosing an airline. Beside this, there is no switching cost for consumers if the price offered by the airline is not suitable for them unless the consumers are very keen on flying with British Airways and very much satisfied with their services offered by the airline. Also to be noted that in case of people who buy tickets from travel agents, they will try to find multiple options to gain the best deal for traveling, which then leaves the power to the travel agents. Thus, there is a High Level of Bargaining Power of Buyers in the case of British Airways.
As compared to British Airways when we determined the substitutes which exist for the consumers in the market, we can list them respectively as train, car, bus, ship and all these can cause a threat to British Airways customer. However, it completely depends on how consumers see the value or what do they need. For instance, if the customers are just looking for low and affordable price, then they have more possibility of choosing alternative transport methods rather than an airline. However, it is to be considered that those are not the target market for British Airways. Also, if the consumers are looking for fast and time saving of travel option, then they have a high possibility of selecting British Airlines among other alternatives , and that is exactly the target market for British Airways. Thus, it can be said that the Threat of Substitutes for British Airways is Medium.