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Domestic Air Travel

Overview

ProcurementIQ’s Domestic Air Travel procurement research is intended to help you save time and money in the initial research stages of the buying process. Our data and analysis explain the characteristics, pricing dynamics, supply chain risks and negotiation tactics of Domestic Air Travel to help your company negotiate strategically with suppliers. Our report insights also give your company the credibility to work with internal stakeholders and executives to better manage the sourcing process.
doneBenchmark Price
doneRFP/RFQ/Negotiation Questions
done3 Year Price Forecast
doneSupply Chain Analysis
doneSupplier Intelligence
doneSample Buyer Decision Scorecard
REPORT SNAPSHOT

Domestic Air Travel - Recent Price Trend

During the three years to 2017, domestic airfares have been falling at an estimated annualized rate of 3.3%. The primary factor contributing to price declines has been airlines’ falling fuel costs. During the period, the world price of crude oil, which drives the price of aviation fuel, has been plummeting, reducing supplier purchase costs significantly. Airlines have therefore been able to pass.

Domestic Air Travel - Total Cost of Ownership

Total cost of ownership is considered low for domestic air travel because ancillary fees are usually less than 50.0% of the ticket price. The low total cost of ownership benefits buyers because it reduces the chance that they will incur unexpected costs. However, total cost of ownership has risen during the past three years. More legacy airlines have begun billing for services that were once.

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About this Report

This report is intended to assist buyers of domestic air travel. Domestic air travel includes scheduled passenger routes within the United States. Airlines are the dominant suppliers in this market, although  there are other supplier types including corporate travel management companies, travel agencies and online travel aggregator companies. This report does not cover international air travel, aircraft charter services or air cargo transport.

Table of Contents

At a Glance

Executive Summary

Price Environment
 Price Fundamentals
  Benchmark Price
  Pricing Model
 Price Drivers
 Input Cost Drivers
 External Demand Drivers
 Recent Price Trend
 Price Forecast

Product Characteristics
 Product Life Cycle
 Total Cost of Ownership
 Product Specialization
 Related Goods
 Subsitute Goods
 Regulation
 Quality Control
Supply Chain & Vendors
 Supply Chain Dynamics
  Supply Chain Risk
  Geographic Locations
  Imports
 Competitive Environment
  Market Share Concentration
  Vendor Company Types
 Market Profitability
 Switching Cost

Purchasing Process
 Buying Basics
 Buying Lead Time
  Selection Process
  Buying-Decision Scorecard
 Key RFP Elements

Negotiation Questions

Buyer Power Score Components

Jargon & Glossary

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