Service-oriented industries are important and helpful components of the economic or business field of a particular place. This is primarily based from the fact that they significantly contribute to the finances and over-all development of the society where they belong and the nation in general. Hence, it is essential that such kinds of trades are supposed to be free from problems and challenges. In doing so, it is expected of them to attain smooth operation thereby continue to be a factor in the progress of state and its people.
Among these types of service-oriented businesses are the airline and hospitality industries. These trades, both public in private, include airport terminals and airline companies as well as related businesses where service and assistance to the public are provided such as transportation and the hotel and restaurant sectors.
At the onset, these airline and hospitality industries have advantageous and profitable manifestations. However, harmful factors and incidents obstruct the said airline and hospitality businesses. Existing predicaments absolutely hurt any industry and the airline and hospitality-oriented industries are inevitably not spared from such. In order therefore to address and ultimately resolve industry-related obstacles and its damaging effects, there is a need to realize an effective management of airline and hospitality industries.
To be able to better understand and eventually recognize the significance of the said principles, it is empirical to apply the scenario to particular location where airline and hospitality industries play important functions. Specifically, the management of airline and hospitality industries in Atlanta GA is valuable issue to explore. This is because it is in Atlanta GA where promising and thriving airline and hospitality-oriented businesses, such as the Atlanta International Airport and the state’s transit system, restaurants, hotels definitely exist.
Especially in Atlanta GA, its rail transit system called MARTA subway takes residents and tourists from the terminal to the airport and to downtown. The relevance of this particular structure is experienced within the state and among its people. This is due to the reality that through the railroad industry, people are immediately and conveniently led to their respective destinations such as the Georgia World Congress Center or GWCC and Georgia Dome as well as the place’s famous restaurants and hotels where hospitality is exemplified.
It is on this premise that successful and efficient management of airline and hospitality industries is essential to Atlanta GA. This is for the reason that the Atlanta International Airport and its various airline companies as well as the rest of the state’s service-oriented industries and establishments are expected to always adhere to and uphold hospitality.
It is unfortunate to note however that despite such necessity, several detrimental factors are still presented. Through the years, United States is continuously faced with external and internal problems and Atlanta GA was not exempted. In fact, Atlanta GA’s airline and hospitality industries have been affected by the previous September 11, 2001 terrorist attacks. Most notably, the recent financial crisis that the country experiences also has harmful effects to the state’s service-oriented industries like airline and hospitality industries.
Due to the said events, it is apparent that the airline industry in Atlanta GA shows significant implications to related service-oriented industries where hospitality plays an important role. The general effect of the tragic 9/11 incident and the existing economic crisis to the airline industry in Atlanta GA is manifested through a decrease in its market. Relative to this problem is the lessened number of passengers such as residents as well as local and foreign tourists. The effect is likewise depicted within the airline industry itself where airline companies close down and employees are laid off.
In effect, these negative conditions involving the airline industry result to damaging effects to the hospitality industry in Atlanta GA. This is because the reduced number of airline passengers definitely affected the state’s facilities like restaurants and hotels where hospitality and customer service are being manifested. It is ideal that Atlanta GA’s airport and airline industries can direct people to certain hotels and restaurants. But the previous cited incidents lessened the number of passengers thereby eventually affected those belonging in the hospitality industry.
While these incidents inevitably happened, it is still worthy to find ways to solve the problem. This is where an effective management of both the airline and hospitality industries are essential to be considered in order to control, if not prevent, similar effects in the future.
Particularly for Atlanta GA, efficiently managing these industries is undeniably important to clearly establish how the place manifests its hospitable service to people. Ultimately, it is essential to realize that despite the problems besetting the airline industry and their harmful effects to the hospitality industry; the situation can be addressed and eventually resolved by an effective management of said industries.
Atlanta GA’s airline and hospitality industries
The City of Atlanta did not only become notable for its railroad and automobile industries. Foremost these modes of transportations, the place have long been popular for its airline industry. This is because of the airline business’ success since its initial emergence in the 1920s in the city. Even as early as that time, Atlanta already boasted its passenger terminal and passenger routes as well as an airfield and air mail. Most significantly, such facilities assured the city’s early link with the airline industry of the (“Atlanta,” 2004).
Atlanta’s business success is attributed to the city’s transportation industries that included the airline companies. Hence, transportation particularly the airline industry always plays a significant element in Atlanta’s trading achievements even from the start. Air transportation had progressed with the establishment of then Atlanta Municipal Airport. It was later named as Hartsfield-Jackson Atlanta International Airport and already carried close to four million passengers on its initial year of operation (“Atlanta,” 2004).
The connection between the airline and hospitality industries in Atlanta became apparent because of the fact that when airline businesses boomed, so are the service-oriented industries that provided and manifested the practice of hospitality. The enhancement of customer service in the airline industry led to additional passengers. Thus, with an increased number of passengers, tourism in the city was promoted and those belonging in the hospitality industry subsequently progressed (“Atlanta,” 2004).
Such link between the airline and hospitality industries exists in today’s setting of Atlanta. This is due to the fact that the said two fields of business go hand in hand in determining the progress of one place such as the City of Atlanta. With the success of the airline industry, it is the hospitality industry that is supposed to benefit. This is specifically proven with a condition that an increased number of airline passengers results to the development of the hospitality industry including hotels, restaurants and other facilities within the area thereby improving the city’s business reputation (“Atlanta,” 2004).
Taking into consideration that Atlanta GA is noted as one of the leading business
cities and transportation centers in the U.S., it is empirical to regard how its airline and hospitality industries play significant functions in the progress of the entire state. In fact, due to the place’s flourishing service-oriented industries such as airline companies and those which are into hospitality industries, business publications have positively rated the City of Atlanta as the top city for trading (“Top Industry Publications Rank Atlanta as a Leading City for Business,” 2000).
Airline Industry Problems
In order to signify the relevant connection between the airline and hospitality industries, it is practical to present first the alarming condition within the airline business. In any undertaking, it is expected that problems occur and challenge the development and even stability of particular industry. This condition holds true with the airline business. Despite an established and steady growth for the past decades, the airline industry was presented with contemporary problems that were perceived as directly related to the nature of the business.
The problems to be discussed are the occurrence of the tragic September 11 terrorist attacks in New York City and the current financial crisis in the country. While the first event did not happen in the State of Georgia particularly in the City of Atlanta, its damaging implications included the negative effects that it made to the airline industry in general. This indicates the general nature and scope of the airline industry hence the incident affected the entire business.
With the escalated terrorists activities and related violence, the airline industry is one of the American businesses that were significantly affected. This concern is particularly manifested with the plunge in the passenger statistics. Due to the airline-related terrorist attacks, human nature resulted into people deviating from traveling by air. In turn, this created a significant drop in the number of airline passengers.
As an offshoot of the collapse of the World Trade Center’s twin towers and the death of many people by means of the attack of the terrorist-controlled airlines, people refrained from traveling particularly by airline. The trauma brought about by the 9/11 terrorists’ violence created fear among people that the airline industry is a susceptible venue for such kind of hostility and tragedy.
The terror attacks did not only affect the airline industry in term of income or profit from passengers. The incident also created an impact within the airline industry itself as depicted by the limitation in the operation of airlines thus eventually affected the workforce of airline companies. This is based from the logic that a limited airline operation results to restriction in the work of airline company personnel and employees working in the airport as well.
In fact, despite the fact that the 9/11 terrorists’ attacks happened nearly a decade ago, its effects were not only felt in key American cities like in Atlanta but in the rest of the world. After the terror incident, a worldwide transportation organization reported a significant drop in airline revenue across the country and worldwide. Such airline industry revenue-related drop has relative effects among airline companies particularly their respective employees (Jordans, 2009).
The same group also stated that the airline industry was likewise greatly affected by the current financial crisis across the nation and throughout the world. Citing the report of the International Air Transport Association, Jordans added that international airline companies are expected to loose close to $5 billion within the year as a result of the economic downturn. It was also noted that the worsening condition of worldwide economies contributes to the problems besetting the entire airline industry and the situation in Atlanta GA is not spared from such problem (Jordans, 2009).
Beyond these glaring statistics and alarming condition involving the airline industry, the situation is to be entirely taken as generally damaging. This is because of the succeeding effects which are expected to occur resulting from problems and challenges facing the airline business. In short, while the 9/11 terrorists’ attacks and financial crisis ignited the problems within the airline industry, the condition does not end there as the business is supposed to affect an equally important field of economy, which is the hospitality industry.
The September 11 terrorists’ attacks created harmful effects to the airline industry which, in turn, affected other economic or financial fields such as those belonging in the hospitality industry. From the very nature of this industry, it is supposed to be a service-oriented field that renders customer service and most importantly, provide and manifest hospitality within the entire business and among the concerned people.
As such, when the airline industry experiences negative attributes such as low or reduced number of passengers, it is expected that the hospitality industry such as establishments or facilities like hotels and restaurants are also affected. The chain reaction or domino effect is expected since in terms of public or market of the two industries, the condition does not signify a good turn out.
Additionally, the reality of lessened airline passengers definitely and likewise results to low market in the hospitality business. This is primarily based from the scenario that a low turn-out in the number of arriving people in a place like in the City of Atlanta, there is less people to go to restaurants and hotels. It is supposedly ideal that the airline industry and its related facilities such as the Atlanta International Airport can direct people to specific hotels, restaurants and other hospitality establishments. However, this purpose is not totally and successfully achieved if less people or passengers are traveling. Hence, the principle and practice of hospitality and customer service are eventually not realized.
Effects of Airline Industry Problems to Hotels, Restaurants
The implications of the harmful problem brought about by the 9/11 and financial crisis are specifically proven and felt within the airline industry. According to PKF Hospitality Research or PKF-HR, it is the hospitality industry particularly the hotels which appear to be enormously susceptible to the existing sharp deterioration of the airline industry.
In particular, it was learned from the current analytical data that hotels in the U.S. are expected to experience a decline in accommodation from guests. This is based from the fact that the number of people or tourists arriving in a particular place is absolutely decreasing. In short, the decline in airline capacity serves as measurement of the vulnerability of the hospitality industry such as hotels (“PKF Study Finds U.S. Hotels Extremely Vulnerable to Sharp Declines in Airline Capacity,” 2008).
As said by the head of PKF-HR, a number of people within the hospitality or particularly hotel industry are considering the relevant impacts of the worsening airline industry. This is based from the premise that the problems happening in the airline industry are expected to create a spill-over implications to a relatively susceptible industry like those in the hospitality business including hotels (“PKF Study Finds U.S. Hotels Extremely Vulnerable to Sharp Declines in Airline Capacity,” 2008).
As learned from the study, Woodworth, PKF President, specifically stated that “Our research measured the historical relationship between these two components of the travel industry. This allowed us to project just how much business hotels stand to lose given the cutbacks in capacity announced by the major airlines” (“PKF Study Finds U.S. Hotels Extremely Vulnerable to Sharp Declines in Airline Capacity,” 2008, p. 1). This study proved the connection between the two industries wherein the problem of the airline business spills over to the hospitality industry.