Sample Essay

The substitutes for an air line industry, which is of course a segment of the larger travel and tourism industry include other modes of transportation. For overseas travel, the substitute is traveling via shipping lines and cruisers. For domestic market, the available alternatives for consumers are traveling by road, buses and railways.

Firstly, looking at the overseas market, we see that the threat is basically non-existent for air line passengers who are business travelers. For them, time is more important than money. They will prefer to spend more rather than reach their destinations in a longer period of time. For leisure travelers, shipping industry will have more appeal than for business travelers. Here, the experience of a shipping cruise and cost are the trade offs. If the cost of traveling via air line is significantly cheaper, for price sensitive buyers it will be the preferred option.

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