According to Sandra Arnoult in Air Transport World (2004), at a recent meeting of the European Regions Airlines Association in Vienna, the attendees expressed optimism about the future of European Airlines. Guest speakers suggested that airlines should be pleased with the progress already made. Arnoult lists the following facts as contributing to increased efficiencies:
More passengers traveling on fewer flights
Airlines have reduced operating costs and improved efficiencies by cutting less profitable routes and concentrating on more profitable routes
The industry is leaner, and mergers have made European airlines even more competitive
Competition, particularly among low cost low frills airlines has forced other airlines to change their marketing strategies even as some so called frequent flyers seek more perks, privileges, and flexibility in bookings. In some cases, companies have had to downgrade sales forecasts. For other airlines, change in demand is not the biggest problem -- competition is what causes them the most trouble (Arnault, 2004, 62).
Market demand is the total amount of a particular good or service currently demanded by all buyers in the economy. Market potential can be thought of as the upper limit of market demand. It could be defined as the maximum achievable combined sales for all sellers of a specific product in a specific market over a specified period of time. Sales forecasting involves estimating or predicting a company's future sales volume. These predictions are made using a combination of past sales experience, market research, intuition, an assessment of the upper limit of market demand, and forecasts of market share increases or decreases for the company developing its sales forecasts.
Market demand, market potential and sales forecasting are interrelated. Market demand, based on the above definition, can be thought of as the current level of demand for a particular good or s
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