6.2 Air Transportation

The first commercial flight occurred in 1914. Since then, the airline industry has made many changes both for safety and to improve guest experience. Air transportation might take place on commercial or private flights. Most people fly commercial airlines. The public can typically purchase flights without much difficulty. Airlines fly on scheduled routes and times, and most commercial operations are housed at large public airports. Commercial flights generally have over 100 seats per plane, and passengers must pass through security checkpoints prior to boarding. Just three examples of major commercial airlines include Delta, Alaska Airlines, and United Airlines.

Private flights can be arranged through a private airline provider. Private planes can be owned individually, or a small fleet of them may be owned by a private company. Although usually smaller than 100 seats, larger private planes can be leased or chartered should the need arise. Private flights allow the purchaser to book the entire aircraft and to control the guests allowed on board. They do not fly a pre-set schedule and will fly in accordance with a customers’ timeline, given that the desired flight times and patterns have been approved by officials. Private flights may also have more flexibility in landing at destinations with smaller airports and runways, including privately owned airports. Private planes often have more luxurious amenities and may even come with professional chefs and personal attendants. The price of flying privately can far exceed that of flying commercially.

[FIGURE 6.4 GRAPHIC OF COMMERCIAL/PRIVATE COMPARISON]

Both commercial and private airlines are monitored by several associations and administrations. The Federal Aviation Administration (FAA) regulates and oversees airlines, airports, air traffic control, and pilot certification. Airlines for America (A4A) serves as the main trade association for U.S. airlines, advocating for policies and regulations that ensure the safety of the industry. Together, organizations such as these work to regulate the safety, infrastructure, and sustainability of the airline industry.

6.2.1 The Financial Impact of Air Transportation

The airline industry has a direct financial impact on businesses and tourism. Destinations with convenient air service attract 10% more international tourists than those with fewer flight options, according to the United World Trade Organization (Perez, 2024). In addition, a single job in air transportation supports the creation of 24 jobs in related sectors like hospitality and retail (Perez, 2024). Guests must easily and consistently be able to reach a destination to spend money there. Inexpensive, reliable, and consistent air travel allows tourists and business travelers to make frequent trips outside of their hometowns. Traveling from New York to Los Angeles by car would take 48 hours of nonstop driving. The same trip by air is only 5½ hours. Air travel makes cross-U.S. travel convenient and efficient, thus expanding the geography of tourism in the United States.

6.2.2 Airport Operations and Guest Experience.

Having a convenient and efficient transportation system to attract visitors does not necessarily lead to a quality guest experience or create repeat tourism for a destination. Airlines and airports, however, employ a wide range of people who contribute to the guest experience. Sky caps, baggage handlers, concierge, check-in staff, security, and flight attendants all work together to create a seamless and excellent guest experience. For those using curbside check-in, sky caps are one of the first employees that guests will meet at an airport. They assist with luggage at the curbside and can help passengers with directions or answer other questions. Baggage handlers receive checked baggage and move it to the plane and then to the baggage claim at its final destination as a baggage handling service [KT] for guests. Airlines lose around 2 million pieces of luggage a year (Peeples, 2023). Lost luggage greatly decreases guest satisfaction and costs the airlines almost 2 billion dollars a year in traveler reimbursements (Send My Bag, 2025). Beyond baggage services, guests interact the most with check-in staff, security, and flight attendants. Each of these categories of employees needs to prioritize hospitality as they assist guests in boarding their flights and arriving at their destinations. Guests will generally not rebook airlines that have poor customer service, lost luggage, or delayed flights. Guest satisfaction plays a large role in the economic viability of an airline as well as the overall tourism experience.

6.2.3 Pricing Strategies

Airlines operate similarly to hotels in that they use a demand pricing model. The price of an airline ticket depends on the amount of demand for that flight. The higher the demand, the higher the ticket price. The lower the demand, the lower the ticket price. Demand changes in response to weather, such as when individuals want to fly somewhere warmer in the winter. Demand can also be affected by a singular occurrence, such as the Super Bowl, where tens- or even hundreds-of-thousands of fans need to be in a certain city on a particular day. Airlines monitor and predict these influxes of demand and structure their pricing accordingly. They must also juggle their revenue decisions against competitor pricing and changes in expenses, such as fuel or labor. One of the ways that airlines can sell more seats regardless of the price demand is by loyalty programs and by partnering with hotels, resorts, or tourism companies.

An airline loyalty program [KT] works similarly to other rewards programs in other hospitality industries. Airlines award “air miles” for using the airline’s signature credit card to make purchases, for miles flown, or for friend referrals or other initiatives that increase airline business and income. Passengers can exchange “air miles” for actual flight miles when booking flights. Airlines also often run promotions for loyalty members for special discounts, discounted companion fares, and upgraded amenities like in-flight Wi-Fi. Loyalty programs benefit the airline by drawing repeat customers and increasing customer referrals.

In addition to loyalty programs, airlines can sell seats by partnering with hotels, resorts, and tourism companies. These partnerships may be contained solely in marketing materials that link to company websites with the goal of easing travel planning. Or partnerships may include more robust collaboration, such as offering discounted package deals. These packages are often described as all-inclusive travel packages. In this scenario, the traveler pays one price for their hotel and airfare. This makes booking convenient for travelers, and the hotel and airline work together to set a mutually agreed-upon price. All-inclusive travel can include additional items like ground transportation, tickets to attractions, or even food and beverages. Resorts are best known for all-inclusive travel options. Resorts will partner with a particular airline for discounts for people staying on the property. The single fee that the guest pays then includes airfare, transportation to the resort, accommodations, food, and much more. This makes for a seamless guest experience and an easy sell for the airlines.