Introduction
In modern times, the field of tourism continues to develop and improve actively. Moreover, the number of trips over long distances is significantly growing, leading to the increased popularity of air travel. One of the companies providing such a service is Emirates, founded in 1985. Despite its short existence, the United Arab Emirates’ national carrier has been a market leader for nearly twenty years. The dynamically developing airline has earned an excellent reputation in the global aviation industry. It is a worthy competitor to such giants of European aviation as Air France-KLM, British Airways, and Lufthansa. Defining the geo-economic development strategy of Emirates Airlines in the world air transport market as the primary future monopolist is especially relevant during globalization.
The Company’s Background
The Emirates flight map is constantly expanding with new destinations. The company is positioning itself as a global carrier, offering intercontinental flights with connections via its hub at Dubai Airport. Emirates is the world leader among airlines worldwide in fleet renewal; it does not use leasing companies as it has funds to purchase aircraft. It is the world’s largest operator of Airbus 380 and Boeing 777 aircraft, and its current order book includes more than 400 aircraft worth approximately $166 billion as of November 2021 (Taneja, 2021). Stating that the firm already has the youngest and one of the most modern fleets in commercial aviation, the company aims to make Dubai a significant hub for air travel.
To simplify government services and facilitate transactions, the Emirates will aim to play an essential role in supporting decision-making and providing decision makers with up-to-date statistics on population demographics by developing reliable, advanced systems integrated with civil records institutions in the UAE. It, in turn, makes it possible to update information in the population system registry automatically. Thus, it is evident that the company has become one of the most popular air transportation options in the UAE and other states due to the rapid pace of development. At the same time, even though Emirates is a favorite of foreigners, the company began its journey and continues to focus on the UAE, which makes it necessary to study the peculiarities of the aviation sector in the state.
Introduction of the Country
The United Arab Emirates represents seven independent and entirely autonomous entities. Each Emirate has its specifics and economic features for business. The state is located at the crossroads of trade routes from the West to the East and Asia. Due to this advantageous location, the UAE has become a major international business center. For the relatively short time it has existed, this wonderful country has become the dream of numerous tourists. It attracts with its unique, multifaceted culture, grandeur and beauty, high standard of living, the population’s high culture, excellent service level, warm sea, and numerous luxury resorts.
Moreover, the Emirates has become a leader in international tourism. Investment capitals, flowing into the Emirates from all over the world, are involved in the realization of many grandiose projects, which contribute to the country’s active development of the economy. The increasing domestic consumer demand likewise plays an essential role in establishing a business in the Emirates annually (Taneja, 2021). This factor and the indicators of the constant dynamic development of all sectors of the economy are the direct and most obvious proof of the success of the conditions offered by the UAE.
Introduction of the Service
One of the most common modes of tourism is air transport. Its popularity can be attributed to the significant expansion of travel geography and the reduction of journey terms in favor of their frequency (growth of short-term tours over long distances). These trends cause immediate attention of the entire tourism business to regional and international air transportation. The air market is an aggregate supply and solvent demand for the conveyance of people and things by air. Air cargo delivery is a fast service, reliable method of guaranteed suppliance of goods, luggage, and an entire batch anywhere. Aircraft have a large carrying capacity; there is no risk of delay due to traffic congestion. Shipment is virtually immune to the encroachment of fraudsters. The passenger transportation service is no less popular, which proves that it is air services – the fastest and most suitable option to get where ones need (Taneja, 2021). They are characterized by distinctive innovations and a practical choice for consumers, which makes air service the foremost opportunity to move in the modern world.
SWOT Analysis for the Emirates Airlines
Table 1. SWOT of Emirates Airlines
The airlines have been proving their efficiency and viability for a long time. From the above analysis, one can conclude that Emirates is a promising company with considerable advantages (Table 1). For several years, it has been offering its customers high-quality service and transport efficiency indicators higher than its competitors. Customers can get fast service and the support of employees. Moreover, the company actively pursues marketing strategies, attracting more and more clients and sponsors. Thus, Emirates is a recognizable brand that acts following the law and gets the support of both managers and consumers.
Despite this, the company has registration deficiencies, which significantly hinder the ability to accommodate many people. It is crucial to note a relatively low level of internal communication, which often becomes a reason for the lack of coordination. The company is not represented in the U.S., which significantly affects the profitability because the number of flight coverage is less than potential. The biggest threat to Emirates is the pandemic, which led to a drop in financials and uneven traffic. Competition is increasing, but at the same time, investments and improvements are threatening the potential growth of the airlines. Despite this, Emirates has tremendous potential to expand partnerships, infrastructure, and R&D. Ongoing work on the ID system could be an excellent opportunity to overcome the crisis.
SWOT Analysis of the State
Table 2. SWOT Analysis of UAE
To analyze the company itself, it is essential to understand that the country in which the organization operates has a considerable role in its activities. Based on the analysis of the UAE, it can be concluded that the state has almost no weaknesses or risks for the operation (Table 2). Even though there have been stereotypes about the difficulties of doing business in the Emirates and the complexity of the culture for a long time, the facts are not valid. The UAE can now be considered one of the most promising countries for business and tourism. It rapidly develops economically and is the most prominent object of interest among tourists and investors. The geographical position of the UAE is likewise favorable in the proper placement of service centers, despite the remoteness from the world centers. It is evident that the UAE is a suitable option for developing airlines and their operations with the proper marketing strategies.
National Features
The United Arab Emirates is the epicenter of the latest technology and all the most delinquent global developments, whether in real estate, cultural centers, marinas, or transport links. The UAE has become a living example of creating a comfortable oasis among the dunes, the experience other desert countries are now trying to emulate. In implementing all projects, there is always a local “zest” – intertwining Oriental culture with futuristic architecture, mind-boggling luxury with desolate desert. Not surprisingly, this has also affected transport development in the Emirates.
As in most countries of the world, the UAE airports are the calling card that introduces the foreigner to the country from the first steps on the territory of the country. There are eight airports in the Emirates, among which only one does not serve civil aviation. Of course, the model for the country is Dubai International Airport, which began construction more than half a century ago, but finally, the work was completed only in 2009 (Taneja, 2021). It is not because the local builders work long hours but to the constant modernization and expansion of the originally conceived solutions. For all its merits, Dubai Airport has become the largest transportation hub connecting the Middle East with different parts of the world – in the pre-pandemic times. It serves about 150 airlines and 60 million passengers annually. It provided flights from 220 cities across six continents, making it the largest airport in the world. The Oriental traditions and culture of the UAE significantly influence the appearance of the facilities and make them even more attractive for tourists.
The UAE is a cosmopolitan country, and its cultural particularities are, in a sense, a mixture of cultures. It is especially valid for Abu Dhabi and Dubai, as they are the two cities where most expatriates live (Taneja, 2021). The unique beauty of Dubai lies precisely in the fact that it embodies the fusion of different cultures. Although ex-pats are likely to experience some culture shock when they come to Dubai, there is still a good chance of finding a niche where they will feel at home. Nevertheless, in the UAE, there is a strong foundation of Arab and Islamic culture that permeates all aspects of daily life, especially in the smaller towns and rural parts of the country. One of the essential features of this culture is the acceptance of things as they are.
The development of the tourism sector is inextricably linked to the modernization and development of the transport infrastructure. The UAE is a global transport center, connecting the West and the East trade routes (Taneja, 2021). The Emirates are leaders in the world in terms of passenger and freight traffic. The leading role in international communications is played by air transport. Because of the many different cultures, a distinctive feature of the UAE, air services are the easiest to promote.
The country’s culture can be used to attract more tourists from abroad who will use the air travel service and thus improve the company’s popularity. Moreover, the features of the UAE show extraordinary opportunities for business people, and this indicator can also be used to introduce the service. Improving business travel and onboard options will help to make Emirates airlines the most convenient way for people wishing to build a business in the UAE. The main competitive advantage of Emirates airlines – the low cost of operations along with unlimited investment opportunities provided by shareholders – allows them to grow at double-digit rates per year. The UAE’s cultural characteristics can control costs in a resource-based economy in a state-owned company while ensuring effective strategic management. The country’s openness stimulates the inflow of cheap labor and highly qualified specialists and managers from abroad. From this, one can conclude that the UAE culture is particularly suitable for promoting airline services.
Marketing Mix
The marketing strategy of Emirates will be analyzed with the mix of the 4Ps (Product, Price, Place, Promotion). It can be used to comprehend more deeply what advantages the company has and what approaches it uses. This information can be analyzed to propose possible development options and implement new strategies. The product is the first component that helps a brand achieve its goals and results and occupy a niche in the end market. The airline offers flight services and serves passengers with Boeing and Airbus, which uses a mixed fleet. The size of the company’s aircraft is more significant than that of other competitors in the market, simplifying their operation’s peculiarities.
The organization offers services to customers at several personal and professional levels, which means that flights are offered in three classes: Economy, First, and Business. It proves the diversity of the company’s approach to each client and provides services for people with different needs and income levels. Emirates offers its customers the opportunity to use mini-bar, bed, and shower cabins. All this indicates a high level of service and the possibility of complete passenger comfort. Moreover, the airline offers a lot of in-flight entertainment and a wide variety of meals, which allows customers to stay satisfied with its services. This information can be used to emphasize the type of services and the need to find additional ways to develop.
Emirates allows its customers to purchase tickets at a wide variety of fares. Fares rely on the course and type of service, may have seasonal discounts, and depend on the time of stay at the goal. For example, when booking tickets on the airline’s website, customers can get a promo code or coupon that guarantees a discount on an airline ticket (Taneja, 2021). Emirates airlines have a distinct pricing strategy in its marketing mix. It has developed shorter, less costly routes with no stopovers. Although the prices on these routes are lower, the company generates revenue through volume (Taneja, 2021). With direct flights, Emirates has an effective pricing policy on shorter routes. To achieve flexible seat pricing and maximize profits, the company also has a dynamic pricing policy, charging the highest cost per seat.
Emirates operates from Dubai, strategically located at the center of all international routes connecting the eastern and western cities of the world. Well known for its long courses, Emirates Airlines has also introduced new short ways that benefit its customers. The airline connects 150 cities in 80 countries and six continents around the globe (Taneja, 2021). Its distribution strategy includes selling tickets through travel agencies and tour operators. Airlines engage in various promotional activities, placing ads in magazines, newspapers, television, and radio. It often presents promotional discounts during the off-season, offering tickets at reasonable prices, which draws tourists to Dubai from all over the world (Taneja, 2021). The airline provides programs for frequent flyers and rewards for regular customers: discounts, access to lounges, and free tickets. It indicates that the marketing strategy is chosen precisely and contributes to the company’s growth.
Conclusion and Recommendations
Thus, it can be concluded that the UAE – is an up-and-coming country, with the aviation sector developing rapidly. Emirates, as one of the airlines of this state, can be considered the most competitive and attractive for tourists. It offers excellent service, and innovation makes it even more appealing. In developing a strategy, Emirates Airlines should seek to define its operating model for current operations and identify future changes in its operations. The first phase of the operating model could focus on registering the entire UAE population and gradually shift towards providing ID-card-based services to both public and private institutions. ID cards will eventually become the primary mechanism by which people are identified and authenticated in physical and virtual forms and will be integral to accessing public services. Emirates will use the base of the scorecard as an approach to control management and performance measurement, as well as a tool for internal and external communication. In this way, these recommendations will simplify operations and help the company retain its leadership position.
Reference
Taneja, N. K. (2021). Airlines in a post-pandemic world: Preparing for constant turbulence ahead. Routledge.