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Etihad Airways’ New Destination Analysis Report (Assessment)


Market segmentation

By including Mexico City as one of its destinations, Etihad Airways can serve two groups of clients; at first, one should speak about businesses that rely on air transportation. In this case, one should speak about UAE companies that employ Mexican expatriates. Overall, in this way, Etihad Airways can benefit various organizations that may want to operate in the UAE or Mexico. Furthermore, the company can serve the needs of honeymooners and leisure travelers. The management should pay attention to affluent and middle-income clients. These individual and corporate customers can come from both Mexico and the United Arab Emirates. This is one of the points that should be taken into account by senior executives. To attract a greater number of clients, the company should increase public awareness about its new offerings. In particular, the company should focus on the availability of flights to the new destination. Additionally, they should provide information about the potential sites that can be of great interest to tourists. For instance, affluent customers coming from Mexico may be interested in visiting Emirates Palace, Etihad Towers, and so forth. In turn, Emirati visitors may go to various destinations such as the Marietas Islands. These are some of the strategies that should be considered by management. In total, there will be one direct flight from Abu Dhabi to Mexico City, and two connected flights.

Forecasted revenue

At this point, it is rather difficult to determine the revenues that the company can derive from this policy. However, there are certain approximate estimations that the management should consider. In particular, one should take into account that 3000 workers and 50 000 employees from Mexico come to the United Arab Emirates (Shaikh Muhammad receives Mexican Foreign Secretary, 2014). A significant percentage of these individuals can come to Abu Dhabi. Additionally, the company may expect to serve at least 11 percent of these customers. It should be noted that nine major companies serve this destination, and one can assume that the market share of these corporations will be approximately equal. Additionally, the company may charge about $ 1, 277 for a one-way ticket. In this case, one should speak about the economy class. In turn, a round trip will cost about $ 2.000. Given these data, the company will derive about $ 11 777 777 only from Mexican tourists. It should be noted that these projections are based on the premise that clients will choose only economy-class tickets. Additionally, the company may quickly increase its market share. These are some of the main details should be taken into account while assessing the profitability of this policy.

Price of the product

While setting the prices for this particular destination, the management of Etihad Airways should focus on the policies pursued by such airlines as Qatar Airways and Emirates because customers often compare Etihad Airways with these two companies in terms of price and quality. In particular, the economy tickets should be priced at about $ 1 2 77. In turn, first-class and premium tickets will cost approximately $ 2000 and $ 4000 respectively. It should be noted that the price of Etihad Airways will be slightly higher than those of Emirates (2015) that set the price of economy tickets at about AED 4440 which equals $1198. These are the main details that can be singled out.

Reference List

Emirates. (2015). . Web.

. (2014). Web.

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IvyPanda. (2020, July 3). Etihad Airways' New Destination Analysis. Retrieved from https://ivypanda.com/essays/etihad-airways-new-destination-analysis/

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"Etihad Airways' New Destination Analysis." IvyPanda, 3 July 2020, ivypanda.com/essays/etihad-airways-new-destination-analysis/.

1. IvyPanda. "Etihad Airways' New Destination Analysis." July 3, 2020. https://ivypanda.com/essays/etihad-airways-new-destination-analysis/.


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IvyPanda. "Etihad Airways' New Destination Analysis." July 3, 2020. https://ivypanda.com/essays/etihad-airways-new-destination-analysis/.

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IvyPanda. 2020. "Etihad Airways' New Destination Analysis." July 3, 2020. https://ivypanda.com/essays/etihad-airways-new-destination-analysis/.

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IvyPanda. (2020) 'Etihad Airways' New Destination Analysis'. 3 July.

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