How the Aviation Industry Adapt to the High Customer Demand of Supplies

LOGISTICS AUTOMATION SOLUTIONS IN THE AVIATION INDUSTRY
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Introduction
Over the past decade, the aviation industry has witnessed changes, such as increased market share of low-cost carriers and variations in the customer demand for supplies. The following years are projected to experience more turbulent challenges with technological advancement. Besides, technology will not be the only factor behind a surge in these challenges. Political moves such as Brexit and presidential elections in powerful states like the US have already demonstrated how they can bring about these effects. As the global aviation industry is subjected to national-level regulation, the airline industry has, over time, been oversensitive to surprises. For instance, it was massively impacted during the COVID-19 pandemic. This research paper aims to establish some of the existing literature surrounding the reasons behind the high customer demand for supplies and how the aviation industry has adapted to the exact needs.
Literature Review
Drivers of change in customer demands
As discussed below, a series of factors cause a shift in customer demand for supplies in the aviation industry.
Alternative fuels and energy sources
Alternative fuels and energy sources can disrupt the geopolitical balance of power and affect how businesses and the general public consume energy. For instance, in the aviation industry, energy sources such as bioenergy may offer an alternative to traditional fuels, with advances in energy storage favoring the growth of renewables on a global scale (Yilmaz & Atmanli, 2017). As a result, climate change associated with the use of renewables and sustainability agendas rolled out by various governments will have an impact on government and public attitudes. This is to say that with increased reliance on renewable sources of energy, customer demands for supplies from the aviation industry will shift.
Cybersecurity
The is an increasing threat of cybersecurity in the global sector, and this has grown to be an area of significant concern, more so in the aviation industry. A majority of cybercrimes have been carried out targeting the aviation industry. Hence, any advancements in the cybersecurity sector will automatically have an influence on the customer demand for supplies from the industry (Lehto, 2020). Besides, as skills advance, cybercrime remains a threat in the aviation industry, and so does it remain a key driver in the change in customer demands for supplies.
Extreme weather events
Extreme weather events such as wildfires, droughts, storms, extreme temperatures, and snowfalls have increased in both frequency and severity over the recent past. All these occurrences are a result of climate change being witnessed globally. Therefore, as a result, there is a high likelihood that these extreme weather occurrences will disrupt normal aviation activities by destroying infrastructure and interfering with communities. As a result, customer demands for supplies will automatically be influenced.
Level of integration along the air-industry supply chain
An integrated supply chain allows manufacturers to oversee their business processes across multiple suppliers and establish platforms onto which materials and people can be followed wherever they are. Emerging markets and economic growth patterns increase the need for natural resources to boost global prices in developing countries. As a result, it becomes difficult to provide a configuration of supply chain assets in the process. Therefore, uncertainty about what the supply chain will look like and whether it will handle increasing complexity and demand volatility remains a question.
New modes of consumption
Globally, consumers have always sought more excellent value from products and services. As a result, there has been a constant redefinition of their relationship with 'things.' The concept of access versus ownership has constantly experienced change with the growth and thriving of sharing models. Increased demand for authenticity and personalized experiences, sustainable consumption, and desire for face-to-face interactions have always been the new trends in the consumer consumption end.
Oil prices
Oil prices have been constantly subjected to variations over time, with the following costs in the market seemingly looking uncertain. The question of whether supply will outstrip demand in the future remains. Similarly, it has been established that persistently low oil prices may drive initial cost savings for transportation hence increasing individual consumer demands at the expense of the impacts it may pose to the global economy.
Strength and volatility of the global economy
Financial markets are constantly faced with instability and turbulence, which is predicted to persist in the coming future. These economic shifts are highly likely to influence international politics and governance, and as a result, inequality levels will be high. Besides, with an increase in the economic impact of developing nations, new markets, competitors and demands will change trade patterns influencing what goods are to be transported; hence, customer demand for supplies will also be affected.
The changing airline customer
Airlines need to comprehend how their customer consumer behavior changes and how it alters their retail and corporate sectors in response. Mainly, the aviation industry experiences a shift in customer demand for supplies in retail travel and sales channels.
Changes in retail travel
Customer retail behaviors vary based on geographical location. Still, the universal themes include the increasing use of online channels for search and booking, the use of multiple devices during the research and booking process, the growing popularity of social media to share first-hand experiences, and the increasing relevance of loyalty programs.
Increasing use of online channels for search and booking
In most mature aviation markets, customers typically search airlines, online travel agents, and metasearch websites before making their purchases online. Presently, it has been established that the online shop-to-buy ratio is more than 90 percent (Jeon et al., 2019). Although lower in some countries due to logistics such as internet penetration and issues with online payment security, this ratio is experiencing constant growth. In countries like China, consumers have a high online adoption rate of about 88% because of strong economic growth and broad Internet penetration. The US is a mature market economy with high internet penetration and online uptake; hence, 70 percent of its consumers research and finalize flight purchases online. The use of mobile technology for online booking and purchases ac...