Industry Analysis & Industry Trends
As the recession reduced a slew of economic indicators, including disposable income, airlines felt demand from consumers and businesses slip away in 2008 and 2009. To reduce costs, many airlines cut expenditures on meal catering services, which already comprised a tiny portion of their budgets. Thus, the Airline Catering Services industry has faced lower demand and stagnant growth over the past five years, even as the economic recovery helped push the industry out of the doldrums. As air travel becomes more widespread and accessible to more consumers, the industry will experience moderate growth over the coming five years.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Airline Catering Services industry is in the mature stage of its life cycle. Between 2008 and 2018, the industry's value added (IVA), or its contribution to the economy, is projected to grow at an annualized rate of 0.9%. During the same period, US GDP is expected to increase at an average annual rate of 2.1%; thus, the industry's contribution to the overall economy is declining at a slow pace, a trend characteristic of a mature industry.
The industry depends on demand from the airline industry, which has generally faced difficult conditions over the past decade. This market has struggled with rising fuel prices, which have forced airlines to cut meals and other amenities on flights, hurting demand for industry services... purchase to read more