This may also force airlines to match the deals of their competitors. They also earn ancillary revenues from transporting mail, shipping freight, selling in -flight services, and from serving alcoholic beverages. The commercial airline industry concentrates its efforts on attracting the business traveler segment because its the primary money maker for airline companies. Business travelers generate higher margins because they typically book flights that are paid by the companies that send employees to different locations. Therefore, business travelers have a tendency to be price inelastic with regards to air fares.
Airlines offer special deals to the business traveler.
In contrast, the leisure traveler is highly price conscious. The leisure traveller usually goes out of the way to save money by using the internet, discounted air fares, and other methods to save money. Classifications Airlines are classified according to their size of operation. Major airlines encompass the most common types that travelers use because they have the greatest geographical reach. To be considered a major airline, an airline must have at least 1 billion dollars in revenue.