Question

What impact will the reduction of the number of flights to the Barcena’s island likely have on the previous demand forecasts that have been created by the resort’s revenue management team?

Answer 1

Reduction in the number of flights will have the direct and negative impact upon the demand forecast as less number of people will visit the resort due to the non-availability of the flight. It will cause the demand forecast to be readjusted. Besides, the tourists will opt to go for the other tourism destinations. It will cause the financial losses to the resort. Though, there is a possibility that some tourism can opt for the alternative routes or private chartered planes to visit the resort. It can mitigate the losses, but demand forecast will suffer due to the less number of flights available to the Barcena’s Island.