Aviation and Tourism

Anne Graham, Andreas Papatheodorou, Peter Forsyth, Anne Graham, Andreas Papatheodorou, Peter Forsyth

• Publisher: Routledge
• Year: 2016
• ISBN:
  9781317176763
• Edition: 1
• Topic: Business
• Subtopic: Transportation Industry
• Index: Business

Transport is an essential element of tourism, providing the vital link between the tourist generating areas and destinations. Good accessibility, which is determined by the transport services provided, is a fundamental condition for the development of any tourist destination. Moreover the transport industry can be a major beneficiary of tourism because of the additional passenger demand that may be generated. Aviation is an increasingly important mode of transport for tourism markets. Whilst geography has meant that, in modern times, air travel has always been the dominant mode for long distance travel and much international tourism, moves towards deregulation, and in particular the emergence of the low cost carrier sector, have also increased aviation's significance for short and medium haul tourism trips. Thus developments in aviation can have very major implications for many leisure and business tourism markets. However the characteristics and needs of leisure travellers are generally so very different from business travellers that this necessitates a separate consideration of these markets if a detailed understanding of the relationship with aviation is to be gained. In spite of the obvious closeness between the aviation and tourism industries, there are very few specialist texts on this subject. Most tourism focused books consider aviation as just one component of the tourism industry which needs to be discussed, whereas aviation specialist texts rarely concentrate on just leisure travel. In addition there is very little literature that gives a detailed appreciation of the complexities and potential conflicts associated with the development of coherent and effective aviation and tourism policies. Therefore it is the aim of this book to fill this important gap which exists with a comprehensive, in-depth study of the relationship between aviation and leisure travel. The book deals exclusively with issues related to the relationship between aviation and leisure travel. It does this with an analysis of the theoretical concepts relevant to the subject area combined with a detailed investigation of current practice within the aviation and tourism industries. Each chapter is illustrated with case study material that will reinforce the understanding of the issues that are being examined.

1
Introduction

Anne Graham
Andreas Papatheodorou
Peter Forsyth

Transport is a fundamental component of tourism, providing the vital link between the tourist generating areas and destinations. Hence there are very close links between the transport and tourism industries where a two-way relationship exists. On the one hand good accessibility, which is determined by the transport services provided, is essential for the development of any tourist destination. Conversely for the transport industry, there can be substantial benefits from tourism because of the additional demand which this type of travel can produce.

Aviation is an increasingly important mode of transport for tourism markets. Whilst geography has meant that, in modern times, air travel has always been the dominant mode for long distance travel and much international tourism, moves towards deregulation, and in particular the emergence of the low cost carrier sector, have also increased aviation’s significance for short and medium haul tourism trips. Thus, developments in aviation are having very major implications for many leisure and business tourism markets. However, the characteristics and needs of leisure travellers are generally so very different from business travellers that this necessitates a separate consideration of these markets if a detailed understanding of the relationship with aviation is to be gained.

In spite of the obvious closeness between the aviation and the leisure tourism industries, there are very few specialist texts on this subject. Most tourism focused books consider aviation as just one component of the tourism industry which needs to be discussed, whereas aviation specialist texts rarely concentrate on just leisure travel. In addition there is very little literature that gives a detailed appreciation of the complexities and potential conflicts associated with the development of coherent and effective aviation and tourism policies. Therefore it is the aim of this book to fill this important gap which exists with a comprehensive, in-depth study of the relationship between aviation and leisure travel.

This book is particularly timely because of recent developments in both the aviation and tourism world. The demand for leisure travel continues to grow in most world regions but is changing as tourists become more experienced, adventurous and demanding travellers. At the same time the general climate of deregulation is producing very significant structural developments within the airline industry. The nature of network, charter and low cost carriers, and the way that they each serve the leisure market is changing, as is the distribution channels that are used. In addition, airports are becoming much more proactive and experienced in trying to attract leisure demand and in providing a level of service which is appealing to leisure travellers.

The present edited volume deals exclusively with issues related to the synergies and conflicts in the relationship between aviation and leisure travel. The key underlying theme which is emphasised throughout the book is that it is essential for all to recognise the two-way linkages which exist between the aviation and tourism industries and to ensure that these are fully understood during any decision making process. The authors of each chapter are each highly recognised authorities on the specific subject area that they are considering. Moreover, the exact mix of the authors has been carefully chosen so as to create a balanced representation from both industry and academia and also from different world regions. The end result is that a wide range of different topics related to the aviation-tourism interface have been examined from a mixture of different viewpoints.

The book is divided into seven parts. Each part covers a different and important aspect of the aviation and tourism relationship and provides a useful insight into some of the key challenges which both industries face. Part I explores the nature of demand whilst Part II looks at government policy. Parts III and IV then focus on supply issues, related to both airlines and airports. The focus of this first half of the book, therefore, is geared towards demand, supply and governmental trends that will shape the future of the aviation and tourism industries and the interface between them. Part V then considers broader industry impacts, from economic, social and environmental viewpoints. This is followed by Part VI which offers a selection of case studies from different regions of the world which explores the complementary nature of the air transport and tourism products in these areas and investigates some of the key themes discussed in the previous chapters. Part VII provides the conclusions.

In detail, Part I contains three chapters and looks in depth at the nature of leisure travel demand and assesses the implications of serving this demand for the aviation industry. This is important as clearly the aviation and tourism industries must understand their demand and recognise changing trends in order to fulfil their customers’ needs. Gang Li begins by discussing the nature of leisure travel demand in Chapter 2 principally from an economic perspective. He identifies key influencing factors of leisure travel demand and relates this to the concept of demand elasticities. This is developed into a discussion of forecasting methodologies which can be used to forecast leisure travel demand. This is followed by Chapter 3 written by Anne Graham which explores recent trends and characteristics of leisure demand with specific reference to travel by air. Global and regional patterns of demand are explored and distinctions made between mature and emerging markets. This leads onto a consideration of the changing demographic characteristics of leisure tourists and evolving travel preferences. Steven Shaw then builds on these two last two chapters in his Chapter 4 by examining the implications of the specific nature of leisure travel demand for airline marketing and by applying various marketing techniques, such as a PESTE analysis, to explore the current marketing practices within the airline industry for this market segment.

Part II, which also contains three chapters, focuses on regulation and government policy related to both industries and assesses the consequences of this for the development of tourism. The aviation and tourism sectors have mutual interests in supporting government policy which encourages the well being of both industries. Andreas Papatheodorou in Chapter 5 identifies the role of the prevailing institutional economics regimes in the aviation industry and examines how the traditionally highly regulated environment has been gradually liberalised. He studies the rationale and operating principles of aviation regulation as well as the advantages but also the potential dangers arising from market liberalisation. Anastasia Vasiliadou then looks in more specific detail at the current aviation legislation which is specifically relevant to leisure travel in her Chapter 6. Areas covered include safety, security, the Single European Sky and data protection. Reference is also made to the legislation related to denied boarding, cancellation and delays. This leads onto Chapter 7 by Peter Forsyth which explores aviation policy and associated tourism benefits. It begins by reviewing aviation policy and its impact on tourism flows. This is followed by a discussion which identifies tourism benefits and highlights key issues related to their measurement. Then these two sections are brought together by assessing aviation-tourism trade-offs with the aid of a number of examples from around the world.

Part III, is the first of two parts which consider supply issues, with the focus in this part being on airlines. Much of the emphasis is on the changing role of different types of airlines which serve the leisure market. These changes have been primarily driven by demand trends (as discussed in Part I) and developments towards a more liberal environment (as discussed in Part II). In particular, George Williams in Chapter 8 considers charter operations. He investigates the main airlines and markets within Europe and the relationship between the charter airlines and the tour operators. This leads onto a discussion of the factors influencing charter operating and economic performance and the consequences for the future. Then, Chapter 9 written by Sean Barrett describes the emergence of the low cost carrier sector. He examines the cost savings, product features, and benefits of low cost airlines. He also explores the low cost sector’s role within the European aviation leisure market, in relation to growth patterns and competition, and further elaborates on the impacts on charter airlines. The next Chapter 10 by John Zammit builds on the discussion in these two chapters (and Part II) in presenting a case study of how Air Malta has changed from a national airline to an EU leisure based carrier since Malta’s accession to the European Union. Moreover, he explains how Malta’s evolution is intricately intertwined with the development of Malta’s tourism and travel industry. The final Chapter in this part by Keith Debbage and Khaula Alkaabi has an equally as important but somewhat different orientation in that it examines how the airline industry has utilised market power and scale economies to shape consumer demand and accessibility levels in both major leisure destinations and also in small and emerging destinations. It investigates the use of vertical integration and vertical alliances within the aviation and tourism industries and concludes with a case study of the rapid growth of Dubai and its clear links to the emerging market power of Emirates Airlines.

The common topic for Part IV is airports and Nuno Brilha in Chapter 13 begins by identifying the various types of customers at airports and assesses their different requirements. He then explores how an airport can maintain a safe and secure environment without deterring tourists, how the right airport image and non-aeronautical facilities can contribute to the leisure experience and how airports can best cope with the peaks and troughs of leisure demand. The focus of Chapter 14 which follows by Rafael Echevarne is on the emergence of airport marketing which is set within the context of deregulation, low cost carriers and competition. The needs of low costs carriers in terms of financial incentives and airport design are discussed. Nigel Halpern and Jukka Niskala in the next Chapter 15 revisit the marketing theme and develop it further by considering the practices used by airports in Europe’s northern periphery to exploit the potential for tourism and to compete in destination markets. A case study from a remote region in Sweden is used to illustrate some of the key points made. Finally, the last Chapter 16 of this part by Marianna Sigala focuses on airport ICT applications that are changing the way travellers are processed and are experiencing air travel. To begin, the key ICT applications are described along with their operational and customer benefits. This leads onto an assessment of their impacts on leisure travellers’ air travel experiences. Numerous examples of international ICT initiatives and pilot programmes are also provided.

There are two chapters in Part V which together explore the broader impacts of aviation and tourism development. The focus of this part is very important as undoubtedly developing more sustainable tourism and travel products is one of the greatest challenges which face the aviation and tourism sectors. In Chapter 17, Brian Graham’s emphasis is on discussing the relationships between aviation, tourism and economic development. He begins by explaining why these relationships are complex and often contradictory. The chapter then concentrates on the overlapping networks and interconnections between heritage and cultural tourism; accessibility, mobility and air services; and the cultural economy, air services and sustainability. The sustainability theme is further developed in Chapter 18 written by Ben Daley, Dimitris Dimitriou and Callum Thomas. This looks at the environmental impacts of both tourism and aviation and examines the pressures for greater sustainability, which in part have been caused by increased consumer awareness. The main implications for tourism and air travel for leisure demand are discussed and various measures to mitigate aviation environmental impacts are explored.

Part VI has a regional perspective and examines key issues and trends in aviation and tourism focusing on specific areas of the world. This concentrates on regions in less developed countries where aviation is playing a very significant role in the development of tourism. Each chapter considers the historical developments of the two industries in the chosen region and identifies current trends. Major policy issues are then examined which lead to a consideration of the way forward for aviation and tourism in each of the chosen regions. There are seven destination case study chapters. These are Chapter 19: Brazil (Respicio Espirito Santo Jr), Chapter 20: India (John O’Connell), Chapter 21: China (Zheng Lei), Chapter 22: The Middle East (John O’Connell), Chapter 23: Africa (Pavlos Arvantis and Petros Zenelis), Chapter 24: Mauritius (Neelu Seetaram) and Chapter 25: South Pacific (Semisi Taumoepeau).

Finally, the last Part VII contains Chapter 26 where the editors present the conclusions. This reflects upon the main themes identified in the book, explores the implications of these, and discusses unresolved issues and further directions for the future. In particular, the chapter refers to a number of themes such as the changing nature of the aviation industry, the relationship between aviation policy and leisure tourism, the tyranny of economies of density, the emergence of airports as tourism stakeholders, the importance of constraints in aviation and tourism growth and the significance of innovation and its impacts. It then elaborates on unresolved issues such as future developments of airline business models, the importance of climate change and its implications, the need to resolve the trade-off between development and environmental protection and the role of the emerging superpowers (namely India and China) in shaping the future of aviation and tourism. Having all the above in mind, the chapter closes with a positive note on the contribution of this book into this fascinating area of research!

PART I

Leisure Travel Demand

2
The Nature of Leisure Travel Demand

Gang Li

INTRODUCTION

The first section of this book considers leisure travel demand. A knowledge and understanding of such demand is crucial if the links between the aviation and tourism industries are to be fully appreciated. This initial chapter considers the nature of demand and the factors affecting it; whilst the next chapter explores demand trends and characteristics. The remaining chapter in this section then examines the implications of this specific nature of leisure travel demand for airline marketing.

This chapter aims to provide an overview of the nature of the leisure travel demand, principally from the economic perspective. It starts with defining what leisure travel demand means in economics, followed by discussions of key influencing factors of the demand for leisure travel and air transport with a particular focus on various economic determinants. Subsequently, the concept of demand elasticities is illustrated in the context of leisure travel and air transport, with particular attention paid to air fare elasticities. Finally, some methods of forecasting leisure travel demand are illustrated using empirical examples.

In general, a travel product involves a complex consumptive experience that results from a process where tourists use multiple travel services, including accommodation, food service, transportation, travel agencies and tour operators, recreation and entertainment, and other travel trade services, during the course of their visit (Gunn 1988). Leisure is associated with the discretionary time, i.e., ‘the time remaining after working, commuting, sleeping and doing necessary household and personal chores which can be used in a chosen way’ (Tribe 1995: 3). Thus leisure travel can be understood as a...

Table of contents

• Cover Page
• Half Title page
• Title Page
• Copyright Page
• Contents
• List of Acronyms
• List of Figures
• List of Maps
• List of Tables
• List of Editors
• List of Contributors
• Preface
• Acknowledgements
• 1 Introduction
• Part I Leisure Travel Demand
• Part II Regulation and Government Policy
• Part III Airline Issues
• Part IV Implications for Airports
• Part V Economic and Environmental Impacts
• Part VI Destination Case Studies
• Part VII Conclusions
• Bibliography
• Glossary
• Name Index
• Subject Index