1 Introduction Anne Graham Andreas Papatheodorou Peter ForsythTransport is a fundamental component of tourism, providing the vital link between thetourist generating areas and destinations. Hence there are very close links between thetransport and tourism industries where a two-way relationship exists. On the one handgood accessibility, which is determined by the transport services provided, is essential forthe development of any tourist destination. Conversely for the transport industry, therecan be substantial benefits from tourism because of the additional demand which thistype of travel can produce. Aviation is an increasingly important mode of transport for tourism markets. Whilstgeography has meant that, in modern times, air travel has always been the dominant modefor long distance travel and much international tourism, moves towards deregulation, andin particular the emergence of the low cost carrier sector, have also increased aviation’ssignificance for short and medium haul tourism trips. Thus, developments in aviation arehaving very major implications for many leisure and business tourism markets. However, the characteristics and needs of leisure travellers are generally so very different frombusiness travellers that this necessitates a separate consideration of these markets if adetailed 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 consideraviation 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 thereis very little literature that gives a detailed appreciation of the complexities and potentialconflicts associated with the development of coherent and effective aviation and tourismpolicies. Therefore it is the aim of this book to fill this important gap which exists with acomprehensive, in-depth study of the relationship between aviation and leisure travel. This book is particularly timely because of recent developments in both the aviation andtourism world. The demand for leisure travel continues to grow in most world regions butis changing as tourists become more experienced, adventurous and demanding travellers.At the same time the general climate of deregulation is producing very significantstructural developments within the airline industry. The nature of network, charter andlow cost carriers, and the way that they each serve the leisure market is changing, as isthe distribution channels that are used. In addition, airports are becoming much more
Av i At i o n A n d t o u r i s mproactive and experienced in trying to attract leisure demand and in providing a level ofservice which is appealing to leisure travellers. The present edited volume deals exclusively with issues related to the synergies andconflicts in the relationship between aviation and leisure travel. The key underlyingtheme which is emphasised throughout the book is that it is essential for all to recognisethe two-way linkages which exist between the aviation and tourism industries and toensure that these are fully understood during any decision making process. The authorsof each chapter are each highly recognised authorities on the specific subject area that theyare considering. Moreover, the exact mix of the authors has been carefully chosen so as tocreate a balanced representation from both industry and academia and also from differentworld 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 aspectof the aviation and tourism relationship and provides a useful insight into some of the keychallenges which both industries face. Part I explores the nature of demand whilst Part IIlooks at government policy. Parts III and IV then focus on supply issues, related to bothairlines and airports. The focus of this first half of the book, therefore, is geared towardsdemand, supply and governmental trends that will shape the future of the aviation andtourism industries and the interface between them. Part V then considers broader industryimpacts, from economic, social and environmental viewpoints. This is followed by Part VIwhich offers a selection of case studies from different regions of the world which exploresthe complementary nature of the air transport and tourism products in these areas andinvestigates some of the key themes discussed in the previous chapters. Part VII providesthe conclusions. In detail, Part I contains three chapters and looks in depth at the nature of leisure traveldemand and assesses the implications of serving this demand for the aviation industry. Thisis important as clearly the aviation and tourism industries must understand their demandand recognise changing trends in order to fulfil their customers’ needs. Gang Li begins bydiscussing the nature of leisure travel demand in Chapter 2 principally from an economicperspective. He identifies key influencing factors of leisure travel demand and relates thisto the concept of demand elasticities. This is developed into a discussion of forecastingmethodologies which can be used to forecast leisure travel demand. This is followed byChapter 3 written by Anne Graham which explores recent trends and characteristics ofleisure demand with specific reference to travel by air. Global and regional patterns ofdemand are explored and distinctions made between mature and emerging markets. Thisleads onto a consideration of the changing demographic characteristics of leisure touristsand evolving travel preferences. Steven Shaw then builds on these two last two chaptersin his Chapter 4 by examining the implications of the specific nature of leisure traveldemand for airline marketing and by applying various marketing techniques, such as aPESTE analysis, to explore the current marketing practices within the airline industry forthis market segment. Part II, which also contains three chapters, focuses on regulation and government policyrelated to both industries and assesses the consequences of this for the development oftourism. The aviation and tourism sectors have mutual interests in supporting governmentpolicy which encourages the well being of both industries. Andreas Papatheodorou inChapter 5 identifies the role of the prevailing institutional economics regimes in theaviation industry and examines how the traditionally highly regulated environment hasbeen gradually liberalised. He studies the rationale and operating principles of aviation
chApter • introduction regulation as well as the advantages but also the potential dangers arising from marketliberalisation. Anastasia Vasiliadou then looks in more specific detail at the currentaviation legislation which is specifically relevant to leisure travel in her Chapter 6. Areascovered include safety, security, the Single European Sky and data protection. Reference isalso made to the legislation related to denied boarding, cancellation and delays. This leadsonto Chapter 7 by Peter Forsyth which explores aviation policy and associated tourismbenefits. It begins by reviewing aviation policy and its impact on tourism flows. This isfollowed by a discussion which identifies tourism benefits and highlights key issues relatedto 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 thispart being on airlines. Much of the emphasis is on the changing role of different typesof airlines which serve the leisure market. These changes have been primarily drivenby demand trends (as discussed in Part I) and developments towards a more liberalenvironment (as discussed in Part II). In particular, George Williams in Chapter 8 considerscharter operations. He investigates the main airlines and markets within Europe andthe relationship between the charter airlines and the tour operators. This leads onto adiscussion of the factors influencing charter operating and economic performance andthe consequences for the future. Then, Chapter 9 written by Sean Barrett describes theemergence 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 sectors role within theEuropean aviation leisure market, in relation to growth patterns and competition, andfurther elaborates on the impacts on charter airlines. The next Chapter 10 by John Zammitbuilds on the discussion in these two chapters (and Part II) in presenting a case study ofhow Air Malta has changed from a national airline to an EU leisure based carrier sinceMaltas accession to the European Union. Moreover, he explains how Malta’s evolutionis 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 asimportant but somewhat different orientation in that it examines how the airline industryhas utilised market power and scale economies to shape consumer demand and accessibilitylevels in both major leisure destinations and also in small and emerging destinations. Itinvestigates the use of vertical integration and vertical alliances within the aviation andtourism industries and concludes with a case study of the rapid growth of Dubai and itsclear links to the emerging market power of Emirates Airlines. The common topic for Part IV is airports and Nuno Brilha in Chapter 13 begins byidentifying the various types of customers at airports and assesses their differentrequirements. He then explores how an airport can maintain a safe and secure environmentwithout deterring tourists, how the right airport image and non-aeronautical facilities cancontribute to the leisure experience and how airports can best cope with the peaks andtroughs of leisure demand. The focus of Chapter 14 which follows by Rafael Echevarneis 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 financialincentives and airport design are discussed. Nigel Halpern and Jukka Niskala in the nextChapter 15 revisit the marketing theme and develop it further by considering the practicesused by airports in Europe’s northern periphery to exploit the potential for tourism and tocompete in destination markets. A case study from a remote region in Sweden is used toillustrate some of the key points made. Finally, the last Chapter 16 of this part by MariannaSigala focuses on airport ICT applications that are changing the way travellers are
Av i At i o n A n d t o u r i s mprocessed and are experiencing air travel. To begin, the key ICT applications are describedalong with their operational and customer benefits. This leads onto an assessment of theirimpacts on leisure travellers’ air travel experiences. Numerous examples of internationalICT initiatives and pilot programmes are also provided. There are two chapters in Part V which together explore the broader impacts of aviationand tourism development. The focus of this part is very important as undoubtedlydeveloping more sustainable tourism and travel products is one of the greatest challengeswhich face the aviation and tourism sectors. In Chapter 17, Brian Graham’s emphasis ison discussing the relationships between aviation, tourism and economic development. Hebegins by explaining why these relationships are complex and often contradictory. Thechapter then concentrates on the overlapping networks and interconnections betweenheritage and cultural tourism; accessibility, mobility and air services; and the culturaleconomy, air services and sustainability. The sustainability theme is further developed inChapter 18 written by Ben Daley, Dimitris Dimitriou and Callum Thomas. This looks atthe environmental impacts of both tourism and aviation and examines the pressures forgreater sustainability, which in part have been caused by increased consumer awareness.The main implications for tourism and air travel for leisure demand are discussed andvarious measures to mitigate aviation environmental impacts are explored. Part VI has a regional perspective and examines key issues and trends in aviationand tourism focusing on specific areas of the world. This concentrates on regions in lessdeveloped countries where aviation is playing a very significant role in the developmentof tourism. Each chapter considers the historical developments of the two industries inthe chosen region and identifies current trends. Major policy issues are then examinedwhich lead to a consideration of the way forward for aviation and tourism in each of thechosen 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 (PavlosArvantis 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 ofthese, 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 aviationindustry, the relationship between aviation policy and leisure tourism, the tyranny ofeconomies of density, the emergence of airports as tourism stakeholders, the importanceof constraints in aviation and tourism growth and the significance of innovation and itsimpacts. It then elaborates on unresolved issues such as future developments of airlinebusiness models, the importance of climate change and its implications, the need toresolve the trade-off between development and environmental protection and the roleof the emerging superpowers (namely India and China) in shaping the future of aviationand tourism. Having all the above in mind, the chapter closes with a positive note on thecontribution of this book into this fascinating area of research!