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Aviation and tourism_intro
1. 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
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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
3. chApter • introduction
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
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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!