Evolution of global airline strategic alliance and consolidation in the twenty-first century

Global airline strategic alliances have emerged since the late 1980s, and their number has slowly risen through the years. Will the number of such alliances continue to proliferate? Or will airlines consolidate with one another to form mega-carriers? In this paper, the likelihood of various airline consolidation and alliance development possibilities was examined based on a number of high-level trends and forces. The most probable near-term industry alliance and consolidation structure is described, accompanied with a probable path of evolution. These predictions have important implications for managers of strategic alliances, carriers who are currently in an alliance as well as carriers who are planning to join one.     

Orientation to sustainability and strategic positioning of destinations: an analysis of international tourism websites

The communication that Destination Management Organizations (DMOs) address to destination stakeholders plays a central role in attracting attention and resources for sustainable destination development and disclosing the efforts made to be a sustainable territory. There has been extensive analysis on the role of official tourism websites that addresses both DMO's internal and external stakeholders. However, less exploration is available on the relationship between the contents disclosed through tourism websites and the strategic positioning of the destination. This study empirically examines that link with a focus on ‘green/sustainable/responsible' travel. Results show a positive association between the orientation to sustainability in online communication and both sustainable regulation of the tourism sector and tourism development. In contrast, there is no significant association with destination size, tourism maturity and pricing policies.     

The dynamics of airline alliances

This paper explains the dynamics of airline alliances. Using a system dynamic approach we shall first describe the driving forces behind the formation of alliances before going on to examine the inherent stability of alliances, both internally and externally. Understanding the dynamics of alliances can be useful in two ways. Outwardly, it can help in the thinking up of future scenarios which is something that is especially important to airlines that are looking for an appropriate alliance group but also for established groups looking for new members. Inwardly, such understanding is crucial as far as existing members of alliance groups are concerned when it comes to managing the alliance and achieving better performance.     

Code-share connectivity within global airline alliances – How much potential is utilized?

This paper analyzes the code-share connectivity of carriers from the three global alliances: Star Alliance, Sky Team and oneworld. We generate 2-leg online and code-share connections to evaluate the existing connectivity. Additionally, we generate all potential interline connections between members of the same alliance that are not yet supported with existing code-shares and analyze what share of the potential connectivity remains unused. We find that code-share connections account to about one-fourth of the total number of international connections offered by alliance members. 73% of those code-share connections are with partners from the same alliance, 6% with carriers from competing alliances and the rest with other carriers, which means that airlines seek partnerships not only within their own global alliance but even with members of competing alliances. At the same time, over 25% of the total potential code-share connections between members of the same alliance remain unused. This connectivity potential is better utilized within the network of Sky Team and oneworld than within Star Alliance. American and European carriers show a higher degree of code-share partnership with their alliance partners than Asian carriers. Overall, code-share partnerships are strongly driven by strategic decisions on bilateral airline level. Many airline-pairs fully utilize their connectivity potential (almost half of the total existing code-share connections) but some cooperate only on selected routes or not at all. Over one-third of the remaining code-share connectivity potential within alliances is attributed to airline-pairs that don't partner at all.     

Cruise travel motivations and repeat cruising behaviour: impact of relationship investment

Passenger retention is undoubtedly one of the major challenges for cruise lines. Given that little is known about passengers’ post-purchase behaviour in the luxury cruise sector, this study addressed this omission by empirically verifying the imperative role of motivations, values, image, desire, and relationship investment in generating repeat cruising intentions. The proposed conceptual framework comprising these triggers was in general supported. In addition, its prediction ability for repurchase decision was sufficient. Specifically, our empirical findings demonstrated the adequacy of the higher order structure of cruise travel motivations that considerably increase hedonic and utilitarian values. Our results further identified the comparative importance of overall company image in determining intention. The mediating role of the study variables was also found. Lastly, the results of the metric-invariance model assessment revealed that relationship investment significantly moderated the value–image–desire linkages. Implications for tourism academics and cruise practitioners and future research directions are discussed.     

Lao Tourism and Poverty Alleviation: Community-Based Tourism and the Private Sector

Tourism as a tool for development was first mooted in the 1970s. Recently, focus has been on the role of ecotourism, pro-poor tourism and community-based tourism (CBT). This has been so in Lao People's Democratic Republic, where international tourism is a vital source of foreign exchange and employment and an important feature of the government's poverty-alleviation strategy. The Asian Development Bank (ADB) finances many infrastructural projects facilitating tourist movement in the Lower Mekong Basin, and with the Lao Government and the Netherlands Development Agency (SNV) is a key player in donor-assisted, community-based tourism (DACBT). The development of DACBT in Lao PDR is discussed in some detail, especially the Nam Ha Ecotourism Project, and is compared briefly with the role of the private sector in tourism development in Southern Lao PDR. It is concluded that while DACBT projects can indeed alleviate poverty and develop financial and cultural capital, private sector tourism enterprises also have an important role in poverty alleviation, and it should not be assumed that DACBT is the only – or necessarily the most efficient – form of pro-poor tourism.     

Tourism gateways and regional economies: the distributional impacts of MICE

The meetings, incentives, conventions and exhibitions (MICE) industry is a rapidly expanding sector of tourism world-wide, but particularly in the Asia Pacific region. Of the many challenges underlying development of this sector none is more important than determining the economic benefits from devoting resources to industry growth. The paper argues that although research has been undertaken on the economic impacts of MICE events and MICE destinations, regionally and nationally, the issue of the distribution of these benefits between tourism gateways and more remote regions has been neglected. The paper seeks to help remedy this neglect. It presents a framework for assessing the economic impacts of the MICE industry in a regional economy. It then illustrates how the framework can be used to compare economic impacts of MICE tourism in destination gateways and more remote areas, with the use of Australian data. The paper draws attention to the types of data deficiencies that seem to be endemic to estimating the economic impacts of MICE, and which constitute a barrier to informed public policy making and planning. Finally, the implications are discussed for development of MICE tourism generally. Copyright © 1999 John Wiley & Sons, Ltd.     

Towards an understanding of international city break travel

This paper explores city break tourism and, in particular, the distinctive characteristics of this form of travel. The city break is examined and compared with other types of trips. The research follows a sequential mixed methods approach involving both a visitor survey and in‐depth interviews. The findings show the international city break trip to have a number of distinctive characteristics. These are summarised into five main areas (5 Ds) — duration, distance, date flexibility, discretionary nature and destination travel party. These distinguishing features provide a useful insight into one of the most important yet least examined travel segments in tourism research. Copyright © 2009 John Wiley & Sons, Ltd.     

Strategic alliances between airlines and airports—theoretical assessment and practical evidence

Strategic alliances are now widespread. This paper shifts the focus from alliances among airlines toward strategic alliances involving passenger airlines and airports. Following a conceptual path analyzing motives, potential benefits and problems, potential fields of cooperation are identified along with three basic classes of airline–airport alliances. Capacity-based, marketing-based, and security based cooperation models are assessed with regard to benefits for the participating airline and airport partners. This expands the existing literature that has largely neglected the airline–airport relationship and its potential for developing their respective competitive strategies. The case of the alliance between Lufthansa and Munich airport serves as an illustration.     

Models of crisis management: an evaluation of their value for strategic planning in the international travel industry

Tourism is particularly prone to external shocks, which by their nature are unpredictable and need to be addressed through effective crisis management processes. The paper reviews the literature relating to crisis management in tourism and identifies and briefly critiques several models that have been developed to help managers in their strategic planning for such contingencies. The terrorist attacks of ‘9/11’ are used as an exemplar of the type of external shock that can lead to crisis if travel industry managers fail to take immediate and decisive action. This paper discusses the reactions of leading UK based tour operators to the terrorist attacks and a case study is presented to examine the reaction of a particular company to ‘9/11’ and to review the ‘turnaround’ strategies used. The crisis management process model is compared and contrasted with the steps actually undertaken at the company. It is evident that there are wider lessons for the travel industry including the need to: integrate crisis management with strategic planning processes, prepare detailed contingency plans, define decisional roles and responsibilities, and to retain a degree of flexibility. Copyright © 2005 John Wiley & Sons, Ltd.     

Equestrian tourism: animal agency observed

There is limited scholarship engaging with equestrian tourism even though this segment of the tourism industry has recently undergone phenomenal growth in both supply and demand. This article will focus on the core element of equestrian tourism, travel on horseback, and will explore the role of equine animal agency in the co-creation of tourism experiences and tourism places. Employing qualitative methods, it will demonstrate how horses assert themselves as subjective agents and active players in the communities that tour groups form, assuming a variety of roles that effect their riders' self-actualization and psychological enrichment. At the same time, they assume an active role in determining their own fate by contributing to a climate of animal ethics specific to equestrian tourism. A predominantly female clientele looks to their equine partners for companionship and inspiration and reciprocates by demanding high standards of animal welfare and horsemanship. On the supply side, equestrian ground operators have established themselves as lifestyle entrepreneurs who place their own and their guests' passion for horses and lifestyle values ahead of business savvy and economic efficiency.     

Alliance or acquisition? Strategies for growth in the container shipping industry,the case of CP ships

The global shipping industry is undergoing a transformation through the establishment of strategic alliances involving nearly all the major carriers. The near universality of the phenomenon would lead one to believe that being part of a global alliance is the only means of survival today. The case of CP Ships, the maritime arm of Canadian Pacific, provides a radically different model. CP Ships began as a small market player, but through direct acquisition has grown in size to be comparable with many of the large global carriers. It has remained focused as a niche player, venturing to confront the mainline carriers only peripherally. This paper explores the bases for CP Ship's success, highlighting the fact that alliances need not be the only path to survival in a global industry.     

The effect of code-sharing alliance formations and terminations on firm value: The role of co-specialization and scope extension

This paper examines how alliance co-specialization and scope extension affect firm value at the time of alliance formation and termination, and whether value creation upon alliance formation also explains value creation upon termination. Building on the relational view of the firm, we develop predictions that are tested using event study methodology and data on code-sharing alliances formed, extended, and terminated between 1994 and 2008. The findings suggest that from a stock market perspective alliance formation and termination can be seen as two interrelated events and that it is difficult to reverse initial valuations past the alliance formation phase. They also suggest that the stock market reacts to alliance formation more critically than to post-formation decisions such as alliance scope extensions and terminations.     

Tourism in Trinidad and Tobago: carving a niche in a petroleum‐based economy

Trinidad and Tobago lies within one of the world's most tourism‐intensive regions, the Caribbean. Yet, unlike its neighbours, it has not relied heavily on income from travel and tourism since its economy is dominated by the energy sector. The energy sector is the mainstay of the economy contributing approximately 34.1% to the country's GDP, 85.5% to merchandise exports and 37.1% to Government revenues in 2004 (Ministry of Energy, 2006). The Government, in its aim for developed nation status by 2020, recognizes that the energy sector is unable to provide the sustainable jobs needed to achieve this. Thus, the Government's policy strategy, Vision 2020, identifies tourism as one of five (5) sectors that should be developed to contribute to the country's economic development. The tourism industry currently represents 13.8% of total Gross Domestic Product (GDP) in Trinidad and Tobago and is expected to increase its share by nearly three percentage points to 16.5% by 2015. It accounts for 16.7% of total employment, and this is forecasted to rise to 19.2% (WTTC, 2005). Several challenges are evident, that continue to limit the industry's full potential for growth in the country. It is against this background that this paper seeks to identify and analyse the strategies that can be adopted to maximize the contribution of the hospitality and tourism industry to economic development in Trinidad and Tobago. The three main strategies proposed are a greater focus on local entrepreneurship; the re‐orientation of the role of the local financial mechanisms in tourism development and; the development of competitive tourism investment incentives for potential investors in the hospitality and tourism industry. Copyright © 2008 John Wiley & Sons, Ltd.     

Profiling the segments of senior tourists throughout motivation and travel characteristics

Interest in tourism market segmentation of seniors has been increasing in recent years as the tourism industry has begun to be aware of their importance for the sector. This is a very heterogeneous group, with greater purchasing power and lifestyle-oriented entertainment and enjoyment of leisure time by performing travel than previous generations. This study strives to contribute towards the hitherto scarce research on segmentation in senior tourism. Specifically, this work aims to determine the existence of various profiles of senior tourism by means of using socio-demographic variables, motivation and characteristics of travel of seniors. For this, two complementary analysis techniques, the nonlinear canonical correlation (OVERALS) and a two-stage cluster analysis, were used. Five market segments were identified according to the behavioural variables analysed that allow marketers to target this group in the most convenient manner and to exploit new market opportunities.     

Travel guidebooks and the construction of tourist identity

Tourist identity is an important component of the postmodern identity. This review paper unveils the role of travel guidebooks as identity construction agents at a time when tourism has become an important postmodern phenomenon. The review offers a processual look at roles played by guidebooks in tourist information gathering and formation of cultural tastes and preferences, and portrays the influence of guidebooks on social change. The review points especially to the lack of a broad theoretical perspective in the research of the role of guidebooks in tourist identity formation as well as tourist motivation and consumer behaviour formation. Consequently, the paper suggests that future studies of tourist identity should adopt a socio-historical and cultural interdisciplinary approach focusing on travel guidebooks, using both quantitative and qualitative methodologies. Based on this proposed framework, the article suggests several further research directions for the study of social construction of tourist identity within a spatio-temporal context.     

Travelling to the Ancestral Homelands: The Aspirations and Experiences of a UK Caribbean Community

This paper is based on an ethnographic study of the Caribbean community of Moss Side, Manchester (UK). Its aim is to reveal, interpret and analyse the personal meanings which members of the community attach to visiting the ancestral homeland in the Caribbean. This form of travel is defined in terms of 'ethnic reunion', which involves travelling for the purpose of visiting friends and relatives and/or searching for one's cultural roots. The study, which is based on an interpretive analysis of a range of ethnographic material, initially examines the reasons why first- and second-generation Caribbeans wish to participate in the 'homeland experience', and then illustrates ways in which they reconstruct an identity of themselves through their travel perceptions and experiences. The latter part of the paper discusses how people's travel encounters serve to illustrate how ethnic differences and boundaries between groups are constructed and/or reconstructed. It is argued that established perspectives of tourism motivation and behaviour do not fully account for the role of ethnicity as a significant variable in influencing specific forms of travel. The conclusion asserts that ethnic reunion should be conceptually viewed as a distinct form of 'travel', socioculturally dissimilar to conventional forms of 'tourism'.     

A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry

Owing to the cut throat competition and economic uncertainty in the market, airlines are focusing on strategic alliances for satisfying customer needs, especially in the current time which is dominated by global integration, demanding customer and fast changing technologies. This strategy is widely adopted by airlines. However, the selection of strategic alliance partner is a very decisive decision, and this selection process engrosses a number of complex processes which is result of compound reflection of associated various factors. In addition, the decision makers may be inconsistent in their views and preferences, arising due to imperfect information or intrinsic conflict between various departments. This paper presents a model based approach of an analytic hierarchy process (AHP) for evaluation of criteria and fuzzy technique for order performance by similarity to ideal solution (FTOPSIS) for the selection of strategic alliance partner. A case of Indian airline industry demonstrates the application of the proposed approach. Eventually, robustness of the model is demonstrated by sensitivity analysis.     

Multimarket contact, alliance membership, and prices in international airline markets

This paper tests the mutual forbearance view in the context of airline alliances in the international air travel market. Using passenger booking and airfare data on transpacific routes, we find consistent evidence for the positive association between multimarket contact and airfares. Our results also suggest that multimarket contact between non-aligned airlines is associated with higher airfares, whereas multimarket contact between airlines in the same alliance has no additional upward impact on airfares. Moreover, it is shown that higher airfares tend to exist when airlines have greater multimarket contact on open-skies routes. In restrictive (non-liberal) international markets, however, multimarket contact may not affect airfare.     

The Singapore Gold Circle: Perceptions of local customers of travel agencies

The Singapore Tourism Board has created an ambitious service quality programme, the Singapore Gold Circle (SGC), for the local tourism industry. To date, the Board has made the programme available to the retail, travel agent and tour operator, and spa sectors. This study looks at the SGC to determine, from a travel consumer perspective and with a focus on the travel agency sector, the value and effectiveness of the programme. In addition to the value of the findings to the local tourism community, if successful, such a programme may serve as a blueprint for other national tourism organisations or regional associations seeking to raise the quality of their product. Copyright © 2002 John Wiley & Sons, Ltd.