Evolution trends of the network structure of Spring Airlines in China: A temporal and spatial analysis

Both the sustainable development of China's economy and the deregulation of the China air transport market have acted as a spur for the halting development of low-cost carriers (LCCs) in China. To analyze the development trends of LCCs' network in China, this paper took Spring Airlines, the only LCC in China as an example. First, the winter flight plans of Spring Airlines from 2005 to 2013 were collected. Secondly, the development trends of air transport network of Spring Airlines were explored with methods of mathematical statistics and social network analysis. Additionally, the development trends were analyzed from the levels of navigable cities, air routes and air transport networks. The results show that although Spring Airlines actively launched air routes between tourist cities with non-class I airports, its network has been transformed from a star structure into a complex one with multi-hubs. The development process of the Spring Airlines network can be separated into three stages. In addition, the problems and evolution trends of its network are discussed further.     

Research on China's Tourism: A 35‐Year Review and Authorship Analysis

This study reviewed 333 articles on China's tourism from 96 English‐language academic journals within and outside of tourism from 1978 to 2012. Tourism policy and impacts, and tourism industry development and promotion were the two predominant research themes. Tourism development, policy, ecological impacts, attractions and markets were the five most popular topics. On the basis of an authorship relationship analysis, three research networks were producing most of the China tourism research output in English. A majority of the authors were based in Mainland China, the USA and Hong Kong. Trends and gaps in the literature on China's tourism were identified. Copyright © 2013 John Wiley & Sons, Ltd.     

Rural tourism development in China

This paper provides an overview and brief evaluation of China's rural tourism. Beginning with the form of poverty alleviation through tourism, China's rural tourism has undergone over 20 years of development and exhibited some unique features in its development pattern, scale and business operational models in accordance with China's political, social and economic systems. Government plays a decisive role in developing rural tourism in China. However, rural tourism has been valued mainly as an economic means for rural development during the country's modernisation process. Overlooking rurality as an essential issue in rural tourism may lead development to a wrong direction, which could jeopardise the sustainability of the industry. Copyright © 2008 John Wiley & Sons, Ltd.     

Liberalization of China–US air transport market: Assessing the impacts of the 2004 and 2007 protocols

This paper examines China's considerations in reaching the 2004 and 2007 Air Service Agreement Protocols with the United States (US) and the impacts of such policy on the China–US market from the perspective of China. Analysis shows that the 2004 and 2007 protocols have profound impacts on the China–US market. The two protocols have been associated with phenomenal traffic growth and intensified competition. Passengers also benefit from much more choice in terms of both airlines and routing. Over time, Chinese carriers' operating performance and financial performance have gradually improved after the liberalization expressed in the protocols. However, the industry's hub-building initiatives are still seriously challenged by competing hubs in Seoul and Tokyo which have diverted substantial number of passengers moving between the China and US markets. Such issues have to be addressed in order to create a win–win outcome for both countries.     

Low-cost carrier entry at small European airports: Low-cost carrier effects on network connectivity and self-transfer potential

Airport connectivity can improve the competitiveness of regions by attracting tourism and inward investment. Regions traditionally accessed international destinations via connecting flights to national gateway airports usually operated by full service network carriers (FSNC). However, the entry of low-cost carriers (LCC) in these markets has led to changes in incumbent FSNC service provision. We analyse how intra-European connectivity has changed at small airports between 2002 and 2012 and how LCC entry has affected the quality of day-return schedules in these markets. Results show that offline LCC connectivity is greater than that scheduled by FSNCs. Furthermore, LCC entry had a negative effect on the quality of the connectivity offered by FSNCs. Interestingly, we also found that day-return itineraries become more difficult for passengers in markets where the LCC is the sole operator. Regional policy-makers may need to more carefully consider the connectivity implications in the design of LCC start-up incentive schemes.     

Potential Economic Contribution of Regional Tourism Development in China: A Comparative Analysis

The tourism industry in China has increased dramatically in recent years. Tourism development has been somewhat asymmetric with east coast provinces developing faster than others. This research compares and contrasts the potential economic contribution of tourism across China's provinces. Because of larger multiplier effects, the more economically developed provincial economies will experience greater economic benefits as a result of further increases in tourism. However, several inland provinces are also poised to benefit from increased tourism. Increases in visitor arrivals in these provinces have the potential to benefit both the tourism sectors and those sectors that demand and supply services to these industries. This is an attractive source of economic development in lesser developed provinces. Copyright © 2014 John Wiley & Sons, Ltd.     

Segmenting mainland Chinese residents based on experience,intention and desire to visit Hong Kong

The general consensus among marketers is that the People's Republic of China will have an enormous impact on the world's economy. However, much of this discussion is centred on China's strength as a centre of manufacturing and exports. The increase in affluence in pockets of China's 1.3 billion residents has also been the focus of firms interested in this large and virtually untapped consumer market. However, relatively little attention has been given to this market as potential sources of tourists. The purpose of this study was to profile the important visitor segments from mainland China who had previously visited, had the intention to visit or desired to visit Hong Kong—a destination traditionally priced and positioned for Western markets. Based on a sample of 470 Chinese from three cities in the mainland, the distinctive characteristics of tourists who had previously visited Hong Kong and who had strong intentions or interest to visit in the future were identified. It is hoped that this information will help tourism marketing professionals not only gain insights as to the potential of China as a source of visitors, but also highlight a useful approach to the market segmentation process. Copyright © 2006 John Wiley & Sons, Ltd.     

The effect of LCCs operations and scheduled services deregulation on air charter business in Japan

Recent aviation deregulation is producing structural changes within leisure industries in many parts of the world. This paper reviews the development of low cost carriers (LCCs) and assesses its effects on both of domestic and international charter markets in Japan since 2007. Furthermore, this paper analyzes the effect of scheduled services deregulation on international tourism to Japanese regional areas in relation to charter services. The results suggest that in the domestic market, LCC operations have seldom impacted charter traffic due to the differences in target markets and routes. In the international market, LCCs launched scheduled services to Japan but mainly on high demand routes. The deregulation of scheduled services led to a passenger shift from charters to newly scheduled flights and a concentration of tourist arrivals in regional centres. It also led to a decline in international tourist arrivals in some remote destinations. This paper indicates a current trend in which charter business is still an important sector in aviation and leisure markets.     

Wellness Tourism in China: Resources,Development and Marketing

China's natural and cultural resources are the foremost offerings of the country's wellness tourism sector. Although wellness tourism in China is in its infancy, it can offer new opportunities in, and strengthen the overall competitiveness of, China's tourism industry. To achieve this, the assessment and development of wellness tourism resources in China are required. This study examines the potential for wellness tourism development in terms of resources and promotion from the point of view of wellness tourism experts. It surveys professionals working in tourism, health and education in China. The results reveal that environmental assets, including fresh air, clean water and natural features, are considered the most important attributes for the development of wellness tourism in China and that the promotion of wellness tourism can best be achieved through advertising in mass media, governmental support and organizing new regional events. The study implications and future research directions are discussed. Copyright © 2012 John Wiley & Sons, Ltd.     

An Application of the Capability Maturity Model for Evaluating Attraction Websites in Mainland China

This paper extends the applicability of the Capability Maturity Model to attraction website evaluation. Based on input by 120 respondents from four groups, including tourists, tourism academics, attraction managers, and IT professionals in Mainland China, an attraction website maturity model (AWMM) with six key performance areas and 48 key criteria was developed. To validate the applicability of the model, the AWMM was used to evaluate 357 websites of 4A‐level attractions in Mainland China. Empirical findings revealed that the development of the China's attraction websites was at an infancy stage, while eCommerce in China has been adopted rapidly. Major improvements are required in relation to the interaction and commerce functions of these websites. Implications of the results of such improvements, as well as future research, are discussed. Copyright © 2013 John Wiley & Sons, Ltd.     

Modelling dependence between tourism demand and exchange rate using the copula-based GARCH model

This paper investigates dependence between tourism demand and exchange rate, using the case of China, and from a new perspective by using copula–GARCH models. The empirical results show that the volatility of exchange rate is not a determinant factor in fluctuation of China's inbound tourism demand from the countries being studied. Furthermore, only Russia exhibits risk-adverse behaviour with extreme SUR depreciation, or CNY appreciation associated with an extreme decline in arrivals. Third, introducing the tail dependence and dynamic dependence between growth rates of tourism demand and exchange rate add much to the explanatory ability of the model. The findings of this study have important implications for destination manager and travel agent as it helps to understand the impact of exchange rates on China inbound tourism demand and provide a complementary academic approach on evaluating the role of exchange rates in the international tourism demand model.     

Introducing connecting flights in LCCs' business model: Ryanair's network strategy

In light of the ‘hybridization’ process characterizing airlines' business models, this work contributes to the literature by analyzing the rationale underpinning the decision to introduce connecting flights into the typical point-to-point networks of low-cost carriers (LCCs). By referring to the network of the largest European LCC, Ryanair, we provide evidence on how its new inter-connecting strategy is influenced by market, supply, and leg characteristics. Applying a probit model, results suggest that Ryanair is offering connecting flights on both non-directly offered markets and on markets that it already serves directly. The likelihood to observe a connecting flight increases at higher level of legs' frequency and at lower levels of Ryanair's legs' market share. Eventually, this new connecting strategy is negatively correlated with market distance, routing factor, direct frequency, and Ryanair's current O&D market share.     

Red tourism: sustaining communist identity in a rapidly changing China

‘Red tourism’ is to exploit the historical heritage of the Chinese Communist Party for tourism development. Such tourism practice has been used by the nation state of China both to drive the country's economic growth and develop new patronage of the communist ideology among the young generation. From the broader context of China's economic and social changes since 1978 when the country started its open-door policy and economic reform, our paper attempts to examine ‘red tourism’ by analyzing how the nation state of China promotes the communist heritage through ‘red tourism’ in order to sustain the communist identity in a rapidly changing China. Research questions are raised to address the economic and social factors for the nation state involvement in ‘red tourism’: the specific roles of such involvement and the outcomes. Based on a case study, this paper presents how heritage is interpreted at a specific ‘red tourism’ site in order to portray a selective part of the communist heritage as a symbol of the Chinese nation. In so doing, ‘red tourism’ aims to serve the purpose of the nation state to sustain the communist identity in the continuing effort of developing a ‘socialist country of Chinese characteristics’.     

Are tourist arrivals stationary? Evidence from BRIC countries

In this study, we attempted to analyse whether the shocks to tourist arrivals in BRIC countries are temporary or permanent, by analysing the stationary characteristics of the data in panel framework. We found that, for Brazil, Russia and India, tourist arrivals are stationary process, whereas for China it is non-stationary process. This implies that shocks to the tourism sector in Brazil, Russia and India have only temporary effect, whereas the shocks to China's tourism sector have permanent effects.     

Which is a stronger competitor,High Speed Rail,or Low Cost Carrier,to Full Service Carrier? – Effects of HSR network extension and LCC entry on FSC's airfare in Japan

In Japan, High Speed Rail (HSR) extended its network in 2011 and 2015, and Low Cost Carriers (LCC) entered into the domestic airline market in 2012. We compared the effects of the extension of the HSR network and the entry of LCCs on the airfares of the incumbent Full Service Carriers (FSC). We conducted Difference in Differences analysis with passenger level data to evaluate these market changes, and found that the effects of the HSR extension on FSC's airfares were consistently negative and larger in the short haul markets, while the effects of the entry of LCCs were inconsistent. HSR seems to be a stronger competitor than LCC to FSC and this finding could be affected by capacity, which is large for HSR while small for the LCCs.     

The impact of low cost carriers on Korean Island tourism

Given the mixed findings of extant research on the impact of low-cost carriers (hereafter LCC) on aviation markets (with some studies showing stimulation of new demand, other studies showing LCCs encroaching on the turf of full-service carriers), the emergence of LCCs in Korea raised an interesting question as to whether or not they actually contribute to overall growth in domestic air traffic. The literature has paid limited attention to this issue so far. Employing a multivariate regression analysis with monthly data from 2000 to 2009, the impact of LCCs on tourism demand to a popular destination in Korea, Jeju Island, is examined, focusing on two specific questions: Have LCCs generated new tourism demand and brought more tourism revenue into the island’s economy? Have LCCs mitigated tourism seasonality on the island? Controlling for the effects of a number of factors, results showed that LCCs have generated new demand in addition to existing tourist flows to the island. Korean LCCs accounted for 35% of total passengers in 2009, which indicates an average growth rate of 161.7% over the last 4 years, compared to a −0.3% growth rate for all full-service carriers in Korea. However, LCCs seem to have had little impact on reducing seasonal fluctuations in passenger traffic to Jeju Island. The findings of this study will be of interest to researchers, policy makers, and a variety of stakeholders in the tourism industry interested in the relationship between no-frills airlines and island economies.     

Economic influences on air transport in Vietnam 2006–2019

Vietnam has emerged from a long and complex post-colonial experience as a fast-growing economy now embedded in the complex network of economic linkages in the Asia-Pacific region. Those linkages involve trade, foreign direct investment, and tourism. Their underlying geography is reflected in the geography of Vietnam's air transport linkages. An early set of air connections with ASEAN neighbours, especially Singapore and Malaysia, are still significant, though routes to South Korea and China are now more important. Within the country, the colonial structure of Hanoi as a political capital, and Saigon (now Ho Chi Minh City) as a trading city, provided the framework for domestic air transport linkages. Here too the geography has shifted to include a set of smaller cities, especially those with tourism activities. The Hanoi-Ho Chi Minh City corridor is still dominant, and now ranks as one of the busiest domestic routes within the Asia-Pacific. These outcomes confirm the effect of economic development on air transport in Vietnam.     

An empirical analysis of Canadian international air policy: effects of dual carrier designation and partial liberalization

This paper assesses the impact on air traffic of Canada's policy of allowing two Canadian flag carriers (dual-designation) to operate in select Canadian international markets. The secondary objective is to assess the effect of Canada's partially liberalized bilateral air services agreements. Using panel data covering Canada's 33 bilateral markets over the 1982–1994 period, we find the following results: (a) dual designation/operation of Canadian carriers in a country-pair market increases total traffic volumes in the market as well as increases the combined passenger volume and market share of Canadian carriers, and (b) Canada's partially liberalized bilateral air services agreements have significantly increased air traffic in those country-pair markets.Two policy implications follow from this research. First, Air Canada's recent merger with Canadian Airlines is expected to have a significant negative impact on total traffic volumes as well as on Canadian carrier traffic volumes and market shares on the country-pair markets both Air Canada and Canadian served previously. Second, not only the US style full liberal bilaterals or open skies, but also partial liberalization of bilateral markets Canada adopted appears to generate consumer welfare benefits.     

Post pandemic aviation market recovery: Experience and lessons from China

China was the first aviation market in the world hit hard by COVID-19 and has been recovering gradually as the pandemic became largely under control within mainland China. This study reviews the recovery pattern influenced by the Chinese government's aviation policy choices, in the hope that our discussions and findings will help improve aviation policy responses elsewhere. While the domestic market in mainland China has enjoyed a quick recovery to about 80% of the pre-crisis level by July 2020, the recovery of international services has been much slower, due to the bilateral route and flight frequency/capacity control and strict requirements for health check and quarantine. China's domestic aviation market was recovered by about 80% in two months after the pandemic became under good control. Most other countries with a “curve flattening” strategy, instead of full pandemic control, may not expect the fast recovery path China has achieved. A British “travel corridor” approach may be more practical for Western countries to follow, albeit more likely to be subject to serious setbacks and disruptions. The aviation fee reductions and cost support China and many other countries have been using are helpful by reducing airlines' marginal costs, but not sufficient for carriers to return to profitability or sustainable operations. Capital injection and/or credit guarantee may be needed for many airlines to survive. With various, often uncoordinated, regulations imposed in international markets, airlines based in open economies that have small domestic markets will face particularly serious challenges during the recovery process.     

The Northeast Asian air transport network: is there a possibility of creating Open Skies in the region?

Unlike in the US and the European Union aviation markets, the Northeast Asian markets are still very fragmented. As a result, the passenger and air freight collection/distribution systems in the region are very inefficiently organized. The primary reason for the inefficient and inconvenient air carrier networks in the region is the restrictive bilateral air services agreements between Asian countries. This paper documents the nature and extent of the restrictive bilateral agreements among China, Japan and Korea, evaluates several bilateral or trilateral approaches for liberalizing the regional air transport markets, and makes a proposal which would increase substantially the probability of achieving an Open Skies market in the region. In particular, the current approach to liberalize the bilateral air services agreements among China, Korea and Japan has limitations even in the medium term because of China's and, to a less extent, Japan's reluctance to remove price and capacity restrictions. Therefore, as an institutional solution we propose to create bi-national (for bilateral negotiations) or tri-national (for trilateral negotiations) ‘Trade and Transport Facilitation Committees’, that can pursue a practical avenue to tie air transport negotiations with those of other goods and services trade.