When lightning strikes twice: The tragedy-induced demise and attempted corporate resuscitation of Malaysia airlines

In 2014, Malaysia Airlines experienced two tragedies in quick succession, damaging the company's reputation and finances, with negative implications for Malaysian tourism. This research assesses the impact of this. We find that the share price response was immediate and substantive. The carrier implemented sweeping adjustments, while passenger traffic rapidly declined particularly in Asian markets. Malaysian Airlines augmented fare reduction after each accident to stem the ongoing leakage of passengers. Traffic from China witnessed sharp declines, signalling the severity of the incumbents' prognosis. We further examine the investor response and the ultimate government decision to nationalise and restructure.     

Review of studies on airline website evaluation

The continuous growth of electronic (e) commerce prompted businesses to manage effective websites to attract customers and retain loyalty. Website evaluation has been extensively researched, but a comprehensive and globally accepted model is yet to be established in the tourism and hospitality industry. This review of studies on airline website evaluation reveals an undesirable situation. Existing literature, especially on the low-cost carrier (LCC) sector, is inadequate despite the heavy reliance of this sector on web-based sales. Neither specific nor comprehensive instruments for effectively assessing airline websites are found. Therefore, a comprehensive website evaluation model in the airline or LCC context is necessary.     

An Extended Gravity Model: Applying Destination Competitiveness

Due to the substantial growth of tourism, various studies have employed different forms of gravity models. However, previous models had limitations in terms of generalizing their results. This is primarily due to their focus on specific regions or variables for special events or components of tourism. Thus, the primary objective of this study was to present an extended gravity model that can more generally explain tourism flows. This study adopted components of destination competitiveness as complementary variables and a panel data framework to include the cross-sectional and time effects in the model. The result showed that the proposed model had greater explanatory power than traditional gravity models. Additionally, along with gravity variables, destination competitiveness components, such as natural and cultural resources, general and tourism infrastructure, price competitiveness, and openness, had significant effects on tourism flows. Further discussion and implications are provided in the main body of this paper.     

Asymmetric response of hospitality stock prices to Fed policy actions

This paper examines asymmetric response of hospitality stock prices to Fed monetary policy actions in bull and bear markets. Empirical examinations comprise two critical steps. First, following Kuttner (2001), this study uses the federal funds target rate surprise as an appropriate identification of Fed monetary policy action. Second, by using a Markov-switching model of stock returns, this study explicitly identifies bull and bear markets. Empirical test results based on an event study framework reveal that the responses of airline, gambling, hotel and travel and leisure index returns to monetary policy surprises vary greatly in bear and bull markets. The response of airline, gambling and hotel index returns is substantially greater and more statistically significant in bear than in bull markets. Moreover, the significant impact of monetary policy surprises on airline, gambling and hotel index returns exists only in bear markets. While travel and leisure index return reacts strongly to federal funds target rate surprises in both bear and bull markets, the response of travel and leisure index return is significantly greater in bear markets.     

Seasonality in tourist flows: Decomposing and testing changes in seasonal concentration

This paper shows that changes in timing and magnitude of seasonality in tourist flows can be measured by decomposing the change in the Gini index, a widely used index of seasonal concentration, into two components. One of them tracks the change in the pattern of seasonal fluctuations and the second captures the change in their magnitude. To assess whether changes in the seasonal pattern and magnitude are significant, a technique for testing hypotheses concerning the two components is developed. We examine changes in the seasonal concentration of tourist arrivals in six tourist destinations in the Veneto Region, one of the most tourism-oriented regions in Europe, from 2006 to 2016. The magnitude of seasonality significantly decreased in some destinations with a diversified tourism product, such as Euganean Spas and Lake Garda. The seasonal pattern remained substantially stable for all destinations except Venice, where a non-negligible shift in the seasonal pattern occurred.     

The impacts of immigrants and institutions on bilateral tourism flows

In this paper, we use data on recent bilateral tourism flow from 34 Organisation for Economic Co-operation and Development (OECD) countries to 52 middle-to low-income countries for the period 1995–2010 to determine whether immigration, trade and institutional quality play a role in driving OECD nationals to visit immigrant-source countries. Except for the African countries, the results show that immigrants residing in OECD countries have a positive advertising effect for their home country, inducing tourism flows from OECD countries. We also find that the quality of institutions, along with freedom and civil liberty indices, are important in selecting tourism destinations. A massive 8% of the variation in tourism flows can be accounted for by these factors. These results hold for the subsample and the whole sample with two exceptions: European and African destinations. We posit that this feature of the data exists because European (African) countries are so similar to each other, and small differences in the indexes do not matter at the top (bottom) of the distribution. By controlling for gravity and macroeconomic stability variables, we also show that the trade flows between countries, among other factors, play a crucial and stable role on tourism flows. Dynamic panel data estimation is used to account for the influence of repeat visits and support our findings.     

New tourism for old? Policy developments in Cornwall and Devon

This paper will examine current tourism policies in Cornwall and Devon. Although long established, the tourist industry is in need of restructuring in order to compete in an increasingly discerning and heterogeneous market. Beginning with an overview of the current role and characteristics of tourism in the two counties, this paper will analyze aspects of European, national, regional and local policy. It will be shown that the restructuring of tourism within Cornwall and Devon has resulted in a shift in institutional control over tourist space which is in part a response to a wider context of changes in the nature of commodification and consumption. In conclusion it will be argued that the analysis of tourism policies and strategies cannot be simply reduced to the function of economic imperatives, but needs to be analyzed by conceptualizing such developments as a complex multi-dimensional set of socio-cultural relations and flows.     

Developments in the European inclusive travel business

This article emphasizes the importance of transport to the tourism industry and in particular the part played by air transport in international travel. Air travel accounts for 60%–70% of all international journeys to and from the UK. The inclusive tours (IT) sector - largely developed in the UK and FR Germany - represents an increasing proportion of UK airline passengers. Larger aircraft are being brought into use by UK airlines to cope with increasing demand. The increasing tendency to long-haul travel favours the scheduled airlines but charter services can cater for small traffic flows and thus benefit new destinations.     

Does a low-cost carrier lead the domestic tourism demand and growth of New Zealand?

This study aims to provide a better understanding of the impact of New Zealand's low-cost carrier (LCC) on domestic tourism demand and growth. The panel data regression model and the two-stage least-square (2SLS) model (aims to control for the endogeneity effects) are used to empirically investigate the impact of LCC and the key determinants affecting New Zealand's domestic tourism using five regions (Auckland, Canterbury/Christchurch, Dunedin, Queenstown, and Wellington) from June 2009 to July 2015. The findings suggested that the LCC's services, GDP per capita, the regional tourism indicators (accommodation, and food and beverage), and land transport costs affected New Zealand's domestic tourism. The policy implications of the key finding regarding the significance of the LCC's operations on New Zealand's domestic tourism (local/regional tourism authorities and tourism operators), airline competition between incumbent airline (Air New Zealand) and the LCC (Jetstar), and airport authorities are discussed.     

A review of the IPCC Fifth Assessment and implications for tourism sector climate resilience and decarbonization

The Fifth Assessment Report (AR5) of the Intergovernmental Panel on Climate Change (IPCC) in 2013–2014 was the most comprehensive analysis of anthropogenic climate change, its impacts, and potential responses. It concluded that climate change is “unequivocal” and human activities are the dominant cause. Avoidance of “dangerous” climate change will require sustained substantial reductions of emissions by mid-century and that net emissions decrease to zero before 2100. This paper describes, reviews and explains the place of tourism in AR5 and AR5's relevance for tourism's future, including impacts, adaptation, vulnerabilities, and mitigation. Tourism's position in AR5 has strengthened, particularly with respect to the recognition of transboundary impacts, the sector's contribution to climate change and its mitigation requirements. Major regional knowledge gaps persist. A lack of understanding of the integrated impacts of climate change and the effectiveness of adaptation strategies potentially hinders the development of resilient tourism operations and destinations. Uncertainties regarding tourist response to climate change impacts and mitigation policy impede predictions of tourism demand. The implications of different decarbonization pathways for the future of international tourism represent a key knowledge gap. The limited response of key tourism organizations to AR5 contributes to the risks climate change poses to the sector.     

Narrative transportation and travel: The mediating role of escapism and immersion

The experience of escaping the real world and losing oneself in a fictional one brings pleasure to many. We draw on the overarching theory of narrative transportation (see Gerrig, 1993) to advance knowledge in screen tourism. The aim is to develop and empirically test a conceptual model of TV series consumption, escapism, immersion, and travel intentions with partial least squares structural equation modelling (PLS-SEM). Results confirm that narrative transportation is a structured gradual process: TV series consumption first leads to escapism, escapism to immersion, immersion to travel intention. The mediated relationships (via escapism and immersion) between media consumption and travel intention are found to be significant. The novelty of our model lies in the travel-centred operationalizing of the narrative transportation theory. Based on our results, tourism marketers are advised to implement a tourism ad campaign building on the different stages of narrative transportation to create emotionally engaging tourism marketing products.Impact statementThe main contribution of this research to society in general is that it recognises the cultural phenomenon of TV series consumption and the benefits of narrative transportation as a kind of travel-experience into a fantasy world. We map the stages of narrative transportation, exploring the journey from media consumption to travel intention; the data obtained is of relevance because filming locations often become popular tourist destinations. Whether tourism planners aim to reduce or increase tourist flows awareness of (1) the process of narrative transportation experienced by viewers, and (2) how this process influences travel intentions is key to the effective management of media-induced tourism flows.     

Tourism and water use: Supply, demand, and security. An international review

This article reviews direct freshwater consumption in tourism from both quantitative and qualitative viewpoints to assess the current water demand of the tourism sector and to identify current and future management challenges. The article concludes that even though tourism increases global water consumption, direct tourism-related water use is considerably less than 1% of global consumption, and will not become significant even if the sector continues to grow at anticipated rates of around 4% per year (international tourist arrivals). The situation differs at the regional level because tourism concentrates traveller flows in time and space, and often-in dry destinations where water resources are limited. Furthermore, the understanding of tourism’s indirect water requirements, including the production of food, building materials and energy, remains inadequately understood, but is likely to be more substantial than direct water use. The article concludes that with expected changes in global precipitation patterns due to climate change, it is advisable in particular for already water scarce destinations to engage in proactive water management. Recommendations for managing tourism’s water footprint are made.     

South Pacific tourism in the mid-1980s

The Pacific Islands have weathered the world economic recession well, but not without changes in their approach to tourism. Poor economic conditions coupled with US airline deregulation caused considerable reassessment. The fear of recession, together with optimism concerning the future resulted in new services (while others were going out of business), a spate of hotel construction plans (even in areas with low occupancy rates) and a softening of attitudes towards tourism. The possibility of a huge Pacific Basin (Rim) market strongly influenced these development policies.     

Flight availability and international tourism flows

This paper analyzes the effect of flight supply on international tourism flows between 20 Italian regions and 24 European countries, observed half-yearly from 1999 to 2010. We find that low-cost carriers have a prominent role in attracting international tourism flows. Our estimates suggest that an additional round-trip flight operated by a low-cost carrier generates about 74 arrivals and 248 overnight stays in hotels or similar facilities; in the case of a full-service carrier these figures decrease to 29 and 97, respectively. These findings are relevant for the current debate on the drivers of tourism development.     

Do Travel Product Types Matter? Online Review Direction and Persuasiveness

Based on perceived risk and zone of tolerance theory, this study selected two popular tour-based products and two ticket-based products to investigate how travel product types and online review directions influence review persuasiveness. The study showed that travel product type and online review direction have a combined effect on online persuasiveness. Additionally, participants perceive negative reviews to be more persuasive than positive reviews for group package tours and packages of airline ticket and hotel accommodation products. However, positive reviews are more persuasive than negative reviews for budget airline ticket products. These findings have managerial implications both for product improvement strategies and for theoretical advances in hospitality and tourism.     

The joint effect of consumer and service providers’ culture on online service evaluations: A response surface analysis

National culture exerts substantial influence on consumers' expectations, satisfaction, and evaluations. Despite that, within a service-based context, two cultures are met, that of the customer and that of the service provider, the existing literature systematically explores the effect of customer culture in isolation neglecting the impact of the provider's culture or their joint effect. We fill this gap by considering the concomitant effect of customer and provider cultural factors on passenger evaluations of airline carriers using a large dataset of reviews that covers the majority of countries. Employing a response surface methodology, our study provides significant advantages over methods based on cultural distance scores in revealing more complex non-linear relationships. This multi-dimensional approach provides new insights for assessing the impact of national culture on customers' service perceptions and evaluations, thus bringing significant implications for researchers and service providers.     

The signalling effect of eco-labels in modern coastal tourism

As the demand for environmentally sustainable tourism grows, eco-labels are becoming increasingly popular as a signal of environmental quality. However, the existence of a causal link between awarding a seaside eco-label and the increase in tourism flows is still under discussion in the literature. In this article, we gauge the signalling impact of a specific eco-label, the Blue Flag award, using detailed data on tourism flows to seaside Italian destinations during the period 2008–2012. We adopt a recent econometric modelling strategy – the synthetic control method – in shaping estimation results and testing the sensitivity and robustness of our results. We find that being awarded the Blue Flag increases the flow of domestic tourists for up to three seasons after assignment. However, we find no effect for the flow of international tourists. Investigating the mechanisms driving the results, we find that the award of a Blue Flag only positively affects the flow of domestic tourists when it is used as a driver of organisation, coordination and integrated management of the tourism supply.     

Combining time-series and econometric forecast of tourism activity

It has always been difficult to model the travel industry because tourism involves such a diverse set of activities. However, various regional decision makers have become increasingly interested in predicting the flows of visitors through their market. Accurate forecasts of the number of tourists' arrivals, their length of stay, and their expenditures improve planning and inventory control. Stochastic time-series models have compared favorably with econometric models at the aggregate level while some naive automatic forecasting tools have fared well in comparison when predicting industry-level behavior. Several approaches have been developed to improve forecast accuracy. This paper presents parsimonious methods of improving accuracy by combining various forecasting techniques. The Box-Jenkins stochastic time-series method is combined with a traditional econometric technique to forecast airline visitors to the State of Florida.     

Tourism development the case of American Samoa

The purpose of this study was to analyze the development of tourism in American Samoa. The government in American Samoa initiated efforts to develop tourism during the early 1960's. In spite of this, tourism in American Samoa is still in an early development stage. Internal factors which have constrained tourism growth have been the limited natural resources and underlying conflict between the traditional Samoan culture versus western ideas. External factors in the form of increased competition from nearby destinations and shifts in airline services also have limited the number of tourists to the area. The development of tourism in American Samoa is relevant to other less popular and newly developing destinations in the Pacific. Thus, it illustrates the risks and problems in developing tourism in similar Pacific destinations.     

Comment on Richter''s political implications of Chinese tourism policy

The purpose of this study was to analyze the development of tourism in American Samoa. The government in American Samoa initiated efforts to develop tourism during the early 1960's. In spite of this, tourism in American Samoa is still in an early development stage. Internal factors which have constrained tourism growth have been the limited natural resources and underlying conflict between the traditional Samoan culture versus western ideas. External factors in the form of increased competition from nearby destinations and shifts in airline services also have limited the number of tourists to the area. The development of tourism in American Samoa is relevant to other less popular and newly developing destinations in the Pacific. Thus, it illustrates the risks and problems in developing tourism in similar Pacific destinations.