The changing role of IATA

The air transport industry is currently facing new challenges in virtually every aspect of its daily operations. As the trade association and parliament of the world's scheduled international and domestic airlines, the International Air Transport Association (IATA) is adapting to meet the needs of its 144 members and of the aviation market place. Dr Günter Eser, Director General of IATA, discusses the impact of the changes in relation to deregulation and liberalization; national anti-trust and competition laws; the automation revolution; and IATA's involvement in helping airlines of developing nations to become self-sufficient and to play their full part in the overall pattern of international air transport. Dr Eser describes IATA's role in technical matters; the relationship with travel agents; and the vital topic of security. He concludes that adaptability and versatility are the keynotes of IATA's changing role in the future.     

The influence of low-fare airlines on vacation choices of students: Results of a stated portfolio choice experiment

This paper reports the results of a portfolio model of vacation choices of students. The portfolio model concerns the combined choice of destination type, transport mode, duration, accommodation, and travel party for vacations. In addition to usual transport modes such as airline, train, bus and car, a distinction was made between low-fare airlines, as these may be especially appealing to students, and regular airlines. Stated choice data were used to estimate the model. The attributes of the transport modes were systematically varied in the experiment, while respondents were faced with free options for the other choice facets. Estimation results indicated that the developed model of portfolio choice performs satisfactory. In substantive terms, it seems that transport mode predominantly influences the portfolio choices. The attributes that are significant tend to amplify the specific role of transport modes in general and low-fare airlines in particular.     

Understanding the Benefit of Purchasing Ancillary Air Travel Services Via Mobile Phones

Recently, United States (US) airlines engaged in a systematic offering of different types of services, called ancillary services, which are designed to improve the experiences of travelers while increasing airlines’ revenues. Given their strong personalized character and the unique characteristics of mobile commerce, ancillary services are believed to be well suited for mobile commerce in air travel. Drawing upon several theoretical streams, this study developed and validated empirically a structural model founded on constructs contributing to the formation of perceptions of value (monetary and information disclosure) and of the benefit of using mobile phones for purchasing air travel ancillary services. The model explained approximately 65% of the variability in perceived benefit of using mobile phones for purchasing ancillary services in air travel. It revealed that perceived monetary value is the strongest predictor of perceived benefit of using mobile phones to purchase air travel ancillary services.     

Partnerships in International Travel and Tourism Marketing: A Systems-Oriented Approach Between Australia,New Zealand,Germany and the United Kingdom

Abstract

Little empirical research has been conducted about international partnerships between travel and tourism organisations, airlines and their intermediaries such as wholesalers and travel agents. Nevertheless, these partnerships are important because tourism is becoming more international and most destinations have to compete at a global level. Moreover, both producers and intermediaries are increasingly using information technology to increase their knowledge and relationship with customers. Thus this research set out to develop and empirically confirm a systemic model of these partnerships and four related research objectives. The methodology involved multiple case studies based on in-depth interviews with key players in Australia, New Zealand, the United Kingdom and Germany. The first outcome is a confirmation of the systemic model. In addition, the findings show the reasons for engaging in partnerships and the scope for further partnerships among the industry players. As well, the findings show that while ‘disintermediation’ may occur because of the advancement of communication technology, the linkages between travel and tourism organisations, airlines and intermediaries are still significant. Our framework can assist public and private travel and tourism organisations to mutually develop and manage marketing strategies and tactics for overseas markets.     

Marketing of airline services in a deregulated environment

Airline deregulation in the USA has produced dramatic changes in the marketing of airline services. All elements of the marketing mix - product, place, price, and promotion - have been affected. The marketing changes have affected nearly all members of the travel-distribution system, including competing airlines, travel agents, other suppliers of travel services, and travellers. These changes represent challenges and opportunities for all concerned.     

Investigating the effects of job demands and job resources on cabin crew safety behaviors

Cabin crews are crucial to the cabin safety performance of airlines, and may enhance air travel safety and alleviate passenger concerns. Within the limited literature devoted to cabin crew related research, this study aims to examine the causal relationships among “job demands”, “job resources” and cabin crew safety behaviors. Data from a survey of 339 flight attendants working for Taiwanese international airlines were analyzed using structural equation modeling. A variety of fit indices confirmed the overall model fit, and all the paths in the model were statistically significant. Framed in the context of the job demands-resources model, the results reveal negative causality between “job demands” and “cabin crew safety behaviors”, whereas “job resources” are positively related to “upward safety communication”, “in-role” and “extra-role” safety behaviors. The implications of the results for practitioners and future research are discussed.     

Pooling international tourism in Western Europe

This paper examines potential improvements in measures of international travel demand elasticities by pooling cross sections and time series of travel receipts. International travel receipts for 18 European countries are pooled and estimates of elasticities with respect to income, exchange rates, relative prices, transport costs, and number of terrorism events are computed. Indexes are developed for the purpose of measuring and aggregating transport costs and terrorism. The results show that the responses to changes in these variables are significantly different across countries. When the countries are constrained to have the same elasticities, but the constants are allowed to be different, it is found that all variables affect tourism in the expected direction and are statistically significant.     

The treatment of language in travel advisories as a covert tool of political sanction

The safety-related contents in the travel advisories issued by the departments of foreign affairs stand out among the drivers of the perception of risk by international travellers. The aim of this paper is to identify keywords used in safety advice and to explore how such words are related to countries issuing the travel advice and to the risks identified in the destination country. A content analysis of the travel advisories issued by the five main tourist origin markets for Kenya (USA, UK, Germany, France and Italy) within a time span of five years is carried out. Both qualitative (text mining) and quantitative approaches (correspondence analysis) were used to analyse the narrative information. The results show substantial differences in the treatment of language between the countries as well as a persistent use of words related to risk and potential threats even though the reasons for them are no longer present.     

Database Marketing for Competitive Advantage in the Airline Industry

This paper examines the development and role of database marketing in the travel industry in general and in the airlines in particular. The airline industry has effectively merged its information with that from other travel services to better serve consumers and to increase marketing efficiency. Computer reservation systems, frequent programs, and yield management are integrated through database marketing to gain competitive advantage in the marketplace.     

Online distribution of airline tickets: Should airlines adopt a single or a multi-channel approach?

In today's digital world, airlines typically distribute tickets both via their own websites and through online travel agency (OTA) platforms such as Expedia and Travelocity. Although associated with higher distribution costs, selling tickets through the platforms offers airlines exposure to a broader consumer base, and potentially higher sales than selling tickets solely through their own websites. While most airlines have adopted a multi-channel approach by selling tickets through OTA platforms and their websites, some (e.g., Southwest Airlines, easyJet and Ryanair) sell only via the latter. Is one approach better than the other, and if so, under what circumstances? This study analyzes factors that affect an airline's distribution strategy by developing a decision support model. We find that airlines are less likely to use OTA platforms if they have a large loyal consumer base or if the OTA platform is highly competitive.     

Why passengers’ geo-demographic characteristics matter to airport marketing

Passengers’ preference and origin location data (home postcodes) can be extremely useful for marketing purposes, with the potential for more effective customer segmentation and targeting, yet traditional airport market research has often neglected these aspects. This paper utilises passenger survey data from the Gold Coast Airport in the state of Queensland, Australia, to perform a geo-demographic classification analysis in conjunction with census data. With geo-coded passenger preference data, the trip characteristics and airport decision preferences were cross-compared with demographic data with socio-economic variables. The results revealed distinctive contrasts in passenger origin location for short-haul domestic trips and long-haul international trips, in which passengers from afar are willing to travel longer distances to reach a second-tier airport to make use of cheaper airfares. One of the implications of this study is that low-cost carriers’ businesses (the airlines or the airports) should better target their customers by offering geographically targeted marketing.     

The impact of COVID-19 on European tourists' attitudes to air travel and the consequences for tourist destination evoked set formation

We study how risk conditions derived from the COVID-19 pandemic may impact on both the desire to travel and intention to visit of tourists and, therefore, on different stages of the destination choice process. We analyse 5134 million flight searches and 379 million flight picks during 2020 for the 17 largest European tourism source markets. An unweighted index number is employed to measure the average variation for searches and picks, for the year 2020, in relation to the reference base period (year 2019). This is done for air travel in general and to Spain specifically. The study then proceeds to conduct an analysis of 17 international travel destinations that are in the evoked sets of the two largest outbound markets in Europe (Germany and UK). We also identify which markets are most favourable to Spain. The research design can inform cost-efficient marketing decisions in a situation of high uncertainty.     

Scenarios for greenhouse gas emissions reduction from tourism: an extended tourism satellite account approach in a regional setting

Tourism results in the emission of climate-changing greenhouse gases. There has been limited destination-focused quantitative analysis of how tourism might be reshaped to reduce these emissions. This paper uses an extended tourism environmental satellite account methodology to examine the case of tourism in Wales, a United Kingdom region. It shows how an estimate of the emissions associated with trips to, and in, the region – internally, from the rest of the UK and from abroad – can contribute to regional aspirations to reduce greenhouse gas emissions. The analysis suggests that substantial emissions cuts are dependent upon technical developments outside of tourism itself. Four potential scenarios are devised and analysed. Scenario 1 shows the value of low carbon electricity production in cutting tourism-related emissions. Scenario 2 analyses a possible 50% fall in international arrivals and 10% increase in UK domestic arrivals – maintaining employment but reducing emissions. Scenario 3 shows the effects of switch from private to public transport modes for 50% of UK resident arrivals. Scenario 4 examines the outcomes of reducing ground transport emissions by using electric, biofuel and hybrid technologies. All scenarios cut emissions, none are highly effective and most are dependent on changes in society and governance.     

Traveler preferences from online reviews: Role of travel goals,class and culture

Along with being critical performance indicators as well as a rich source of information for potential customers, the overall rating and recommendation behavior also work as a crucial information source for managers of airlines for customer segmentation, service design, and post-purchase evaluation management. In this study, we explore how customer preferences, behavior and post-purchase evaluations differ for travelers depending on their respective travel goals, travel class, and the culture of their native country. Based on the frameworks of the construal level theory and expectation disconfirmation theory, we provide a psychological explanation of why specific service attributes, categorized in process-outcome and tangible—intangible dimensions, get higher importance than others for a particular set of customers. We analyzed consumer review data of 28,341 reviews for 345 airlines by customers from 132 countries. The results yielded critical theoretical contributions to extant literature on airline evaluations and recommendations, construal levels, airline customer segmentation, etc. Moreover, the results also helped managers of an airline to package design, segment customers, enhance targeted communication, and customer relationship management overall. The limitations and future scope of the study have also been discussed.     

Reshaping gender in airline employment

Air transport and tourism are interdependent systems wherein representations of gender are shaped by organisational cultures. Although airlines have progressed their gender balance, cabin crew work remains archetypically feminine. Taking a feminist poststructuralist approach, this paper uses thematic document analysis to examine how gendered discourses are constituted within airline organisational narratives through text, gestures and symbolic signs. Findings reveal that while airlines work to increase gender equality in employment practices, their efforts predominantly focus on the cockpit, neglecting roles beyond the flight deck. The paper recommends airlines broaden their gender equity focus to all roles and provides a basis for reshaping airlines' gender policies and practices.     

An assessment of the potential for self-connectivity at European airports in holiday markets

In a context of intense airport and airline competition, a few European airports have recently started offering self-connection services to price-sensitive holiday passengers travelling with a combination of tickets where the airline/s involved do not handle the transfer themselves. This paper provides an exploratory analysis of the potential and implications of self-connectivity for European airports and airlines using a case study of air travel routes to holiday destinations in the Mediterranean. With the help of a forecasting model based on a zero-inflated Poisson regression, we identify the airports and airlines that have the highest potential to facilitate self-connections in the selected markets. The results also explore some implications of the widespread development of self-connection services in Europe.     

The future of cruise shipping

Cruise shipping has experienced inconsistent growth since the 1950s but in the 1990s the industry's main market sector - senior citizens - will increase dramatically. Modern luxury cruise vessels will be built to take advantage of the growing demand for quality travel products. The boat itself will provide the tourist resort facilities. Theme cruises and convention cruises will exploit other growing market sectors. High capacity boats, able to compensate for seasonal variation in demand, will have mass market appeal with their wide range of leisure facilities. In conjunction with the airlines the market will expand into ‘fly-cruising’. The potential for expansion in the 1990s is enormous.     

African-American travel agents: Travails and Survival

Social science research on the struggles of early and contemporary independent African-American travel agents represents a void in the literature. These agents experienced serious obstacles to survival during the past half-century, not only during times of racial segregation, but more recently with airlines and government regulations, expensive technological innovations, and significant industry demands. Six agents describe their histories, successes and failures, and the futures of independent Black travel agents; serious difficulties remain, including access to capital. A scenario identifies the start-up costs for an independent Black travel agency in a medium-sized Middle West metropolitan area to illustrate the problems that remain.     

Voluntary carbon offsetting: Who does it?

Voluntary carbon offsetting was popularised during the last decade, particularly by airlines, as a tool to ‘neutralise’ emissions associated with travel. Although there is a wide range of carbon offsetting schemes for tourism, the uptake of these programs has been reportedly low. Regardless, little research has explored the visitor segments who voluntarily undertake carbon offsetting. Consequently, this research investigates the prevalence of carbon offsetting amongst international tourists to Australia between 2008 and 2010 and, using cluster analysis, segments the carbon offsetters into three distinct markets. Findings reveal a stable carbon offsetting market, despite a Global Financial Crisis occurring during the reference period. Further, travellers from the United Kingdom/Europe were more likely to carbon offset, while those from Asia were less likely to participate in the schemes. Thus, this could indicate that the social marketing, public discourse and substantial media coverage in the United Kingdom/Europe had enhanced climate change mitigation behaviours.     

Globalisation,airline alliances and tourism: A strategic perspective

The forces driving globalisation have impelled the majority of international airlines to enter into strategic alliance arrangements. Strategic alliances have enabled airlines to work around structural problems of the industry, particularly foreign ownership restrictions, national regulatory constraints and constraints on building up networks. The history of alliances, to date, shows them to be changing and unstable. Alliances will probably continue to be a feature of the international airline industry, but the forms and membership of alliances may well change further in the future. Further deregulation and liberalisation of the industry could mean that alliances become less important in the future, if deregulation allows mergers and acquisitions of airlines across national borders. Two scenarios of possible futures are presented, with an assessment of their impacts on tourism, as an aid to strategic analysis.