Economic measures of tourism yield: what markets to target?

An understanding of the yield potential of different source markets and segments can underpin destination marketing by both public and private sector organisations. The standard yield measure relates to expenditure injected into a destination from different market segments. This measure has several limitations, which are discussed in the paper. With the increasing sophistication of economic models such as computable general equilibrium, models, it is now feasible to develop new and more useful measures of tourism yield, which directly measure the gains to different stakeholders. Several economy‐wide impact measures of yield are developed and contrasted for selected Australian inbound tourism markets. The measures produce conflicting signals for public and private sector tourism marketers and planners. The reward from further research in developing and operationalising yield measures is more informed policy‐making by destination managers in respect of destination marketing and new product development, resulting in greater economic gains from inbound tourism. Copyright © 2008 John Wiley & Sons, Ltd.     

Is the tourism‐led growth hypothesis valid for malaysia? a view from disaggregated tourism markets

This research note attempts to re‐investigate the validity of tourism‐led growth hypothesis for Malaysia based on the data set of 12 different tourism markets from January 1995 to February 2009. The error‐correction modelling‐based cointegration test shows that economic growth and international tourist arrivals are cointegrated for all tourism markets. Nevertheless, the Granger causality results demonstrate that not all international tourism markets Granger‐cause economic growth. Therefore, identification of potential tourism markets is vital for implementing effective tourism marketing policies. Copyright © 2010 John Wiley & Sons, Ltd.     

Network competition in the open aviation area

In 2008 the ‘joint open aviation area’ between the US and EU will become reality. It is expected that competition will increase. The reaction of the airlines depends on the possibility to make profits in ‘new’ markets (markets that can now be entered). This, in turn, depends on network characteristics. In this paper we find that full liberalization of international markets by means of a bilateral agreement results in higher welfare than the formation of an alliance. Carriers, however, will also in fully deregulated aviation markets most likely opt for an alliance. This is a result of a built-in competitive effect of hub–spoke networks. Only in markets where the reservation price is very high (e.g. to London Heathrow), hub–spoke airlines may enter a competitive game. Low-cost airlines, which do not operate extensive hub–spoke networks, may find it profitable to enter new markets.     

The role of London airports in providing connectivity for the UK: regional dependence on foreign hubs

In a context of ongoing debate about the future UK aviation policy and its implications for regional economic development, this paper discusses the role of London Heathrow and the South East airports in providing connectivity for the UK, with particular focus on the international markets that originate from regional UK airports. Using an MIDT dataset of worldwide passenger itineraries served by the European airport network during May 2013, we first establish whether London Heathrow can currently be considered the most important hub for the UK, in terms of traffic generation, connectivity, and centrality, while also measuring the dependence of UK regions on foreign airports and airlines to remain connected with the rest of the world. Results show that, despite the competition, London Heathrow benefits from its massive traffic generation to remain the most central gateway for overall UK air transport markets. However, when only regional markets are considered, significant dependence on foreign hubs appears in many destinations, particularly to Asia–Pacific or the BRIC countries where above 80% of passengers use transfer flights. These results fit nicely with the observed trends of seat de-concentration and hub-bypassing in the airline industry. While dependence on foreign hubs can be interpreted as a sign of vulnerability, there is also the argument that bypassing Heathrow allows regional airports to develop new markets and reduce the level of congestion in the London airport system.     

Properties of first-time vs. repeat visitors: lessons for marketing Norwegian ski resorts

This paper explores the potential in foreign markets for winter tourism in Norway and discusses the influencing factors explaining why foreign tourists visit and revisit Norway on ski vacations. In a decreasing market, it becomes increasingly important to destination managers and marketers to choose the right marketing strategies and direction. We focus on characteristics that influence and explain why foreign tourists choose to return. More than 3000 respondents from Sweden, Denmark, and Germany were asked for their image of Norwegian ski destinations and criteria for winter vacation selection. We fitted mainly hurdle and quantile regressions to gain consistent and less biased estimates. Stable snow conditions, combining alpine and cross-country skiing, and no fees for the latter are some of Norway's competitive but seldom marketed advantages, and especially towards repeat visitors. Repeaters typically prefer self-catering accommodation and are less price sensitive. Surprisingly, foreign ski tourists are not very interested in other snow-based activities or cultural attractions. Despite repeaters constituting the majority of foreign ski tourists, neither the national development and marketing agency (Innovation Norway) nor local tourist organizations and marketers have a strategy for targeting them. We recommend a shift from profile marketing towards segmented marketing, aimed especially at the repeat-visitor segment.     

Growing competition in the healthcare tourism market and customer retention in medical clinics: New and experienced travellers

This research sought to investigate international medical travellers’ post-purchase decision-making process by utilizing key concepts in medical tourism (i.e. medical product quality, effective communication, satisfaction, switching costs, and past experience [first-time vs. repeat experiences]). A visitor survey was conducted at medical clinics. Results of the structural model generally supported the proposed relationships among study variables. The role of study variables in generating revisit intention was found to differ significantly between new and repeat customers, and the strength of the proposed relationships was generally greater in the repeater group than in the first-timer group. This study also identified the mediating impact of satisfaction and switching costs. Additionally, the prominent role of satisfaction in the proposed theoretical framework was identified. The results of a structural-model comparison also revealed that a quality–satisfaction linkage was stronger than its alternative ordering in the proposed framework. Overall, this study provides great insight into medical travellers’ post-purchase behaviours.     

Mobile learning adoption for tourism education in a developing country

Since developing countries are gradually introducing mobile-based tourism education, it is a growing demand to understand the students’ intention to adopt mobile learning. The study used partial least squares-based structural equation modelling to analyse survey data from 176 questionnaires at three tourism education institutes in Bangladesh. The study contributes to the theory of planned behaviour by examining the antecedent impact of innovativeness and moderating effect of self-efficacy. Results confirmed innovativeness as a significant antecedent on the attitude–intention relationship; however, the moderating effect of self-efficacy has not been supported. The study has marketing implications for tourism education institutes and government bodies.     

Accessibility gains and road transport infrastructure in Spain: A productivity approach based on the Malmquist index

Accessibility, the relative access to markets, is a strategic concept in all economic models with a spatial dimension and its prominence has been acknowledged in many economic research fields and policy debates. This paper is based on the assumption that infrastructure drives economic accessibility and, therefore, we can assimilate a production function approach where the road network constitutes a set of inputs yielding access to markets as output. Methodologically, we originally measure the infrastructure inputs accounting for the real used network and calculate a series of new final and intermediate demand gravity-based and locational indicators, which capture a wide range of economic transactions and represent different concepts of economic accessibility outputs. The value added of this paper is translating a non-parametric frontier approach (DEA) to a dynamic scope (Malmquist indices) by connecting the regional accessibility to the productivity of the road infrastructure inputs associated with each region. Results during 1995–2005 show a low relative accessibility of the Spanish NUTS-3 regions, although improvements have been greater over the last five years. Finally, we observe a U-inverted relationship between the accessibility gains during these years and the geographical localization.     

Seasonality patterns in dry bulk shipping spot and time charter freight rates

This paper investigates the nature of seasonality (deterministic and/or stochastic) in dry bulk freight rates, and measures and compares it across freight rates of different vessel sizes (Capesize, Panamax and Handysize), contract duration (spot, 1-year and 3-year time charters) and market conditions (peaks and troughs). Although, there is no evidence of stochastic seasonality, deterministic seasonality in freight rates is found to be varying from −18.2% to 15.3% in individual months within a year. Spot rates for larger vessels exhibit higher seasonal fluctuations compared to smaller vessels, although differences in seasonal fluctuations between sectors are eliminated as the contract duration increases. Also, for each vessel size, the seasonality declines as the contract duration rises. Asymmetries in seasonal fluctuations in freight rates over different market conditions are attributed to the high and low elasticities of supply expected under the respective market conditions. The results have implications for tactical shipping operations such as timing of dry-docking, chartering strategies and switching between freight markets.     

An exploration of the effects of past experience and tourist involvement on destination loyalty formation

Gaining the loyalty of visitors is one of the main challenges of destinations. Previous studies generally agree that satisfaction is the key driver of tourist loyalty. However, it is necessary to conduct a more thorough study of destination loyalty formation by exploring the role of other variables as direct antecedents of loyalty and as moderators of the satisfaction–loyalty relationship. With this in mind, this study examines the influences of two variables that are especially relevant in the study of consumer behaviour in tourism: past experience and involvement. The results obtained from a sample of 807 tourists visiting a destination in Spain suggest that (1) satisfaction and past experience have a significant influence on loyalty; (2) it is necessary to separately consider the two dimensions of loyalty (i.e. the intention to return to a destination and the intention to recommend it) to understand loyalty formation; and (3) past experience is a quasi-moderator variable as it directly influences tourist loyalty and moderates the satisfaction–loyalty relationship. The findings of this research may help managers make decisions about market segmentation and guide the marketing efforts to gain loyal tourists.     

The effects of road infrastructure improvement on work travel in Northern Iceland

Work travel is an important alternative to out-migration in rural areas characterized by a limited range of jobs. The size of local labour markets is determined in part by geography and tradition, but advances in transportation have the potential to move people and communities closer together and transform established mindscapes. In Iceland, the dispersion of the rural population, a challenging terrain, and unpredictable weather has made road infrastructure improvements a key component in regional development strategies. A large-scale tunnel project completed in 2010 was intended to strengthen a vulnerable rural area on the northern coast and expand the urban labour market of the regional centre of Akureyri. Traffic surveys and resident surveys conducted before and after the tunnels show a substantial increase in 17–34 km work travel between rural communities. Work travel 61–77 km to and from the regional centre did however not increase. The average length of work travel has shortened but the increase in commuting yielded a net increase in total km commuted. The tunnels increased work travel irrespective of age and education, but increased work travel by women with children in the household in particular. The results suggest that large-scale road infrastructure improvements may substantially strengthen rural labour markets within a driving distance of 15–30 min, but may not extend the edge of micropolitan labour markets 45–60 min from an urban centre of less than 20 thousand inhabitants.     

Antecedents of travellers’ repurchase behaviour for luxury cruise product

This study proposed and tested a theoretical model in which image congruence, affect, satisfaction, switching costs, and trust have an influence on travellers’ decision to repurchase a luxury cruise product by considering the moderating impact of conspicuousness. The model was evaluated using a quantitative approach. The original model included a satisfactory fit and prediction power. The results of the structural analysis revealed that the hypothesized associations between the study variables were generally supported, and such variables had a significant mediating role. In addition, conspicuousness of product use had a moderating impact on the affect–satisfaction–switching costs linkages. Moreover, the prominent role of satisfaction and trust was identified. The findings of this study extended our understanding of the complex of the relationships among study variables in forming luxury cruise passengers’ repurchase intention.     

Airport–airline vertical relationships,their effects and regulatory policy implications

This paper examines the forms and effects of vertical relationships between airports and airlines with a focus on the North American and European aviation markets. We find that such vertical relationships enables those participating to achieve various benefits and may be formed as a competitive response to other competing airport–airline alliances. In some cases, vertical airport–airline relationships strengthen the hub status of major airports, leading to increased employment and service quality in local markets. On the other hand, preferential treatment of a particular airline by an airport may enhance that airline’s market power, allowing it to dominate the airport and charge hub premiums. The competition and welfare implications of airport–airline vertical alliances can be complicated and two-sided, subject to the influences of other factors such as the market structures of the airline and airport markets.     

Web‐based destination marketing systems: assessing the critical factors for management and implementation

The Web‐based destination marketing system (DMS) has been widely used as a distribution channel and marketing tool by destination marketing organisations (DMOs) at different levels in the promotion and management of tourism destinations. However, successful Web marketing requires a systematic approach in understanding key factors supporting the management and implementation of the DMS both from business and technical perspectives. The purpose of this study is to assess the critical factors of the Web‐based DMS used by DMOs in the USA on the following five areas: website function design, website promotion, Website‐performance measurement, Web‐marketing impact assessment and organisation technology environment. Discussions of the study results and implications for Internet destination marketing and management are also provided. Copyright © 2007 John Wiley & Sons, Ltd.     

Container port efficiency in emerging and more advanced markets

The literature on container port efficiency has typically centered on ports in advanced markets or comparisons within regions. This study compares the efficiency of port operations in emerging markets (BRIC and the Next-11) with the more advanced markets (G7). We use data envelopment analysis to evaluate the container ports based on the import and export cargo volumes in 2005. Our results suggest that none of the ports in the advanced markets are role models for the field. This study provides a first step towards gaining insights into port efficiency in emerging markets.     

Knowledge management and tourism recovery (de)marketing: the Christchurch earthquakes 2010–2011

New Zealand has a history of deadly earthquakes, the most recent of which in Christchurch (2010–2011) has had major consequences for the tourism sector. Tourism destinations affected by major natural disasters face significant challenges during the response and recovery phases. Christchurch lost a large proportion of its lifelines infrastructure and accommodation capacity, and experienced an unprecedented drop in domestic and international visitor arrivals. The theoretical frameworks informing this paper come from the fields of tourism disaster planning, knowledge management and recovery marketing. They inform an empirical study that draws upon qualitative expert interviews with national and regional destination management organizations regarding their experience of the Christchurch earthquakes. The findings of this research highlight the critical importance of knowledge management and effective inter-agency collaboration and communication in the immediate disaster response, as well as during the development and implementation of (de)marketing strategies, in order to expedite medium- to long-term tourism recovery.     

The Air Liberalisation Index as a tool in measuring the impact of South Africa's aviation policy in Africa on air passenger traffic flows

In Africa, the Yamoussoukro Decision (YD) to date remains the single most important air transport reform policy, the continent-wide implementation of which remains pending. This study employs the Air Liberalisation Index (ALI), developed by the Word Trade Organisation (WTO) Secretariat, to measure the impact of each of the seven quantifiable market access features of South Africa's aviation policy in Africa on air passenger traffic flows. A fixed one-way panel regression technique was applied to panel data, representing five air transport markets: intra-African, the SADC, East African, West African and North African over two time periods (2000–2010; 2006–2010). The results proved to be significant in three markets, intra-African, the SADC and East African and provide new insights into the relationship between air passenger traffic flows and aviation policy in the South African – intra-African and regional contexts.     

Testing the differentiated impact of the COVID-19 pandemic on air travel demand considering social inclusion

The economic downturn and the air travel crisis triggered by the recent coronavirus pandemic pose a substantial threat to the new consumer class of many emerging economies. In Brazil, considerable improvements in social inclusion have fostered the emergence of hundreds of thousands of first-time fliers over the past decades. We apply a two-step regression methodology in which the first step consists of identifying air transport markets characterized by greater social inclusion, using indicators of the local economies’ income distribution, credit availability, and access to the Internet. In the second step, we inspect the drivers of the plunge in air travel demand since the pandemic began, differentiating markets by their predicted social inclusion intensity. After controlling for potential endogeneity stemming from the spread of COVID-19 through air travel, our results suggest that short and low-density routes are among the most impacted airline markets and that business-oriented routes are more impacted than leisure ones. Finally, we estimate that a market with 1% higher social inclusion is associated with a 0.153%–0.166% more pronounced decline in demand during the pandemic. Therefore, markets that have benefited from greater social inclusion in the country may be the most vulnerable to the current crisis.     

Cultural tourism behaviour and preferences among the live‐performing arts audience: an application of the univorous–omnivorous framework

This study uses the omnivorous–univorous theoretical framework of the arts marketing studies to identify relationships between the live‐performing arts and cultural tourism behaviours and preferences. Patrons of a major performing arts centre were segmented in three groups — sporadic, univores and omnivores — and examined regarding their cultural tourism behaviours and preferences. Statistical analysis revealed significant differences among groups in terms of demographic characteristics, art and culture consumption and cultural tourism behaviour and preferences. Study results add to the body of knowledge of tourism, suggesting that the culture omnivorous consumption behaviour reported in art marketing studies is also relevant to cultural tourism. Results suggest the existence of omnivorous cultural tourists seeking a wide variety of cultural products and experiences. The identification of a group of individuals with little interest and consumption of culture, including cultural travel destinations, also emerges from this study. Copyright © 2009 John Wiley & Sons, Ltd.