Has Ryanair's pricing strategy changed over time? An empirical analysis of its 2006–2007 flights

This paper analyzes the question of whether Ryanair's pricing strategies have changed over time. We create a panel dataset of fares for all of Ryanair's European flights over a two-year period, from 1 January 2006 to 31 December 2007. We calculate the average fare over a 90-day period prior to departure and the intensity of dynamic pricing for each flight in the panel, in particular analysing the changes in these variables observed between pairs of “equivalent” flights. Our results show that overall, both average fares and the intensity of dynamic pricing decreased in 2007. More than one-third of flights saw a price reduction of more than 10%. Now that it has become the dominant low-cost carrier in Europe, Ryanair appears to be softening its dynamic pricing activities on existing routes, typically employed to stimulate additional touristic demand. Thus, booking in advance becomes relatively more expensive.     

Low-cost pricing strategies in leisure markets

The practice of dynamic pricing typical of low-cost carriers is generally regarded as a form of price discrimination between “leisure” and “business” travellers on a single flight or route. The same may not be true across different routes because of the different incidence of business travellers. If price increases in the 15 days prior to departure are meant to discriminate business demand, leisure demand should account for earlier price variations. In the present study, we used a database containing the daily fare over the 3 months prior to each flight operated by easyJet during 2009. For each route, we defined the “leisure index” as the difference between the price rates of change during the 90 days and 15 days prior to departure. Overall, “business” routes had lower average prices per km, while “leisure” routes showed less dynamic price behaviour, with higher minimum and lower maximum prices per km.     

Multi-dimensional price elasticity for leisure and business destinations in the low-cost air transport market: Evidence from easyJet

This study investigates the price elasticity of demand in the European low-cost carrier (LCC) industry by analysing Internet fares for all easyJet flights departing from the Amsterdam Schiphol airport towards 21 European destinations between March and September 2015. Results suggest that the price elasticity of demand greatly varies across different dimensions, ranging from −0.535 for the business-oriented route of Hamburg to −1.915 for the leisure-oriented route of Split. Price elasticity is also found to be higher for reservations made more days in advance, for reservations and departures occurring on weekends, and for flights taking off during lunchtime and in the summer period. All results are consistent with the different behaviours of leisure and business passengers and the ongoing increase in the business component of the LCC passenger mix.     

The impact of terrorism on European tourism

This paper estimates the influence of terrorist attacks on European tourism through the short-term post hoc response of the airline industry and passengers. We use a seasonally-adjusted ARMA-GARCH methodology on unique datasets that examine changes in tourism as measured by ASKs, seats filled and changes in both fares and revenues. Traffic flows are found to fall despite significant fare reductions; however, this response varies substantially based on the flight origin and ticket-type purchased. We found that business travel slows substantially due to duty of care legislation for corporate transport. While we found evidence indicating substantial airline fare reductions, in the majority of investigated cases this response was unable to mitigate substantial reductions in passenger demand and flows across varying ticket types.     

Weekend vs. midweek stays: Modelling hotel room rates in a small market

Using a hedonic model, we estimate the willingness to pay for different hotel characteristics for a small market environment. We uniquely collected a data set from a meta-booking engine including their detailed customer review ratings compiled from numerous individual hotel search engines. We argue that meta-search engines are well suited to gather prices to be used in hedonic models. In our estimation, we distinguish hedonic models for single room stays during the week potentially relevant for business travellers and double room stays during the weekend intended for leisure. Important determinants of hotel room prices are popularity ratings (derived from customer reviews), the hotel star rating, weeks of advance booking, and certain hotel characteristics such as express checkout, room service, or Internet access. A number of important characteristics such as wellness offers or wireless Internet in the rooms are insignificant pointing to the conclusion that these may be regarded as standard attributes and do not fetch additional economic value in terms of higher consumer willingness to pay.     

Bleisure: motivations and typologies

ABSTRACT

The theme of motivation in travel and tourism research has been largely dominated by a leisure focus and has consequently failed to reflect the changing landscape of business travel. This paper focuses on exploring the motivations of different types of “bleisure travelers”: individuals who combine leisure with professional business obligations when abroad. We employ a multi-disciplinary mixed-methods approach, using photo-elicitation to identify and describe five types of bleisure. As existing theories of tourist motivations have mainly been developed in a leisure context, they fail to fully capture the nuanced scope and subtle context of business and leisure motives. We therefore draw upon experiential learning, boundary-less career theory, expectancy theory, and social capital theory in order to put forward contemporary insights on the nexus between business and leisure tourism.     

Dereifying family leisure: An examination of women's and men's everyday experiences and perceptions of family time

Abstract

The dominant ideologically based view of family leisure as fun for all may obscure the work associated with family activities and the unequal distribution of such work. In this time‐budget and interview study, the time that 46 families spent in family activities was analyzed by examining how much of this time was work and how much was leisure from the parents’ viewpoint. The data show that family activities were often experienced as work or involved a work component. Moreover, the mothers were significantly more likely than the fathers to experience family time (with spouse present) and time with children (with spouse absent) as work and less likely to report these situations to be leisure, x²(3, N = 728) 65.07, p < .01, and x²(3, N = 510) 34.93, p < .01, respectively. Thus, although family activities have some positive benefits and are valued by parents, they do involve work and this work is unequally divided between women and men. The contradictory aspects of family leisure, especially for women, are discussed in terms of the ethic of care as well as the ideology of familism.     

The reaction of U.S. hospitality stock prices to Fed policy announcements

This paper is an event study analysis of the reaction of daily U.S. hospitality stock prices to announcements of Federal Open Market Committee decisions concerning the federal funds target rate (FFTR). The study first identifies two components of changes in the FFTR (ΔFFTR), namely the expected and the unexpected (or surprise) components. The surprise component that is not yet priced into the market can be calculated from the change in the federal funds futures rate. According to the efficient market hypothesis that stock prices should have already reflected all information available in the market, it is hypothesized that hospitality stock prices should respond only to the surprise component. Test results support the hypothesis. Except for restaurant index, the responses of airline, gambling, hotel and travel and leisure stock indices to the surprise component of ΔFFTR are highly significant. The corresponding responses to the actual ΔFFTR and the expected component, in contrast, are statistically insignificant.     

Improving revenue performance with third-degree price discrimination in the cruise industry

The leisure cruise industry has enjoyed high levels of growth for nearly five decades due in part to traveler interest in the cruise experience, but also to relatively lower pricing. Although revenue management of cruise fares is now standard practice, there are untapped opportunities to improve yields through data-driven market segmentation and third-degree price discrimination. This paper uses a finite mixture modeling approach to develop, empirically validate, and compare pricing models. By unveiling segments of travelers based on individual attributes, third-degree price discrimination can improve target marketing, the timing and appeal of price discounts, and the matching of variable demand with fixed, though differentiated, room supply. Empirical results from running thousands of simulations with pricing data from one of the world’s largest cruise lines show that the segmentation analysis using third-degree price discrimination can increase fare revenue more than four percent. The modeling approach used in this research extends the emerging literature on revenue management in the cruise industry and offers meaningful managerial implications for advanced pricing tactics and revenue management.     

Rethinking Internal Consistency in Cronbach's Alpha

Stress is one byproduct of hectic and busy lives. Therefore, examining active living and leisure in relation to stress and coping offers an important area of study. This paper presents key findings from a multi-year qualitative study of stress and coping. A series of focus groups were conducted with diverse residents of a western Canadian city including: (a) Aboriginal individuals with diabetes, (b) individuals with disabilities, and (c) people who identified as gay or lesbian. The findings emphasized that active leisure is more than physical activity, and that less physical forms of leisure should not be undervalued in the conceptualization of active living and leisure. Coping with stress using active leisure encompassed a wide range of meanings (e.g., spiritual, social, cultural, altruistic, empowerment).     

‘Women Doing Friendship’: an analysis of women's leisure as a site of identity construction,empowerment and resistance

Heavily subsidized entrance charges for public sport and recreation facilities are a central component of public leisure policy. This policy is based on the assumption that the cost of entrance represents a major obstacle to participation for a range of social groups. This article reports on a study (sponsored by the Scottish Sports Council) which examined the impact of increased entrance charges at a number of sports centres. Drawing on user and household surveys it suggests that, at current levels, the cost of entrance is an absolute barrier for a small number of people. However among committed participants it may act as a relative barrier by reducing the frequency of their participation. The data suggests that compared with other forms of leisure, sports participation is relatively cheap and that constraints on participation are more likely to be related to cultural attitudes underlying a lack of interest or life-style factors which limit free time available for sports and physical recreation.     

Information search behavior of Hong Kong's inbound travelers‐a comparison of business and leisure travelers

Abstract

The purpose of this study is to examine the information search behavior of Hong Kong's inbound tourists, in particular business and leisure travelers. The study clearly shows that business and leisure travelers demonstrate different information search behavior. ‘Personal experience,’ ‘Travel agency/tour company,’ ‘Airlines’ and the ‘Internet’ are most frequently relied upon by business travelers in searching for travel information, while leisure travelers prefer ‘Travel agency/tour company,’ ‘Friends or relatives,’ ‘Travel guide books,’ and ‘Personal experience.’ The study also reveals that the total number of information sources used and the length of pre‐trip planning lead‐time are significantly different between these two groups of travelers. First time travelers also have a longer pre‐trip planning lead‐time than repeat travelers. Furthermore, business and leisure travelers perceive the levels of influence of several information sources, including ‘Corporate travel departments,’ ‘Friends or relatives,’ ‘Travel guide books,’ and the ‘Internet,’ differently. These information sources were classified into five different dimensions, including ‘Media,’ ‘Neutral,’ ‘Retail,’ ‘Interpersonal,’ and ‘Personal experience.’ Analysis based on travelers' purpose for traveling and demographic information was performed. Leisure travelers perceive the level of influence of ‘Neutral’ sources as significantly higher, and those with lower household incomes perceived the level of influence of ‘Personal experience’ as lower. The results of this study will allow marketers in Hong Kong to better understand travelers’ information search behavior so that they can more effectively tailor their marketing strategies to these two major markets.     

Relation between intrinsic motivation and boredom in leisure time

Abstract

The present investigation replicated and extended an earlier finding of the negative relation between intrinsic motivation in leisure behavior and boredom in leisure time (Iso‐Ahola & Weissinger, 1987). Secondary analysis of data from 474 college undergraduates was used to construct a regression model of boredom. Results indicate that the self‐determination component of intrinsic leisure motivation explained the greatest portion of boredom variance (R = .38). Other variables entering the regression equation, in descending order of variance explained: competence, leisure ethic, age, and leisure repertoire (total R² = .52). Gender was not a significant predictor of boredom in leisure time. Results suggest that boredom in leisure time is usefully conceptualized as a disruption of the intrinsic motivation process.     

Service Recovery Readiness in Australian Hospitality and Leisure Operations

ABSTRACT

Hospitality and leisure operations across Australia have experienced phenomenal growth over the past few decades. This growth can be attributed to globalisation, deregulation, increased household disposable income, and technological advancements. As organisations continue to strive for a competitive edge, increased attention is given to consistency and reliability of service delivery. However, given the significant human element in the production and consumption of services, mistakes are inevitable (albeit not intentional). Service recovery is therefore a central ingredient in maintaining quality of service delivery. It facilitates customer satisfaction, increases loyalty and repeat patronage, and fosters positive word-of-mouth recommendation. The present paper develops an integrated model of the key concepts of service delivery-illustrating the importance of the relationships among service quality, empowerment, and service recovery. To obtain a better understanding of the importance that organisations place on service recovery, an exploratory study is presented. This consisted of interviews and questionnaires across selected hospitality and leisure operators in Australia. The findings show that service recovery is viewed as an important component of business practices. However, there are noticeable gaps-particularly in relation to organisational readirecovery.     

Leisure styles: A hidden core

Abstract

Factor analysis has been employed in a number of North American and European studies to categorize leisure activities according to participation patterns. The resulting factors have been the basis of proposed labels for leisure styles. Since the results of the factor analyses have been found to vary with the relative heterogeneity of samples and activities studied, comparison of previous findings with a more varied sample and activity list is indicated. With an NORC national sample and participation measured in a diverse list of leisure activities, factor analysis was completed and stepwise multiple regression used to measure the relationship of the resulting factors to age, sex, and social position indices. The factors do not support a neat or clearly differentiated set of activity groupings. Further, a set of activities with high participation rates did not appear in any factors or vary systematically by age, sex, or social position. Support is given to a model that suggests that adult leisure chores begin with a common core of accessible and informal activities.     

Cultural Commonality and Specificity in Japanese and Euro-Canadian Undergraduate Students' Leisure Experiences: An Exploratory Study on Control and Positive Affect

Accumulated cross-cultural research indicates that North Americans typically emphasize primary control (e.g., changing the environment) and high-arousal positive affect (e.g., enthusiasm), whereas East Asians typically emphasize secondary control (e.g., adjusting oneself, accepting the environment) and low-arousal positive affect (e.g., calmness). Therefore, the purpose of this exploratory experience sampling method study was to examine cultural similarities and differences in Japanese (n = 41) and Euro-Canadian (n = 15) undergraduate students' control and positive affect as leisure experience. Results indicated that during leisure versus non-leisure participation, (a) both Japanese and Euro-Canadians experienced primary control and high-arousal positive affect more and secondary control (acceptance) less, and (b) Japanese alone experienced secondary control (adjustment) and low-arousal positive affect more. This cross-cultural study contributes to the leisure studies field, both theoretically and practically, by identifying cultural commonality and specificity in leisure experiences as well as leisure's potential role in enhancing psychological well-being.     

Leisure Diversity as an Indicator of Cultural Capital

The diversity of activities in a repertoire of leisure is a variable shown to have considerable impact on the quality of leisure and beneficial personal outcomes, and it is proposed as one important indicator of cultural capital. Theoretical perspectives on cultural capital indicate the importance of education in preparing individuals for broad patterns of leisure consumption in addition to status attainment. Contemporary advances demonstrate that status attainment cannot be equated with high cultural consumption and that broadly omnivorous leisure pursuits may be more valuable to social actors. Role attachment theory and disengagement theory are additionally explored as possible theoretical explanations that assist in predicting leisure diversity that is highly patterned by employment and one's age. The number of different leisure experiences that constitute an individual's leisure repertoire is expected to change throughout the life-course as needs for cultural capital vary and as demands in paid and domestic work change. Tobit models of leisure diversity are proposed using American Time Use Survey (ATUS) data. Findings indicate that leisure diversity is impacted by ethnicity, recent immigration, age and socio-economic status, and theoretically relevant conditional relationships are explored.     

Global trends in length of stay: implications for destination management and climate change

Abstract

Length-of-stay (LOS) is a key parameter in destination management that determines the number of guest nights relative to arrival numbers, with concomitant repercussions for revenue generation and other performance indicators. This article investigates the development of LOS for 32 destinations in developed and emerging economies as well as Small Islands and Developing States (SIDS). The analysis is based on UNWTO data for 478.5 million international tourist arrivals, or about 40% of the global total in 2015, for the years 1995–2015. Results show considerable differences in LOS between destinations, with a global trend of falling LOS, by 14.8% over the study period. However, in individual destination countries, LOS was found to be increasing. Analyses of LOS trends reveal that these can neither be explained by distance–decay relationships nor business to leisure arrival ratios. Results are discussed with regard for destination management and revenue optimisation, transport infrastructure needs, as well as sector greenhouse gas emissions.