Third party ancillary revenues in the airline sector: An exploratory study

Some airlines, especially Low Cost Carriers (LCCs), have earned significant profits from revenues derived from ancillary revenues. However, to date few have been able to derive a meaningful portion of revenues from 3^rd party ancillaries. The key to increasing these revenues comes from an understanding of passenger willingness to pay for 3^rd party products/services, coupled with increasing customer awareness and consequently the all-important customer conversion. This study assesses the 3^rd party ancillary services that passengers are more willing to purchase, along with the potential offers that might increase their willingness to purchase specific 3^rd party services. A mixed methods approach was used consisting of a passenger survey and nine expert interviews. The main findings are that car hire, airport parking, and the sale of hotel rooms had the most significant associations with customer willingness to pay. It was also found that there was a significant association between specific offers and increased willingness to purchase. The 15% discount off a future flight, and to a lesser extent, hotel price guarantees were the most significant. Expert interviewees confirmed that the future sustainability of this revenue stream for airlines is centred on mobile digital devices, customer conversion, and exploiting potential market opportunities.     

Tourism and the state in Cuba: from the past to the future

It has long been recognised that nature and extent of state intervention in tourism development closely reflects the prevailing political‐economy and ideology within the destination state. This is certainly the case with Cuba which, since the 1959 revolution and despite the collapse of communism elsewhere, remains the world's only centrally‐planned economy that boasts a significant international tourism sector. Tracing the development of tourism since 1959, this paper explores the relationship between the evolution of Cuba's political‐economic structures and processes and their subsequent influence on the planning, control, development and ownership of tourism on the island. In particular, it considers the potential future of tourism in Cuba, challenging the widespread belief that, in a post‐Castro era, the island's tourism sector faces a bright future. It concludes that, even with a potential move towards market reform, significant improvements will be required with respect to the quality, value and diversity of the island's tourism product. Copyright © 2008 John Wiley & Sons, Ltd.     

The role of regional airports and air services in the United Kingdom

This paper deals with the implications of the 1998 UK transport White Paper for regional airports and air services within the wider context of the promotion of an integrated and sustainable transport system. More specifically, the discussion initially addresses the political and business context of the development of air transport in the UK regions. Secondly, the recent trends defining that development are isolated, particular attention being paid to the increasing importance of supplier-led strategies in air transport and the segmented markets served by regional airports. Finally, the three, not easily reconciled, strands, which can be identified in the White Paper’s analysis of aviation are considered. These are: air transport's relationship with sustainable development; the integration of air transport with surface modes; and the contribution of air transport to regional economic growth.     

Perspectives for a future high-speed train in the Swedish domestic travel market

Gröna tåget (the Green Train) is a research and development project with the aim to develop a high-speed tilting train concept for the Swedish and Nordic markets. Competition with other modes needs to be evaluated, especially as regards travelling times and fares, with special attention paid to domestic airlines.For new trains, gains in travelling times and lower operational costs can be expected. Model calculations of operational costs for domestic air stages and high-speed trains, respectively, show that high-speed trains have lower costs per available seat kilometer. Train operators can meet competition with fares from coaches and air carriers provided they introduce yield management. The primary competition is about travelling times. Gröna tåget would increase the train’s attractiveness and win over some travel from airlines.     

Preferences for tourist information centres in the ubiquitous information environment

The rapid development of information communication technology has encouraged tourism authorities to carefully consider the typical duties of tourist information centres (TICs), wherein visitors acquire various kinds of travel information about a particular destination. This study aims to provide useful management implications to help tourism organisations develop feasible TIC operational strategies and implement alternative services in the ubiquitous information environment. To provide a richer understanding of tourists' heterogeneous preferences for TICs, this study makes use of the stated preference choice method with a sample of South Korean domestic tourists. Despite the widespread use of personal mobile devices, our study results suggest that South Korean domestic tourists still prefer to visit various types of TICs to acquire travel information. Results indicate that the TIC visitor group is less sensitive than the non-visitor group to advanced information communication technology and more satisfied with the availability of WIFI signals to facilitate the use of personal mobile devices or laptops. Our respondents also demonstrate their preferences for some TICs constructed with container structures, whereas they showed a strong aversion to visiting booth-styled TICs inside larger buildings. Based on these findings, this study provides several management strategies to fulfil tourists' ever-changing needs.     

The future of the Olympic Winter Games in an era of climate change

The Olympic Winter Games (OWG) stands as a symbol of international cross-cultural exchange through elite-level sport. As a mega-event with a significant reliance on a specific range of weather conditions for outdoor competitions, the OWG have developed several technologies and strategies to manage weather risk. Can these climatic adaptations cope with future climate change? Based on an analysis of two key climate indicators (probability of a minimum temperature of ≤0°C, and probability of a snow depth of ≥30 centimetres with advanced snowmaking capacity), this paper examines how projected changes to climate will impact the ability of the 19 previous host cities/regions to provide suitable conditions for outdoor competitions in the future. The results indicate that while the 19 former OWG hosts all have a suitable climate in the 1981–2010 period, only 11 or 10 (low–high-emission scenarios) remain climatically suitable in the 2050s, with as few as 6 in the high-emission scenario of the 2080s. The analysis reveals that climate change has important implications for the future geography of OWG host cities/regions as well as broader implications for participation in winter sport.     

Exploring the use of travel information – identifying contextual market segmentation in Seoul, Korea

As the amount of information is rapidly growing, and ubiquitous urban environments are emerging, the question which kind of information to provide is a major challenge for commercial and public travel-information service providers alike. This paper reports the analyses of recent data, collected in Metropolitan Seoul, about the acquisition of travel information. The study applies CHAID analysis to find homogeneous segments in travel information acquisition. Findings indicate that contextual variables are crucial to explain information acquisition behaviour, depending on decision context. The implication is that both socioeconomic and contextual variables are important to better understand the acquisition (and provision) of travel information. The results have important implications for managers and policy-makers, in particular in the way they respond to dynamic, contextual market segmentation.     

Assessing customer citizenship behaviors in the airline industry: Investigation of service quality and value

Along with the emergence of a new marketing paradigm (service-dominant logic), the post-consumption behavior has been highlighted. Accordingly, the purposes of this study are to identify four types of the consumer citizenship behavior, including advocacy, feedback, helping and tolerance, and to examine two direct and indirect determinants of it. Then, a moderating effect of the air passenger-related factor (domestic vs. international trips) has been assessed on the proposed relationships. The results of this paper suggest decomposing two dimensions of service quality (intangible and tangible resources of airline services) which indirectly affect the consumer citizenship behavior via perceived value. Those passengers who took domestic trips are more likely to have the stronger relationships than travelers who carried out international trips.     

Inter-island passenger shipping in Indonesia: development of the system: Present characteristics and future requirements

The developing of inter-island passenger shipping is examined in the vast but unevenly populated Indonesian archipelago with particular attention to improvements in the transport system since 1981. The adequacy of the current network is analysed in terms of frequency of service, overall journey time and average speed. An assessment is made of the future improvements required in the inter-island passenger shipping service.     

Stated-preference analysis to estimate the domestic transport demand following the future entry of LCCs and the inauguration of the Linear Chuo Shinkansen in Japan

Using a stated-preference survey, we examine changes in air transport demand by the entry of low cost carriers into domestic service, and with the beginning of operation of the Linear Chuo Shinkansen. In order to construct a choice model, we estimate the Nested-Logit model parameters by the two kinds of travel purposes in order to consider the differences in the price-sensitivity between business and non-business travelers. Simulation results for the each targeted OD vary in the shares of each transportation mode, depending upon the travel times, the aviation network, travel purpose. Non-business travelers who are more price-sensitive are less likely to choose the Linear Chuo Shinkansen with higher fares. On the route between the metropolitan area and Kinki area, total aviation demand will increase by the entry of LCCs to/from Tokyo-Haneda airport even when the Linear Chuo Shinkansen begins operating, showing that the development of the Linear Chuo Shinkansen service will not prevent strong growth in aviation demand for the trunk domestic routes.