Hanlon examines the factors affecting passenger demand. The three fundamental factors are incomes, fares and service levels (number of flights and routes). “Broad estimates of aggregate elasticities imply that demand is highly elastic with respects to income, rather less elastic with respect to fares and relatively inelastic with respect to service levels.” (Hanlon, 1999, p.16).
Low cost carriers (LCC) often set up bases in nearby countries as their brand awareness becomes more established. According to the “Mega-trends of tourism in Asia Pacific”, low cost carriers would become one of the king makers of booming tourism (World Travel Organisation, 2006). LCC aim at stimulating demand particularly from fare conscious leisure and business travelers to widen existing markets or to develop markets neglected by competitors. For instance, LCC open more routes and offer flights at a higher degree of frequency.
The emergence of LCC has created a gradual evolution in European tourism. According to an article – Budget airlines have transformed tourism in Europe (Hotel Marketing, 2006) Statistics show that in 1994 less than 3 million passengers used LCC in Europe, by 1999 this figure increased to 17.5 million and 85 million in 2003, and a year later there was a further rise of 24% to 107 million.
Hanlon examines the factors affecting passenger demand. The three fundamental factors are incomes, fares and service levels (number of flights and routes). “Broad estimates of aggregate elasticities imply that demand is highly elastic with respects to income, rather less elastic with respect to fares and relatively inelastic with respect to service levels.” (Hanlon, 1999, p.16).
Low cost carriers (LCC) often set up bases in nearby countries as their brand awareness becomes more established. According to the “Mega-trends of tourism in Asia Pacific”, low cost carriers would become one of the king makers of booming tourism (World Travel Organisation, 2006). LCC aim at stimulating demand particularly from fare conscious leisure and business travelers to widen existing markets or to develop markets neglected by competitors. For instance, LCC open more routes and offer flights at a higher degree of frequency.
The emergence of LCC has created a gradual evolution in European tourism. According to an article – Budget airlines have transformed tourism in Europe (Hotel Marketing, 2006) Statistics show that in 1994 less than 3 million passengers used LCC in Europe, by 1999 this figure increased to 17.5 million and 85 million in 2003, and a year later there was a further rise of 24% to 107 million.
การแปล กรุณารอสักครู่..