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Publication date: 12 September 2017

Xiaowen Fu and Hangjun Yang

With significant changes in the aviation industry, various airport–airline arrangements have been formed to achieve alternative objectives. However, no consensus has been reached…

Abstract

With significant changes in the aviation industry, various airport–airline arrangements have been formed to achieve alternative objectives. However, no consensus has been reached on such arrangements’ economic effects and the associated optimal public policy. This chapter aims to provide an interpretive review of the common types of airport–airline arrangements, the different modeling approaches used and key conclusions reached by recent studies. Our review suggests that airport–airline arrangements can take diverse forms and have been widely used in the industry. They may allow the airport and its airlines to internalize demand externality, increase traffic volume, reduce airport investment risks and costs, promote capacity investment, enhance service quality, or simply are a response to the competition from other airport–airline chains. On the other hand, such vertical arrangements, especially for those exclusively between airports and selected airlines, could lead to collusive outcomes at the expenses of non-participating organizations. The effects of such arrangements are also significantly influenced by the contract type, market structure and bargaining power between the airport and airline sectors. While case by case investigations are often needed for important economic decisions, we recommend policy-makers to promote competition in the airline and airport segments whenever possible, and demand more transparency or regulatory reporting of such arrangements. Policy debates and economic studies should be carried out first, before intrusive regulations are introduced.

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The Economics of Airport Operations
Type: Book
ISBN: 978-1-78714-497-2

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Book part
Publication date: 26 August 2020

Ante Mandić, Smiljana Pivčević and Lidija Petrić

Building on a TripAdvisor data for five Mediterranean destinations, namely, Greece, Croatia, Italy, France and Spain, this study analyses the constituents of restaurants' online…

Abstract

Building on a TripAdvisor data for five Mediterranean destinations, namely, Greece, Croatia, Italy, France and Spain, this study analyses the constituents of restaurants' online reputation and their interrelation with destination competitiveness, in particular two Travel and Tourism Competitiveness Index (TTCI) pillars, namely, Prioritisation of Travel and Tourism and Price Competitiveness.

The analysis has revealed that restaurants' online reputation is positively influenced by two factors, namely, Core elements, i.e. cooking, service and price-quality ratio, and Price. Furthermore, the restaurants' online reputation does not influence destination competitiveness (TTCI) directly, but indirectly throughout its main constituents, i.e. service and price. Price is the only variable with significant influence on overall TTCI. Within the sample of these destinations, Balkan countries, i.e. Greece and Croatia, perform very well in terms of their restaurants' online reputation. On the other hand, considering the overall TTCI rating, their competitive positions are substantially lower than those of Italy, France and Spain.

The study provides new insights into the relationship between gastronomic offer and destination competitiveness, and valuable practical implications for destination and hospitality management. Moreover, this study addresses various gaps in existing research on this topic. Specifically, it validates the reputation elements presented online using TripAdvisor data and analyses the impact of electronic Word of Mouth (eWOM) not only as the outcome variable of other constructs, as is the case in the literature, but also as a central construct of the analysis. In doing so, it extends current research on this topic and fills the gap regarding the inclusion of the supply-side stakeholder perspective, which has long been recognised as necessary in any attempts to measure competitiveness.

Details

Gastronomy for Tourism Development
Type: Book
ISBN: 978-1-78973-755-4

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