Air Transport and Tourism: Interrelationship, Operations and Strategies

493 Pages·2021·11.235 MB·English

by  M.R. Dileep, Ajesh Kurien

Air Transport and Tourism
Air Transport and Tourism: Interrelationship, Operations and Strategies is a compre-
hensive textbook covering all major aspects of air transport from operational and
managerial perspectives, as well as exploring the intricate relationship that exists be-
tween the air transport and tourism industries.
The book introduces and provides in-depth coverage of the complexities of the
airline industry and the tourism industry and the ways in which they are connected
and impact on each other, for example, the destination–airport–airline nexus, and
the roles of air transport and airlines in tourism and vice versa. Emphasis is placed on
current and future trends, the impact of COVID-19, sustainability and environmental
challenges throughout. Comprehensive coverage of airline operations, strategic man-
agement and planning, airport operations and air transport information technology
is also provided, offering a practical viewpoint on these vital aspects of the subject.
This will be the ideal introductory textbook for students of tourism and hospitality
studying courses in aviation and air travel.
M.R. Dileep is a noted tourism academic, author and columnist. He has been an aca-
demic in travel and tourism for over two decades, working as Vice-Principal at Pazhas-
siraja College (University of Calicut, Kerala, India), and worked with the Ministry of
Higher Education (CAS Salalah), Sultanate of Oman, and as Head of Tourism at Kerala
Institute of Tourism and Travel Studies (KITTS). He has written a number of research
publications and conference presentations and six books. His qualifications include
MTA, MPhil, PhD and IATA Diplomas in Air Transport and Cargo.
Ajesh Kurien is an expert in airport ground handling with over 15 years of experi-
ence in the area and is currently working as Operations Trainer for National Aviation
Services (NAS), Kuwait, the fastest-growing aviation services provider in the Middle
East, India and Africa. He was involved in the design and development of the Pas-
senger Ground Services Course for IATA. He holds a Master of Tourism Management
from Madurai Kamaraj University, Tamil Nadu, India, and a diploma in IATA air fares
and ticketing and has completed IATA Advanced Train the Trainer Course and IATA
Instructional Techniques Course.

Air Transport and
Tourism
Interrelationship, Operations
and Strategies
M.R. Dileep and Ajesh Kurien
First published 2022
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 M.R. Dileep and Ajesh Kurien
The right of M.R. Dileep and Ajesh Kurien to be identified as authors of this work has
been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs
and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in
any form or by any electronic, mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without intent to
infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record has been requested for this book
ISBN: 9780367683269 (hbk)
ISBN: 9780367683207 (pbk)
ISBN: 9781003136927 (ebk)
DOI: 10.4324/9781003136927
Typeset in Frutiger
by codeMantra
Contents
List of figures xvii
List of tables xix
Preface xxii
Acknowledgements xxv
1 Air transport and tourism: an introduction 1
1.1 Introduction 1
1.2 Air transportation 3
1.3 Evolution of air transportation 4
1.4 Tourism: a phenomenon emerges out of travel 7
1.5 Evolution of tourism 8
1.6 Transportation: a vital element in the tourism system 10
1.7 Symbiotic relationship between air transport and tourism 12
1.8 Air transport events that spurred the growth of tourism 13
1.9 Increasing travel propensity 15
1.10 Conclusion 17
Sample questions 17
Essay type questions 17
Suggested readings 18
2 Air transport 19
2.1 Introduction 19
2.2 Air travel: growth 21
2.3 Aviation 25
2.4 Types of aviation 28
2.4.1 Civil aviation 28
2.4.2 Military aviation 31
2.5 Air transportation system 33
2.5.1 Airlines 33
2.5.2 Airport 34
2.5.3 Air navigation services 34
2.5.4 Freight forwarder 34
2.5.5 Governments 34
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Contents
2.5.6 Passengers and shippers 35
2.5.7 Aircrafts and aircraft manufacturers 35
2.6 Conclusion 35
Sample questions 36
Essay type questions 36
Suggested readings 36
3 Tourism: an introduction 38
3.1 Introduction 38
3.2 What is tourism? 39
3.3 Leisure and business tourism 43
3.4 Tourism demand 44
3.5 Tourism industry: the structure and components 46
3.5.1 Destination and attractions 47
3.5.2 Government organizations 48
3.5.3 Intermediaries 49
3.5.4 Transportation 51
3.5.5 Accommodation/hospitality 51
3.5.6 Other elements 52
3.6 Conclusion 52
Sample questions 53
Essay type questions 53
Suggested readings 54
4 Trends in air transport and the influence on tourism 55
4 .1 Introduction 55
4.2 Air transport: a global industry with immense
economic potentials 56
4.3 Passenger traffic flow: Asia gaining strength 58
4.4 “Emerging Markets and Developing Economies” (EMDE)
records higher prospects 60
4.5 Technology revolutionizes traveller experience 61
4.6 From regulated pricing to dynamic and unbundled pricing 63
4.7 Travellers have wider options for product access 63
4.8 LCCs rule the skies 65
4 .9 Upholding hypermobility 66
4.10 From monopoly to oligopoly 67
4.11 Profit enhancement through yield/revenue
management 67
4.12 Tickets vanished 68
4.13 Highest safety and security standards 68
4.14 Hybridization of airline business models 70
4.15 Air transport turned to be the largest contributor
in climate change 71
4 .16 Consolidation continuing 71
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Contents
4.17 Alliances strengthening network carriers 74
4.17.1 Benefits of alliances for the travellers 77
4.18 Conclusion 77
Sample questions 78
Essay type questions 79
Suggested readings 79
5 COVID-19: impacts on tourism and air transport 80
5.1 Introduction 80
5.2 Air transport, tourism and crisis 81
5.3 Air transport sector 82
5.4 Impacts of COVID-19 crisis 83
5.4.1 Plummeting demand 83
5.4.2 Loss of jobs 85
5.4.3 Revenue decline 85
5.4.4 Financial support 86
5.5 “New normal” in air transport: trends and strategies 87
5.6 Tourism demand slump and recovery 92
5.7 Transformation and innovations 93
5.7.1 Virtual tours and immersive tours 95
5.7.2 Staycation 96
5.7.3 Border miles loyalty programme 96
5.7.4 Domestic tourism push 97
5.8 Conclusion 98
Sample questions 99
Essay type questions 99
Suggested readings 99
6 Role of air transport in tourism 100
6.1 Introduction 100
6.2 Rise of new international destinations due to air transport 101
6.3 Improvised air transport supply 102
6.4 Air transport causes new forms of tourism 103
6.4.1 Short-haul city tourism 103
6.4.2 Stopover tourism 104
6.4.3 VFR 104
6.4.4 Long-haul tourism 104
6.5 Distance and air transport correlation 105
6.6 Direct air link and tourism 106
6.7 Evolution of tourism with the growth of air transport 106
6.8 Affordability stimulates tourism demand 108
6.9 The travel cost advantage 109
6.10 LCCs, travel propensity and addition of
tourism demand 110
vii
Contents
6.10.1 Domestic tourism in destinations 111
6.10.2 Regional tourism growth 112
6.10.3 Increased expenditure in destination 112
6.10.4 Addition of tourism demand 112
6.10.5 Globalization of tourism 113
6.10.6 Air transport sector to attract tourists 113
6.10.7 Air transport policy and liberalization 114
6.10.8 Offsetting seasonality 114
6.10.9 Determinant in tourist buying behaviour 115
6.11 Dependence of tourism industry over air transport 115
6.12 Business travel versus leisure travel 117
6.13 Alliances to support tourism growth 117
6.14 Air transport to enhance tourist experience 118
6.15 Airlines take part in packaging 119
6.16 Conclusion 120
Sample questions 120
Essay type questions 121
Suggested readings 121
7 Air transport regulations and tourism 122
7.1 Introduction 122
7.2 Air transport policies and tourism 123
7.3 Air transport regulation: concept and types 124
7.4 National regulations 124
7.5 National regulations and tourism 125
7.6 Bilateral regulations, Air Service Agreement (ASA) and tourism 126
7.7 Market access right 127
7.8 Tariffs 127
7.9 Freedoms of the air 128
7.9.1 First freedom of the air 128
7.9.2 Second freedom of the air 128
7.9.3 Third freedom of the air 129
7.9.4 Fourth freedom of the air 129
7.9.5 Fifth freedom of the air 130
7.9.6 Sixth freedom of the air 130
7.9.7 Seventh freedom of the air 131
7.9.8 Eighth freedom of the air 131
7.9.9 Ninth freedom of the air 132
7.10 History of bilateral regulations 132
7.10.1 Paris Conference (1919) 132
7.10.2 Madrid Convention 133
7.10.3 Havana Convention (1928) 133
7.10.4 Warsaw Convention (1929) 134
7.10.5 Chicago Convention (1944) 134
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Contents
7.10.6 International Civil Aviation Organization (ICAO) 135
7.10.7 Bermuda Convention 137
7.10.8 Montreal Convention (1999) (MC99) 137
7.11 Multilateral regulations 138
7.12 “Open skies” to stimulate tourism 138
7.13 IATA and its role in international air transport 140
7.13.1 Other efforts of ICAO 142
7.14 Conclusion 143
Sample questions 143
Essay type questions 144
Suggested readings 144
8 Airlines: a key service provider in tourism 145
8.1 Introduction 145
8.2 Airlines: a key service provider in tourism 147
8.3 Airline industry 147
8.4 Airline demand 150
8.5 Types of airlines 154
8.5.1 Scheduled airlines 154
8.5.2 International and domestic airlines 155
8.5.3 Cargo airlines 155
8.5.4 Full-Service Carriers (FSCs) and Low-Cost
Carriers (LCCs) 156
8.5.5 Hybrid airlines 160
8.5.6 Scheduled airlines and tourism 162
8.5.7 Non-scheduled air services 163
8.6 Conclusion 167
Sample questions 167
Essay type questions 168
Suggested readings 168
9 Airport 169
9.1 Introduction 169
9.2 Airport and air transport 170
9.3 Concept of airport 171
9.4 Importance of airport for tourism 173
9.5 Airport classification 174
9.5.1 Civil aviation airports 174
9.5.2 General aviation airports 175
9.5.3 Commercial airports 175
9.5.4 Military airports 175
9.5.5 Private airports 175
9.5.6 Heliports 176
9.5.7 Stolports 176
ix