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The Impact of the Post-Liberalisation Growth of LCCs on the Tourism Trends in Spain

Author

Listed:
  • Eugeni Aguiló

    () (Universitat de les Illes Balears)

  • Belen Rey

    () (Complutense University of Madrid)

  • Jaume Rosselló

    () (Universitat de les Illes Balears)

  • Catalina M. Torres

    () (Universitat de les Illes Balears)

Abstract

This paper describes the basic characteristics of low cost companies (LCCs) and their expansion in Spain, one of the most popular tourist destinations in the world according to the World Tourism Organization. Using a demand perspective, the evolution of LCCs and the main implications for the tourism marked between 2000 and 2005 are analysed. The evident tendency of Low-Cost companies towards a marked growth in the number of passengers is contrasted with the evident stagnation of traditional or full service companies. The results of the analysis also show that highly significant trends related to the development of LCCs include the growing use of the Internet as an information search engine and tool for booking and paying for tourist services, the substitution of traditional holiday packages (travel and transport) for direct booking systems and a reduction in the length of stays at a destination.

Suggested Citation

  • Eugeni Aguiló & Belen Rey & Jaume Rosselló & Catalina M. Torres, 2007. "The Impact of the Post-Liberalisation Growth of LCCs on the Tourism Trends in Spain," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 39-60, January-F.
  • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:39-60
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    File URL: http://www.rivistapoliticaeconomica.it/2007/gen-feb/BelenRey.pdf
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    References listed on IDEAS

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    1. Kenneth J. Button, 1996. "Aviation Deregulation In The European Union: Do Actors Learn In The Regulation Game?," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 70-80, January.
    2. Gillen, David & Morrison, William, 2003. "Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors?," Journal of Air Transport Management, Elsevier, vol. 9(1), pages 15-23.
    3. Javier Capó Parrilla & Antoni Riera Font & Jaume Rosselló Nadal, 2006. "The Accommodation Determinants of Seasonal Patterns," CRE Working Papers (Documents de treball del CRE) 2006/01, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Feb 2006.
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    Citations

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    Cited by:

    1. Bakhat, Mohcine & Rosselló, Jaume, 2013. "Evaluating a seasonal fuel tax in a mass tourism destination: A case study for the Balearic Islands," Energy Economics, Elsevier, vol. 38(C), pages 12-18.
    2. repec:eee:touman:v:43:y:2014:i:c:p:70-88 is not listed on IDEAS
    3. Rey, Belén & Myro, Rafael L. & Galera, Asun, 2011. "Effect of low-cost airlines on tourism in Spain. A dynamic panel data model," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 163-167.
    4. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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