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Impacts of International Airline Alliances on Tourism

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  • Clive L. Morley

    (School of Management, RMIT University, GPO Box 2476V, Melbourne, Victoria 3001, Australia)

Abstract

International airline alliances have the effect of improving the efficiency and services of airlines, by, for example, lowering operating costs and making connections easier. They can thus lead to important pay-offs for tourists in terms of service improvements and lower fares. There is, however, a danger of alliances reducing competition, leading to increases in fares. The net balance of costs and benefits to tourists is dynamic, partially unquantified, and not as certain as some studies conclude. There is some economic evidence that, generally, air fares fall as a consequence of alliances, but perhaps not by the full extent of the realized cost savings. At the same time, alliances between formerly competing airlines on a route reduce competition, resulting in fewer flight services and higher fares.

Suggested Citation

  • Clive L. Morley, 2003. "Impacts of International Airline Alliances on Tourism," Tourism Economics, , vol. 9(1), pages 31-51, March.
    • Handle: RePEc:sae:toueco:v:9:y:2003:i:1:p:31-51
    DOI: 10.5367/000000003101298259
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    References listed on IDEAS

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    1. Oum, Tae Hoon & Park, Jong-Hun, 1997. "Airline alliances: current status, policy issues, and future directions," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 133-144.
    2. Park, Namgyoo K. & Cho, Dong-Sung, 1997. "The effect of strategic alliance on performance," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 155-164.
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    Cited by:

    1. Tchouamou Njoya, Eric, 2013. "Air Transport and Destination Performance – A case study of three African countries (Ethiopia, Kenya and South Africa)," MPRA Paper 48017, University Library of Munich, Germany.
    2. John F. O'Connell & David Warnock-Smith, 2012. "Liberalization and Strategic Change in Air Transport: An Examination of Current and Future Variations in Tourist Traffic to and from Egypt Resulting from Policy Changes at EgyptAir," Tourism Economics, , vol. 18(4), pages 845-870, August.
    3. 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.
    4. Papatheodorou, Andreas, 2021. "A review of research into air transport and tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    5. Bulatovic, Iva & Papatheodorou, Andreas, 2023. "Civil aviation and tourism demand in Montenegro: A panel data approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(1), pages 25-36.
    6. Assaf, A. George & Josiassen, Alexander, 2012. "European vs. U.S. airlines: Performance comparison in a dynamic market," Tourism Management, Elsevier, vol. 33(2), pages 317-326.
    7. Clive L. Morley, 2007. "Research Note: Implications for Regional Destinations of New Airline Strategies," Tourism Economics, , vol. 13(3), pages 475-480, September.

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