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    An Analysis of the Impact of Low Cost Airlines on Tourist Stay Duration and Expenditures

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    Publication date
    2017-09-14
    Author
    Qiu, W.
    Rudkin, Simon
    Sharma, Abhijit
    Keyword
    Low cost carriers; Tourist expenditure; Counterfactual decomposition
    Rights
    (c) 2017 The Authors.
    Peer-Reviewed
    Yes
    
    Metadata
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    Abstract
    Low cost carriers (budget airlines) have a significant share of the air travel market, but little research has been done to understand the distributional effect of their operation on key tourism indicators such as length of stay and expenditure. Using data on European visitors to the United Kingdom we demonstrate how counterfactual decompositions can inform us of the true impact of mode of travel. Passengers on low cost carriers tend to spend less, particularly at the upper end of the distribution. Budget airline users typically stay longer, though differences in characteristics of observed groups are important to this result. Counterfactual techniques provide additional valuable insights not obtained from conventional econometric models used in the literature. Illustrating an application of the methodology to policy we demonstrate that enabling respondents to extend their stay generates the greatest additional expenditure at the lower end of the distribution. We also show nationality is a significant characteristic, with important impacts across the expenditure distribution.
    URI
    http://hdl.handle.net/10454/14241
    Version
    Published version
    Citation
    Qiu W, Rudkin S and Sharma A (2017) An Analysis of the Impact of Low Cost Airlines on Tourist Stay Duration and Expenditures.
    Link to publisher’s version
    https://mpra.ub.uni-muenchen.de/id/eprint/81428
    Type
    Report
    Collections
    Management and Law Publications

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