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Have the major forces driving leisure airline traffic changed?

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  • Graham, Anne

Abstract

Here, we examine the major forces that are driving leisure airline traffic to assess whether these have changed in recent years. Initially this is undertaken by considering global patterns of airline and tourism demand and then by a more detailed investigation of the UK situation. The research indicates that airline demand is becoming less sensitive to income changes and also that the share of income spent on air travel is not showing much growth. Both of these suggest that airline demand may be becoming more mature, with growth being increasingly driven by price reductions rather than income changes. Moreover, evidence from the UK shows that changing customer preferences, and subsequent industry developments to accommodate these, appear to be having a significant impact on the demand for different types of leisure air trips.

Suggested Citation

  • Graham, Anne, 2006. "Have the major forces driving leisure airline traffic changed?," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 14-20.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:1:p:14-20
    DOI: 10.1016/j.jairtraman.2005.09.002
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    1. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    2. Williams, George, 2001. "Will Europe's charter carriers be replaced by “no-frills†scheduled airlines?," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 277-286.
    3. Graham, Anne, 2000. "Demand for leisure air travel and limits to growth," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 109-118.
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