IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v21y2015i1p9-32.html
   My bibliography  Save this article

Determinants in Tourist Expenditure Composition — The Role of Airline Types

Author

Listed:
  • Berta Ferrer-Rosell

    (Department of Economics, Faculty of Tourism, University of Girona, Edifici Sant Domènec, Plaça Ferrater Mora 1, 17071 Girona, Spain)

  • Germà Coenders

    (Department of Economics, Faculty of Economics and Business, University of Girona, Campus Montilivi, 17071 Girona, Spain)

  • Esther Martínez-Garcia

    (Department of Economics, Faculty of Tourism, University of Girona, Edifici Sant Domènec, Plaça Ferrater Mora 1, 17071 Girona, Spain)

Abstract

The reduction in transportation costs when travelling with a low-cost airline (LCA) seems to have modified the composition of the trip budget. An understanding of expenditure composition when comparing LCA and legacy airline travellers is vital for destination marketers. Using micro official statistics data for air travellers to Spain in 2010 and the compositional data analysis (CODA) methodology, this study analyses the determinants of trip budget composition and its differences between airline types. The authors consider transportation expenses, as well as basic (accommodation and food) and discretionary (activities, shopping, etc) at-destination expenses. Log-ratios of budget share are fitted to a MANOVA, with travellers' attributes as explanatory factors along with the moderating effect of the airline type. Among the findings are that high-income LCA travellers spend relatively more at the destination, LCA tourists travelling with friends have a larger share of discretionary expenses, and highly educated travellers have a larger share of discretionary expenses for both airline types.

Suggested Citation

  • Berta Ferrer-Rosell & Germà Coenders & Esther Martínez-Garcia, 2015. "Determinants in Tourist Expenditure Composition — The Role of Airline Types," Tourism Economics, , vol. 21(1), pages 9-32, February.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:1:p:9-32
    DOI: 10.5367/te.2014.0434
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2014.0434
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2014.0434?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Forgas, Santiago & Moliner, Miguel A. & Sánchez, Javier & Palau, Ramon, 2010. "Antecedents of airline passenger loyalty: Low-cost versus traditional airlines," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 229-233.
    2. Carl H. Marcussen, 2011. "Determinants of Tourist Spending in Cross-Sectional Studies and at Danish Destinations," Tourism Economics, , vol. 17(4), pages 833-855, August.
    3. Chiou, Yu-Chiun & Chen, Yen-Heng, 2010. "Factors influencing the intentions of passengers regarding full service and low cost carriers: A note," Journal of Air Transport Management, Elsevier, vol. 16(4), pages 226-228.
    4. Thomas F. Cannon & Jamie Ford, 2002. "Relationship of Demographic and Trip Characteristics to Visitor Spending: An Analysis of Sports Travel Visitors across Time," Tourism Economics, , vol. 8(3), pages 263-271, September.
    5. Sarath Divisekera, 2010. "Economics of Leisure and Non-Leisure Tourist Demand: A Study of Domestic Demand for Australian Tourism," Tourism Economics, , vol. 16(1), pages 117-136, March.
    6. McLaren, Keith R & Fry, Jane M & Fry, Tim R L, 1995. "A Simple Nested Test of the Almost Ideal Demand System," Empirical Economics, Springer, vol. 20(1), pages 149-161.
    7. O’Connell, John F. & Williams, George, 2005. "Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 259-272.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emilio Gómez-Déniz & José Boza-Chirino & Nancy Dávila-Cárdenes, 2021. "Tourist tax to promote rentals of low-emission vehicles," Tourism Economics, , vol. 27(7), pages 1461-1481, November.
    2. Massidda, Carla & Piras, Romano & Seetaram, Neelu, 2020. "A Microeconomics Analysis of the Per Diem Expenditure of British Travellers," Annals of Tourism Research, Elsevier, vol. 82(C).
    3. Carolina Navarro-Lopez & Salvador Linares-Mustaros & Carles Mulet-Forteza, 2022. "“The Statistical Analysis of Compositional Data†by John Aitchison (1986): A Bibliometric Overview," SAGE Open, , vol. 12(2), pages 21582440221, April.
    4. Jorge Rojo-Ramos & Santiago Gómez-Paniagua & Juan Carlos Guevara-Pérez & Jorge García-Unanue, 2023. "Gender Differences in Adventure Tourists Who Practice Kayaking in Extremadura," IJERPH, MDPI, vol. 20(5), pages 1-16, February.
    5. Emilio Gómez-Déniz & Jorge V Pérez-Rodríguez & José Boza-Chirino, 2020. "Modelling tourist expenditure at origin and destination," Tourism Economics, , vol. 26(3), pages 437-460, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    2. Chang, Li-Yen & Hung, Shao-Chih, 2013. "Adoption and loyalty toward low cost carriers: The case of Taipei–Singapore passengers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 29-36.
    3. Sezgen, Eren & Mason, Keith J. & Mayer, Robert, 2019. "Voice of airline passenger: A text mining approach to understand customer satisfaction," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 65-74.
    4. Mikulić, Josip & Prebežac, Darko, 2011. "What drives passenger loyalty to traditional and low-cost airlines? A formative partial least squares approach," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 237-240.
    5. Hsu, Chia-Jui & Yen, Jin-Ru & Chang, Yu-Chun & Woon, Hui Kee, 2016. "How do the services of low cost carriers affect passengers' behavioral intentions to revisit a destination?," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 111-116.
    6. Cho, Woohyun & Windle, Robert J. & Dresner, Martin E., 2015. "The impact of low-cost carriers on airport choice in the US: A case study of the Washington–Baltimore region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 141-157.
    7. Nameghi, Ehsaneh N.M. & Ariffin, Ahmad Azmi M., 2013. "The measurement scale for airline hospitality: Cabin crew's performance perspective," Journal of Air Transport Management, Elsevier, vol. 30(C), pages 1-9.
    8. Milioti, Christina P. & Karlaftis, Matthew G. & Akkogiounoglou, Eleni, 2015. "Traveler perceptions and airline choice: A multivariate probit approach," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 46-52.
    9. Hunt, Jennifer & Truong, Dothang, 2019. "Low-fare flights across the Atlantic: Impact of low-cost, long-haul trans-Atlantic flights on passenger choice of Carrier," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 170-184.
    10. Avogadro, Nicolò & Malighetti, Paolo & Redondi, Renato & Salanti, Andrea, 2021. "A tale of airline competition: When full-service carriers undercut low-cost carriers fares," Journal of Air Transport Management, Elsevier, vol. 92(C).
    11. Ronal Reddy, 2021. "Reasons for changes of passenger perceptions of low cost carriers identified on social media - a case study on Jetstar Airways - A literature review," Technium Social Sciences Journal, Technium Science, vol. 19(1), pages 520-534, May.
    12. Kurtulmuşoğlu, Feride Bahar & Can, Gülin Feryal & Pakdil, Fatma & Tolon, Metehan, 2018. "Does gender matter? Considering gender of service in the airline industry," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 73-82.
    13. Berta Ferrer-Rosell & Germà Coenders & Glòria Mateu-Figueras & Vera Pawlowsky-Glahn, 2016. "Understanding Low-Cost Airline Users' Expenditure Patterns and Volume," Tourism Economics, , vol. 22(2), pages 269-291, April.
    14. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.
    15. Rajaguru, Rajesh, 2016. "Role of value for money and service quality on behavioural intention: A study of full service and low cost airlines," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 114-122.
    16. Han, Heesup, 2013. "Effects of in-flight ambience and space/function on air travelers' decision to select a low-cost airline," Tourism Management, Elsevier, vol. 37(C), pages 125-135.
    17. Akın AKPUR & Burhanettin ZENGIN, 2019. "The Concept of Low-Cost Airline Transportation: Definition and Meaning," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 5(1), pages 73-91, June.
    18. Lee, C.K.M. & Ng, K.K.H. & Chan, Hing Kai & Choy, K.L. & Tai, W.C. & Choi, L.S., 2018. "A multi-group analysis of social media engagement and loyalty constructs between full-service and low-cost carriers in Hong Kong," Journal of Air Transport Management, Elsevier, vol. 73(C), pages 46-57.
    19. Ayat Zaki Ahmed & Manuel Rodríguez Díaz, 2022. "A Methodology for Machine-Learning Content Analysis to Define the Key Labels in the Titles of Online Customer Reviews with the Rating Evaluation," Sustainability, MDPI, vol. 14(15), pages 1-31, July.
    20. Ferrer-Rosell, Berta & Coenders, GermÃ, 2017. "Airline type and tourist expenditure: Are full service and low cost carriers converging or diverging?," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 119-125.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:21:y:2015:i:1:p:9-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.