How Does Low-Cost Carriers Influence Asian Tourism

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How Does Low-Cost Carriers Influence Asian Tourism

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Write a paper describing how Does Low-Cost Carriers Influence Asian Tourism

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Studies show mixed results about the impact of LCC on tourism demand in the Asian market, although more studies point to a positive impact. For example, Chung & Whang (2011) reported an increase in the number of tourists on Korean Jeju Island. The same result was established by Graham & Dennis (2010) who reported a surge in tourists going to Malta. In a study to determine the impact of LCC on traffic flow, Zhang & Lu (2013) established that apart from the low prices, travelers prefer LCC due to their large network in regional destinations, and brand is not a priority influencing their flight choices. Focusing on China’s case, Zhang & Lu (2013) observed that Chinese tourists value punctuality and reliability offered by LCCs, a reason why the number of tourists in regional destinations has increased over the years. Bilotkach et al. (2019) investigated the causal impact of LCC on the international passenger from between 30 large Asian airports. The results showed that the impact of LCC on the international flow of passenger is majorly positive. However, the researchers observed a larger impact for short-distance routes compared to larger distances. The researchers attributed the disparity to the duration factor: LCCs’ attractiveness increases with a decrease in distance. However, the increase in the number of LCCs does not result in a large volume of international travelers as the FSCs are more preferred for long distances. These findings reveal that tourists in the regional market prefer LCCs for short-to-medium distances because LCCs would readily reduce the travel time, as opposed to long distances which would require more comfort and amenities.

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