Chapter 14: Transportation Studies

Title: Low cost carriers: threat or opportunity forEuropean tour operators? Some initial research findings

Reference: WORLD SUSTAINABLE DEVELOPMENT OUTLOOK 2006 pp. 451 - 460

Abstract/Summary: This paper seeks to examine the threat posed by Low Cost Carriers (LCCs) to the traditional Tour Operator (TO)charter sector of the European tourism industry. The paper starts with an overview of European tourism travel trends, followed by a discussion of key developments in the TO sector. The results of a survey distributed to key TOs in Europe are then presented, discussed and conclusions drawn. The extent to which TOs perceive LCCs to be a threat is shaped by their own company structurescommitments, their own performance benchmarks and the existence of a strategy regarding future product planning and product differentiation. Flexibility to adapt to meet the evolving needs of a changing travel market combined with an ability to anticipate and respond to an increasingly competitive industry environment are essential attributes for the future of TOs.

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