Analyzing factors affecting charter flight service demand: A case of Taiwan

Abstract

Global charter flight demand remined relatively stable over the last decades, and international charter flight is an integrated product of the aviation and tourism industries. To better understand charter flight tourism in Asia, this study analyses key reasons affected Taiwan’s charter flight demand from Japan, South Korea, Malaysia, and Singapore during the period 2009‒2018, with a consideration of aviation- and tourism-related variables. Empirical results show that the reduction in scheduled flight aircraft size stimulated new charter flight demand to Taiwan, offsetting the negative effects caused by scheduled seat increment to a certain degree. This study contributes to literature by exploring the impact of scheduled flight service availability on charter flight demand, and further enriches our understanding of the impact of scheduled flight services on international tourist arrivals in terms of aircraft size. Importantly, it has implications for policymakers and stakeholders involved in charter business, assisting them in facilitating aviation and tourism recovery during the post-COVID-19 era.