Abstract
Airfares are often a major component of total travel cost, and destination choice has been closely linked with airfares. This study analyzes the impact of airline price wars on the Trans-Tasman route between New Zealand and Australia on the volume of outbound tourist flows from New Zealand. It shows how the price reduction of about 50% has drastically altered the outbound travel patterns of New Zealanders and, more indirectly, the influence of these changes on the domestic destinations within New Zealand. The availability of inexpensive flights has improved the destination choice for many New Zealanders, and domestic holidays are increasingly replaced by international ones. The former isolation due to high airfares has almost vanished, and in the process the quality of life of the traveling public has improved by widening the range of affordable destinations.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
