Low cost carriers and tourism destinations development: case study of Oporto, Portugal

Abstract

Mobility is one of the characteristics of modern society. The world today, despite the uncertainties brought by globalization is an interconnected reality of networks, whether physical or virtual. In Europe this mobility is higher than before due to the new offer of routes and frequencies of airlines, mainly of the low cost carriers (LCC).Portugal is one of the countries that grew in terms of new routes, new destinations and above all new customers with economic impacts in the regions. Over the last decade, LCC at Oporto (OPO) airport have boosted their traffic volume by approximately 260%. The evolution of OPO airport, generated by LCC, has meant that other regional airports have followed this trend and have also experienced a positive and growing net impact on their local economy.The main issue of this study is to analyse the evolution of LCC air traffic at Francisco Sá Carneiro Airport in OPO and its economic impact on this airport's area of influence. We use a cost-benefit analysis model to determine the costs, benefits and net impact of low cost routes on the development of the local economy between 2005 and 2012. In 2005 these carriers started operating at OPO Airport.Keywords: Airports, cost-benefit analysis, low cost carrier, regional development, economic impact. ResumoA mobilidade é uma das características da sociedade moderna. O mundo de hoje, apesar das incertezas trazidas pela globalização, é uma realidade interconectada de redes, sejam elas físicas ou virtuais. Na Europa, essa mobilidade é maior do que antes devido à nova oferta de rotas e frequências de companhias aéreas, principalmente das companhias de baixo custo (LCC).Portugal é um dos países que cresceu quer em termos de novas rotas, novos destinos e, sobretudo, novos clientes, gerando impactos económicos regionais. Ao longo da última década, as companhias áreas de baixo custo que operam no aeroporto do Porto (OPO) aumentaram o volume de tráfego em aproximadamente 260%. Esta evolução, gerada pelas LCC, significou que outros aeroportos regionais seguiram essa tendência e também experimentaram um impacto líquido positivo e crescente na sua economia local.Este estudo tem como principal objetivo analisar a evolução do tráfego aéreo do LCC no Aeroporto Francisco Sá Carneiro (OPO) e o seu impacto económico na área de influência. Foi utilizado um modelo de análise de custo-benefício para determinar os custos, benefícios e impacto líquido das rotas de baixo custo no desenvolvimento da economia local entre 2005 e 2012. As operadoras áreas de baixo custo começaram a operar no aeroporto OPO em 2005.Palavras-chave: Aeroportos, análise custo benefício, low cost carrier, desenvolvimento regional, impacto económico.

Urban Tourist Motivations in the City of Porto

“…Three factors stand out: (i) lower travel and local services prices; (ii) sympathy of the Portuguese people; and (iii) safety. The lower prices are due to the location close to Porto airport and the relatively low cost of living in Portugal when compared to other European destinations (Costa and Almeida, 2018;Leffel, 2018). The sympathy of the Portuguese is highlighted by differences in agencies, and Portugal was considered in 2018 the most welcoming country for expats (Southan, 2018).…”

The Liberalisation of Air Transport and the Impacts on Travel and Tourism: The Case of the Azores Archipelago

“…With this price reduction, demand increases and development opportunities arise for destinations. Fare reductions due to liberalisation are generally provided by LCCs [27][28][29][30][31][32], which, in the case of the Azores, were promoted by Ryanair and easyJet, leading flag carriers such as Azores Airlines and TAP Portugal to reduce their prices or adapt to this competition with differentiated services.…”

Tourist Satisfaction With a Destination: Evidence From Low Cost Carrier Users in Zadar County

“…Smanjenje turističke potrošnje za prijevoz u zemlji porijekla korištenjem niskobudžetnih zračnih prijevoznika dovodi do oslobađanja financijskih sredstava za neke druge turističke potrebe kao što su smještaj ili prehrana u destinaciji. Eugenio-Martin i Inchausti-Sintes (2016) utvrdili su kako putnici koji koriste niskobudžetne zračne prijevoznike imaju lating the development of other industries in the location via its acceleration power (Donzelli, 2010;Ivanović, Vučenović and Baresa, 2014;Costa and Almeida, 2018). At the same time the number of employees in airports connected by LCCs increases, which then lowers the unemployment rates and boosts the destination population income.…”