An exploration of policy, product developments, innovation and consumption patterns:the case of tourism and airline industries in Cyprus

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An exploration of policy, product developments, innovation and consumption patterns:the case of tourism and airline industries in Cyprus

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Title: An exploration of policy, product developments, innovation and consumption patterns:the case of tourism and airline industries in Cyprus
Author: Liasidou , Sotiroula
Advisor: Professor Tim Coles, Professor Gareth Shaw
Publisher: University of Exeter
Date Issued: 2009-02-04
URI: http://hdl.handle.net/10036/69019
Abstract: This study aims to explore policy implications, production and consumption processes between the airline and tourism industries. In particular, policy initiatives, product developments, innovation and consumption patterns are taken into consideration in order to identify the relationship between the two industries within the context of Cyprus. The airline industry, after the implementation of liberalization, has changed considerably in terms of market size, type of airlines and operations. In the case of destination management, innovation and policy planning are key parameters of success. Additionally, new business production methods are imperative, given the emergence of a ‘new-tourist’ who is educated, seeking shorter breaks and more frequent and cheaper trips in unique and unexplored destinations. Both quantitative and qualitative methods of analysis are employed. In particular, 26 interviews of ‘power-elite’ policymakers and stakeholders in Cyprus are used to explore policy implications for the identification of implementation outcomes and their impact on product developments and innovation. Furthermore, 300 self-administered questionnaires were distributed to British travellers to Cyprus, so as to identify the role of the airlines and the extent of the importance attributed to destination. The results of the study suggest a gap in the relation of the tourism and airline industries’ interaction at policy level, outcome, and implementation. More specifically, the airline policy enables the industry to become more adaptive and creative, and innovation is depicted via low-cost carriers (LCCs). The tourism industry has developed a policy that reflects the post/neo-Fordism trends of consumption and production, which refers to niche products. However, there is a dearth of policy theory and implementation, with consistent failures and delays. Thus, tourism is at the stage of renovation without essential innovation in contrast to the airline industry, which is a leader, and a proponent of innovation. In terms of consumption, Factor Analysis suggests that British tourists tend to book their holiday trips based on three categories of airline attributes: ‘Customer service’, ‘Price-sensitive & Internet’ and ‘Selection in travel behaviour’. Cluster analysis suggests three main categories of tourists, namely, ‘Traditional’, ‘Demanding/Opportunists’ and ‘Ambivalent’. The results confirm that consumers have changed and tourism destinations must be able to adapt to their demands and to offer a variety of services and products in order to survive in a competitive global market. In the case of the airline industry and holiday trips, convenience and the airport that the airline is flying from is more important than the cost of the ticket.
Type: Thesis or dissertation
Keywords: tourism policyconsumption patternsinnovationneo-Fordismproduct developmentcluster analysisfactor analysisairline policyCyprus


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