seminario tides - low cost

The relationship between tourism expenditure in origin and destination:

The Case of LCCs

Juan Luis Eugenio Martín

Federico Inchausti Sintes

Seminario Tides, 19th October 2012

ExordiumModel and Data

ResultsConclusion

-Exordium

Exordium: LCCs

What is a Low cost carrier (LCC)?

According to the CAA (2006):

-High density seating

-Single aircraft type

-Fast turnaround times

-Reduce cost to offer lower tickets prices

Exordium: questions

- Have LCCs increased the flow of tourism?

- CAA(2006), Young and Whang(2011), Graham and Dennis(2010), Rey et al.(2011) and Davison and Ryley(2010).

- Have they promoted economic growth in the region where they travel?

- Young and Whang(2011), Pulina and Cortés-Jimenez(2010), Vera and Ivars(2009) and Castillo-Manzano et al.(2011)

Exordium: questions

- Do LCC passengers have a different behavior in regard to traditional carrier passengers?

- Young and Whang(2011), Graham and Dennis(2010), Pulina and Cortés-Jimenez(2010).

- Do LCC passengers spend more money at destination?

Exordium: LCCs in Canary Islands

- “(…)Si no lo hacen, no tendremos más remedio que cancelar todos los vuelos en Fuerteventura a partir del próximo 31 de enero", advirtió el ejecutivo, quien recordó que Ryanair genera "enormes ingresos" gracias a los más de "250.000 pasajeros" que viajan cada año a la isla con Ryanair.” Michael Cawley, vicepresidente de Ryanair (La Provincia, 19/11/2008)

-“El cabildo de Gran Canaria ha adelantado que cerrará pronto acuerdos con Easyjet para que esta aerolínea (……) ‘debute’ para enlazar Gran Canaria con Suiza.” (residentecanario.com, 30/09/2012)


- “El perfil del turista que utiliza las compañías de bajo coste no sólo quiere ahorrar en el billete sino en todo el gasto de sus vacaciones” (Rafael Gallego, presidente de la FEAVV, en Canarias7, 16/01/2011)

- “La hipótesis que más fuerza está cobrando es que las personas que viajan en low cost tratan de ahorrarse en el billete del avión lo que luego se gastan en el destino.” Miembro del ejecutivo canario,

(Canarias7, 05/02/2011)

Tourists Arrivals to Canary Islands


Where do they stay in Canary Islands?



LCC travellers distribution (%)

5 stars 4 stars 3,2 or 1

star

Apartment Family or

friends

Other Total

Only flight (F) 0,52 1,41 1,37 4,16 9,38 2,15 18,99

(F) + Accommodation

(A) 0,6 3,26 4,29 24,29 0 2,03 34,47

(F+A) + Breakfast (B)

1,72 2,39 1,06 1,04 0 0,07 6,27

(F+A)+Half Board

(HB) 1,57 8,78 2,64 1,83 0 0,09 14,91

(F+A+HB)+Dinner

(D) 0,26 1,51 1 0,68 0 0,1 3,54

(F+A)+ All Inclusive 0,87 10,98 5,01 4,72 0 0,24 21,82

Total 5,54 28,33 15,37 36,72 9,38 4,68 100


Non LCC travellers distribution (%)

5 stars 4 stars 3,2 or 1 star Apartment Family or

friends

Other Total

Only flight (F)0,34 1,01 0,66 1,6 4,1 0,88 8,58

(F) + Accommodation

(A) 0,39 3,03 2,94 14,61 0 0,98 21,95

(F+A) + Breakfast (B)1,51 2,77 1,42 1,28 0 0,01 6,98

(F+A)+Half Board

(HB) 3,09 18,57 4,55 2,27 0 0,06 28,55

(F+A+HB)+Dinner

(D) 0,41 2,37 0,98 0,34 0 0,23 4,33

(F+A)+ All Inclusive0,97 18,92 6,82 2,6 0 0,3 29,61

Total6,7 46,68 17,36 22,7 4,1 2,46 100


LCC- Non LCC travellers distribution differences (%)


friends

Other Total

Only flight (F)0,18 0,40 0,71 2,56 5,28 1,27 10,41

(F) + Accommodation

(A)0,21 0,23 1,35 9,68 0,00 1,05 12,52

(F+A) + Breakfast (B)0,21 -0,38 -0,36 -0,24 0,00 0,06 -0,71

(F+A)+Half Board

(HB)-1,52 -9,79 -1,91 -0,44 0,00 0,03 -13,64

(F+A+HB)+Dinner

(D)-0,15 -0,86 0,02 0,34 0,00 -0,13 -0,79

(F+A)+ All Inclusive-0,10 -7,94 -1,81 2,12 0,00 -0,06 -7,79

Total-1,16 -18,35 -1,99 14,02 5,28 2,22 0,00

How many days do they remain on the islands?



LCC travelers mean nights


star

Apartment Family or

friends

Other

Only flight (F) 6,69 8,91 7,63 12,20 12,42 10,66

(F) +

Accommodation (A)7,20 7,85 8,44 9,49 10,16

(F+A) + Breakfast

(B) 6,51 6,96 6,75 7,82 9,42

(F+A)+Half Board

(HB) 7,71 8,23 8,51 8,63 9,22

(F+A+HB)+Dinner

(D) 7,10 7,62 8,82 10,12 8,98

(F+A)+ All Inclusive7,23 7,94 8,26 8,71 9,73


NLCC travelers mean nights


friends

Other

Only flight (F) 6,74 8,29 9,36 16,49 14,20 11,32

(F) + Accommodation

(A)7,28 9,00 9,89 10,87 11,36

(F+A) + Breakfast (B)

7,58 7,77 8,39 9,35 8,00

(F+A)+Half Board

(HB) 8,49 9,16 9,27 9,94 10,54

(F+A+HB)+Dinner

(D) 7,57 8,55 8,37 10,00 7,78

(F+A)+ All Inclusive

8,42 8,80 9,13 9,65 8,35


LCC-NonLCC travelers mean nights differences


star

Apartment Family or

friends

Other

Only flight (F) -0,04 0,62 -1,72 -4,29 -1,78 -0,66

(F) +

Accommodation (A)-0,08 -1,15 -1,46 -1,39 0,00 -1,20

(F+A) + Breakfast

(B) -1,07 -0,81 -1,64 -1,53 0,00 1,42

(F+A)+Half Board

(HB) -0,78 -0,94 -0,76 -1,32 0,00 -1,32

(F+A+HB)+Dinner

(D) -0,46 -0,93 0,45 0,12 0,00 1,20

(F+A)+ All Inclusive-1,19 -0,86 -0,86 -0,95 0,00 1,38

What is the travel party size?



Mean Party size (no differences between LCC and nonLCCS travelers)


star

Apartment Family or

friends

Other

Only flight (F) 2,26 2,11 1,83 2,11 1,84 2,37

(F) +

Accommodation (A)2,53 2,39 2,37 2,44 2,60

(F+A) + Breakfast

(B) 2,21 2,18 2,08 2,43 2,08

(F+A)+Half Board

(HB) 2,36 2,20 2,09 2,36 1,95

(F+A+HB)+Dinner

(D) 2,52 2,32 2,24 2,44 2,13

(F+A)+ All Inclusive

2,56 2,43 2,46 2,80 2,15

-Model

Model: definition variablesEndogenous variables: definition

exporigin Expenditure in origin per person and night

expisland Expenditure in destination per person and night

Exogenous variables: definition

income Annual income divided by 12 months

term Trimester

year Year

destination Island visited: La Palma, El hierro, Tenerife, Gran Canaria,

Fuerteventura and Lanzarote

party lower than 2 years, between 2 and 12, between 13 and 65

years, older than 65 years

people Alone, with couple, with family, friends and relative or

coworkers

motivation Main reason to travel to Canary Islands: sun and beach,

cultural, landscape, prices, safety, etc

previous visits From 1 to more than 10 times

Model: variables definitionExogenous variables: definition

p Package: flight, flight + accommodation,

Flight + accommodation + Breakfast,

flight + accommodation + half board,

flight + accommodation + all inclusive.

a Category of accommodation: Hotel 5*, Hotel 4*, Hotel

3*, Apartments, Households (friends, family), Others

(timesharing, rural housing)

pa Multiplicative variable between package and category of

accommodation

pal pa multiply by lowcost (1 if the passenger travels in

lowcost and 0 the others cases)

Model: simultaneous equations

4 2011 31 31

1 2 3 4 5 61 2009 1 1

7 4 5

7 8 9 111 1 1

i i i t it y iy h ih h iht y h h

d id r ir o io i id r o

exporigin expdestination income term year pa pal

destination party people uprevious

β β β β β β

β β β β

= = = =

= = =

= + + + + +

+ + + + +

∑ ∑ ∑ ∑

∑ ∑ ∑

4 31 31

1 2 3 5 61 1 1

7 4 5 16

7 8 9 10 111 1 1 1

i i i t it h ih h iht h h

d id r ir o io m im i id r o m

expdestination exporigin income term pa pal

destination party people motivation eprevious

γ γ

γ γ

γ γ γ

γ γ γ

= = =

= = = =

= + + + +

+ + + + + +

∑ ∑ ∑

∑ ∑ ∑ ∑

Expenditure in

origin

Expenditure in destination

Model: effect of pa and pal

Figure 1a: decrease in consumption of LCCs

tourists with respect to non-LCCs tourists

Figure 1b: increase in consumption of LCCs

tourists respect to non-LCCs tourists

Model: simultaneous equations

4 2011 31 31

1 2 3 4 5 61 2009 1 1

7 4 5

7 8 9 111 1 1

i i i t it y iy h ih h iht y h h

d id r ir o io i id r o

exporigin expdestination income term year pa pal

destination party people uprevious

β β β β β β

β β β β

= = = =

= = =

= + + + + +

+ + + + +

∑ ∑ ∑ ∑

∑ ∑ ∑

4 31 31

1 2 3 5 61 1 1

7 4 5 16

7 8 9 10 111 1 1 1

i i i t it h ih h iht h h

d id r ir o io m im i id r o m

expdestination exporigin income term pa pal

destination party people motivation eprevious

γ γ

γ γ

γ γ γ

γ γ γ

= = =

= = = =

= + + + +

+ + + + + +

∑ ∑ ∑

∑ ∑ ∑ ∑

Endogenity

Contemporary Correlations among errors

Expenditure in

origin

Expenditure in destination

Model: assumptions

2( )iVar u σ= ( ) 0i jVar u u =

2( )iVar e σ= ( ) 0i jVar e e =

( )i i iE u e σ=

( ) 0i iE u x =

( ) 0i iE e x =

( ) 0i iE u expdestination ≠

( ) 0i iE e exporigin ≠

Homokedasticity in both equations

Contemporary correlations error between both equations

Exogenous explanatory variables in both equations

endogeneity

Model: estimation methods

Simultaneous equations

context

endogeneity

Contemporary correlation

among errors

Indirect ordinary Least square (IOLS)

Instrumental variables

Two-step least squares (2SLS)

Limited information

Seemingly unrelated equations (SUR)

Three-Step Least

Squares (3SLS)

Complete information

Model: estimation problems

Does 3SLS deal with it?

Does the model has heteroskedasticity?

Model: estimation methods

Generalized method of moment (GMM)

Any of the previous estimators are a particular case of the GMM.

Thus, GMM deals with endogeneity and/or error correlations .

And, it permits Robust residual covariance matrix estimation ( ) (it deal with heterokedasticity) .∑̂

is not always positive-semidefinite.∑̂

Model: Estimation methods

Estimation method

GMM(3SLS robust)

3SLS

Robust residual covariance matrix is not achieved.

1º -3SLS estimation

2º -GMM (3SLS robust) estimation without the non significant variables in step 1º.

Misspecification vs

efficiency gain

Good specification

vs Efficiency lost

There are not certainty that the non significant variables in step 1º would not be

significant in step 2º!!!

Some element of the main diagonal of may be negative.

∑̂

21ˆ ˆ i i ii

S u z zN

′= ∑

Results

Do LCCs travelers spend more money in destination?

3SLS Regression :

Equation 1 ( origin) Equation 2 (destination)

Parameter Std. desv Parameter Std. desv

exporigin - - 0.182*** (0.068)

expisland 0.585*** (0.050) - -

Income 0.002*** (0.000) 0.001*** (0.000)

Trime2 -3.379*** (0.434) 1.421*** (0.364)

Trime3 -3.807*** (0.498) 1.122*** (0.418)

Trime4 -2.830*** (0.476) 1.078*** (0.375)

Year 2010 3.322*** (0.360) - -

Year 2011 3.015*** (0.442) - -

Germany -5.854*** (1.655) -11.063*** (1.453)

Austria 8.264*** (2.141) -9.813*** (1.507)

Belgium 2.926 (1.825) -6.408*** (1.295)

Denmark 3.651** (1.847) -9.607*** (1.287)

Spain -12.961*** (1.485) 2.920** (1.398)

Finland 2.921 (1.864) -10.471*** (1.299)

France 0.611 (1.870) -6.430*** (1.330)

The Netherlands -6.554*** (1.735) -9.525*** (1.496)

Ireland -21.804*** (1.670) 7.710*** (1.732)

Italy -2.706 (1.954) -1.754 (1.430)

Norway -5.809*** (1.733) -1.842 (1.361)

Poland -12.047*** (2.241) -0.266 (1.855)

Portugal -12.064*** (2.569) -2.097 (2.075)

United Kingdom -14.945*** (1.581) -6.932*** (1.772)

Czech Republic -1.369 (2.952) -11.989*** (2.189)

Russia -9.452*** (2.836) 19.822*** (1.917)

Sweden 2.931 (1.802) -12.080*** (1.247)

Switzerland 9.407*** (1.958) -8.523*** (1.420)

Luxemburg 16.346*** (3.792) -8.791*** (2.851)

3SLS Regression :

Equation 1 (origin) Equation 2 (destination)

Parameter Std. desv Parameter Std. desv

Lanzarote 0.337*** (0.095) -0.315*** (0.070)

Fuerteventura -0.014 (0.102) 0.210*** (0.075)

Gran Canaria -0.505*** (0.101) -0.489*** (0.090)

Tenerife 0.318*** (0.102) -0.762*** (0.066)

La Gomera -0.146 (0.183) -0.196 (0.133)

La Palma -0.900*** (0.152) 0.769*** (0.112)

El Hierro 0.187 (0.589) 0.368 (0.426)

Lower than 2 years -9.590*** (1.018) -7.047*** (1.244)

2 and 12 years -2.203*** (0.425) -5.113*** (0.463)

13 and 65 years 1.109*** (0.336) -4.725*** (0.201)

Older than 65 years 0.599 (0.560) -7.466*** (0.418)

Couple -10.341*** (0.501) 0.202 (0.823)

Family -1.947*** (0.632) 1.201*** (0.464)

Friends -10.488*** (0.620) 2.227*** (0.760)

Coworkers 20.195*** (1.980) 3.939* (2.026)

Climate - - -3.066*** (0.621)

Beaches - - -1.702*** (0.404)

Landscape - - -1.345*** (0.375)

Environmental quality - - -0.931* (0.507)

quietness - - -2.067*** (0.283)

Active tourism - - -4.173*** (0.606)

Helth tourism - - 2.825** (1.116)

Theme park - - 1.643** (0.765)

Golf - - 9.846*** (1.014)

Other sports - - -1.840* (1.023)

Nightlife - - 4.274*** (0.633)

Shopping - - 5.169*** (0.628)

New place - - -1.311*** (0.454)

Ease of Traveling - - -2.916*** (0.409)

Price -4.663*** (0.888)

For Kids -1.893*** (0.529)

Previous visits -0.044*** (0.006) 0.021*** (0.005)

Observations 53608 53608

R2 0.842 0.718

Chi2 2.89e+05 1.37e+05


parameter Std. desv. parameter Std. desv.

(Flight(F))-5 stars

hotel

-7.606 (8.862) 130.161*** (6.950)

(Flight(F))-4 stars

hotel

14.800** (6.825) 90.253*** (6.651)

(Flight(F))-3 stars

hotel

17.171*** (6.458) 73.906*** (6.276)

(Flight(F))-apartment 16.103*** (5.680) 65.531*** (5.709)

(Flight(F))-friends

and family

25.071*** (4.992) 44.614*** (5.398)

(Flight(F))-other 27.826*** (5.406) 49.915*** (5.872)

(F+Accommodation(

A))-5 stars hotel

102.242*** (7.306) 72.965*** (12.194)

(F+Accommodation(

A))-4 stars hotel

75.679*** (5.402) 47.179*** (9.028)

(F+Accommodation(

A))-3 stars hotel

56.268*** (5.353) 49.695*** (7.786)

(F+Accommodation(

A))-apartment

53.837*** (5.216) 48.885*** (7.576)

(F+Accommodation(

A))-other

51.411*** (5.431) 46.114*** (7.297)

(F+A+Breakfast(B))-5

stars hotel

114.416*** (6.140) 57.306*** (12.255)

(F+A+ Breakfast(B))-

4 stars hotel

89.794*** (5.544) 49.033*** (10.086)


3 stars hotel

70.638*** (5.504) 47.437*** (8.704)


apartment

66.021*** (5.388) 46.611*** (8.391)


other

83.573*** (13.895) 30.455** (12.910)



(Flight(F))-5 stars

hotel-LCC

1.156 (5.086) -11.154*** (3.652)

(Flight(F))-4 stars

hotel- LCC

-1.386 (3.192) -12.686*** (2.316)

(Flight(F))-3 stars

hotel- LCC

3.858 (3.731) -8.354*** (2.664)

(Flight(F))-

apartment- LCC

-2.086 (1.908) -1.446 (1.379)

(Flight(F))-friends

and family- LCC

-4.040*** (1.239) 2.127** (0.907)

(Flight(F))-other- LCC -4.443* (2.559) 1.667 (1.850)

(F+Accommodation(

A))-5 stars hotel- LCC

-0.897 (5.161) -16.616*** (3.726)

(F+Accommodation(


-8.813*** (2.112) 0.878 (1.623)

(F+Accommodation(


-9.360*** (1.782) 2.416* (1.380)

(F+Accommodation(

A))-apartment- LCC

-7.815*** (0.721) 1.704** (0.690)

(F+Accommodation(

A))-other- LCC

-3.971 (2.607) 1.119 (1.888)

(F+A+Breakfast(B))-5

stars hotel- LCC

-10.057*** (2.732) 2.299 (2.054)


4 stars hotel- LCC

-10.735*** (2.151) 1.717 (1.701)


3 stars hotel- LCC

-6.020* (3.226) 5.539** (2.318)


apartment- LCC

-10.409*** (2.749) -0.433 (2.117)


other- LCC

-24.301 (16.176) 24.828** (11.634)

pa variables pal variables

pa variables pal variablesEquation 1 (origin) Equation 2 (destination)


(F+A+half

board(HB))-5 stars

hotel

127.901*** (5.373) 35.821*** (12.315)

(F+A+ half

board(HB))-4 stars

hotel

90.219*** (5.014) 35.368*** (9.572)

(F+A+ half

board(HB))-3 stars

hotel

71.111*** (5.075) 38.490*** (8.404)

(F+A+ half

board(HB))-

apartment

72.649*** (5.097) 37.799*** (8.478)

(F+A+ half

board(HB))-other

77.778*** (9.290) 38.801*** (10.334)

(F+A+HB+Dinner(D))

-5 stars hotel

129.789*** (5.914) 29.751** (12.363)

(F+A+HB+Dinner(D))

-4 stars hotel

92.318*** (5.056) 31.847*** (9.567)

(F+A+HB+Dinner(D))

-3 stars hotel

80.284*** (5.354) 33.219*** (8.897)

(F+A+HB+Dinner(D))

-apartment

71.242*** (5.676) 34.092*** (8.427)

(F+A+HB+Dinner(D))

-other

129.932*** (5.687) 22.668* (12.160)

(F+A+All inclusive)-5

stars hotel

125.542*** (5.194) 21.548* (11.597)

(F+A+ All inclusive)-4

stars hotel

99.646*** (4.724) 22.534** (9.727)


stars hotel

89.705*** (4.792) 25.560*** 9.171)

(F+A+ All inclusive)-

apartment

82.958*** (4.923) 29.942*** (8.891)


other

136.551*** (5.551) 14.949 (12.291)



(F+A+half

board(HB))-5 stars

hotel- LCC

-9.156*** (2.639) 1.914 (1.981)

(F+A+ half

board(HB))-4 stars

hotel- LCC

-8.990*** (1.085) 3.986*** (0.909)

(F+A+ half

board(HB))-3 stars

hotel- LCC

-2.623 (2.001) 0.427 (1.444)

(F+A+ half

board(HB))-

apartment- LCC

-9.585*** (2.265) 5.225*** (1.681)

(F+A+ half

board(HB))-other-

LCC

-3.286 (11.397) -8.374 (8.212)

(F+A+HB+Dinner(D))-

5 stars hotel- LCC

-14.699** (7.224) 10.954** (5.222)

(F+A+HB+Dinner(D))-

4 stars hotel- LCC

-3.556 (2.693) -0.034 (1.953)

(F+A+HB+Dinner(D))-

3 stars hotel- LCC

-2.614 (4.199) -0.471 (3.028)

(F+A+HB+Dinner(D))-

apartment- LCC

-4.008 (4.300) 7.506** (3.083)

(F+A+HB+Dinner(D))-

other- LCC

-8.843 (7.152) 5.843 (5.171)

(F+A+All inclusive)-5

stars hotel- LCC

-10.666*** (3.727) 0.679 (2.770)


stars hotel- LCC

-8.748*** (1.036) 3.123*** (0.873)


stars hotel- LCC

-13.828*** (1.557) 4.150*** (1.370)


apartment- LCC

-14.490*** (1.773) 5.059*** (1.491)


other- LCC

-20.593*** (5.716) 7.985* (4.276)

Results: reduced form4

1 2 2 1 1 1 3 3 1 11

2011 31

1 4 1 1 1 5 5 1 12009 1

31

1 6 6 1 1 1 7 7 1 11

[( [( ) / (1 )]

[( ) / (1 )] [( ) / (1 )]

[( ) / (1 )] [( ) / (1 )]

) / (1 )]i i t t itt

y iy h h ihy h

h h ih d dh

exporigin income term

year pa

pal d

β γ β β γ β γ β β γ

β β β γ β γ β β γ


=

= =

=

= + + −

+ − + −

+ − + −

+ −

+ +

+ +

∑

∑ ∑

∑7

1

4 5

1 8 8 1 1 1 9 9 1 11 1

16

1 10 1 1 11 111

1 11 1

11 11 21 11 21

[( / (1 )] [( / (1 )]

[ (1 )]

[

) )

/ [( ) / (1 )]

/ (1 )] [1/ (1 )]

idd

r r ir r r ior o

m im im

i i

estination

party people

motivation previous

e u


β γ β γ γ ββ β γ

β β γ β γ

=

= =

=

+ − + −

+ − +

+

+ +

+ −

− + −

∑

∑ ∑

∑

4

1 2 2 1 1 1 3 3 1 11

2011 31

1 4 1 1 1 5 5 1 12009 1

31

1 6 6 1 1 1 7 7 1 11

[( [( ) / (1 )]

[( ) / (1 )] [( ) / (1 )]

[( ) / (1 )] [( ) / (1 )]

) / (1 )]i i t t itt

y iy h h ihy h

h h ih d dh

expisland income term

year pa

pal de

γ β γ β γ γ β γ β γ

γ β β γ γ β γ β γ


=

= =

=

= + + −

+ − + −

+ − + −

+ −

+

+ +

∑

∑ ∑

∑7

1

4 5

1 8 8 1 1 1 9 9 1 11 1

16

10 1 1 11 111

1 1 1

1 1 1 1 1

[( / (1 )] [( / (1 )]

[ (1 )]

[1

) )

/ [( ) / (1 )]

[ / (1 )] / (1 )]

idd

r r ir r r ior o

m im im

i i

stination

party people

motivation veces

u e


γ β γ β γγ β γ

γ β γ β γ

=

= =

=

+ − + −

+ − +

+

+ +

+ −

+ − −

∑

∑ ∑

∑

Results: originNon-LCC: euros per person and night

5 stars 4 stars3,2 or 1 stars

ApartmentFamily or

friendsOther

Only flight (F) 76,69 75,63 67,59 60,91 57,25 63,81

(F) + Accommodation (A)

162,16 115,56 95,48 92,23 87,71

(F+A) + Breakfast (B) 165,53 132,56 110,08 104,38 113,44

(F+A)+Half Board (HB)

166,55 124,09 104,76 106,03 112,42

(F+A+HB)+Dinner (D)

164,69 124,14 111,57 102,03 160,22

(F+A)+ All Inclusive 154,57 126,24 117,10 112,42 162,57

Results: originLCC: euros per person and night with respect to non-LCC


ApartmentFamily or

friendsOther

Only flight (F) -6,01 -9,85 -1,15 -3,28 -3,13 -3,88


-11,88 -9,29 -8,89 -7,63 -3,71

(F+A) + Breakfast (B) -9,75 -10,89 -3,11 -11,93 -10,94


-8,99 -7,45 -2,66 -7,30 -9,16

(F+A+HB)+Dinner (D)

-9,28 -4,00 -3,23 0,43 -6,07

(F+A)+ All Inclusive 11,49 -7,74 -12,76 -12,90 -17,81

Results: destinationNon-LCC: euros per person and night


ApartmentFamily or

friendsOther

Only flight (F) 144,09 103,99 86,18 76,59 55,01 61,50


102,42 68,17 67,04 65,64 62,04

(F+A) + Breakfast (B) 87,37 73,11 67,43 65,57 51,06


66,07 57,91 57,52 57,06 59,22

(F+A+HB)+Dinner (D)

59,66 54,39 53,48 52,62 51,77

(F+A)+ All Inclusive 49,62 45,46 46,83 50,36 44,48

Results: destination LCC: euros per person and nights with respect to non-LCC


ApartmentFamily or

friendsOther

Only flight (F) -12,24 -14,48 -8,56 -2,04 1,56 0,96


-18,77 -0,81 0,80 0,32 0,45

(F+A) + Breakfast (B) 0,53 -0,26 4,97 -2,60 22,84


0,28 2,63 -0,06 3,90 -10,04

(F+A+HB)+Dinner (D)

9,27 -0,76 -1,06 7,58 4,74

(F+A)+ All Inclusive -1,41 1,72 1,83 2,72 4,75

Results: origin LCC: euros by mean nights and mean party size (with respect to non-LCC)


ApartmentFamily or

friendsOther

Only flight (F) -92,36 -187,05 -16,46 -84,81 -70,97 -99,72


-196,67 -167,03 -173,60 -179,97 0,00 -106,30

(F+A) + Breakfast (B) -145,82 -159,24 -40,22 -208,11 0,00 -195,27


-169,31 -136,13 -47,31 -146,99 0,00 -168,91

(F+A+HB)+Dinner (D)

-138,67 -66,16 -54,47 9,38 0,00 -112,71

(F+A)+ All Inclusive 202,91 -152,33 -248,29 -285,26 0,00 -362,25

Results: destination LCC: euros by mean nights and mean party size (with respect to non-LCC)


ApartmentFamily or

friendsOther

Only flight (F) -188,27 -274,78 -122,36 -52,78 35,38 24,74


-310,80 -14,54 15,64 7,52 0,00 12,76

(F+A) + Breakfast (B) 7,91 -3,81 64,31 -45,35 0,00 407,73


5,30 48,11 -0,99 78,45 0,00 -185,13

(F+A+HB)+Dinner (D)

138,56 -12,58 -17,83 165,83 0,00 88,01

(F+A)+ All Inclusive -24,86 33,78 35,68 60,04 0,00 96,59

Results: total31

1 5 5 1 1 1 2 2 1 11

1 6 6 1 1 1 5 5 1 1

[( ) / (1 )]* * * [( ) / (1 )]*post-LCC in origin: *

* [( ) / (1 )] [( ) / (1

hhh hh

nlch

h h h h

q sznshr pa income

shr



=

− + − + + +

+ − + + −

∑

( )31

1 2 2 1 11

* * * [( ) / (1 )]*)] hhhh

lcpal q sz incomeβ γ β β γ=

+ − + ∑

31

1 5 5 1 1 1 2 2 1 11

1 5 5 1 1 1 6

[( ) / (1 )]* * * [( ) / (1 )]*post-LCC in destination: *

* [( ) / (1 )] [(

hhh hh

nlch

h h h

q sznshr pa income

shr


γ β γ β γ γ β

=

− + − + + +

+ − +

∑

( )31

1 2 2 1 11

6 1 1 * * * [( ) / (1 )]*) / (1 )] hhh

lch h q szpal incomeγ β γ β γγ β γ=

+ − + − + ∑

31

1 5 5 1 1 1 2 2 1 11

[( ) / (1 )]* * * [( ) / (1 )]*previous-LCC in origin: hhh hh

nlch q szpa incomeβ γ β β γ β γ β β γ=

− + −+ +∑

31

1 5 5 1 1 1 2 2 1 11

[( ) / (1 )]* * * [( ) / (1 )]*previous-LCC in destination: nlcnlch hh

nlch q szpa incomeγ β γ β γ γ β γ β γ=

− + −+ +∑

Results: total

-181.67 euros on average per travel and party



origin

destination

Conclusion: - There are a change in tourist behaviour. (Reweighting effects).

- LCC tourist spend more in destination per person and night.

- But, spend less nights.

- The overall results is that LCC tourists spend less in destination.

- And, the party size remain equal to non-LCC tourist.

“ Doy lo que tengo, que aquellos capaces de hacer más hagan su más, como

yo hago mi menos”Federico Inchausti, cabeza pensante del

TIDES (alguno tenía que haber…)

seminario tides - low cost

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