Airline Business Models and Tourism Sector

Abstract

The new century brought innovation, creative business environments, and above all, new competitors to some sectors. One of them is the airline sector that besides being very dynamic is highly competitive and vulnerable to external factors. The new changes impact directly in the way the product/service is presented and sold with consequences for the demand and tourism flows. After the deregulation process that happen in USA on the '70s and in Europe in the late '90s, the airline sector adjust their business models to the new trends and market changes, regulations, new competitors, and above all, to the new demand profile. This new business models brought new perspectives with more flexible and innovative services and products in order to follow market trends and to attract new boosting tourism demand. Despite the business model, air transportation is essential for some tourism destinations, mainly the ones that are very dependent on one single airline typology or with particular geographical features and needs.

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