ABSTRACT
This study empirically identifies business travellers' preferences during the COVID-19 pandemic across different regions. A stated preference study was conducted during April to June 2021 on respondents in the U.S., the city of Shanghai in mainland China and Hong Kong. Generalised mixed multinomial logit (GMXL) models are estimated incorporating attributes of travel characteristics, severity levels of the pandemic, and health control measures at the airport. When an online meeting is inapplicable, respondents from Shanghai and Hong Kong highly value heath control measures, and are not sensitive to the time spent at airport health checkpoints. In comparison, U.S. respondents are averse to the time spent for health check, the reporting of personal information, travel history, symptoms, and the requirements of compulsory mask wearing and onsite sample testing. However, when online meeting is applicable, all the respondents show no appreciation for health control measures, while the U.S. respondents are twice more averse to the time spent at airport health checkpoints. Online meeting reduces the intention of international business travel amid the pandemic for passengers in Shanghai and Hong Kong, but imposes no significant effects on U.S. travellers. Such significant heterogeneity in traveller preference partly explains the different recovery patterns observed in various aviation markets, and justifies individualized travel arrangements and service priority in fulfilling pandemic control requirements across different regions. Our study also suggests that there are commonly accepted areas for global cooperation such as the sharing of vaccination record, and the option of online meeting calls for convenient travel arrangements amid pandemic to all countries.
ABSTRACT
This study quantifies the effects of health control measures at the airport on passenger behaviour related to business travel. A stated preference survey was conducted over potential air travellers in Hong Kong in the context of COVID-19 pandemic. Panel latent class models were estimated to understand passenger preference toward new travel requirements given the applicability of online meeting. Online meeting is applicable in cases where it is a good substitute of air travel and achieves the same outcomes of a trip, and inapplicable otherwise. Empirical results indicate that traveller subgroups are affected in different ways. When an online meeting is inapplicable, nearly 75% of the respondents prefer to travel for business and undertake health screenings. These passengers (identified as "captive" business travellers) perceive such measures necessary to lower health related risks during air travel. As such, they are willing to spend up to 21 to 38 min on the health control measures such as vaccination record requirements and test involving sample collection. When an online meeting is applicable, the share of "choice" business travellers is about 45%, among whom the attitudes towards health control measures become more averse. The average weighted willingness-to-pay for the time saved at health checkpoints increase significantly. The aviation industry thus faces a "double-hit" problem: operation costs will increase due to pandemic control measures, and the resultant inconvenience, extra time and costs further reduces travel demand. Unlike previous short pandemics, business travel is likely to suffer with an extended decline until the pandemic is fully controlled. These identified challenges call for financial and operational support to help the aviation industry reach a sustainable "new normal". The high value of time saved at check points also justifies investments that make the pandemic control and health measures efficient and smooth. Travellers' time spent on airport health control should be within 20 min to avoid substantial negative impacts on business travel demand.
ABSTRACT
This study systematically reviewed the literature on travel-related measures and policies for controlling and mitigating the adverse impacts of pandemics, with a focus on the air transport and tourism sectors. The key findings are applied to the South Pacific Region (SPR) so that appropriate business strategies and industrial policies can be developed to safeguard the sustained development of aviation and tourism. In total, 159 publications were selected and examined using descriptive analysis, content and thematic analyses and a meta-analysis. Our findings suggest that short-term policies and measures (e.g., border closures and travel restrictions, quarantine and isolation, hygiene measures, virus testing, contact tracing, airport screening and other measures) and a long-term strategy (vaccination) should both be implemented to address future pandemics in the SPR. A risk-based approach is recommended, which calls for effective coordination and collaboration across different governments in the region. In addition, the SPR governments should provide financial support for the recovery of the air transport and tourism sectors, both of which are the pillar industries of the SPR.
ABSTRACT
This study examines the impacts of aviation subsidy programmes in the South Pacific Region (SPR). Interviews and thematic analysis were conducted to understand the perspectives of key stakeholders of aviation subsidies in the SPR. It was found that SPR countries are heavily reliant on aviation subsidies for the development and sustainability of their aviation industries. Aviation subsidy programmes are nevertheless subject to political influence and misuse. It is well recognised that aviation subsidy programmes in the SPR facilitate airfare affordability, flight accessibility and service sustainability. They may also positively impact tourism development, social wellbeing and economic wellbeing in SPR countries, but adversely impact the region's environmental wellbeing. Our findings suggest that formal aviation subsidy frameworks (i.e. customized, environmentally friendly) should be established for SPR countries, possibly in a similar vein to those used in developed markets. Generally, the adverse impacts of COVID-19 on aviation, tourism and economic development in the SPR call for a collective, regional and cross-sectional approach to help SPR countries recover from the COVID-19 pandemic.
ABSTRACT
The Japanese aviation market experienced significant changes in the past decade, with a few entrant low-cost carriers (LCCs) changing the duopoly by the two dominant full-service airlines (FSAs) of Japan Airlines and All Nippon Airways. However, the major disruptions caused by the COVID-19 pandemic might change industry development trajectory. This study provides an updated review of the development and performance assessment of the Japanese domestic market, with a focus on the effect of the COVID-19 pandemic on airlines' capacity, frequency, yield and competition using data from 2019 to 2020. Special efforts are dedicated to investigating whether there is significant asymmetry between FSAs and LCCs across different types of routes. Our empirical results suggest that the pandemic did impose significant negative effects on airline yield, scheduled seats and frequency. Such effects were different across mainline vs. regional routes, with FSAs still maintaining much of their dominance. The two leading FSAs' duopoly appears to be strengthened, whereas the market share of the third-largest carrier, Skymark Airlines, shrank significantly towards the end of 2020. Regional routes’ sustainability has been further challenged to the extent that more resources may have to be allocated to maintain regional connectivity until sustainable recovery of travel demand. Entrant LCCs continue to put downward pressure on yield, but their contribution to overall market competition may be moderated by their affiliations with the two dominant FSAs under the so called airlines-within-airlines strategy. Affiliated LCCs could strengthen, instead of reducing, the dominance of the duopoly JAL and ANA over independent airlines in the Japanese domestic market. The government should ensure that there are no entry barriers blocking independent entrants to the market.
ABSTRACT
This study empirically investigates the determinants and drivers of Hong Kong's inbound tourism using data from January 2019 to December 2020. Five of Hong Kong's major regional tourism source markets are selected: Japan, Malaysia, the Philippines, Singapore, and South Korea. Our empirical results suggest that the COVID-19 pandemic has had significant negative impacts on the tourism and aviation sectors in Hong Kong that are asymmetric in the source and destination countries. In addition, international travel control imposed by the Hong Kong government is often defined according to the pandemic situation in the tourism source countries, Hong Kong's inbound visitor volume is also significantly affected by the Hong Kong government's response to COVID-19 infection cases in the tourism origin markets. Our empirical results also suggest that the flying distance to Hong Kong and high tourism costs in Hong Kong reduced visitor arrival demand, whereas increased aviation services and tourism market potential contributed to tourism growth. These results suggest that the tourism industry and government agencies should cooperate to recover when the pandemic is under good control, so that Hong Kong will be regarded as a preferred and safe destination for travelers and visitors. Our study emphasizes the complementarity between pandemic control and tourism recovery. Pandemic control involves extra tests and quarantine requirements on passengers, more vigorous border control. These operational and associated financial requirements call for government support to the tourism and aviation sectors in the early stage of recovery to create a positive feedback loop.