Location
Gran Canaria
Participation
Attend the conference at Gran Canaria in person.
Type of Submission
Paper Presentation
Short Abstract
We analyze the impact on tourists’ arrivals after the bankruptcies of Monarch Airlines and Thomas Cook. It draws on arrivals from the UK to Canary Islands and it employs a univariate and multivariate structural time series with level interventions. More interestingly, after Monarch exit, the policymakers applied a laissez faire strategy, which resulted in a 93.04% net loss of their level of traffic in Tenerife. However, after Thomas Cook exit, the policymakers intervened in the market proposing incentives to the incumbent airlines to cover the loss. It resulted in a 34.72% net loss of Thomas Cook level of traffic. Moreover, we provide details about the redistribution of the traffic among the incumbent airlines that diminished the net loss of passengers.
Quantifying the impact of airlines exit in tourism destinations. The cases of Monarch and Thomas Cook
Gran Canaria
We analyze the impact on tourists’ arrivals after the bankruptcies of Monarch Airlines and Thomas Cook. It draws on arrivals from the UK to Canary Islands and it employs a univariate and multivariate structural time series with level interventions. More interestingly, after Monarch exit, the policymakers applied a laissez faire strategy, which resulted in a 93.04% net loss of their level of traffic in Tenerife. However, after Thomas Cook exit, the policymakers intervened in the market proposing incentives to the incumbent airlines to cover the loss. It resulted in a 34.72% net loss of Thomas Cook level of traffic. Moreover, we provide details about the redistribution of the traffic among the incumbent airlines that diminished the net loss of passengers.
https://docs.lib.purdue.edu/itsa/ITSA2022/ITSA2022/54