Department of Economics
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Browsing Department of Economics by Subject "Aeronautics, Commercial -- Passenger traffic"
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- ItemVerhoogde toerismevloei deur benutting van oormaatkapasiteit in lugvervoer(Stellenbosch : Stellenbosch University, 2000) Vivian, Theuns Charles; Pienaar, W. J.; Stellenbosch University. Faculty of Economic & Management Sciences . Dept. of Economics.ENGLISH ABSTRACT: This assignment explains the search for a mechanism that can increase tourism flow by improved utilisation of airline capacity. The inherent characteristics of air transport indicate that the industry is subject to low short term marginal costs and that it is very tempting to award discount tariffs for last minute bookings. The challenge to management is to attract new passengers with discount tariffs without loosing full tariff passengers. Travel clubs are one of the mechanisms that are utilised to achieve aforementioned objective. These clubs offer mainly discount tariffs on hotel accommodation, car hire and airline tickets to their members. The acceptability of a travel club that applies restricting measures such as for example short notice periods, adaptable depart and return dates and shortened lead times have been tested in the South African market. The majority of respondents surveyed were in favour of such a travel club. An important finding is that South Africans are prepared to travel in a chosen month but that the travel dates within that month are adaptable in exchange for discount tariffs. The research also indicate that the availability of funds was decisive in the decision to travel or not to travel over seas. In order to overcome this problem the introduction of a providence account is recommended as part of the travel club's products. The challenge for the travel club is thus to consolidate the demand and to match it with the excess airline capacity.