Low costs carriers ‘dictating’ Euro tourism growth

The power of no-frills carriers has been highlighted in a report which warns that they are now a “major factor” dictating how European countries perform as tourist destinations.

Cyprus and Malta both believe they will suffer due to the lack of low cost airlines while countries such as the Czech Republic, France and Germany, which have attracted the likes of Easyjet and Ryanair, fear their tourism performance would be “severely damaged” should the carriers ever pull out.

Meanwhile, more than half of the 34 European Travel Commission-member countries admitted that getting or maintaining no-frills flights is central to their future tourism success.

The findings came from a World Travel Market UK & European Travel report produced in association with IPK International.

Airline expert Robert Cain of Tourism Futures said destinations were often desperate for the short-term gain in visitor numbers, knowing low cost airlines were notoriously disloyal to the countries they serve.

He said: “The risk countries in Europe have now is that they cannot afford not to have no-frills services, because it makes them look much less attractive to potential holidaymakers.

“It’s a very short-term view because the airlines are always looking for the next big destinations and can drop out just like that. But the benefits of increased visitor numbers are plain to see.”

Malta Tourism Authority head of research Leslie Vella admitted that the lack of a low cost service was inhibiting the island’s tourism growth.

He said: “We appeal to the European market, but it is a shrinking market because those people want to travel low cost.”

Cyprus Tourism Organisation tourist officer Andros Papageorgiou said there was a “two-tier” market in Europe now.

“We can only hope to attract no-frills airlines, but the distance we are from the UK makes us less attractive to them. We are at a real disadvantage.”

The report shows a significant shift away from traditional tour operators in the way countries attract visitors.

Trips involving low costs airlines are more likely to be booked online than European travel generally – a rate of 56% against 32% in 2004, according to the report.

Yet travellers are not necessarily spending a great deal less, with those using low cost airlines spending an average of euros 430 per trip against euros 480 generally.

And up to 70% are travelling more frequently, a further 70% are taking more short trips and 60% say they now travel on the spur of the moment.

Up to 46% said they spend more dining out, shopping (44%) and accommodation (35%) due to the flight cost savings.

The UK emerges as the most important market in Europe with 18 million low fare trips in 2004 out of a total of 45 million flights taken.

Meanwhile, some 45% of UK outbound trips involved online booking and a further 10% were organised using the internet as an information source, the report shows. This gives the UK a 55% ‘online travel’ share against just 30% in Germany and an average of 40% in Scandinavia.

Report by Phil Davies 

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