leisure and travel industries

The leisure and travel industries have faced problems in recent years as a result of the danger of terrorist strikes. For example, the bombs in Brussels and Paris impacted the operations of airlines that fly to such locations (Fu and Oum 2014, p.23). Many businesses attribute the decline in revenue to terrorist incidents, which reduce demand for leisure activities. Terrorist strikes at airport terminals, according to Rey, Myro, and Galera (2011, p.165), completely disrupt business activities. It’s approximately 6 years since the occurrence of the year 2011 terrorist attack, however, airline companies are still struggling to regain full market command despite the recent increase in passenger travels across the United States. In Europe, largest airlines such as Deutsche Lufthansa have been attributing most of their operational challenges to increasing competition, pricing, and recent terrorist attacks which weakened their demand both at regional and international clients. Moreover, other companies like Air France-KLM also reported about $76 million loss associated with Paris attack. Zhang and Findlay (2014, p.43), however, explains that the quicker recovery in terms of passengers and overall demand realized by the company after the attack were due the increasing tourism destinations across the world.

Despite the low performance of various players due to the recent terrorist attacks, there are a number of companies which have not been affected. Ryanair Holdings for instance, have posted positive numbers regardless of the terrorism fears (Rey, Myro and Galera 2011, p.165). Moreover, their traffic increased by over 10% in the late 2015. Filieri, Alguezaui and McLeay (2015, p.176) argue that holidaymakers across the UK are opting for safer destinations to hold their leisure activities to avoid the recent terror attacks that adversely affected the North African and European destinations. A study by Ghobrial and Irvin (2004, p.67) reported that around 30% of UK travelers consider general safety and security of destination as the most critical factor when making holiday destination choices.

The falling travel costs, stronger economic growth and the rising oil prices contributing to the economic uncertainties experienced in the airline industry. The sluggish growth in the world economy are linked to the higher oil prices which have made it difficult for airline companies to significantly lower their travel costs to offset the stiff pricing competition in the market (Marsden et al., 2016). Zhang and Findlay (2014, p.43), on the other hand, argues that air travel industry have received a significant boost from the increasing world developments. The increasing connections between cities across the globe have facilitated technological transfers, flow of commodities, and reduced the air transport cost. The doubled connectivity, sustained inflation, and the falling transport cost guarantees economic certainty and future performance after the terrorist attacks.

Airline companies like TUI and Jet2 among others are striving to maintain their global presence by providing best packages and partnering with best leisure destinations. For the seventh time, TUI have been named among the world’s best airline company which operating in more than 21 airports in the UK and approximately 70 destinations across the world. Currently, holiday destinations and organizers of leisure activities are collaborating with airline companies to provide a range of flexible travel durations (Zhang and Findlay 2014, p.43). Entertainments and tasty meals are other factors that are incorporated by the airline companies like TUI and other LCC airlines to attract customers.

Study Rationale

The recent Russian Jetliner crash that claimed the lives of vacationers who were on board, the case of gunmen keeping people hostage in a hotel in Mali, and terror attacks in Brussels and Paris have raised the concern over the security of travelers and even the airline and leisure companies’ staff members (Filieri, Alguezaui and McLeay 2015, p.176). More than 200 lives of clients have been lost during such incidences while companies have recorded massive losses associated with the attacks. According to Baka (2016, p.151), terror groups have always claimed responsibility over the attacks. Without proper studies done on the effects of terrorism on the leisure activities and choices made by customers concerning travel destinations, travel and leisure companies will continue to record losses and have their operations halted by the terror groups (Evans and Elphick 2005, p.142). Moreover, it’s prudent to understand the measures taken by some LCC’s airlines to withstand the adverse effects of terror attacks on their operations (Kusumasondjaja 2015, p.245).

The study will explore the challenges that airline and leisure companies undergo during economic uncertainties and insecure environments. The findings of this study will be essential in formulation and implementation of various measures that help in mitigating the risks that can may lead to failure of the airline companies adversely affected by the terror activities. Moreover, it will inform the companies on the various competitive strategies that can be adopted to outdo the competitors and survive in the harsh competitive environment (Marsden et al., 2016).

Aims of the Study

The aim of this study is to find out the risks that terror attacks pose to the airline and leisure companies and affect their operations. It seek to outline measures that can mitigate the risks and protect the clients. This will be achieved through understanding of how effective management can be used a tool to overcome the security and safety issues that currently affect the travel industry and protect the lives travelers on board. The secondary aim of the study is to add existing literature and inform other security agencies on measures that can be adopted in tightening security in various travel destinations.

Research Objectives

The general objective of the study is to outline the measures that can be put in place to mitigate the risks that airline companies and leisure passengers incur due to terror attacks.

Specific Objectives

To explore the factors that affect the choices made by clients concerning travel destinations

To find out the mitigations that can be put in place to control potential risks incurred by airlines and passengers

To find out the effect of proper security on customer satisfaction

Methodology

Research Questions

In order to achieve the study objectives, it will seek to answer the following research questions: what are the factors that affect the choices made by leisure passengers concerning travel destinations? What are some of the measures that can be implemented by airlines to mitigate the risks incurred by leisure passengers? How does customer safety and security affect their satisfaction and holiday experience? To answer the above questions, the study design will incorporate questionnaires as research as the main research tools to collect the required information.

Research Design

The study will adopt both qualitative and quantitative study approach. Data on the variables will be collected using online survey design. Both descriptive and inferential statistics will be necessary for establishing the correlation between factors affecting leisure customers’ decisions and their satisfactions. Qualitative research design will give room for the researcher to obtain important insights on the respondents’ opinions about the possible measures that can be adopted to mitigate the risks associated with air travel and tourism destinations. Moreover, the descriptive survey design will help in the researcher to collect information on leisure passengers’ opinions and experiences. Online surveys will be used to gather information necessary for answering the research questions. Questionnaires will be designed and presented to the participants online. A sample size of 100 leisure passengers will be used as the participants to the survey.

A Study by Baka (2016) to examine the effectiveness of user reviews in influencing future customer decision in the travel sector adopted descriptive research design and used quantitative data collection tools. Moreover, quantitative data analysis was used to establish the existing association between the study variables. Kusumasondjaja (2015, p.245), on the other hand, used online surveys and online telephone interviews to collect data for the study. Since this study seek to capture the opinions of participants from different regions who are leisure passengers, the use of online surveys through survey monkey is justified.

Data Collection Procedure

The data collection procedure will involve population of questionnaires into Survey Monkey and sending the links to the questionnaires to the participants. The respondents will spare 3-5 minutes to complete the survey and submit the responses. After 15 days or upon reaching 100 responses, the link to the online questionnaire will be deactivated. The collected data will be checked for correctness and completeness before carrying out data analysis using qualitative and quantitative data analysis software like STATA and NVIVO.

References

Baka, V., 2016. The becoming of user-generated reviews: Looking at the past to understand the future of managing reputation in the travel sector. Tourism Management, 53, pp.148-162. Retrieved: https://www.cabdirect.org/cabdirect/abstract/20163024376

Evans, N. and Elphick, S., 2005. Models of crisis management: An evaluation of their value for strategic planning in the international travel industry. International Journal of Tourism Research, 7(3), pp.135-150. Retrieved: http://onlinelibrary.wiley.com/doi/10.1002/jtr.527/full

Filieri, R., Alguezaui, S. and McLeay, F., 2015. Why do travelers trust TripAdvisor? Antecedents of trust towards consumer-generated media and its influence on recommendation adoption and word of mouth. Tourism Management, 51, pp.174-185. Retrieved: http://www.sciencedirect.com/science/article/pii/S0261517715001028

Fu, X. and Oum, T.H., 2014. Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth–An Overview. In The economics of international airline transport (pp. 11-44). Emerald Group Publishing Limited. Retrieved: http://www.emeraldinsight.com/doi/abs/10.1108/S2212-160920140000004000

Ghobrial, A. and Irvin, W.A., 2004. Combating air terrorism: Some implications to the aviation industry. Journal of Air Transportation, 9(3), p.67. Retrieved: https://search.proquest.com/openview/e3d08ffe4d6bf3ca718d723a6c959a0f/1?pq-origsite=gscholar&cbl=44513

Kusumasondjaja, S., 2015. Information quality, homophily, and risk propensity: Consumer responses to online hotel reviews. Journal of Economics, Business, and Accountancy| Ventura, 18(2), pp.241-252.Retrieved: https://www.researchgate.net/publication/283661212_Information_quality_homophily_and_risk_propensity_Consumer_responses_to_online_hotel_reviews

Marsden, G., Anable, J., Shires, J. and Docherty, I., 2016. Travel Behaviour Response to Major Transport System Disruptions: Implications for Smarter Resilience Planning. OECD/International Transport Forum Roundtable on Preparing for Major Disruptions to Transport Systems. Retrieved: http://eprints.gla.ac.uk/120101/7/120101.pdf

Rey, B., Myro, R.L. and Galera, A., 2011. Effect of low-cost airlines on tourism in Spain. A dynamic panel data model. Journal of Air Transport Management, 17(3), pp.163-167. Retrieved: http://www.sciencedirect.com/science/article/pii/S0969699710001134

Sullivan-Taylor, B. and Wilson, D.C., 2009. Managing the threat of terrorism in British travel and leisure organizations. Organization Studies, 30(2-3), pp.251-276.Retrieved: https://research.aston.ac.uk/portal/en/researchoutput/managing-the-threat-of-terrorism-in-british-travel-and-leisure-organizations(2d191ec7-dc1e-4afc-b32b-523656d546e3).html

Zhang, Y. and Findlay, C., 2014. Air transport policy and its impacts on passenger traffic and tourist flows. Journal of Air Transport Management, 34, pp.42-48.Retrieved: http://www.sciencedirect.com/science/article/pii/S0969699713000896

Appendix

Questionnaire

How many times have you travelled to leisure destinations?

[ ] 1-5 times, [ ] 6-10 time, [ ] More than 10 times

What factors affect the choice for your travel destination(s)? (List all that apply)

How can you rate the travel and accommodation packages offered by the various LCC Airlines?

[ ] Low [ ] Moderate [ ] Expensive

How do your safety and security influence your travel experience and satisfactions?

In your opinion, what are some of the measures that can be put in place to mitigate the risks incurred by leisure passengers?