Booming Leisure Air Travel to Norway – The Role of Airline Competition

Abstract

Abstract Economic growth and cheap air travel have increased airborne tourism in Europe. In Norway, the introduction of low‐cost carriers (LCCs) has given a boost to incoming tourism by air, as distinct from sea, road or rail, which seems to have more or less stagnated. Analysis shows that economic growth, reduced air fares and the advent of LCCs explain the different growth rates in incoming tourism by air between countries of origin. Reduced fares were the most important factors driving incoming air tourism during the period 2003–2007. Even though growth rates are highest from the new European Union countries, just as in many other European markets, traditional countries of origin still dominate in absolute terms, e.g. the Nordic countries, Germany, the UK and The Netherlands. Holiday travel and visiting friends and relatives are the fastest growing incoming tourist segments.