Aim The commercial success of some low cost airlines presents the low cost model as very attractive. Until now their main focus has been on short-haul routes, but it is no surprise that they show an interest in entering the long-haul routes market as recent trends are very promising. The aim of this study is to analyze whether the low cost business model is applicable for long-haul routes, which parts of the model are transferable to long-haul services, what competitors responses might be and whether there is potential for low cost airlines operating in Scandinavia to gain frequent, well paying and demanding business travelers on their future long-haul routes. Method In this study a survey method with structured questionnaire distributed by e-mail has been used to collect the primary data. The main source of secondary data has been airline industry literature, newspapers, magazines and data provided by aviation statistical organizations. The empirical part of this study is conducted as a quantitative and qualitative study. Intention of empirical part is to find detailed information and describe business travelers’ behavior, corporate travel policies, business trips pattern and attitude towards low cost airlines. Conclusions The cost savings that low cost airlines achieved in the short-haul market will be much more difficult to achieve to long-haul services. In terms of areas where airlines can achieve cost leadership labor costs is certainly the best area to attack. To be successful, low cost airlines would have to adopt some elements of the traditional business model. But the success of long-haul low cost airlines will not only depend on achieving cost advantages. Availability of leisure time for long-haul trips and response of competitors will be other factors. Suggestions for future research A deeper analysis of low cost long-haul airlines potential could be possible with survey among leisure travelers and VFR (visiting friends and relatives) segment. Contribution of the Study This study has arrived at the conclusion that in order to be successful on long-haul routes low cost airlines would have to keep most of the features of traditional airlines. Low cost long-haul airlines would most probably be successful in pure leisure routes, ethnic markets, during peak season and on dense point to point destinations.

In many organisations, air travel is an essential part of conducting business in order to meet company objectives and goals. The selection of a preferred airline is a complex undertaking. Corporations may obtain discounts based on expenditure commitments; the airline may have a frequent flyer programme; or a low cost carrier may offer a better alternative to full service carriers. The literature on corporate travel is fairly limited with determinants determining the selection of airlines having been studied from other perspectives such as the business traveller, thus, this study should make a significant contribution to this field by generating new information on corporate travel and in particular corporate air travel decisions. The literature review provides a demarcation of the broad concepts of the buying approach towards corporate air travel. Also discussed is the relationship between the key role players in airline selection: the corporate traveller; the travel management company; and the airline. Various determinants of airline selection by corporations are identified and the role of frequent flyer programmes is analysed. Furthermore, the move towards low-cost airlines as a preferred choice for corporate travel is investigated. The empirical phase of the research study focussed on identifying the determinants of airline selection by large-sized corporations in South Africa; the relative importance of frequent flyer programmes; and the move towards low-cost airlines as a preferred choice for corporate travel. The target population was sampled using a non-probability convenience sampling approach with a newly designed quantitative, ex post facto web-based questionnaire, distributed via e-mail to the target population. Exploratory factor analysis was done to identify whether an underlying structure of airline selection determinants exists from which the relative importance of frequent flyer programmes could be assessed. From the results, a model of corporate airline selection determinants was derived. Then, the model was compared to the conceptual model formulated from the literature survey. A number of important selection determinants were identified, and it became evident that frequent flyer programmes are, generally, not considered a decisive determinant in the selection of a preferred airline by corporations. However, the influence of low-cost airlines was shown to be considerable, in line with the endeavour to save on air travel expenses within a corporate air travel management programme. The findings should assist both corporations and airlines with the design of their air travel buying approaches and marketing strategies respectively. / Dissertation (MCom)--University of Pretoria, 2010. / Tourism Management / Unrestricted

A presente pesquisa, de caráter descritivo-exploratório, trata dos processos de gestão de viagens corporativas utilizados pelas empresas no Brasil. Foi efetuado um levantamento em dez empresas nacionais e multinacionais com presença no território brasileiro, que possuem uma área ou um profissional dedicado à atividade de administração das viagens efetuadas por seus funcionários ou prepostos em função de uma necessidade do negócio. Os processos foram mapeados e analisados sobre a ótica da propriedade de seus diversos componentes e sobre a participação de organizações externas à empresa na gestão dessas viagens corporativas. Evidenciou-se a existência de quatro modelos distintos de gestão, todos presentes no mercado brasileiro. Os modelos denominados comprador-gestor e apoio-serviços utilizam-se de recursos externos para gestão, diferindo entre si pela propriedade dos processos, no primeiro caso residentes nas áreas de compras e no segundo nas áreas de serviços. Os dois outros modelos propostos, autogestão e autosserviços, tem baixo grau de utilização de serviços de terceiros, e se diferenciam pela propriedade dos processos de gestão de viagens corporativas, no primeiro caso uma predominância de processos proprietários em compras e, no segundo, uma predominância de propriedade nas áreas de serviços. A influência da participação dos profissionais nas associações do mercado nos diferentes mapas também é discutida. São apresentadas também algumas variantes encontradas no mercado. A questão da desintermediação na venda dos serviços turísticos nesse mercado, e os efeitos que esse fenômeno causa na forma com que as empresas organizam seus processos de gestão de viagens corporativas também fazem parte desse estudo. O papel das Travel Management Companies (TMCs) nos processos de gestão de viagens é investigado. Observa-se e discute-se a entrada de algumas novas categorias de empresas nesse mercado, são avaliados o papel de cada uma e as possíveis implicações no desenho dos processos de gestão de viagens corporativas / This descriptive-exploratory research focus on the processes of corporate travel management used by companies in Brazil. Ten companies (Brazilian and multinational companies with branches in Brazil) were part of the study. All those organizations have an area or a professional dedicated to the activity of administration of the travels made by their employees or agents to fulfill a business need. The processes were mapped and analyzed on the optics of the ownership of its components and on the participation of external parts in the management of these corporate trips. It was evidenced the existence of four distinct models of management, all present in the Brazilian market. The buyer-manager model and the support-service models use many external resources on their management processes, and differs from each other as the first one shows the travel management processes mainly under ownership of the procurement areas as the second has most of the process under a service provider area. The other two proposed models, auto-management and auto-service have most of the processes being executed within the companies. The auto-management model with the travel management processes being owned by the procurement area and the second having a service area as main owner of the processes. The influence of the participation of the professionals in the market associations in the different maps is also discussed. Also presented are some variants found in the market. The issue of disintermediation in sales of tourist services in this market, and the effects that this phenomenon causes on the way companies organize their corporate travel management processes are also part of this study. The role of Travel Management Companies (TMCs) in travel management processes is also investigated. One of the main findings of the study was the participation of some new categories of companies in this market, the role of each one of those new players and the possible implications in the design of the corporate travel management processes is also discussed

The masters´s thesis deals with the establishment of a travel agency focused on corporate travel. The thesis is based od the theoretical knowledge gained through study, practice and market analysis are being taken the steps to set up a business.