Case Study: Low-Cost Carriers and Their Impact on the Tourism Market

This case study explores the impact of low-cost carriers (LCCs) on the tourism market, focusing on Southeast Asia. It examines how the rise of LCCs, driven by deregulation and technological advancements, has led to lower airfares and increased accessibility to air travel, thereby encouraging tourism. The study highlights the competitive pressures faced by traditional network carriers, the growth of international tourist arrivals in the Asia-Pacific region, and the challenges posed by increased air traffic on airport infrastructure. Recommendations include the construction of new primary airports to alleviate congestion and support sustainable growth in the aviation industry. The analysis concludes that deregulation has revolutionized the aviation industry, fostering competition and innovation while significantly impacting tourism trends in the region.