The evolution of Virgin Australia for a low-cost carrier to a full-service airline: implications for the tourism industry

Whyte, Randall, Prideaux, Bruce, and Sakata, Hana (2012) The evolution of Virgin Australia for a low-cost carrier to a full-service airline: implications for the tourism industry. In: Chen, Joseph, (ed.) Advances in Hospitality and Leisure. Advances in Hospitality and Leisure, 8 . Emerald Group Publishing, Bingley, UK, pp. 215-231.

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Abstract

This chapter explores the evolution of Virgin Blue, a low-cost carrier that commenced operations in Australia in 2000, through a process that saw it emerge as a full-service airline by 2012. The path of evolution is analyzed with the aid of several strategic marketing concepts including strategic windows and repositioning. Given the contemporary nature of the area of study, the research employs historical narrative and case study methodology. From a tourism industry perspective, the discussion highlights the usefulness of the strategic management approach including the use of strategic windows and demonstrates that firms are able to successfully reinvent themselves to respond to new market opportunities. The results also highlight the need for destination marketing organizations to be alert to changes in airline operations that may fundamentally alter their value proposition in some of the target markets that they are operating in. In the case of Virgin, the airline evolved from a low-cost airline to a full-service airline and in the process lost some customers who were pursing low-cost holiday options but gained customers who were less price sensitive.

Item ID: 26376
Item Type: Book Chapter (Research - B1)
ISBN: 978-1-78052-936-3
ISSN: 1745-3542
Keywords: strategic windows; positioning; low-cost carriers; fullservice airlines; Ansett; Virgin
Date Deposited: 29 Apr 2013 04:04
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1506 Tourism > 150699 Tourism not elsewhere classified @ 100%
SEO Codes: 90 COMMERCIAL SERVICES AND TOURISM > 9003 Tourism > 900303 Tourism Infrastructure Development @ 100%
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