News | Sunday, 07 March 2010

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Low cost tourists are younger, affluent but shun hotel stays

Matthew Vella
Low cost carriers (LCCs) seem to have transported younger and more affluent passengers to Malta, but showed a marked disposition to go for self-catering accommodation or staying with friends and relatives instead of choosing hotels.
A study of the introduction of LCCs to Malta appearing in the Journal of Air Transport Management shows that between 2005 and 2007 many of these passengers were “younger and more affluent” passengers compared to UK tourists travelling to Malta.
The study argues that this may be a reflection of the dominance of Air Malta, whose market positioning has more in common with charter carriers than with mainline carriers such as British Airways.
Similarly, both UK and LCC tourists were likely (31%) to cite history and culture as a key reason for travelling to Malta, according to 2007-2008 data. However, “there is little sign that these passengers are more eager to visit Malta’s cultural heritage or to stay in its historic districts.”
Interestingly, the study claims that there is a greater proportion of LCC passengers to stay in self-catering accommodation or with friends or relatives. Up until Spring 2007, 12% LCC tourists opted for self-catering accommodation compared to 8% of UK arrivals during 2006.
“There was a corresponding fall in the proportion of LCC tourists staying in hotels, although it is perhaps surprising to note that 16% of the LCC travellers in winter 2007 were staying in five-star hotels.”
While there was no significant increase in LCC tourists choosing Valletta or Sliema as their place of stay, more opted for large resorts in the north of the island in the autumn and winter season, or to stay in St Julian’s during the spring.
“This suggests LCCs have contributed little to recent efforts to develop a genuine city break,” the study notes, although it adds that Malta’s small size means “most cultural sites can be easily reached from any part of the islands.”
The most obvious indicator of the new LCC travellers was the increase in first-time visitors: in spring 2007, 59% of LCC passengers were first-time visitors compared to 45% of UK tourists in spring 2006.
In 2007 Malta attracted 1.2 million tourists who spent just over €1 billion, a year after introducing LCC giant Ryanair.
Ryanair will be setting up a base in Malta from May, positioning one aircraft at the airport and opening up an additional six routes, increasing the number to 19. The additional low-cost routes include Billund in Denmark, Krakow in Poland, Marseille, Seville, Valencia and Bologna.

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