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International Handbook on the Economics of Tourism

Edited by Larry Dwyer and Peter Forsyth

This highly accessible and comprehensive Handbook presents a cutting edge discussion of the state of tourism economics and its likely directions in future research. Leading researchers in the field explore a wide range of topics including: demand and forecasting, supply, transport, taxation and infrastructure, evaluation and application for policy-making. Each chapter includes a discussion of its relevance and importance to the tourism economics literature, an overview of its main contributions and themes, a critical evaluation of existing literature and an outline of issues for further conceptual and applied research.
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Chapter 8: The Evolution of Alliances in the Airline Industry

Frédéric Dimanche and Dominique Jolly


Frédéric Dimanche and Dominique Jolly Introduction Business alliances represent a growing trend, particularly in the tourism sector. This chapter explores the nature of these business alliances, the effect of pulling resources together, and the types of benefits expected by the respective partners. After reviewing the existing literature on strategic alliances, the purpose of the chapter is then to use a new typology of alliances that we illustrate in the context of tourism and more specifically airlines. Two types of inter-firm alliances are identified: endogamy and exogamy. Endogamy occurs when partners share related profiles, whereas exogamy appears when allies exhibit unrelated profiles. The usefulness of this typology is that it enables the researcher to use resource-based approaches (Wernerfelt 1984; Grant 1991; Hamel 1991) so as to suggest a dichotomy between alliances generating opposite results and representing very different stakes and risks. For practitioners, this typology allows the distinction between two classes that call for significantly different managerial approaches. More specifically, we propose the use of this original alliance typology to cast a new light on the evolution of strategic alliances in the airline sector. Importance of alliances Quantitative evolution For the past few years, observers of the tourism sector would certainly identify agreements between firms as one of the most significant business trends (Archambault 2000). Indeed, the professional press worldwide is replete with examples of mergers, acquisitions, takeovers, alliances, partnerships and other inter-firm agreements in all...

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