LOW COST AIR COMPANIES IMPACT IN LISBON AND PORTO CITIES HOSTELS DEVELOPMENT

Abstract

Low cost carriers has been a successful business model in the development of new traffic flows where Portugal was not an exception with Ryanair dominating in Oporto and EasyJet being already the second most important airline in Lisbon. The existence of these new low cost flights has carried, largely, to the appearance of new accommodation models less expensive in these cities (hostels). The main objective of this investigation is to understand the contribution of these airline carriers to the development of hostels in these cities and, on the other hand, evaluate if those low cost carriers were important for the creation of new touristic flows that, without them, will never visit these cities, namely in terms of backpacking tourism. The analysis based in a survey done to the hostels shows that there is a great adherence in terms of relation between hostels and low cost airlines as well as the use by backpackers tourists.