Travel Reference
In-Depth Information
With regard to the future, two interesting threats loom on the horizon for international
airline alliances. Although each of the 'big three' have grown consistently over a number of years,
the fi rst issue of concern ahead relates to airlines beginning to switch alliances, partly through
choice, but also in response to changing patterns of ownership where the new owners are allied
to 'competing' alliances. This will naturally impact on alliance choice and begin to create some
instability in a phenomenon which to date has simply grown with limited attrition and
withdrawal. International airline alliances represent complex collaborative arrangements but one
anticipates that they are soon to become even more complex. The second issue is perhaps even
more troubling in that the market is becoming increasingly more able, and willing, to seek
cheaper fares elsewhere through the Internet facilitated to a great degree by the speed and ease
with which individuals can now create, book and pay for their own itinerary online. Although
this has been a strong feature of domestic and short-haul fl ights for some time, and which has
served as the catalyst for the exponential growth of low-cost airlines across Europe, the USA and
Asia, only recently has it started to make inroads into the highly lucrative long-haul market. For
the future, therefore, it may in fact be external technological advances driven by the Internet that
represent the greatest threat to existing collaborative arrangements in the domain of international
airline alliances rather than internal migrations between existing alliances.
Conclusion
Although far from being a new phenomenon, collaboration continues to represent a signifi cant
strategic choice for many industries with collaboration widespread across travel and tourism. The
example of international airline alliances is indicative of many of the issues such collaborative
arrangements face with the emergent nature of collaboration particularly noteworthy. It is ironic,
perhaps, that collaboration has served as an ideal strategy for international airlines to enhance
their market reach and overall marketing appeal while it is the very dynamic nature of the
market, and technological advances at their disposal, which may yet serve as the greatest threat
to their long-term survival in the years ahead. That said, to date Zhang and Zhang (2006: 298)
conclude that the 'rivalry between complementary alliances tends to enhance economic welfare,
because the strategic effort results in a higher degree of alliance, and hence greater output levels,
than would be the case in the absence of such rivalry' (Zhang and Zhang 2006: 298).
As with nearly all forms of collaboration, however, it is interesting to refl ect on the thoughts
of Fyall and Garrod (2005: 219) who conclude that 'when the organization - or more precisely
the individuals making decisions on behalf of the organization - begin to recognize that they can
do better by collaborating with other organizations in their problem domain rather than
competing against them, the collaborative efforts in which they are participating will likely begin
to fl ourish'. By the same token, 'collaboration among those still deeply wed to the competition
paradigm is more likely to meet with failure, or partial performance, than it is with unqualifi ed
success'. As such, although there are multiple rationales for the adoption of collaboration
strategies with numerous benefi ts and drawbacks arising, it is more often than not the mindset
and collaborative orientations of those contemplating collaboration that are likely to continue to
represent the key drivers of collaborative success.
Ultimately, to succeed through collaboration there is a genuine need to believe in it and not
view such an approach as 'second best'. As with international airline alliances, all those entering
into collaborative alliances need to fully recognize the benefi ts to be achieved, the challenges
they introduce and the timescale that best fi t their individual objectives. More importantly,
perhaps, there is also the need to recognize the temporary nature of collaboration as all
collaborative forms are emergent in nature with the vast majority coming to some form of
