Is a cluster a necessary condition for success? The case of Benidorm

This paper analyses the application of the cluster concept to tourist destinations using Benidorm as a case study. A questionnaire was administered to tourism firms based in Benidorm in order to determine whether this destination currently constitutes a tourism cluster or whether it possesses the ideal characteristics to become a cluster with the private agents' collaboration, that is, whether it is a potential cluster. The results obtained from this research indicate that Benidorm's success is not derived from the presence of a cluster due to a series of elements that prevent its existence. In this destination there is a need to strengthen cooperation between public and private agents (especially in those areas that determine the competitive advantage of the destination) and to design a strategy based on shared goals. Both of these elements are fundamental for the characterisation of a cluster.

The impact of the internet on the pricing strategies of the European low cost airlines

This study seeks to analyse the price determination of low cost airlines in Europe and the effect that Internet has on this strategy. The outcomes obtained reveal that both users and companies benefit from the use of ICTs in the purchase and sale of airline tickets: the Internet allows consumers to increase their bargaining power comparing different airlines and choosing the most competitive flight, while companies can easily check the behaviour of users to adapt their pricing strategies using internal information. More than 2500 flights of the largest European low cost airlines have been used to carry out the study. The study revealed that the most significant variables for understanding pricing strategies were the number of rivals, the behaviour of the demand and the associated costs. The results indicated that consumers should buy their tickets before 25 days prior to departure.