Passenger reactions to market deregulation: First results from the experience of the Greek islands market

The move towards deregulated transport markets is generally expected to increase competition thus producing benefits for the passengers. This paper examines the effect of competition between of air and sea transport following deregulation within the Greek Aegean region. Comparison of market surveys conducted over three periods identifies how passengers respond to this process. Findings suggest that competition between modes is increasing, although the final form of the market remains to be seen.