SENSITIVITY OF NON-PRICING STRATEGIES OF AIRLINE INDUSTRY IN PROMOTING TOURISM IN SRI LANKA (WITH SPECIAL REFERENCE TO INBOUND TOURIST PROMOTION IN SRI LANKA)

Abstract

The pricing strategies were the strategies that encompassed in order to improve the economic stage in the business cycle. The non-pricing strategy occurred when the organization decided to distinguish its products from their competitor products in order to make the quality of service to the services. Pricing and non-price competition strategies help stakeholders to achieve their short term and long term corporate objectives. Airline industry is no alien to the pricing and non -price competition strategies since they play a pivotal role in the airline industry to promote its products and services to attract more passengers towards to the respective body. Non price competition strategies have a different format of attraction air travel passengers. Non price characteristics, which may include convenience of flight schedules, frequent flyer programs, the quality of in-flight service and bundle promotions seem to be much more important in explaining passengers' choice behavior. As such, the results have implications for the focus of antitrust policies in the airline industry when assessing the impact of mergers, alliances, or collaborations other business decisions of airlines. Therefore, it is equally important to understand and examine the non -price competition strategies, since it generates a lot of fringe benefits that have directly catering to the consumer’s desires. The study focuses to examine the sensitivity of the non-price competition strategies whilst selecting IATA registered travel agents as the population of the study. A considerable sample proportion was taken (sample of 85 IATA registered Travel agents out of total 117 IATA registered travel agents. A sample proportion of 73% was taken from the population to evaluate the results of the study to examine whether there is an impact on non-pricing strategies of airline industry in promoting tourism in Sri Lanka. This paper focuses sensitivity of various types of and non-price competition of airline industry with special reference to inbound tourist promotion in Sri Lankan. The study found that some non -price strategies are also has a strong relationship and significant impact on the tourism industry. Further found that there is a strong relationship and association between tourist arrival and non -price competition strategies. The findings of the study would help to formulate new strategies and polices to attract more inbound tourists to Sri Lanka.