Sensitivity of Pricing Strategies and Non-Price Competition of Airline Industry in Promoting Tourism in Sri Lanka (With Special Reference to Inbound Tourist Promotion in Sri Lanka)

Abstract

Price is one of the vital components of a marketing mix which generate revenue for any business organization in the world. It is identified that there is a significant relationship between pricing strategies and buying behavior of consumers. Pricing and non-price competition strategies help stakeholders to achieve their short term and long term coorporate objectives. Non price competition strategies have a different format of attraction air travel passengers. The study focuses to examine the impact 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 Travel agents) out of it (Sample proportion of 73%) to evaluate the results of the survey to examine whether there is an impact of pricing and non-pricing strategies of airline industry in promoting tourism in Sri Lanka.This paper focuses sensitivity of various types of pricing strategies and non-price competition of airline industry with special reference to inbound tourist promotion in Sri Lankan.

The study found that there is a strong relationship and association between a limited numbers of pricing strategies such as Price Predatory, Price limiting which are being operated in the airline industry. The study further fund that some non-price strategies are also has a strong relationship and significant impact on the tourism industry. The findings of the study would help to formulate new strategies and polices to attract more inbound tourists to Sri Lanka.

Key Words : IATA Registered Travel Agents, Price competition, Non Price competition.