Impact of No-frill Airlines on Tourism Development in Eastern India: An Empirical Study using Correlation Analysis

Abstract

Air transport is part of a broader travel and tourism sector, which is widely recognized as the world's largest industry. The price of air transport has a direct influence on the cost of tourism products and indeed on the consumer's choice of destination.  The purpose of the article is to present and analyze the impact of no-frills airlines sector on the tourist market and especially its contribution to increase the tourists, impact on hotel rooms and tourism organizations in eastern India. To investigate the impact of no-frill airlines on tourism development, correlation analysis is carried out with uses of SPSS version 16.0. The correlation analysis is done on the basis of secondary data sources. Data inputs have been collected for the four financial years (2008 to 2011) from the Ministry of Tourism and Airport Authority of India.

From the result shows that, the no-frill airlines (LCCs) having great influence on tourism development in eastern India as the tourists, hotel rooms and tourism organizations are the key elements of tourism industry as well as tourism development and no-frill airlines (LCCs) have positive impacts on them.