Evaluating Possibilities of Regional Tourism Services in the Air-passenger Transport Global Market (A Case Study of Latvian Market)

The research outlines the issue of specific regional service distribution in small countries' outbound tourism market, as ancillary non-aviation services on the global market of air-passenger transport services (as illustrated by the Latvian market data). The article provides the statistics of passenger flows at Riga airport, which allows evaluating the number of foreign airline passengers arriving in Latvia, considering them as potential consumers of ancillary services in the regional spheres of tourism, leisure, education, etc. The material puts forward the idea of regional service aggregation in the framework of the Next Distribution Capability model introduced by the International Air Transport Association, in cooperation with airline carriers, Global Distribution Systems and international travel associations. The regional aggregator's potential profit was also assessed; and a number of recommendations about its setup and functional structure, as a business company, were offered. PEST-analysis was conducted demonstrating how various factors influence the effectiveness indices for market launches of air-passenger transport services. The paper also emphasizes the expediency of engaging state administration and local government bodies in carrying out a project aimed at creating an aggregator for global distribution of regional services to enhance Latvia's upmarket image and its promotion abroad.