A SEMINAR PROJECT ON “TOURISM INDUSTRY IN INDIA” SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION SESSION (2011-2013) SUBMITTED TO: SUBMITTED BY: Mrs. PRIYA ARORA JYOTI PRASAD DAS Asst. Prof. MBA MBA 1ST SEM Roll no: 11221 (Technology education &Research Integrated Institutions) Affiliated to Kurukshetra University, Kurukshetra .
CONTENT Chapter – 1 INTRODUCTION OF TOURISM Chapter – 2 DEFINITION Chapter – 3 Introduction to Indian tourism Chapter – 4 Unique Characteristics of the Tourism Industry Chapter – 5 Tourism industry and Indian economy Chapter – 6 TOURISM STATISTICS Chapter – 7 A S. L. E. P. T ANALYSIS OF THE TOURISM INDUSTRY IN INDIA Chapter – 8 VARIOUS SECTOR OF TOURISM INDUSTRY Chapter – 9 How to Market Tourism Chapter-10 Indian Tourism Industry Analysis Chapter-11 SWOT ANALYSIS Chapter12- CASE STUDY OF INCRIDIBLE INDIA * Chapter13- DEVELOPMENT OF TOURISM INFRASTRUCTURE IN INDIA
Chapter14- IMPACT OF TOURISM INDUSTRY IN INDIA Chapter15- ENVIRONMENTAL IMPACT OF TOURISM IN INDIA Chapter16- CONCLUSION Chapter17- BIBLIOGRAPHY Chapter – 1 INTRODUCTION OF TOURISM Tourism is travel for predominantly recreational or leisure purposes or the provision of services to support this leisure travel. The World Tourism Organization defines tourists as people who “travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited”.
Tourism has become a popular global leisure activity. In 2004, there were over 763 million international tourist arrivals. Tourism is vital for many countries, due to the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry, and the opportunity for employment in the service industries associated with tourism. These service industries include transportation services such as cruise ships and taxis, accommodation such as hotels, restaurants, bars, and entertainment venues, and other hospitality industry services such as spas and resorts. Also you can read about History of the Culinary Arts.
Chapter – 2 DEFINITION One of the earliest definitions of tourism was provided by the Austrian economist in 1910, who defined it as, “bob total of operators, mainly of an economic nature, which directly relate to the entry, stay and movement of foreigners inside and outside a certain country, city or a region. ” Hunziker and Krapf, in 1941, defined tourism as “the sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as they do not lead to permanent residence and are not connected with any earning activity. In 1976 Tourism Society of England defined it as “Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes. ” In 1981 International Association of Scientific Experts in Tourism defined Tourism in terms of particular activities selected by choice and undertaken outside the home environment. Chapter – 3 Introduction to Indian tourism India’s amazing diversity offers you everything you could ever want in a visit.
From the moment that you set foot in India to be greeted by a graceful namaste, a gesture that denotes both welcome and respect, you are on the way to one of the most rewarding experiences of your life. Bounded by the majestic Himalayan ranges in the north and edged by a spectacular coastline surrounded by three seas, India is a vivid kaleidoscope of landscapes, magnificent historical sites and royal cities, golden beaches, misty mountain retreats, colourful people, rich cultures and festivities.
At any part of the year Indian can offer you a dazzling array of destinations and experiences. In summer, when the subcontinent is sizzling, there are spectacular retreats amidst the heady beauty of the Himalayas or the lush heights o the Western Ghats with cool trekking trails, tall peaks to conquer stretches of white water for the adventure seekers. In the cool of an Indian winter, cities come alive with cultural feasts of music and dance. The balmy weather is an ideal time for you to visit India hopping through romantic cities studded with ancient and medieval forts and palaces.
The sun-drenched beaches are inviting and wildlife sanctuaries with their abundance of flora and fauna are a buzz with the nurture of the young. You can taste the delights of the Indian monsoon anywhere in the country-on a camel safari in the Rajasthan desert when nature comes alive and the peacocks dance, along the west coast where the relentless slant ingrain paints the countryside in brilliant greens or even trekking amidst the stark grandeur of mountain valleys lying in the rain shadow of the Himalayas.
Experience exotic India live like a maharaja in the rich ambiance of royal forts and palaces that are now heritage hotels; luxuriate in the serene beauty of a coral island with its turquoise lagoon; participate in the exuberance of a village fair or a colourful festival; day dream on a house boat drifting down the palm – fringed backwaters; delight in the grace of dancer or shop till you drop buying exquisite silks, carved figurines, brass and silver ware, marble inlaid with semi-precious stones, finely crafted jewellery, miniature paintings, carpets…. at unbelievable prices.
As you travel across the length and breadth of this vast nation, you can see history unfold. You can see palaces, forts, temples, mosques and churches which have been witnesses to timeless pasts and which bring before you the glorious traditions, culture and richness which had made this sub-continent prime choice of destination for explorers down ages. India, always warm and inviting, is a place of infinite variety – one that favours you with a different facet of its fascination every time you come on a visit. What is the real meaning of Tourism in India?
India, located in Asia is Bounded by the Himalayan ranges in the north, surrounded by the Arabian Sea, the Bay of Bengal, and the Indian Ocean). In 2006, about 4 million foreign tourists visited India and spent US$ 8. 9 billion. Delhi is the capital of India. A fine blend of old and new, ancient and modern in every stream of life is the soul of Delhi. A melting pot of cultures, religions and castes makes Delhi a diverse place. Delhi has been the capital of India from the mythological days. The rulers left behind their trade marks in the architecture.
Tughlaqabad fort and the Qutub Minar, the Jama Masjid and the Lotus bah’ai temple, The Humayun’s tomb and the Red Fort, and India Gate and the Magnificent President’s house (Rashtrapati Bhavan). Delhi is famous for its wide roads and crisp winters. One of the few places in India where colours of nature changes with the seasons. From Kerala to Kashmir and from Gujarat to Assam all the mouth watering delicacies and shopping goods are found in Delhi. The cosmopolitan nature of the city has only added to the beauty and glory of it. Big gardens, wide roads, ancient structures, and power of politics is what Delhi is all about.
Delhi is popularly known for its monuments. Most of them which are built by the Mughal Emperors. The state of Goa is situated on the West Coast of India, between the borders of Maharashtra and Karnataka and is better known to the world as the former Portuguese enclave on Indian soil. With the rule of the Portuguese for over 450 years and the consequential influence of the Latin culture, Goa presents a somewhat different picture to the foreign visitor than any other part of the country. The state of Goa is famous for its excellent beaches, churches, and Hindu temples.
The Bom Jesus cathedral, Mangueshi Temple and Shantadurga are famous attractions in Goa. Kerala is a state on the tropical Malabar Coast of southwestern India. Nicknamed as one of the “10 paradises of the world” by the National Geographic traveller, Kerala is famous especially for its ecotourism initiatives. Its unique culture and traditions, coupled with its varied demography, has made it one of the most popular tourist destinations in India. Growing at a rate of 13. 31%, the tourism industry significantly contributes to the state’s economy.
The Kerala Tourism Development Corporation, the government agency that oversees the tourism prospects of the state, has adopted the brand “God’s Own Country” for its campaigns. The slogan holds global Superbrand status . Unlike most other states in India, Maharashtra boasts of a large number of popular and revered religious venues that are heavily frequented by locals as well as out-of-state visitors. It also boasts of the City of Mumbai with its Bollywood fame, ancient cave temples at Ajanta and Ellora, the Tuljabhavani temple at Tuljapur, the Mahalakshmi temple in Kolhapur, the city of Pune the eat of the Maratha empire, the fantastic Ganesh chaturthi celebrations and much more Rajasthan, literally meaning “the land of the kings”, is one of the most attractive tourist destinations in Northern India. The vast sand dunes of the Thar Desert attract millions of tourists from around the globe every year. Attractions of Rajasthan Jaipur – The capital of Rajasthan, famous for its rich history and royal architecture. Jodhpur – fortress-city at the edge of the Thar Desert, famous for its blue homes and architecture. Udaipur – Known as the “Venice” of India. Jaisalmer – famous for its golden fortress.
Barmer – Barmer and surrounding areas offer perfect picture of typical Rajasthani villages. Bikaner – famous for its medieval history as a trade route outpost Mount Abu. Pushkar-It has the only Brahma temple in the world and much, much more. Chapter – 4 Unique Characteristics of The Tourism Industry There are four main characteristics which distinguish the tourism industry from other service providers: Inflexibility: The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on an airplane is fixed so it is not possible to meet sudden upsurges in demand.
Similarly, restaurant tables, hotel beds and airplane seats remain empty and unused in periods of low demand. The seasonal nature of tourism activity exacerbates this problem. Perishability: Tourism services are highly perishable. An unused hotel bed or an empty airplane seat represents an immediate loss of that service as a means of earning profit. This has an impact on overall industry profitability. Fixed location: Tourism destinations are fixed locations so effort must be concentrated in communicating the facility to the potential consumer.
A consumer can conveniently watch a Hollywood movie at the local cinema but has to be persuaded to travel to India to see the Taj Mahal. Relatively Large Financial Investment: Every modern tourist establishment and facility requires large investment, frequently over a long time scale. This means that the level of risk and the rate of return are critically important to tourism management. Classification of Services ON THE BASIS OF THE END USER The end user for Tourism Services is always the CONSUMER, and therefore on the basis of the end user, Tourism Services fall under the category of ‘Consumers’.
However these consumers may vary, which is why Tourism Services also differ. SERVICE PRODUCT CONTINUUM As per the Product-Service Continuum, Tourism Services fall under the category of “Goods + Services”. The core product is the destination, which is purely intangible. However, tourism is linked to a number of tangible goods such as souvenirs, cuisine, etc which constitute an important part of any vacation or holiday any consumer might take. Therefore it cannot be classified as only services, and falls under the category of “Goods + Services”. PEOPLE BASED SERVICES
Tourism Services are high contact services, as people interact with people at virtually EVERY stage of the way. Tourism services are very people-oriented services, and the service people are plenty and have high contact with the consumers. The consumer interacts with a myriad of service people starting from when he books his ticket and throughout the course of his holiday. EXPERTISE Tourism Services are mostly professional services. The service people include travel agents, tour operators, hoteliers, caterers, tour guides, etc. Almost all of these people are trained and are professionals.
They might be trained by professional institutes (IATA, IITM, etc. ) or by the agency/company they are working for (SOTC). ORIENTATION TOWARDS PROFITS All Tourism Services are commercial, and are undertaken with a view to earn profits * * * DOMESTIC OR FORIEGN TOURISM As per 1998 figures, Domestic tourists traveling through the country were 167 million approximately. Tourist arrivals in India for the year as on March 2002 were 23,70,784 (Inbound Tourism). The number of Indian citizens traveling abroad was 38,10,908 (Outbound Tourism). Chapter – 5 Tourism industry and Indian economy 1. Tourism Industry ; Indian Economy 2. Introduction In a country as diverse and complex as India, it is not surprising to find that people here reflect the rich glories of the past, the culture, traditions and values relative to geographic locations and the numerous distinctive manners, habits and food that will always remain truly Indian, according to five thousand yearsof recorded history. * The tourism industry in India is substantial and vibrant, and the country is fast becoming a major global destination. India’s travel and tourism industry is one of the most profitable industries in the country, and also credited with contributing a substantial amount of foreign exchange.
This is illustrated by the fact that during 2006, four million tourists visited India and spent US $8. 9 billion. 3. * Tourism ; Indian Economy * Tourism industry has become an important part of the Indian economy. Its contribution to the GDP and to the employment in the country is close to 6% and 9% respectively for the year 2005-06 and 2006-07. Thisindustry is one of the major foreign exchange earners in India. The tourism sector is linked to many other sectors of the economy, affecting the growth and employment in those sectors. * Several reasons are cited for the growth and prosperity of India travel and tourism industry.
Disposableincome in India has grown by 10. 11% annually from 2001-2006, and much of that is being spent on travel. * 4 * Today Indian economy depends a lot upon its invisibles and tourism sector is a major part of it. “ It is a treat to watch such type of unity” remarked the President of India at the inauguration of fifth Global Travel and Tourism Summit in New Delhi on 8th April, 2005. * India n tourism crossed 3 million mark (3. 37million) in number of arrivals of foreign tourists in year 2004, showing a remarkable growth of 24 % over the previous year. The number of foreign tourist arrivals in2004, 3. 7 million, in India formed 0. 44% of total world foreign tourist arrivals. The foreign exchangeearnings have also grown by 38% to US$ 4810 billion. * The total contribution of this sector, direct and indirect, to Indian GDP is around 5. 83%. This sector is directly and indirectly linked to many other sectors in the economy. A growth in tourism industry affectsindustries like handicrafts, handlooms, transportation (mainly aviation), real estate (or infrastructure) and many more. One of the major sectors to which tourism is linked to is Real Estate * Both these sectors act complementary sectors to each other.
More the number of tourist arrivals more is the requirement of better infrastructure, hotel, restaurants, houses etc. The point to be noted over here is that this real estate sector is not a stand alone sector. It is further linked to more than 200 different sectors like cement, steel, glass, electrical, water supply, carpentry, transportation and many more. * Another major aspect of the tourism industry is the employment opportunities attached to it. Tourismindustry is the largest employer in the world. In India, the direct employment from tourism contributes to 4. 9% of the total employment in the country. Adding the indirect employment to it, the figure goes up to 8. 27% i. e. the total employment generated by the industry in India is around 40 million. 3 Also, 50% of this employment generated is indirect. This means that the growth in this industry has a strong impact on the employment in other industries also. 3. * The year 2004-05 saw tourism emerging as one of the major sectors for growth of the Indian economy; the foreign exchange earnings increased from Rs. 16,429 crore to 21,828 crore. In 2006, the tourismindustry registered a growth rate of 17. % in foreign tourist arrivals, which has been the highest in last 10 years. Foreign exchange earnings grew at an even higher rate 30. 2%. * India tourism industry is thriving due to an increase in the arrival of foreign and greater than before travelby Indians to domestic and abroad destinations. The visitors are pouring in from all over the world: Europe, Africa, Southeast Asia and Australia. At the same time, the number of Indians traveling has alsoincreased. Some tourists come from the Middle East to witness the drenching monsoon rains in India, a phenomenon never seen in desert climates. . * The disastrous tsunami didn’t affect India’s tourism industry, as tourist arrivals in India rose 23. 5% inDecember 2004 and tourist arrivals crossed the 3 million mark for the first time in 2004. * Global recession has failed to affect Kashmir tourism industry as more and more tourists continue to throng the valley. According to the players in the tourism industry, many domestic tourists have already cancelled their tours to European countries and are coming to Kashmir valley. This has helped toincrease the number of footfalls in Kashmir. 5. Medical Tourism The next big opportunity in Indian Tourism industry could be Medical Tourism. Medical tourism has the potential to generate Rs. 10,000 crore. To cater this opportunity, the Tourism Ministry of India has set a target of attracting one million medical tourists by 2010. It has the potential to become a major driver ofIndian economy like Information Technology. The medical procedures in India are much cheaper as compared to US and European countries. * For example in April 2005 Madras Medical Mission hospital successfully completed a complex heart operation for US$8000 on an 84 year old patient which would have cost US$40,000 in US.
Another advantage for India is that, it can provide many medical treatments at one place, like yoga, meditation, ayurveda, and allopathy. Indian government is also taking steps to promote Medical Tourism. 6. Leakages Though the tourism industry is booming and helping both Indian and world economies to grow, there are a few downsides to this industry. A huge seasonal employment exists in this sector. This seasonal employment is mainly in developing countries where tourism industry is not much developed. In these countries for a few months the tourism is low and comparatively fewer workforces are required.
Here the jobs are also under paid when compared to the similar jobs in developed countries and are in unsociable hours. 7. * The term Leakage means that out of the total amount of money spent on the tourism of a country, a major part leaks out of that country (mainly developing) to the other countries (mainly developed). This leakage occurs when the host country wants to provide international facilities to their tourists. This leakage can be “internal leakage” or external leakage”. * Many times the tourists arriving the host country demand for the goods like some equipment, food, drinks etc. hich the host country cannot provide them. This leads to internal leakage because to fulfill the needs of tourists, the host country has to import these goods from other countries. External leakage occurs because; these host countries (mainly developing) might not have enough capital to build aninfrastructure to attract foreign tourists, which calls for an investment from foreign countries (mainly developed). Now these external investors are a part of their business and will take a major part of there earnings. In India the leakage is around 40%, i. e. 0% of the earnings generated by India tourism leaks out of the country. 8. Steps taken by Government * The Government of India has adopted the policies which are benefiting Tourism in India. Improved touristinfrastructure, enhanced air connectivity, improved road infrastructure, road shows in Europe and many other initiatives have helped Indian Tourism. The Budget 2006-07 also mentions about the developmentof 15 tourist destinations and circuits. It will identify 50 villages with core competencies in handicrafts, handloom, and culture close to these circuits and develop them.
Four new hotel management institutes will be established. C Along with this, the reduction in FBT (fringe benefit tax) on travel and hospitality will also help the industry. 5 In 2004-05, a nation wide campaign was launched, for generating awareness about the effects of tourism and preservation of our rich heritage ; culture, cleanliness and warm hospitality. Chapter – 6 TOURISM STATISTICS Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators.
Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry. The tourism industry is now one of the largest sectors earning foreign exchange for the exchequer. In the face of such benefits, many countries have started assigning due weightage to the tourism industry in their national development agenda. Tourism statistics: Tourism is one of the world’s fastest growing industries at present and holds the status of the world’s no. 1 industry. The tourism industry as a whole is presently estimated to earn over US$ 3. trillion worldwide. The industry creates a job every 2. 4 seconds with every one of those direct jobs creating another 11 indirect ones. Spending on tourism amounts to 5%-10% of total consumer, spending in a year worldwide. India’s share of the total market is a pittance at 0. 51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India. However, the average duration of stay of foreign tourist in India is one of the highest in the world. On an average, it exceeds 27 days in the case of non-package tourists and is 14 days in the case of package tourists.
Tourism has the distinction of being the third largest export industry after gems and jewellery and readymade garments in India. The Tourism industry’s foreign exchange earnings in India are around $3. 2 billion. Tourism is the highest foreign exchange earner if we consider the fact that net value addition in Gems and jewellery is less than 30 % whereas, in tourism it is more than 90 %. India: Tourism Revenues and Expenditures 1990-2010 It also has one of the best employment multipliers when compared with any other industry in India. It generates maximum job opportunities, as it provides direct employment to 9. million people and indirect employment to another 12. 4 million. But these statistics not appear so impressive when viewed in the global perspective and compared with that of other countries shown in the graph below. Tourists Arrivals and Receipts From Tourism 1996 Source: 1. Report, World Tourism Organization-1996. 2. Study by Mahajan and Aibara, Consultants to the Tourism and Hotel Industry, 1997. Tourism has been a neglected sector in India. Though it was recognized as a priority sector in the Seventh Five Year Plan, hardly anything was done to promote this industry.
Though the government has promised to give industry status to tourism, still, budgetary support for this department is a mere Rs. 379 crore. This is despite a total tax collection of about Rs. 2000 crore in 1996 from this sector. The tourism industry currently127th on the list of priorities of the Indian government. It is true that India has yet to reach the prosperity level where leisure activity can be included in the priority sector but, if solving the country’s unemployment and foreign exchange problems are on the top of the national agenda, the potential of this industry cannot be neglected.
Chapter – 7 A S. L. E. P. T. Analysis Of The Tourism Industry In India: Social: Tourism was always looked upon as something that led to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60’s to the early 80’s when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state. This had a ripple effect on the country.
People became cautious, especially of the international tourists. Whenever a certain place became famous, the example of Goa was cited to discourage the inflow of international; tourist However some places such as Kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them. In addition, tourism as a form of recreation has really caught on.
People themselves have started traveling and are willing to travel to a place that is out of the way and exotic. While traditionally traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for adventure tourism and also visit places that might be exotic and cannot really be called hospitable. For example, now places like Leh and Lakshwadeep are mentioned in the same breath as Goa or Kashmir. Legal: The laws that govern the industry are not the same in all the parts of the country.
Many of the laws that are in effect are old and archaic, and not geared to meet the challenges of the 21st century. With respect to taxation, the World Travel and Tourism Council has observed that “Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%”. Such high taxation renders the tourism sector as a whole uncompetitive. Further, there is considerable disparity between state level taxes, especially on food and beverages. In fact, the sales tax on imported beverages varies widely, e. g. 63% in Karnataka to 28. 5% in West Bengal. With respect to Foreign Investment in any tourism related venture, clearance must be obtained from the Central government (RBI or Foreign Investment Promotion Board). 51% foreign equity is automatically approved subject to meeting certain prescribed criteria, including having a capital base proposal below US $143 million (Rs. 6 billion). In the case of NRIs, 100% foreign equity is automatically approved. Foreign equity holding above 51 percent are possible, but are subject to FIPB approval. It is to be noted that the Ministry of Industry provides final clearance of FIPB approvals.
Dividends on such investments are repatriable. The National Policy on Tourism lays emphasis on sustainable development of tourism. In accordance, the Government has brought out a comprehensive Eco Tourism Policy and Guidelines. There are several Acts and laws, which ensure sustainable tourism. These are the Wild Life Protection Act 1972, the Environment (Protection) Act 1986, and Prevention of Cruelty to Animals Act 1986. These do not set aside any specific area for tourism, but such areas have to be identified by the State Governments and obtain the required approvals/relaxations.
Eco-tourism policies and Guidelines have been formulated by the Government in consultation with the industry and are being implemented on a voluntary basis. Economic: The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world. Since we are concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands.
This has led to a tourism boom the world over and India has been no exception. There have been more people coming into the country with more cash than ever before. This has lead to an increase in the demand for better hotels. People who previously used to come to the country on a shoestring budget and hunt around for the cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in the number of hotels in the country. However, an increase in spending does not only limit itself to accommodation. The increase in the spending is also evident in the increase in the number of people traveling by air.
Even the number domestic tourists traveling by air has dramatically gone up. Political: The political factors are the main driving force of the industry. The Indian tourism industry is built on the backbone of Government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry, the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government.
The major reason as to why tourists visit India is for the vast and rich heritage that our country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges high rates of taxes on the luxury and the star category hotels and this has always been a cause of disagreement between the hotel associations and the Government. There are many areas where the growth of tourism has not been rapid or has seen dramatic fall because the political environment has not been conducive.
Examples are the North East for the former and Kashmir for the latter. The neglect of the Government in developing the North-East has led to a situation where there is practically no tourism in the seven states. Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual decimation of the flourishing tourism industry. However, there has been a change in many of the policies of the Government with regard to the tourism industry. The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states.
After years of tight control over airport infrastructure, Government has finally taken the decision to privatize the airports. Technological: Although technology does not seem to be a major influence at first glance, it plays a major part in the promotion of a place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Improved technology in the field of communication at cheaper costs has resulted in many remote and inaccessible areas of the country getting connected to the rest of the world.
This connectivity has made these places visible to the world. Better communication means access to media. And that is very important if any place wants to be on the world tourist map. Similarly better transportation facilities have lead to a dramatic increase in the number of tourists visiting any particular place. The presence of an airport and the availability of frequent flights are a great convenience to any traveler. TYPES OF CUSTOMERS & SEGMENTATION * A. Users Of Tourism Services The users of tourism services can be categorized in a number of ways.
One such way of classifying the users is by dividing them into categories such as General, Sex, Region, Education, etc. 1. General: Domestic, Foreign Kids, Teens, Youths, Seniors Students, Executives, Artists, Politicians, Movie stars 2. Sex: Men, Women 3. Region: Rural, Urban 4. Education: Literate, Illiterate 5. Status: Rich, Poor 6. Profession: Executives, Academics, Sportsmen, Artists 7. Occupation: White collar, Blue collar Another method of classifying users of tourism services is on the basis of the frequency of usage of services. 1.
Non-users: They lack the willingness, desire and ability (income & leisure time). 2. Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse. 3. Actual Users: They are already using the services generated by the tourist organizations 4. Occasional Users: They have not formed the habit of traveling 5. Habitual Travelers: They have formed a habit and avail of the services regularly. Another method of classifying users of tourism services is on the basis of the frequency of usage of services. 6.
Non-users: They lack the willingness, desire and ability (income & leisure time). 7. Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse. 8. Actual Users: They are already using the services generated by the tourist organizations 9. Occasional Users: They have not formed the habit of traveling 10. Habitual Travelers: They have formed a habit and avail of the services regularly. * Segmentation Though there are a number of bases for segmentation of tourists, one of the most important is Lifestyle.
Traveling decisions are fantastically influenced by changing lifestyles. They are also affected by other factors such as level of income, availability of leisure time, etc. BASE OF SEGMENTATION| CATEGORIES| Holiday| Mass market| | Popular market| | Individual market| Demand| Primary| | Secondary| | Opportunity| Geography| International| | On the basis of regions, cities, etc. | Psychography| Lifestyle| | Personality motive| | Knowledge| Demography| Age| | Sex| | Religion| Socio-economic| Rich, Poor| | Rural, Urban| | Literate, Illiterate| Purpose| Business Travel| Cultural Tourism| | Common Interest Convention| Age| Teens| | Youth| | Seniors| Such segmentation is useful when deciding the offerings to target a particular segment. For example: The mass market consists of vacationists that travel in large groups and prefer all-inclusive tours. They are generally conservative. The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This group includes pensioners and retired people. The individual market consists of chairmen, senior executives, etc. As the lifestyle changes, consumption of services might change.
For example, a newly married couple might prefer romantic holidays, but once they have children they would prefer family vacations where there are plenty of activities to entertain kids. Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations Chapter – 8 * * * Various sector of Tourism Industry The tourism industry comprises of the following main and distinctive sectors: * Transportation * Accommodation * Tour operators * Tourism Destination Operators/ Destination Management Transportation
Tourism industry is heavily dependent on the transportation industry which comprises of airlines, cruise and ferry lines, passenger railways, coach and bus travel, car hire. Thanks to the increase in tourist traffic, over the years, the range of airline services has considerably, not only in terms of frequency of flights and number of destinations, but also in terms of different services, and differing levels of service to meet different passenger needs. This shows the important role marketing plays as competition and demand intensifies.
Passenger rail services have also changed, and their role in tourism is as wide as with, for example, Euro rail tickets allowing extensive international travel at basic(service) standard for students and budget tourists, to the luxury of Palace on Wheels – where the train voyage is the holiday. Cruise lines are operating different services tailored to consumers’ budgets, and other shipping lines involved in the tourist industry, especially the ferry operators, are broadening and upgrading their range of services and facilities to meet consumer expectations, and to remain competitive.
Coach and bus companies have acted in a similar fashion and so have the car rental companies. Accommodation Accommodation includes hotels, ranging from the biggest international chains recognizable worldwide such as Hilton and Holiday Inn to small independent establishments. In order to gain recognition in an increasingly competitive marketplace, many smaller independent hotels have grouped together, adopting a consortium approach. Under a central brand name, they can offer central reservations services, for eg. nd present a recognizable identity to consumers which enables them to compete against the larger, more established chains. Other types of accommodations are also well established in tourist markets, notably self-catering apartments and club type complexes. With the innumerable dream destinations India offers the best of the accommodation facilities to the travelers to the land. There are plenty of hotels and resorts in India that cater to the needs of tourists of all kinds. The hotels and resorts in India provide high standards of quality of ccommodation, facilities and comforts to satisfy the client’s at the most reasonable rates. The variety of hotels and resorts in India ranging from Luxury Hotels, Standard Hotels, Budget Hotels to the Heritage Hotels In India. Then there are several Indian & International Hotel Chains in India. The services and the facilities are such that the hospitability of India gets revealed always. Throughout the length and the breadth of the country that is dotted with tourist destinations the hotels and resorts are available to make your experience of India unique.
The incomparable and incredible land of India offers plenty of accommodation options such that the visit to the wonderland suits all pockets. The country where tradition and trends fuse to give you the best the range of possible accommodations is vast. There are the exclusive hotels and hotel chains that boast of luxurious amenities and world-class decor. Hotels in India have been categorized on different parameters all of them taking into account the factors such as service provided, infrastructure, location, heritage value, and types of guests accommodated.
Like many other countries worldwide, these categorizations help the common travelers zero down on the accommodation option he can afford or wanted to stay at during his/her visit. Tour operators Tour operators are the firms which specialize in providing the whole holiday package, incorporating travel and accommodation needs for the consumer. They range from highly specialized operations such as Indianvisit. com, who customize every kind of trip that you can dream of, to large operators offering services at all different levels to cater for budget, family, or singles holidays to ‘near’ or ‘faraway’ destinations.
Thomas Cook is one of the best known of such operators; they also offer travel agency and financial services to their consumers. An independent local coach firm may also be a tour operator, and many transportation companies also offer holiday packages. In today’s competitive market and with the increased bargaining power of the consumers there is only one way to survive in the rat race and that is by segmenting the market and offering different products pertinent to the demand of that segment. With this in mind, what does a holiday in India symbolizes?
This is a question that every traveler to this vast subcontinent of human beings, dust, chaos, and religion asks himself at least once. For many of them India is the exotic orient where you can find only the snake charmers or sadhus. For few who have gone through contemporary literature on the country, India is an organized chaos (as described one of the renowned writers and sociologists). For the ones who have seen the exploitations of Indian expats in Silicon Valley might consider the country as a future hub of knowledge economy.
For a quintessential vacationer in India, the country presents itself in the plethora of colors, hues, and shapes. With its inexhaustible range of culture, traditions, wildlife, beaches, and mountains India is huge. The country is not only about chaos and ways to control them; it is about life, the civilization and continuity of it that makes people look beyond the obvious. But obvious, we believe, is not the choice that you are going to make while visiting India. What you need is something different, something that is new, and something that is exciting.
Concept tourism is one exciting option that a few tour operators like Indianholiday. com believe is worth taking interest in. These operators give you a number of exciting options categorized according to the interest and concept to tour India Wildlife Holidays Heritage Holidays Pilgrimages Ecotourism in India: India, the land of geographical varieties offers several tourist destinations that not just de-stress but also rejuvenate you. There are several ways to enjoy Mother Nature in most pristine way.
There are series of eco tours for India that provide the coolest hangouts to take pleasure in indulging oneself into the God gifted environs. Beach Holidays: Has the combination of Sun, Sand, Sea and Surf ever tempted you to take a break from the daily monotonous chores that you perform so religiously? Then we have just the right package for you with the sure-shot itinerary to relax you completely. The balmy beaches of India are perfect escapade for the fun loving holiday tourism seekers. India with its long coastline of 7500 kms, offers some of the most exotic beach holidays and beach tourism destinations in the world.
The great peninsula with the Indian Ocean in the middle and accompanied by the Arabian Sea and the Bay of Bengal on each side besides the two archipelagos of Lakshadweep and Andamans is perfect for beach holidays for tourists the world over. The young state of Goa certainly happens to be the Beach Capital of India. It offers the perfect spot for the novice divers. The blaze of glory, the beautiful waves, the swinging palms and the many hues of the sky, the nature is for sure at its best at the beaches. India boasts of many beaches of Goa in the West, Kovalam in the South and Gopalpur in the East.
So you may head towards any direction of the Indian peninsula and be invited to the sun bathed beaches. The never-ending shores and the untouched oceanic horizons seem to be mesmerizing. The photogenic dawn and dusks at the beaches are sure to be repetitive visitor to the shores. * Cultural Holidays: Ever wondered at the cultural diversity of India? The enticing unity represented by the people of the country who display a wide range of religions, culture, customs and languages. The rich and varied heritage happens to be one of the many sources of pride of the nation.
The mysterious ways of the people, their lifestyles and the inseparable culture cannot be done solved in words but can surely be enjoyed with experience. * Adventure Holidays: Ever felt the waves of a river on your face, wish to see to the land and everything on it from a height of 18,000 feet? Fancy trotting from one palace to another riding a camel or perhaps get a better view of the jungle sitting smart on an elephant? Well if any of them is an affirmative, the adventure holidays and tourism in India are just for you. Try out the aerial, aqua or land adventures and enjoy.
The quest to do the uncommon, the desire to meet challenges makes people take up any of the adventure activities and rejuvenate themselves. India is the land of variety and diversity. The terrain of the sand dunes and long stretches of barren land is ideal for desert safaris, the queen of rivers, the fun of watching the wildlife at the Corbett National Park gets multiplied when enjoyed riding an elephant, the Ganges is irresistible for the water sports and the scenic beauty of Jammu is picture perfect for the paragliding. You name the adventure and India has the right spot for it. Ayurveda and Rejuvenation: India adheres to the age-old philosophy of Ayurveda – in a traditional way – that’s what makes India a different locale to visit. Ayurveda recognizes that each individual is different and so treatment too should be customized. Ayurveda, the traditional Indian system of medicine holds out to the world the promise of a healthy long life. step into the world, where healing is a ritual and nurturing life a tradition, i. e. experience the magical power of Traditional Ayurveda. Ayurveda and Rejuvenation programs include a few programs combining Ayurveda along with sightseeing and other aspects of tourism in India.
An extensive and well – crafted out Ayurvedic treatment package that would rejuvenate your body and mind and make you face the hustle and bustle of the city life again. * Golf Tours: If Golf, is what you are passionate about and you happen to be an avid traveler then the 21 day Golf Holidays package of India being offered is something you cannot refuse to go ahead with. The perfect break from the stressful routine religiously followed otherwise. Just catch up with the Golf fever that has caught the entire country in a big way.
Add that extra touch of versatility in you by playing the different surfaces in the various golf clubs developed in several cities of India. The turfs, the mounds, the climate, the yards of green all make golf better than ever before. * Handicrafts Tours: * Festival Tours * Museum Tours * Railway Tours: Kuuuuu; Chuk Chuk !!! Doesn’t the whistle of the luxury train. Be onboard the luxury trains of India, the Palace on Wheels, the Royal Orient and the Toy Trains are the pride of Indian Railways, the largest passenger train service in the world seem to invite you.
The Palace on Wheels lives by its name and is no less than a fort on the swing. The lavish lifestyle, the facilities, the decor, the comfort and the style have made the first tourist train of India the most sought after. The marvelous train that today is a joint effort of the Rajasthan Tourism Development Corporation and the Indian Railways. During this excursion, the tourists are overwhelmed with the beauty at the major stations of Jaipur, Chittaurgarh, Udaipur, Jaisalmer, Jodhpur and Bharatpur, and Agra chugging through the culturally colorful states of Rajasthan and Gujarat.
You may even opt for a voyage onboard the Royal Orient, the train offering both style and comfort. It is a project of the Tourism Corporation of Gujarat Limited along with the Indian Railways. The rainbow of cities trotted by the royal extravagance of the bygone era include Delhi, Chittaurgarh, Junagarh/Veraval, Somnath/Sasan, Gir/Ahmedpur, Mandvi/Palitana/ Sarkhej, Ahmedabad and Jaipur. Besides the Royal trains, the toy trains of India have attracted many a tourists.
The ride on the train with a 4500 kilometers track chugs through the popular hill stations of the country like Shimal, Darjeeling, Ooty/ Udagamandalam or Ootacamund and Matheran. The toy trains are called so because of the narrow gauge railway lines they ride on. The wondrous miniature of rail engineering that offers the most scenic beauties of the Himalayas from Kalka to Shimla and another from Jal Pai Guri to Darjeeling. * Yoga Tours in India: India has been the land of saints and sages who meditated and practiced yoga. The spiritual city of Rishikesh happens to be the Yoga capital of India.
Tourists and travelers flock to contemplate and practice Yoga and meditation in the lap of Himalayas. The city hosts the International Yoga Week every year in the month of February attracting several experts and participants. Backwater Tours in India: Cruising along the backwaters of Kerala is an ideal way to discover the real Kerala. The placid backwaters that stretch for over fifteen hundred kilometers are covered with swinging palm trees. The tourists are left spell bound by the tranquility of the backwaters while riding the Houseboats, it’s the most authentic and unexplored way to explore the beauty of the backwaters.
The Houseboats that float on the backwaters are the improved version of the Kettuvalloms. The frequently visited tourist destinations amongst the backwaters in Kerala comprise of Kovalam, Alappuzha, Kottayam and Ernakulam. The tourists may indulge into tourism activities like boating, fishing and sightseeing while exploring the backwaters of Kerala. The backwater cuisine, which comprises of delectable fresh fish like pearl spotted fish, barramundi, crabs, mussels and prawns is finger licking good. All these tours have been designed keeping in mind the requirements of travelers coming from different parts of the world.
Apart from these, there are some organizations which specialize in custom made tours. Some of these tours offered are: Special theme parties: Under these the following options are available Moonlight Boat Cruise on the Backwater of Kerala: Guests are ferried aboard a spacious, specially decorated boat for a delightful moonlight cruise on the backwater of Cochin. South Indian culinary surprises are served. There is also a thrilling firework display. Rajput Wedding: A traditional Rajput wedding ceremony where the group members participate as ‘Baraati’ (the bridegroom’s family and friends who form the wedding party) and the bridal party.
Bollywood: Guests in garish costumes, some posing as directors, some as action heroes, romantic leading ladies, ruffians live their dreams of becoming a star. Corporate incentive tours: In today’s world incentive travel is one of the most effective marketing and motivational tools especially in the corporate sector. After all those long hours at work let the corporate employee get the much-deserved break in the form of an incentive. The various corporate incentive tours that are offered have been planned in a manner to rejuvenate and refresh the employees for the forthcoming assignments.
Along with the corporate incentives tours arrangements can be made for conferences, conventions, seminars, board meetings, client presentations, training programs, workshops, dealers meet or any other relationship building activity in any destination in India. Dream Marriages: Tie the knot with your knight in shining armor in the most royal way. Celebrate the biggest and the best occasion of your life – Marriage- in the most beautiful style. Get married at any of the captivating castles, pulsating palaces or the happening hotels and make your dream come true.
At your dream marriage there will be fun and festivity all around backed by the music of your choice and decorations with your favorite flowers. The feast to your eyes and ears will be equaled by the sumptuous food that will treat the taste buds at the dream marriage. From champagne bottles and confetti to photographers we can arrange it all for the special you and the very special occasion of your dream marriage. The setting for the realization of your dream will be splendid and the arrangements will be spectacular for your marriage that will bring smiles on every face and heart Chapter – 9
How to Market Tourism The Product Mix: Components of a tourism product The tourism product is essentially an intangible thing. Also, because tourism is a multi-segment industry, the task of formulating a product mix becomes more difficult ; challenging. Selling a holiday is ‘selling dreams’. The way to win the customer’s heart is through the peripheral services provided along with the core product. Thus a tourism product is quite a complex one, including the destination, airline seat, hotel room, occasional tangible products such as souvenirs, a free bag or bottle of whisky, etc.
Innovation in the tourism industry helps to raise the sensitivity in this regard. There is nothing fixed or fundamental about the tourism product. The content factor is within the jurisdiction of the government that undertakes the maintenance, development and conservation of tourist attractions such as parks, museums, beaches, historical treasures, etc. Unless these factors are developed in the right fashion, the marketing professionals would never be successful in making the marketing resources productive. Thus the direct or indirect patronage of the government is essential to get a positive response.
The government and private tourist organizations work together to undertake activities such as developing infrastructural facilities such as transportation, water, banking, Medicare facilities, etc. , and also developing and maintain hotels, cottages, havelis, lodges, etc. The Price Mix In pricing decisions, the product or the service mix of the tourist organization is important. They have to set prices in line with the quality of services to be made available to the customers. Pricing decisions are influenced by internal and external factors.
The tourism professionals are supposed to watch the emerging trends in both the markets. They are required to think in favour of discounting price. These may include discounts for cash payments, seasonal discounts, trade discounts etc. But while offering the discounts, it is not to be forgotten that it may also create image problem since some of the value sensitive tourists may doubt the quality. The Promotion Mix Creation of awareness has a far reaching impact. The tourist organizations bear the responsibility of informing, persuading and sensing the potential tourists in a right fashion. The marketers need to use the various omponents of promotion optimally so that they succeed in increasing the number of habitual users. Promotion helps in maximizing the duration of stay, frequency of visit by offering new tourist products in the same country to areas which hitherto have remained untapped or partially tapped. The various dimensions of tourism promotion are as follows: Advertising: Advertisement helps in furnishing important information to the actual and potential tourists. Its coverage is wide. Advertising is aimed at the public to create awareness of the travel offers available on a resort and its attractions to influence their business decisions.
Intangibility can be compensated with the help of visual exposure of scenes and events. We can project hotel bedrooms, well arranged restaurants and cafeterias, swimming pools etc. Publicity: It focuses attention on strengthening the public relations measures by developing a rapport with media people and getting their personalized support in publicizing the business. It helps in projecting the positive image of tourists organizations since the prospects trust on the news items publicized by the media people. Eg. Kumarakom in Kerala after Prime Minister A B Vajpayee’s visit.
The publicity programme include regular publicity stories and photographs to the newspapers, travel editors, contact with magazines on stories etc. There are different groups in publicity, such as advertising publicity, projected publicity, structural publicity and personal publicity. Sales promotions: Sales promotion measures are the short term activities seeking to boost sales at peak demand periods to ensure that the firms obtain its market share and are used to help launch a new product or support an ailing or modified one. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive.
There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-a-vis the emerging trends in the business. Eg. In the tourism industry, a travel company offers give-aways to their clients, such as flight bags, wallets for tickets and forex and covers of passport. The hotels offer a number of facilities like shoe shine clothes, first aid sewing kits, shower caps and shampoo. Further, the VIP clients also get fruits and flowers in their rooms. Thomas Cook offered 3 tier sales promotion based on price and one more novel technique as detailed below: Cook agreed to match the price of any holiday they sold which was known as price promise. * Money back guarantee to the clients who purchase the product or any tour operator known as trading charter. * Matching of customers need with a particular holiday known as formal guarantee. * A business travel challenge in which the details of expenditure on staff business travel booked through other agents over a 3 months period were submitted by companies to Cook, specially to calculate expected savings, provided the bookings are made through them.
Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information which in a true sense is word-of-recommendation. In the tourism industry it is found that the word-of-mouth promoters play the role of a hidden salesforce, who instrumentalize the process of selling. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel, specially in the eyes of the potential tourists. The sensitivity of this tool makes it clear that tourist organizations need to concentrate on the quality of services they promise and offer.
The marketers or the tourist organizations need to keep their eyes open, identify the vocal persons or the opinion leaders and take a special care of them so that they keep on moving the process of stimulating and creating demand. Personal Selling: Personal Selling is based on the personal skill of an individual. The oral representation in conversation bears the efficacy of transforming the motivation into persuasion. The travel and hotel business depend considerably on the personal selling. The development of travel and tourism has been possible due to well educated and trained sales personnel.
The development of tourism business has been influenced by the services rendered by the travel agents and travel guides since they work as information carriers. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the personal customers. It is important to mention that in the tourism industry, the personnel who attend tourists form an essential ingredient of the product, such as sales personnel are found responsible for dealing with customers behind the counter, the resort representatives cater to the need of tourists when they reach the destination etc. ll of them play a vital role in ensuring that the tourism products satisfy the tourists. The phrase- the customer is always right applies specifically to the tourism industry. No reduction in price would compensate for impolite and indecent travel guide, a solvent waiter and a surly or a haughty coach driver. These facts are testimony to the proposition that the travel business is linked with the performance and behaviour of sales personnel or travel staff. Telemarketing: it is a method of selling in which a professionally sound telemarketer expands the business.
The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. In tourism, the travel agents, offices of airways, receptionist, secretaries can’t work efficiently if the telephonic services are not up to the mark. This makes a strong advocacy in favour of recruiting a person considered to be professionally sound, personally-committed sales personnel having an in-built creativity, innovation and imagination. Place Place or distribution management is concerned with two things – availability and accessibility.
Researchers in tourism must determine how and where potential customers prefer to buy tourism products and services. Most tour operators sell their services through travel agents, however some deal directly with the consumers and eliminate middlemen. Other companies may also utilize more than one method of distribution. Airlines, for example, sell tickets through travel agents, and sell seats on flights to tour operators, and also offer travelers to book seats themselves through their own booking offices.
There exist, however, a number of intermediaries in the tourism marketing channel. It depends largely on the channel type. The intangibility feature in the service sector prevents intermediaries from taking possession or ownership of goods. Tourism, however, proves an exception where cuisine and souvenirs are goods and ownership is possible for the intermediaries. Transport also plays a major role in the tourism industry. It makes the destinations accessible to people from around the world.
Also, in the case of tangible products in tourism such as souvenirs and cuisine, transportation becomes a major logistical component. People We can’t deny the fact that sophisticated technologies have been successful in accelerating the pace of development. We also agree with this vie
