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EXECUTIVE SUMMARY

Tourism is a very complex industry due to its multiple activities that satisfies the need of the tourist. Tourism includes transportation, accommodation, food, catering, tourist attraction as well as organizers like tour operators and travel agents. Moreover, a tour consists of different requirements of different people and it is not a homogeneous product. Tourism is an engine of development and change. India received 3.4 million foreign visitors in 2004, up 23.5 per cent year-on-year and revenue rose 36.1 per cent to $4.8 billion. Arrivals in 2005 are expected to surge by up to 30 per cent. The tourism sector is the third largest foreign exchange earner and needs more attention. Tourism is one of the biggest employers; it employs more people than IT and agriculture. The perception of what tourism means to a country has to undergo a sea change if India has to move from its current status of 3.3 million foreign tourists arrivals in 2004 to the top10 tourist destinations in the world. People have to be sensitive and aware of the role of tourism; otherwise we will kill the goose that lays the golden egg. When tourism happens, prosperity increases. There is considerable government presence in the travel and tourism industry. Each state has a tourism corporation, which typically runs a chain of hotels /motels and operates package tours, while the central government runs the India Tourism Development Corporation. Divestment of these state-run tourism corporations have either already taken place or are in process. Incoming foreign tourist arrivals have shown a 6% compounded annual growth rate over the last 10 years. The government has realized the potential and has advanced several incentives to promote infrastructure growth in the tourism sector. Current investments are likely to see hotel room capacity increase by 20% over the next three years, with several international hotel chains entering the hotel industry. Similar growth is anticipated in air travel capacity.

INDEX
Sr. No
I 1.1 1.2 1.3 1.4 1.5 1.6 II

TOPICS COVERED
CHAPTER I Introduction Importance Present Senario Uses Types Advantages CHAPTER II The tourism Marketing Mix

Page
1 1 4 5 7 10 18

19

III

CHAPTER III Extended Marketing Mix 30

IV

CHAPTER IV Market Segmentation 55

CHAPTER V Role Of Technology 60

VI

CHAPTER VI Quality Dimensions In Services 66

VII

CHAPTER VII Future Of Tourism 71

VIII

CHAPTER VIII Conclusion 81

TABLE OF CONTENTS
CHAPTER I.........................................................................................................................1 Introduction.....................................................................................................................1 Importance.......................................................................................................................3 Current Senario in India...................................................................................................4 Uses of Tourism...............................................................................................................5 Types of Tourism.............................................................................................................7 1.........................................................................................................Heritage Tourism ......................................................................................................................................8 2...................................................................................Leisure and Recreational Tours ......................................................................................................................................8 3.....................................................................................Business and Incentive Travel ......................................................................................................................................9 4.................................................................................Adventure and Holiday Tourism ......................................................................................................................................9 5..........................................................................................................Wildlife Tourism ....................................................................................................................................10 6.....................................................................................................Pilgrimage Tourism ....................................................................................................................................11 7..........................................................................................................Medical Tourism ....................................................................................................................................12 8.................................................................................................................Eco Tourism ....................................................................................................................................13 Advantages of Tourism..................................................................................................14 CHAPTER II......................................................................................................................15 The Tourism Marketing Mix.........................................................................................15 1..........................................................................................................The Product Mix ....................................................................................................................................15 2...................................................................................................The Promotional Mix ....................................................................................................................................17

3..............................................................................................................The Price Mix ....................................................................................................................................18 4..............................................................................................................The Place Mix ....................................................................................................................................18 CHAPTER III....................................................................................................................23 Extended Marketing Mix..............................................................................................23 1...........................................................................................................................People ....................................................................................................................................23 2.........................................................................................................................Process ....................................................................................................................................28 3........................................................................................................Physical Evidence ....................................................................................................................................30 CHAPTER V.....................................................................................................................42 Role of Technology in Tourism....................................................................................42 CHAPTER VI....................................................................................................................47 Quality Dimensions in Tourism....................................................................................47 CHAPTER VII...................................................................................................................52 Future of Tourism Industry............................................................................................52 SWOT Analysis.............................................................................................................54 PEST Analysis...............................................................................................................59 CHAPTER VIII.................................................................................................................62 Conclusion.....................................................................................................................62 BIBLIOGRAPHY..............................................................................................................64

CHAPTER I INTRODUCTION

Within the Asia-Pacific region, the Indian sub-continent is well balanced to take advantage of the boom in the tourism sector. Tourism is a very complex industry due to its multiple activities that satisfies the need of the tourist. Tourism includes transportation, accommodation, food, catering, tourist attraction as well as organizers like tour operators and travel agents. Moreover, a tour consists of different requirements of different people and it is not a homogeneous product. Tourism is a fast growing economic activity in many countries around the world and plays an important role in the economic and technological development of nations. The tourism is undergoing a sea change with the revolutions in communication and information technology. Everybody in the tourism industry will have to change and rediscover its place in newly defined value chain. The role and the service offerings will undergo a big change in the present cyber world. Therefore in the new millennium, most of the countries including India are spending millions of dollars for the revamping of the existing facilities or the creation of new ones.
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Tourism has emerged as one of the worlds most important activities. It is the worlds largest export industry. According to the World Tourism Organization, about 663 million tourists traveled internationally in 1999 and spent about US$ 453 billion. The figures indicate that tourism has certainly become a major social phenomenon of the modern society with enormous economic consequences. Its important as an instrument for economic development and employment generation, particularly in remote and backward areas, has been now well recognized the world over. Tourism is a temporary and short-term movement of people. Tourism is the totality of relationship. Tourism is an activity involving a complex mixture of material (accommodations and attractions) and psychological elements (attitudes and expectations). Tourism is the activity concerned with the utilization of leisure hours. Tourism is a composite industry consisting of various segments. Tourism is also one of the biggest employment generating industries

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IMPORTANCE Tourism companies play a great role in the economy of the country like INDIA. Government is making many efforts to boost the tourism activities. Infrastructural development is given utmost importance in the recent BUDGET so that more and more foreign tourist will be attracted. Following points clearly shows that tourism sector is of very much importance and helps major role in the development of economy. It is Indias second largest foreign exchange earning activity after Gems & Jewellery. It is also worlds largest EXPORT industry. It is largest employment generating industry in India. There is high rate of contribution of tourism towards GDP. It also helps to increase the activities of other industries like Transportation, Communication, Hotels, etc.

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CURRENT (PRESENT) SENARIO IN INDIA India is a democracy at its best with more than 900 million people steering the path of progress. This vast land with its enormous diversity of history, people, culture and human life, makes for a product mix that can take in almost the entire world. The rich beauty of its ancient monuments, the beat and rhythm of its folk and classical dances, its colourful crowded bazaars, the grandeur of its snow-capped mountain tops, the quiet back waters and beautiful beaches and above all its friendly and charming people make India a land of tourist paradise. It is also a secular country with a heritage of an all encompassing ancient culture and cosmopolitan tinge. Despite these favorable factors, the international tourist traffic to the country still continues to be comparatively less though there has been considerable growth over the years and it has emerged as one of the largest foreign exchange earners of the country. Tourism is presently the third largest export industry in India - the first two being gem and jewellery and ready made garments. The foreign exchange earning from tourism is estimated to be about Rs. 7400 crores as against Rs. 7.7 crores in 1951. The most beneficial impact of tourism is its capacity to generate large scale employment opportunities, particularly in remote and backward areas. The direct employment in the sector during 1994-95 was about 7.8 million persons accounting for about 2.4% of the total labour force. The labourcapital ratio per million rupee of investment at 1985-86 prices in the hotel and restaurant sector is 89 jobs as against 44.7 jobs in the case of agriculture and 12.6 jobs in the case of manufacturing industries. In the case of tourism, after combining the relevant individual segments. The ratio becomes 47.5 jobs and is still higher than most other segments. It is thus clear that tourism can play a major role in resolving the problem of large scale unemployment in the country provided it is developed on the desired lines with major inputs and initiatives from the Central Government. A third impact of tourism, which is of particular significance to India, is its contribution to national integration. Over 100 million domestic tourists visiting different parts of the country every year return with a better understanding of the cultural diversity of people living in different regions and carry with them a feeling of friendship and peace.

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USES OF TOURISM International tourism receipts form part of the balance of payment accounts of individual countries and are of major significance to both developed and developing countries. The main consideration for the development of tourism in several countries is, therefore, its balancing impact on the foreign trade account. Tourism generates income and employment in the tourist receiving regions, be it a country, region, town or village. It makes the best use of resources which may not be used otherwise. Tourism can, thus, become an effective instrument of growth if it is developed through proper planning as a positive force to stimulate economic activity, improve ecology, and foster national integration and mutual understanding of people of every nation. The spectrum of employment generated by tourism varies from highly trained communication and computer specialists to room boys, sales girls, receptionists, waiters and unskilled workers. The airlines, travel agencies and tour operators also need several men and women with a variety of skills which are not too difficult to master. Tourism also provides high potential for self employment in a variety of ancillaries such as horticulture and handicrafts. Tourism is also a source of amenities for the resident population of the tourist destinations. Because of visitor's arrival, the residents may enjoy a higher standard of public transport, shopping and entertainment facilities than they would be able to support otherwise (Burkart, A.J. and Medlik, S., 1976). The provision of employment, income and amenities for the resident population is, thus, the three main beneficial effects of tourism which apply to a greater or lesser extent to any tourist destination. These benefits are of particular significance to developing countries as no sophisticated technology is required to establish such facilities. In some locations, tourism may provide an infrastructure, which in turn forms the base and stimulus for the diversification of the economy and for the development of other industries. Over and above, an established infrastructure often acts as an attraction to new and less directly related economic activities. Tourism expenditure, thus, stimulates an economy beyond the sectors concerned with tourism. Apart from its direct contribution to the economy, tourism has significant linkages with several other sectors of the economy like agriculture,
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horticulture, poultry, handicrafts, construction, etc. Several items of tourist expenditure induce a chain of transactions in various other sectors. Each such transaction calls for the supply of some kind of goods and services. Further those directly or indirectly employed following the development of tourism may also demand more goods and services as a result of such employment that what they would have demanded otherwise. The additional consumption demand, thus emanating from tourist expenditure, will not only induce more employment, but also generates a further multiplier effect through a successive chain of transactions. As a result of this twin set of multiplier effectsindirect and inducedadditional income and employment opportunities are generated through each successive transaction. The impact of tourism on regional development and distribution of income is also significant. Tourists normally seek out areas in the interior of the countries for reasons of purity of environment, privacy, scenic beauty and its outdoor appeal. These national resources would otherwise be underutilized as there are few competing claims for their use. Tourism, thus, offers itself as a way of economically utilizing resources which would otherwise remain either idle or underutilized, but attract the attention of visiting tourists. The exploitation of rural areas and the less developed countrysides through schemes such as outdoor treks, beach and mountain resorts, etc. far from the maddening crowds of urban areas will lead to the development of such areas. Such an involvement of the rural and interior areas can have a constructive effect on re-distributing the earnings from tourism. Tourism also contributes significantly to the development of art and handicrafts. The millions of international tourists who are constantly on the move in search of recreation and pleasure support the promotion of such arts and crafts, while contributing substantially to the economy of the region.

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TYPES OF TOURISM All types of tourism in India have registered phenomenal growth in the last decade ever since the Indian government decided to boost revenues from the tourism sector by projecting India as the ultimate tourist spot. The reason why India has been doing well in all types of tourism in India is that India has always been known for its hospitality, uniqueness, and charm attributes that have been attracting foreign travelers to India in hordes. The Indian government, in order to boost tourism of various kinds in India, has set up the Ministry of Tourism and Culture. This ministry recently launched a campaign called Incredible India! in order to encourage different types of tourism in India. The result was that in 2004, foreign tourists spent around US$ 15.4 billion during their trips to India. Being a country with tremendous diversity, India has a lot to offer in terms of tourism and related activities. The diversity that India is famous for ensures that there is something to do for all tourists in India, no matter what their interests.

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1.

HERITAGE TOURISM:

This is a new kind of tourism that has come up in recent times. India is known for its rich cultural heritage and an element of mysticism, which is why tourists come to India to experience it for themselves. The concept of heritage tourism came up to aid & facilitate the curious guests attempt to get to know Indias great traditions. It was realized that the historic homes could be maintained only with their appropriate reuse. The Palaces of Maharajas set the trend by becoming five star hotels. The main charm is the individual attention and personalized services. The homes are modernized to meet the needs of todays International traveler, with adjoining bathrooms, running hot and cold water, modern plumbing, even perhaps a swimming pool. This kind of tourism was developed mostly for the international tourists who wanted to get the feel of traditional India. The various fairs and festivals that tourists can visit in India are the Pushkar fair, Taj Mahotsav, and Suraj Kund mela.
2.

LEISURE AND RECREATIONAL TOURS: It is taken purely sightseeing and pleasure. The intention behind this is to stay away from crowd and from daily routine. India has become an
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ideal place for conference and convention center. A lot of motivation is given to cities like Mumbai, Delhi etc for holding international conferences and seminars.
3.

BUSINESS AND INCENTIVE TRAVEL: Business travelers often overlap the holiday makers; the only difference is that it is not attracted to tourist centers of resort but to the center of trade and commerce. They demand for accommodation, secretarial services, meeting, conference etc. with less emphasis on recreational services like pubs, health clubs etc.

4.

ADVENTURE AND HOLIDAY TOURISM:

As a kind of tourism in India, adventure tourism has recently grown in India. This involves exploration of remote areas and exotic locales and engaging in various activities. Indias vast geographical diversity provides a vast potential for adventure tourism. All tastes are catered to and there is something for everyone. From the gentlest to the fast placed, for the beginners to the experts. Besides this the prices here are lower as compared to international standards. It basically includes the activities like Trekking, Rock climbing, Water-rafting, and Scuba etc. For adventure tourism in India, tourists prefer to go for trekking to places like Ladakh, Sikkim, and Himalaya. Himachal Pradesh and

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Jammu and Kashmir are popular for the skiing facilities they offer. Whitewater rafting is also catching on in India and tourists flock to places such as Uttranchal, Assam, and Arunachal Pradesh for this adrenalin-packed activity.
5.

WILDLIFE TOURISM:

India has a rich forest cover which has some beautiful and exotic species of wildlife some of which that are even endangered and very rare. This has boosted wildlife tourism in India. India is a vast country with geographical diversity from Himalayas to Kanyakumari, its landscapes, volcanic rocks of the Deccan Plateau etc. the Sundar Bans, marshy lands etc is the habitat of 350 species of mammals, 2100 kinds of birds both local and migratory, 350 species of reptiles and countless of insects. India currently has 80 national parks and 441 santuries some of them with excellent viewing facility for the visitors. It would be amazing to see lion in its own habitat. The places where a foreign tourist can go for wildlife tourism in India are the Sariska Wildlife Sanctuary, Keoladeo Ghana National Park, and Corbett National Park.

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6.

PILGRIMAGE TOURISM:

India is famous for its temples and that is the reason that among the different kinds of tourism in India, pilgrimage tourism is increasing most rapidly it is the major segment of growth for local employment and economic development. Temples and tourism go hand in hand more than 50% of 10 million domestic people visit these temples. India has the best temples from Char Dham to Trupati; one of best managed temples is Vaishno-Devi. The government has identified 17 pilgrim places for developing the purpose of tourism. India attracts a large number of tourists from South East followers of Buddhism and Saranath plays host for them. . The various places for tourists to visit in India for pilgrimage are Vaishno Devi, Golden temple, Char Dham, and Mathura Vrindavan.

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7.

MEDICAL TOURISM:

Tourists from all over the world have been thronging India to avail themselves of cost-effective but superior quality healthcare in terms of surgical procedures and general medical attention. There are several medical institutes in the country that cater to foreign patients and impart top-quality healthcare at a fraction of what it would have cost in developed nations such as USA and UK. It is expected that medical tourism in India will hold a value around US$ 2 billion by 2012. The city of Chennai attracts around 45% of medical tourists from foreign countries.

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8.

ECO TOURISM:

Among the types of tourism in India, ecotourism have grown recently. Ecotourism entails the sustainable preservation of a naturally endowed area or region. This is becoming more and more significant for the ecological development of all regions that have tourist value. For ecotourism in India, tourists can go to places such as Kaziranga National Park, Gir National Park, and Kanha National Park.

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ADVANTAGES OF TOURISM
There are a number of benefits of tourism for both the tourist and the host destination. On a large scale it offers a good alternative to some more destructive industries for generating income both on nationally and privately. The tourism industry encompasses many different areas, so it also creates jobs in many different areas. With tourism come hotels, restaurants, car rental agencies, tour companies, service stations, souvenir shops, sports equipment rentals, and much more. All of this creates many different levels of employment for people in a given community. In many places the introduction and development of tourism allows local people an opportunity for economic and educational growth that would not otherwise be available. In addition, it allows both the tourist and the local community a chance to experience other cultures, which broadens understanding. If properly used, tourism generated income can be tremendously beneficial to the host country and its local communities. Tourism generated income can be used on a national and local level to better education, improve infrastructure, to fund conservation efforts, and to promote more responsible tourism

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CHAPTER II THE TOURISM MARKETING MIX


The marketing mix refers to the blend of ideas, concepts and features which marketing management put together to best appeal to their target market segments. Each target segment will have a separate marketing mix, tailored to meet the specific needs of consumers in the individual segment THE PRODUCT MIX The product here refers to the tourism service offering. Although service products are essentially intangible, there are certain physical characteristics which consumers will assess in their evaluation of the product choice. These are: Attractiveness of the offering in terms of physical features, suitability of climate etc, The facilities available, and the associated levels of quality and service, Accessibility in terms of ease of getting there for the potential consumer - is there adequate air services, road and other transport considerations?

Package tour products will be broken down into different types to suit the identified needs of consumers. Typically, these will fall into the categories of escorted and unescorted tours, and group tour bookings. Todays package tours cater for varying tastes, offering levels of refinement to suit both the cheap and cheerful budget tourist, and the seasoned traveler seeking more exotic and exclusive services. The tourism product should evolve over time to reflect changes and developments in the tourism market place. This is essential for successful marketing which depends in the first instance on satisfying consumer needs and wants to achieve organizational success. The idea that service products are intangible is an important one, but increasingly firms are trying to make their offering more tangible, thereby increasing their recognition amongst the target buying groups, and enhancing the value of the offering. Physical details such as hotel furnishings are replicated throughout certain chains so that the service
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offering has a strong, easily recognized physical identity which appeals to the security needs of many travelers, and encourages a feeling of being at home in the hotel. Tangible gifts such as toiletries, flight bags, even bathrobes, bearing the company logo or brand are another way of making services more tangible to the consumer. Branding plays a very important role in tourism marketing. Car rental firms, hotel chains and airlines in particular employ tremendous effort to ensure that their name is widely recognized and synonymous with quality, value or some other characteristic. Travel agents and tour operators depend on reputation to a large extent, and so it is imperative that they have a strong, recognizable identity. Usually the main reason for trying to build brand loyalty is to encourage repeat business. If consumer preference can be built up for a particular brand, then the opportunities for repeat business are high. The tourist who always stays with Hilton and rents a car from Hertz will do so whether in Bangkok or London.

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THE PROMOTIONAL MIX The aims of promotion fall into three main categories: to inform, to remind and to persuade. It will always be necessary to inform prospective consumers about new products and services, but other issues may also need this type of communication to consumers; new uses, price changes, information to build consumer confidence and to reduce fears, full descriptions of service offerings and image-building are examples. It is vitally important to recognize that promotion, or marketing communications generally, may not always be aimed at the potential consumer or end-user of the product or service. In many business areas it is necessary to design promotional programmes aimed at channel customers to complement end-user promotions. Hotel owners and airlines will need to promote their services to tour operators as well as promoting their service to end users and independent travelers. Similarly, tour operators will want to ensure that travel agents sell their services in a positive manner, and will therefore want to advertise to the agents the benefits of selling their tours, whilst advertising totally different sets of benefits to the end user. This type of promotion is referred to as into the pipeline promotion. The crucial task is to assess accurately the needs and wants of intermediaries, as opposed to actual consumers and design promotional messages accordingly. There are a number of promotional tools available to the tourism marketing manager, which can be combined to create effective promotional programmes. Sales promotion plays a very important role as does advertising. Visual media are perhaps the only way to advertise tourism destinations properly. Whatever means are used, it is important to focus on the following: Clearly identified segments A unique selling proposition Well defined target audience Creative use of media and media scheduling to reach audiences Monitoring and evaluation of promotional effectiveness.

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THE PRICE MIX Pricing in tourism is a fairly complex issue because the price eventually paid by the consumer may be made up from the prices charged by various independent service providers in the case of, say, a package tour. Variations in the level of demand cause further complication in tourism pricing, particularly due to seasonality. Providers of tourism products and services will almost always be faced by high levels of fixed costs, leading to variants of cost-plus pricing or returnon-investments as key determinants of pricing levels. It is also important, however, to have a clear understanding of factors affecting price sensitivity, and to include pricing tactics which exploit such sensitivities fully. For example, it may be possible to differentiate service levels and offer higher priced value-added services, as in business-class air travel. Similarly, seasonal demand variations should be considered in price setting. THE PLACE MIX Offering of service has a far reaching impact on the organizational prosperity. This draws our attention on the processing of services by the different categories of personnel involved in the process. A sound distribution system is found essential to improve the quality of services or to bridge over the gap between the services-promised and services-offered. The distributors thus occupy a place of outstanding significance. The normal eyes fail in receiving the historical and cultural monuments and the travel guys engaged in the process or the travel agents classify the same. In the tourism industry, the distribution problem is considered with the transmission of information about the services to the concerned users. As and when the bookings are made the information regarding conformation and cancellation become essential and a sound distribution makes it possible. We cant deny the fact that with the use of sophisticated information technologies by almost all the tourist organizations, the task is simplified considerably. The information of computers, sales desk terminals and central reservation system has made the task easier. These are a number of factors instrumental in making the distribution process effective and productive. It is pertinent that the tourists professionals are well aware of the variables influencing the functional style of distributors or the intermediaries working as tour operators, transport operators and the travel agents. It is essential to make clear that the transport operators and tour operators act as wholesaler whereas the travel agents act as the retailer.
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The tourism industry is a multi-segment industry where accommodation, attraction, transportation, communication are found important. The product of these services includes air, sea, road, rail carriers, hotels and other forms of tourist accommodation. In addition, the facilities like catering, amusement, skiing, shopping etc. add attractions to the product. These services reach the ultimate users through tour operators and travel agents. The instrumentality of transport operators, tour operators and travel gents determines the processing of services. The term chain of distribution denotes the method through which the services reach to the distribution. The middlemen are the link and if the link is strong, the producers succeed in raising the influx of tourists. The middlemen are the tour operators and the transport operators who buy services like hotel rooms, seats in the aircrafts, railways, arrange chartered flights and sell the same either to the travel agents (retailers) or even directly to the tourists. The tour operators are also called the producers of a new product. The travel agents buy the services at the request of their clients and provide a convenient network of sales outlets catering to the needs of a local catchments area. In the figure we find the distribution channel for the tourism industry which focuses on the different middlemen engaged in the process of distributing the services. The services are generated by both the public as well as the private sector. The services are supposed to be standardized where the middlemen make it sure that the promised services would be made available to the users without making any distortion. Of course, we find possibilities of distortion at different points by the different service generating organizations but all of them need to bridge over the gap.

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Supportive Services Private Sector

Producers

Supportive Services Private Sector

Guide Services Travel Insurance Travel Finance Travel Press Marketing Support Guide and Time Table Publication Training Post Services

Carriers Air Transport Rail Transport Road Transport

Accommo dation Hotel Motel Chalets Villas Holiday Camp Theme Parks Catering

Attraction Stately Home, Monument Activity Centres, Theme Parks Catering.

National Tourist Organisations (NTOs) Regional Tourist Organisations, Resort, Publicity Offices, Port Services, Visa and Passport Offices, Education and Training

Tour Operations Travel Agents Tourists

One-stage system: the one-tier or one-stage system focuses on the direct selling of services by the providers to the ultimate users, such as the airlines selling directly to users through its own offices and reservation counters. We find a number of advantages of this system, since the providers can maintain the quality. The system is opposed by a number of experts due to high cost of operation. The stimulation of demand requires professional excellence and the travel agents are supposed to have world class excellence to manage things to the expectations of users. Two-stage System: in the two-tier system or two-stage system, we find involvement of middlemen between the providers and users, i.e. travel agent. The positive effects of the system are that a traveler while receivingprofessional services can also buy other products like airline ticket, hotel accommodation and transportation facilities. Besides, he/she gets a single bill for all the services. The price of additional advantage since a travel agent gets higher prices in the case of group tours, conferences, conventions etc. in addition, the services cost incurred on travel agent in found very nominal to the users as he/she receives a commission from the principal. Three-stage System: the three-stage or three-tier system involves two middlemen, a retailer travel agent and a wholesaler or a tour operator. An additional advantage of this system is that the wholesaler makes bulk purchases of the products for which he/she is paid adequate discount.
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Four-stage System: the four-stage system is similar to the three-stage system but it has an additional middlemen. Known as Specialty Chancellor he is found instrumental in the development of tour packages. The aforesaid channels of distribution of the tourism services make available the services to the ultimate users and therefore these are the different points where we also expect a distortion in quality. It is against this background that different providers of the services need to be careful while appointing the middlemen. Tour Operators: a tour operator is one who buys the individual elements in the travel product on his own account and combines them in such a way that he is selling a package of travel, the tour to his clients. In common parlance, he is also referred to as a travel agent. A tour operator bears the responsibility of delivering the services. He creates own packages of by buying or reserving necessary supply elements and often retails through travel agents, their own offices and by direct mail via booking form and brochure or by direct enquires from consumers. He offers a number of packages known as tour programme. They are like a wholesaler. Some of us also call tour operators as producers of a new product but it is more appropriate to describe them as middlemen. Travel Agent: the travel industry is found to be an uncoordinated people trying to achieve a coordinate result. A travel agent is one who acts on behalf of a principle, i.e. inclusive package tour. Of late majority of the travel agents conduct regular package tour to set itineraries with a standard of services besides they design package tour to suit the need of a group. Travel agents form the retail sector of the distribution chain. In the channel decisions, the marketing institutions play a decisive role. The tourists organizations, tour operators, travel agencies are the main institutions helping the making of productive distribution decisions. We agree with this view that product innovation cant be the lone solution for demand penetration since innovation in the distribution process plays an important role. To be more specific in the tourism industry, the middlemen play a commanding role because the products are of perishable nature. This draws our attention on the characteristics of the product to determine the length of the channel. The market factors also occupy a place of importance in the distribution process. From the stand-point of produces, it is pertinent that we design a profitable channel and assign due weightage to cost and satisfaction. The channel involving the minimum possible costs by securing
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high level of satisfaction to the tourists may be effective. To put it another way, the channel cant concentrate only on the profitability element. The aforesaid facts make it clear that the tourists organizations are required to make the channel decisions proactive so that the tourists get the promisedservices without any distortion. If the middlemen act well, perform well and behave well, we expect a considerable increase in business. The hotels, airlines cant work efficiently failing the co-operation of tour operators and the travel agents.

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CHAPTER III EXTENDED MARKETING MIX


PEOPLE We cant deny the fact that sophisticated technologies have been successful in accelerating the pace of development. We also with this view that new generation of information technologies have simplified the task of decision makers. At the same time we have also accept the fact that, the sophisticated technologies cant deliver goods o the development process if the employees operating and maintaining these technologies are not of world class. Whatever the inventions and innovations we find today are the result of our dedication, perfection and commitment. These facts make it clear that technologies need due support of human resources who invent, innovate, and develop technologies. It is against this background that the marketing experts have been found making strong advocacy in favour of treating people as an independent sub mix of the marketing mix. Like other industries, the tourism industry depends substantially on the management of human resources. We are all aware of the fact that tourism industry is an amalgam of different industries and therefore all the supporting industries need to assign due weightage to the management of people who bear the responsibility of accelerating the productivity of technologies used in the process. The tourism industry cant work efficiently if the travel agents, tour operators and travel guides lack world class professional excellence. Of course, the offices of the travel agents depend fantastically upon the new generation of computers and internet services but after all we find employees, staff contributing significantly to the process. The travel guides need professional excellence since the projection of a positive image regarding destination in particular requires their due cooperation failing which even the world class services offered by the travel agents are found meaningless. The tour operator also needs to manage human resources efficiently. In the management of people, the related organizations are required to think in favour of developing an ongoing training program so that we finds a close relation between the development the technologies an the quality of personnel who are supposed to operate and maintain the same. We find strong justifications for an overriding priority to this sub mix of the marketing mix. We focus here on the credentials they need to fulfill

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expectations of customers. We also go through the developments making the environmental conditions conducive and focus on the incentives to them for energizing the performance-orientation. In addition, we make an anatomy of employee-orientation that requires due weightage to efficiencygeneration, value-orientation and perfection. The travel agents are the focal points around which all the activities of tourism industry cluster. The airways, the hotels, the roadways and others cant think of efficiencygeneration if they dont get enormous cooperation of travel agents. Of course, the tourism business cant thrive if the offices of the travel agents not extending to all the allied industries their intensive cooperation. This gravitates our attention on the management of travel agents and the instrumentality of the staff managing the working of their offices. Provisions take the shape of promises. Whatever the tourist organizations provide for is transformed into promises. It is essential that promised services are made available to the ultimate users without making any distortion. Travel Agents: Travel agents form the retail sector of the distribution chain, buying travel services at the request of their clients and providing a convenient network of sales outlets which cater to the needs of the local catchments area. Normally, they dont charge any fee from the clients since they get commission from the principal for each sale they negotiate. In a few cases, we also find them acting as wholesalers and in that case he/she is supposed to be specialists in putting together tour offerings marketed to the public through a network of retail agents or the airlines. As and when they act as a retailer, we find a direct deal with the clients/customers. He represents or acts as an agent for airlines, steamships, railways, hotels, car rental firms or so. He also designs a package tour for customers by assembling in pre-paid and pre-arranged packages. Thus the functional responsibilities before the travel agents make it clear that they are required to be professionally sound to manage their business in a right fashion. Since they make available to the tourists, the necessary information, it is pertinent that information management of the offices of travel agency is promoted by technologies and efficient, submissive, personally-committed employees perform the task. The receptionists working there, the computer professionals at the working desk, the doorman entertaining the guests or clients are required to work efficiently. The computer and super-computers, the internet and intranet, the fax and e-mail would hardly serve the guests if employees operating and maintaining them are not sound. This makes it

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clear that the travel agents bear the responsibility of managing technologies and managing the personnel who operate these technologies. In view of the above, it is essential that the travel agents have a team of dedicated and personally-committed employees. We cant deny the fact that performance-orientation is the main thing for improving the productivity of the technologies used in the offices of the travel agents. The employees or the computer professionals need world class receptionists, secretaries need to be submissive. The behavioral profile of employees serving the offices of travel agents needs a transcendental priority. They need to know about empathy. They need to be soft and submissive. They need to assign due weightage to physical attractions. This draws our attention on the personal care management of the employees serving the travel agents. They are supposed to be neat and clean, well-dressed and to wear the make-up projecting a cultural bias. They need to have high communication ability and in a position to speak English, Hindi or other regional languages, especially of the catchments area and this one with a high frequency. They are supposed to be decent in behavior. They are required to b friendly. These attributes play an incremental role in improving the quality of services of the ravel agents. On the other hand, the travel agents need to be careful while recruiting the personnel and on the other hand, they also need more care and precaution while developing an ongoing training programme. We find a number of professional institutes meant for that very purpose and in addition a time-totime refresher and capsule courses are also to be organized to enrich their credentials. Thus this the first task in the context of managing people of the tourism industry. Technology-driven offices require due cooperation of the professionally-sound, personally-committed employees.

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Travel Guides: There are a number of points where we need the services of tourists guides. The places having historic importance, cultural bias cant be perceived by ordinary persons in a right gashion unless quality tourists guides narrate. This makes it essential that in the tourism industry, the tourists organization assign due weightage to the management of travel guides. In the distribution of tourism products, we cant under-estimate the services of travel guides. The success agency of travel agency is siezably influenced by the instrumentality of travel guides. If they act and behave well, the tourists are motivated and the travel business gains the momentum. If they misbehave with the tourists even the quality services of agency carry no meaning. It is against this background that while managing people for the tourism industry, we need to assign due weightage to the development of the potentials of guides. The modern marketing is found full of complications and uniqueness. The tourists are sophisticated, the tourists sites are sophisticated, they have high expectations and these things would be proved to be unproductive, if the tourists guides are inefficient. This makes a strong advocacy in favour of making available to the industry quality tourists guides. Patient is considered to be the most important aspect for a travel guide. They should have the capacity to adjust with the adverse conditions. If they are agitated, the tourists cant get satisfaction even if the destination is attractive. Sense of humour is another consideration for a successful travel guide. It is the sense of humour that activates the process of motivation. If the travel guides are humorous, the tourists would not feel monotony. This would simplify the task of making the tour memorable. Tact is found essential for transforming the occasional tourists into habitual tourists if he/she is tactful, the tourists would be found satisfied. This draws our attention on the art of managing the odds. Knowledge draws our attention on the on the information bank of the travel guides. He/She should have in-depth information regarding destination and its connecting services. The historical monuments, modern paintings, cultural heritages are found insignificant to the general tourists unless the travel guides narrate to them facts and realities in the plain words.
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Language focuses our attention on the communicative ability of the travel guides. He/She should be competent enough to speak different languages frequently. This is essential to bridge over the communication gap. In this context, we need to divert our attention on Body-language. It is not to be forgotten that the travel in a number of cases can add attractions to their excellence, if they are familiar with the body language of the concerned tourists. Leadership is an essential criterion for an ideal travel guide. He/She should have the quality of leading a team of tourists so that whatever deliberations are made throw a positive impact on the behavioral profile of the tourists. Personal Commitment is found essential to improve the quality of a travel guide. This gravitates our attention on performance-orientation.

These attributes make an individual an ideal travel guide and the professionals institutes wile developing travel guides need to assign due weightage to the aforesaid properties.

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PROCESS: The importance of process management is that it assures service availability and consistent quality. Without sound process management, balancing service demand with service supply is extremely difficult. Service cannot be inventoried; therefore, it becomes essential to find out ways and means to handle peak load to optimize different customer needs with varied expertise levels within the service organization. In marketing management, operation management has been recognized as an integral function. In manufacturing sector, for example, logistics in distribution are vital to satisfy customer needs. Similarly, in service sector, where there is no tangible product, the operation management is vital to deliver satisfaction because here the operation management would decide how the process of service delivery would function or in other words, the interactive experience that would deliver the service benefits to the consumers. Shoptalk gave a much simplified version and described the process in three stages. First a process can be broken down in logical steps to facilitate analysis and control. Second, there are more than one available option of processes in which output may differ. Finally, each system includes the concept of deviation or tolerance standards in recognition that the processes are real time phenomena that do not conform perfectly to any model or description but function within a norm. One can observe how changes in complexity and divergence influence their market position. For managers in service industries, taking a structural approach can help increase their control over some of the critical elements of the service system management. Therefore for marketers in service industries, process design may be a tool that can substantially increase their impact and role in marketing their services. All these services are inter linked and hence follow a process firstly as an international destination is chosen the booking is done with complete details on the booking form regarding meals, rooms etc and then the same is passed to the ticketing counter to block the seats after which this the passport and visas are checked or processed and then given to the operation department to send the details to the foreign

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agents to process further bookings regarding booking of rooms and sightseeing.

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PHYSICAL EVIDENCE: Glynn Shostack once observed, A physical object is self defining; a service is not and therefore the making task in service industries is defining for the service what the service cannot define for itself. Though a customer cannot see a service, but definitely he can see various tangible clues of the service offer like facilities, communication material, objects, employees, other customers, price etc. On the basis of his perceptions on the tangible clues, the customer makes the purchase decision. These clues might be both intended and unintended ones and therefore, managing evidence is integral to the service marketing mix. Shostack even observed that the management of evidence comes first for service marketers. The argument here is that the physical environment, facilities and atmosphere; give enough physical evidence to help shape customer perception. Many service marketers have neglected this aspect while the others gave due emphasis to issues like exterior of buildings, office furniture, layout, colour of interiors, and even carry-bags, tickets, cash memos, labels etc. The advocators of public relations have eve been coined a specific term called corporate identity and suggested that such tools can create a visual identity that the public as customers can recognize. The corporate identity media can successfully contribute towards the marketing objectives provided they are attractive, distinctive and memorable.

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Heres an example of Thomas Cook and how it uses the seven Ps PRODUCT MIX The product taken is the holiday package offered by Thomas cook. Features The features are two way airport transfers by coach; frit platter, cashew nuts cookies offered on arrival, break fast, lunch, dinner offered, sight seeing and activities as per itinerary planning. Variety Variety would be cultural tour, hill retreat, religious tour, wildlife safari, adventurous Design It would be the entire itinerary planning. It includes what route the whole tour will take, in which hotel the customer will stay, the facilities that you will experience over the tour. Brand Name A tour operating company may brand different types of tours i.e. its longs hauls, low budget and medium budget each having individual brand names. The brand name Thomas Cook was been derived from its pioneer Thomas who belongs to a cook family and the idea was conceived from the world tour of Thomas in 1872 Sizes The sizes of packages offered by Thomas Cook depend upon the duration of the tour. It can be short term or long term. 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 the service to be made available to the customers they are targeting. Pricing decisions are influenced by internal factors like pricing policy of the company, and external factors like the destination itself. They are required to think in favor of discounting price. These may include discounts for cash

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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. Payment: In Thomas Cook a few of the payment terms are 1. 2. 13-7 days prior to departure = 50% in advance. 7-2 days prior to departure = 75% in advance.

The rest of the payment is paid directly for the other services received by the customer, instead of the service provider paying for the services on behalf of the customer. Premium Price: This again depends upon the type of customers. For example, if a chairman of a big company is traveling then he would stay in suites of Five Star Hotels like Taj, J.W. Marriott, Ritz Charlton, etc. Examples of prices of Thomas Cook as per package offered: Package name Heritage Village Club South Goa (4 days) Goa Marriott Romancing the Rain Flyer (4 days) Aldeia Santa Rita (3 Star Boutique Resort, Aguada Goa) Bogmallo Beach Resort, Goa (5 days) PLACE MIX Most tour operators sell their services through travel agents; however some deal directly wit the consumers and eliminate middlemen. For example, Thomas Cook has its own branches situated throughout the country so they are easily accessible. The customer, in the travel and tourism industry, has gone to the service provider. Hence strategic locations are very important for Thomas Cook. Other companies may also utilize more than one method of distribution. Channels of Thomas Cook: Thomas Cook follows a direct model. The channel of distribution is Thomas Cook (head office / Branch office) to the customer. Starting From Rs. 8,000 Rs. 14,999 Rs. 7,999 Rs. 6,399

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Coverage: 54 outlets in 16 cities in India (excluding 46 corporate travel implants) Location: Transport also plays a major role in the tourism industry. It makes the destinations accessible to people from around the world. Also, in case of tangible products in tourism such as souvenirs and cuisine, transportation becomes a major logistical component. 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 components 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 have remained untapped or partially tapped. The various dimensions of tourism promotion are as follows: Advertising: Advertisement gives important information to the actual and potential tourist. 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 relation measures by developing a rapport with media people and getting their personalized support in publicizing the business. It helps in protecting the positive image of tourist organizations since the prospects trust on the news items publicized by the media people. The publicity program include regular publicity stories and photographs to the newspapers, travel editors, contact with magazines on stories etc. advertising is a part of publicity. Sales Promotion: 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
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arte used to help launch a new product or support an ailing or modified one. The tools of sales promotion is designed to appeal particularly to those customers who are price-sensitive. There a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis--vis the emerging trends in the business. Eg. In the tourism industry, a travel company offers give-away to their clients, such as flight bags, wallets for tickets, Foreign Exchange (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 used 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. To match the price means that if a competitor offered a lower price tan Thomas Cook then Thomas Cook would reduce the price of its package and reimburse the excess money taken from the customer. 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 3month period were submitted by companies to Cook, especially 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 sales force, which helps the processing of selling. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel, especially 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 stimulating and creating demand.

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Personal Selling: Personal selling is based on the personal skill of the individual. The travel and the hotel business depend considerably on 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 the 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 customers. Years the participation of foreign tourism promotion boards like the Dubai tourism and the Mauritius tourism, etc has increased in order to aggressively promote their respective countries This year 14 different state tourism boards and 10 different countries were represented by their government tourism boards. Countries like Britain, South Africa and Bhutan participated for the first time. The Indian traveler has emerged one of the fastest growing markets for international destination like the Asia pacific region. As per industry estimates, this year more than 8 million Indian travels are expected to embark on overseas travel. These include both tourists and business travelers. Thats 30% growth over last years figure of 6 million Indian who traveled abroad. PEOPLE We cant deny the fact that sophisticated technologies have been successful in accelerating the pace of development. We also agree with this view that new generation of information technologies have simplified the task of decision makers. At the same time we also have to accept the fact that the sophisticated technologies cant deliver goods to the development process if the employees operating and maintaining these technologies are not of world class. Technologies need due support of human resources who invent innovate and develop technologies. Like other industries the tourism industry depends substantially on management of human resources. The tourism industry is an amalgam of the services of a lot of people and hence this industry cannot work efficiently if the travel agents, tour operators and travel guides lack world class professional excellence. Of course the offers of travel agents depend on the new technology but after all employees and the other staff contribute significantly to the process. The travel guides need professional excellence
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since the projection of a positive image regarding a destination in particulars requires their due cooperation, failing which even the world class services offered by the travel agents are found meaningless. The tour operator also need to mange human resources efficiently. In the management of people, the related organization are required to think in favour of developing an ongoing training program so that we find a close relation between the development of technologies and the quality of personnel who are supposed to operate and maintain the same. They need a lot of credentials to fulfill the expectation of the customers. The organization has to make the environment condition conducive and focus has to be laid on the incentives to the employees for energizing the process of performance orientation. Employee orientation requires due weightage to efficiency generation, value orientation and perfection. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. Hence it is imperative that they have to be at their best at all times. Travel guides especially, are expected to have a lot of patience, good sense of humour, tact to transform the occasional tourists into habitual ones, through knowledge of the places linguistic skills etc. The government plays an important role in providing the right kind of people for this industry. As such there are a lot of Govt. and Pvt. Institutes which offer training for the same. At present the Ministry of Tourism is running 21 Institutes of Hotel Management (IHMs) and Catering Technology and 14 Food Craft Institutes (FCIs). The IHMS provide 3 year Diploma in Hotel Management, 1 year Post Graduate Diploma in Accommodation Operations, 1 year Post Graduate Diploma in Dietetics and Hospital Food Science, 1 year Certificate course in Food Production, 6 month Certificate course in Food & Beverages Services, 6 month Certificate course in Hotel and Catering Management, 1 year Post Diploma in Hotel Administration and P.G Diploma in Fast Food Operations. The FCIs are engaged in providing the craft diploma in cookery, Food and Beverages Services/Restaurant & Counter services, Reception & Book Keeping, House Keeping, and Bakery & Confectionery. The training courses run by the Institutes are designed to suit the of the various target groups. Apart from this the Indian Institute of Travel Management (IITM), established in 1983, by the ministry of Tourism, Government of India is filling the vacuum for an institute that develops manpower exclusively for
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the tourism industry. The institute has successfully undertaken major initiative for developing human resources required for the tourism industry. The institute took its shape after the National Committee of Tourism, which comprised members of Parliament, recommended that an institute catering to the requirements of tourism industry be set up immediately. The purpose of the institute is to provide academic opportunities to graduate and undergraduates directly and in collaboration with the leading institutes and universities, for successful careers in Holiday and Leisure Management, tour operation, transportation, accommodation and interpretation services. The institute is working with the objective of total professionalism of human resources engaged in business of tourism through diplomas after graduation, specially designed practical training and field research, foreign language training programs, executive development programs for retired defense service personnel, workshop, seminars and conference, tourism orientation talks at school and college levels and tourism promotion competition among young generation. A student who graduates from IITM is absorbed in the middle level executive position in travel agencies, with tour operators, transport companies, hotels, domestic and international airlines, cargo services, besides getting into government jobs. The institute is also offering course in computer application and software studies, basic course of air travel fares and ticketing, basic course on airlines, travel agencies and tour operation management, basic course in air and sea cargo service management, basic course on computer application in travel and tourism industry, diploma in tourism and travel management and foreign language. Apart from IITM there are other institutes like The Institute of Hotel, Cargo and Tourism Management (IHCTM), another one run by World Tourism Organization and various other private institutes catering to the needs of the industry.

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PEOPLE in service marketing include. 1. EMPLOYEES 2. OTHER CUSTOMERS 1. EMPLOYEES: They are the representatives of the company. Their performance can create a positive as well as negative of the services process and the image of the company. Keeping people factor healthy is one of the prime concerns of the company. When we talk about people in travel and tourism industry they are really crucial part as at every stage they play a role of the service provider on the stage of service encounter also known as moment of truth. Let us see how this holds true in Thomas cook At Thomas cook they keep employees happy using following ways Our values and the work experience Vision without execution is meaningless Our vision To become the No. 1 company in all our Core Business through Customer Focus and Teamwork. Our mission Exceptional Service from Exceptional People Our service strategy We will deliver exceptional service to all internal and external customers by being Proactive, Speedy, Flexible, Transparent, Reliable, Creative By providing Professional Service and Ensuring Personal Care Values that work at work We have a set of well-defined policies dealing with key integrity issues. The scope of these policies includes customers and suppliers, government, competition, dealing within the TCIL community and most crucial of all, personal integrity. Career prospects with us
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Working at Thomas Cook (India) LTD. means working for one of the most dynamic business of the world mainly, Travel and tourism. Globally an average of 10% of a familys income is spent on leisure travel and outbound travel has definitely emerged as one of the fondest aspirations for the Indian family as well. You can choose to be either a part of Leisure Travel, Corporate Travel and Foreign Exchange or Travel Insurance Business. Opportunities also arise from time to time in accounts, HR and IT. Working at Thomas cook (India) Ltd. will make you a part of a young, enthusiastic and professional with most employees in the age group of 25- 35 years. You will find numerous development opportunities since we believe in advertising all vacancies internally first. If you are open to the challenge of expanding your span of experience across business and geographies, you can apply for numerous positions that are advertised from time to time. Some internal applicants have undertaken successful cross-business and cross-geography moves several times in their career span. Some have also been selected through intense internal competition to serve stints in our international subsidiary at Mauritius. The company is committed to rewarding its employees for their performance. This takes place through a performance linked appraisal process and variable bonus plan, which ensures that your success and growth is linked with the success of your business and the company. PROCESS The importance of process management is that it assures service availability and consistent quality. Without sound process management, balancing service demand with service supply is extremely difficult. Service cannot be inventoried; therefore, it becomes essential to find out ways and means to handle peak load to optimize different customer needs with varied expertise levels within the service organization. In marketing management, operation management has been recognized as an integral function. In manufacturing sector, for example, logistics in distribution are vital to satisfy customer needs. Similarly, in service sector, where there is no tangible product, the
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operation management is vital to deliver satisfaction because here the operation management would decide how the process of service delivery would function or in other words, the interactive experience that would deliver the service benefits to the consumers. Shostack gave a much simplified version and described the process in three stages. First a process can be broken down in logical steps to facilitate analysis and control. Second, there are more than one available option of processes in which output may differ. Finally, each system includes the concept of deviation or tolerance standards in recognition that the processes are real time phenomena that do not conform perfectly to any model or description but function within a norm. One can observe how changes in complexity and divergence influence their market position. For managers in service industries, taking a structural approach can help increase their control over some of the critical elements of the service system management. Therefore for marketers in service industries, process design may be a tool that can substantially increase their impact and role in marketing their services. All these services are inter linked and hence follow a process firstly as an international destination is chosen the booking is done with complete details on the booking form regarding meals, rooms etc and then the same is passed to the ticketing counter to block the seats after which this the passport and visas are checked or processed and then given to the operation department to send the details to the foreign agents to process further bookings regarding booking of rooms and sightseeing. PHYSICAL EVIDENCE Glynn Shostack once observed, A physical object is self defining; a service is not and therefore the making task in service industries is defining for the service what the service cannot define for itself. Though a customer cannot see a service, but definitely he can see various tangible clues of the service offer like facilities, communication material, objects, employees, other customers, price etc. On the basis of his perceptions on the tangible clues, the customer makes the purchase decision. These clues might be both intended and unintended ones and therefore, managing evidence is integral to the
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service marketing mix. Shostack even observed that the management of evidence comes first for service marketers. The argument here is that the physical environment, facilities and atmosphere; give enough physical evidence to help shape customer perception. Many service marketers have neglected this aspect while the others gave due emphasis to issues like exterior of buildings, office furniture, layout, colour of interiors, and even carry-bags, tickets, cash memos, labels etc. The advocators of public relations have eve been coined a specific term called corporate identity and suggested that such tools can create a visual identity that the public as customers can recognize. The corporate identity media can successfully contribute towards the marketing objectives provided they are attractive, distinctive and memorable. Thomas cook is well equipped by computer reservation system and abacus which helps them make reservations.

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CHAPTER V ROLE OF TECHNOLOGY IN TOURISM


Tourism in its present form is a post war phenomenon developed essentially as a consequence of technological developments in the fields of automobiles, railways, ships, aircrafts, computers and communication systems. Although sails were the earliest means of transport, the invention of steam powered automobile by Nicholas Joseph Cugnot in 1769, the assembly of the first commercial steamer by Robert Fulton in 1807 and the production of first successful locomotive by George Stephenson in 1814 introduced several means of mass transport. It was, however, the advent of air transportation during twentieth century which revolutionalised the phenomenon of international tourism. It reduced the distances between the nations to a matter of few hours. The developments in computer and communication technologies have made it possible to have rental cars with computerized driving directions and self-service video-terminals at rental counters in high traffic airports. Fully automated rental transaction systems n National's "Smart Key" machine and Budget's "Remote Transaction Book" came into existence. Yet another major contribution of technological developments in computers and communication systems to tourism is the computerized reservation systems (CRS). These systems can now inform subscribers about schedules, fares and seat availability, issue tickets and boarding passes, record bookings, maintain waiting lists, display preferred airlines or classes, search for the lowest fare available or the first available non-stop flight and calculate fares for domestic and international itineraries. The system can also make reservations for other services like hotels, car rentals, cruises, railways, tours, boat charters, theaters and sporting events.

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Information Needs in Tourism Travel is a basic human instinct. Technological revolutions in the last few decades and the consequent changes in the social systems accelerated its intensity in the current century. Thus, tourism is presently a mass phenomenon involving every human being in the world. They need detailed information about each place they intend to visit. The specific elements of such information needs are: Geographical information on location, climate, landscape, etc. Attraction features Social customs, culture and other special features of the place Accessibility though air, water, rail and road and availability of scheduled means of transport Accommodation, restaurant and shopping facilities Activities and entertainment facilities Seasons of visit and other unique features Quality of facilities and their standard prices including exchange rates Entry and exit formalities and restrictions if any on tourists, etc.

Though the ultimate users of this information are the consumers i.e. the tourists, the actual benefits in money terms accrue to the tourism industry consisting of the destination managers and service providers. There is, therefore, a strong competition amongst various destination countries in the world to produce and package such information in the most attractive format to attract the consumers from the tourist generating countries. The travel intermediaries like travel agents, tour operators, and reservation system store such information in respect of each destination to service their clients and improve their business. They need the information in the easiest retrieval format so that the information needs of the clients are met as quickly as possible. Tourists generally need both static and dynamic information. Information on those features which do not change rapidly over time
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is termed as static information. It includes details information about location, climate, attraction features, history, facilities available, etc. Information about airline, train and bus schedules, tariffs of transport and accommodation units and current availability of such facilities is considered as dynamic as they can change very frequently. These items of information have to be gathered, stored and disseminated on a real time basis. All types of reservation systems including air, rail and accommodation sectors contain such information.

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Application of Information Technologies Till a few years ago, the basic sources of information in the tourism sector were pamphlets, brochures, directories, guide books, etc. produced and published by different countries. These sources prevail even today, though they are the most inefficient means of information. The last few decades witnessed the application of computer and communication technologies in the field of tourism. Two distinct streams of information sources viz, (i) online and (ii) offline came into existence. Databases containing information about places, tourist attractions and facilities became available for online access in several countries. The emergence of computerized reservations system (CRS) like Galileo, Amadeus, Sabre, PARS, JALCOM, QAMTAM and ABASUS, etc. opened up a new source of online information on tourism and are being expanded continuously. The latest source of online information is INTERNET which contains some pages on most of the tourist destinations in the world. The CD-ROM technology also took the tourism industry by storm. CD titles which came in the market during the initial period mostly contained geographical information. Soon multimedia CDs on specific tourism products made their appearance. Several such titles are presently available in the market. The next few years are likely to witness a rapid growth in CD titles covering every aspect of tourism due to improved marketing efforts and increased competitions. Further hotel management and catering technology is fast emerging as an area of information technology application in the field of tourism. The Indian Scenario In India, the Department of Tourism took the first initiative to introduce information technology in tourism in the year 1989 by establishing TOURNET with the technical assistance of CMC Ltd. The network consisted of 35 information nodes installed in the field offices of the Department of Tourism located in different parts of the country. Each node contained a CD-drive apart from the usual configuration of floppy drives and hard discs. Each node was provided with a CD containing textual database on all the major tourist destinations in the country.

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Recently, multimedia databases on tourism have been developed by Rajasthan and Maharashtra Tourism Departments with the assistance of some of the private software development firms. Apart from the government initiatives, a few private firms are also active in the field and a few CDs on Indian tourism are already available through their efforts. The Central Department of Tourism is presently trying to tie-up with some of the private software development firms to produce a series of multimedia CDs covering all the tourist destinations in India. The intention is to bring out a marketable product for sale within India and abroad. In the online field, the CRS Amadeus and PARS are already operational in India. Amadeus was established in 1993 and PARS came in 1995. INTERNET facilities are also presently available in India. The Problems and Issues The problems and issues concerning information technology applications in tourism are the following: 1. Tourism in India is relatively young and is not well organized to absorb the advances in information technology. They generally lack technical and financial resources and their scale of operation it too limited to take advantage of information technology. There has not been any specific policy or co-ordinated approach so far for the development of information products on tourism at the national level. It is yet to be evolved and implemented. The information industry in India presently consists of a few software development firms and some information centers in the Government sector. However, there are no database vendors in India who prepare their own databases and market them. In the absence of such units, all efforts are Government dominated and the products are generally not available in the market. It is, therefore, essential to provide adequate Government support and incentives for the development of such industries in India.

2.

3.

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CHAPTER VI QUALITY DIMENSIONS IN TOURISM


It refers to the process quality as judged by the consumers during a service delivery and the quality of output judged after a service is performed. Christian Gronroos has presented a new paradigm to explain how a customer perceives service quality. According to him service quality can be divided into two quality dimensions Technical and Functional. Technical quality means what of service i.e. what is offered to the customer. The functional quality dimensions addresses the issue of how service is delivered to the customer. Functional quality of a service is influenced by attitude, behavior, service mindedness, appearance, accessibility, courtesy, empathy etc of the service provider. When technical qualities in a service sector is almost the same, functional quality may be the right kind of instrument for garnering customer preference over the other. It may turn out to be not only a tool of brand differentiation and positioning but also a potent advantage. Berry, Parasuram and Zeithaml conducted an extensive in service quality and identified 10 criteria used by consumers in evaluating service quality as shown in the figure below:

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DIMENSIONS AND DEFINITION EXAMPLES OF QUALITY REALISED BY CUSTOMERS Tangibles: Appearance of physical facilities, equipment, personnel and communication materials. Are the banks facilities attractive? Is my stock broker dressed appropriately? Is my credit card statement easy to understand? Do the tools used by the repair person look modern?

Reliability: Ability to perform the promised service dependably and accurately. When a loan officer says they will call me back in 15 minutes, does she do so? Does the stockbroker follow my exact instructions to buy or sell? Is my credit card statement free of errors? Is my washing machine repaired the first time?

Responsiveness: Willingness to help customers and provide prompt service When there is a problem with my bank statement, does the bank resolve the problem quickly? Is my stockbroker willing to answer my questions? Are charges for returned merchandise credited to my account promptly?

Competence: Possession of the required skills and knowledge to perform the service. Is the bank teller able to process my transaction without fumbling around? Does my brokerage firm have the research capabilities to accurately track market development?
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When I call my credit card company, is the person at the other end able to answer my questions? Does the repair person appear to know what he is doing?

Courtesy: Politeness, respect, consideration and friendliness of contact personnel. Does the bank teller have pleasant demeanor? Does my broker refrain from being rude when I ask a question?

Creditability: Trustworthiness, believability, honesty of the service provider. Does the bank have a good reputation? Does my broker refrain from pressuring me to buy? Does the repair firm guarantee its services?

Security: Freedom from danger, risk or doubt. Is it safe for me to use the banks automatic teller machines? Does my brokerage firm know where my stock certificate is? Is my credit card safe from unauthorized use?

Access: Approachability and ease of contact. How easy if it for me to talk to senior bank officials when I have a problem? Is it easy to get through to my broker over the telephone? Does the credit card company have a 24hour, toll-free telephone number? Is the repair service facility conveniently located?

Communication: Keeping customers informed in language they can understand and listening to them. Can the loan officer explain clearly the various charges related to the mortgage loan?

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Does my broker avoid using technical jargon? When I call my credit card company, are they willing to listen to me? Does the repair firm call when they are unable to keep a scheduled repair appointment?

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Understanding the customer: Making the effort to know customers and their needs. Does someone in my bank recognize me as a regular customer? Does my broker determine what my specific financial objectives are? Is the repair firm willing to be flexible enough to accommodate my schedule?

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CHAPTER VII FUTURE OF TOURISM INDUSTRY


Internet has made the world a smaller place. This has encouraged people to travel across the globe and visit places of their interest. The Indian Tourism Sector is witnessing a positive upward trend which is more likely to move in the same direction in the near future. Bharat Book Bureau, is a leading market information aggregator has tabled a report on the "Indian Tourism Industry Forecast (2007-2011)" which focuses on different parameters of tourism industry including: inbound tourism, outbound tourism, expenditure by inbound tourists, and medical tourism in India. Today, the Indian tourist is all the more eager to spend more for his holidays and adventures both on domestic as well as foreign travel due to the rise in disposable income. On the other hand the foreign tourists are eager to explore India as well as for their health treatment. Currently Medical tourism is now a US$ 299 million industry with 100,000 patients coming each year which can easily go up to US$ 1.7 billion. Liberalization efforts on the part of Indian government such as limited open sky policy, entry of low cost carriers leading to reduced fares, allowing domestic airlines to fly on few international destinations. Australia opened its first tourism office in India to seize the opportunities in the Indian tourism market in 2007 and also offers new online tourist visa for Indian visitors as they expect double growth in the Indian outbound tourism. Indian outbound tourist flow is expected to increase at a CAGR of 12.79% over the five-year period spanning 2007-2011. The Indian hotel industry is generating more than 50% of its revenue through rents. Tourist influx to India is expected to increase at a CAGR of 22.65% between 2007 and 2011. Indias share in global tourism is expected to reach 1.5% by 2010, already its inbound tourist expenditure per head is the third highest in the world. The entire tourism sector and its allied industry are promoting healthcare facilities in order to attract more tourists, this is expected to reach one million by 2012 . The report "Indian Tourism Industry Forecast (2007-2011)" gives an overview of the current state of tourism in India, emerging trends as well as future trends in this sector on both the accounts viz inbound and outbound
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tourism. A detailed picture of the Indian hotel industry, its occupancy rate and room supply by 2011.Key facts and the analysis of the major players (tour operator & hotels) Thomas Cook India Pvt. Ltd., Kuoni India Ltd., Cox & Kings India Ltd., Raj Travels & Tours Ltd., prominent Hotels & Resorts such as Taj Hotels, The Oberoi Group, Hyatt Corporation, ITC Welcomgroup. The new government efforts on promoting tourism such tourism policy and various certified schemes have been mentioned here. A list of tables and figures both at the worldwide level and India level have been presented for further reference and detailed overview of the industry.

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SWOT ANALYSIS STRENGTHS


Indias geographical location. A culmination of deserts, forests, mountains and beaches: India is not only a vast country but also a beautiful country with world famous natural locations, which attracts lots of foreign tourists everyday. India has all types of seasons at the same time because of its tropical nature, as u will find the climate hot, humid, cold and warm all at the same time in different locations. Also its location is not very out of reach but easy to travel, as there are many modes of transport to reach here. Diversity of culture i.e. a blend of various civilizations and their traditions: Indias diversity is its greatest strength. There is so much to explore in India. One cannot be tired of exploring its diverse culture, heritage and locations. The different languages, dialects and other religious and cultural customs and traditions are all the sources of attraction in India. A wealth of archeological sites and historical monuments: India is blessed with the enormous historical monuments like Taj Mahal and Char Minar which are the major attraction places of tourism.

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Lowest manpower cost in the world: Manpower costs in the Indian hotel industry are one of the lowest in the world. This provides better margins for the industry.

WEAKNESSES
Lack of adequate infrastructure: The airlines in India, for example, are efficient and so not provide basic facilities at airports. The road condition in India is very bad. An intolerant attitude among certain sections of people: This is among the people who do not like the foreigners and their entry into the Indian Culture as they feel that they will change the Indian Culture and attitude and replace it with foreign culture. No proper marketing of Indias tourism abroad. Foreigners still think of India as a land of snake charmers: India is a land of snake charmers, villages, beggars and elephants. The Indians have not made any efforts to change this image and this has proved very costly as foreigners still think of Indians as illiterates and narrow-minded.

OPPORTUNITIES
More proactive role from the government of India in terms of framing policies: The government is supporting the India tourism industry so with the recent appointment of Mrs. Renuka Chaudhary a very intelligent and practical woman who would like to develop India tourism. The Indian tourism industry should take this as an opportunity and push forward its plans. Allowing entry for more multinational companies into the country giving us a global perspective: This is going to develop and build the confidence in the minds of the foreigners who would like to explore India. Growth of domestic tourism:
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Indian tourism will only develop if the roots are strong. So if the Indians themselves travel around India the foreigners will feel confidant to come to India.

THREATS
Economic conditions and political turmoil in the other countries affects tourism: As a result of this people are afraid to venture outside their own homes for fear of terrorist attack and threats to their lives. Aggressive strategies adopted by other countries like Australia, Singapore in promoting tourism: There are hardly any tourists who confidently come to India and if the other countries offer better packages and places then there is no reason why the tourists should visit India. The important task is to get tourism accepted as an instrument of development and national integration. For this it is necessary to create awareness of Indias charms as a tourist paradise and simultaneously addressing the important issue of toning up infrastructure and then getting down to marketing the product in a pragmatic and result oriented manner. All segments of the tourism trade should get together and hammer out a strategy taking into account the ground realities and demands of the future. In aiming to make India the most preferred destination the tourism industry must achieve a high degree of co-ordination with the state and central governments as well as the civic authorities. A three- point plan may be considered to realize the full potential of tourism. In a word the strategy for effectively tackling the cause of tourism in AIM.

A stands for Awareness


Within the community there must be awareness of the potential of tourism and its role as an instrument for promoting economic development and social change. The tourist must also have the satisfaction of being welcomed and getting satisfaction on all points of popular contact in the host country.

I stands for creating Infrastructure

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The industrys own perception and suggestions must be sharply focused highlighting the special needs of the international and domestic traveler by providing adequate transport, accommodation and other backup facilities.

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M stand for Marketing


apart from creating awareness at home it is required to create awareness abroad i.e. what India was like (its 5000 years old heritage), what India is like (liberalization and globalization) and what India will be like in the future (envision preferred destination). We should concentrate on research and identity source markets. The bottom line is to work out a coordinated action plan for all the three components of AIM.

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PEST Analysis
The Indian tourism industry has seen a rapid growth in the last few years. Before any kind of analysis is undertaken, it is important to find out what are the main environmental influences that have led to this growth and how the extent to which the changes are occurring. This is important because the changes in these factors can have significant effect on the way the industry performs. These environmental changes can be analyzed by using the PEST Analysis. The PEST Analysis within its parameters indicates the importance of the political, environmental, social and the technological changes on the industry. 1) Political: The political factors are the main driving forces of the industry. The Indian tourism industry is built on the backbone of the Government support and the industry cannot sustain itself without it. The various places of historical importance, the roads and the railways are 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. Any policy change that comes into forces 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 always have been a cause of disagreement between the hotel association and the government. There are areas where the growth of tourism has not been rapid or has seen dramatic fall because of the political environment has not been conductive. Example: Kashmir. The neglect of the government in developing the North-East has lead to a situation where there is particularly no tourism in the seven states. The hotel industry has been getting many incentives and many state governments are encouraging the growth of major hotels in their states.

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After years of tight control over airport infrastructure, government has finally taken eh decision to privatize the airports; cobwebs and even rates were the frequenters in the arrival lounge at a major international airport of India. It is the only way to improve their conditions. 2) Economics: 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. The large increase in the spending power in the most developed countries has left a large amount of idle cash in their hands. This has lead to the tourism boom the world over and India has been no expectation. People who previously used to come to the country on a shoestring budget and used to hunt around for the cheapest accommodation now can afford to go for luxury hotels. However, overspending is also evident not only in hotels but also in the increase in the number of the people traveling by air. Even the number of domestic tourists traveling by air has dramatically gone up. 3) Social: Social factors are a major influence in the buying decisions and this applies to tourism products and services, just as other products and services. Over time, changes do appear which will affect consumers buying habits. Whenever a certain international tourists. The places that have been able to strike a balance their own culture and the demands of the international tourists have profited handsomely. People are now adopting them to the fact that tourism pays and it can be a major source of income for them. 4) Technological:

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Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Better technology in the field of communication with cheaper costs has seen many remote and inaccessible areas of the country get 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. Similar better transportation facilities have led to a dramatic in the number of tourists visiting and particular place.

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CHAPTER VIII CONCLUSION


Now India is fast emerging as one of the most enticing destinations for the global leisure traveler. The Readers Travel Awards 2006, conducted by Cond Nast Traveller has recently placed India at number four among the world's must-see countries, up from number nine in 2003. The Incredible India campaign has also been a huge success. In addition India is gradually gathering popularity as a health tourist destination. A study by McKinsey and Confederation of Indian Industry (CII) says that at its current pace of growth, healthcare tourism alone can rake over US.7 billion additional revenues by 2012. Medical tourism is now a US million industry, as about 100,000 patients come each year. In addition the assistance from the government is also there. The present government's major policy initiatives include: Liberalization in aviation sector Pricing policy for aviation turbine fuel which influences internal air fares Rationalization in tax rates in the hospitality sector Tourist friendly visa regime Procedural changes in making available land for construction of hotels

This time the industry has a strong wish list which could help the companies to grab the opportunity in a better way. In recent years tourism has emerged as a major economic activity that is employment oriented and earns foreign exchange. Its share in the worlds GDP in 1994-95 was 10% which is more than the world military budgets put together. In global terms, the investment in tourism industry and travel trade accounts for 7% of the total capital investment. Today 21.2 crore people around the globe are employed in travel trade and tourism. In future, this industry is likely to see unprecedented growth. According to the World Tourism Council at Brussels, the revenues from travel and tourism in Asia Pacific region will grow at the rate of 7.8% annually over the next decade. Amongst the economic sectors, the tourism sector is highly labor intensive. A survey by the Government of India notes that the rate of employment
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generation (direct and indirect) in tourism is 52 persons employed per Rs.10 lakh investment (based on 1992-93 Consumer Price Index). This is much higher than the rates of employment generation in most other economic sectors. Keenly aware of the unfolding boom in the tourism industry, the government is lending a hand to the growth of the industry. In the Union Budget for 2003-04, government has extended infrastructure status to tourism, thus opening the doors to cheap, long-term funds to help finance tourism infrastructure. Outlay for tourism for the Tenth Five Year Plan is Rs. 2900 Crore. For the financial year 2003-04 the outlay is Rs 325 crore. This is up sharply from Rs 150 crore allocated in the previous financial year. State governments such as Kerala lay a lot of stress on boosting tourism. The state has an outlay of Rs. 74.25 crore for the financial year 2003-04. The Government of India has extended the benefits of Section 10(23G) of the Income Tax Act, 1961 to institutions financing hotels of three-star category and above. A top level executive of Travel Finance Corporation of India (TFCI) is all smiles as he says, "This has benefited TFCI as the company has a major part of its portfolio in the exempted category." And this smile is now strongly percolating down to all tourism industry players in the country. The divestment of governments stake in government run hotels is another step in the right direction. Professionals are increasingly stepping in to take over this service-oriented industry. Global best practices, cost cuts and service with a smile are fast turning a norm. India is now chalking up one of its strongest growth charts in a long time. As the Indian economy continues to open up in an effort to integrate with the world economy, benefits of doing business with and in India are increasing. With the results, hundreds of thousands of jobs are moving to the Indian shores from the West. This brings in its wake transit travelers, business travelers, business meets and holiday seekers. This is resulting in greater room occupancies and average room revenues (ARRs) in the country. ARRs have moved up from Rs. 3200-3400 last year to Rs 4000-4200 this year. Room occupancy rates have shot up from 7580% in 2002 to over 90% now. Infact, in Bangalore it is now estimated at 100%.
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BIBLIOGRAPHY: BHATACHARYJEE S.M.JHA VIPUL PRAKASHAN www.google.com www.wikipidia.com www.incredibleindia.com

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