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TOURISM SECTOR

It is India’s vastness that challenges the imagination: the sub-continent, 3200km (2000 miles) from the mountain fastness of the
Himalayas in the north to the tropical lushness of Kerala in the south, is home to one sixth of the world’s population, a diverse culture
and an intoxicatingly richhistory.
The most frequently visited part of India is the Golden Triangle – Delhi and the magnificent monuments of Agra and Jaipur, a legacy of
centuries of Muslim rule –but there is much besides. The unfairly maligned great cities of Mumbai and Kolkata (Calcutta) have a bustling,
colourful charm, while the holy city of Varanasi or the awe-inspiring temples of Tamil Nadu are worthy objects of pilgrimage. For those
who prefer more sybaritic pleasures, the palm-fringed beaches of Goa have a European charm all of their own.
Hinduism is practiced by 85 per cent of Indians, the religious rites and red-letter days woven into the fabric of everyday life – ritual
washing in the Ganges and the ear-splitting celebrations of the festival of Ganesh – and the inequalities of the caste system are there for
all to see.
One of the fascinations of India is the juxtaposition of old and new; centuries of history – from the pre-historic Indus civilization to the
British Raj – rub shoulders with the computer age; and Bangalore's ‘Silicon Valley’ is as much a part of the world's largest democracy as
the remotest village is.Richard Hopton.
SWOT Analysis.
Strengths
India’s geographical location, a culmination of deserts, forests, mountains, and beaches.
A wealth of archeological sites and historical monuments.
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 inefficient and do not provide basic facilities at airports. The road
condition in India is very bad.
No proper marketing of India’s tourism abroad. Foreigners still think of India is one of poverty, superstition, and diseases. The case of
plague in Surat in 1994 led to decrease of 36% in arrival of foreign tourists in India.
Opportunities
More proactive role from the government of India in terms of framing policies.
Allowing entry of more multinational companies into the country giving us a global perspective.
Growth of domestic tourism. The advantage here is that domestic tourism and international tourism can be segregated easily owing to
the different in the period of holidays.
Threats
Political turbulence within India in Kashmir and Gujarat has also reduced tourist traffic.
Aggressive strategies adopted by other countries like Australia, Singapore in promoting tourism.

Basis of Segmentation.
1. Holiday: Mass market, Individual market, and Popular market.
2. Demand: Primary, Secondary, and Opportunity.
3. Geography: International, according to regions, etc.
4. Psychology: Lifestyle, Personal motive, and Knowledge.
5. Demography: Age, Sex, and religion.
6. Socioeconomic: Rich, poor, rural, urban, literate, illiterate.
7. Purpose: Business travel, Cultural Tourism, and common interest convention.
8. Age: Teens, kids, youth and senior citizen.
Another method of classifying users of tourism services is on the basis of the frequency of usage of services.
Non-users: They are not interested in using the services. They lack the willingness, desire and ability (income and leisure time).
Potential Users: They are also called the prospects or the prospective users. They have the willingness but the marketing resources have
not been used optimally to influence their impulse. They bear the efficacy and the marketing professionals are supposed to capitalize on
their potentials by using creative promotional measures.
Actual Users: They are already using the services generated by the tourist organizations.
Occasional Users: They have not formatted the habit of traveling.
Habitual Travelers: They have formed a habit of avail of the services regularly.
The variety of users makes it essential that professionals study and understand their changing behavioral profile. This would simplify the
task of creating and stimulating demand. The marketing decisions cannot be creative and proactive unless an in-depth knowledge of the
users is known.
The individual specific behavior in the marketplace is affected by internal factors such as needs, motivation, perception and attitudes as
well as by external factors such as family, social groups, culture, and economic and business influences. While studying the behavioral
profile the study of lifestyles is most important.
Thus it can be said that arriving at sound marketing decision cannot be possible unless a sound marketing plan and optimal marketing
resources are developed.
Positioning the Product.
The world is literally full of travel products. Not only the travelers offer a huge variety of destinations, they also
have

many hotels, airlines, car rental companies attractions ad other travel products from which to choose.

The perception of the consumer for a particular product is a critical variable in the marketing process, one that has a great influence on
purchasing decisions, especially decisions among similar products.
Service Marketing Triangle.
Company (MTDC, SOTC, ITDC, etc.)

internet access as complimentary for the corporate packages.Enabling Promises Making Promises Providers Customers (Travel Agents. ITDC. . Local Bus transportation. hotel booking. Those agents have the responsibility of ‘keeping promises’ made and enabled by the company. This underlines the uniqueness of service marketing. accessibility and connectivity. For example. restaurants (KFC Joints. There are 3 players in the transaction process: Company: A travel and tourism company listens to the customers and evolves/develops the travel/ tour package and it communicates the attractiveness and the utility of that very tour package directly to the customers. The Providers include all the entities that finally fulfill the Company’s promise to the Customers. maintains the tourist spots such as KL Towers. Pizza Hut). seat availability on needed time as it is critical to business travelers. the different hotels within Malaysia. etc. customized meals on board. the State Tourism Corporations. hovercraft for traveling.g. because they are in touch with the final customer. the Malaysian Government maintains the local transportation within the country. tourist spots (KL Towers.). for e. Internal Marketing: The Company enables the providers to fulfill the promises made by it to the customers. The company makes promises to the customers. and the five constitute a customer value hierarchy. Local Trains in Kuala Lumpur. information about various packages. the company carries out ‘External Marketing’ as well as ‘Internal Marketing. Twin Towers. transport. etc. like the travel agents interact with the customers and not with the company. accurate information. every-time. Car and two-wheeler rentals). Each level adds to the customer value. etc. Customer (Travelers): The customers are the reasons that the Travel Company exists and for whom the company has designed the traveling and touring package as well as setup the infrastructure facilities and spent money on employee developments programs. The providers (agents) are responsible for the perceived quality level of the service transaction. MARKETING MIX PRODUCT • PRODUCT LEVELS In planning its market offering. They undertake ‘Interactive Marketing’. Truly Asia” that promises a veritable cultural paradise to the customer. Mary Brown. 2) Basic product The basic products offered by Travel and Tourism industry are ticket booking. The levels of the product that the travel and tourism industry offers to its customers are as follows: 1) Core product The core product offered by Travel and Tourism industry is the destination. etc. The company does internal marketing with the providers educating and motivating them about the idea of the particular tour package that they can offer to their customers. souvenir outlets at tourist areas. The company in the Tourism Sector can be the Central Government. hotels providing laptops on request. These products become expected products in the future. The providers make provisions for office space. This is the most crucial of service marketing in the travel and tourism sectors. Tour Operators such as SOTC. Air India.’ External Marketing: It makes promises to the customers. These are impeccable services. Providers: They are a travel company’s internal customers constituting employees and agents. It is core because the main aim of the tourist is the destination where he has to reach or go. 4) Augmented product These are the products that are offered by the companies to distinguish itself from others. authentic information. Here the providers are the only ones who interact with the customers. this would include the transportation providers (Malaysian Airlines. The company enables promises to be kept by this infrastructure association. the marketer needs to think through five levels of product. etc. sight seeing. all time. Wi-Fi connection in hotels. 5) Potential products These are the future products that the companies will offer to its customers. the Malaysian government’s advertisement “Malaysia. Those are flat beds in business class. 3) Expected product These are the products that the customer expects the organization to offer. This is done to enable the providers to effectively carry out the survive transportation process.) Promises Service marketing is unique in many ways in the travel and tourism industry. tele checking 8hrs booking in hotels. quick check in for the senior manger of the company.Hoteliers. Thus in the case of the Malaysian government. different routes leading to a particular destination. These can be underwater tourism. The agents perform interactive marketing that is ‘on time.

listen to the customers understand them and co-operate with them to come down to a solution this factor creates a very positive impression in the minds of the customers and helps the service to get a tag of its excellent service quality. Such repeated and accurate information creates of a reliable organization. 3. DEALING WITH DIFFICULT PEOPLE . One good example of such is in this package of Thomas cook from Mumbai to Goa. PRODUCT WIDTH AND PRODUCT LINE Product width of the product mix refers to how many different product lines the company carries. which is provided. Everyone loves a warm welcome. The various services provided by agency includes Planning Itinerates. we hereby relate them to 7’s of Travel and Tourism. which help in a great way for the customers to evaluate the service. immediately tell the visitor approximately how long it will take to find a solution. 5) RESPONSIVENESS-Sanrachna – Information. the no of cars. The safe travel will in turn ensure the customers traveler. 3) TANGIBLES . A safe travel is the top priority of any traveler.e. It is very important on the part of the service provider (travel agency) to give accurate information on all types of flight available. Thus keeping this tangible factor in mind the tourism agencies for example Thomas cook always keeps in mind the Swagat of their traveler. This is the last element in the concept of RATER. Keep records of past complaints. wherein they give a welcome drink to travelers and provide them with a fruit platter and famous cashew nuts of Goa. but also as a guide of future problems to prevent. Ticketing. b) Suvidha It means facility. their fairs. When we talk about tangible product in Travel and Tourism the 1st would include a) Swagat It means warm welcome. Take Action. Often something as simple as an inexpensive complimentary gift or some special attention from the manager or boss can turn a negative situation into a positive one." Tourism & More offers the following ideas on handling complaints: 1.e. So what do we mean by 7’s Travel and Tourism Industry and what is its significance in relation to RATER. Clean hotel rooms and lobby create a spik and span impression of the package and add to the quality level. Working out travel routes . in future the customer would trust the organization for any information. These are the kind of facilities they expect. The visitor should see that he/she matters. If the problem cannot be solved. and that you seriously consider their complaint. Sanrachna which means infrastructure.e.e. COMPLAINT HANDLING No matter how well prepared you are there is always the potential for something to go wrong. by any Travel and Tourism organization to its customers is the parameter of judging the Reliability of that organization. Today if you talk top any business traveler they want to be pampered silly from flat beds in business class to Wi-Fi in hotels customize the needs. Thus if a Travel and Tourism organization is able to provide all such demanding facilities then it adds value to its travel products and makes the product hike from standard quality level to superior quality level.Information The way and the kind of information. I. Every complaint and/or complainer provides a the tourist professional with a learning experience.e. Personnel should try to focus in on the main context of the complaint. and new schemes going on which would in turn help customers to choose most suitable product for their traveling. Make sure the upset visitor knows exactly what can or cannot be done. Understand. The way you and your personnel handle complaints can be the determining factor in turning a "disaster" into a "success. 2.Arranging visas. 1) RELIABILITY . The product length is the total number in the product lines. It really gives a good start to the whole holiday. RATER The well-known concept of five-quality dimension RATER.Swagat – Suvidha – Safai. A famous quote from Stephen Cowe book goes like this –“Seek to understand and then to understood” is very important. Prior to responding to the complaint they need to determine the exact nature of the complaint. Make sure personnel have a full understanding of the complaint. 4. The width of the product mix refers to how many variants are offered of each product in the product line.Also Virgin Atlantic airlines are thinking of adding a casino and a shopping mall in the airline. c) Safai It means cleanliness. Listen. co-operation i. and what he/she may expect as a form of recompense. Prepare your personnel to listen and to handle each complaint as if it were the most important part of their day. Providing information on Destinations . 4) EMPHATY . For example if you plan and book a Qualis car to travel from place A to place B and if the car breaks down then how fast can you respond by replacing it with a new car shows the flexibility of the infrastructure i. Thus it is very important for Travel and Tourism organization to consider the safety of the tour package. Making stay reservations.Sahyog – Cooperation. Thus the‘s’ that we relate to empathy is sahyog i. Why do we make such a statement? To explain that let us take an example of Travel agency. and not be diverted by side issues. It is related to the last‘s’ i. Learn.Safety It is one of the prime factors considered when talking about this sector.Suraksha . These are the backstage elements. When a visitor is angry or upset allows the person to know that he/she is being heard. Here information plays a very dynamic role. Why do we relate4 infrastructure to responsiveness is because how flexible is the infrastructure of Travel and Tourism organization affects the service responsiveness. not only for in-house training purposes. and the steps they took to correct the situation. Let us assume that the customer comes for booking a ticket. Hygiene is also an important factor of a travel package. 2) ASSURANCE .Suchna . Have your personnel share with colleagues what things went wrong.

For example. The hotels offer a number of facilities like shoe shine clothes. first aid sewing kits. advertising is a part of publicity. offices of airways. such as flight bags. shower caps and shampoo. wallets for tickets. The development of tourism business has been influenced by the services rendered by the travel agents and travel guides since they work as information carriers. Its coverage is wide. which have remained untapped or partially tapped. PART II 1 Don't be defensive. It is amazing how much more respect a well dressed functionary receives. Sales promotions: Sales promotion measures are the short-term activities seeking to boost sales at peak demand periods to ensure that the firms obtain its market share and are used to help launch a new product or support an ailing or modified one. Make sure that you know that the angry person knows that you will deal with the issue at that moment. travel editors. In the tourism industry. imagine what this person would look like angry in his/her underwear. The publicity program include regular publicity stories and photographs to the newspapers. Further. Foreign Exchange (Forex) and covers of passport. They are required to think in favor of discounting price. PRICE MIX. It is a lot easier to deal with a difficult person when dressed in a suit rather than in jeans. We can project hotel bedrooms. The marketers need to use the various components of promotion optimally so that they succeed in increasing the number of habitual users. 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. Publicity: It focuses attention on strengthening the public relations measures by developing a rapport with media people and getting their personalized support in publicizing the business. Dress in a professional manner. The misuse of names or titles only adds fuel to an already explosive situation. a travel company offers give-aways to their clients. especially in the eyes of the potential tourists. Use the person's right name and title. which help the process of selling. but rather apologize. and secretaries can’t work efficiently if the telephonic services are not up to the mark. seasonal discounts. Eg. Invite the person into a private room. the resort representatives cater to the need of tourists when they reach the destination etc. Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information. In tourism. 4. or Ms. The tourist organizations bear the responsibility of informing. Once the apology is made the upset/difficult person is more willing to listen. Smith and don't use a first name unless given permission. Pricing decisions are influenced by internal factors like pricing policy of the company. Rather than getting angry. Never just shrug one's shoulders and say "sorry!" 6. coolly ask how you can make their situation better 2 In a like manner. Try to understand that people on vacation are often a bit irrational. Intangibility can be compensated with the help of visual exposure of scenes and events. These may include discounts for cash payments. Your credibility with an angry tourist is very low. If the angry visitor introduces him/herself as "Dr. Instead of reacting in a negative way. Also recruiting a . The development of travel and tourism has been possible due to well-educated and trained sales personnel. well-arranged restaurants and cafeterias. Once the apology is made the upset/difficult person is more willing to listen. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the customers. offer him/her a drink and then listen. all of them play a vital role in ensuring that the tourism products satisfy the tourists. The marketers or the tourist organizations need to keep their eyes open. In the tourism industry it is found that the word-of-mouth promoters play the role of a hidden sales force. try to think of something comical. a solvent waiter and a surly or a haughty coach driver. the product or the service mix of the tourist organization is important. In pricing decisions. 5. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive. Smith" don't say Mr. but rather apologize. The various dimensions of tourism promotion are as follows: Advertising: Advertisement gives important information to the actual and potential tourists. the VIP clients also get fruits and flowers in their rooms. It helps in projecting the positive image of tourist organizations since the prospects trust on the news items publicized by the media people. persuading and sensing the potential tourists in a right fashion. Often it is easier to simply say. then turning to someone who can help. But while offering the discounts. Win by losing! 3 In a like manner. 1 Do not fight to win every battle. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel. telling him/her that you will get to the problem will only make the visitor even angrier. Let the visitor see that you are doing something. Very few angry visitors are willing to listen to your side of the story. Personal Selling: Personal Selling is based on the personal skill of an individual. 3. trade discounts etc. PROMOTION MIX. There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-à-vis the emerging trends in the business. Telemarketing: It is a method of selling in which a professionally sound telemarketer markets the business. No reduction in price would compensate for impolite and indecent travel guide. The sensitivity of this tool makes it clear that tourist organizations need to concentrate on the quality of services they promise and offer. frequency of visit by offering new tourist products in the same country to areas. They have to set prices in line with the quality of services to be made available to the customers and the type of customers they are targeting. Creation of awareness has a far-reaching impact. These facts are testimony to the proposition that the travel business is linked with the performance and behavior of sales personnel or travel staff. Make sure that the person addressing the problem is competent to solve it. Win by losing! 1. the travel agents. which in a true sense is wordof-recommendation. never argue. swimming pools etc. 2. the personnel who attend tourists form an essential ingredient of the product.Here are some suggestions to help your staff cope with the angry guest. Start the repair process at that moment.the customer is always right applies specifically to the tourism industry. such as sales personnel are found responsible for dealing with customers behind the counter. receptionist. identify the vocal persons or the opinion leaders and take a special care of them so that they keep on moving the process of stimulating and creating demand. it is not to be forgotten that it may also create image problem since some of the value sensitive tourists may doubt the quality. The travel and hotel business depend considerably on the personal selling. contact with magazines on stories etc.Take the angry person out of a public area. and external factors like the destination itself. is doing something. Whenever an angry person decides to do battle in front of other "guests" you lose. The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. never argue. Promotion helps in maximizing the duration of stay. It is important to mention that in the tourism industry. If a member of your staff cannot solve a problem. and then laugh to yourself. The phrase. "Yes Sir/Mam you are right.

personally-committed sales personnel having an in-built creativity. etc has increased in order to aggressively promote their respective countries. technology providers. These aspects in turn lead to employee satisfaction. linguistic skills etc. Employee orientation requires due weightage to efficiency generation. The instances of service encounter in travel and tourism industry are – • In the ticket booking process when the customer calls the service provider that is the front line staff in order to book the tickets is the first service encounter incidence. Hence strategic locations are very important for Thomas Cook. Further to realize what are the critical moments in the considered process a concept of blue printing is introduced. however some deal directly with the consumers and eliminate middlemen. ‘I don’t know’. in the case of tangible products in tourism such as souvenirs and cuisine.person considered to be professionally sound. Of course the offices of travel agents depends on the new technology but after all employees and the other staff contribute significantly to the process. tour operators and travel guides lack world class professional excellence. good sense of humour. has to go to the service provider. Location: Transport also plays a major role in the tourism industry. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. and Pvt. PLACE MIX. Over the years the participation of foreign tourism promotion boards like the Dubai Tourism and the Mauritius Tourism. The Government plays an important role in providing the right kind of people for this industry. 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. • When the customer is experiencing the holiday package there are numerous service encounters that he goes through and one of them is his constant interaction with the tourist guides. The customer. are expected to have a lot of patience. Thomas Cook has its own branches situated throughout the country so they are easily accessible. hotels and resorts. Other companies may also utilize more than one method of distribution. This stage is a very crucial one where in the provider has to perform at the optimum level in order to avoid the customer from having the experience of credence quality. In the management of people. It makes the destinations accessible to people from around the world. It’s the moment of truth where. They need a lot of credentials to fulfill the expectations of the customers. PEOPLE . The training courses run by the Institutes are designed to suit the needs of the various target groups. car rentals. EXTENDED 3 P’S OF MARKETING PEOPLE Like other industries. the tourism industry depends substantially on management of human resources. PROCESS It is the way of undertaking transaction supplying information and providing services on a way. Which would lead to customer loyalty and finally revenue growth and profitability through referral and repeat business. SERVICE ENCONTER – The so-called stage service encounter or moment of truth is the element of interaction between those providing services and the customers. Travel guides especially. and when you ask the customer the question on how was the service? He usually gives vague answers like ‘it was ok’. thorough knowledge of the places. transportation becomes a major logistical component. innovation and imagination is very important. The tour operators also need to manage human resources efficiently. In the service profit chain the first step is to keep the internal customers happy and satisfied the internal customer being the employees. which would result in to employee retention and productivity. which is difficult to evaluate. travel agents and tour operators. the related organizations 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. tact to transform the occasional tourists into habitual ones. Their performance can create a positive as well as negative impact of the service process and the image of the company. airlines. This marketing p is important in 2 distinct ways: . A very important concept in ‘people’ is the – service profit chain. • In the itinerary planning process the service encounter takes place when the customer visits the travel and tourism agency to purchase a holiday package and meets the travel manager. failing which even the world class services offered by the travel agents are found meaningless. in the travel and tourism industry.. PHYSICAL EVIDENCE It is a very important factor for the travel and tourism industry. This interaction takes place on the phone. it is necessary for the organization which provides services to recognize the critical moments in the entire process which makes the service acceptable or not acceptable to the customer depending on the zone of tolerance and effective or not effective to the organization. holiday financiers. As such there are a lot of Govt. this would result in providing value services and that would yield customer satisfaction. Now to make this definition of process true. Institutes which offer training for the same. The organization has to make the environmental conditions conducive and focus has to be laid on the incentives to the employees for energizing the process of performance orientation. 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. cruise liners. Also. value-orientation and perfection. there is one to one interaction between the service provider who is booking the ticket and the customer who wants the ticket booked. which is acceptable to the consumer and the effective to the organization. Hence it is imperative that they have to be at their best at all times. To keep them following point have to be taken care of • Work place design • Job design • Employee selection and development • Employees rewards and recognition • Tools for serving customers. Exhibitions The participants include state and national tourism promotion boards.in service marketing includes • EMPLOYEES • OTHER CUSTOMERS EMPLOYEES – They are the representatives of the company. education institutions in the field of hospitality and tourism. CREDECE QUALITY Is the quality. The travel guides need professional excellence since the projection of a positive image regarding a destination in particular requires their due cooperation. For example. These were some examples of service encounter. Keeping ‘people’ factor healthy is one of the prime concerns of the company. Most tour operators sell their services through travel agents.

e. tour operator or from a travel agent. a visit to a museum. but the actual experience of consuming this package is highly inconsistent. An airline overbooks its seats to a certain extent in anticipation that even though certain customers do not turn up but the flight will be fully seated. This means that the level of risk and the rate of return are critically important to tourism management. this becomes one of its important characteristics. temperature. relaxation. Wi-Fi connection in hotels. This creates certain interdependence between suppliers and customers as the interaction between the supplier and customer takes place on the supplier’s premises. lights and other factors like the brochure of the company. a night’s rest in a hotel. or a hotel is not able to sell its rooms for the night then the opportunity to sell the product is lost forever. The chances of perishability are reduced. As a company has committed some thing and this is the time when the customer is actually experiencing the entire product and if any one of the commitments don’t materialize then the zone of tolerance is affected and lot as it is already low because the customer on a tour whether leisure or business expects perfection. then simultaneously produced and consumed. the furniture. Once they have taken place they can only be recalled and relished. internet access as complimentary for the corporate packages. a hotel has rooms to sell for each night. an airline passenger consumes the flight as it is being produced. Another strategy is multiple distributions. tele checking 8hrs booking in hotels. The critical incidences in this process are • Understanding the customers needs and expectations from the holiday or business tour which ever he or she is opting for • Making an apt travel plan and route adhering to the requirements of the customer Execution of the planned itinerary is the most critical one. If the tourist cannot visit the place. customized meals on board. hotels providing laptops on request. and the service people are plenty and have high contact with the consumers. cruise on an ocean liner. One is to overbook. the travel industry has come up with various marketing strategies. the opportunity is lost. Service sector cannot keep inventory like products. hotels beds and flights seats remain empty and unused in periods of low demand.1) as the environment in which the sales takes place 2) the environment where the product is consumed Explanation of the first case when the purchasing of the product is taking place. In case of customers who by electronically the appearance of the website is the physical evidence.  Inseparability Most travel products are produced and consumed at the same place and at the same time. excitement. food in a restaurant are used to create the experience but these are not what the customer is seeking. For example. If the airline is not able to sell all its seats on its flight. etc. In the mean time their expectations and emotions are influenced by factors like layout of the room. most travel products are sold first and then. frequently over a long time scale. The number of beds in a hotel or seats on a flight is fixed so it is not possible to meet sudden upsurges in demand similarly restaurants tables. as people interact with people at virtually EVERY stage of the way. Therefore there is high level of inconsistency prevailing.  Relatively large financial Investments Every modern tourist establishment and facility requires large investment. view of the mountains. CHARACTERISTICS OF TOURISM INDUSTRY  Inflexibility The tourism industry is highly inflexible in terms of capacity. in fact they have to leave their home. The consumer interacts with a myriad of service people starting from when he books his ticket and throughout the course of his holiday . a good time in a night club and much more.  People-oriented Tourism Services are high contact services. In contrast. The tangible products on an airplane. noise level. a bed in a hotel. the hotels lodging and boarding was bad etc. For example a customer can buy an airline ticket from an airline. We hear a lot of travel stories which becomes a portrayal of a lot of bad experiences for example the tourist guide may not be good. For example. To overcome this problem. however the customer cannot be sure whether they will enjoy the product or not. Tourism services are very people-oriented services. The customer wants intangible experience like pleasure. an airline has seats to sell on each flight. The interaction shapes the travel experience.  Inconsistency A general norm is that in Travel and Tourism industry the product or the package of the tourism can be standardized i. and a hotel guest uses a hotel room as it is being made available for the night’s sleep. This is the opposite of the tangible products. For example. for example of 2 days 3 night in so and so hotel. Hence.  Fixed location Tourism destinations are fixed locations so effort must be taken in communicating the facility to the potential consumer. the customers could not take the cruise home with them. These products are experiences. Thus there is simultaneous consumption and production.  Intangibility Travel products cannot be touched as they include flight experience on an airplane. which are produced at a different place and time and consumed at a different place and time.  Inventory / Perishability It is related to the fact that travel products are intended to be consumed as they are produced. Explanation of the second case In the travel industry where the product is being experienced s particularly important in securing repeat business thus extensive facitilities that prove to be physical evidence are provided to lure and woo the customer The tangibles include flat beds in business class. The tangible products that are purchased provide the access to intangibles.