Literature Review for the study of “Tourist destinations by middle income

group of India”

Submitted to
Prof Devashish Das Gupta
‘Consumer Behavior’
By Group 2

Group Members
Aditya Sapate - PGP31064
Saurabh Gond -PGP31111
Khushboo Rawat – PGP32103
Rajshekar Rampelli – PGP32138
Amit Jajme - PGP32382

......................................................................... 3 Research and methodology ...............Review .................................................................................................14 ................. 3 Tourism Industry .................................................................................................................................Contents Introduction ................................................................................................................................................................................................................................................................ 4 Conclusion ...13 References ....

Hence. Hill stations are the most preferred destinations.23% to the national GDP and constituting 8. However. The Indian travel and tourism industry has been ranked 5th in the long-term (10-year) growth and is speculated to . Rapidly changing socio-economic environment technological advancement has given the travellers a spectrum of options to choose from along with various tour packages. on the list of the world's most attractive destinations. One of the interesting finding is that the selection of destination is highly influenced by family members.5 billion by 2018 at a striking rate of 9. A comparative study by Bhatt and Pandya. Our research will be centred around exploring and determining numerous factors that affect the decision of tourist destination.Introduction The purpose of this study is to gain insights and closely examine the travel behaviour and preferences for middle income family group. both natural as well as cultural. followed by beaches for travel and tours. The Ministry of Tourism is the main agency for the development and promotion of tourism in India. shows a pattern of expenditure on domestic tourism from socio-economic sections of the country.78% of the total employment. our research could be helpful for promoters or service providers to incorporate our findings while designing new packages or business models. with many World Heritage Sites. provides some prominent findings that majority of the people prefer vacation once or twice in a year. with an estimated contribution of 6. A literature in this area indicates that in India socio economic factors play a huge role in tourist preferences and spending. Our work will be fill this gap and perform some The main objective of this project is to find out the determining factors considered by middle income family group in choosing tourist destinations. As middle income group is said to be the backbone of Indian economy and is the largest spending sector. The tourism industry in India accounted for a total revenue of $100 billion in 2008 which is expected to shoot up to $275. India is holds 11th place in the Asia Pacific region and 62nd overall. India caters to more than 5 million annual foreign tourist arrivals and close to 562 million domestic tourism visits. these studies give some valuable insights on number of tourists by segmented along gender & age but it does not throw any light on destination pattern of tourists by different socio- economic characteristics of the country.4% annual growth rate. rich flora and fauna in the country. Tourism Industry In present era tourism is one of the largest service industry in India. strong creative industries. A study conducted by “National Council of Applied Economic Research” in 2008-09. It is ranked the 14th best tourist destination for its vivid natural resources and 24th for its humongous cultural resources.

One among the world’s largest renowned online travel the 2nd largest employer in the world by 2019.Review Bhatt and Pandya (2014) developed their research methodology based on rationale that every tourist is different and have different aspirations for tourist destination. their proposed hypothesis that there is no significant difference between the tourist destinations among people from different cities of Gujarat. Their methodology was aligned to discover and analyse different factors that contribute to the industry as a whole. spending and activities. However. marital status. The survey was conducted with 520 respondents across major cities like Delhi.India has been considered as the "best country brand for value-for-money" according to the Country Brand Index (CBI) survey conducted by a leading global brand consultancy. These parameters are appropriate as Indian tourists practically decide their tours based on these basic parameters and these seem to be appropriate for the research and analysis. their research was limited to only three cities of Gujarat which may not reflect the preferences of other parts of the state and country. However. The traveller evolution is happening at a faster pace now that they have access vast amounts of information available at review sites. They collected the data on different data points such as age. They have much more clarity than 5 . Such a study can be very helpful for tourism industry to redistribute the resources and provide effective facilities and services to tourists across the country. Expedi released the Holiday Activity Report 2015. which comprises of an analysis of travel behaviour and preferences across various cities in India. gender. results show that people from these cities have different choices for tourist choices and preferences. Mumbai. Further. Their secondary objectives being to find out main source of influence for destination by individuals and preferences and choices of tourists. OTAs and metasearch portals. they developed a questionnaire which was used to survey a sample of 400 persons from select cities of Gujarat. income. Holiday activities are picking up amongst Indian travellers. Research and methodology . occupation and family members. Pune and Hyderabad. To determine such factors. The survey highlights that 48% Indians travel for a specific set of holiday activities during summer and decide their destinations accordingly. Bangalore. city. This is clearly evident from the fact that almost half of them decide the activities and then plan their destination this year. the study can be extended to bunch of cities or states to study empirically the behaviour and preferences of tourists in India. Based on the statistical analysis they performed.

More than their budgets. Hyderabadis are least interested in travelling in off-season at 32%. 30% wish to indulge in adventure sports. Oktoberfest and Tomatina festival.  While 56% Indians preferred to travel in peak season. easier to get leave (27%).years back and play a critical role in travel planning.better deals on flights & hotels (60%). While 56% Indians preferred to travel in peak season. Key reasons include. Bangaloreans being the highest to prefer off season at 55%. no children running around making noise (33%). Following are the detailed findings of the survey:  67% Indians decide the destination first and then plan activities  Delhiites ( Residents of Delhi ) lead the pack at 72% followed by Pune (70%). least anxious Mumbaiites (18%) . 44% chose off season. shopping gifts for friends & relatives (17%) Those who prefer getting the best deals: Hyderabadis (45%) and Puneites (42%) most anxious. less crowd (56%).  Indians travellers who are most anxious about landing the best deals (40%). they are anxious about wasting time. Hyderabadis are top experience junkies at 45%. 31% Indians wish to explore the city with locals and enjoy knowing their culture and 48% Indian talk and interact more with the locals. standing in long queues for tickets to theme parks and museums (22%). Almost 33% Indians travel for a specific activity/ experience. trip partners backing out at last minute (23%). Puneites (23%). Bangalore (69%) and Mumbai (68%). whereas 21% are curious collectors 47% Indian want to discover unexplored destinations. while the least being Delhiites (28%). 44% chose off season. Hyderabadis (22%). while Bangaloreans and Delhiites least anxious at 37%. better service in hotels (24%). followed by Bangaloreans (23%). Trip partners backing out at last minute: Puneites (30%) & Delhiites (26%) most anxious. standing in long queues for tickets to theme parks and museums (22%). The survey also revealed that 48% Indians are interested in cultural events like Carnivals. Bangaloreans (16%) & Mumbaiites (22%) Standing in long queues for tickets to theme parks and museums: Delhiites (28%) lead. 55% wish to check out the city specific activities & cultural performance. budget (20%). with uncertainty on ticket availability as well.

Hyderabad at 34% and Pune 32%. booking online is easier and 37% find more activity options available. Delhi on top (72%). 26% Pune and 25% from Bangalore feel this way Expensive Forex. 34% from Delhi. Mumbai (35%). Pune (32%). while 18% prefer to get the activity tickets from the hotel concierge. 25% Indians book the holiday activity ticket at the venue itself Advance booking while booking flights & hotels: Bangalore (71%) Delhi (62%).  Easy to book: Mumbai. Pune (48%) and Mumbai (45%) From Hotel concierge: Delhi (26%). Hyderabad and Pune at 32% and Mumbai 31%  Economical: 35% from Mumbai. Hyderabad (17%) and Bangalore (10%) At the venue:  Mumbai (37%). Pune (20%). Delhi 34%. 33% Indians get more suggestions on popular tours/ activities and for 30% its economical. Hyderabad (26%). Delhi (40%). Hyderabad (57%). Mumbai (18%).Budget: Hyderabadis (25%) & Mumbaiites (23%) lead while Delhiites don’t care as much (17%) Shopping gifts for friends and relatives: Hyderabad (25%) & Delhiites (24%) top the list. Pune and Bangalore (57%).  Offers suggestions on popular tours/activities: Bangalore 35%. 28% Hyderabad. Delhi (54%) and Hyderabad 40%  Offers more activity options: Bangalore (42%). Hyderabad at bottom (53%) . Damn it!  67% Indian vacationers resilient to currency fluctuations. while Bangaloreans (5%) and Mumbaiites (8%) aren’t bothered as much Indians travelers least anxious about Excess baggage (2%) and asking for leaves (4%) Mumbaiites (8%) and Puneiites (7%) most anxious about asking for leaves Booking Activity 57% Indians prefer to book online while booking their flights and hotels. Bangalore (19%) and Delhi (12%)  For 60% Indians.

Mumbaiites (21%)  Only 14% will upgrade their hotel accommodation  Delhiites (23%) and Mumbai (21%) lead the pack  If the dollar got expensive 63% Indian travelers would cut down on shopping  Pune-ites the highest to cut down on shopping at 75% followed by Bangalore at 66%  Mumbaiites least to cut down shopping at 57%  38% would look at shifting to a more affordable destination  Mumbaiites most willing at 52%. least being Mumbaiites (40%). Hyderabadis (21%).  Bangaloreans (83%) & Delhiites (77%) have the highest propensity to spend on activities.  Delhiites choose to spend the highest in shopping amongst other cities (63%) followed by Bangaloreans (31%). If the dollar got cheaper 66% Indian travellers will spend more on activities while 55% will extend the days of the vacation. Only 6% Indian wish to visit the Deserts and 10% to the Casinos and Countryside with lakes this  39% travelers from Pune and 38% from Bangalore are the most interested to go to the Beach this year whereas only 28% from Mumbai wish to go to the beaches . while Hyderabadis have the least (53%). Delhiites (63%) & Hyderabadis (60%) take the lead in extending vacation days.  31% will try and squeeze in nearby destinations and 29% will spend more on shopping. while Bangaloreans (24%) are least willing to  32% would avoid places of interest that are ticketed  Mumbiites (48%) & Puneiites (46%) most conscious while Delhiites are least conscious at (37%)  32% would downgrade hotel star category  Delhiites (43%) & Bangalore (38%) on top to downgrade on the hotel category while Mumbaiites (21%) track at the bottom  25% would reduce vacation days  Mumbaiites lead the list at 33% followed by Hyderabad at 27%  Bangaloreans (17%) and Puneites (18%) least willing to reduce vacation days  What do we actually do on a vacation? Absorb a new experience!!!  36% Indians wish to explore River/Sea Cruise and Theme Parks and 34% wish to head to Beaches this year.  Pune-ites (64%).

Delhi. whereas only 33% from Mumbai wish to do that  Adventure sports only interests from 60% Delhi-iets and 33% from Mumbai whereas 0% from Bangalore. Hyderabad and Pune wish to do that . Oktoberfest. Exhibitions. only 11% wish for a Luxury car drive  67% travelers from Hyderabad and 60% each from Pune and Delhi wish to enjoy the river/sea cruise. Hyderabad and Pune wish to shop even while travelling  71% from Pune and 64% from Mumbai wish to enjoy city specific activities and cultural performances while only 38% from Hyderabad wish to do that  Discovering unexplored destinations are enjoyed by Pune at 57% at Mumbai at 50%  Experimenting with local cuisines and drinks gauge interest by only 57% travelers from Mumbai  Day excursion and river/sea cruise create maximum interest from Indians when travelling for vacation at 59% and 48% respectively.  Only 21% people from Delhi and Pune would like to visit a Spa Retreat this summers  25% travelers from Hyderabad would like to take a trip to Forests/National Reserve and Gamming Safari  48% Indians are interested in cultural events like Carnivals.  31% Bangalorean and 30% from Pune wish to travel to the snow-capped mountains and only 14% from Hyderabad wish to visit their  40% from Bangalore and 38% from Mumbai wish to go for a River/Sea Cruise  9% each from Pune and Mumbai wish to go to the deserts this summer and only 1% Bangaloreans wish to travel to Theme Park is another attraction that has picked up with 42% from Hyderabad and 39% from Pune interested. Whereas. 47% Indian want to discover unexplored destinations  100% people from Bangalore. Tomatina and 26% are interested in Sports/ Adventure sports  100% Pune-ites are interested in attending music and cultural events and they have no interest in Food/wine. Art & History. Movie or theatre fest  67% Mumbai-kers are interested in Cultural Fest and 50% in Food/Wine  50% Delhi-ites wish to go for sports and adventure and only 33% wish to attend cultural fests Activities on mind…  94% Indians are shopaholic wherever they go and 55% wish to check out the city specific activities & cultural performance.

 24% Delhi-ites and 23% Hyderabadis wish to enjoy their vacation sleeping. 7% respectively by Bangalore. we are Social Beings!!!  25% Indians either never post on social media during vacation or do so once they are back from vacation  25% Pune-ites post multiple times on social media and 0% Bangaloreans wish to do that during vacations  35% Delhi-ites prefer to not post anything on social media while they are on vacation compared to 8% from Pune . 18% Pune-ites and 14% Mumbaikars fall in the same category  17% each of Delhi-ites and Bangalorean wish to eat till they don’t fit in their cloths. whereas 21% are curios collectors. 8%. Pune and Mumbai  37% Pune-ites and 33% Mumbaikars wish to enjoy adventure sports whereas only 22% Hyderabadis wish to do that  39% Bangaloreans like to explore the city with the locals compared to 21% Pune-ites  28% Pune-ites are curios collectors topping the list compared to 17% Bangalorean  13% Mumbaikars wish to spend on Spa treat to detoxify & rejuvenate and only 9% Hyderabadis enjoy the same  Yes. 20% wish to sleep during their vacation and 15% Indians wish to over eat. Pune wish to do it  Club crawling & Pubbing and Guided tours to Red light areas has 40% of Bangaloreans interested  Cabarets/Lido/Tiffany’s Show has 67% from Hyderabad and 40% from Bangalore. 22% Bangalorean. 13% and 12% respectively by Hyderabad. Pune and Mumbai  Only 17% and 16% of Hyderabadi and Mumbaikars respectively and 12% each of Pune and Delhi and 11% Bangalorean wish to get intimate with their partners with summer vacation  17% Delhi-ites and 16% Hyderabadis enjoy Shopping for stuff they don’t need followed by 9%. Followed by 14%. Bangalore. 100% of Hyderabad and 60% of Delhi. Delhi and Pune interested  Indulgences Galore!  31% Indians wish to explore the city with locals and 30% wish to indulge in Adventure sports. Day Excursion is something that everyone wants to try out.

a globally integrated strategic insights consulting firm. This survey was conducted online from April 15 to May 12. Bangalore. 2008-09” aims to study tourism expenditure pattern of different socio-economic sections in India. Mumbai. The study was conducted among 520 employed adults aged 18 years of age and older. The study was made on data collected by “Domestic Tourism in India” in 2008-09. The study was made on following socio- economic variables: Gender Age Marital Status Religion .  28% Delhi-ites prefer to post once a day on social media while on vacation and only 20% Mumbaikars do the same  30% Pune-ites post at-least once a week on social media and only 16% do the same during vacation  48% Indian talk and interact more with the locals and 28% don’t interact much with locals  54% from Bangalore top in interacting with locals and at 39% Delhi is the least interested  15% from Hyderabad wish to mingle/hang out with Indians and 9% from Bangalore wish to do the same  39% Bangaloreans like to explore the city with the locals compared to 21% Pune-ites  28% Pune-ites are curios collectors topping the list compared to 17% Bangalorean  13% Mumbaikars wish to spend on Spa treat to detoxify & rejuvenate and only 9% Hyderabadis enjoy the same  14% Bangaloreans wish to avoid Indian who are loud & litter around whereas only 10% Delhi-ites wish the same  30% from Pune wish to be on their own and don’t interact much whereas 26% from Bangalore and Mumbai feel the same Methodology The study was conducted on behalf of Expedia by Access Media International. The article on “A comparative study based on Domestic Tourism Survey. 2015 across Delhi. Hyderabad and Pune.

 Social gatherings including marriages. Transport charges. friends. etc. the report gives figures on Socio-economic categories and data average overnight trip duration. trekking. others). academic lectures  Health & medical – This includes travel for special treatments such as Ayurveda  Shopping – Shopping for not for sale items especially during festivals like Eid.e. visiting relatives. Recreational Adventurous activities Others . Report also summarizes data on categories of expenditure by religion and household type (i. summer camps. Shopping. Health expenses. trade fairs. Diwali. casual labour. Social Group Household Type Educational level Usual Principal Status Profession / Occupation Industry of employment The survey identifies following reasons for travel in India:  Business – People travelling for business assignment such as attending conferences. Further. leisure and recreation – These include people who travel for leisure. adventure sports. recreational activities.  Holidaying. self-employed. The categories of expenditure include the following: Accommodation. etc. Employed. cultural activities. holidays at beaches and hill stations. The data on overnight expenditure by people from different employment sector shows that maximum expenditure is from people of services sector.  Pilgrimage & religious activities -  Education & training – People travelling for Short term courses. etc. conducting trainings. etc.

Events – These are the places which attract crowd during events only.The report shows some interesting facts about the behaviour of tourist when comes to expenditure category.Escape. Purpose-built attraction – These are locations which have been purposefully built or constructed. visit friends or family Personal development – Learning new skills Status – Exclusivity Cultural – New Cultures The paper sights several reasons for unprecedented growth in tourism industry in past century. etc. Many more theme parks and amusement parks being developed around cities and resorts . managed. Further. tourist destinations. dams. the paper divides the travel motivators into 4: Physical . Heritage attraction – These are the places with old constructions which have a historical importance. It classifies the tourist attractions into 4 types: 1. relaxation Personal . People majorly go here for sight seeing 2. 4. A research paper. reasons and activities on tour. caves. battlefields. Forts. which was developed in US (California) and then in other parts of the world. discovered. Examples like Disney land. 3. 2-day weekends  Technology which makes travel and travel arrangements faster and easy  Motorization has increased the speed of travel phenomenally  Promotion of tourism in media  Promotional activities and incentives by local and state governments  Different holiday packages and convenience for travel This study shows that the tourist attractions are produced. “Consumer Behaviour and Recent Trends for the Expansion of Tourist Attractions” demonstrates the contemporary trends in the tourist attractions. created in order to manage the changing needs and interests of tourists around the world. seashores and any other scenic locations. Natural Attraction – These are generally natural places like waterfalls.Health. The reasons include:  Social welfare  Leisure time like paid holidays.

The findings of this study are aligned with the earlier research findings and adds new dimensions for the travel behaviour of non-workers from a particular city in India. Monoja and Vermab (2013) presents the travel behaviour of non-working people. It models the number of discretionary and frequency stops specifically for non-workers. As per the author. Another thesis reflects on India as tourist brand and how critical it is to boost tourism among Indians as well as foreigners. Conclusion Journal papers in the area of tourism have given great insights into the key aspects driving the consumer behaviour and industry over the years. Last 2 decades has seen a phenomenal increase in the tourism as leisure industry. However. Hence. The promotion of destination in print and mass media should reflect the positioning and image of the destination and should be aligned with the expectations of potential tourists from that particular region or state. Practically. it does not show any quantitative on which factors are more effective than others and it does not show any relevant data analysis for these conclusion. However. Thus. The model uses Poisson regression technique for concluding the results from survey data. this is first of its kind when it comes to study of non-workers.being developed near cities and beaches to match the needs of the tourists. this short research paper explains more of a qualitative aspects of different dynamic factors that affect tourism. this study itself is not a comprehensive to predict the travel patterns of the non-workers across different socio-economic divisions of the society. The study can be extended to disaggregate stop level analysis to develop to predict the travel behaviour. Non-workers are a significant chunk of the population from the middle income group of Indian society. they have leisure time and have responsibility to travel for events like family visits or functions or events. This has given boost to multiple sectors such as hotels and hospitality. The prime objective of this study was to find out the socio- economic attributes which are driving the travel behaviour of the non-workers. Paper on travel choices of Gujarat provides findings on differences among people from different cities which could be extended to other states . it is an attempt to estimate the travel demand by non-workers from an Indian city. The study highlights the fact that the Destination marketing and marketing strategy should be aligned to effectively promote the destination as tourist spot. They had conducted this for the city of Bangalore. passenger transport and other activities at tourist destinations.

Ministry of Tourism Government of India . World Tourism. Analysis and Modelling of Activity-Travel Behaviour of Non workers from a City of Developing Country.e. http://www. Domestic Tourism Survey (2002-03) by National Council of Applied Economic Research 3. our study will majorly be focused on References 1. there has been a very small research of travel behaviour of middle income people which is backbone of Indian economy. Hence. it gives city-wise insight into travel behavioural and comparisons between metro cities w. Though. So far in the literature. The other report which studies the travel patterns of non-workers from a city in India ( 7. 4. Snehal J.t. Manoja. travel behavioural aspects.Annual Report (2007-2008).gujarattourism. Gujarat Tourism. http://www. Global Journal of Finance and Management 8. As non-workers constitute significant part of the middle income group in India. India 9. “A comparative study of the tourists behaviour towards travel and factors considered while selecting tours and travel destination in the selected cities of gujarat” 2. Ministry of Tourism. This can be a close representation of the country’s travel behaviour as it includes all the major cities including Mumbai and Delhi. Bangalore).r. presents travel behaviour of non-workers with useful 6. Destination branding: a holistic approach for brand architecture in tourism industry (2014) by Sunaina Ahuja .t. Government of India 5. Holiday report 2015 lists a plethora of key findings w. Bhatt1 and Dr. And the report captures data on acute details such as their preference for choice of time for travel and the activities. travel behaviour and preferences from the data of survey from all the tier-1 cities of the country. How households of different Socio-Economic background spend on tourism – A comparative study based on Domestic Tourism Survey.and parts of the country. 2008-09 by. Thus. Consumer Behaviour and Recent Trends for the Expansion of Tourist Attractions. Ashish Vermab (2013). the idea of multiple bread-winners is getting popular. The report presents findings on the basis of behavioural aspect for each city where the survey was conducted. non-working population is significant and often plays a major role in decision making and preferences & choice for tours and travels. Kerva Pandya (2014).r. in recent years.