IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 5, No.1, February 2015
MARKETING PRACTICES OF INDIAN
MEDICAL TOURISM- A REVIEW
Sangeeta
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, Haryana,
India. Email-Id - sangeeta047@yahoo.co.in
Abstract
The paper present the review of medical tourism in
relation with the marketing practices of Indian tourism.
The paper entails the product, price, place, promotion
and integration of marketing practices performed for
medical tourism in India. The paper covers wide
collection of academic literature on medical tourism
which specifies different approaches and emphases of
research in diverse disciplines. The paper emphasis on
the proactivity of Indian medical tourism in order to
survive under competitive pressure.
Keywords- Healthcare, Marketing Practices, Medical
Tourism, Service providers
I. INTRODUCTION
The past few years have seen the emergence of India
as a credible healthcare delivery destination, with a
strong backbone of clinical talent, contemporary
infrastructure and very cost effective delivery (Mudur,
2004). The steady and aggressive growth of the
economy has provided a huge momentum to India’s
healthcare sector. With a view to provide quality
healthcare, government and private, both players are
exhibiting keen interest to promote the growth of this
sector due to steep growth rates (Deloitte, 2008; Grail
Research, 2009; IITM, 2011). India is witnessing a
steady increase of overseas patients particularly from
Bangladesh, Nepal, Afghanistan, Uzbekistan,
Kazakistan, Middle East, and Africa, parts of Europe,
UK, and USA (Emerging Market Report, 2007;
Karmakar, 2011). The Indian Prime Minister’s
Council on Trade and Industry policy framework for
reforms in health care (Ambani and Birla, 2000)
declares an objective to develop and promote India as
a destination for affordable and high quality medical
services in the global health care industry.
 
Healthcare industry is one of the most growing sectors
in world economy. Most of the customers of health
care services in developing countries are from rich
countries (Crooks, Turner, Snyder, Johnston, &
Kingsbury, 2011; USAID, 2009; Reddy & Qadeer,
2010). Medical tourism is a niche market and very few
customers are concerned in availing medical facilities
abroad. A large number of JCI* accredited Indian
hospitals, large pool of highly qualified and often
foreign-trained physicians provide substantial proof of
its advancement in this field (Leng, 2007; ECLAC,
2010). Despite the many comparative advantages that
India enjoys, there are still several barriers to the
export of health services (Chanda, 2002; Rath, Das,
Mishra & Puthan, 2012) including the lack of
portability of health insurance coverage (Deloitte,
2008; Hadi, 2009) and the lack of recognition of
Indian medical qualifications (Chanda, 2002).
Medical tourism is emergent phenomenon that entails
economic benefits and healthcare concerns. Medical
tourism involves patients leaving their country of
residence outside of established cross-border care
arrangements with the intent of accessing medical
care, often surgery, abroad (Bookman & Bookman,
2007; Deloitte, 2009; Medical Tourism Association,
2011; Rath et al., 2012). There is an ongoing debate
to illustrate the overseas movement of individuals for
treatment. A range of nomenclature has been used
like health tourism, medical outsourcing, and medical
refugee. Here we go for medical tourism, a much
*JCI (The Joint Commission International) is a U.S based
accreditation body dedicated to improving healthcare
quality and safety around the world.)
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 IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
broader notion having longstanding historical
background in country like India, including spas,
Ayurveda therapy, and Homeopathic treatments.
Medical tourism has been stated as
‘….when consumers elect to travel across
international borders with the intention of receiving
some form of medical treatment. This treatment may
span the full range of medical services, but most
commonly includes dental care, cosmetic surgery,
elective surgery, and fertility treatment.’(OECD,
2010).
‘….to people who live in one country and travel to
another country in order to receive medical, dental
and surgical care while at the same time receiving
equal to or greater care than they would have in their
own country, and are traveling for medical care
because of affordability, better access to care or a
higher level of quality of care.’ (Medical Tourism
Association, 2011).
Broadly speaking, medical tourism is the act of
traveling to obtain medical care among three
categories as outbound, inbound and intrabound
(Deloitte, 2008; USAID, 2009). As travel with the
aim of improving one’s health, medical tourism is an
economic activity that entails trade in services and
represents the splicing of at least two sectors:
medicine and tourism (Bookman & Bookman, 2007;
Deloitte, 2009; Rath et al., 2012).
General agreement on Trade in services (GATS) has
defined the health service through four modes of
supply examine by Chanda (2002) as Cross-border
delivery of trade (mode 1), Consumption of health
services abroad (mode 2), Commercial presence
(mode 3), Movement of health personnel (mode 4).
Medical tourism falls under mode 2 which considers
the movement of persons to the service providing
countries. Here patient’s home country is considered
as ‘importer’ of the medical services while country
that offer medical tourism services is termed as
destination country, hence, ‘exporter’ of services.
Over 35 countries are serving around a million
medical tourists annually. World medical tourism
market is estimated to be around $60 billion currently
(Deloitte, 2008; IITM, 2011)
Vol. 5, No.1, February 2015
Medical tourism industry is ever under pressure to
justify their marketing practices and expenditures
carried out in response. What are the major indicators
that affect the medical tourism and what are the
strategies obligatory to opt has a major issue.
Marketing strategies helps in achieving increased
sales in an organisation with a sustainable
competitive advantage by focusing on the limited
resources. Marketing practices like promotion of
health care service, physical evidence, price
effectiveness etc. have contributed in medical tourism
development most. Price and promotional sensitivity
is expected to increase as downturn depreciates the
value of rupee. Sales sensitivity in medical tourism
signify the receipts from medical tourist in form of
selling services and price sensitivity deals with the
change in price of services with effect to fluctuations.
Most of the studies have been undertaken in USA,
UK and developed nations to find out the marketing
practices opted in healthcare industry. However
different possible mechanisms should be explored to
understand the ways through which service providers
can rebuild the strategies for attracting large no. of
patients inbound or outbound. The paper is structured
in three parts and next section covers the research
methodology and objectives of study. The third part
considers broader literature pertinent to propositions
formed in respect of marketing practices opted by
medical tourism and findings pertaining to same.
II. OBJECTIVES OF THE STUDY
This paper aims to scrutinize how India could
become a magnet for medical tourists by streamlining
marketing practices in this regard. So present study
try to explore the marketing practice opted for
restructuring of medical units in India.
III. RESEARCH METHODOLOGY
The framework mainly considers the marketing
practices of Indian medical tourism. The focus of this
article is on the major marketing practices like
promotion of health care service, physical evidence,
price effectiveness, price competitiveness. The paper
review relevant literature from respective journals
which are most important source of study. The paper
covers wide collection of academic literature on
medical tourism which specifies different approaches
and emphases of research in diverse disciplines.
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A. Propositions
P1- Distinct products/offers delivered have positive
role in growth of medical tourism in India.
P2- Price effectiveness has direct impact on growth
of medical tourism in India.
P3- Channel decisions (facilitate to consumers) have
direct impact on growth of medical tourism in India.
P4- Promotional effectiveness has direct impact on
growth of medical tourism in India
P5- The integration of marketing practices lead
medical tourism towards proactivity.
IV. DISCUSSION
A. Distinct products/offers delivered
Since medical tourism is a new phenomenon, much
published data is not available. A recent trend has
shown that people from developed nations are
seeking treatment from the developing countries
(Johnston, Crooks, Snyder & Kingsbury, 2010;
Reddy & Qadeer, 2010). At individual and
community level, lifestyle is growing rapidly leading
towards various numbers of problems termed as
lifestyle diseases. Therefore, need arises to de-stress
and introduce distinct medical products to resolve the
dilemma (Smaha, 2010; ECLAC*, 2010; Helble,
2011). Hospitals are traditionally not in tourism
business but understanding the importance of
sustainable practice towards their consumers, are now
in the hunt for providing medical tourism services to
them (Eggertson, 2006; Kumar, 2009; Bristow, Yang
& Lu, 2011). In this regard Whittaker (2008, p. 273)
has put in plain words the exact state of affairs of
hospitals as
‘many of the hospitals involved present themselves as
having relaxed, resort-type, accommodations,
conducive to convalescence and rehabilitation, with
services….’
To promise high quality health care hospitals are
looking for accreditation from JCI as more than 200
hospitals worldwide have been accredited.
Accreditation is predominantly essential because it
can offer consumers and employers a level of
assurance that the services provided are comparable
to those available in their respective home countries
(Leng, 2007; Deloitte, 2008; Grail Research, 2009;
Medical Tourism Association, 2011). In the health
Vol. 5, No.1, February 2015
industry, the product represents goods, services, or
ideas offered by a healthcare organization.
The product is difficult to precisely be defined in
healthcare, creating a challenge for healthcare
marketers (Hazarika, 2010; Lunt, Smith, Exworthy,
Horsfall & Mannion, 2011; Rath et al., 2012; Faidon
& Vasiliki, 2012). Medical tourism model endowed
with surgical procedures; dental treatment, facelifts,
hair transplants, liposuction and non-surgical
procedures; hair removal, most of which are not
covered by health insurance and are either costly or
restricted for legal reasons in most developed
countries (Turner, 2007; Shetty, 2010). Many
hospitals in India, Thailand, Singapore and Malaysia
have provided hotel like amenities to the patients. In
order to provide attractive offers, hospitals provide
maximum comfort to the patients in form of private
elevator, discreet expedited check in process, special
in room services, adjustable beds, and medical
friendly bathrooms design & fixtures (Suthin,
Assenov & Tirasatayapitak, 2007; Kumar, 2009;
Grewal, Das, Nandan & Kishore, 2009; Khan, 2010;
Dawn & Pal, 2011).
Receiving safe and quality care is the primary issue
for consumers considering outbound medical tourism
as a treatment option (Chinai & Goswami, 2007; Hall
& James, 2011; Faidon & Vasiliki, 2012).
Destination countries are offering best treatments in
both conventional medicine; Ayurveda, Homeopathy,
naturopathy & Yoga and modern medicines;
cardiology, orthopedic surgery, gynecology, cosmetic
surgery & dental surgery (Horowitz, Rosensweig &
Jones, 2007; Kalshetti & Pillai, 2008). Variety of
health care products, capturing the larger market, in
expanded areas provides manifold alternatives to the
distant tourist (Hadi, 2009; SINET, n.d.; Kangas,
2010).
Medical destination countries, by providing access to
a set of service packages, encourage patient’s
preference with alternative costs and unfound quality
in developed nations (Turner, 2007; Hadi, 2009; Rath
et al., 2012). Thus, India is on the edge to play an
essential role in medical tourism, fastest growing
industry, of extensive repute in surgical treatments.
*ECLAC stands for Economic Commission for Latin
America and the Caribbean.
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With continued efforts and initiatives of hospitals by
rapidly offering the superior medical services and
treatments, medical tourism is expected to grow @
15% per annum over the coming few years (Bhat and
Jain, 2006; Emerging Market Report, 2007).
Therefore based on available literature, here study
propose that
P1- Distinct products/offers delivered have positive
role in growth of medical tourism in India.
B. Price Effectiveness
Like other international trade, competitive pricing has
a great significance in the medical care to attract
medical tourist at certain destination for undergoing
medical treatment (Lee, 2007; Rath et al., 2012).
Lower cost is key aspect that catches the attention of
patients from high developed nations to less
developed countries (Sood & Cox, 2008; Johnston et
al., 2010; Hult & Philipson, 2012). The accessibility
of economical pharmaceuticals, lower labour costs,
and deficiency of insurance encourage developing
countries to offer treatments at significantly lower
prices by including travel and accommodation
(D’Essence Consulting, 2004; Whittaker, 2008;
Grewal et al., 2009). Cost saving differ by destination
and by procedure according to specific commercial
and non commercial sources (Martin,
Ramamonjiarivelo & Martin, 2011; Hall & James,
2011). A shoulder operation performed in India
within 10 days from the initial contact, would cost $
1700 compared to rich nations cost approximately $
10000. For instance hip replacement that cost about $
50000 in USA will cost $ 8000 in India and Thailand
(Deloitte, 2008; Smaha, 2010; ECLAC, 2010).
India, Thailand, Singapore and Malaysia have a
competitive advantage in pricing in spite of high
standard of medical treatments and services offered
to the patients (Kalshetti & Pillai, 2008; Tourani,
Tabibi, Tofighi & Zadeh, 2010; Shetty, 2010). Smaha
(2010) has put out the two categories of patients one
which consist of middle income adult patients who
needs surgical treatments not having insurance
coverage and second who have insurance coverage
seeking lower price medical care. Medical travel
provides an opportunity to reduce cost by as 94% of
total USA, UK’s cost of procedure (Grail Research,
Vol. 5, No.1, February 2015
2009). Limited involvement of third party payers,
less stringent regulatory environment, and lower cost
associated with the malpractice litigation and
insurance coverage (Emerging Market Report, 2007;
Karmakar, 2011).
For inbound and outbound tourists, most of the
operational treatments are done on the basis of
exclusive packages. Since expenditure has been fixed
prior to operation, patients need not to be worried
about aforesaid practices (Grewal et al., 2009; Hall,
2011). Most popular destinations for medical tourism
are termed as ‘third world’ and offering first world
health care. Turner (2007, p. 309) has explained third
world price as
‘…..there needs to be a significant spread between
the average price of the procedure in country of
origin and the cost of the procedure in the destination
setting. There must be financial justification to travel
after taking into account the cost of the procedure,
accommodation, travel expenses and all other
expenses.’
India had come late into medical tourism market but
catching up other competitors to turn out to be chief
health care provider (Whittaker, 2008; Kumar, 2009;
Dawn & Pal, 2011). The main strength of the Indian
approach is its capacity to provide medical services at
the lowest cost among all international health care
providers. Therefore based on available literature
which depict that price has a significant effect on
growth of medical tourism, the study purposes that
P2- Price effectiveness has direct impact on growth
of medical tourism in India.
C. Channel decisions facilitate to Consumers
Aiming opportunity to travel to exotic locations and
spending vacations in lavish locations lead some
patients to exert medical care abroad. Effective
marketing is unified with adequate channel decision.
The major hospitals seeking patients will have to
focus on messaging and offers, delivered to niche.
Positioning the distribution channels and constructing
a message will serve as a decisive proposal for
growth in this sector (Kotler & Keller, 2008;
Kalshetti & Pillai, 2008).
For disseminating information related to medical and
non medical care services, healthcare service
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providers are using internet; the most effective way
to reach the product to its target customers (Lunt,
Hardy & Mannion, 2010; Turner, 2012). Interactive
communications, full description of treatment and
quality assurance have been put on the website so
that potential patients may easily locate the desire
medical services (Bezruchka, 2002; ECLAC, 2010;
Laesser, 2011). Along with internet, medical travel
agents are major link between hospitals and patients,
who recommend patients about best treatment
facilities available in destination country (Peters &
Sauer, 2011; Turner, 2012). Foreign tour operators,
insurance companies, travel agents, local tour
operators, and independent medical referral
companies are the chief channels which facilitate
consumers to avail medical facilities with best care
and affordable prices (SINET, n.d.; Lunt et al., 2010).
Although medical tourism agents and travel
professionals facilitates the tourism aspect of
offshore care by managing the channel decision
because the recreational value of travel has
decreasing importance to patients with complex
medical problems (Voigt, Brown & Howat, 2011;
Martin et al., 2011; Fortis Healthcare Annual Report,
2012 ). The primary reason that medical centers in
developing countries are able to provide healthcare
services inexpensively is directly related to the
nation's economic status. India’s corporate hospitals
such as Fortis, Apollo, Max Care, AIIMS, Escorts
hospitals etc are honored to make country a medical
destination by offering world class treatments’ (a
combination of traditional and modern medical
practices) and less waiting time (Eggertson, 2006;
Jagyasi, 2010). Overstretched health plans in
industrialized nations push patients to move to more
relax planned countries likewise India where
corporate hospitals provide elective surgery in
minimal waiting period (Garg & Bhardwaj, 2012).
Around the world, various medical travel companies
have set up linkages with the hospitals in India
(Grewal et al., 2009; Rath et al., 2012). Delhi,
Mumbai, Bangalore and Chennai gratify more no. of
patients by enhancing infrastructural facilities,
coordinating facilities, hospitality services, and
medical transportation. Many hospitals in India are
expanding their business abroad so that follow up
care of foreign patients may carry out in operating
Vol. 5, No.1, February 2015
units (Suthin et al., 2007; Apollo Healthcare Annual
Report, 2011; Crooks et al., 2011). Hence here it
could be concluded that channel decisions have a
unified role among marketing practices. So hereby
study proposes that
P3- Channel decisions (facilitate to consumers)
have direct impact on growth of medical tourism in
India
D. Promotional Effectiveness
Health care service providers adopted an approach
that most multinational and corporate business
enterprises follow in terms of designing marketing
strategies, pricing, branding, management and
maintaining the quality of services (Bookman &
Bookman, 2007; Turner, 2007; Rerkrujipimol &
Assenov, 2009). This approach, along with increasing
global integration of businesses, and the cost & wait-
time crises in western health care systems, created
opportunities for many health facilities in developing
countries (Bezruchka, 2002; Emerging Market
Report, 2007). Advanced communication technology
made crucial changes in the development of medical
tourism industry as it becomes quite unproblematic to
locate the best medical facility over the world. Travel
agencies provide reassurance, legitimacy and a
proper check out for right medical care according to
patient’s conditions (Khan, 2010; Tourani et al.,
2010; Lam, Cros & Vong, 2011). Crooks et al. (2011)
argued that best medical practices is to inform the
patients each and everything about the medical
procedures, medical treatments, tourism opportunities
and travel arrangement and justify the cost in this
regard as
‘Promotional costs are likely to be more manageable
if brochures, booklets, and flyers can be produced for
all markets, rather than separate sets for potential
international patients from developed nations and
those from developing nations.’ (Crooks et al., 2011)
To better inform the potential patients, corporate
hospitals of developing nations participate in trade
fairs, travel marts, exhibitions, conferences and
advertised in travel magazines (Rerkrujipimol &
Assenov, 2009; Dawn & Pal, 2011). Healthcare
service providers advertise in both local & global
media and attempt to create awareness with the help
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of articles or news related to latest accreditation,
medical treatments. Moreover, hospitals and health
care service providers’ collaborate with the medical
schools/universities to exchange knowledge and to
promote medical facilities (Boga & Weiermair, 2011;
Crooks et al., 2011).
Government of destination countries has also take
initiatives in promotion of medical tourism as
destination countries established medical travel
associations and websites so that potential patients
can approach easily desired treatment (Lunt et al.,
2010; Lunt & Carrera, 2011; Turner 2012).
Government provides various value added measures
for the development of health service (Whittaker,
2008). Reforms of medical benefits scheme in India
by providing 1 year’s visa validity to the foreign
patients make eager to the private owned hospitals to
attract patients from abroad (Chinai & Goswami,
2007; IITM, 2011). Promotional elasticity has been
defined by the George & Swamy (2006) by doing
case study of three major hospitals in India (Apollo,
Kerala Tourism Development Council and Amrita
Institute of Medical Science and Global Health
Tours) providing services of medical consultants,
brokers and establishing rejuvenation centers so that
customers need to visit over again. It, therefore,
implies that promotional effectiveness catches the
attention of local and international patients. So study
purposes that
P4- Promotional effectiveness has direct impact on
growth of medical tourism in India
V. FINDINGS
Medical tourism is a source of hard currency for the
‘destination countries’ facilitating health care
services (Johnston et al., 2010). Earlier medical
tourism was generally regarded as travel to rich
nations from developing countries, now it goes in
both directions (Smith, 2008; Hadi, 2009).
Developing nations are engaging in developing
integrated marketing practices to capture the attention
of patients. Well trained doctors and medical staff
have been promoted on the website of hospitals as
specialized doctors proved competitive advantages
(Suthin et al., 2007; Mainil, Platenkamp &
Meulemans, 2011). Furthermore, communication
Vol. 5, No.1, February 2015
skills and less understanding of patients’ culture has
remained unsolved challenges in front of healthcare
service providers.
Health care service providers must ensure state of art
in medical technology and procedures. To remain in
market place, service providers take initiatives by
marketing the best health services (Kangas, 2010;
Crooks et al., 2011). Regarding the marketing
strategies government should encourage cheaper
transport and accommodation, special training for
service providers and there should be round the clock
services for communication and promotion of health
services inbound or outbound (Lee, 2007; Grewal et
al., 2009).
Kangas (2010) has illustrated four models of medical
journey as the market, resources, government, and
individuals. These models depicted the
interconnection of four factors that individuals,
government, resources of healthcare and health
providers must work together for placing country as
one of the most preferred destination for healthcare.
To create USP (unique selling proposition) of Indian
medical tourism, healthcare service providers need to
team up with government and need to adopt country
specific marketing strategies. Commodification of
health services, physical evidence, and drawing up a
price band, opening up facilitation centers, and tie
ups with overseas insurance companies enlightens the
way towards a more proactive approach. Therefore,
the study concludes that integrated marketing
practices has a direct impact on the medical tourism
industry and healthcare service providers should
propose effective marketing practices as
P5- The integration of marketing practices lead
medical tourism towards proactivity.
In summary, it is imperative to appraise the potential
in each and every segment by shared value
proposition, information and quality care. Hospitals
need to maximise strengths, maintain consumer
choice and improve quality standards. Price
transparency efforts like low cost of labour, cost
associated with malpractices litigation & insurance
and limited association with third payers are essential
to articulate. It can be concluded that Indian medical
tourism ought to be proactive and focus on integrated
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marketing practices in order to survive the
competitive pressure.
VI. LIMITATIONS OF THE STUDY
The study has presented a vision of the trends in
medical tourism. The study confined to marketing
practices opted by medical tourism industry. Most of
the studies available on medical tourism are of
qualitative nature and very few (n=5) are empirical
studies. Most information has been generated online
and very little from the academic journals. That’s
why it is essential to explore unified data to
undertake logical studies in growth of medical
tourism industry.
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Annexure
Table 1. Cost Structure
Treatments USA India Koreo Mexico Singapore Thailand Jorden
Heart Bypass $1,44,000 $8,500 $24,000 $20,000 $13,500 $24,000 $10,000
Heart valve $1,70,000 $1,200 $36,000 $30,000 $13,500 $22,000 $12,000
Replacement
Hip Replacement $50,000 $8,000 $16,450 $13,125 $11,100 $14,000 $8,000
Hip Resurfacing $50,000 $8,000 $20,900 $12,800 $12,100 $16,000 $8,000
Dental Implant $2,000- $12,000 $3,400 $9,10 $2,900 $3,000 $5,00
1,000
Face Lift $15,000 $7,000 $3,000 $7,200 $4,000 $6,600 $3,000
Knee $50,000 $7,000 $17,800 $10,650 $10,800 $12,000 $7,000
Replacement
Source- Indian Medical Tourism Association, 2011

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