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Tourism Industry CHAPTER 1: INDUSTRY AND WORKINGS
Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to airlines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry. The tourism industry is now one of the largest sectors earning foreign exchange for the exchequer. In the face of such benefits, many countries have started assigning due weightage to the tourism industry in their national development agenda.

Tourism statistics:
♠ Tourism is one of the world's fastest growing industries at present and holds the status of the world's no. 1 industry. ♠ ♠ Tourism is one of the world's fastest growing industries at present and holds the status of the world's no. 1 industry.

♠ The industry creates a job every 2.4 seconds with every one of those direct jobs creating another 11 indirect ones. ♠ Spending on tourism amounts to 5%-10% of total consumer, spending in a year worldwide. ♠ India's share of the total market is a pittance at 0.51%. The nontourist countries like Malaysia and Indonesia get much more tourists than India. ♠ However, the average duration of stay of foreign tourist in India is one of the highest in the world. On an average, it exceeds 27 days in the case of non-package tourists and is 14 days in the case of package tourists. ♠ Tourism has the distinction of being the third largest export industry after gems and jewellery and readymade garments in India.

♠ The Tourism industry's foreign exchange earnings in India are around $3.2 billion. Tourism is the highest foreign exchange earner if we consider the fact that net value addition in Gems and jewellery is less than 30 % whereas, in tourism it is more than 90 %.

India: Tourism Revenues and Expenditures 1990-2010

♠ It also has one of the best employment multipliers when compared with any other industry in India. It generates maximum job opportunities, as it provides direct employment to 9.1 million people and indirect employment to another 12.4 million. But these statistics do not appear so impressive when viewed in the global perspective and compared with that of other countries shown in the graph below. Tourists Arrivals and Receipts From Tourism 1996

2000 crore in 1996 from this sector. Study by Mahajan and Aibara. Though it was recognized as a priority sector in the Seventh Five Year Plan. 379 crore. Report. budgetary support for this department is a mere Rs. still.1996. ♠ The tourism industry currently stands 127th on the list of priorities of the Indian government. This is despite a total tax collection of about Rs. if solving the country's unemployment and foreign exchange problems are on the top of the national agenda. 1997. . 2. hardly anything was done to promote this industry. World Tourism Organization . ♠ Tourism has been a neglected sector in India.Source: 1. ♠ Though the government has promised to give industry status to tourism. It is true that India has yet to reach the prosperity level where leisure activity can be included in the priority sector but. Consultants to the Tourism and Hotel Industry. the potential of this industry cannot be neglected.

OPPORTUNITIES a. a blend of various civilizations and their traditions. and beaches. b. superstition. for example. Thus. There are international players in the market such as Taj and Oberoi. The advantage here is that domestic . d. More proactive role from the government of India in terms of framing policies. a culmination of deserts. Allowing entry of more multinational companies into the country giving us a global perspective. b. WEAKNESSES a. c. No proper marketing of India's tourism abroad.e.Swot Analysis: STRENGTHS a. This provides better margins for the industry. The airlines in India. There are many places where the image of India is one of poverty. Diversity of culture i. forests. b. Growth of domestic tourism. Foreigners still think of India as a land of snake charmers. The case of Plague in Surat in 1994 led to a decrease of 36% in arrival of foreign tourists in India. and diseases. Lack of adequate infrastructure. A wealth of archeological sites and historical monuments. e. are inefficient and do not provide basic facilities at airports. A xenophobic attitude among certain sections of people. the needs of the international tourists and travelers are seen to while they are on a visit to India. Manpower costs in the Indian hotel industry are one of the lowest in the world. The road condition in India is very bad. c. c. mountains. India's geographical location. A very wide variety of hotels is present in the country that can fulfill the demand of the tourists.

THREATS a. Aggressive strategies adopted by other countries like Australia. . c. Economic conditions and political turmoil in other countries affects tourism. Singapore in promoting tourism. b.tourism and international tourism can be segregated easily owing to the difference in the period of holidays. Political turbulence within India in Kashmir and Gujarat has also reduced tourist traffic.

Illiterate 5.CHAPTER 2: TYPES OF CUSTOMERS & SEGMENTATION A. Non-users: They lack the willingness. B. Artists 7. Women 3. Youths. preferences and expectations which are the result of environmental influences. desire and ability (income & leisure time). Education. Habitual Travelers: They have formed a habit and avail of the services regularly. Foreign Kids. Urban 4. Sex. Users Of Tourism Services The users of tourism services can be categorized in a number of ways. Executives. Artists Politicians. Seniors Students. Sex: Men. 1. Region: Rural. Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse. etc. Blue collar Another method of classifying users of tourism services is on the basis of the frequency of usage of services. In recent years. products and . One such way of classifying the users is by dividing them into categories such as General. 2. Movie stars 2. perceptions. Actual Users: They are already using the services generated by the tourist organizations 4. Users have values. Need For Segmentation Consumer behavior can be defined in psychological terms as the whole range of the generation of wants and their transformation into buying or using decisions. There are a number of factors that influence the behavioral profile of consumers. Academics. Status: Rich. Occasional Users: They have not formed the habit of traveling 5. Occupation: White collar. Profession: Executives. 1. 3. Sportsmen. the users have become more discriminating in their using habits and therefore their needs for different services. Teens. General: Domestic. Poor 6. Region. Education: Literate.

etc. Lifestyle Personality motive Knowledge Age Sex Religion Rich. cities. availability of leisure time. Illiterate Business Travel Cultural Tourism Common Interest Convention Teens Youth Seniors . This makes it essential that the marketers analyze their behavioral profile and undertake segmentation so that they know the level of expectations. Traveling decisions are fantastically influenced by changing lifestyles.brands change constantly. They are also affected by other factors such as level of income. transform them into actual tourists and further into habitual tourists. Urban Literate. Poor Rural. one of the most important is Lifestyle. C. BASE OF SEGMENTATION Holiday CATEGORIES Demand Geography Psychography Demography Socio-economic Purpose Age Mass market Popular market Individual market Primary Secondary Opportunity International On the basis of regions. etc. Segmentation Though there are a number of bases for segmentation of tourists. In this way they can identify the potential tourists. tourist organizations need to undertake segmentation in order to simplify their task of creating and stimulating demand. In a nutshell.

They are generally conservative. ♠ Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations. but once they have children they would prefer family vacations where there are plenty of activities to entertain kids. etc. For example: ♠ The mass market consists of vacationists that travel in large groups and prefer all-inclusive tours. ♠ The individual market consists of chairmen. This group includes pensioners and retired people. ♠ The popular market consists of smaller groups going on inclusive or semi-inclusive tours. senior executives. consumption of services might change. ♠ As the lifestyle changes.Such segmentation is useful when deciding the offerings to target a particular segment. a newly married couple might prefer romantic holidays. . For example.

for example. Coach and bus companies have acted in a similar fashion and so have the car rental companies. and differing levels of service to meet different passenger needs. Cruise lines are operating different services tailored to consumers’ budgets. and present a recognizable identity to consumers which enables them to compete against the larger. are broadening and upgrading their range of services and facilities to meet consumer expectations. Thanks to the increase in tourist traffic. In order to gain recognition in an increasingly competitive marketplace. ranging from the biggest international chains recognizable worldwide such as Hilton and Holiday Inn to small independent establishments. There are . This shows the important role marketing plays as competition and demand intensifies. the range of airline services has considerably. Accommodation Accommodation includes hotels. for eg. and their role in tourism is as wide as with. over the years. With the innumerable dream destinations India offers the best of the accommodation facilities to the travelers to the land.Chapter 3. Under a central brand name. and other shipping lines involved in the tourist industry. car hire. Other types of accommodations are also well established in tourist markets. and to remain competitive. The Tourism Industry The tourism industry comprises of the following main and distinctive sectors:  Transportation  Accommodation  Tour operators  Tourism Destination Operators/ Destination Management Transportation Tourism industry is heavily dependent on the transportation industry which comprises of airlines. notably self-catering apartments and club type complexes. cruise and ferry lines. many smaller independent hotels have grouped together. they can offer central reservations services. coach and bus travel. adopting a consortium approach. passenger railways. more established chains. Passenger rail services have also changed. to the luxury of Palace on Wheels – where the train voyage is the holiday. not only in terms of frequency of flights and number of destinations. but also in terms of different services. Euro rail tickets allowing extensive international travel at basic(service) standard for students and budget tourists. especially the ferry operators.

With this in mind. family. In today’s competitive market and with the increased bargaining power of the consumers there is only one way to survive in the rat race and that is by segmenting the market and offering different products pertinent to the demand of that segment. Like many other countries worldwide. The incomparable and incredible land of India offers plenty of accommodation options such that the visit to the wonderland suits all pockets. The variety of hotels and resorts in India ranging from Luxury Hotels. Budget Hotels to the Heritage Hotels In India. The country where tradition and trends fuse to give you the best the range of possible accommodations is vast. Hotels in India have been categorized on different parameters all of them taking into account the factors such as service provided. or singles holidays to ‘near’ or ‘faraway’ destinations. location. The services and the facilities are such that the hospitability of India gets revealed always. There are the exclusive hotels and hotel chains that boast of luxurious amenities and world-class décor. to large operators offering services at all different levels to cater for budget. Thomas Cook is one of the best known of such operators.plenty of hotels and resorts in India that cater to the needs of tourists of all kinds. An independent local coach firm may also be a tour operator. and types of guests accommodated. incorporating travel and accommodation needs for the consumer. Then there are several Indian & International Hotel Chains in India. they also offer travel agency and financial services to their consumers. these categorizations help the common travelers zero down on the accommodation option he can afford or wanted to stay at during his/her visit. Tour operators Tour operators are the firms which specialize in providing the whole holiday package. They range from highly specialized operations such as Indianvisit. and many transportation companies also offer holiday packages. what does a holiday in India symbolizes? This is a question that every traveler to this vast subcontinent of human . who customize every kind of trip that you can dream of. Throughout the length and the breadth of the country that is dotted with tourist destinations the hotels and resorts are available to make your experience of India unique.com. Standard Hotels. facilities and comforts to satisfy the client’s at the most reasonable rates. The hotels and resorts in India provide high standards of quality of accommodation. heritage value. infrastructure.

India boasts of many beaches of Goa in the West. India with its long coastline of 7500 kms.beings. For few who have gone through contemporary literature on the country. beaches. Beach Holidays: Has the combination of Sun. we believe. offers some of the most exotic beach holidays and beach tourism destinations in the world.com believe is worth taking interest in. something that is new. For the ones who have seen the exploitations of Indian expats in Silicon Valley might consider the country as a future hub of knowledge economy. For a quintessential vacationer in India. chaos. traditions. Wildlife Holidays Heritage Holidays Pilgrimages Ecotourism in India: India. the swinging palms and the many hues of the sky. Sea and Surf ever tempted you to take a break from the daily monotonous chores that you perform so religiously? Then we have just the right package for you with the sure-shot itinerary to relax you completely. the land of geographical varieties offers several tourist destinations that not just de-stress but also rejuvenate you. the beautiful waves. The blaze of glory. The balmy beaches of India are perfect escapade for the fun loving holiday tourism seekers. It offers the perfect spot for the novice divers. There are several ways to enjoy Mother Nature in most pristine way. hues. These operators give you a number of exciting options categorized according to the interest and concept to tour India. is not the choice that you are going to make while visiting India. and shapes. and something that is exciting. the civilization and continuity of it that makes people look beyond the obvious. The country is not only about chaos and ways to control them. and religion asks himself at least once. But obvious. So you may head towards any direction of the Indian peninsula and be invited to . For many of them India is the exotic orient where you can find only the snake charmers or sadhus. wildlife. Kovalam in the South and Gopalpur in the East. The young state of Goa certainly happens to be the Beach Capital of India. the nature is for sure at its best at the beaches. the country presents itself in the plethora of colors. India is an organized chaos (as described one of the renowned writers and sociologists). With its inexhaustible range of culture. There are series of eco tours for India that provide the coolest hangouts to take pleasure in indulging oneself into the God gifted environs. What you need is something different. Sand. The great peninsula with the Indian Ocean in the middle and accompanied by the Arabian Sea and the Bay of Bengal on each side besides the two archipelagos of Lakshadweep and Andamans is perfect for beach holidays for tourists the world over. it is about life. dust. Concept tourism is one exciting option that a few tour operators like Indianholiday. and mountains India is huge.

the sun bathed beaches.crafted out Ayurvedic treatment package that would rejuvenate your body and mind and make you face the hustle and bustle of the city life again. You name the adventure and India has the right spot for it. The rich and varied heritage happens to be one of the many sources of pride of the nation. customs and languages. step into the world. Adventure Holidays: Ever felt the waves of a river on your face. the desire to meet challenges makes people take up any of the adventure activities and rejuvenate themselves.that's what makes India a different locale to visit. The never-ending shores and the untouched oceanic horizons seem to be mesmerizing. Try out the aerial. i. wish to see to the land and everything on it from a height of 18. Ayurveda and Rejuvenation programs include a few programs combining Ayurveda along with sightseeing and other aspects of tourism in India. the adventure holidays and tourism in India are just for you. The perfect break from the stressful routine .000 feet? Fancy trotting from one palace to another riding a camel or perhaps get a better view of the jungle sitting smart on an elephant? Well if any of them is an affirmative. experience the magical power of Traditional Ayurveda.in a traditional way . The terrain of the sand dunes and long stretches of barren land is ideal for desert safaris. • • • • Cultural Holidays: Ever wondered at the cultural diversity of India? The enticing unity represented by the people of the country who display a wide range of religions. the fun of watching the wildlife at the Corbett National Park gets multiplied when enjoyed riding an elephant. the Ganges is irresistible for the water sports and the scenic beauty of Jammu is picture perfect for the paragliding. An extensive and well . The quest to do the uncommon. where healing is a ritual and nurturing life a tradition. culture. aqua or land adventures and enjoy. their lifestyles and the inseparable culture cannot be done solved in words but can surely be enjoyed with experience. e. the traditional Indian system of medicine holds out to the world the promise of a healthy long life. India is the land of variety and diversity. Golf Tours: If Golf. Ayurveda. is what you are passionate about and you happen to be an avid traveler then the 21 day Golf Holidays package of India being offered is something you cannot refuse to go ahead with. The mysterious ways of the people. the queen of rivers. The photogenic dawn and dusks at the beaches are sure to be repetitive visitor to the shores. Ayurveda and Rejuvenation: India adheres to the age-old philosophy of Ayurveda . Ayurveda recognizes that each individual is different and so treatment too should be customized.

Handicrafts Tours: Festival Tours Museum Tours Railway Tours: Kuuuuu& Chuk Chuk !!! Doesn't the whistle of the luxury train. Junagarh/Veraval. The toy trains are called so because of the narrow gauge railway lines they ride on. During this excursion. Chittaurgarh. Yoga Tours in India: India has been the land of saints and sages who meditated and practiced yoga. . Mandvi/Palitana/ Sarkhej. You may even opt for a voyage onboard the Royal Orient. the mounds. Just catch up with the Golf fever that has caught the entire country in a big way. The rainbow of cities trotted by the royal extravagance of the bygone era include Delhi. the yards of green all make golf better than ever before. The spiritual city of Rishikesh happens to be the Yoga capital of India. The lavish lifestyle. The ride on the train with a 4500 kilometers track chugs through the popular hill stations of the country like Shimal. Add that extra touch of versatility in you by playing the different surfaces in the various golf clubs developed in several cities of India. the tourists are overwhelmed with the beauty at the major stations of Jaipur. Ahmedabad and Jaipur. Jaisalmer. It is a project of the Tourism Corporation of Gujarat Limited along with the Indian Railways. the largest passenger train service in the world seem to invite you. The wondrous miniature of rail engineering that offers the most scenic beauties of the Himalayas from Kalka to Shimla and another from Jal Pai Guri to Darjeeling. and Agra chugging through the culturally colorful states of Rajasthan and Gujarat. The turfs. the climate.• • • • • religiously followed otherwise. the comfort and the style have made the first tourist train of India the most sought after. the décor. The marvelous train that today is a joint effort of the Rajasthan Tourism Development Corporation and the Indian Railways. Be onboard the luxury trains of India. the facilities. Besides the Royal trains. Darjeeling. Ooty/ Udagamandalam or Ootacamund and Matheran. Jodhpur and Bharatpur. the Royal Orient and the Toy Trains are the pride of Indian Railways. Udaipur. The Palace on Wheels lives by its name and is no less than a fort on the swing. Tourists and travelers flock to contemplate and practice Yoga and meditation in the lap of Himalayas. Chittaurgarh. Gir/Ahmedpur. the train offering both style and comfort. the toy trains of India have attracted many a tourists. Somnath/Sasan. the Palace on Wheels. The city hosts the International Yoga Week every year in the month of February attracting several experts and participants.

dealers meet or any other relationship building activity in any destination in India.Along with the corporate incentives tours arrangements can be made for conferences. After all those long hours at work let the corporate employee get the much-deserved break in the form of an incentive. which comprises of delectable fresh fish like pearl spotted fish.Backwater Tours in India: Cruising along the backwaters of Kerala is an ideal way to discover the real Kerala.Marriage. client presentations. The tourists may indulge into tourism activities like boating. There is also a thrilling firework display. romantic leading ladies. there are some organizations which specialize in custom made tours. barramundi. South Indian culinary surprises are served. board meetings. Alappuzha. The placid backwaters that stretch for over fifteen hundred kilometers are covered with swinging palm trees. The various corporate incentive tours that are offered have been planned in a manner to rejuvenate and refresh the employees for the forthcoming assignments. it's the most authentic and unexplored way to explore the beauty of the backwaters. mussels and prawns is finger licking good. ruffians live their dreams of becoming a star. training programs. Apart from these. workshops. specially decorated boat for a delightful moonlight cruise on the backwater of Cochin. some posing as directors. Dream Marriages: Tie the knot with your knight in shining armor in the most royal way. conventions. Rajput Wedding: A traditional Rajput wedding ceremony where the group members participate as 'Baraati' (the bridegroom's family and friends who form the wedding party) and the bridal party. Corporate incentive tours: In today's world incentive travel is one of the most effective marketing and motivational tools especially in the corporate sector. The frequently visited tourist destinations amongst the backwaters in Kerala comprise of Kovalam. fishing and sightseeing while exploring the backwaters of Kerala. Celebrate the biggest and the best occasion of your life . Kottayam and Ernakulam. The tourists are left spell bound by the tranquility of the backwaters while riding the Houseboats. crabs. The Houseboats that float on the backwaters are the improved version of the Kettuvalloms. some as action heroes.in the most beautiful style. seminars. pulsating palaces or the happening hotels and make your dream come . Get married at any of the captivating castles. Bollywood: Guests in garish costumes. The backwater cuisine. All these tours have been designed keeping in mind the requirements of travelers coming from different parts of the world. Some of these tours offered are: Special theme parties: Under these the following options are available Moonlight Boat Cruise on the Backwater of Kerala: Guests are ferried aboard a spacious.

. and similar attractions now represent a significant amount of tourism activity.true. and the continuing trends. heritage parks which being developed from Britain’s industrial wasteland such as Wigan Pier. However Disneyland and Disneyworld in America were the forerunners of this development in tourism marketing. It is due to the recent growth. and they have been well established for decades. which make it area which should be considered separately as a tourism industry. On a smaller scale. as it is an area of the tourism industry which has seen a massive growth in the development of theme parks and other types of artificial tourist destinations in the recent years. The feast to your eyes and ears will be equaled by the sumptuous food that will treat the taste buds at the dream marriage. From champagne bottles and confetti to photographers we can arrange it all for the special you and the very special occasion of your dream marriage. which attracted over half a million tourists in 1991. The setting for the realization of your dream will be splendid and the arrangements will be spectacular for your marriage that will bring smiles on every face and heart! Tourism Destination Management Operators/ Destination This is new category in many senses. At your dream marriage there will be fun and festivity all around backed by the music of your choice and decorations with your favorite flowers. The new EuroDisney theme park in France is an example of a tourism destination operation.

Empowering employees means to give employees. clear to employees and follow up results in a consistent manner (the process and metrics path). functions and departments internal to the firm as internal customers. 4. Internal Customers The image of the company begins with each and every employee and is reflected in his or her attitude about the company. But there has to a limit as to how far this authority can go. why they are important and how performance is measured. Give employees personal freedom and opportunities for earnings. 3. with few rules about behavior (the entrepreneurial spiit path). but also significant personal risk . Offer reward and bonus system to support accomplishments (the reward and celebration path). who come into contact with customers the authority to make decisions and take action in a large number of potential problematic situations. Make everyone's tasks. An emphasis has to be placed on the need to view people. Everything that the service provider does for its customers is first perceived and received by its own personnel. If empowerment is correctly implemented as a part of an internal marketing process then it can . Show respect for the individual achievements of the employees and recognize quality performance (the individual achievement path). The five approaches or paths are as follows to ensure the above are: 1. an internal market for the firm's offerings as well as for its external marketing programs.Chapter4. 5. Empowerment and enabling employees These two concepts are to be understood as not only they motivate the employees but also are important for the effective implementation of internal marketing. Create a collective pride in the mission and values of the firms among employees (the mission and pride path) 2. The employees are a first market. to whom internal services have to be provided in the same customer-oriented manner as to external customers. If employees do not believe in the promises given by external marketing activities then they will not be able or willing to perform as effective part-time marketers and contribute to a good interactive marketing impact. and these limits must be carefully determined.

Empowering employees means: 1. Providing them with information about the performance of the organization 2.have a decisive impact on the satisfaction of employees. Rewarding them based on the organization's performance 3. 3. But empowerment cannot function without simultaneously enabling employees so that they are prepared to take the responsibility that goes with the new authority. Knowledge Support: so that the employees have the skills and the knowledge to analyze situations and make proper decisions. Enabling includes: 1. Enabling means that employees need support to be able to make the independent decisions effectively in the service process. Creating a knowledge base that makes possible for employees to understand and contribute to the performance of the organization and 4. 2. Giving employees the power to make decisions that influence organizational directions an performance. technology and database that provides contact employees with information and other services required for handling situations. systems. Management Support: so that supervisors and managers give information an also take over decision-making when needed but do not interfere unnecessarily with the decision-making authority of employees. . Empowerment does not mean a static relationship but a continuous nurturing of trusting relationships between management and employees. Technical Support: from support staff. If this support is not provided properly then proper conditions for empowered employees do not exist.

This has an impact on overall industry profitability. An unused hotel bed or an empty airplane seat represents an immediate loss of that service as a means of earning profit. restaurant tables. This means that the . Similarly. frequently over a long time scale. Fixed location: Tourism destinations are fixed locations so effort must be concentrated in communicating the facility to the potential consumer.Chapter5. A consumer can conveniently watch a Hollywood movie at the local cinema but has to be persuaded to travel to India to see the Taj Mahal. Unique Characteristics Of The Tourism Industry There are four main characteristics which distinguish the tourism industry from other service providers: Inflexibility: The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on an airplane is fixed so it is not possible to meet sudden upsurges in demand. hotel beds and airplane seats remain empty and unused in periods of low demand. The seasonal nature of tourism activity exacerbates this problem. Perishability: Tourism services are highly perishable. Relatively Large Financial Investment: Every modern tourist establishment and facility requires large investment.

The consumer interacts with a myriad of service people starting from when he books his ticket and throughout the course of his holiday. PEOPLE BASED SERVICES Tourism Services are high contact services. Tourism Services fall under the category of ‘Consumers’. and therefore on the basis of the end user. However. Chapter 6: Classification Of Services ON THE BASIS OF THE END USER The end user for Tourism Services is always the CONSUMER. Therefore it cannot be classified as only services. cuisine. EXPERTISE Tourism Services are mostly professional services. Tourism Services fall under the category of “Goods + Services”. Tourism services are very people-oriented services. tour operators. which is why Tourism Services also differ. caterers. The core product is the destination. The service people include travel agents. hoteliers.level of risk and the rate of return are critically important to tourism management. However these consumers may vary. which is purely intangible. tour . and falls under the category of “Goods + Services”. etc which constitute an important part of any vacation or holiday any consumer might take. SERVICE PRODUCT CONTINUUM As per the Product-Service Continuum. tourism is linked to a number of tangible goods such as souvenirs. as people interact with people at virtually EVERY stage of the way. and the service people are plenty and have high contact with the consumers.

Domestic tourists traveling through the country were 167 million approximately. They might be trained by professional institutes (IATA. the task of formulating a product mix becomes more difficult & challenging.784 (Inbound Tourism).guides. a free bag or bottle of whisky. hotel room.10. ORIENTATION TOWARDS PROFITS All Tourism Services are commercial. Selling a holiday is ‘selling dreams’. IITM. Tourist arrivals in India for the year as on March 2002 were 23. DOMESTIC OR FORIEGN TOURISM As per 1998 figures. Almost all of these people are trained and are professionals. including the destination. airline seat. Chapter 7: How To Market Tourism (The 7 Ps) The Product Mix: Components of a tourism product The tourism product is essentially an intangible thing. etc.70. occasional tangible products such as souvenirs. etc. Thus a tourism product is quite a complex one.) or by the agency/company they are working for (SOTC). and are undertaken with a view to earn profits. because tourism is a multi-segment industry.908 (Outbound Tourism). The way to win the customer’s heart is through the peripheral services provided along with the core product. . etc. The number of Indian citizens traveling abroad was 38. Also.

But while offering the discounts. Thus the direct or indirect patronage of the government is essential to get a positive response. trade discounts etc. These may include discounts for cash payments. seasonal discounts. The tourism professionals are supposed to watch the emerging trends in both the markets. banking. Pricing decisions are influenced by internal and external factors. The marketers need to use the various components of promotion optimally so that they succeed in increasing the number of habitual users. Medicare facilities. lodges. Promotion helps in maximizing the duration of stay. etc. it is not to be forgotten that it may also create image problem since some of the value sensitive tourists may doubt the quality. They have to set prices in line with the quality of services to be made available to the customers. The Price Mix In pricing decisions. Unless these factors are developed in the right fashion.. Its coverage is wide. etc. They are required to think in favour of discounting price. havelis. The various dimensions of tourism promotion are as follows: Advertising: Advertisement helps in furnishing important information to the actual and potential tourists. 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. cottages. The government and private tourist organizations work together to undertake activities such as developing infrastructural facilities such as transportation. The tourist organizations bear the responsibility of informing. There is nothing fixed or fundamental about the tourism product. and also developing and maintain hotels. The Promotion Mix Creation of awareness has a far reaching impact. historical treasures. water. etc. The content factor is within the jurisdiction of the government that undertakes the maintenance. beaches. the marketing professionals would never be successful in making the marketing resources productive. museums. frequency of visit by offering new tourist products in the same country to areas which hitherto have remained untapped or partially tapped. development and conservation of tourist attractions such as parks.Innovation in the tourism industry helps to raise the sensitivity in this regard. the product or the service mix of the tourist organization is important. persuading and sensing the potential tourists in a right fashion. Intangibility can be compensated with the help of visual exposure of .

Eg. Further. provided the bookings are made through them. It helps in projecting the positive image of tourists organizations since the prospects trust on the news items publicized by the media people. Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information which in a true sense is word-of-recommendation. such as advertising publicity. wallets for tickets and forex and covers of passport. first aid sewing kits. projected publicity. There are different groups in publicity. the VIP clients also get fruits and flowers in their rooms. In the tourism industry. 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. A business travel challenge in which the details of expenditure on staff business travel booked through other agents over a 3 months period were submitted by companies to Cook. In the tourism industry it is found that the . such as flight bags. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive. There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-à-vis the emerging trends in the business. specially to calculate expected savings. a travel company offers give-aways to their clients.scenes and events. Money back guarantee to the clients who purchase the product or any tour operator known as trading charter. structural publicity and personal publicity. travel editors. shower caps and shampoo. The publicity programme include regular publicity stories and photographs to the newspapers. contact with magazines on stories etc. Kumarakom in Kerala after Prime Minister A B Vajpayee’s visit. 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. Matching of customers need with a particular holiday known as formal guarantee. The hotels offer a number of facilities like shoe shine clothes. Eg. Thomas Cook offered 3 tier sales promotion based on price and one more novel technique as detailed below: • • • • Cook agreed to match the price of any holiday they sold which was known as price promise. We can project hotel bedrooms. well arranged restaurants and cafeterias. swimming pools etc.

personally-committed sales personnel having an in-built creativity. all of them play a vital role in ensuring that the tourism products satisfy the tourists. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel. It is important to mention that in the tourism industry. such as sales personnel are found responsible for dealing with customers behind the counter. The phrase. No reduction in price would compensate for impolite and indecent travel guide. The marketers or the tourist organizations need to keep their eyes open. The sensitivity of this tool makes it clear that tourist organizations need to concentrate on the quality of services they promise and offer. The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. offices of airways. Place .word-of-mouth promoters play the role of a hidden salesforce. the travel agents. 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. secretaries can’t work efficiently if the telephonic services are not up to the mark. This makes a strong advocacy in favour of recruiting a person considered to be professionally sound.the customer is always right applies specifically to the tourism industry. receptionist. These facts are testimony to the proposition that the travel business is linked with the performance and behaviour of sales personnel or travel staff. The oral representation in conversation bears the efficacy of transforming the motivation into persuasion. the personnel who attend tourists form an essential ingredient of the product. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the personal customers. who instrumentalize the process of selling. Telemarketing: it is a method of selling in which a professionally sound telemarketer expands the business. innovation and imagination. a solvent waiter and a surly or a haughty coach driver. Personal Selling: Personal Selling is based on the personal skill of an individual. The development of travel and tourism has been possible due to well educated and trained sales personnel. 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. The travel and hotel business depend considerably on the personal selling. specially in the eyes of the potential tourists. In tourism. the resort representatives cater to the need of tourists when they reach the destination etc.

tour operators and travel guides lack world class professional excellence. Tourism. It makes the destinations accessible to people from around the world. for example. transportation becomes a major logistical component. Also. the tourism industry depends substantially on management of human resources. There exist. and also offer travelers to book seats themselves through their own booking offices. It depends largely on the channel type. sell tickets through travel agents. Like other industries. and sell seats on flights to tour operators. People We can’t deny the fact that sophisticated technologies have been successful in accelerating the pace of development. a number of intermediaries in the tourism marketing channel. Technologies need due support of human resources who invent. however some deal directly with the consumers and eliminate middlemen. We also agree with this view that new generation of information technologies have simplified the task of decision makers. Transport also plays a major role in the tourism industry. however.Place or distribution management is concerned with two things – availability and accessibility. The travel guides need professional excellence since the projection of a positive image . Researchers in tourism must determine how and where potential customers prefer to buy tourism products and services. in the case of tangible products in tourism such as souvenirs and cuisine. 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. proves an exception where cuisine and souvenirs are goods and ownership is possible for the intermediaries. however. The intangibility feature in the service sector prevents intermediaries from taking possession or ownership of goods. At the same time we also have to accept the fact that the sophisticated technologies can’t deliver goods to the development process if the employees operating and maintaining these technologies are not of world class. Other companies may also utilize more than one method of distribution. Airlines. 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. innovate and develop technologies. Most tour operators sell their services through travel agents.

tact to transform the occasional tourists into habitual ones.1/2 year PostGraduate Diploma in Accommodation Operations.month Certificate course in Hotel and Catering Management. 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. As such there are a lot of Govt. 1.G. The IHMs provide 3-year Diploma in Hotel Management. The Government plays an important role in providing the right kind of people for this industry. good sense of humour. Diploma in Fast Food Operations. . 1-1/2 year Certificate course in Food Production. linguistic skills etc. At present. thorough knowledge of the places. the Ministry of Tourism is running 21 Institutes of Hotel Management (IHMs) and Catering Technology and 14 Food craft Institutes (FCIs). 1-1/2 year PostGraduate Diploma in Dietetics and Hospital Food Science. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. 6. value-orientation and perfection. failing which even the world class services offered by the travel agents are found meaningless. 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. The training courses run by the Institutes are designed to suit the needs of the various target groups. Hence it is imperative that they have to be at their best at all times. House Keeping and Bakery & Confectionery.regarding a destination in particular requires their due cooperation. Reception & Book Keeping. Institutes which offer training for the same. The tour operators also need to manage human resources efficiently. Employee orientation requires due weightage to efficiency generation. 1-1/2-year Post Diploma in Hotel Administration and P. In the management of people. Food & Beverage Service/ Restaurant & Counter service. They need a lot of credentials to fulfill the expectations of the customers. are expected to have a lot of patience. Travel guides especially. 6. and Pvt.month Certificate course in Food & Beverage Services. The FCIs are engaged in providing the craft Diploma in Cookery.

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