Acknowledgement

I take this opportunity to express my gratitude to Prof. Ramnath Subramanian, Mr. Rajesh Talwar, (CEO – Bhakti Vendata Hospital), Mr. Kishore Shrivastava, (Marketing Consultant) for their guidance and support. I would also like to thank all others who were directly or indirectly supportive in completion of the project.

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Preface
From ancient times, India has been looked upon as a place full of mystique. In the olden times travellers like Huen Tsang came a long way with great difficulties just to have a feel of the place. But now in modern times, with supersonic jets, the world has become a smaller place and has been named as a 'global village'. With the destinations becoming so much closer the tourists' are pouring into India from all over the world leading to a fast development of tourism industry and yet it has not grown to its fullest potential. India is a dynamic and mystic tourist destination where something always remains to be explored, discovered and unveiled. India offers every type of tourism ideas like Historical & Heritage Tourism, Adventure Tourism, Nature & Wildlife Tourism, Religious Tourism, Rail Tourism, Cultural Tourism and some new ideas are also in the front like Medical Tourism, Health, Yoga & Rejuvenation (Ayurveda) Tourism, Rural Tourism and Special Interest Tourism and much more. The future opportunities and challenges in store for this industry have attracted me to select this industry for my project. The objective of the project was to identify opportunity and challenges to promote Indian tourism industry in world market and develop a marketing plan to explore this opportunity. For this purpose, project includes studies on World trends in travels and tourism, guidelines for tourism marketing, and for Indian tourism. A marketing plan for Medical tourism is accompanied, in the project which aims at exploring global markets for Indian tourism.

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Tourism – the concept
By tourism society, “Tourism is deemed to include any activity concerned with the temporary short– term movement of people to destinations outside the places where they normally live and work, and their activities during the stay at these destinations.” The definition pulls together three main elements of all travel and tourism products: 1. Visitor activity is concerned only with aspects of life outside normal routines of work and social commitments, and outside the location of those routines. 2. The activity involves travel and, in nearly every case, some form of transportation to the destination. 3. The destination is a focus for a range of activities, and a range of facilities required to support those activities. Before studying other dimensions, we go through concept of tourism. • • • • • Tourism is a temporary and short – term movement of people. Tourism is the totality of relationship. Tourism is an activity involving a complex mixture of material and psychological elements. Tourism is the activity concerned with the utilization of leisure hours. Tourism is a composite industry consisting of various segments.

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Tourist the concept
“Tourists are the voluntary temporary travelers, traveling in the expectations of pleasure from the novelty and change experienced on a relative and non- recurrent round – trip.” Tourists are: • • • • Persons traveling for pleasure, health and domestic reason. Persons arriving in the course of sea cruise. Persons traveling for the business purpose. Persons traveling for convention.

Not to be tourist: • • • • • Persons arriving without a work to take up an occupation. Persons coming from the rural areas to the urban areas. Students in boarding. Persons domiciled in one country and working in adjoining country. Persons passing through a country without stopping.

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Tourism Marketing – The Concept
A clear perception of tourism marketing requires a brief analysis of marketing. We are well aware of the fact that there have been fundamental changes in the traditional concept of marketing which has been influenced by multidimensional changes in the business environment. We consider marketing a human activity directed at satisfying the needs and wants through exchange processes. The American Marketing Association defines marketing as “the performance of business activities that direct the flow of goods and services from producer to consumer or users.” Kotler finds marketing a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Krippendorf says, “Marketing in tourism is to be understood as the systematic Co-ordinated execution of business policy by tourist undertakings whether private or state, owned at local, regional, national and international levels to achieve the optional satisfaction of the needs of identifiable consumer groups and in doing so achieves an appropriate return.” Burkart and Medilick opine “Tourism marketing activities are systematic and coordinated efforts extended by National Tourist Organaisation and/or tourist Enterprises at international. National and local levels to optimize the satisfaction of tourist groups and individuals in view of sustained tourism growth.”

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Tourism marketing comprises fact findings. it is device to transform the potential tourist into the actual tourist. expand market and increase the market share. communication to inform and promote (promotion). coordination. • • • Tourism marketing is an integral effort to satisfy tourist and more so. developing professionally sound personnel (people). ensuring and facilitating sales. selection of marketing planning (distribution). data gathering.In the view of the above. control and evaluation ( marketing plnning And auditing). analyzing ( marketing research). Tourism marketing is a managerial process to promote business. the following points emerge regarding tourism marketing: • • Tourism marketing is a process of creating a product or providing a service. Tourism marketing is the safest way to generate demand. 6 .

desire and therefore. They have willingness but the marketing resources have not been used optimally for influencing their impulse. professionals and intellects. 7 . executives and technocrats. Non-users: Persons not interested in using the services are known as non – users. Occasional Users: users availing the services occasionally but not forming a habit to travel are known as occasional users. kids and teens. rural and urban. Potential users: Also called as prospects or the prospective users. This makes it essential that professionals study and understand their changing behavioral profile. Classification of different categories would help the tourism professionals in studying and identifying the level of their expectations vis-a vis their behavioural profile. It is quite natural that the behavioural profile of all the users can’t be identical. white collar and blue collar personnel. It is right to mention that the men and women. literate and illiterate are the different categories of users availing the multidimensional services of tourist organisations. Actual Users: persons already using the services generated by the tourist organisation are known as actual users.Users of Tourism Services We find different categories of users availing the services of tourist organizations. the level of income or even the availability of leisure hour is not to influence them. Thry bear the efficacy and the marketing professionals are supposed to capitalize on their potentials by using creative promotional measures. They lack willingness. youth and grey. Habitual users: users forming a habit and availing the services regularly are known as the habitual users. poor and rich.

There are number of factors influencing the behavioral profile. the usres have become more discriminating in their using habits and therefore we find their needs for different services. we realize the significance of in depth study of the behavioural profile of different categories of the users. health factors. advances in communication technology or so. physical 2. perceptions. occupation.g. products and brands changing constantly. such as race.Behavioural Profile Of Users For the successful and cost-effective execution of the marketing strategies or for translating the strategies into meaningful purposes. level of incomes. religion. etc) Sports and activities travel (participation or observation) In fact. This makes it essential that the marketers analyse their behavioural profile and come to know the levels of their expectations. In the recent years. The tourist organisations need to understand their behavioural profile which simplifies their task of creating and stimulating the demand. we can summarise allm of these activities under five basic needs: 1. expectations which are the result of environmental influences. life cycle stage. Users have values. It is in this context that we find it important to asses the behavioural pattern and users’ characteristics. ag. cultural 3. shopping) Travel for educational purpose (study tours. Classifying travel Motivations Motivation for travel and tourism can be categorized as follows: • • • • • • • • Holiday travel Business travel Health travel Visiting friends and relatives Religious travel Travel for economic benefits (e. life styles. leisure habits. nationality. preferences. ethnicity. interpersonal 8 .

and travel is not subject to seasonal fluctuations. that is. usually only thought of in terms of economic need. since it is by nature less ‘discretionary’. 9 . since many tourists find group tours an excellent way to make new friends or seek romance. since the company rather than the individual will be footing the bills. so that they need regular scheduled flights available and a fast and convenient reservations service. may be required for the survival of the organisation in the face of overseas competition. Many people in stressful occupations also need a break from the mental or physical strain of their work to avoid a breakdown in health. status and prestige 5.but we must also recognize that quite a lot of business travel is in fact taken for prestige purpose – the requirement for first class travel and top – price hotels. or the need to travel to warm. for instance – while conference travel may be ascribed to competence needs. dry climates to recover from illnesses such as asthma and tuberculosis. it will be useful to see how these needs are met by tourism facilities or destinations. Travel decision often have to be taken at short notice. At a basic physiological level. the process of achieving or fulfilling one’s potential. Although there will be some overlap of motives between these categories. less a matter of personal choice. commercial. These are then survival-related needs. such travel is les price sensitive. and how they relate to levels of needs in Maslow’s hierarchy. As a result. Even business travel. The demand for business travel is quite different from that for leisure travel. which are generally taken at mid-weeks rather than at weekends. travel can sometimes be essential for health as in the case of treatment overseas for complex surgery. Business people tend to make frequent short – duration trips.4. Business people travel because of demands of their business. Our social needs for loving and belonging are often met through package holiday programmes. and this “cathartic” travel is no less necessary for survival. Cultural travel provides opportunities for self – actualization.

We experience the general drive to get away from our present environment.These examples will be sufficient to show that travel satisfies many physical. to escape from routine and seek new and different experiences. 10 . They will also have shown us that travel motivation can be both general and specific. while at the same time we demonstrate individual motivations to see specific activities while on holiday. social and psychological needs.

Moreover when unplanned and haphazard developments pave avenues for the atmospheric pollution. this dimension of management needs a transcendental priority. The products have some salient features. To the different members of the tourism industry. The three basic elements of the products are attraction of the destination.. the products are highly perishable. to the museum.. e. The products can’t be transported to the users and in no case the providers can store or preserve the products. “ In many areas of the world.segment industry. the tourism products are different.Product Planning And Development The tourism is a multi. The development of tourism is the development of the process of social industrialization. The essence of marketing is bringing together the mix of products. In a true sense. it is essential that the developing and the less developed countries assign an overriding priority to the planned development process. the improvement to standards for the local population is probably a condition of successful tourism development. art gallery or archaeological site. The tourism products are an amalgam of different tangible and intangible elements. In a competitive market where the leading tourism generating countries of the globe have been successful in speeding up the process of socioeconomic transformation through social industrialization. This can’t be entirely denied that in the long run.g. The development of a new 11 .g. a heterogeneous group of people who are required to come to the spot. The demand is highly flexible and the products need world class superstructure and infrastructure. tourism development has produced great disparities in the standards of amenities provided for the visitor and for the local population. it is guest – nights. the product is the number of visits. The World Bank warns. it is a complete experience which complicates the task of careful planning and optimal development. facilities at the destination and accessibility to the destination. to the airline. used for pleasure or speeding up the learning cycle and the users. to the hotel industry. it is the seats flown and the passengers miles that result. e. possessing the efficacy of satisfying the users..

The main target to such a plan would be to arrive at an optimum harmonization of the inter – relations between the two places of market while avoiding the creation of serious economic. A plan for tourism can only serve its desired goal.” Thus it is important that the tourism planning whether at national or at regional level must be regarded as an integral part of country’s overall economic and social planning.resort by the provision of infrastructure costing perhaps millions of dollars has a great impact on land values in the area affected. social and territorial imbalances. The key steps in the planning are assessment of tourist demand and paving ways for an optimal supply. The tourist organisations and the professionals find it convenient ot have a fair blending of social and commercial considerations. Thus in addition to other benefits. the tourism planning makes an assault on imbalances. 12 .

The modern marketing theory prefers the formulation of marketing policies and strategies for each market segment which an organisation plans to solicit. It is against this background that we need to study market segmentation for tourism services. This necessitates an indepth study of like style for making segmentation proactive. It is natural that different segments react in a different way. the decision making of both of them are to be different. The emerging trends in the level of income. we spend more. strategy and tact vary from segment to segment which in a natural way necessitates a change in the strategic decisions. A market is not only an aggregate demand for a product but the sum of demands of different market segments. This is supported by the logic that if we earn more. it is pertinent that the marketers or the tourist professionals are well aware of the different market segments. the availability of leisure hour of course influence the process but the main thing is the lifestyles. Thogh there are a number of bases for segmentation. we find lifestyles an important base since the traveling decisions are fantastically influenced by the changing lifestyles. it is essential that the tourist organisation select a suitable base for segmentating the market. At the outset. The living styles of Americans and Indians can’t be identical. Segmentation makes possible tailoring of products and marketing programmes uniquely segment for each sub-segment. The selection of base has a for reaching ipact on studing the target market.Market Segmentation For Tourism The behavioural scientist feel that appeal. 13 . The Indians avoid to travel albeit we find them earning more or sufficient leisure time or holidays in their constituting a place of outstanding significance. We prefer to utilize our leisure time for gaining pleasure or for enriching the knowledge bank. The Americans prefer to travel and therefore they assign due weightage to the traveling decisions while scheduling or ordering their engagements. For getting a positive response in the market.

The different categories are. The bases help professionals in studying and understanding the changing behavioral profile of users. purpose base. the mass market. The users belong to the conservative group in which we find skilled and semi-skilled workers. the popular market and the individual holiday market. personality. class and religion. sex base. The demand base classifies markets into primary tourism market. 14 . The socio-economic base makes classification like rich. demand base. The holiday market is classified in terms of demand. secondary tourism and opportunity tourism. a balanced development of marketing resources.The segmentation benefits tourist organisations in different ways. The popular market involves smaller groups going on inclusive or semi-inclusive tours. age base or so. literate and illiterate. socio economic base. rural. The geography base includes lifestyles. blue – collar employees as the potential users. The mass market involves largest number of vacationists who generally travel in long groups. common interest tourism market and conference and convention. The age – base classifies markets for kids. poor. pensioners and retired people. true gauging of the level of expectations. Another base is purpose in which we find business travel market. sex. The individual holiday market involves “social-group –A” like corporate chairman and senior executives. teens. psychographic and socio – economic aspects can’t be underestimated to have a clear picture of the tourism users. The demography base covers age. We find an apparent change in the behavioral profile of different categories in the holiday base. cultural tourism market. youths. formulation of creative strategies for getting a positive response make it clear that the tourist organisations assign due weightage to segments. urban. An optimal marketing plan. geographical base. psychological base. demographic. product and knowledge. demography base. They are supposed to select a suitable base for segmentation out of numerous bases like holiday base. The users are generally class one and lass two groups. motives. The holiday base focuses our attention on the fact that long-distance tours requirwe availabity of more leisure hours. In the figure (Anx ) the market segmentation bases make it clear that geographic. young married and old people market. occupation. They prefer all inclusive tours.

They know about the changing needs and requirements of different marketing resources in tune with the changing levels of expectations make the way for the stimulation of demand and simplify the task or marketers.The aforesaid small segments simplify the task of tourist professionals. It is in this context that we need to segment the market for the different allied industries helping the tourism industry in many ways. 15 .

Of late to manage a business is to manage the future. Such a scientific project planning in addition to simplify the process of research also makes the result effective. In the age of information explosion. The sophistication in the process of communication technologies has paved avenues for the development of a technology driven MIS. Thus it is essential that the tourist organisations take support of technology-driven MIS which would make the marketing decisions innovative. we find different categories of users and an amalgam a of different products which make it a multi-segment industry. The MIS would help the tourist organisation in many ways. travel agents would be made prouctive. The designing of package tour.ordinated. planning the required information to accomplish the organizational goals. such as the formulation of scientific and intelligent plan would be possible which would make it easier to balance the demand and supply position. There are different steps of project planning such as setting the research objectives. This in a natural way complicates the task of a researcher. It is against this background that the tourist organisations assign due weightage to the MIS. it is essential to manage the information. The emerging trends in the market can be identified and the marketing decisions can be made creative. In the management of information. tour operators. a change in the pricing strategy or using it as a motivational tool. problemsolving and decision making. transport operators. sampling the procedures and selecting the method for analyzing the data. The co. employing the research design. it is pertinent that an organisation develops and institutes MIS to have an easy access to information needed for planning. identifying the sources to be tapped in seeking the information. we find project planning playing an important role. In the tourism industry. systematic continuous information gathering are the important purposes of manging the information related to the marketing activities. A researcher while 16 . the management of tourist organisations.Marketing Information System For Tourism Knowledge is supposed to be the power. innovation in the promotional measures.

promotion an competition. It is felt that the gap between the providers and the users has proved to be a major constraint in making the marketing decisions creative. The following questions need an appropriate answer: • • • • • • • • • • • Who are the users and where do they live? Who are the potential users and where do they live? What are their likes and dislikes? What are their travel preferences and interests? What do they prefer to buy while traveling? Where do they prefer to stay? Where do they prefer to take their foods and drinks? What are their transportation preferences? What are their entertainment preferences? What are the strategies of leading competitors? What type of marketing strategy would be suitable in the existing market? We can’t deny the fact that if there is one thing certain in the present world. users. We can’t check the flow of change.collecting data and helping system analysts in managing the information is supposed to design the questionnaire consisting of tourist sites. policies and strategies to make possible necessary changes as and when the circumstances necessitate so. taste preferences or so. A well designed. The multi. An easy victory on the time-gap is the result of a well developed MIS. 17 . Of late almost all the leading tourist generating countries of the world have been found promoting research for innovating the process of making decisions which has been found making ways for value engineering. it is pertinent that the communication gap is bridged over. It is against this background that the MIS in general and the marketing research in particular has been found drawing due attention of the tourist organizations. technology-driven. In an age of information explosion. living habits. This necessitates dynamism in our plans. it is change. supported by world class professionals MIS would be beneficial to all the allied industries contributing substantially to the development of tourism industry. products.dimensional changes in the environmental conditions influence our lifestyles.

a deeper product line is found a must. It is essential that the product offered to a target market must satisfy the users. touch or sample a package tour. Thus the formulation of a sound product mix covers a wide range of activities like designing a package tour. More so when we find it a multi-segment industry.” The Product Mix Like the manufactured product. This is due to the fact that needs. The challenge for the marketers it to transform the dreams into the realities. The tourism product is a non-material intangible thing. Thus the formulation of a sound product strategy focuses on the formulation of a sound product mix that makes possible designing of a profitable product portfolio by including and eliminating the core and peripheral services in the face of results received from the product portfolio. the task of formulating a sound product mix for the tourist organisations is found a bit difficult and challenging. branding. credit delivery services. “The mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market. a challenging task since the marketing professionals are supposed to blend the core and peripheral services optimally. The framing of product mix. preferences of different categories of users can’t be identical. or so. We accept the fact that selling holiday is selling dreams. the potential tourists can’t feel. taste. Every product is aimed at some market and its non-marketing success depends essentially on its ‘fit’ with the market. The tourism marketers are required to be captive to deepen the product line so that the products match to the 18 . This makes it essential that the tourist professional must continually strive for improving the effectiveness and increasing the profitability. In the tourism industry.Formulation of Marketing Mix For the Tourist Organisation The marketing mix as defined by Kotler. expectations.

This makes it essential that the tourist organiations while manging the different services are careful to the emerging trends. Since all the tourists need the same core services. accommodation. restaurant. The extent to which the marketers are found successful in deepening and innovating the product line have a telling impact on the net gain or satisfaction. The product is used just when it is offered and therefore. This makes the product highly perishable and makes it essential that the tourist professionals 19 . This would help them in many ways. The success of tourism business depends considerably upon the extent to which the marketers develop and make available the services. shopping. transportation. Innovation in the tourism product helps raising the sensitivity. The users of the services look forward to quality product. the multi – dimensional services included in the mix are attraction. the business is lost. if the seats in hotels. The tourist belong to varied cultural patterns. the chance is lost. If the tourist don’t visit a particular place. 1. Salient Features of Tourism Product For making the marketing decisions effective. the business is lost. recreation. the width of the product is almost fixed. There is nothing fixed and fundamental about the tourism product. it is pertinent that the tourist professionals are aware of the salient features of the tourism product. if it remains unused. aircrafts remain vacant. different socio-economic strata or so. needs and requirements. divergent desires. While formulating the product mix for the tourist organisations. In the figure (Anx )we find the product mix for the tourism industry. It is essential that the tourism marketers are captive to deepen the product line. Tourism Product is highly Perishable: perishability is an important factor that influence the decision making behavior of the tourist professionals.expectations. it is pertinent that the tourist organisations are familiar with the strategies of leading tourist organisations and promote innovation to the extent it is possible.

Efficient transportation facilities. 3. We also find the services instrumental in the knowledge bank of tourist or the crazy persons use the services to taste the enriching flavour of adventure. Thus we find infrastructural facilities essential to improve the quality of services. 20 . By visiting tourist resorts. The users first use and then come to know about the quality. The Tourism Product is a service Product: we find services the only product used and sold in the tourism industry. sophisticated communication services are some of the key infrastructural facilities. transportation services are found non-existent. 6. but the tourism industry can’t exist if hotels. The levels of judgment and knowledge possessed by the individuals and related to tourism reflect on the satisfaction derived by the tourists after visiting a place. beaches.make the best possible efforts to promote the services in such a fashion that opportunities never remain untapped. it is pertinent that the users visit the place physically. The services are for pleasure: It is right to mention that the tourism services are used by the tourists to enjoy. Adequate infrastructural facilities for the tourism product: No doubt that almost all the industries need infrastructural support. In this context. hygienic hotel accommodation. sites. Intangibility Complicates the task of marketers: we are well aware of the fact that tourism is a multi-segment industry in which the transportation and accommodation services constitute a place of outstanding significance. This necessitates setting of product features in a right way. Users are supposed to visit the centre: For availing the services of the tourism industry. adding attractions to the tourism services. This makes it essential that the tourist professionals assign due weightage to creative marketing strategies which are found proactive. the marketers need to be high performers. 4. This helps them in capitalizing on the opportunities optimally. they get pleasure. 2. imaginative and so. spots. personally – committed. The tourist professionals find it difficult to persuade the users by displaying the seats in the aircraft and bedrooms in hotels. 5. This makes it significant that the tourist organisations make the centres attractive by adding additional attractions. The users are supposed to come all the way to the spot.

the security arrangement should be tight to protect the passengers and their valuables. the tour operators. professions or so. To be more specific for promoting world tourism or attracting the foreign tourists. income groups. It is essential that destination or the tourist sites are easily accessible. it is pertinent that the different components of product are managed in a right fashion. The airport should be local and convenient. This makes it essential that the marketers are familiar with the different groups of people sing the services. The airport should be clean and vehicles should be available so that tourist don’t face any trouble. These facilities at the destination would add attractions. Designing a Package Tour In the process of formulating a sound product strategy. the entertainment facilities at the site should be of quality the site should be safe to walk about. the airports are required to be managed carefully. Management Of Airports: While managing the tourism product. age groups. It should not be congested but it should be specious. This necessitates safe.7. the local people should be friendly. genders. The aesthetic management occupies a place of significance in the very context. The site should be clean. The designing of a package tour occupies a place of outstanding significance. there are a number of factors to be given due attention. This gravitates our attention on the offering of a package holiday product which necessitates management of the following factors. For the profitable marketing of tourism services. fast and reliable transportation facilities hither and thither the tourist sites. In addition. 21 . Destination: the development of destinations or tourist sites has a reaching impact on attracting the tourists. the beaches should be sandy. the travel guides and others should have competence of speaking English and other regional languages. sections. it is essential that the flying time is made proportionate. sun-shine should be certain. the shopping facilities should be duty free. The arrangement for car parking should be safe and adequate. Besides. The users are a Heterogeneous group of people: It is important to mention that the tourism users come from different regions.

22 . amenities and facilities depend upon the grade of hotels still it is essential that hotels offer the promised services to the users. it is essential that we are all careful to the hotel accommodation facilities. The hotel personnel should be trustworthy and competent enough to speak English and other regional languages. it is significant that the stations are well managed. Free transfer to airport and free insurance facilities induce tourists. good and polite. It is pertinent that hotels are easily accessible to the tourist sites or beaches or shops. friendly. accessible and competent. The incentives need due weightage. They are supposed to be friendly. Though the standard of services. The sophisticated modern aircrafts of new generation should be included in the fleet to attract the tourists. The price should reflect good value for money. Resort Representatives: Regarding representatives of resort. Tour Operators: The tour operators should be reliable where the guaranteed services are made available to the guests without making any distortion.Airlines: The flights should maintain the time schedule otherwise a dislocation may invite multi-faceted problems. Road And Rail Transportation: For the tourists preferring to travel by buses of railways. The services should be reliable. The management of facilities at the hotels need due care. not only to the tourists but even to the airport authorities. they should be knowledgeable. friendly and conveniently available. Hotels: For managing the hotels services. The safety record should also be upto the mark to remove the fear psychosis or psycho – fobia. They should also provide extra services to the tourists. Tour Agents: The tour agents should be competent.

3. It should also be recognized that much communication about products actually takes place by word of mouth recommendation.Miscellaneous: In addition. By engaging in sales promotion activities. If the tourists have companionable fellow travelers. By advertising the product through a selected medium such as television or the press. yet it is most highly effective of all communication modes. such as inviting travel writers to experience the product. of course. an account of a bad experience relayed by word of mouth has a very strong negative influence on purchase. 4. the journey would ofcourse remain memorable. The converse is also true. either behind the counter. 2. in the hope that they will review it favorably in their papers. The benefits of a satisfied customer suggesting your product to another potential customer cannot be over emphasized. in 23 .minded. Promotion mix The marketing manager has four distinct ways of communicating the promotional message to the public: 1. And human nature being what it is. and will be judged as objective in the assessment. or calling on clients as sales representatives. such as window display or exhibitions. research shows us that consumers tell ten times as many people about a bad experience as they do about a good one! Recognition of the importance of influencing those who can in turn influence others to buy new products has led to the concept of the two step flow of communication. over the phone. By generating publicity about the product through public relation activities. This ‘hidden sales force’ costs a company nothing. since the channel has credibility in the eyes of the potential customer. By using staff to engage in personal selling. The main thing is to make tour pleasant and memorable. the fellow travelers should be like.

There are no right or wrong answers about such choices. A brochure can spell out in cold print what kind of beach the resort offers. although resorts are often thought of as homogeneous and interchangeable. This will often involve direct selling. or the facilities the hotel provides. while other companies will use a combination of all four. companies will choose to employ only one of these elements in the mix. Factors influencing the choice of the mix What determines the mix of these four promotional tools in the marketing plan? In some cases. Communications aimed at the trade employ what is known as a ‘push strategy’. since a favourable report on television or in the press will have a huge impact on sales. the quality of the food served in the hotel. or sales promotion techniques such as the payment of bonuses for achieved targets. although guidelines based on the following criteria can be helpful. A travel company with a limited promotional budget might be the best advised to concentrate its expenditure on influencing travel writers. Opinion leaders include representatives of the mass media as well as those most likely to initially purchase new products. the aim of the company is to encourage dealers to stock the product. 1. and to push it to their customers. supported by trading advertising. where the salesperson can help to match the customers needs to the products on offer to ensure customer satisfaction. what kind of fellow holidaymakers the client will encounter in the resort can properly be answered only in a direct face-to-face sales situation.which messages are directed by the company to the opinion leaders in the society. The nature of product : It will be difficult to sell a complex or technical product without personal sales advice. 2. A ‘pull strategy’. a customer actually needs quite a sophisticated level of knowledge to make a decision about what resort or hotel to choose. Questions such as the ambience of the resort. Many in the holiday trade would argue that. rather than to the general public. on the other 24 . by providing study visits to view their products at first hand. The target at which the communication is aimed: A decision will be made on the mix of communications directed to the consumer and to the trade. that is. but more subjective issues are difficult to put across in print.

Later. usually carried by mass media advertising. as competition for the new product increases. the task will be to remind clients of the product’s existence. This is achieved by a mix of ‘reminder’ advertising (perhaps little more than constant repetition of the brand name) and point of sales display material. depending upon the relative strengths and weaknesses of the company in different areas. where both the message conveyed and the channels used to teach the market may be quite different to those in the home country. to let as many people know what it is you have to sell.hand. a company will be under pressure to employ many of the same promotion techniques as its major competitors. Here. the task will switch to that of persuading the public that your product is the best of those available. the task will switch to that of persuading the public that your product increases. airtours or First Choice Holiday to concentrate on selling smaller companies. The situation in which the company finds itself in marketplace: In a highly competitive environment. calling for greater emphasis on sales promotion. is designed to generate consumer demand for the product. because of the sheer popularity of the biggest companies. and encourage them to think of their brand first when shopping. and the product’s benefits. This means informative messages. pulling customers into the shops and forcing retailers to stock the product through the sheer level of demand. As the product becomes well established and sales have peaked. This is particularly the case where a company is also selling its products abroad. These tactics will be discussed more fully in subsequent chapters. with perhaps some sales promotion support. The stage in the life cycle in which the product is to be found: The communication task for a new product is to make customers aware of its existence. 3. 25 . This may require reional adjustment of the communication mix. 4. No intelligent retail travel agent can afford to ignore the products of major tour operators such as Thomson. the emphasis will be on extensive national advertising. with some sales support. to ensure that its products are seen by the same consumers. which would mean turning business away.

at the expense of profit levels.5. The company’s budget for its promotional strategy: This is the most important factor that the company must determine. include a contingency to allow for adhoc activity that exploits unforeseen opportunities as they arise. of corse. This budget can. as well as ensuring sufficient funds for a planned programme of activity. encouraging consumers both to shop around for the best bargains and to book later. causing consumers to become conscious of price rather than value. The impression is gathering strength within the travel industry that price is sole criterion of importance to the consumer. however. although this may have had as much to do with the publicity that resulted from the price wars between operators. even had discounting not been introduced. It is likely that increasing disposable income and other favourable factors such as exchange rates would have led to substantial increases in the number of package tours sold during the 1980’s. or that other elements are relatively insignificant. and “futures” forecasters such as the Henley Centre are suggesting that as discretionary income rises. While it is true that brand images (with a handful of notable exceptions) have not played a big role in tourism marketing up until the present. this is not to say that symbolic values in travel products are any less important than in other industries. Price’s role in the tourism Pricing decision must be determined in relationship in relationship with all the other elements of the marketing mix. The major tour operators in particular have used low price as a means of increasing their market shares. travel companies have chosen to ignore the creation of added value in their marketing plans. and have concentrated exclusively on the promotion of price. 26 . Over – optimistic sales projections led to heavy discounts to “dump” Unsold seats through late bookings. All too often. There can be little doubt that third policy was highly successful during the 1980’s . the symbolic and emotional values attached to brand names will increase.

4. we explored some of the factors affecting price decisions over which the company will have very little control. even were the market able to bear such increases. This did not prove to be the case for the first half of the decade: profit margins for many travel companies – particularly tour operators – remained comparatively poor. Chief of these are: 1. 3. often on the back of price competitiveness. 27 . The economic health of the country (or region). Other influences on price Earlier. However. The elasticity of demand for travel and tourism products. It is notable that at the time of the depression in the 1970s.The 1990’s. however. Levels of competition faced by individual companies and substitutability between competing products. It would also be short – sighted of companies to attempt to introduce substantial price increases at a time when the political climate favours price restraint. the slump in the South East proved to be severs. and consequently travel bookings from the former areas were less affected. At the same time. apparently apparently presented a very different scenario. unemployment was less of a problem in London and the South East of England than in the North and Midlands. A company concerned about its public image will wish to reassure its public that it is in a position to do so without challenge from the Monopolies and Mergers Commission. There will also be ethical considerations to be taken into account. The nature of the target market. which will determine what kind of holiday or other travel products they will buy and at what price. 2. while the situation in the North remained relatively unchanged. with lower volumes but higher prices the stated goal of most companies. at the beginning of the 1990s. the aggressive competition for market share has pushed the overall market size higher.

The services are generated by both the publics as well as private sector. The services are supposed to be standardized where the middlemen make it sure that the promised services would be made available to the users without making any distortion. The middlemen are the tour operators and the transport operators who buy services like hotel rooms. The stimulation of demand requires professional excellence and the travel agents are supposed to have world class excellence to manage things to the expectations of users. railways. The system is opposed by a number of experts due to high cost of operation. since the providers can maintain the quality. The tour operators are also called the producers of a new product. We find a number of advantages of this system. such as the airlines selling directly to users through its own offices and reservation counters. Of course. the producers succeed in raising the influx of tourists. seats in aircrafts. we find possibilities of distortion at different points by the different service generating organisations but all of them need to bridge over the gap. 28 . The are the link and if link is strong. In figure ANx we find the distribution channel for the tourism industry which focuses on the different middlemen engaged in the process of distributing the services.The Place Mix The term chain of distribution denotes the method through which the services reach to the destination. The travel agents buy the services at the request of their clients and provide a convenient network of sales outlet catering to the needs of a local catchment area. One-stage system: the one-tier or one-stage system focuses on the direct selling of services by the providers to the ulimate users. arrange charted flights and sell the same either to the travel agents(retailers) or even directly to the tourists.

we find involvement of middlemen between the providers and users. he is also referred to as a travel agent. Three – stage system: The three-stage or three-tier system involves two middlemen. a retail travel agent and a wholesaler or a tour operator. conferences. etc. Known as Speciality Chancellor he is found instrumental in the development of tour packages. in addition.Two-stage system: In the two-tier system or two-stage system. 29 .i.e. Tour operators: a tour operator is one who buys the individual elements in the travel product on his own account and combines them in such a way that he is selling a package of travel. A tour operator bears the responsibility of delivering the services. He creates own package by buying or reserving necessary supply elements and often retails through travel agents. In common parlance. the services cost incurred on travel agent is found very nominal to the usera as he/she receives a commission from the principal. It is against this background that different providers of the services need to be careful while appointing the middlemen. the tour to his clients. conventions. He offers a number of packages known as tour programme. their own offices and by direct mail via booking form in brochure or by direct enquiries from consumers. hotel accommodation and transportation facilities. Some of us also call tour operators as producers of a new product but it is more appropriate to describe them as middlemen. The price of advantage is an additional advantage since a travel agent gets higher prices in the case of group tours. Four – stage system: The four stage system is similar to the three-stage system but it has an additional middleman. The positive effects of the system are that a traveler while receiving professional services can also buy other products like airline ticket. They are like a wholesaler. he/she gets a single bill for all the services. An additional advantage of this system is that the wholesaler makes bulk purchase of the products for which he/she is paid adequate discount. Besides. Travel agents. The aforesaid channels of distribution of the tourism services make available services to the ultimate users and therefore these are the different points where we also expect a distortion quality.

the channel can’t concentrate only on the profitability element. The aforesaid facts make it clear that the tourist organisations are required to make the channel decisions proactive so that tourists get the promised-services without any distortion. e. In the channel decisions. i. airlines can’t work efficiently failing the co-operation of tour operators and the travel agents. tour oprator a shipping company. airline. The chnnel involving the minimum possible costs but securing high level of satisfaction to the tourist may be effective. A travel agent is one who acts on behalf of a principal. This draws our attention on the characteristics of the product to determine the length of the channel. such as hotel company. we expect a considerable increase in business. the middlemen play a commanding role because the products are of perishable nature. The hotels. A travel agency is also calld a manufacturer of tourist product. an inclusive package tour. travel agencies are the main institions helping the making of productive distribution decisions.e. the marketing institutuoions play a decisive role. To be more specific in the tourism industry. The market factors also occupy a place of importance in the distribution process. it is pertinent that we design a profitable channel and assign due weightage to cost and satisfaction. If the middlemen act well. perform well and behave well. From the standpoint of producers. We agree with this view that product innovation in the distribution process plays an important role. The tourist organisatons. 30 . i. To put it another way. Of late a majority of the travel agents conduct regular package tour to suit the needs of a group.Travel Agent: the travel industry is found to be an uncoordinated people trying to achieve a coordinated result. the original provider of the tourism services. Travel agents from the retail sector of the distribution chain. tour operators.

the expanding ability for discretionary expenditure on nonessential items. in more recent times.World Travel and Tourism Today This chapter examines the global dimensions And patterns of. ‘essential’ consumer goods – in other words. education.food. Freedom from administrative restraints on international travel. Freedoms within international currency markets. measured against these basic criteria. They are: • • Growth in real income. in order to provide a framework within which to consider the likely future of this global industry. Growth and Magnitudes Today’s massive tourism industry has been driven by a number of factors – and these are factors whose future directions need to be considered. It can be immediately seen that. Expansion of fast. and recent trends in. housing. coupled with wide to provide transport. much of today’s world fares very badly. health and. The advance in personal wealth as expressed in the ability of individuals to generate resources beyond those to pay for life’s basic needs. travel and tourism. Such a comparison reveals two important facts. efficient and widely affordable public transport. In a word. free societies. tourism depends upon economic development and open. Peace amongst nations. • • • • • Increase in leisure time. 31 .

both opportunities and trials will abound. The World Of Today and Tomorrow: The Global View During the past decade. even as it struggled to cope with difficult challenges. widespread affluence. As technology knits the world into one electronic marketplace. the global population will continue to grow and change.privileged can reasonably hope to attain access to these elements during the next century. business travel will not decline. low inflation and low unemployment will be the norm. In a high.tech world. for all practical purpose. and as a consequence. executives increasingly need 32 . science and technology will tighten their hold on business and society. In the years ahead. for so long as they last. low interest rates. Thus the single largest force for change in the 20 th century can only grow more powerful in the 21st. the majority of the world’s population has yet to attain what we in the industrialized world would regard as a minimum level of supply of these elements. Technology dominates the economy and society Discovery grows exponentially. Worldwide international arrivals are growing from 66o million in 1999 to an estimated 700 million in 2000. Global trade will continue to grow rapidly for atleast the next 20 years. and the world will knit itself ever more tightly into a single market. the capacity for demand growth in national and international tourism is. As a result. 1 billion by 2010 and 1. but will grow rapidly. Improving balance of trade means more business for European and Asian tourist destinations. if the world’s under. as each new finding today opens the way to many more tomorrow. Increasing affluence in the developed country In the developed world for atleast the next five years. This is a taste of things to come. Second. unlimited. the tourism and hospitality industry flourished.First. Low Asian currency values will continue to promote travel to the Far East.6 billion by 2020.

Time is becoming the World’s most precious commodity Multiple. Resorts. The increasing dominance of technology in our daily lives also promotes this trend.COM’ will have major effects in the future 33 .high quality. So will air charter services and other transportation providers. Rain forests.the ‘high – touch’ reassurance of personal relationships with their colleagues. shorter vacations spread throughout the year will continue to replace the traditional two – week vacation. ‘Ecotourism’ will continue to be one of the fastest growing areas of the tourism industry. and constant pampering of customers – all done at a price that will not make cosumers feel guilty.luxurious accommodations. Concerns for environmental issues continues to grow Demands for still more environmental controls are inevitable. Two – income couples increasingly take several short. Expect the use of ‘smart cards’ to provide detailed customer information for use in more efficient target marketing. Demand for luxurious ‘weekend getaways’ will grow rapidly. Cashless credit/ debit systems of payment will continue to proliferate. authencity and convenience. and other unpolluted regions provide a unique and necessary chance to escape from keyboards and cell phones. the ocean. especially in cultural centers and at destinations nearest large cities. wilderness areas. Values and lifestyles are changing The trend is toward ultra. conference centres and other destinations are finding it increasingly easy to market themselves directly to consumers. relatively luxurious weekend getaways rather than a single longer vacation. especially in relative pristine regions. Generation X and ‘. The internet changes the way consumers purchase goods and services. rather than relying on intermediaries. fresh meals that seem like labours of love.

Brands credibly Service. E.COM will be major customer for tourism and hospitality services in the future and the industry will have to learn to market positioned as ‘affordable luxury’ will prosper. As customers grow more open to new experiences. unique facilities and attractions. cuisines offer a growing opportunity for hotels and tourist destinations to distinguish themselves from the competition. location Competitive pressures are making it ever more difficult to distinguish one hotel or chain from the rest.Generation X and . this requires a light hand. to them.g. Ayurveda treatment package provided by Taj hotel. The alternative is for hotels to become destinations in themselves. service. with strong emphasis on information and quality. especially at the level of the global chain. service replaces Location. Unique locations or facilities are the major expectation to ‘commoditization’ in the tourism and hospitality industries. 34 . location. The only inn at a major ski resort has no effective competition.

Not only has the new consumer gone into top gear. society as a whole has become ever more fragmented. The Challenge of Globalization Dealing with world-wide globalization trends is new to all of us. but rather what we make of it. Know – how and capital are all flowing to where the biggest hopes for the future lie. Everything is in a state of flux: demand. as the result of worldwide globalization mechanism. something that seems appropriate at the dawn of a new millennium. continental and inter-continental transport networks determine the direction and speed of development. our planet is turning into a ‘global village’ with a uniform. the tourism industry cannot avoid being affected by globalization. and even whole destinations.’ To do so we have to focus on the future. In contrast. 35 . Tourist products. labor. with the resistant standardization of production technologies. are becoming interchangeable. Jacques de Bourborn – Busset once wrote: ‘What we want is not to guess at the probable future. but to prepare one that is desirable and perhaps even to go that bit further and try to make the desirable future the probable one. Numerous. commercialized culture. Political boundaries are being abolished to be replaced by others. marketing plans and management styles. particularly turbulent changes are currently taking place in the immediate and wider context of leisure and travel. Although tourist production is tied to local conditions. distribution channels and/ or reservation systems are increasingly a decesive factor in success.Tourism and Hospitality into the 21st Century Experience has taught us that the future is usually not what we would have expected from extrapolating past developments. business strategies.

Holidaymakers too are becoming more and more environment conscious. It is characterized by a basically hedonist attitude (desire. Little willingness to do anything special to merit these. The Challenge of an Ageing Population Seeing aside the fact that the population of highly industrialized countries may be considerably influenced by influxes of refugees. however.The Challenge of the Changing Climate The environmental discussion is hotting up from two sides. The Challenge of Changing Values The process of changing values is equally turbulent. the population’s demographic composition will change radically. On the one hand. goes hand in hand with a certain pessimism about the future. many places are already virtually at their ecological limits. and its values are mainly as follows: • • Substantial material demands. There will be fewer and fewer young people and more and more active ‘younger senior citizens’ with time and money on their hands who will set the tone in the leisure and travel market. While the proportion of young people will fall drastically in the coming years. and travel with its utopian. ritual and mythical nature is steadily becoming the last common identity area. On the other. the assumption can be that the population of the industrialized countries is stagnating. enjoyment. On the other hand. and the consequences will become increasingly visible and tangible over the next few years. the percentage of senior citizens will increase by upto 1% per year. the process of environmental awareness is continuing among broad segments of the population. 36 . living out one’s dreams) which. Cultural identity seems to be increasingly reduced to leisure behavior. The so–called ‘mega generation’ makes itself heard loud and clear. but in an opportunistic fashion: they are particularly sensitive to environmental damage when it threatens to spoil their holiday pleasure.

Growing unwillingness to take orders from others.• • • • • Call for more freedom in all areas of life. the appearance of ecommerce could be a significant event in this century. people more and more come to long for ‘spirituality’. despite intensive debates about the ecological aspects. Growing escapism. Currently only 2% of the world’s population has internet access. but this is changing rapidly. it could be said that whenever everything becomes commercialized. The Challenge of Mobility The fact that a growing number of people can drive combined with the individualization of society is leading to greater motorization in all Western European countries. and hence the need for greater mobility during leisure time. The Challenge of Internet The internet is changing the way many business are conducted. The willingness to be mobile. Individualization of the masses. materialized. rationalized and technical. 37 . Basing one’s argument on Horx. will also continue to increase. Fewer inhibitions.

Changing Travel Habits Upheals in the immediate and less immediate environment of leisure conscious persons also affect their travel and holiday habits. there are also signs of changes in booking and travel habits: 38 . Holiday clubs will lose their attraction as something out of the ordinary. Horst W. The continuing trend towards ‘exoticism’ with its cultural and health risks for travelers and host populations. People will continue to seek sun. in particular: • • • • Growing pressure on the remaining nature reserves. consuming more and more energy. The distances traveled are becoming longer and longer. In addition to these changes in respect of future holiday models. The growing risk that holiday destination will be downgraded to the fast – food articles of the throw –way society. The holiday world of the future must be as exotic as possible. beaches and the sea. More and more young families will discover indoor luxury bathing complexes. Vacations will become the ultimate adventure. Artificial holiday paradises will become tomorrow’s standard holiday venues. This description of tourism of the future highlights the fact that some conflicts are bound to become more acute. Opaschowski described the holiday of the future as follows: • • • • • • • • • Attractive natural sitting and clean landscapes are automatically expected. Culture and study trips will develop into a stable market segment. Holiday hopping (here today – there tomorrow) will spread. with serious consequences.

39 . clear marketing strategies and careful nurture of existing core attractions. beauty and body care and wide variety of therapies as the keywords.bottom prices and growing market transparency thanks to the worldwide web encouragement this tendency. as well as variety. Trend towards going it alone: seeking even more independent holidays in line with personal ideas. gentle exercise. both passive recreation and hyperactive sport are ‘out’. • Trend towards spontaneous travel decisions: seeking offers that can be booked at the last minute (or even at the last second) and which are not only cheap but also comprise an element of surprise. • • • Trend towards ‘second homes’: seeking cosy holiday accommodation as home– like refuges with a high degree of comfort. with traveling as the major attraction. with a healthy diet. with a preference for more flexible holiday products. Trend towards sunny travel destinations: seeking holiday destinations with guaranteed sunshine – above all during cold. Trend towards cheaper travel: seeking (cheap) products that represent value for money: holiday at rock. • Trend towards more wellness during holidays: seeking forms of travel that offer overwrought modern man holistic relaxation. Making the most of these trends calls for visionary innovations. Trend towards more sophisticated travel products: seeking trips that offer cultural and education. This spotlight – like future analysis leaves considerable scope for interpretation about the future openings for tourism. • Trend towards more mobile travel patterns: seeking products with frequent changes of locations.• • • Trend towards adventure – oriented holiday behavior: seeking a more intensive leisure experience. wet winters. targeted cooperation.

At the initial stage. such as hotel. It is against this background that we need a basic change in the national development policy for tourism. the image problem was found at its peak and even till now we find it an important constraint. This necessitated launching of a National Image Building and Marketing Plan in 40 . Cuprus have assigned due weightage to the principles of modern marketing in managing the tourism industy. we expect a lot from the tourism industry. such as USA. The beginning of the decade 1980s paved avenues for the development of tourism industry. innovative and sensitive. It is found to be an economic bonanza which contributes substantially to the development process.Tourism Marketing In Indian Perspective Of late. The developed countries and to be more specific the leading tourist generating countries of the world. UK. In the Indian perspective we find tourism industry at the bottom of our development agenda which has been standing as a barrier while energizing the process of qualitative or quantitative improvements. France. tourism has emerged as an important sector of the economy. Australia. The Pacific Visitor Survey conducted by PATA in 1967 revealed that it was only due to image problem that the tourism industry in India has not been successful in raising its contribution to the development of the economy vis-a vis generation of foreign exchange. Germany. the beginning of the decade 1970s opened new vistas for the development of marketing concept in the tourism industry. The rate of success in the tourism industry is sizably influenced by the instrumentality of supporting industries. transportation. communication. The government further activated efforts and new offices were opened in 1964. The management experts felt that if the contribution to the world tourism is to be increased. banking or so. If the managerial decisions are creative. Singapore. Spain. we have no option but to market the tourism professionally. It was in the early 1950s that the government of India decided to promote tourism industry but it had no clear objectives in terms of marketing.

campaign and appeals which probably could not get due treatment 41 . this also required use of sophisticated information technologies by the tourist generating organisations so as to improve the quality of services at different points. communication. Aggressive marketing was required to be taken up in the existing tourist generating markets abroad as well as to explore new markets. In order to cater to the needs of professionally sound manpower for tourism marketing. The creativity in mesaages. the tourist organisations. the Indian Institute Of Tourism and Travel Management was developed as a model institute. It was necessary to reorient the marketing projects and rationalize the locations of the tourist offices abroad keeping in view in the market conditions and potentials. This necessitated development of infrastructural facilities like transportation. the domestic and global agencies are required to realize gravity of the situation to capitalize on the opportunities optimally. This requires a basic change in the product development strtagy vis-avis the innovative promotional efforts to project a positive image.key markets by pooling resources of the various public and private agencies instead of independent and disjoined efforts presently undertaken by these organisation to project a fair image. The policy planners. sustained efforts were needed to promote Buddhist pilgrimage tourism for which there is a great potential. the promotional strategies thus require due attention of professionals. accommodation or so. The exploration of the new tourist generating markets particularly in the Middleeast. In view of the above. The beginning of the decade 1990s opened new areas for the development of torism in the Indian perspective. South east and East Indian countries having a broad spectrum of cultural affinity with India and encouragement of ethnic tourism by launching programme of Discover Your Roots and vigorous marketing of conferences and conventions traffic could be possible during 1980s. In addition. it is right to mention that diversification of tourism from the traditional sight seeing to the more rapidly growing holiday tourism market within the framework of the country’s milieu is need of the hour. In addition to the planning and development of tourism products.

An overriding priority to adventure tourism. village or rural tourism. it is quite natural that the level of expectations of users keep on moving. The emerging trends in the business environment make it essential that world class professional excellence is essential without which all our efforts are to be ineffective.earlier is required to be made possible. Helping to preserve. Development of people by advancing education and training facilties. tax generation. instrumental in fostering better understanding through travel. such as monorils operated by magnetism and floating on a cushion air. To be more specific when some of the fictions of today profess the emergence of evolutionary from of travel. We can’t deny the fact that till now the tourist organisations have devalued the instrumentality of behavioral studies and therefore we are supposed to do it on a priority basis. foreign exchange generation or so. Innovating the promotional measures and assigning due weightage to aggressive promotion to project a positive image. The trust areas are the following: • • • Making tourism industry a unifying force. • • Motivating the private sector to develop the superstructure. retain and enrich our cultural heritages. or travel in vacuum tubes in which a vehicle will travel at a speed of 800kms per hour. No plans. beach tourism. heritage tourism or so. policies. generation of profits. Bringing socio-economic benefits to the community and the state. • • • Offering opportunities to the new generation in taking up the activities helpful in image building and strengthening the national image. 42 . strategies and decisions are expected to be productive or proactive unless we assign due weightage to the behavioral profiles of the users. • Giving a direction and an opportunity to the youths of the country both through domestic and world tourism to perceive hopes and aspirations of others in a right fashion. specially in terms of expanding the employment opportunities. Enriching their professional excellence by undertaking an ongoing training programme.

Enriching peripheral services to add additional attractions. The worldwide healthcare is expected to be a USD 4 trillion by 2005. Identification of opportunities and challenges We first try to understand the opportunity by conducting SWOT analysis of the Marketing Scenario. A 1% market for India would mean Rs. Strength: Healthcare industry Healthcare is the world’s largest industry.730 crore today. healthcare is the fastest growing industry. Healthcare industry is booming all over the world.000 crore or USD 40 billion.00. 2. But as it also says that Indian tourism organisation lack marketing competence. and it is expected to grow by around 13 % to15 % annually. In the development cycle of any economy for the last 25 years. also the world tourism scenario which shows tremendous potential in growth of industry. More and more overseas Indians fly home to visit their doctors here in whom they have complete confidence. The Indian healthcare industry is worth Rs. before a nation reaches the developed state. Also Indian doctors are amongst the best of the world. following is a marketing plan suggested to explore the potential. Marketing Plan For MEDICAL TOURISM As we have seen the Scenario of Indian tourism industry. as liberalisation has speeded up the entry of the latest state-of-the-art equipment. 43 . They get world-class treatment at a fraction of the cost they would have to pay abroad.• • Promoting the use of sophisticated information technologies to improve the quality of services.

comes after 8 months. India. neurological problems and even dentistry.the hub of Asia’s healthcare needs: • • • Indian doctors are recognized the world over for their expertise There is a huge talent within the country Technology-wise we are only six months behind the developed countries Some factors that make India an attractive proposition • • • • • • • A large English speaking population Opening of the insurance sector A miniscule cost of healthcare as compared to developed nations Medical expertise and contemporary knowledge of healthcare Huge waiting period (upto 18 months in some cases) for treating patients in the UK hospitals Medical tourism as a distinct possibility The entire country is focusing on IT revolution. diabetes. In US hospitals patient register themselves and their no. Accounting for 12. a bypass surgery which costs $3000 in US.They prefer to consult these doctors for their chronic diseases such as high blood pressure. Medical charges in India are between one-tenth and one-thirtieth those of the US. costs only Rs. For example. It is one of the top 5 export categories 44 . Tourism industry Tourism is the single largest and fastest growing category of international trade.8% of the total exports. 35000-40000 in India. Also technology wise India is 6 months behind US. with the same technologies and facilities. but if we play our cards healthcare will be the next boom.

not allow them to advertise. (See annexure ) Weakness • Lack of advertising and publicity: The hospitals are handicapped with government regulations.7 million. India received a share of 0. Good corporate hospitals are still too few to amount to a critical mass.5% of the world’s population travels internationally. lack of statistics.66% share in world tourism receipt ranking it 29th in the world. • • • • • Poor infrastructure facilities Lack of government support The role of Government: the plethora of taxes and procedural complications Inadequate world class accommodation and Untrained personnel manning key facilities Unfocussed marketing about of the the Indian law tourism and product order package situations Apprehensions Opportunity which do 45 . Total world tourist arrivals were recorded at 692.e. World tourism receipts were USD 462.37% in world tourist arrivals with 2.for 83% of countries and the main source of foreign exchange for 38%. • An increasingly fragmented market. capital intensive operations and a long gestation period are all wise reasons to shy away from investing in the healthcare industry. The potential for international tourism is vast as today only 3. • Government and trust hospitals dominate the scene. Many of the trust hospitals suffer from poor management. India was one of the first countries to become a member of World Tourism Organisation in 1951. 0.2 billion while India’s receipt from international tourism was $3168 million i.64 million international arrivals.

Treatments cost a fraction of what they do in the West and the quality of doctors and medical equipment is comparable to the best in the world. Also Liberalisation has made it possible for India to enjoy benefits of technological strides in medicine. UK and other countries have come up with some proposals for medical tourism packages by private sector healthcare institutions in India and talks are on to make this reality on a bigger scale. but on a smaller scale. A recent CII-McKinsey study on healthcare says medical tourism alone can contribute Rs 5. and will account for 3-5 per cent of the total healthcare delivery market. Greece. Threat: Though there are many countries competing in providing medical tourism like.000 crore additional revenue for upmarket tertiary hospitals by 2012. Europe.000-10. they know that treatment is just one-fourth the cost in India and people from their countries will be approaching us for treatment.Medical tourism “Medical tourism” has become a part of certain sectors of healthcare. the size of the medical tourism industry stands at Rs 1. and spiritual medications along with other treatment at nominal prices. will play an important role in medical tourism as.200-1. with foreign stakeholders. Almost all countries in providing 'Medical tourism' focus on: • • • • • • Cardiac Surgery Cosmetic Surgery and non-surgical procedures Dentistry Ear. If industry estimated is to be believed. growing at the rate of 30 per cent. Germany. Multinational health insurance companies. South Africa. Nose & Throat Surgery Gynecological Opthalmic Surgery 46 . India also has an advantage as there are wider prospects in the fields of ayurveda.500 crore.

we find that there is opportunity in Medical tourism. breakfast. 47 . Along with Ayurveda we facilitate with other treatments like allopathic. on the lines of Ayurvedic treatment packages with sightseeing. which we can explore with strengths. Target market: Our main markets are Germany. dinner. hotel accommodation. Africa and neighboring Bangladesh. In an age group of 40-54 years. For this purpose a Tourism organisation named “Make Ur Trip Pvt Ltd” is formed which is a virtual organisation. Our package will also include air bookings. Marketing mix: Product: We have evinced keen interest in attracting patients from neighbouring countries and other parts of the world for “medical tourism” packages for medical treatments. UK. in India. this buying behaviour will help us to attract them as India is a GLOBAL SPIRITUAL POWER. US. homeopathic as per the convenience of our customers. as it provides its services through internet. But as there is a threat of competition from other countries. including cancer. and other requirements. the following innovative strategic marketing mix is designed.• Orthopaedic Surgery From the above analysis. (see annexure ) Buying behaviour: As we are targeting middle age group who seek for mental relaxation and are not very price sensitive but look for quality service. Market will be segmented into NRI’s and foreigners. china and Sri Lanka for promoting the new package.

MUT’s Customer Service Unit is accessible 24/7 via internet and toll free numbers. it's all the convenience needed for a rejuvenating affair”. while being pampered with 5-star luxury. (See annexure). Positioning: Revitalise. Discounts will be provided during lean time. Payment terms: 48 . Place: MUT's the online flight booking engine is truly unique. web-chat and e-mail. Recharge.To facilitate with the above feature we provide them with a travel card which helps them for a smooth and pleasant journey. Above positioning gives a message that “Jumpstart your health with a "medical holiday" that's packed with relaxation and fun! Re-charge. with a medical check-up. With shopping and dining privileges. We seek to deliver the travel card and other required documents at their doorstep after the registration and payment. The profits margin will be high as we provide with unique services. The engine offers customers a unique combination of discounted airfares and online availability. thus enabling realtime bookings. Reboost Medical Package. Pricing: Cost or the price of the package will differ in different packages depending upon the kind of treatment seeked for and destinations looked for.

Feedback and grievances system.Customer will have to pay full cost of package initially by depositing the amount in our bank account at AMERICAN EXPRESS bank in their country which will help them to avail of our travel card facility.) hoardings etc.. sponsorships in world games Public relation and social responsibility: In order to deliver complete customer satisfaction it is necessary to fulfill social responsibilities and maintaining public relationship with both customers internal and external. This will be beneficial for them as they will have a cost advantage as the conversion charges will be reduced. the times. guardian. Delivering high quality service. For this following measures will be taken: • • • Sponsoring welfare programmes on days like world aids day etc. Promotion: We will be promoting our products by: • • • • personal selling participation in trade fairs Advertising through effective medias like newspaper (herald tribune. 49 .

“Medical tourism” has become a part of certain sectors of healthcare. utilization of tourist potential It will generate foreign exchange for the country. 50 . thus improving their infrastructure facilities. so that some benefits may be passed on to the poor also. “What we’re looking at is charging those who can afford expensive treatments.Conclusion: It’s believed that initiatives taken by Make UR trip will help in economic development of our country as: • • • • It will create awareness about our healthcare industry internationally. Domestic players will realize the potential. but on a smaller scale.

com www. Medlik • Marketing in Travel & Tourism . Christopher Holloway & Chris Robinson Tourism & Hospitality in 21st Century – A.Victor T.William F.C.J. Lockwood & S. Jha Marketing For Tourism .cii.tourismofindia.wttc.S. M.hindubusinessline. Thebald Service Marketing .Bibliography: Books : • • • Global Tourism .indiainfoline.com www. Middleton • Internet Web-sites: • • • • • www.com www.com www.org 51 .

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