TOURISAM IN INDIA

A service sector growth industry

BY
PREETHI
PREAMKUMAR
PRIYA
RAGUVARAN
RAJESHGEANADURAI
RAMYA
 SYNOPSIS
INTRODUCTION
TOURISAM
TOURISAM INDUSTRY
INDIAN TOURISAM
TOURISAM INFLOW
REVENUE EARNED
PRESENT SENARIO
TOURSAM GROWTH IN INDIA
TYPES OF TOURISAM
FORMS OF TOURISAM
ECONOMIC VALUE OF TOURISAM
PLAYERS OF TOURISAM IN INDIA
IRCTC VS MAKE MY TRIP
ABOUT IRCTC
PRICE COMPARISEN
UNIQUE FEATURES OF IRCTC
CONCLUSION
 INTRODUCTION
TOURISAM-
Tourism is “the temporary movement of people (visitors) from one area
to another for activities
related to - leisure, pleasure, social, recreational, knowledge-seeking,
medical and business etc”.

Tourism Industry
It is primarily service-oriented, people-based industry, in a largely seasonal
business providing a wide range of services to ‘tourists’, often on 24X7 basis. It is
unique because
- 1) it is not a single, definable industry, instead it is made up of businesses and
organizations
belonging to various other industries and sectors and,
2) the interplay of all of these (businesses
and organizations), when properly aligned, gives rise to Tourism Industry’s
ultimate product -‘the travel experience’.
The Indian Tourism Industry –
Tourism in India is a booming industry, with India appearing in various lists of
world’s ‘hot tourist destinations’. Indian Tourism is touching new heights based
on the popular ‘judgment indicators’ used for the tourism industry –
1) tourist inflow and
2) revenues earned.

Tourist Inflow –
If considered in isolation, Indian Tourism Industry is attracting more tourists
than ever before and the number is constantly increasing, but comparison
between - ‘foreign tourist inflow in India’ and other popular international
destinations, presents a gloomy picture. For example - India, a large country,
attracted 3.9 million tourists in 2005 and New York, a city, attracted 6.8 million
foreign tourists in the same period (www.nytimes.com. December 2006).
Comparing India with its small neighbors like – Thailand, Singapore, Malaysia
etc also fetch similar results. However, huge population base is making up for
this through rapidly growing domestic tourism, both in numbers and in strength
and recently for the first time in the history of Indian Tourism, outbound
tourists from India exceeded the number of inbound tourists.
 Revenues earned

The second popularly used indicator for judging tourism industry is the ‘economic
value’ generated by it and its contribution to the economy and on that count, Indian
Tourism Industry scores high. Accounting for about 2.5% of the GDP, it also
appears in the top five fore earner industries in India. However, World Travel and
Tourism Council (WTTC) estimates suggest that the contribution of Indian
Tourism Industry to the national economy will decline to 1.7% by 2016, but since
that is relative to the rapidly growing GDP of India, it might not be a big cause of
concern. Information and Research studies suggest a bright future for Indian
Tourism Industry in terms of ‘economic activity’, like – according to ‘The Travel
and Tourism Economic Research 2006’, Indian Travel & Tourism Industry is
expected to grow by around 8% between 2007 and 2016 taking the generation of
economic value to US$128 billion. But even after this success of Indian Tourism
Industry, it is not yet among the most competitive tourism industries in the world
and inspire of India emerging as a `must see' destination in recent years Indian
Tourism represents only 0.8% of world market-share which is negligible looking at
the potential it holds.
Another cause of concern can be India’s position in a research conducted by WTTC
to understand the competitiveness of Tourism and Travel Industry of 174 countries,
India clocked in at 89 on
infrastructure, and 156 in its relative contribution to national economy.

Present Scenario –
With commonwealth games (2010) insight and also after appreciating its
potential as ‘economic value’ creator, Government is taking serious measures to
promote tourism
and is providing lucrative incentives to attract more players, but as usual in India,
efforts and initiatives tend to founder on shoals created by political unwillingness
to implement, civil strife, weakness in the infrastructure and contradictory
administrative policies.
Tourism growth in India
According to World Tourism Organization estimates, India will lead in
South Asia with 8.9 million arrivals by 2020

India is poised to emerge as the 2nd fastest growing (8.8%) tourism

economy in the world over 2005-14 according to the World Travel &
Tourism

Foreign earnings
There has been a growth of more than 13% in foreign tourist arrivals at 3.9
million during 2005, up from 3.4 million foreign tourists who visited India
during previous year.

Foreign exchange earnings from foreign tourists were up by more than 20%
at $5,730.86 million in 2005, up from $4,769 million earned the previous year.
Types of Tourism in India
All types of tourism in India have registered phenomenal growth in the last
decade ever since the Indian government decided to boost revenues from the
tourism sector by projecting India as the ultimate tourist spot. 

The reason why India has been doing well in all types of tourism in India is that
India has always been known for its hospitality, uniqueness, and charm – attributes
that have been attracting foreign travelers to India in hordes. The Indian
government, in order to boost tourism of various kinds in India, has set up the
Ministry of Tourism and Culture. This ministry recently launched a campaign
called ‘Incredible India!’ in order to encourage different types of tourism in India. 

The result was that in 2004, foreign tourists spent around US$ 15.4 billion during
their trips to India. Being a country with tremendous diversity, India has a lot to
offer in terms of tourism and related activities. The diversity that India is famous
for, ensures that there is something to do for all tourists in India, no matter what
their interests. 
· Adventure tourism
As a kind of tourism in India, adventure tourism has recently grown in India. This
involves exploration of remote areas and exotic locales and engaging in various
activities. For adventure tourism in India, tourists prefer to go for trekking to places like
Ladakh, Sikkim, and Himalaya. Himachal Pradesh and Jammu and Kashmir are popular
for the skiing facilities they offer. Whitewater rafting is also catching on in India and
tourists flock to places such as Uttranchal, Assam, and Arunachal Pradesh for this
adrenalin-packed activity. 

· Wildlife tourism
India has a rich forest cover which has some beautiful and exotic species of wildlife –
some of which that are even endangered and very rare. This has boosted wildlife tourism
in India. The places where a foreign tourist can go for wildlife tourism in India are the
Sariska Wildlife Sanctuary, Keoladeo Ghana National Park, and Corbett National Park.
· Medical tourism
Tourists from all over the world have been thronging India to avail themselves of
cost-effective but superior quality healthcare in terms of surgical procedures and
general medical attention. There are several medical institutes in the country that
cater to foreign patients and impart top-quality healthcare at a fraction of what it
would have cost in developed nations such as USA and UK. It is expected that
medical tourism in India will hold a value around US$ 2 billion by 2012. The city of
Chennai attracts around 45% of medical tourists from foreign countries. 
· Pilgrimage tourism
India is famous for its temples and that is the reason that among the different kinds
of tourism in India, pilgrimage tourism is increasing most rapidly. The various places
for tourists to visit in India for pilgrimage are Vaishno Devi, Golden temple, Char
Dham, and Mathura Vrindavan. 
· Eco tourism
Among the types of tourism in India, ecotourism have grown recently. Ecotourism
entails the sustainable preservation of a naturally endowed area or region. This is
becoming more and more significant for the ecological development of all regions
that have tourist value. For ecotourism in India, tourists can go to places such as
Kaziranga National Park, Gir National Park, and Kanha National Park. 
· Cultural tourism
India is known for its rich cultural heritage and an element of mysticism, which is
why tourists come to India to experience it for themselves. The various fairs and
festivals that tourists can visit in India are the Pushkar fair, Taj Mahotsav, and
Suraj Kund mela. 

The types of tourism in India have grown and this has boosted the Indian
economy. That it continues to grow efforts must be taken by the Indian
government, so that the tourism sector can contribute more substantially to the
nation’s GDP. 

· Different types of tourism in India are as follows: 

· Adventure Tourism India
· Cultural Tourism India
· Ecotourism India
· Heritage Tourism India
Forms of tourism
Cultural tourism & Round Trips – covering the popular circuits comprising of
the Golden Triangle, Rajasthan, N. India & in South the well known temples,
backwaters & beaches.
Mass tourism – Goa is a tourism based economy and a leader in this sector, is all
set to promote mass tourism. Goa also won the 2nd most popular winter
destination in UK.
Commonwealth Games 2010 – the government is investing in infrastructure, to
further develop tourism in and around Delhi

An all-year round destination

Throughout the world, India is perceived as a October to April winter destination.

Marketing initiatives by both the Government and the private sector is now
successfully addressing & changing this perception.
Economic Value Creation Through Tourism Industry –
Tourism Industry has always been a strong economic value creator – be it in terms of -
earning forex or providing jobs or by means of boosting of related businesses. It
creates ‘economic value’ through ‘tourism sales’ which is combined sales of all the
above mentioned components of Tourism Industry. ‘Tourism sales’ can be further
classified in ‘direct’ and ‘indirect’ economic value as explained through the following
chart –
PLAYERS OF TOURISM IN INDIA
COMPOTATORS
COMPARISON

VS
 Indian railway catering and tourism
Corporation India (IRCTC)
Indian Railway Catering and Tourism Corporation Ltd. has been set up by the
Ministry of Railways with the basic purpose of hiving off entire catering and
tourism activity of the railways to the new Corporation so as to professionalize and
upgrade these services with public-private participation. Rail based Tourism in
India will be the specific vehicle for achieving high growth in coordination with
state agencies, tour operators, travel agents and the hospitality industry. A dynamic
marketing strategy in association with public and private agencies, tour operators,
transporters, hoteliers and local tour promoters is on the anvil. Indian Railways
span global volumes in hospitality and catering sectors with services provided to
13 million passengers everyday.
Mission :
  "Enhance customer services and facilitation in railway catering, hospitality, travel
and tourism with best industry practices"
IRCTC-

Subsidiary of Indian railways

Provides tour packages –both economic and luxury packages.
Offers conventional and adventure tourism.
The market prevailing in rail tourism is monopoly.
Irctc is the single player in its market.
Its main motive is to improve tourism as it provides many tour packages even
for remote spots.

BENEFITS-
It provides packages affordable by all class of people.
Economic tour packages starts with Rs.1500/person.
Maximum of $4550 for luxury tour package.
The service provided during journey is based on the amount for tour packages
OBJECTIVES
1. To be a customer friendly company through constant innovation,
technology driven and human resource development.
2. Optimize resources, increase manpower productivity through quality
product vending and innovative marketing strategies.
3. Upgrade and consolidate catering services in the organized sector.
4. Expand areas of core competencies, enhance business opportunities
through efficient public - private partnerships to maximize generation of
resources.
5. Imbibe strong and ethical work culture through teamwork, build and
reposition Indian Railways in the emerging services sector.
6. Evolve high standards of business ethics, quality management and
effective cost control measures.
7. Concern for the environment and heritage. 
TOURISM
Railway Tourism has seen excellent growth in India. Right from IRCTC's
inception , we have undertaken dynamic marketing strategy with major tour
operators and State Tourism as our partners for providing exclusive tour
packages across the country. IRCTC arranges for full train charters, coaches as
well as reserved berth programmes through regular trains for tourism purposes.
During this short period we have been able to provide such facilities to over
50,000 persons.
Awards And Achievements
Awarded with National Tourism Award of Excellence by Ministry of Tourism,
Govt. of India.
Awarded the National Award for E-Governance, 2007-08jointly by
Department of IT,Govt. of India and Govt. of Haryana.
Awarded the Genius of the Web Award 2007 for Best E-Gov PSU Site by
CNBC.
IRCTC Tourism Unit of West Zone has been awarded the Winner for the
Category Best Value Leisure Product in Travel and Tourism Fair of India i.e. TTF
& OTM 2008 held in Mumbai from 9th to 11th  February 2008. National award for
E-Governance Best Citizen Centric Application for the year 2007-08.
IRCTC Tourism Unit has been awarded the Winner for the Category Most
Innovative Product in Travel and Tourism Fair of India i.e. TTF & OTM 2007
held in Mumbai from 10th to 12th  February 2007.
CSI-Nihilent E-Governance award for Best E-Governance Project in 2007.
ICICI bank Retail Excellence Award in 2005.
Path Breaker Award from Dataquest in 2004.
Path Breaker Award from Dataquest in 2003.
MAKE MY TRIP
MakeMyTrip.com, India’s leading online travel company was founded in the year
2000 by Deep Kalra. Created to empower the Indian traveler with instant booking
and comprehensive choices, the company began its journey in the US-India travel
market. It aimed to offer a range of best-value products and services along with
cutting-edge technology and dedicated round-the-clock customer support.
After consolidating its position in the market as a brand recognized for its reliability
and transparency, MakeMyTrip followed its success in the US by launching its India
operations in 2005.
Rail Tourism
Rail tourism package (RTP) is an initiative to bring quality Indian holidays to the
masses of India. Rail Tourism packages today covers almost every part of India.
Some of the most famous packages are Mata Vaishno Devi package , Shirdi Darshan
package & Tirupati Bala Ji package , Kerala & Goa packages etc.

The rail tourism packages are divided in 7 categories namely Heritage, Hills, Best
Sellers, weekends, spiritual, Sun and sand & offbeat.
 PRICE COMPARIEN
IRCTC AMOUNT MAKE MY AMOUNT DURATION
TRIP
Puri 1250/- 1500/- 1 Day
Excursion
Trip
Lucknow – 1210/- 1450/- 1 Day
Ayodhya

Munnar- 3500/- 5000/- 2 Night /3

Thekkady Days

Himalayan 12500/- 4 Nights

TraquilitY 9100/- /5 Days

BENGALU  1850/ 2000/- 4 Days/

R-MYSORE 3 Nights
UNIQUE FEATURE OF IRCTC
CONCLUSION
No matter how buggy and balmy is Indian railways’ portal IRCTC was in past year
and ‘best viewed in Internet Explorer 6′ it still top the list of most visited portal in
India in Travel category, people use to visit this official portal of Indian railways
more often than any other travel portal in India.
Followed by IRCTC portal, MakeMyTrip is the second most visited travel site in
India in terms of unique visitors and showed 39% growth in its unique visitors traffic
from home/ office locations followed by Yatra.com as 3rd on the list as per Comscore
media metrix report. The report clearly states the consumer behavior and market
condition of Travel related portals and offering in India that seems to be flourishing
but with due trust within consumers. Below are some interesting findings for online
travel niche;
Traffic to the Travel category sites/portal grew to 14 million+ visitors in April, i.e.
50% growth from the previous year
Travel sites now attract more than one-third (37%) of India’s total Internet population
Indians are more cost-conscious consumer in the world and do deliberate decisions
when it comes to spending online over travel sites. (as per average time spent on
travel site per visit)
India ranked second among all countries, behind only the United Kingdom, in terms
of the average time spent per visitor in the category.