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Introduction to tourism industry


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Tourism Industry

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Introduction to tourism industry

  1. 1. Presented By: Dinesh Kr Divya MD Guruprasad P Harshita K Hulas G
  2. 2. INTRODUCTION Tourism Industry is primarily:  Service-oriented  People-based industry, in a largely seasonal business providing a wide range of services to ‘tourists’, often on 24X7 basis.
  3. 3. INTRODUCTION It is unique because:  It is not a single, definable industry, instead it is made up of businesses and organizations  Belonging to various other industries and sectors  The interplay of all of these (businesses and organizations), when properly aligned, gives rise to Tourism Industry’s ultimate product - ‘the travel experience’.
  4. 4. STRUCTURE A large part of tourism industry is a combination of:  Hospitality (a combination of businesses related to accommodation and dining)  Travel Industry (businesses providing transportation services (to tourists) through different modes).
  5. 5. Components of Services in Tourism industry
  6. 6. COMPONENTS  Accommodation (Hotels & Motels, Camps, Guest House, Bed and Breakfast, House Boats, Resorts.)  Attractions (Natural, Cultural, Educational, Monuments, Events, Medical, Social, Professional)  Tour Operators (Incoming, Outgoing, Cruises, Day tours and sight seeing, Adventure Tours, Religious Tours, Educational tours)
  7. 7. COMPONENTS  Business Tourism (Incentive, Meeting, Events, Exploring New Possibilities, Meeting Organizers, Event Organizers, Conference Organizers)  Carriers (Airlines, Roadways, Railways, Ships, Cruises, Rent-a-cars and other vehicle hiring, Local transportation)
  8. 8. COMPONENTS  Retail Services (Art and Crafts, Garments, Souvenir, Books, Medicine, Luggage, All other retail shops used by tourists)  Dining (At hotels , Local Restaurants, Roadside joints, Cafeterias, All retail counters serving food and beverages)
  9. 9. COMPONENTS  Distribution, Coordination and Facilitating Services (Government Agencies, Packaging agents, Guides, Tour Managers, Tour Wholesalers, Holiday Sellers, Industry Associations, Machinery and equipment hiring and leasing)  Other Support Services (Insurance (travel, life, medical, luggage, Recreational services, Banking Services, Communication Services)
  10. 10. 7 P Marketing Mix
  11. 11. Product  The tourism product differs from other products due to the wide range it covers, including such areas as accommodations, transportation, food, recreation and attractions.  Often the product includes intangibles such as history, culture and natural beauty.
  12. 12. Place  Travel agents  Tour operators  Tour wholesalers
  13. 13. Price  A quality tourism experience at a fair price is what the customer is looking for in most cases.  Pricing should be based upon clear-cut goals and objectives.
  14. 14. Promotion  Generally information kits, web sites, advertising, personal selling, sales promotion, travel shows, and public relations are used for promotions.  Tourist information centre is the latest tool used  Participation with state, regional and local tourism offices and associations.
  15. 15. Process  The tourism product often includes a variety of attractions, facilities and services, therefore process must also take on several different forms.
  16. 16. Physical Evidence  Finding a special place in the market for the product to differentiate from your competitors. 1. Identify a set of possible competitive advantages upon which to build a position. 2. Select the right competitive advantage. 3. Effective communication and delivery of the chosen position to a selected target market.
  17. 17. People  The people who sell and service your product are an extremely important part of tourism marketing. Friendly personal service and trained employees can make or break a tourism business.  What the customers say after they depart can thrust your business forward or send it into a downward spiral.
  18. 18. India’s Incredible Marketing Campaign
  20. 20. CHALLENGES 1. Sector Specific Challenges : Being a part of the service sector, Tourism Industry faces the below mentioned challenges posed by the sector itself :  High Exit Barrier; Difficulty in trial - hard to escape from the consequences of a poor choice of service and service provider, prerequisite to have a good ‘product’ to achieve sustainable sales  Word-Of-Mouth (WOM) - the choice of destination is affected by WOM publicity
  21. 21. CHALLENGES 2. Industry Specific Challenges: Certain challenges exist along with the industry around the globe  Highly infectious industry - Tourism Industry is very sensitive to environmental changes and it gets affected by them and reacts very fast to them.  High Social Cost - Tourism takes a toll on the resources (especially natural resources)  Intermediary Conflicts
  22. 22. CHALLENGES 3. India Specific Challenges Some challenges facing Indian Tourism Industry are uniquely India specific, like  Sensitizing the diverse Human Resources  Collapsing Hotel Infrastructure  High Operating Costs  Transportation Chaos  Manpower woes
  23. 23. Strategies to enhance the Marketing of Services in Tourism & Travel Industry
  24. 24. STRATEGIES  The planning framework of Indian Tourism Industry can be redesigned  Effective Market Research to ‘Understand Tourists’  Restructuring ‘Organization Structure’ and ‘Planning Framework’  Public Private Partnership is critical for enhancing competitiveness
  25. 25. STRATEGIES  Effective destination management through encouraging business operators for adopting higher standards.  Sensitize the Community for sustainable competitiveness  Effective deployment of ‘Human Resources’  ‘Private-Public Partnership’ for development of world class academic, training and development infrastructure can be a remedy