Tourism Industry : New Managerial Practices & Technology Implementation (India)


Published on

Tourism industry with its second position in
all industries after petroleum is now with the new
strategic horizons to explore the resources and optimize
the available options of tourism. Increasingly,
organizations and destinations, which need to compete,
will be forced to manage. Unless the current tourism
industry improves its competitiveness, by utilizing the
emerging innovative management methods and IT skills,
there is a danger for exogenous players to enter the
marketplace, jeopardizing the position of the existing
ones. Only creative and innovative suppliers will be able
to survive the competition in the new millennium. This
paper provides a framework for the utilization of
managerial practices and technology in tourism by
adopting a strategic perspective. A continuous business
process re-engineering is proposed in order to ensure that
a wide range of prerequisites such as vision, rational
organization, commitment and training are in place, so
they can enable destinations and principals to capitalize
on the unprecedented opportunities emerging through
managerial practices and new technology.
“A vision is not a project report or a plan target. It is an
articulation of the desired end results in broader terms.”
A. P. J. Abdul Kalam

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Tourism Industry : New Managerial Practices & Technology Implementation (India)

  1. 1. –‡”ƒ–‹‘ƒŽ ‘—”ƒŽ ‘ˆ ”‡†• ‹ …‘‘‹…• ƒƒ‰‡‡– Ƭ ‡…Š‘Ž‘‰› ȋ
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  5. 5. ǡ ‡„”—ƒ”› ʹͲͳ͵13ƒ‰‡ͳ͵Tourism Industry : New Managerial Practices Techonology Implementation (India)Mr. Udit Kumar PandeyDepartment of Management StudiesAmrapali Institute, HaldwaniEr. Yogesh Kumar FularaDepartment of ElectronicsAmrapali Institute, HaldwaniAbstract— Tourism industry with its second position inall industries after petroleum is now with the newstrategic horizons to explore the resources and optimizethe available options of tourism. Increasingly,organizations and destinations, which need to compete,will be forced to manage. Unless the current tourismindustry improves its competitiveness, by utilizing theemerging innovative management methods and IT skills,there is a danger for exogenous players to enter themarketplace, jeopardizing the position of the existingones. Only creative and innovative suppliers will be ableto survive the competition in the new millennium. Thispaper provides a framework for the utilization ofmanagerial practices and technology in tourism byadopting a strategic perspective. A continuous businessprocess re-engineering is proposed in order to ensure thata wide range of prerequisites such as vision, rationalorganization, commitment and training are in place, sothey can enable destinations and principals to capitalizeon the unprecedented opportunities emerging throughmanagerial practices and new technology.“A vision is not a project report or a plan target. It is anarticulation of the desired end results in broader terms.”A. P. J. Abdul KalamKeywords- Smart Key, Remote Transaction Book,computerized reservation systems (CRS), Amadeus,PARAS.IntroductionWhat is tourism? Oxford dictionary defines tourism as thecommercial organization and operation of holidays andvisits to places of interest. Tourist is a person who travelsfor pleasure. The word Tourist does not encompass allkinds of persons who are on tour. The meaning of theword tour includes:(a) A journey for pleasure in which several differentplaces are covered.(b) A short trip to view or inspect something.Structure of Tourism IndustryTourism industry is a combination of Hospitality (acombination of businesses related to accommodation anddining) and Travel Industry (businesses providingtransportation services (to tourists) through differentmodes). Other than these, there are numerous otherbusinesses, which offer their services and products to thetourists and form a ‘part’ of the tourism industry. Thechart given below indicates the vast and complex structureof Tourism Industry –Components of Tourism IndustryACCOMODATIONHotels Motels ApartmentsCamps Guest HouseHostels LodgeBed and Breakfast House BoatsResortsATTRACTIONSNatural Cultural EducationalMonuments Events MedicalSocial ProfessionalTOUR OPERATORSIncoming Outgoing CruisesDay tours and sightseeing Adventure Tours ReligiousToursEducational tours Special InterestBUSINESS TOURISMIncentive MeetingEventsExploring New Possibilities Meeting OrganizersEvent Organizers Conference OrganizersCARRIERSAirlines Roadways RailwaysShips CruisesRent-a-cars and other vehicle hiringLocal transportation (includes city-buses, auto/taxi, boats,trams, local trains etc)DISTRIBUTION, COORDINATION ANDFACILITATING SERVICESGovernment Agencies (at all levels) Packagingagents Guides Tour
  6. 6. –‡”ƒ–‹‘ƒŽ ‘—”ƒŽ ‘ˆ ”‡†• ‹ …‘‘‹…• ƒƒ‰‡‡– Ƭ ‡…Š‘Ž‘‰› ȋ
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  10. 10. ǡ ‡„”—ƒ”› ʹͲͳ͵14ƒ‰‡ͳͶManagers Ticketing AgentsTour WholesalersHoliday Sellers IndustryAssociationsMachinery and equipment hiring and leasingRETAIL SERVICESArt and Crafts Garments SouvenirBooks Medicine LuggageAll other retail shops used by touristsDININGAt hotels (all kinds) Local RestaurantsRoadside joints CafeteriasAll retail counters serving food and beveragesOTHER SUPPORT SERVICESInsurance (travel, life, medical, luggage etc) RecreationalservicesCommunication Services (Phone, fax, Internet, Postalservices etc)Banking ServicesIn India there is a potential of different productsunder the industry are as follows;•Adventure Tourism•Pilgrimage Tourism•Nature Wildlife Tourism•Recreation Leisure Tourism•Cultural TourismTourism is essentially an expression of naturalhuman instinct for experience, education andentertainment. Indian tourism sector is one ofthe most crucial sectors of the economy in thecountry. It is not only a significant contributor toGDP and foreign exchange reserve of thecountry, but also it provides widespreademployment. Tourism sector can also beconsidered the backbone for allied sectors, likehospitality, civil aviation, and transport. Today21.2 crore people around the globe areemployed in travel trade and tourism. The rateof international arrivals in India in recent yearshas been to the tune of about 19 lakh arrivals peryear.With untapped share of tourism industry andavailable opportunities, India can obtain itsremarkable position among the largest players inthe top countries. With ample scope andemployment opportunities, the provided servicesby Indian firms in the field of tourism areinadequate. On the basis of available statistics,the working potential’s training facilities can besafely said to be totally inadequate. To make theNew Tourism Policy result oriented,implementation need to be monitored by a HighPowered Committee under the Chairmanship ofChief Secretary. A Management InformationSystem needs to be set up to assist theCommittee to make available information onvarious aspects of implementation on acontinuous basis. The Committee also needsreview the policy from time to time.Technology TourismThe developments in computer andcommunication technologies have made itpossible to have rental cars with computerizeddriving directions and self-service video-terminals at rental counters in high trafficairports. Fully automated rental transactionsystems National’s Smart Key machine andBudgets Remote Transaction Book came intoexistence. Yet another major contribution oftechnological developments in computers andcommunication systems to tourism is thecomputerized reservation systems (CRS). Thesesystems can now inform subscribers aboutschedules, fares and seat availability, issuetickets and boarding passes, record bookings,maintain waiting lists, display preferred airlinesor classes, search for the lowest fare available orthe first available non-stop flight and calculatefares for domestic and international itineraries.The system can also make reservations for otherservices like hotels, car rentals, cruises,railways, tours, boat charters, theaters andsporting events.Objective of the StudyObjective behind the study are as follows;• To analyze the current potential availableto be tapped by Indian firms in the fieldof tourism.• To study the technological enhancementand managerial practices used andinitiated for the industry up-lift.Important facts about tourism (2010)
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  15. 15. ǡ ‡„”—ƒ”› ʹͲͳ͵15ƒ‰‡ͳͷIndiaNo. of foreign tourist arrival in India - 5.58 million (P)Annual growth rate - 8.1%No. of Indian Nationals departure from India - 2.07million (P)Annual growth rate - 9.0%Foreign Exchange Earnings from tourism - US $14.19Billion (P)Annual growth rate - 24.6%WorldNo. of International tourist arrival - 940 million (P)Annual growth rate - 6.6%International Tourism Receipts - US $919 Billion (P)Annual growth rate - 8.0%India’s Position in the WorldShare of India in International Tourist arrival - 0.59%India’s Rank in world tourist arrival - 40Share of India in International Tourism Receipts - 1.54%India’s Rank in world Tourism Receipts – 16Foreign Tourist Arrivals (FTAs) in India, 1997-2011Year FTAs in India(in millions)Percentage (%)change over theprevious year1997 2.37 3.81998 2.36 -0.71999 2.48 5.22000 2.65 6.72001 2.54 -4.22002 2.38 -6.02003 2.73 14.32004 3.46 26.32005 3.92 13.32006 4.45 13.52007 5.08 14.32008 5.28 4.02009 5.17 -2.22010 5.58 (P) 8.12011(Jan-2.92 (P) 10.9@Jun) (P)(P) Provisional @ growth rate over Jan-Jun,2010Source: (i) Bureau of immigration Govt. of Indiafor 1997-2009.(ii) Ministry of Tourism Govt. of India, for2010-2011.The above figure simplify that the industrydevelopment is increasing with the proceedingyears with a little decrease in some of yearprovided with economic fluctuations in thecorresponding periods. As per the share coveredof world tourism it is still 0.59% of total touristarrival of the world and 1.54 % in case of touristreceipts. It provides with the facts that Indiawith its available resources required to havesome advancement in its tactics to increase itsshare and make change in its position from 40 tothe top 10 countries in the world.Managerial Practices used and initiatedWith the previous data regarding the tourismactivities in India, it is clear that the industry hasits steady growth with still opportunity fordevelopment. In the area of managerial practicesand innovative ideas, Ministry of Tourism hascome up with vital options for implementation.The ministry has introduces administrative setup for the upbringing of the industry consistingfollowing components;Administrative Set upCDB District Govt. Information LB Panchayat T/TT VCDB-Community Development Block,LB – Local Bodies,T/T – Tehsil/ Talluka,T V – Town Village.With the practice of new set up and entrance ofemerging trends in the industry at internationallevel practices are implemented by the Indianfirms in the area of tourism. It consist of the
  16. 16. –‡”ƒ–‹‘ƒŽ ‘—”ƒŽ ‘ˆ ”‡†• ‹ …‘‘‹…• ƒƒ‰‡‡– Ƭ ‡…Š‘Ž‘‰› ȋ
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  20. 20. ǡ ‡„”—ƒ”› ʹͲͳ͵16ƒ‰‡ͳ͸administrative set up implementation andincluding the rare resources of the India in tomain frame so as to increase the growth rate ofthe industry.The further steps taken by ministry are in termof infrastructure development. Augmentation ofquality tourism infrastructure throughout thecountry is a key area of functioning of theMinistry. More than fifty per cent of theMinistry’s expenditure on Plan schemes isincurred for development of quality tourisminfrastructure at various tourist destinations andcircuits in the States/UTs.Human Resource DevelopmentIt has been the Endeavour of the Ministry ofTourism to put in place a system of training andprofessional education with necessaryinfrastructural support capable of generatingmanpower sufficient to meet the needs of thetourism and hospitality industry, bothquantitatively and qualitatively. As of now,there are 29 Institutes of Hotel Management(IHMs), comprising 21 Central IHMs and 8State IHMs, and 5 Food Craft Institutes (FCIs),which have come up with the support of theMinistry. These institutes were set up asautonomous societies with specific mandate toimpart / conduct hospitality education / trainingin hospitality skills.Training programmesIn the field of Hotel Management, Catering andNutrition were initiated by Government of Indiaunder the Department of Food, Ministry ofAgriculture. To begin with, four Institutes ofHotel Management, Catering Technology andApplied Nutrition were set up at New Delhi,Mumbai, Chennai and Kolkatta. For impartingtraining in hospitality related craft disciplines,12 Food Craft Institutes were also set up atdifferent places in the country. Consequent totransfer of the programme to the Ministry ofTourism, format of the various trainingprogrammes was reoriented and remodeledkeeping in view the professional workforcerequirements of the country’s fast expandingaccommodation and catering industry. In orderto harness the resources and also to provide acentral thrust to the programme, Ministry ofTourism also established the National Councilfor Hotel Management and Catering Technology(NCHMCT).Technological enhancement of TourismIndustry in IndiaThe last few decades witnessed the applicationof computer and communication technologies inthe field of tourism. Two distinct streams ofinformation sources viz, (i) online and (ii)offline came into existence. Databasescontaining information about places, touristattractions and facilities became available foronline access in several countries. Theemergence of computerized reservations system(CRS) like Galileo, Amadeus, Sabre, PARS,JALCOM, QAMTAM and ABASUS, etc.opened up a new source of online informationon tourism and are being expandedcontinuously. The latest source of onlineinformation is INTERNET which contains somepages on most of the tourist destinations in theworld.In India, the Department of Tourism took thefirst initiative to introduce informationtechnology in tourism establishing TOURNETwith the technical assistance of CMC Ltd. Thenetwork consisted of 35 information nodesinstalled in the field offices of the Department ofTourism located in different parts of the country.In the online field, the CRS Amadeus and PARSare already operational in India.ConclusionIndian tourism industry with its horizon ofuntapped resources has capability to ensure itsgrowth and prosperity in the tourism industry.With the implementation of managerial practicesand advancement in the technology uses theresources of tourism industry are exploited withhigher level of output. With the enormousopportunities and option India is a potent playerin the industry and using resources carefully to
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  25. 25. ǡ ‡„”—ƒ”› ʹͲͳ͵17ƒ‰‡ͳ͹with its exposure to international equipment andrequirement.REFERENCES••••• Government of India, Ministry of Tourism,National Tourism Policy of India•• Planning Commission, Government of India,New Delhi• Human Resource Development, in TourismIndustry in India: A Case Study of Air India Ltd.,New Delhi, Nafees A. Khan• Challenges and Strategies – EnhancingCompetitiveness of Indian Tourism Industry,Anurag Dugar*• Government of India, Ministry of Tourism•••••••