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  2. 2. Today a stiff competition is seen in the economy, Now, the Present scenario of the business world is quite different from the past. Ethics, Conflicts, new ideologies, new ideologies, energy scarcities and crazy dogmas are just. The few of the characteristics that make the present quite different from the past. In order to cope up in the ever-changing environment, the knowledge of all business worlds is a need today. M.B.A. programs and management institution provide a global manager to this modern business world. But only knowledge is not enough for the business But successful implementation of the know s the key to success. Hence in order to get acquainted with the practical knowledge each student is required to implement the theoretical aspects of the subject in to the practical life work. After a lot of brain storming we decided tourism industry as a title of project. We decided to work on this title. We referred so many magazines, wed sites, books and newspapers for. The study purpose. This project will be fruitful for us in the future also. We are presenting this report, which comprise of secondary data and to out best knowledge it is true and fair. ACKNOWLEDGEMENT It would really difficult for me to complete the project without find co-
  3. 3. Operation of certain people. In other words are so many external who directly help me in our project. First of all we are grateful to Pro.Versha Turi who guided us regarding the project contents and issues related to it. Further we are very grateful to who provided their valuable guidance to us regarding the project. We are also very grateful to our friends, who helped us and guided us Regarding the sources of information related to particular industry. We are also very grateful to the GOOGLE who guided us regarding the sources of information. CONTENT CH. NO. PARTICULAR PAGE NO.
  4. 4. Preface 1 Acknowledgement 2 1. History of Tourism Industry 2. Market Segmentation for tourism 3. Gujarat Tourism 1 2 Infrastructure position 3 Transport connections 4 Marketing 5 Major developments 6 Objectives 7 Proposed approach and strategy 8 Planning for tourism development 10 SWOT Analysis – Gujarat Tourism 11 4. Introduction Key Success Factors Bibliography 1. History of Tourism Industry It is difficult for us to have command on the cyclic movement of fashions,
  5. 5. needs, requirements and the lifestyles. The law of nature, which forces us to welcome a change, of course, influences the process of change. If we delay, the seeds of dissatisfaction and monotony get a conductive nexus for their germination and development. Hence to control or regulate the process, we allow a change which influences our decision-making behavior and forces us to welcome a change of place. It was against this background that the travelling was transformed into a business and of late is an industry. The process of transformation has witnessed number of ups and downs in almost all the areas. Right from the very beginning of culture and civilization, we find the process of change continuing, of course as a pilgrimage. There is no doubt in it that the Roman Empire injected life, strength and the continuity to travelling and therefore the credibility for the development of tourism industry ultimately goes to them. The fall of Roman Empire resulted into downfall of tourism, at least till the end of Middle East. The available facts reveal that Roman evinced interest in visiting temples, shrines, festivals and baths for health and amusement. The contours of Development underwent radical change atleast till the 15th century. The trade and commerce along with religious activities gained the momentum but till the beginning of industrial revolution, tourism continued to remain the matter of pilgrimage. Of Course a number of developments took place between 15l and 18l centuries. Specially In the industrial world which raised the significance of specialization or expertise for excelling competition. This motivated the elite of the society to go abroad for enriching the knowledge, speeding up the learning cycle developing the excellence and making possible cross fertilization of thoughts and ideas. By the turn of 19lh century, we find multifaceted development in transportation, communication and, technological sophistication, which energized the process of industrial transformation. The tourism started developing as a
  6. 6. business and the professional Travel agents started taking part in the process. With the beginning of the 20lh century the process of invention and innovation stated gaining momentum which made ways for the development of infrastructural facilities and further added new dimensions in tourism business. No doubts, the World War I and World War II obstructed the flow of development but the second half of the 20th century proved to be golden age, since almost all the countries of the world started patronizing tourism as an important economic activity. Thomas cook was of the view that beauty is for the people. The opinion of n Mr. Cook generated new dimension in the tourism business, which paved copious avenues for development of tourism as an industry. We can't deny that since the time immemorial travel has been first choice of masses , the qualitative improvement in the process could take place with the participation and cooperation of leading global organization , such as WORLD TOURIST ORGANISATION, PACIFIC AREA TRAVEL ASSOCIATION, INTERNATIONAL UNION OF OFFICIAL TRAVEL ORGANISATION or so With the development of a broader concept, the essence of Tourism further distilled and it was more holistic approach because in the general theory of tourism, Walter Hunziker and Kurt Kraph (1942) considered it both a human As well as economic activity. In 1974, Burkat and Medlik again brushed up this approach since they viewed tourism as a composite phenomenon embracing a whole range of different relationship between traveler's and the host population. The fun and excitement, no doubt, gained the momentum with the holistic approach. This New approach made possible development of traveling business as an industry. The Policy planners as well as the environmentalists pinpointed the side effects of manufacturing industries remained the only solution
  7. 7. to strike a balance between ecology and industry. The traveling business that was transformed into an industry was found efficacious in delivering goods to the socio-economic molecule and the multiplier effects could be extent. .Almost all the countries started exploring new devices for generating foreign exchange to fulfill their multi-dimension socio-economic requirements. The intensity foreign exchange requirement was found at its peak and the tourism appeared to all of them an important source to be tapped optimally. In the face of succulent benefit, the developed, less developed and even the Developing countries started assigning due weight age to the tourism industry in their national development agenda. We agree with this view that with tremendous Socio-economic potential, the tourism industry is considered to be an economic bonanza which paves avenues for the Development of a number of allied Industries, such as hotel, communication, banking transportation, trade and commerce or so. In addition, we also consider tourism a potential source for making possible world peace through mutual appreciation and international understanding. In the Indian perspective, we find Seventh Five Year Plan as watershed in the Development of tourism industry. For the first time, the vast potential of tourism as a foreign exchange earner and generator of employment opportunities was recognized. Several policy initiatives were taken to develop the tourism sector In the development of tourism, the public sector has made a significant contribution. Of
  8. 8. late, the industry is equipped with a reasonable infrastructural base and is poised for a self-sustained growth. The future growth of tourism is required to be activated with the support of the private sector. The strategy for the development of tourism is required to be designed on the basis of low-cost economy, higher level productivity, efficiency in the use of infrastructure and sophisticated tourist facilities. In the Eighth Five Year Plan(1992-97), the special tourism areas have been selected and in the Ninth Five Year Plan(( 1997-2002), we took forward the energizing the process of development but the image problem is found complicating the task of Professionals. In the business world, we need more professional excellence to make an assault on the image problem and it is in this context that we make a strong advocacy in favour of conceptualizing innovative marketing with help of world class professionals. We have tremendous opportunities and the professional excellence would make ways for capitalizing on the same optimally. 2. Market Segmentation for Tourism
  9. 9. The behavioral scientist feels that appeal, strategy and tact vary from segment to segment in a natural way necessities a change in strategic decisions. The modern marketing theory prefers the formulation of marketing policies and strategies for the each market segment which an organization plan to solicit. It is natural that different segments react in a different way. Segmentation makes possible tailoring of products and marketing programmes uniquely suitable for each sub-segment. A market is not only an aggregate demand for a product but the sum of demands of different market segments. For getting a positive response in the market, it is pertinent that the marketer's of the tourist professionals are well aware of the different market segments. It is against this background that we need to study market segmentation for tourist services. At the outset, it is essential that the tourist organizations select a suitable base for segmenting the market. The selection of base has a for reaching impact on studying the target market. Though there are a number of bases for segmentation, we find lifestyle an important base since the traveling decisions are fantastically influenced by the changing lifestyles. The emerging trends in the level of income, the availability of leisure hour of course influence the process but the main thing is the lifestyle. This is supported by the logic that if we earn more, we spend more. We prefer to utilize our leisure time for gaining pleasure or for enriching the knowledge bank. This necessitates an in-depth study of like style for making segmentation proactive. The living styles of Americans and Indian can't be identical, the decision making of both of them are to be different. The American prefer to travel and therefore they assign due weightage to the traveling decisions while scheduling or ordering their engagements. The Indians avoid traveling albeit we find them earning more or sufficient leisure time or holidays in their hands. This makes it clear that for segmenting market, we find this variable constituting a
  10. 10. place of outstanding significance. The aforesaid facts make it clear that for getting a positive response, the segmentation of tourism market needs an intensive care. The tailoring of products with the expectations of tourist or a fair synchronization of tourist's expectations and potentials of the tourist organization would hardly be possible unless we segment the market in a right fashion. The opinion leaders prompt the whole drama of marketing where the word-of-mouth promoters play an incremental role. The process of segmentation simplifies the task of marketers. Tour operations, the transport operators the travel agents, the tourist guides, e hotels find it easier to make the marketing decisions. They even with the minor intelligence and diligence are found successful in identifying the market the potential tourists. It is right to mention that the needs and requirements well as the levels of expectations can't be uniform. The segmentation benefits tourist organization in different ways. An optimal marketing plan, a balanced development of marketing resources, true gauging of the level of expectations, formulation of creative strategies for getting a positive response make it weightage clear the tourist organizations assign due to segmentation. They are supposed to select a suitable base for segmentation out of numerous bases like day base, purpose base, demand base, geographical base, Psychological base, demography base, socioeconomic base, sex base, age base or so. These bases help professionals in studying and understanding the changing behavioral profile of users. The market segmentation bases make it clear that geographic, demographic, psychographic and socio-economic aspects can't be underestimated to have clear picture of the tourism users. 1. Holiday as a Base - Mass Market, Popular Market
  11. 11. 2. Demand as base - Primary, Secondary opportunity 3. Geography as a base - Cities, Provinces, Regions, Countries 4. Psychography as a base - Lifestyle, Personality Motive, Product, Knowledge. 5. Demography as a base - Age, Sex, Occupation, Class, Religion. 6. Socio-economic of base - Rich, Poor, Rural, Urban, Literate, Illiterate 7. Purpose as a base - Business Travel, Cultural Tourism, Common Interest 8. Age as base - Kids, Teens, Youths, Young, Married, Single. The holiday base focuses or attention on the fact that long-distance tours require availability of more leisure hours. The holiday market is classified in terms of demand. The different categories are, the mass market, the popular market and the individual holiday market. The mass market involves largest number ofvacationists who generally travel in long groups. They prefer all-inclusive tours. The users belong to the conservative group in which we find skilled and semiskilled workers, blue-collar employees as the potential users. The users are generally class one and class two groups, pensioners and retired people. The individual holiday market involves "social group-A7 like corporate chairman and senior executives. We find an apparent change in the behavioral profile of different categories in the holiday base. Another base is purpose in which we find business travel market, cultural tourism market, common interest tourism market and conference and convention. The demand base classifies markets into primary tourism market, secondary tourism and opportunity tourism. The geographic base includes lifestyle, personality, motives, product and knowledge. The demography base covers age, sex occupation, class and religion. The socioeconomic base makes classification like rich, poor, rural, urban, literate and illiterate. The age-base classifies markets for kids, teens, youths, young married and old people market.
  12. 12. The aforesaid small segments simplify the task of tourist professionals. They know about the changing needs and requirements of different segments and innovate their strategic decisions accordingly. The development of marketing resources in tune with the changing levels of expectations make the ways for the stimulation of demand and simplify the task or marketers. It is in this context that we need to segment the market for the different allied industries helping the tourism industry in many ways. 3. Gujarat Tourism
  13. 13. 1 Introduction Hospitality, the foundation on which the structure of tourism is built, is indigenous to Gujarat. Gujarat sends largest number of travelers to almost every corner of the world. But its strength to be host has not been fully utilized due to the lack of information highway. Gujarat offers colorful experience to its travelers packed with pleasant surprises - endowed with forests and deserts, hills and plains, sea and lakes, tribal hinterlands and special interest destinations with a strong rail, road and air network. Gujarat - be the only lion sanctuary of Asia, the only temple clad summit of Shatrunjaya and the only site of the Indus valley civilization with an elaborate network of hotels, restaurants, entertainment parks, water resorts, kala bhandars & many more, has an inherent strength to pull the tourism all over the world under the umbrella of web based services. Gujarat has made economic strides on the strength of private enterprise, pragmatic public policies and efficient administration. While industrial growth is particularly intense in Ahmedabad Vapi corridor, the development is not skewed. 19.2 Infrastructures Position. 1. Installed Electricity Generation Capacity (MW) 5076 2. Electricity Generation (Crore KWH – 1993-94) 2412 3. Roads (km) * National Highway 1570 * State Highway 19609 * Main district roads 20268 * Other district roads 10337 * Village roads 18175 4. Railway Track (km) 5227
  14. 14. 19.3 Transport Connection. 1. Railway Facilities Extensive Network 2. Functional Airport 11 3. Non-Functional Airport 14 4. Airlines operating in Gujarat Indian Airlines Jet Airways Sahara Gujarat Airways 5. No. of flights landing in Gujarat Over 100 6. International flights from Ahmedabad London New York Muscat Other Destinations 19.4 Marketing. In tourism marketing a destination is being marketed. Once a destination is shall to a customer or customer group, everyone who is providing the service in relation to tourism gets benefited. A destination can have a large variation of products or benefits to offer and a unique combination of features that cannot be duplicated elsewhere. The question that arises is how is one to attract tourists to Gujarat – an industrial hub of India – had nothing as glamorous as the Taj Mahal or the backwaters of Kerala or the beautiful landscapes of Kashmir to talk about. This was the task faced by TGCL in 1975 i.e. how to develop and promote tourism in the state and maintain and strengthen the existing tourist infrastructure. 19.5 Major Developments
  15. 15. The foreign tourists are slightly bored with Rajasthan. Gujarat in terms of culture and craft is rich and varied and offers a unique combination of desert and sea. The private enterprise is adding to Gujarat's attractions. For example, the high teach mega religious complex of Swaminarayan (Akshardham) set up in 1990s is a tourist destination in itself. The area around Ahmedabad and Gandhinagar is emerging in to a major recreation region of western India with Akshardham, waterparks, amusement parks, multiplex cinemas, clubs and resorts. Big hotel chains like the Taj, Oberoi, Holiday Inn, ITC hotels now have a presence in Gujarat. The civil aviation scene is also experiencing a boom. Over 100 flights land at 11 Gujarat airports everyday. A separate Tourism Department was established in 1973 to identify and develop the tourism potential in the State This was followed by the creation of Tourism Corporation of Gujarat Limited in 1978, which was entrusted with the task of undertaking and developing tourism related commercial activities. The Corporation is presently engaged in a variety of activities such as creation of loading and boarding facilities for the tourists and other aspects of tourist facilitation such as transportation, packaged tours, wayside catering along the National and state Highways, arranging cultural festivals, organizing exhibitions and producing and distributing maps, posters, brochures and pamphlets. The Corporation has set up accommodation facilities at Chorwad, Ahmedpur Mandvi, Porbandar, Veraval, Hajira, Ubharat and Tithal. Similar facilities at pilgrimage centres like Palitana, Somnath, Dwarkja, Pavagadh and Dakor have also been set up by the Corporation. One of the recent tourist attractions introduced by the Corporation in collaboration with the Indian Railways is a special tourist train. The Royal Orient Train that connects up various tourist destinations straddling the Gujarat and Rajasthan State. However, the Corporation has suffered losses due to a number of organizational constraints. In order to minimize these losses and
  16. 16. also to provide better services to the tourists, the Government has undertaken privatization of some of the commercial property unities of the Corporation. In spite of possessing a variety of tourist attractions such as wildlife, scenic beauty, pilgrimage centres, exotic traditional crafts and festivals, beaches, hospitality of the region and a varied healthy and tasteful cuisine, the State has not been able to accelerate the pace of tourism in comparison to other state. In 1991, the State did declare a tourism policy but it did not elicit adequate response from the private sector since the policy contained only a handful of benefits while the implementation was tardy due to legal and administrative constraints. This was at a time when the Government of India had already declared tourism as an industry and a large number of states had followed suit. This enabled the tourism industry to avail of incentives, reliefs, and benefits available to the industry in those states. While other state Governments made successful offorts in developing tourism within their states, the relative inability of the Gujarat State to harness and develop its full tourist potential may be attributed to a combination of factors such as lack of effective policies, inadequate infrastructure, ineffective marketing and lack of decent facilities for the tourists. 19.6 Objectives The main objective of the Gujarat State Tourism is to intensive Development of tourism in the State and thereby increase employment opportunities. The following related objectives are dovetailed with main objectives. * Identify and develop tourist destinations and related activities. * Diversification of tourism products in order to attract more tourist Through a varied consumer choice. * Comprehensive development of pilgrimage centre as tourist Destination.
  17. 17. * Create adequate facilities for budget tourists. * Strengthen the existing infrastructure and development new ones where necessary. * Creation of tourism infrastructure so as to preserve handicrafts, folk arts and culture of the state and thereby attract more tourist. 19.7 Proposed Approach and strategy. The Government should adopt the following strategy towards the private sector with the objective of securing the active involvement in Leading the development of tourism in the State. • The tourism should be given the status of industry in order that the facilities and benefits available to the industry are also made available to tourism projects. • A special incentive package should be made available for encouraging new tourism projects as well as expansion of existing tourism units. • Infrastructure facilities should be strengthened and developed within the State, particularly in Special Tourism Areas. • Effective mechanism should be set up to build meaningful coordination with the Central Government and the State Government agencies, the local selfgovernment bodies and the NGOs. • Government should encourage building effective linkages with the economic agents and agencies such as the national and international tour operators and travel agents of repute, hotel chains and global institutions connected with tourism such as WTO.
  18. 18. 19.8 Planning for tourism development A perspective plan for tourism development will be prepared in consultation with experts. An overview of possible tourism products is offered below. 1. Religious (Pilgrimage) and Archaeological Tourism Gujarat has a hold of pilgrimage centers like some other states. Somnath and Dwarka- some of the wellknown and revered sites of ancient Hindu temples- are situated in the state. Architecturally brilliant and of significant religious importance are some of the temples of the state like the ones at Shetrunji, Girnar, Taranga,and Ambaji. Other temples like those at Dakor Pavagadh, Bahucharaji, Shamlaji, Narayan Sarovar, Sudamas Porbandar, Kabirvad, Shuklatirth, Kayavaohan, Bhadrakali (Ahmedabad) and Tankara(Maharshi Dayanand Sraswati's birth place) are also important pilgrimage destination, which have kept alive the religious sentiments of the people, Millions of pilgrims visit these places every year. Not only the devotees from all over the country but also by Non-Resident Indians and travelers visit these places especially from the eastern part of the world. Necessary accommodation Facilities and related services will bee created on these sites. For ensuring orderly and planned development of pilgrimage centers, the state government has constituted Pavitra Dham Vikas Board chaired by the Chief Minister. The board will implement plans to provide necessary facilities to devotees and also ensure conservation of cultural atmosphere consistent with sentiments of visiting devotees. Shamlaji is an ancient site for Buddhists. The excavated relies from the Buddhist period at the site are now kept in a museum at Baroda. There are a number of places of archaeological importance such as the temples town of Palitana. Modhera withits Sun temple, historical Rani ki Vav at Patan with the relief of an ancient capital, the Girnar Hills with Hindu and Jain
  19. 19. temples, Junagadh with a historical fort,Dabhoi, Champaner, Pavagadh, Shaking Minsrets, Gandhi Ashram, Sidi Sayed Jali etc. These can be developed by providing necessary infrastructure facilities and marketed tourist destinations to attract tourists. 2. Heritage Tourism A large number of old palaces, havelis, darbargadhs exist in the state.These historical building can be converted into hotels, restaurant or museum by providing suitable incentives to owners. Wildlife and pilgrimage tourism circuits can be linked to heritage properties exploiting the geographical congruity. Development of this sub-sector will not only attract foreign tourists but also provide encouragement and support to local art and crafts. The government will take necessary steps to promote heritage tourism in the state. 3. Wildlife Tourism There is substantial scopes for development of tourism based on wildlife in the state. The Gir forest of Gujarat is the last stronghold of the Asiatic Lion. The bear sanctuary at Ratan Mahal(Panchmahal district), Black Buch Sanctuary at Velavadar (Bhavnagar district),bird sanctuary at Nalsarovar (Ahmedabad district), wild asa sanctuary at Kutch etc.can be effectively developed into tourist destinations by providing infrastructure facilities. In order to facilitate visitors to these areas, coordination among agencies will be established. 4. Coastal and Beach Tourism Gujarat state has the longest coastline among the maritime board states of the country. Identified stretches of coastline can be developed into beaches from the tourism point of view. It will be the endeavor of the state to develop beach potential by providing facilities as they attract foreign tourist. Various tourist
  20. 20. destinations easily accessible from the coast will be linked through coastal shipping circuits. 5. Tourism based on Traditional Art, Craft and Cultural Activities. Banni in Kutch, Khambhat, Junagadh etc. are known for their craftsmanship .Similarly, there are hundreds of fairs that are celebrated throughout the year with enthusiasm. The Tarnetar Fair in Surendranagar district, Chitra Vichitra Fair at Poshina (Sabarakantha district), Kanwat Fair at Chhota Udepur Panchmahal district), Danf Darbar at Dang, Bhavnath Fair of Junagadh, Vautha Fair of Ahmedabad etc. have immence tourism value.By developing accommodation, transport and other facilities, these fairs and festivals will promoted nationally and internationally. The places of importance from the art and craft point of view will be included in the tourist circuits and necessary facilities will bee provided to tourists. 6. Corporate Tourism The private sector will be encouraged to build state-of-the-art Convention centers, seminar halls etc. so as to attract corporate events like seminars, workshops and annual general meetings. Participants in such events generally have high purchasing power and provide boost to the local economy. 7. Adventure Tourism This is also a territory with the possibility of development as a , sub-sector, which will be examined and new activities like camel safari Kutch, horse -riding in the Aravalli hill ranges, Parachuting in Saputara, trekking in Dang, Pavagadh, Palitana etc. will be promoted. Such activities will create large- scale Employment opportunities for guides, collies, traders for hire Of tents and equipments etc. and will also encourage paying guest accommodation in such areas Private
  21. 21. entrepreneurs and Institutions will be encouraged to develop such facilities. 8. Highway Tourism There is a good network of state and national highways, which Criss-cross the state and a large number of travelers prefer road journey. Because of the large geographical expanse of the state, these journeys tend to be quite long and boring. There is a need for creating necessary facilities like hotels, restaurants, picnic spots, water parks etc. along the highways at suitable intervals for the highway travelers to relax. In fact, travelers can be induced to follow certain traffic routes if such facilities are better developed. Highway facilities and wayside amenities are so well developed in some states that this has become the mainstay of tourism. The state shall encourage private investors to create such facilities on the highways. 19.10 SWOT Analysis-Gujarat Tourism • Government support( in term of grants) - both government of Gujarat as well as government of India sets aside annual grants for the development of tourism in the state. • Wide network of Services under its fold-includes hotels, tourist Information Bureaus etc. Weakness • Significant internal weaknesses • Low employee morale • Lack of professionalism in the organization. • Bapu culture prevalent • In-effective Promotions • Awareness regarding its products, services as will as its investment opportunities in this sector has not been highlighted.
  22. 22. Opportunities • Scope for investment in new ventures • Joint ventures with private parties • Cashing in on excellent infrastructure facilities Threats • Competition from other state tourism corporations • Private parties assuming the role played by TCGL at this juncture. 19.11 Key success Factors • Improved service quality • Increase in usage of those services • Boosting employee morale