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UNIT 3UNIT 3
MR.T.SOMASUNDARAM
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT STUIDES
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
BENGALURU
Unit 3– Tourism & Travel Services 1
UNIT 3UNIT 3
Introduction; Concept & Nature of
Tourism; Significance & Impact of
tourism; Market Segmentation in
Tourism; Tourism Marketing Mix
Management of Travel services;
Role of Travel Agencies & Travel
Organization; Tour Operations;
meaning and services.
Unit 3– Tourism & Travel Services 2
INTRODUCTIONINTRODUCTION
 Tourism as a phenomenon means
the movement of people both within
and across the national borders.
 It creates a demand and provides a
market for number of different
industries.
 All the economic activities involved in tourism may be
called as Tourist Industry. (Hotels, Travel & catering,
retail shops, gifts, etc.
 It is sum total of providers of tourist industries.
 It is a pleasure activity implying a use of readily
disposable incomes and one’s own free time.
3
Definition:
“Tourism is defined as the temporary movement
to destinations outside the normal home and
workplace, the activities undertaking during the
stay and the facilities created to cater for the
needs of tourists.”
- Mathieson & Wall (1982)
“Tourism is defined as the temporary movement
to destinations outside the normal home and
workplace, the activities undertaking during the
stay and the facilities created to cater for the
needs of tourists.”
- Mathieson & Wall (1982)
“Tourism is defined as movement of people to
different destinations having two key elements –
journey and stay, both of which come off not
within but outside the normal area / place of
domicile and work.”
“Tourism is defined as movement of people to
different destinations having two key elements –
journey and stay, both of which come off not
within but outside the normal area / place of
domicile and work.”
Unit 3– Tourism & Travel Services 4
The main elements of tourism are:
i) It comes into being out of movement of people to,
and their stay in various destinations.
ii) It has two essential factors, (i.e.) travel to the
destination and stay at the destination.
iii) Travel and stay occur outside the typical place
through which people travel and stay.
iv) Movement of destinations is temporary nature
and get back home within a short span of time (few
days, week or months).
v) Purposes of visit to destinations can be any apart
from residence or employment.
Unit 3– Tourism & Travel Services 5
McIntosh & Goeldner (1990) identified four perspectives –
a) Tourists looks for diverse psychic and physical
experiences and satisfaction from tourism activity.
b) Business people behold tourism as opening to make profit
by providing goods and services in tourist market.
c) Government looks tourism as a capital and good factor for
economy. It gives income and employment generation,
international tourism, tax, etc.
d) It is consider as cultural and employment factor.
In Sanskrit literature, three terms for tourism are:
i) Paryatna: going out for pleasure and knowledge.
ii) Desatna: going out of country primarily for economic
gains.
iii) Trithatna: going out to places of religious merits.
Unit 3– Tourism & Travel Services 6
CHARACTERISTICS OF TOURISMCHARACTERISTICS OF TOURISM
i) It is a complex phenomenon and amalgamation of phenomenon and
relationship rather than a single one.
ii) Relationship arise from movement of people to various destinations.
iii) It is different from those of resident and working places.
iv) It is non – remunerative activity. They visit to destination not for
paid work, it is part of business or vocation.
v) Movement of people is temporary and short duration.
vi) It is multi – dimensional activities like hotel, travel, tour operators,
shopping, etc.
vii) It is a service industry and engaged in job in hotels, catering,
transport, travel agency, etc.
viii) It changes ideas of people and motivates the customers.
ix) It is transformed from Mass, Rigid and Packaged tourism (MSRP)
to present neo – tourism like Flexible, Segmented and Diagonally
Integrated (FSDI).
x) It is related with long term environmental losses. (overcrowding) 7
BASIS OF TOURISM (ESSENTIALS)BASIS OF TOURISM (ESSENTIALS)
1. Freedom to travel (govt. rules & procedures, schemes, etc.)
2. Education (formal education to be potential tourists).
3. Per Capita Income (high per capita income provide bulk of
tourists).
4. Awareness (great awareness about the places)
5. Professional Capabilities to sell pleasure travel (spend
money and time to travel for leisure and pleasure).
6. High standard of living (people spend their money and time
on holidays).
7. Price frequency and speed of transport (high speed of
transports leads growth in tourism).
8. Tourism promotion (enhance national growth of tourism,
newspaper, magazines, TV plays vital role in spreading
information about tourists place and travels). 8
INGREDIENTS FOR TOURISMINGREDIENTS FOR TOURISM
DEVELOPMENTDEVELOPMENT
Some of the principal elements to promote tourism are:
1. Fine weather (weather conditions – ooty, shimla, etc).
2. Scenery (scenic beauty places, water falls, mountain
scenery, etc).
3. Amenities (natural amenities – beach, sea, fishing, etc. &
man made amenities – theatres, entertainment, etc).
4. Historical and Cultural factors (historical spot)
5. Accessibility (travel accessibility like air r railways).
6. Accommodation and Stay (hotel, restaurant to stay and
provide food, etc).
7. Miscellaneous factors (local guides, country visited,
currency restrictions, custom procedures, etc).
Unit 3– Tourism & Travel Services 9
COSTS OF TOURISMCOSTS OF TOURISM
The main costs of Tourism are:
a) Foreign exchange costs of capital investments in hotels.
b)Cost of land & buildings.
c) Investment in accommodation. (hotels, guest houses).
d) State capital expenditure on infrastructure.
e) Investment in transport services.
f) Cost of other facilities like function room, swimming pool.
g) Breakup of current operating costs.
h) Import cost of goods and services used by visitors.
i) Repatriable profits on foreign investments.
j) Interest on foreign loans.
k) Payments of foreign travel agents and tour operators.
Unit 3– Tourism & Travel Services 10
l) Expenditure by National Tourist Organization (Department
of tourism , India Tourism Development Corporation) and
travel agencies.
m) Tourism investment schemes like tax exemption from
custom duties and loans on reduced rate of interest.
n) Foreign components in i) Fixed costs, ii) Current cost of
maintenance and also revenue on rental, food sales, etc.
The following are additional costs:
a) Import licenses required by hotel industry for boarding and
lodging, restaurant and entertainment.
b) Payment in foreign exchange mostly on collaboration in
hotel sector.
c) Promotional and advertising charges to induce foreign
tourists.
Unit 3– Tourism & Travel Services 11
EVOLUTION OF TOURISMEVOLUTION OF TOURISM
 Travelling has been a characteristic feature of human
society and lifestyle.
 The origin of man’s faculty of walking and his curiosity
about things far and away.
 It is more of a luxury available to few who could afford
time and money to travel.
 Tourism is accepted as a part of lifestyle of large no. of
people nowadays.
 Main factors like increased leisure, higher income, better
awareness and information, faster mode of transportation
are contributions to the Tourism and travel.
 In ancient Greek World, it is the evidence of tourist traffic
particularly Olympic games and other festivals.
Unit 3– Tourism & Travel Services 12
 (E.g.) Greeks hosted international visitors during first
Olympic games in 776 BC and Romans travelled for
holidaying far away from home for enjoyment.
 Each tourism was takes place for three purposes –
i) For waging a war.
ii) For purpose of business.
iii) For religious resolve.
 In 334 B.C., Asia Minor beginning with the help of
Republican government, some 0.7 million tourists travelled
to Turkey for season entertained like acrobats, animal
feats, magicians.
 Discovery of money by Sumerians (Babylonia) developed
trade in beginning of 4000 BC to start modern era of travel.
 In 149 BC, description of journey recorded on walls of
temple of Deity Bahari at Luxor. 13
 Travel in the early times especially in China and India, was
mainly on account of Trade.
 In middle ages, new universities like Bologna, Paris,
Oxford has considered students travelling to centres of
learning.
 Renaissance group of tourists has searched of arts, beauties,
wonders of nature, mountain and hills, snow clad mountain,
etc has a pleasure of feelings.
 In 18th
and 19th
century the advancement of railways and
steam transport by sea was stimulated for tourist people.
 Nowadays travel came with moderate hotels, boarding
houses, photographs, maps, guide books and travel agencies
for tourism development.
In U.S., American Express introduced system of money
orders and travellers cheques for tourister.
Unit 3– Tourism & Travel Services 14
 In 1919, many national organizations established International
Trade in most countries to encourage and promote the interest of
Tourism (E.g.) Travel Association of U.K. (1929).
 By 1950, International tourism came to be known as a giant
industry because of two reasons
i) U.S. prosperity relative to other countries faltering economics
in postwar world, which gave purchasing power.
ii) advent of jet travel in 1958, it made possible to cross the
Atlantic in 7 – 8 hours.
 Jet speed made opened the international travel in most of the
countries and attracted the convenience and attractiveness of
long distance tourism.
 The volume of tourist traffic was multiplied due to highly
technology, recreational, cultural travel and sustainable
tourism in present times.
Unit 3– Tourism & Travel Services 15
 The concept of tourism transformed from MSRP to present
FSDI.
 Ongoing speedy innovations and advances in tourism
industry led to quality of tourism services and make easier
and comfortable day by day.
 Evolution of tourism from age of ‘Grand Tour’ to current
“Mass International Tourism” given rise to changes in all
spheres of life.
 Two universally accepted yardsticks have used to measure
tourism index in any country or region are:
a) International Tourist Arrivals.
b) International Tourism Receipts.
Unit 3– Tourism & Travel Services 16
SIGNIFICANCE & IMPACT OF TOURISMSIGNIFICANCE & IMPACT OF TOURISM
- significance of tourism is measured by way of
contribution to national income, earnings of foreign
exchange , state revenues and creation of employment.
Some of the five potential benefits from tourism are –
a) contribution to balance of payments.
b) dispersion of development of non – industrial regions.
c) creation of employment opportunities.
d) effect on general economic development.
e) social benefits arise and to a new understanding of
foreigners and foreign tastes.
“Tourism promotion is key operation to any region, state or
community development programme like agricultural,
industrial and tourism development.”
Unit 3– Tourism & Travel Services 17
a) Economic benefits:
- economic value is based on effect on production,
employment and tax revenues.
- it involved in various sectors like accommodation,
transport, resort areas and other facilities.
1.Tourism and Economic Development:
- it is the vehicle for economic development.
- it lies in purchasing power generated in receiving areas
through expenditure of visitors.
- multiplier effects will earn more income and it partly
represent on domestic factors for modernization.
- it is valuable attribute to most developing nations and
attain maximum rates of economic growth.
- massive and torrent of investment money continues to
pour in development of tourism. 18
2.Tourism and National Income:
- domestic or international gives boost to national income.
- it demand for services and consumer goods and automatic
increase in national consumption.
It demands for services and consumer goods as –
* construction of hotels and other accommodation.
* installation, infrastructure, sanitation, water & power
supply.
* production of food, meat, drinks and agricultural
products.
* production of means of transport and spare parts.
* creation of new commercial establishments.
* increase in production of goods bought by tourists.
* regeneration of finance sector, banking, insurance and
professional services. 19
“Total income from tourism is the product of member of
tourists per day, average length of stay in days per tourist
and average expenditure per tourist per day.”
Total Income = N * L * e
where N – No. of tourists per day
L – Average length of stay in days per tourist
e – Average expenditure per tourists per day
3. Tourism and Redistribution of National Income:
- it prevents national income from being hoarded by few and
it has created new opportunities and areas where money
spent.
- advent of tourism now spent on travel, art visits, health
resorts, visits to international sports events, festivals,
exhibitions, etc.
- redistribution of money increase employment & neglect
20
4. Tourism and International Trade:
It promotes international trade because –
i) current expenditures by tourist (accommodation, food,
etc).
ii) purchase of capital and consumer goods by tourists.
iii) import and export of goods (equipment, food, etc).
iv) payments to other countries international airlines and
shipping companies.
v) monetary transfer.
vi) foreign capital investment.
vii) interests, profits and dividends (transfer of money,
return on investment).
“Internationalism tourism is also a means of providing
foreign exchange earnings from visiting travellers to
equal expenditure by citizens who are abroad.” 21
Some of the general economic objectives promoted by tourism
are:
i) it facilitates and accelerates development of region.
ii) it helps in combining unemployment.
iii) it brings in foreign currency as an export.
iv) it lightens burdens of foreign and public funds.
v) it attracts capital.
5. Tourism and Employment:
- it provides employment to people several times more than
manufacturing industries.
- it creates direct jobs (hotel, workers are resorts, guide) and
indirect jobs (semi skilled & unskilled through to management
skills).
- beneficiaries are travel agencies, hotels, photographers,
flower sellers.
- it creates employment through demand for goods and services.
22
6. Tourism and Tax Revenues:
- importance of tourism is determined by how much tax
revenues to state from tourism expenses.
- main source is through taxation – customs and excise duty.
Total Tax Revenue = Total annual expenditure by tourists
Multiplier % of taxes with the business generated.
7. Tourism and Public Utilities:
- there will be substantial increase in consumption of
water, gas and electricity during touristic season.
- public utilities plan their output to meet peak demands
and calls for capital investments.
- it is designed to satisfy the requirements of population
larger than local residents.
Unit 3– Tourism & Travel Services 23
8. Tourism and Inland Transport:
- it is important means of transportation of tourists.
- there are no. of taxies, self driven and hired vehicles, etc
are beneficiaries of tourism.
- it causes creation of transport and communication
facilities, development of parks, marinas, beaches, etc.
9. Tourism and Retail Trade:
- it encourages high standard of living for all community.
- it has wide range in professional and business like
lawyers, accountants, etc.
The main retail purchase in tourism are –
* expenditure on food, shopping, jewellery and handbags.
* expenditure on cosmetics & perfumes.
* expenditure on gift items like toys, glassware, etc.
Unit 3– Tourism & Travel Services 24
* expenditure on cameras, films developing and other
photographic works.
* expenditure on clothing and shoes.
* expenditure on post – cards, stamps, greetings cards,
etc.
10. Tourism and Environment:
- it is the synonymous with protection of environment.
- natural scenery and local culture are interest of
visitors.
- growth of tourism does less danger compared with
other forms of economic and industrial development.
- it become an instrument for beautification and
improvement of the environment.
Unit 3– Tourism & Travel Services 25
b) Socio Or Non – Economic Benefits:
“Tourism often has significant i) cultural implications
(E.g.) restoration of ancient monuments; ii) aesthetic (E.g.)
the preservation of beauty of landscape and safe guarding of
nation’s heritages; iii) social (E.g.) provision of recreational
facilities for health and welfare of people and iv) political
(E.g.) improvement of international understanding among
countries.”
- it brings number of intangible benefits.
- if offers educational, social, cultural and other political
values.
- it widens knowledge and reduces tension.
Unit 3– Tourism & Travel Services 26
1. Tourism and Standard of living:
- visit of foreigners affects living pattern of people.
- relationship with citizens of host country have effect on
life and attitude of people.
2. Tourism and Passport to Peace:
- it is the major source for peace, harmony in world.
- barriers of suspicion and other problems among nations
will go for break down.
- it contribute open world and free movement of culture
will benefit all mankind.
3. Tourism and International Understanding:
- travel far off lands will gain insight into customs,
traditions, perceive unity of human society.
- it is the sum total of achievements, expression and way of
acting and thinking. 27
- it creates goodwill for a country and tourists and reflect
social conditions.
- tourists come on contact with people leads to sharing of
ideologies, information and culture.
- tourists carry back experience, habits and new outlook of
life.
4. Tourism and Social Integration:
- it fosters a feeling of love, understanding and goodwill
and generates international emotional integration.
- it accompany cultural exchange and cultural enrichment
of travel.
- cultural factors attracts tourists to various historical
monuments.
- it has educational and cultural significance.
Unit 3– Tourism & Travel Services 28
5. Tourism and Regional Growth:
- it generates economic growth in region of country and
reduce regional imbalance within a country.
- it is localized in economically backward zones with
sources of production.
- expansion of tourism plays vital role in development of
process in backward regions of country.
6. Tourism and other factors:
- it awakens the senses and hightens the awareness of
one’s one milieu.
- it is to develop more tolerance for cultures and rich in
personal experiences.
- it influenced by contact and culture observed in countries
and increased appreciation for qualities of life in society.
Unit 3– Tourism & Travel Services 29
MARKET SEGMENTATION INMARKET SEGMENTATION IN
TOURISMTOURISM
Market Segmentation:
“Market Segmentation is the process through which
potential customers with similar needs and
characteristics are grouped together so that a
tourism organization can apply marketing strategies
for the selected market segment efficiently.”
- identifying tourism customers and deciding on
how to meet their wants and needs.
- learn more about the customers.
- making the heterogeneous market into a
homogenous market.
Unit 3– Tourism & Travel Services 30
Marketing Objectives for each segment:
Objectives serve a number of functions including:
i) Guidance for developing marketing mixes for different
target markets.
ii) Information for allocating the marketing budget between
target markets.
iii) A basis for objectively evaluating the effectiveness of the
marketing mixes (setting standards).
iv) A framework for integrating the different marketing
mixes into the overall marketing plan.
The target market objectives are:
i) be expressed in quantitative terms.
ii) be measurable.
iii) specify the target market and
iv) indicate the time period. 31
WHY MARKET IS SEGMENTED?WHY MARKET IS SEGMENTED?
 Travel Market is too large to reach efficiently.
 Travel Market is to diverse to communicate.
 Breaking up the market will make it easier to
manage.
Benefits of Market Segmentation:
 Understand the needs and wants of customers.
 Allocate marketing expenses efficiently.
 Further develop products or services.
 Develop marketing strategies more precisely.
Unit 3– Tourism & Travel Services 32
IDENTIFYING MARKETIDENTIFYING MARKET
SEGMENTATIONSEGMENTATION
 WHO – who are in the market segment that
we would like to have?
 WHAT – what are their requirements?
 WHEN – when do we promote to our market
segment?
 WHERE – where do we promote the
product? Through which distribution channel?
 HOW – how do we develop marketing
strategies to reach the market?
Unit 3– Tourism & Travel Services 33
WAYS TOWAYS TO
SEGMENT THESEGMENT THE
MARKETMARKET
• Location of residence
• Demographics
• Equipment
ownership
• Important product
attributes
• Lifestyle attributes
SPECIALIZEDSPECIALIZED
TOURISTTOURIST
SEGMETNSSEGMETNS
1. Business &
Professional Travelers
2. Incentive Travelers
3. SMERF Groups
(Social, Military,
Education, Religion and
Fraternal)
4. Mature Travelers
5. Special – Interest
TravelersUnit 3– Tourism & Travel Services 34
Unit 3– Tourism & Travel Services 35
CRITERIA USED FOR DIVIDINGCRITERIA USED FOR DIVIDING
MARKET SEGMENTSMARKET SEGMENTS
a) Geographic Segmentation – grouping potential customers
based on their location, oldest and simplest basis for market
segmentation.
b) Psychographic Segmentation – grouping on how they live,
their priorities, their opinions, their attitudes and their
interests.
c) Demographic Segmentation – gender, age, ethnicity,
occupation, educational level, income, household size and
family situation.
d) Socio-Cultural Segmentation – religion, social class, family
life style, status.
e) Product – Related Segmentation – benefits people seek in
the good or service, the amount of good or service used and
degree of company loyalty. 36
Unit 3– Tourism & Travel Services 37
MARKET SEGMENTATION DECISIONMARKET SEGMENTATION DECISION
PROCESSPROCESS
Step 1: Select Segmentation Approach.
Step 2: Create detailed profile of segment.
Step 3: Forecast market potential of each segment.
Step 4: Estimate likely market share of each segment.
Step 5: Decide which
segment to target and
design appropriate
marketing mix.
Unit 3– Tourism & Travel Services 38
MEASURES FOR TOURIST SATISFACTIONMEASURES FOR TOURIST SATISFACTION
Words of mouth
communication
Words of mouth
communication Personal needsPersonal needs Past ExperiencesPast Experiences
Expected ServiceExpected Service
Perceived ServicePerceived Service
10 determinants of
service quality
•Access
• Communication
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Securities
• Tangibles
• Understanding /
knowing the customer
10 determinants of
service quality
•Access
• Communication
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Securities
• Tangibles
• Understanding /
knowing the customer
Unit 3– Tourism & Travel Services 39
MEASURES FOR TOURISTMEASURES FOR TOURIST
SATISFACTION EQUATIONSATISFACTION EQUATION
Actual Service > Expectations =
Actual Service = Expectations =
Actual Service < Expectations =
Unit 3– Tourism & Travel Services 40
TOURISM MARKETING MIXTOURISM MARKETING MIX
 Tourism and Travel differs from tangible goods as it is a
base for service business.
 It depend on customer profile, attributes of tourist
destination, social factors and Government policies as
below:
Customer Profile: It includes –
 Age, Gender & Status of the travellers
 Occupation & Income of the travellers
 Psychological of the tourist
 Country of his residence
 No. of previous visits
 Travel motivation
Unit 3– Tourism & Travel Services 41
Attributes of tourist destination: It could -
i) Be of historical importance.
ii) Have a natural resource or artistic landscape.
iii) Have an unique resource created there.
iv) Be of religious importance.
v) Be of adventurous nature.
vi) Be a shopping paradise.
Social factors: It includes –
 attitude of local inhabitants towards tourism and
 local culture and customs like music, cuisines & folklore.
Government Policies and Actions: It covers –
 policy related to public utility services (health, safety, etc).
 security arrangements made by the Government.
 taxation policy and provision of transportation.
Unit 3– Tourism & Travel Services 42
Tourism Typology:
Unit 3– Tourism & Travel Services 43
Criteria Type of Tourism
Direction of traffic flow Inbound, outbound
Geographic distribution International; Intra – regional, Domestic
No. of tourists Mass, Selective
Economic class of
tourists
Affluent, Budgetary
Intensity of Impact Hard, soft
Type of tourist
destination
Mountain, Desert urban, beach / Coastal,
island
Planning strategy Sustainable, Responsible Alternate,
selective, appropriate
Planning Thrust Eco, Rural, urban, Heritage, Community
involvement
Unit 3– Tourism & Travel Services 44
Criteria Type of Tourism
Tourist Activity
perception
Blue, White, Green
Tourists Motivations Pleasure, Leisure, Recreation,
Business, Adventure, Nature, health,
Sports, Spiritual, Ethnic, Sociological,
Cultural, Wildlife, Conference &
Convention, Shopping
Tourist Demographics
i) Age ii) No. of
tourists
Young, Mainstream, Old age, Mass,
Selective
Season Summer, Monsoon, Winter
Seasonality Peak, Lean, Off
Miscellaneous Elite, Incentive, Social, Agri, Farm,
Ranch
Difference between Travel and Tourism and other tangible
products:
i) Such intangible products can’t be touched.
ii) Precise standardization of travel and tourism product is not
possible.
iii) There is no transfer of ownership of travel and tourism
products to tourists.
iv) Travel and tourism products can’t be patented.
v) The production and consumption of these products are
inseparable.
vi) There are no inventories of these products.
vii) Tourist is part of production process so delivery system
must go to market or customer.
viii) Maximum time and month is spent on transport.
Unit 3– Tourism & Travel Services 45
Marketing and Tourism:
Unit 3– Tourism & Travel Services 46
Marketing and Tourism is to be understood as a systematic
and co-ordinated execution of business policy by tourist
undertakings whether private or state owned, at local,,
regional, national or international level to achieve the
optimum satisfaction of the needs of identifiable consumer
groups and in doing so to achieve an appropriate return.
- Krippendorf
Marketing and Tourism is to be understood as a systematic
and co-ordinated execution of business policy by tourist
undertakings whether private or state owned, at local,,
regional, national or international level to achieve the
optimum satisfaction of the needs of identifiable consumer
groups and in doing so to achieve an appropriate return.
- Krippendorf
Kotler defines a product as, “Anything physical
objects, services, persons, places, organizations and
ideas that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a
want or need.”
Kotler defines a product as, “Anything physical
objects, services, persons, places, organizations and
ideas that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a
want or need.”
The tourism products can be understood on two levels:
i) It is combination of all service elements consumed by the
tourist from the time he / she sets off home and returns
back.
ii) Explicit products such as attractions, accommodation,
transport and other facilities are elements of total tourism
product.
The total tourism products analyzed as –
a) Attractions:
- it determines the choice of tourist to visit one destination
rather than another.
It includes –
i) natural attractions like landscape, beaches and climate.
ii) historic, new townscapes, attractions like Disney land.
iii) cultural festivals, museums, theatre & cultural shows.47
b) Accessibility:
- it relates to mode of transformation to destination.
- it includes transport like airports, harbours, motor ways,
rail networks, technology.
- it include cost, convenience and speed for success of
every destination.
c) Destination facilities:
- the absence of these facilities may deter the tourists from
travelling to enjoy attraction.
- these facilities are elements within the destination and
built up needs and wants of potential visitors.
- it includes accommodation, restaurants, cafes and bars,
retailing and tax at destination.
Unit 3– Tourism & Travel Services 48
The tourist products experienced by following components:
a) Accommodation:
- it provides over night stay facilities for visitors on
occasional basis.
- it includes hotels, boarding houses, motels, holiday
villages, camping sites, etc.
b) Natural and Other resources:
- it refers to natural scenery, springs, falls, beaches,
mountains and good climate, social cultural, historical and
religious attractions, theme parks, etc.
c) Recreation facilities:
- it includes the provision of indoor and outdoor recreation
and entertainment facilities at the destination.
Unit 3– Tourism & Travel Services 49
d) Services:
- it includes all services which facilitate entry, stay and exit
of tourists at a spot.
- it includes public utility services, health safety facilities,
etc.
e) Transport:
- it includes air, rail, road and water transport system to take
tourists from one place to another place.
f) Food and beverages:
- it includes different kind of food and beverage availability
including international cuisines.
g) Other attractions:
- it includes shopping malls and retailing.
Unit 3– Tourism & Travel Services 50
Marketing Mix of Tourism:
Some of the major marketing mix aspects of tourism services
are:
a) Price:
- it is the sum total of cost of product elements like travel,
accommodation and several other services at destination.
- it is not static and changes with distance travelled,
accommodation, season year, etc.
b) Promotion:
- it persuade and motivate potential customers to purchase
tourist services.
- through brouchers customers can know the quality, value
for money, status and other relevant information.
- it includes sales promotion, advertising, exhibitions, travel
marts, films and videos, sponsorships, etc. 51
c) People:
The International Union of official Travel Organization
(IUOTO) has defined a tourist as “any person travelling for
a period of 24 hours or more in country other than in which
he usually resides.”
The following person are considered as tourists –
i) persons travelling for pleasure, domestic reasons,
entertainment, etc.
ii) person travelling for meetings, diplomatic and religious.
iii) person travelling for business purposes.
The following categories are excluded –
a) persons arriving with or without a contract take up an
occupation.
b) students and youngsters taking boarding of school.
Unit 3– Tourism & Travel Services 52
c) persons domiciled in one country and working in an
adjoining country.
d) travellers passing through country without stopping even
if journey takes more than 24 hours.
The purpose of journey of these tourists can be classified
under one of the following headings:
 leisure which includes vacation, holidays, health, religion
and sports.
 business meeting, family reunion.
d) Process:
- the process from distribution of service and payment
should be speedy, simple and convenient.
- information technology allows tourism to access easily
and relevant information and activities like, customer
reservations, receiving payment, etc.Unit 3– Tourism & Travel Services 53
MANAGEMENT OF TRAVELMANAGEMENT OF TRAVEL
SERVICESSERVICES
- they provide services to tourist on behalf of their principal
(original service provider).
- they normally don’t
charge fee from clients and get
commission for their work.
- the persons working for
travel agencies need to know
and communicate information for customer.
A travel agent is one who acts and do work on behalf
of a principal (i.e.) original service provider like
hotel, airline, transport or shipping company. Travel
agent may be called as retail sector of the distribution
chain.
54
I. Travel Agencies and Travel Organizations:
Travel Organization:
“Travel organizations are
supportive institutions for the
tourism industry and
supported by both government
and public organizations for
the growth of tourism.”
- private organizations support by providing like finance,
marketing, publication of guide and guide services.
- government support by way of providing visa and
passport, tourism promotion councils, tourism centre to
give required information to tourists, establish publicity
offers and educate and tourists operators and guides.
Unit 3– Tourism & Travel Services 55
Functions of Travel Organization: (main futures)
Some of the main functions of travel organizations
are:
 provide transportation as required by tourists
and they have own means of transport / tourist
buses.
 provide attractive destination packages.
 arrange for hotel reservations at different places.
 arrange for food, breakfast and other
requirements.
 provide connected service with the package.
 arrange tour program, varying from two days to
several weeks depending upon needs of tourists. 56
II. Tour Operations:
“Tour operations refer to the various types of package tours
conducted by travel services and agencies.”
- it includes both domestic and global travel for holidaying
and sight seeing.
- Thomas cook, Cocks and Kings and others are playing a
significant role in providing package tours in global tours.
Tour Operators:
“A tour operator is responsible for delivery of service required
by the customer.”
- they supply services through agents or through their office.
- approach customers directly through mail and develop no. of
package known as tour programmes and offer to customers.
- they act as member of channel called ‘middlemen’.
Unit 3– Tourism & Travel Services 57
Travel Guides:
“Travel guides also called tourist guides help them to
give required information regarding a place, monument
or on other places the tourist is visiting tourist
organization and tour operators give due to importance
to the role of guides since they are a part of package.”
- there are no. of places to visit, so they need
explanation regarding historic information is required.
- as a tourist guide, he has to know full information
about the tourist spot and their skill in guiding the
tourist.
- great care is important for tourist guides by tour
operators for making the tour successful.
Unit 3– Tourism & Travel Services 58
III) Airline Services Marketing:
 the development of air travel is the result of dedication and
research by all men in all times.
 this parameters measure economic country at which the air
transport service is growing.
 both private and public sector operations are looking for
innovative marketing practices. (E.g.) Air Deccan, a
private airline come out with “Low cost travel” to make
more people to air travel.
The two vital factors catch attention of observers like:
i) Technological sophistication which substantially
determine the quality of service.
ii) Managerial proficiency plays incremental role in making
the services competitive and consumer oriented.
Unit 3– Tourism & Travel Services 59
Service Mix of Airlines:
Airlines provide different types of services like –
a) Passenger services – national and international.
b) Goods carrying services. & c) Mail Services.
d) Social services such as air operations in case of floods,
earthquakes, accidents and other natural calamities.
e) Defence air services for both defence and civil services.
Airlines assist with two major functions like –
i) Operational functions – it is covered by Government of India
(GOI) and its services such as Indian Airlines, Air India
International. (also some private operators)
ii) Infrastructural functions – it is covered by National Airport
Authority (NAA) and International Airport Authority of India
(IAAI).
 Domestic services operated by private airlines like Deccan
Airways, jet Airways, Sahara Airlines and Go Air. 60
Marketing Mix:
a) Product – Mix:
It considered three major products like –
* Passenger traffic – it includes regular passenger, pilgrim
services, special flights, other specific programmes such as
international & domestic business conferences, etc.
* Cargo carrying and Mail services.
- the operators have to plan the operation schedule to make
product more attractive.
b) Price – Mix:
- airline services has high cost of operation.
- price is determined by the demand and supply of product.
- pricing strategy has to consider marketing behaviour and
consumer behaviour for optimize the air traffic.
- fixing a reasonable and stable price will develop the air travel
culture. 61
The following aspects are considered while fixing the price
for traffic –
 demand level of traffic.
 supply of aircrafts and their using time.
 infrastructural facilities for safety operations.
 running expenses like fuel, core expenses and peripheral
operations.
 seasonal fluctuation of air traffic.
 description on aircrafts
 some percent of contingency expenses.
 strategies of competitors in price fixing model.
 capital repayment in long run.
Unit 3– Tourism & Travel Services 62
c) Promotion Mix:
- air travel by Indians gradually developed due to
restructured by IT enables service.
Some of the promotional activities are:
i) Advertising – there is lot of issue regarding selection of
media, every print media is attractive. In media, some
factors like -
- layout of advertising.
- message that enhances both operator and country.
- advertising budget & creative advertising concept.
- promotional measures.
- latest development in printing technology.
- peripheral services.
- mode, scale and moment of advertising.
Unit 3– Tourism & Travel Services 63
ii) Personal selling – it is described as art of influencing,
stimulating and sensitizing the impulse behaviour.
- it is the sub – mix of promotional mix of airline
promotion which contains travel agents, tour operators,
transport operators, travel guides and receptionists.
- the service charge payable to service organizations are
regulated by IATA and NAA.
- people working in reservation counters has incremental
role in promoting the business.
iii) Publicity – it is powerful mix of promotion mix and the
channel sensitizes the persuasion process with help of print
media.
- travel agents, airline organizations should develop good
relationships with news agencies, publishers and other print
media people.
Unit 3– Tourism & Travel Services 64
iv) Sales Promotion – it takes place in a situation when sales
targets have to be achieved in specific time period.
- this is introduced when aggressive promotion activity
taken to reach targets.
- it will resort to sales promotion activity with very
attractive incentives to all business.
- sales promotion activity will be continue for business
development.
- it maintains the achieved business and other service
activities.
- airline business promotion takes place by travel agents,
tour operators, transport operators, all of them who process
the services.
Unit 3– Tourism & Travel Services 65
v) Network marketing – the promotion takes place by word of
mouth.
- people work for airlines continuously speak about airlines
quality and service.
- they motivate users to travel and this is informal but
effective channel of promotion.
vi) Telemarketing – it plays significant role in service
promotion.
- this play an outstanding role in informing, sensing and
persuading potential air travel users.
- this provides latest information about travel
organizations.
vii) Other components like Web marketing – playing
effectively to promote airline business.
- they create own website to provide information and makeUnit 3– Tourism & Travel Services 66
IV) Rail services:
 Indian Railway Act provides the rail transport and Indian
Railway Board is the authority which looks after complete
railway transport system.
 Railways offer different types of services to different
categories of users and applying marketing mix based on
needs and requirement of people.
Indian Railways (IR) are performing two major roles:
i) perform as a public utility concern
ii) running the system as a commercial undertaking.
 this is convenient mode of transport for long distances and
suitable for carrying heavy and bulk goods like iron, steel,
minerals, etc.
 it link various regions of economy & increase mobility of
people. Unit 3– Tourism & Travel Services 67
 first train steamed off from Mumbai to Thane in April
1953 with distance of 34km.
 in 2004 – 2005, it comprising three gauges like –
* Broad Gauge * Meter Gauge * Narrow Gauge
 increase in rail transport was due to up gradation of
technology and improvement in productivity.
The major issues of railway development are:
i) Technology up gradation.
ii) Expansion of network.
iii) Financial arrangement.
iv) Capital restructuring.
v) Tariff policy.
vi) Passenger services and freight movements.
Unit 3– Tourism & Travel Services 68
Service Mix:
Service Mix of Indian Railways are:
Major Services:
i) Passenger Traffic – no. of sub – services are provided,
which is based on time, passenger classification and special
services.
On time basis – i) Super fast express, ii) Fast express, iii)
Fast passenger trains and iv) Shuttle trains are in
operation.
- passenger in each train get different services paid based on
price differentiation like First class, A/C Coaches and II
class coaches.
ii) Freight carrying – carrying goods and distributing it.
Unit 3– Tourism & Travel Services 69
Marketing Mix of Railways:
- it is the only segment that railways have to generate funds
through passenger and freight carrying.
- marketing of railway services is the way for increasing
earnings, satisfying the users and improving base for
securing safety.
a) Product Mix:
- it provide passenger service and freight carrying.
- it is a public monopoly, but it faces competition from
State Road Transport Corporations (SRTC) and Inter-
Road Transport Agencies.
- designing the product mix of railways services will bring
fast changing in business environment and changes in the
expectations.
Unit 3– Tourism & Travel Services 70
Product Mix of Railways
Unit 3– Tourism & Travel Services 71
Passenger
Traffic
Mail / Express, AC / I Class and II Class
Sleeper coaches, Passenger train, free
service for certain class
Freight Traffic
Revenue earning
Bulk carrier service
Railway Mail
Services
Communication carrier through out
the nation.
Pipe – Line
Services In parts of U.P., Gujarat and Assam
Advertising Selling different sensitive points
Consultancy
b) Price Mix:
- cost plus is one of the oldest and basic pricing methods
and any one of the pricing method ‘skimming price’ or
‘penetration price’ are adapted.
- since railway is a public utility services, so the price
should be within the reach of every one.
- in railways service, the price is fixed to generate certain
funds.
- the pricing principle in railway is “Charge what the
traffic will bear” (i.e.) there should not be unnecessary
burden to travellers.
- the price is based on based in category like First class
A/C, Second Class, sleeper class, etc.
Unit 3– Tourism & Travel Services 72
Based on this Pricing policies, the certain principles are:
i) Cost of service principle.
ii) Value of service principle (price based on service).
iii) Principle of differential charging (separate price for I
class, II class, etc).
iv) Principle of equal mileage rate (flat rate).
v) Principle of zonal charging (charging price for different
zones).
The following aspects are considered while fixing price –
 Fare and freight structure should be adjusted.
 Subsidized prices should be fixed for rail users only for
weaker sections.
 Average receipt for passenger km and average receipt.
 Unremunerative lines are required & unproductive
expenses are to be optimized. 73
c) Promotion Mix:
- it is a monopoly sector, but facing competition from roadways
and therefore it is inevitable for railways to promote its various
services.
The major components of promotion are –
i) Advertising – they have adapted print, broadcast and telecast
media.
- it is adapted to sensitize the messages, slogans and appeals and
provide good information system.
ii) Publicity – railways develop good relationship with public and
also channels develop good rapport with media people, leaders.
iii) Sales promotion – facilitates the users to understand the type
of facilities and services extended by railways.
iv) Other channels – personal selling, network marketing provide
strong base for developing an effective services.
Unit 3– Tourism & Travel Services 74
V) Road Services:
- it is the oldest form of transport and road network in India
is one of the largest in the world.
- India had 33,80,000 kms includes both surface and
unsurfaced road.
Indian roads classified into four categories –
i) National Highways – primary roads of India and connect
big cities and big industrial centres and maintained by
central government.
ii) State Highways – connect all important industrial, trade
and commercial centres of state and national highways and
maintained by state government.
iii) District Roads – link important industrial and market
places of district and local railway stations.
iv) Village Roads – roads are in rural parts. 75
Importance of road transport:
 they can easily connect any part of country, unlike
railways.
 it is complementary to railways by providing feeder
service.
 more flexible in operation compared to other modes of
transport.
 it can provide door to door services.
 chances of delay, damage or loss are less in road
transport.
 better means of transport to carry perishable articles
like vegetables, milk or fruits to reach market on time.
 it does not require heavy capital for operation.
 it is important in Defence Services of the country. 76
 it deals with 85% of passenger and 70% of freight
traffic, 40% by highways are carried by road.
 National Highways Development Project (NHDP)
converted 14279 kms into 4/6 lanes and it is the highest
projects within short time.
Some of the sub – projects of road transport are:
i) Golden Quadrilateral (G.Q) of 5846 kms connecting
four major cities of country like Delhi, Mumbai,
Chennai and Kolkata.
ii) North-South and East – West connecting Srinagar in
north to Kanyakumari in South and Silihar in east and
Porbandar in west.
iii) port connectivity and other projects.
Unit 3– Tourism & Travel Services 77
Service Mix:
- it can be used by pedestrians, animals, for bullock –
carts, horse – carts, camel – carts and also
mechanically driven like two wheelers, four wheelers,
etc.
- it is the property of speed and operational economy in
every region of country.
Service mix of road transport are:
i) Providing passenger services.
ii) Goods carrying services.
iii) Mail services.
iv) Special services
- service mix offered to users should contain “perceived
value” of users. 78
Marketing Mix:
- selling of transport services is difficult task and it can
carry problems from passenger side.
- it should be quality, time management in reaching
destinations, safety measures, attractive price and
infrastructure facilities, etc.
a) Product Mix:
It observes the following:
i) Regular passengers commuting to short and long distances.
They provide services on 24 X 7 time basis.
ii) Special package tours conducted by both private and
public sector operators for a) Pilgrimage, b) Sight seeing
holiday and c) other special purpose tours (Education,
industry tours).
Unit 3– Tourism & Travel Services 79
In cargo traffic, the product elements are:
i) Carrying goods to destinations by trucks of different size
and capacity, which is regular and routine.
ii) Bulk carrying of special items like gas, milk, petroleum
products and other raw materials, etc.
iii) Mail services.
b) Pricing Policy:
- basic and common policy adapted is “Cost + Margin”.
- the cost includes fuel charges, crew expenses, road
service, etc.
- both state and central government come out with price
policies of various goods and services produced in country
from time to time.
- transport service operators have to make profit for their
organizing effort. 80
- state road transport corporations have adhere to social
responsibility and huge payments are made for inputs used
for transport services.
- it is necessary to construct new roads in urban area and
providing quality road service.
- government have to go for public – private partnership for
road construction and rely on resources to be generated
through tax and pricing for services.
- private operators will fix price depend on quality of
service they offer and competition they face from other
operators.
- today there is a big boom in four wheeler vehicle segment,
also cars and luxury vans are used for tourists and price is
fixed based on transport services.
Unit 3– Tourism & Travel Services 81
c) Promotion Policy:
- advertising is effective tool in promoting transport
services.
- print media, television, short films for tourism promotion
are different modes in advertisement.
- personal selling, telemarketing, publicity, sales
promotion, network marketing are other modes for
promotion of road transport services.
- quality of service offered while promoting the road
transport services should be maintained.
- various promotion mix are the different components will
prove effective promoting transport services.
Unit 3– Tourism & Travel Services 82
d) Other mixes (Place, People and Process):
- this refer to proper location of service delivery points and
people involved in delivering the road transport services.
The following aspects are to be looked into regarding place – mix:
 promised services should reach users without any disturbance.
 time should be managed in reaching destinations.
 service offered and service delivered should match.
 service delivery points like bus stations, terminals, workshop,
etc.
 infrastructural facilities such as electricity, communication
system, etc.
 safety and provisional facilities in bus stations.
 Other services like healthy restaurants and food, medical
centres, sanitation, water supply, etc.
Unit 3– Tourism & Travel Services 83
The following points are regarding people –
- team of dedicated, professional, value based personnel
contribute for quality of service.
- human resources working on road transport system should
continuously trained to show positive attitude in the work.
- this service develop people on priority basis.
Some of the activities regarding process are –
- each and every service should not have any difficult
situation.
- no. of activities in providing services should be less.
- formulating straight processes for providing services will
facilitate better time management and cost reduction.
Unit 3– Tourism & Travel Services 84
vi) Water Transport Service: (Travel by Sea)
It is classified into i) Inland water transport and ii) overseas
transport service in form of shipping.
- it is mainly used for carrying cargo both in domestic and
overseas operation.
Inland Water ways:
- it has significant role in Indian transport system from time
to time.
- it consists of natural modes such as navigable rivers,
backwaters and artificial mode like canals.
The development of inland water ways are –
i) Improvement in productivity of assets.
ii) Developing trained and skilled manpower.
iii) Development of inland waterways with natural
advantage. 85
Shipping:
It has two categories:
i) Coastal shipping:
- the distance covered in coastal shipping is 7560 kms.
- 13 major ports and 187 operatable minor and
intermediate working ports.
- it is the most energy efficient and cheapest mode of
transport for carrying bulky and heavy goods like iron ore,
coal iron, steel, etc.
- coastal service progress are very slow due to reasons like
i) port delays, ii) poor turn around time of coastal ships, iii)
lack of mechanical handling facilities, iv) overaged vessels,
v) imbalance in coastal traffic movement.
Unit 3– Tourism & Travel Services 86
ii) Overseas Shipping:
- shipping activity has gained importance due to its role in
India’s International trade.
- 75% of country’s trade volume is moved by sea.
Some of the developmental measures are modernization of
fleet, replacement of overaged fleet, acquisition of cellular
container ships, product carriers, self – sufficiency in
tanker fleet.
Ports:
- it has 13 major and 187 minor port managed by Central
and State governments.
- the capacity of cargo handling by Indian ports has
increased from 20 million tones to 397.5 million tones.
- “Nhava Sheva” (Jawaharlal Nehru Port) are major
developmental activities took place in port project. 87
TOP TRAVEL AGENCIES IN INDIATOP TRAVEL AGENCIES IN INDIA
S.No. Name of the Travel
Agencies
Logo Website
1 Cox & Kings www.coxand
kings.com
2 Thomas Cook www.thomascook
.in
3 SOTC www.sotc.in
4 Kesari Tours www.kesari.in
5 Club Mahindra
Holidays
www.clubmahind
ra.com
Unit 3– Tourism & Travel Services 88
S.No. Name of the Travel
Agencies
Logo Website
6 Expedia www.expedia.co.i
n
7 Yatra www.yatra.com
8 Goibibo www.goibibo.com
9 Make my trip www.makemytrip
.com
10 Travel Guru www.travelguru.c
om
Unit 3– Tourism & Travel Services 89
TRAVEL AGENCIES INTRAVEL AGENCIES IN
BANGALOREBANGALORE
1. The Violet grace – Kalyan Nagar.
2. Hoysala Tours & Travels – Tumkur Road.
3. Fly N reach Holidays – Koramangala.
4. 7D Services private Limited – Wilson garden.
5. Mountain Holiday Makers – Kalyan nagar.
6. Yes Kay World Tours Bangalore private limited –
Kammanahalli.
7. Aero Traveller – Gandhi Nagar.
8. Just Travels – Majestic.
9. Sumukha Travels – Basaveshwara Nagar.
Karnataka Tourist Forum Membership FormUnit 3– Tourism & Travel Services 90
RECENT TRENDS IN TOURISMRECENT TRENDS IN TOURISM
Some of the interesting micro trends across evolving the Indian travel
landscape:
1. Advent of hostels:
- it is a part of Indian tourism story and always been low budget
options.
- it offers cheap, basic hotel experience, more accessible for low
budget traveller.
- it seen as mode of self realization, exploration and experiences
different from of lifestyles.
Unit 3– Tourism & Travel Services 91
2. Growth of boutique hotels:
- privately run small hotels, arty hotels with just a few rooms.
- it is increased in recent years, particularly attracting foreign tourists
at all levels.
- it is key element in India’s plans to boost tourism and providing
opportunities for tourists to be more engaged.
- it is severely abused and misused by the ranks of private, and often
state – supported corporate hoteliers.
Unit 3– Tourism & Travel Services 92
3. New Destinations:
- it is willingness to explore new regions, amongst both
younger upper – middle class Indians and tourists from
overseas. (E.g.) Kashmir and Gujarat, Rajasthan – pali
(which improves airports, national parks & safari options.
- rural villages now gaining more popularity, both
representing authentic, safe and relatively accessible.
Unit 3– Tourism & Travel Services 93
4. Adventure sports opportunities:
- it is incredible with the length of India’s coastline, which gives
interior and staggering beauty like Himalayas.
- it is the passion for adventure sports now apparent in young Indians.
- it covers stunning mountain regions and split as high as “90%
Indians and 10% foreigners”.
(E.g.) Kite surf, white water raft in rishikesh, bike riding in beach, etc.
Unit 3– Tourism & Travel Services 94
5. Visa on arrival:
- fast developing and government policies
in India are key for growth of tourism.
- arrival of visa to tourism over 40
countries in 2015 and expand this to around
100 nationalities over next five years.
6. Visitors to India:
- largest percentage of travellers from overseas come from USA and
UK, with Canada, Malaysia, Japan, France and Russia are heavily
represented.
- 22 million people are most interested in south – east Asia and
Europe and broadening their horizons and venturing to sub –
continent.
- it has strange mix of efforts of Indian Tourism board and played a
major role in upcoming years.
Unit 3– Tourism & Travel Services 95
7. Other changes happening within India:
- it is the largest service industry globally in terms of gross revenue
and foreign exchange earnings.
- it is major social phenomenon and driven by social, religious,
recreational, knowledge seeking and business interests and motivate
human for new experience, adventure, education and entertainment.
- it stimulates other sectors in the economy.
- rise in levels of income leading to higher levels of discretionary
income with increase in leisure time that benefit tourism industry.
- more innovative approaches to marketing and promotion and
creation of new products are pulling the demand to the destinations.
- the growth of specific segments for instance ecotourism is booming
based on new customer needs and attitudes.
- the increased level of economic activity led to an increase in
business travel and also growing trend in international mobility.
Unit 3– Tourism & Travel Services 96
Tourism Industry had grown massively for following reasons:
a) Advance in travel technology – wide range of travel as a tourist are
widely available.
- motorways, airlines have increased the volumes.
b) People have more disposable income now – this is about income that
people have to send on themselves due to salary rises.
- many families have two income earners and have fewer kids and
often have a car, which increases likelihood of people.
c) The availability and type of holiday has increased – mass tourism
and packages holidays opened up markets to huge numbers of people.
d) The Media – newspapers ‘holiday section’, TV shows can show
enormous choice on offer.
e) Advances in Information Technology – they are to view, evaluate,
book cheap and comfortable hotels and other facilities. (E.g.) online
sites makemytrip.com, travelguru.com, etc.
f) Increased competition has benefited customer – increased
competition among travel agencies and hotel have benefitted
customers. 97
Different forms of Tourism
1. Medical / healthcare tourism:
- also known as health tourism & most important segments
in tourism industry.
- it provide services such as complex surgeries, joint
placements, cardiac, dental and cosmetic surgeries.
Some factors contribute to growth of tourism includes –
* Low travel costs.
* significant reduction in travel costs and travel to other
countries for medical treatments.
* high growth of world class medical
treatments in developing countries.
* health care facilities.
Unit 3– Tourism & Travel Services 98
- medical tourism has done exceptionally in India and its
growing with rising of health care costs.
- India has highly trained and specialized doctors,
healthcare infrastructure facilities, availability of
alternative forms of treatment such as ayurveda, yoga,
siddha and naturopathy.
Benefits of medical treatment and medical tourism are:
 world class treatment at fraction of cost.
 patients from more than 55 countries availing treatment.
 medical technology, equipment, facilities and healthcare
infrastructure.
 Indian doctors recognized among best globally.
 various medical treatments like knee replacement,
cosmetic surgery, cardiac care, etc.
 issuing ‘Medical Visa’ for patients and attendants.
99
2. Wellness Tourism:
- it is a sub – segment of medical tourism.
- the primary purpose of this tourism is to achieve, promote,
maintain good health.
- wellness activity like yoga, siddha and naturopathy are
Indian spiritual philosophy.
- it includes ayurvedic therapies, spa visits and yoga
meditation.
- the government is promoting this tourism with publicity
and promotional activities.
Unit 3– Tourism & Travel Services 100
3. Adventure Tourism:
- travel for the aim of exploration or travel to remote, exotic and
hostile areas are adventure tourism.
- it refers to performance of acts, effort and degree of risk or
physical danger.
- the activities are mountaineering, trekking, bungee jumping,
river rafting, etc.
- it offers diverse
Topography, climate, etc.
(E.g.) Mountain region –
Rock climbing, trekking,
Skating.
Rivers – river rafting, Canoeing,
etc.
- government provide financial assistance for development of
adventure tourism.
101
4. Heritage Tourism:
- it is defined as ‘travel undertaken to explore and
experience places, activities and artifacts represent the
stories and people of the past and present.’
- it is oriented towards to cultural heritage, historical or
industrial sites, religious travel or pilgrimages.
- rich heritage is reflected in temples, majestic forts,
pleasure gardens, religious monuments, art galleries.
Unit 3– Tourism & Travel Services 102
5. Ecotourism:
- also known as ecological tourism, is travel to natural areas
to appreciate the cultural and natural history of
environment, not disturbing the integrity of ecosystem and
creating economic opportunities that make conversation
and protection of natural resources.
- it also minimizes wastage and
environmental impact through
sensitized tourists.
India offers several eco – tourism like:
 Biosphere reserves, Mangroves.
 Coral reefs, Deserts, Caves.
 Mountains and Forests, Flora & fauna, Seas, lakes &
rivers.
Unit 3– Tourism & Travel Services 103
The basic principles to follow in ecotourism are:
 minimize the impact.
 build environmental and cultural
awareness and respect.
 provide positive experiences for
both visitors and hotels.
 provide financial benefits and empowerment for local
people.
 support international human rights and labour agreements.
(E.g.) Himalayan region, Kerala, North East India, Andaman &
Nicobar and Lakshadweep Islands, Rishikesh, Pondicherry,
etc.
It consists of –
Eco parks, Eco places, Eco fauna, Eco flora & Eco destinations,
Eco trivia, Eco treks & Eco adventure.
Unit 3– Tourism & Travel Services 104
6. Rural tourism:
- it shows rural life, cultural and heritage of rural
locations, local community and interaction between tourists
and locals for enriching tourism experience.
Some of the characteristics are:
 it is experience oriented.
 locations and sparsely populated.
 it deals with seasonality and local events.
- Ministry of Tourism undertook “Explore Rural India”
campaign to give tourists a chance to experience life in rural
India.
Unit 3– Tourism & Travel Services 105
7. Wildlife Tourism:
- it is one of the fastest segments of tourism, involves to
different locations to experience wild life in natural
settings.
- it has numerous species of birds, mammals, reptiles,
amphibians and plants & animals.
- the government launched wildlife package for travellers,
which includes wildlife photography, bird watching, jungle
safari, jeep safari, ecotourism, etc.
- it has more than 70 national
parks and 400 wildlife sanctuaries.
- hotels and resorts provide wildlife
enthusiasts, circuit tourists and
fascinating wildlife experiences
within India. 106
8. MICE Tourism: (Meetings, Incentives, Conferences and
Exhibitions)
- it caters to business travellers, mostly corporates, business
meetings, international conferences and conventions, events
and exhibitions.
(E.g.) Hong Kong, Malaysia and Dubai are top destinations for
MICE tourism.
- it combines annual business meetings and conferences with
events.
- there are world class convention centres like Le Meridian,
Hyderabad International Convention centre, etc.
Unit 3– Tourism & Travel Services 107
Unit 3– Tourism & Travel Services 108
Unit 3– Tourism & Travel Services 109

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Service Management Tourism and Travel Services

  • 1. UNIT 3UNIT 3 MR.T.SOMASUNDARAM ASSISTANT PROFESSOR DEPARTMENT OF MANAGEMENT STUIDES KRISTU JAYANTI COLLEGE (AUTONOMOUS) BENGALURU Unit 3– Tourism & Travel Services 1
  • 2. UNIT 3UNIT 3 Introduction; Concept & Nature of Tourism; Significance & Impact of tourism; Market Segmentation in Tourism; Tourism Marketing Mix Management of Travel services; Role of Travel Agencies & Travel Organization; Tour Operations; meaning and services. Unit 3– Tourism & Travel Services 2
  • 3. INTRODUCTIONINTRODUCTION  Tourism as a phenomenon means the movement of people both within and across the national borders.  It creates a demand and provides a market for number of different industries.  All the economic activities involved in tourism may be called as Tourist Industry. (Hotels, Travel & catering, retail shops, gifts, etc.  It is sum total of providers of tourist industries.  It is a pleasure activity implying a use of readily disposable incomes and one’s own free time. 3
  • 4. Definition: “Tourism is defined as the temporary movement to destinations outside the normal home and workplace, the activities undertaking during the stay and the facilities created to cater for the needs of tourists.” - Mathieson & Wall (1982) “Tourism is defined as the temporary movement to destinations outside the normal home and workplace, the activities undertaking during the stay and the facilities created to cater for the needs of tourists.” - Mathieson & Wall (1982) “Tourism is defined as movement of people to different destinations having two key elements – journey and stay, both of which come off not within but outside the normal area / place of domicile and work.” “Tourism is defined as movement of people to different destinations having two key elements – journey and stay, both of which come off not within but outside the normal area / place of domicile and work.” Unit 3– Tourism & Travel Services 4
  • 5. The main elements of tourism are: i) It comes into being out of movement of people to, and their stay in various destinations. ii) It has two essential factors, (i.e.) travel to the destination and stay at the destination. iii) Travel and stay occur outside the typical place through which people travel and stay. iv) Movement of destinations is temporary nature and get back home within a short span of time (few days, week or months). v) Purposes of visit to destinations can be any apart from residence or employment. Unit 3– Tourism & Travel Services 5
  • 6. McIntosh & Goeldner (1990) identified four perspectives – a) Tourists looks for diverse psychic and physical experiences and satisfaction from tourism activity. b) Business people behold tourism as opening to make profit by providing goods and services in tourist market. c) Government looks tourism as a capital and good factor for economy. It gives income and employment generation, international tourism, tax, etc. d) It is consider as cultural and employment factor. In Sanskrit literature, three terms for tourism are: i) Paryatna: going out for pleasure and knowledge. ii) Desatna: going out of country primarily for economic gains. iii) Trithatna: going out to places of religious merits. Unit 3– Tourism & Travel Services 6
  • 7. CHARACTERISTICS OF TOURISMCHARACTERISTICS OF TOURISM i) It is a complex phenomenon and amalgamation of phenomenon and relationship rather than a single one. ii) Relationship arise from movement of people to various destinations. iii) It is different from those of resident and working places. iv) It is non – remunerative activity. They visit to destination not for paid work, it is part of business or vocation. v) Movement of people is temporary and short duration. vi) It is multi – dimensional activities like hotel, travel, tour operators, shopping, etc. vii) It is a service industry and engaged in job in hotels, catering, transport, travel agency, etc. viii) It changes ideas of people and motivates the customers. ix) It is transformed from Mass, Rigid and Packaged tourism (MSRP) to present neo – tourism like Flexible, Segmented and Diagonally Integrated (FSDI). x) It is related with long term environmental losses. (overcrowding) 7
  • 8. BASIS OF TOURISM (ESSENTIALS)BASIS OF TOURISM (ESSENTIALS) 1. Freedom to travel (govt. rules & procedures, schemes, etc.) 2. Education (formal education to be potential tourists). 3. Per Capita Income (high per capita income provide bulk of tourists). 4. Awareness (great awareness about the places) 5. Professional Capabilities to sell pleasure travel (spend money and time to travel for leisure and pleasure). 6. High standard of living (people spend their money and time on holidays). 7. Price frequency and speed of transport (high speed of transports leads growth in tourism). 8. Tourism promotion (enhance national growth of tourism, newspaper, magazines, TV plays vital role in spreading information about tourists place and travels). 8
  • 9. INGREDIENTS FOR TOURISMINGREDIENTS FOR TOURISM DEVELOPMENTDEVELOPMENT Some of the principal elements to promote tourism are: 1. Fine weather (weather conditions – ooty, shimla, etc). 2. Scenery (scenic beauty places, water falls, mountain scenery, etc). 3. Amenities (natural amenities – beach, sea, fishing, etc. & man made amenities – theatres, entertainment, etc). 4. Historical and Cultural factors (historical spot) 5. Accessibility (travel accessibility like air r railways). 6. Accommodation and Stay (hotel, restaurant to stay and provide food, etc). 7. Miscellaneous factors (local guides, country visited, currency restrictions, custom procedures, etc). Unit 3– Tourism & Travel Services 9
  • 10. COSTS OF TOURISMCOSTS OF TOURISM The main costs of Tourism are: a) Foreign exchange costs of capital investments in hotels. b)Cost of land & buildings. c) Investment in accommodation. (hotels, guest houses). d) State capital expenditure on infrastructure. e) Investment in transport services. f) Cost of other facilities like function room, swimming pool. g) Breakup of current operating costs. h) Import cost of goods and services used by visitors. i) Repatriable profits on foreign investments. j) Interest on foreign loans. k) Payments of foreign travel agents and tour operators. Unit 3– Tourism & Travel Services 10
  • 11. l) Expenditure by National Tourist Organization (Department of tourism , India Tourism Development Corporation) and travel agencies. m) Tourism investment schemes like tax exemption from custom duties and loans on reduced rate of interest. n) Foreign components in i) Fixed costs, ii) Current cost of maintenance and also revenue on rental, food sales, etc. The following are additional costs: a) Import licenses required by hotel industry for boarding and lodging, restaurant and entertainment. b) Payment in foreign exchange mostly on collaboration in hotel sector. c) Promotional and advertising charges to induce foreign tourists. Unit 3– Tourism & Travel Services 11
  • 12. EVOLUTION OF TOURISMEVOLUTION OF TOURISM  Travelling has been a characteristic feature of human society and lifestyle.  The origin of man’s faculty of walking and his curiosity about things far and away.  It is more of a luxury available to few who could afford time and money to travel.  Tourism is accepted as a part of lifestyle of large no. of people nowadays.  Main factors like increased leisure, higher income, better awareness and information, faster mode of transportation are contributions to the Tourism and travel.  In ancient Greek World, it is the evidence of tourist traffic particularly Olympic games and other festivals. Unit 3– Tourism & Travel Services 12
  • 13.  (E.g.) Greeks hosted international visitors during first Olympic games in 776 BC and Romans travelled for holidaying far away from home for enjoyment.  Each tourism was takes place for three purposes – i) For waging a war. ii) For purpose of business. iii) For religious resolve.  In 334 B.C., Asia Minor beginning with the help of Republican government, some 0.7 million tourists travelled to Turkey for season entertained like acrobats, animal feats, magicians.  Discovery of money by Sumerians (Babylonia) developed trade in beginning of 4000 BC to start modern era of travel.  In 149 BC, description of journey recorded on walls of temple of Deity Bahari at Luxor. 13
  • 14.  Travel in the early times especially in China and India, was mainly on account of Trade.  In middle ages, new universities like Bologna, Paris, Oxford has considered students travelling to centres of learning.  Renaissance group of tourists has searched of arts, beauties, wonders of nature, mountain and hills, snow clad mountain, etc has a pleasure of feelings.  In 18th and 19th century the advancement of railways and steam transport by sea was stimulated for tourist people.  Nowadays travel came with moderate hotels, boarding houses, photographs, maps, guide books and travel agencies for tourism development. In U.S., American Express introduced system of money orders and travellers cheques for tourister. Unit 3– Tourism & Travel Services 14
  • 15.  In 1919, many national organizations established International Trade in most countries to encourage and promote the interest of Tourism (E.g.) Travel Association of U.K. (1929).  By 1950, International tourism came to be known as a giant industry because of two reasons i) U.S. prosperity relative to other countries faltering economics in postwar world, which gave purchasing power. ii) advent of jet travel in 1958, it made possible to cross the Atlantic in 7 – 8 hours.  Jet speed made opened the international travel in most of the countries and attracted the convenience and attractiveness of long distance tourism.  The volume of tourist traffic was multiplied due to highly technology, recreational, cultural travel and sustainable tourism in present times. Unit 3– Tourism & Travel Services 15
  • 16.  The concept of tourism transformed from MSRP to present FSDI.  Ongoing speedy innovations and advances in tourism industry led to quality of tourism services and make easier and comfortable day by day.  Evolution of tourism from age of ‘Grand Tour’ to current “Mass International Tourism” given rise to changes in all spheres of life.  Two universally accepted yardsticks have used to measure tourism index in any country or region are: a) International Tourist Arrivals. b) International Tourism Receipts. Unit 3– Tourism & Travel Services 16
  • 17. SIGNIFICANCE & IMPACT OF TOURISMSIGNIFICANCE & IMPACT OF TOURISM - significance of tourism is measured by way of contribution to national income, earnings of foreign exchange , state revenues and creation of employment. Some of the five potential benefits from tourism are – a) contribution to balance of payments. b) dispersion of development of non – industrial regions. c) creation of employment opportunities. d) effect on general economic development. e) social benefits arise and to a new understanding of foreigners and foreign tastes. “Tourism promotion is key operation to any region, state or community development programme like agricultural, industrial and tourism development.” Unit 3– Tourism & Travel Services 17
  • 18. a) Economic benefits: - economic value is based on effect on production, employment and tax revenues. - it involved in various sectors like accommodation, transport, resort areas and other facilities. 1.Tourism and Economic Development: - it is the vehicle for economic development. - it lies in purchasing power generated in receiving areas through expenditure of visitors. - multiplier effects will earn more income and it partly represent on domestic factors for modernization. - it is valuable attribute to most developing nations and attain maximum rates of economic growth. - massive and torrent of investment money continues to pour in development of tourism. 18
  • 19. 2.Tourism and National Income: - domestic or international gives boost to national income. - it demand for services and consumer goods and automatic increase in national consumption. It demands for services and consumer goods as – * construction of hotels and other accommodation. * installation, infrastructure, sanitation, water & power supply. * production of food, meat, drinks and agricultural products. * production of means of transport and spare parts. * creation of new commercial establishments. * increase in production of goods bought by tourists. * regeneration of finance sector, banking, insurance and professional services. 19
  • 20. “Total income from tourism is the product of member of tourists per day, average length of stay in days per tourist and average expenditure per tourist per day.” Total Income = N * L * e where N – No. of tourists per day L – Average length of stay in days per tourist e – Average expenditure per tourists per day 3. Tourism and Redistribution of National Income: - it prevents national income from being hoarded by few and it has created new opportunities and areas where money spent. - advent of tourism now spent on travel, art visits, health resorts, visits to international sports events, festivals, exhibitions, etc. - redistribution of money increase employment & neglect 20
  • 21. 4. Tourism and International Trade: It promotes international trade because – i) current expenditures by tourist (accommodation, food, etc). ii) purchase of capital and consumer goods by tourists. iii) import and export of goods (equipment, food, etc). iv) payments to other countries international airlines and shipping companies. v) monetary transfer. vi) foreign capital investment. vii) interests, profits and dividends (transfer of money, return on investment). “Internationalism tourism is also a means of providing foreign exchange earnings from visiting travellers to equal expenditure by citizens who are abroad.” 21
  • 22. Some of the general economic objectives promoted by tourism are: i) it facilitates and accelerates development of region. ii) it helps in combining unemployment. iii) it brings in foreign currency as an export. iv) it lightens burdens of foreign and public funds. v) it attracts capital. 5. Tourism and Employment: - it provides employment to people several times more than manufacturing industries. - it creates direct jobs (hotel, workers are resorts, guide) and indirect jobs (semi skilled & unskilled through to management skills). - beneficiaries are travel agencies, hotels, photographers, flower sellers. - it creates employment through demand for goods and services. 22
  • 23. 6. Tourism and Tax Revenues: - importance of tourism is determined by how much tax revenues to state from tourism expenses. - main source is through taxation – customs and excise duty. Total Tax Revenue = Total annual expenditure by tourists Multiplier % of taxes with the business generated. 7. Tourism and Public Utilities: - there will be substantial increase in consumption of water, gas and electricity during touristic season. - public utilities plan their output to meet peak demands and calls for capital investments. - it is designed to satisfy the requirements of population larger than local residents. Unit 3– Tourism & Travel Services 23
  • 24. 8. Tourism and Inland Transport: - it is important means of transportation of tourists. - there are no. of taxies, self driven and hired vehicles, etc are beneficiaries of tourism. - it causes creation of transport and communication facilities, development of parks, marinas, beaches, etc. 9. Tourism and Retail Trade: - it encourages high standard of living for all community. - it has wide range in professional and business like lawyers, accountants, etc. The main retail purchase in tourism are – * expenditure on food, shopping, jewellery and handbags. * expenditure on cosmetics & perfumes. * expenditure on gift items like toys, glassware, etc. Unit 3– Tourism & Travel Services 24
  • 25. * expenditure on cameras, films developing and other photographic works. * expenditure on clothing and shoes. * expenditure on post – cards, stamps, greetings cards, etc. 10. Tourism and Environment: - it is the synonymous with protection of environment. - natural scenery and local culture are interest of visitors. - growth of tourism does less danger compared with other forms of economic and industrial development. - it become an instrument for beautification and improvement of the environment. Unit 3– Tourism & Travel Services 25
  • 26. b) Socio Or Non – Economic Benefits: “Tourism often has significant i) cultural implications (E.g.) restoration of ancient monuments; ii) aesthetic (E.g.) the preservation of beauty of landscape and safe guarding of nation’s heritages; iii) social (E.g.) provision of recreational facilities for health and welfare of people and iv) political (E.g.) improvement of international understanding among countries.” - it brings number of intangible benefits. - if offers educational, social, cultural and other political values. - it widens knowledge and reduces tension. Unit 3– Tourism & Travel Services 26
  • 27. 1. Tourism and Standard of living: - visit of foreigners affects living pattern of people. - relationship with citizens of host country have effect on life and attitude of people. 2. Tourism and Passport to Peace: - it is the major source for peace, harmony in world. - barriers of suspicion and other problems among nations will go for break down. - it contribute open world and free movement of culture will benefit all mankind. 3. Tourism and International Understanding: - travel far off lands will gain insight into customs, traditions, perceive unity of human society. - it is the sum total of achievements, expression and way of acting and thinking. 27
  • 28. - it creates goodwill for a country and tourists and reflect social conditions. - tourists come on contact with people leads to sharing of ideologies, information and culture. - tourists carry back experience, habits and new outlook of life. 4. Tourism and Social Integration: - it fosters a feeling of love, understanding and goodwill and generates international emotional integration. - it accompany cultural exchange and cultural enrichment of travel. - cultural factors attracts tourists to various historical monuments. - it has educational and cultural significance. Unit 3– Tourism & Travel Services 28
  • 29. 5. Tourism and Regional Growth: - it generates economic growth in region of country and reduce regional imbalance within a country. - it is localized in economically backward zones with sources of production. - expansion of tourism plays vital role in development of process in backward regions of country. 6. Tourism and other factors: - it awakens the senses and hightens the awareness of one’s one milieu. - it is to develop more tolerance for cultures and rich in personal experiences. - it influenced by contact and culture observed in countries and increased appreciation for qualities of life in society. Unit 3– Tourism & Travel Services 29
  • 30. MARKET SEGMENTATION INMARKET SEGMENTATION IN TOURISMTOURISM Market Segmentation: “Market Segmentation is the process through which potential customers with similar needs and characteristics are grouped together so that a tourism organization can apply marketing strategies for the selected market segment efficiently.” - identifying tourism customers and deciding on how to meet their wants and needs. - learn more about the customers. - making the heterogeneous market into a homogenous market. Unit 3– Tourism & Travel Services 30
  • 31. Marketing Objectives for each segment: Objectives serve a number of functions including: i) Guidance for developing marketing mixes for different target markets. ii) Information for allocating the marketing budget between target markets. iii) A basis for objectively evaluating the effectiveness of the marketing mixes (setting standards). iv) A framework for integrating the different marketing mixes into the overall marketing plan. The target market objectives are: i) be expressed in quantitative terms. ii) be measurable. iii) specify the target market and iv) indicate the time period. 31
  • 32. WHY MARKET IS SEGMENTED?WHY MARKET IS SEGMENTED?  Travel Market is too large to reach efficiently.  Travel Market is to diverse to communicate.  Breaking up the market will make it easier to manage. Benefits of Market Segmentation:  Understand the needs and wants of customers.  Allocate marketing expenses efficiently.  Further develop products or services.  Develop marketing strategies more precisely. Unit 3– Tourism & Travel Services 32
  • 33. IDENTIFYING MARKETIDENTIFYING MARKET SEGMENTATIONSEGMENTATION  WHO – who are in the market segment that we would like to have?  WHAT – what are their requirements?  WHEN – when do we promote to our market segment?  WHERE – where do we promote the product? Through which distribution channel?  HOW – how do we develop marketing strategies to reach the market? Unit 3– Tourism & Travel Services 33
  • 34. WAYS TOWAYS TO SEGMENT THESEGMENT THE MARKETMARKET • Location of residence • Demographics • Equipment ownership • Important product attributes • Lifestyle attributes SPECIALIZEDSPECIALIZED TOURISTTOURIST SEGMETNSSEGMETNS 1. Business & Professional Travelers 2. Incentive Travelers 3. SMERF Groups (Social, Military, Education, Religion and Fraternal) 4. Mature Travelers 5. Special – Interest TravelersUnit 3– Tourism & Travel Services 34
  • 35. Unit 3– Tourism & Travel Services 35
  • 36. CRITERIA USED FOR DIVIDINGCRITERIA USED FOR DIVIDING MARKET SEGMENTSMARKET SEGMENTS a) Geographic Segmentation – grouping potential customers based on their location, oldest and simplest basis for market segmentation. b) Psychographic Segmentation – grouping on how they live, their priorities, their opinions, their attitudes and their interests. c) Demographic Segmentation – gender, age, ethnicity, occupation, educational level, income, household size and family situation. d) Socio-Cultural Segmentation – religion, social class, family life style, status. e) Product – Related Segmentation – benefits people seek in the good or service, the amount of good or service used and degree of company loyalty. 36
  • 37. Unit 3– Tourism & Travel Services 37
  • 38. MARKET SEGMENTATION DECISIONMARKET SEGMENTATION DECISION PROCESSPROCESS Step 1: Select Segmentation Approach. Step 2: Create detailed profile of segment. Step 3: Forecast market potential of each segment. Step 4: Estimate likely market share of each segment. Step 5: Decide which segment to target and design appropriate marketing mix. Unit 3– Tourism & Travel Services 38
  • 39. MEASURES FOR TOURIST SATISFACTIONMEASURES FOR TOURIST SATISFACTION Words of mouth communication Words of mouth communication Personal needsPersonal needs Past ExperiencesPast Experiences Expected ServiceExpected Service Perceived ServicePerceived Service 10 determinants of service quality •Access • Communication • Courtesy • Credibility • Reliability • Responsiveness • Securities • Tangibles • Understanding / knowing the customer 10 determinants of service quality •Access • Communication • Courtesy • Credibility • Reliability • Responsiveness • Securities • Tangibles • Understanding / knowing the customer Unit 3– Tourism & Travel Services 39
  • 40. MEASURES FOR TOURISTMEASURES FOR TOURIST SATISFACTION EQUATIONSATISFACTION EQUATION Actual Service > Expectations = Actual Service = Expectations = Actual Service < Expectations = Unit 3– Tourism & Travel Services 40
  • 41. TOURISM MARKETING MIXTOURISM MARKETING MIX  Tourism and Travel differs from tangible goods as it is a base for service business.  It depend on customer profile, attributes of tourist destination, social factors and Government policies as below: Customer Profile: It includes –  Age, Gender & Status of the travellers  Occupation & Income of the travellers  Psychological of the tourist  Country of his residence  No. of previous visits  Travel motivation Unit 3– Tourism & Travel Services 41
  • 42. Attributes of tourist destination: It could - i) Be of historical importance. ii) Have a natural resource or artistic landscape. iii) Have an unique resource created there. iv) Be of religious importance. v) Be of adventurous nature. vi) Be a shopping paradise. Social factors: It includes –  attitude of local inhabitants towards tourism and  local culture and customs like music, cuisines & folklore. Government Policies and Actions: It covers –  policy related to public utility services (health, safety, etc).  security arrangements made by the Government.  taxation policy and provision of transportation. Unit 3– Tourism & Travel Services 42
  • 43. Tourism Typology: Unit 3– Tourism & Travel Services 43 Criteria Type of Tourism Direction of traffic flow Inbound, outbound Geographic distribution International; Intra – regional, Domestic No. of tourists Mass, Selective Economic class of tourists Affluent, Budgetary Intensity of Impact Hard, soft Type of tourist destination Mountain, Desert urban, beach / Coastal, island Planning strategy Sustainable, Responsible Alternate, selective, appropriate Planning Thrust Eco, Rural, urban, Heritage, Community involvement
  • 44. Unit 3– Tourism & Travel Services 44 Criteria Type of Tourism Tourist Activity perception Blue, White, Green Tourists Motivations Pleasure, Leisure, Recreation, Business, Adventure, Nature, health, Sports, Spiritual, Ethnic, Sociological, Cultural, Wildlife, Conference & Convention, Shopping Tourist Demographics i) Age ii) No. of tourists Young, Mainstream, Old age, Mass, Selective Season Summer, Monsoon, Winter Seasonality Peak, Lean, Off Miscellaneous Elite, Incentive, Social, Agri, Farm, Ranch
  • 45. Difference between Travel and Tourism and other tangible products: i) Such intangible products can’t be touched. ii) Precise standardization of travel and tourism product is not possible. iii) There is no transfer of ownership of travel and tourism products to tourists. iv) Travel and tourism products can’t be patented. v) The production and consumption of these products are inseparable. vi) There are no inventories of these products. vii) Tourist is part of production process so delivery system must go to market or customer. viii) Maximum time and month is spent on transport. Unit 3– Tourism & Travel Services 45
  • 46. Marketing and Tourism: Unit 3– Tourism & Travel Services 46 Marketing and Tourism is to be understood as a systematic and co-ordinated execution of business policy by tourist undertakings whether private or state owned, at local,, regional, national or international level to achieve the optimum satisfaction of the needs of identifiable consumer groups and in doing so to achieve an appropriate return. - Krippendorf Marketing and Tourism is to be understood as a systematic and co-ordinated execution of business policy by tourist undertakings whether private or state owned, at local,, regional, national or international level to achieve the optimum satisfaction of the needs of identifiable consumer groups and in doing so to achieve an appropriate return. - Krippendorf Kotler defines a product as, “Anything physical objects, services, persons, places, organizations and ideas that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.” Kotler defines a product as, “Anything physical objects, services, persons, places, organizations and ideas that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.”
  • 47. The tourism products can be understood on two levels: i) It is combination of all service elements consumed by the tourist from the time he / she sets off home and returns back. ii) Explicit products such as attractions, accommodation, transport and other facilities are elements of total tourism product. The total tourism products analyzed as – a) Attractions: - it determines the choice of tourist to visit one destination rather than another. It includes – i) natural attractions like landscape, beaches and climate. ii) historic, new townscapes, attractions like Disney land. iii) cultural festivals, museums, theatre & cultural shows.47
  • 48. b) Accessibility: - it relates to mode of transformation to destination. - it includes transport like airports, harbours, motor ways, rail networks, technology. - it include cost, convenience and speed for success of every destination. c) Destination facilities: - the absence of these facilities may deter the tourists from travelling to enjoy attraction. - these facilities are elements within the destination and built up needs and wants of potential visitors. - it includes accommodation, restaurants, cafes and bars, retailing and tax at destination. Unit 3– Tourism & Travel Services 48
  • 49. The tourist products experienced by following components: a) Accommodation: - it provides over night stay facilities for visitors on occasional basis. - it includes hotels, boarding houses, motels, holiday villages, camping sites, etc. b) Natural and Other resources: - it refers to natural scenery, springs, falls, beaches, mountains and good climate, social cultural, historical and religious attractions, theme parks, etc. c) Recreation facilities: - it includes the provision of indoor and outdoor recreation and entertainment facilities at the destination. Unit 3– Tourism & Travel Services 49
  • 50. d) Services: - it includes all services which facilitate entry, stay and exit of tourists at a spot. - it includes public utility services, health safety facilities, etc. e) Transport: - it includes air, rail, road and water transport system to take tourists from one place to another place. f) Food and beverages: - it includes different kind of food and beverage availability including international cuisines. g) Other attractions: - it includes shopping malls and retailing. Unit 3– Tourism & Travel Services 50
  • 51. Marketing Mix of Tourism: Some of the major marketing mix aspects of tourism services are: a) Price: - it is the sum total of cost of product elements like travel, accommodation and several other services at destination. - it is not static and changes with distance travelled, accommodation, season year, etc. b) Promotion: - it persuade and motivate potential customers to purchase tourist services. - through brouchers customers can know the quality, value for money, status and other relevant information. - it includes sales promotion, advertising, exhibitions, travel marts, films and videos, sponsorships, etc. 51
  • 52. c) People: The International Union of official Travel Organization (IUOTO) has defined a tourist as “any person travelling for a period of 24 hours or more in country other than in which he usually resides.” The following person are considered as tourists – i) persons travelling for pleasure, domestic reasons, entertainment, etc. ii) person travelling for meetings, diplomatic and religious. iii) person travelling for business purposes. The following categories are excluded – a) persons arriving with or without a contract take up an occupation. b) students and youngsters taking boarding of school. Unit 3– Tourism & Travel Services 52
  • 53. c) persons domiciled in one country and working in an adjoining country. d) travellers passing through country without stopping even if journey takes more than 24 hours. The purpose of journey of these tourists can be classified under one of the following headings:  leisure which includes vacation, holidays, health, religion and sports.  business meeting, family reunion. d) Process: - the process from distribution of service and payment should be speedy, simple and convenient. - information technology allows tourism to access easily and relevant information and activities like, customer reservations, receiving payment, etc.Unit 3– Tourism & Travel Services 53
  • 54. MANAGEMENT OF TRAVELMANAGEMENT OF TRAVEL SERVICESSERVICES - they provide services to tourist on behalf of their principal (original service provider). - they normally don’t charge fee from clients and get commission for their work. - the persons working for travel agencies need to know and communicate information for customer. A travel agent is one who acts and do work on behalf of a principal (i.e.) original service provider like hotel, airline, transport or shipping company. Travel agent may be called as retail sector of the distribution chain. 54
  • 55. I. Travel Agencies and Travel Organizations: Travel Organization: “Travel organizations are supportive institutions for the tourism industry and supported by both government and public organizations for the growth of tourism.” - private organizations support by providing like finance, marketing, publication of guide and guide services. - government support by way of providing visa and passport, tourism promotion councils, tourism centre to give required information to tourists, establish publicity offers and educate and tourists operators and guides. Unit 3– Tourism & Travel Services 55
  • 56. Functions of Travel Organization: (main futures) Some of the main functions of travel organizations are:  provide transportation as required by tourists and they have own means of transport / tourist buses.  provide attractive destination packages.  arrange for hotel reservations at different places.  arrange for food, breakfast and other requirements.  provide connected service with the package.  arrange tour program, varying from two days to several weeks depending upon needs of tourists. 56
  • 57. II. Tour Operations: “Tour operations refer to the various types of package tours conducted by travel services and agencies.” - it includes both domestic and global travel for holidaying and sight seeing. - Thomas cook, Cocks and Kings and others are playing a significant role in providing package tours in global tours. Tour Operators: “A tour operator is responsible for delivery of service required by the customer.” - they supply services through agents or through their office. - approach customers directly through mail and develop no. of package known as tour programmes and offer to customers. - they act as member of channel called ‘middlemen’. Unit 3– Tourism & Travel Services 57
  • 58. Travel Guides: “Travel guides also called tourist guides help them to give required information regarding a place, monument or on other places the tourist is visiting tourist organization and tour operators give due to importance to the role of guides since they are a part of package.” - there are no. of places to visit, so they need explanation regarding historic information is required. - as a tourist guide, he has to know full information about the tourist spot and their skill in guiding the tourist. - great care is important for tourist guides by tour operators for making the tour successful. Unit 3– Tourism & Travel Services 58
  • 59. III) Airline Services Marketing:  the development of air travel is the result of dedication and research by all men in all times.  this parameters measure economic country at which the air transport service is growing.  both private and public sector operations are looking for innovative marketing practices. (E.g.) Air Deccan, a private airline come out with “Low cost travel” to make more people to air travel. The two vital factors catch attention of observers like: i) Technological sophistication which substantially determine the quality of service. ii) Managerial proficiency plays incremental role in making the services competitive and consumer oriented. Unit 3– Tourism & Travel Services 59
  • 60. Service Mix of Airlines: Airlines provide different types of services like – a) Passenger services – national and international. b) Goods carrying services. & c) Mail Services. d) Social services such as air operations in case of floods, earthquakes, accidents and other natural calamities. e) Defence air services for both defence and civil services. Airlines assist with two major functions like – i) Operational functions – it is covered by Government of India (GOI) and its services such as Indian Airlines, Air India International. (also some private operators) ii) Infrastructural functions – it is covered by National Airport Authority (NAA) and International Airport Authority of India (IAAI).  Domestic services operated by private airlines like Deccan Airways, jet Airways, Sahara Airlines and Go Air. 60
  • 61. Marketing Mix: a) Product – Mix: It considered three major products like – * Passenger traffic – it includes regular passenger, pilgrim services, special flights, other specific programmes such as international & domestic business conferences, etc. * Cargo carrying and Mail services. - the operators have to plan the operation schedule to make product more attractive. b) Price – Mix: - airline services has high cost of operation. - price is determined by the demand and supply of product. - pricing strategy has to consider marketing behaviour and consumer behaviour for optimize the air traffic. - fixing a reasonable and stable price will develop the air travel culture. 61
  • 62. The following aspects are considered while fixing the price for traffic –  demand level of traffic.  supply of aircrafts and their using time.  infrastructural facilities for safety operations.  running expenses like fuel, core expenses and peripheral operations.  seasonal fluctuation of air traffic.  description on aircrafts  some percent of contingency expenses.  strategies of competitors in price fixing model.  capital repayment in long run. Unit 3– Tourism & Travel Services 62
  • 63. c) Promotion Mix: - air travel by Indians gradually developed due to restructured by IT enables service. Some of the promotional activities are: i) Advertising – there is lot of issue regarding selection of media, every print media is attractive. In media, some factors like - - layout of advertising. - message that enhances both operator and country. - advertising budget & creative advertising concept. - promotional measures. - latest development in printing technology. - peripheral services. - mode, scale and moment of advertising. Unit 3– Tourism & Travel Services 63
  • 64. ii) Personal selling – it is described as art of influencing, stimulating and sensitizing the impulse behaviour. - it is the sub – mix of promotional mix of airline promotion which contains travel agents, tour operators, transport operators, travel guides and receptionists. - the service charge payable to service organizations are regulated by IATA and NAA. - people working in reservation counters has incremental role in promoting the business. iii) Publicity – it is powerful mix of promotion mix and the channel sensitizes the persuasion process with help of print media. - travel agents, airline organizations should develop good relationships with news agencies, publishers and other print media people. Unit 3– Tourism & Travel Services 64
  • 65. iv) Sales Promotion – it takes place in a situation when sales targets have to be achieved in specific time period. - this is introduced when aggressive promotion activity taken to reach targets. - it will resort to sales promotion activity with very attractive incentives to all business. - sales promotion activity will be continue for business development. - it maintains the achieved business and other service activities. - airline business promotion takes place by travel agents, tour operators, transport operators, all of them who process the services. Unit 3– Tourism & Travel Services 65
  • 66. v) Network marketing – the promotion takes place by word of mouth. - people work for airlines continuously speak about airlines quality and service. - they motivate users to travel and this is informal but effective channel of promotion. vi) Telemarketing – it plays significant role in service promotion. - this play an outstanding role in informing, sensing and persuading potential air travel users. - this provides latest information about travel organizations. vii) Other components like Web marketing – playing effectively to promote airline business. - they create own website to provide information and makeUnit 3– Tourism & Travel Services 66
  • 67. IV) Rail services:  Indian Railway Act provides the rail transport and Indian Railway Board is the authority which looks after complete railway transport system.  Railways offer different types of services to different categories of users and applying marketing mix based on needs and requirement of people. Indian Railways (IR) are performing two major roles: i) perform as a public utility concern ii) running the system as a commercial undertaking.  this is convenient mode of transport for long distances and suitable for carrying heavy and bulk goods like iron, steel, minerals, etc.  it link various regions of economy & increase mobility of people. Unit 3– Tourism & Travel Services 67
  • 68.  first train steamed off from Mumbai to Thane in April 1953 with distance of 34km.  in 2004 – 2005, it comprising three gauges like – * Broad Gauge * Meter Gauge * Narrow Gauge  increase in rail transport was due to up gradation of technology and improvement in productivity. The major issues of railway development are: i) Technology up gradation. ii) Expansion of network. iii) Financial arrangement. iv) Capital restructuring. v) Tariff policy. vi) Passenger services and freight movements. Unit 3– Tourism & Travel Services 68
  • 69. Service Mix: Service Mix of Indian Railways are: Major Services: i) Passenger Traffic – no. of sub – services are provided, which is based on time, passenger classification and special services. On time basis – i) Super fast express, ii) Fast express, iii) Fast passenger trains and iv) Shuttle trains are in operation. - passenger in each train get different services paid based on price differentiation like First class, A/C Coaches and II class coaches. ii) Freight carrying – carrying goods and distributing it. Unit 3– Tourism & Travel Services 69
  • 70. Marketing Mix of Railways: - it is the only segment that railways have to generate funds through passenger and freight carrying. - marketing of railway services is the way for increasing earnings, satisfying the users and improving base for securing safety. a) Product Mix: - it provide passenger service and freight carrying. - it is a public monopoly, but it faces competition from State Road Transport Corporations (SRTC) and Inter- Road Transport Agencies. - designing the product mix of railways services will bring fast changing in business environment and changes in the expectations. Unit 3– Tourism & Travel Services 70
  • 71. Product Mix of Railways Unit 3– Tourism & Travel Services 71 Passenger Traffic Mail / Express, AC / I Class and II Class Sleeper coaches, Passenger train, free service for certain class Freight Traffic Revenue earning Bulk carrier service Railway Mail Services Communication carrier through out the nation. Pipe – Line Services In parts of U.P., Gujarat and Assam Advertising Selling different sensitive points Consultancy
  • 72. b) Price Mix: - cost plus is one of the oldest and basic pricing methods and any one of the pricing method ‘skimming price’ or ‘penetration price’ are adapted. - since railway is a public utility services, so the price should be within the reach of every one. - in railways service, the price is fixed to generate certain funds. - the pricing principle in railway is “Charge what the traffic will bear” (i.e.) there should not be unnecessary burden to travellers. - the price is based on based in category like First class A/C, Second Class, sleeper class, etc. Unit 3– Tourism & Travel Services 72
  • 73. Based on this Pricing policies, the certain principles are: i) Cost of service principle. ii) Value of service principle (price based on service). iii) Principle of differential charging (separate price for I class, II class, etc). iv) Principle of equal mileage rate (flat rate). v) Principle of zonal charging (charging price for different zones). The following aspects are considered while fixing price –  Fare and freight structure should be adjusted.  Subsidized prices should be fixed for rail users only for weaker sections.  Average receipt for passenger km and average receipt.  Unremunerative lines are required & unproductive expenses are to be optimized. 73
  • 74. c) Promotion Mix: - it is a monopoly sector, but facing competition from roadways and therefore it is inevitable for railways to promote its various services. The major components of promotion are – i) Advertising – they have adapted print, broadcast and telecast media. - it is adapted to sensitize the messages, slogans and appeals and provide good information system. ii) Publicity – railways develop good relationship with public and also channels develop good rapport with media people, leaders. iii) Sales promotion – facilitates the users to understand the type of facilities and services extended by railways. iv) Other channels – personal selling, network marketing provide strong base for developing an effective services. Unit 3– Tourism & Travel Services 74
  • 75. V) Road Services: - it is the oldest form of transport and road network in India is one of the largest in the world. - India had 33,80,000 kms includes both surface and unsurfaced road. Indian roads classified into four categories – i) National Highways – primary roads of India and connect big cities and big industrial centres and maintained by central government. ii) State Highways – connect all important industrial, trade and commercial centres of state and national highways and maintained by state government. iii) District Roads – link important industrial and market places of district and local railway stations. iv) Village Roads – roads are in rural parts. 75
  • 76. Importance of road transport:  they can easily connect any part of country, unlike railways.  it is complementary to railways by providing feeder service.  more flexible in operation compared to other modes of transport.  it can provide door to door services.  chances of delay, damage or loss are less in road transport.  better means of transport to carry perishable articles like vegetables, milk or fruits to reach market on time.  it does not require heavy capital for operation.  it is important in Defence Services of the country. 76
  • 77.  it deals with 85% of passenger and 70% of freight traffic, 40% by highways are carried by road.  National Highways Development Project (NHDP) converted 14279 kms into 4/6 lanes and it is the highest projects within short time. Some of the sub – projects of road transport are: i) Golden Quadrilateral (G.Q) of 5846 kms connecting four major cities of country like Delhi, Mumbai, Chennai and Kolkata. ii) North-South and East – West connecting Srinagar in north to Kanyakumari in South and Silihar in east and Porbandar in west. iii) port connectivity and other projects. Unit 3– Tourism & Travel Services 77
  • 78. Service Mix: - it can be used by pedestrians, animals, for bullock – carts, horse – carts, camel – carts and also mechanically driven like two wheelers, four wheelers, etc. - it is the property of speed and operational economy in every region of country. Service mix of road transport are: i) Providing passenger services. ii) Goods carrying services. iii) Mail services. iv) Special services - service mix offered to users should contain “perceived value” of users. 78
  • 79. Marketing Mix: - selling of transport services is difficult task and it can carry problems from passenger side. - it should be quality, time management in reaching destinations, safety measures, attractive price and infrastructure facilities, etc. a) Product Mix: It observes the following: i) Regular passengers commuting to short and long distances. They provide services on 24 X 7 time basis. ii) Special package tours conducted by both private and public sector operators for a) Pilgrimage, b) Sight seeing holiday and c) other special purpose tours (Education, industry tours). Unit 3– Tourism & Travel Services 79
  • 80. In cargo traffic, the product elements are: i) Carrying goods to destinations by trucks of different size and capacity, which is regular and routine. ii) Bulk carrying of special items like gas, milk, petroleum products and other raw materials, etc. iii) Mail services. b) Pricing Policy: - basic and common policy adapted is “Cost + Margin”. - the cost includes fuel charges, crew expenses, road service, etc. - both state and central government come out with price policies of various goods and services produced in country from time to time. - transport service operators have to make profit for their organizing effort. 80
  • 81. - state road transport corporations have adhere to social responsibility and huge payments are made for inputs used for transport services. - it is necessary to construct new roads in urban area and providing quality road service. - government have to go for public – private partnership for road construction and rely on resources to be generated through tax and pricing for services. - private operators will fix price depend on quality of service they offer and competition they face from other operators. - today there is a big boom in four wheeler vehicle segment, also cars and luxury vans are used for tourists and price is fixed based on transport services. Unit 3– Tourism & Travel Services 81
  • 82. c) Promotion Policy: - advertising is effective tool in promoting transport services. - print media, television, short films for tourism promotion are different modes in advertisement. - personal selling, telemarketing, publicity, sales promotion, network marketing are other modes for promotion of road transport services. - quality of service offered while promoting the road transport services should be maintained. - various promotion mix are the different components will prove effective promoting transport services. Unit 3– Tourism & Travel Services 82
  • 83. d) Other mixes (Place, People and Process): - this refer to proper location of service delivery points and people involved in delivering the road transport services. The following aspects are to be looked into regarding place – mix:  promised services should reach users without any disturbance.  time should be managed in reaching destinations.  service offered and service delivered should match.  service delivery points like bus stations, terminals, workshop, etc.  infrastructural facilities such as electricity, communication system, etc.  safety and provisional facilities in bus stations.  Other services like healthy restaurants and food, medical centres, sanitation, water supply, etc. Unit 3– Tourism & Travel Services 83
  • 84. The following points are regarding people – - team of dedicated, professional, value based personnel contribute for quality of service. - human resources working on road transport system should continuously trained to show positive attitude in the work. - this service develop people on priority basis. Some of the activities regarding process are – - each and every service should not have any difficult situation. - no. of activities in providing services should be less. - formulating straight processes for providing services will facilitate better time management and cost reduction. Unit 3– Tourism & Travel Services 84
  • 85. vi) Water Transport Service: (Travel by Sea) It is classified into i) Inland water transport and ii) overseas transport service in form of shipping. - it is mainly used for carrying cargo both in domestic and overseas operation. Inland Water ways: - it has significant role in Indian transport system from time to time. - it consists of natural modes such as navigable rivers, backwaters and artificial mode like canals. The development of inland water ways are – i) Improvement in productivity of assets. ii) Developing trained and skilled manpower. iii) Development of inland waterways with natural advantage. 85
  • 86. Shipping: It has two categories: i) Coastal shipping: - the distance covered in coastal shipping is 7560 kms. - 13 major ports and 187 operatable minor and intermediate working ports. - it is the most energy efficient and cheapest mode of transport for carrying bulky and heavy goods like iron ore, coal iron, steel, etc. - coastal service progress are very slow due to reasons like i) port delays, ii) poor turn around time of coastal ships, iii) lack of mechanical handling facilities, iv) overaged vessels, v) imbalance in coastal traffic movement. Unit 3– Tourism & Travel Services 86
  • 87. ii) Overseas Shipping: - shipping activity has gained importance due to its role in India’s International trade. - 75% of country’s trade volume is moved by sea. Some of the developmental measures are modernization of fleet, replacement of overaged fleet, acquisition of cellular container ships, product carriers, self – sufficiency in tanker fleet. Ports: - it has 13 major and 187 minor port managed by Central and State governments. - the capacity of cargo handling by Indian ports has increased from 20 million tones to 397.5 million tones. - “Nhava Sheva” (Jawaharlal Nehru Port) are major developmental activities took place in port project. 87
  • 88. TOP TRAVEL AGENCIES IN INDIATOP TRAVEL AGENCIES IN INDIA S.No. Name of the Travel Agencies Logo Website 1 Cox & Kings www.coxand kings.com 2 Thomas Cook www.thomascook .in 3 SOTC www.sotc.in 4 Kesari Tours www.kesari.in 5 Club Mahindra Holidays www.clubmahind ra.com Unit 3– Tourism & Travel Services 88
  • 89. S.No. Name of the Travel Agencies Logo Website 6 Expedia www.expedia.co.i n 7 Yatra www.yatra.com 8 Goibibo www.goibibo.com 9 Make my trip www.makemytrip .com 10 Travel Guru www.travelguru.c om Unit 3– Tourism & Travel Services 89
  • 90. TRAVEL AGENCIES INTRAVEL AGENCIES IN BANGALOREBANGALORE 1. The Violet grace – Kalyan Nagar. 2. Hoysala Tours & Travels – Tumkur Road. 3. Fly N reach Holidays – Koramangala. 4. 7D Services private Limited – Wilson garden. 5. Mountain Holiday Makers – Kalyan nagar. 6. Yes Kay World Tours Bangalore private limited – Kammanahalli. 7. Aero Traveller – Gandhi Nagar. 8. Just Travels – Majestic. 9. Sumukha Travels – Basaveshwara Nagar. Karnataka Tourist Forum Membership FormUnit 3– Tourism & Travel Services 90
  • 91. RECENT TRENDS IN TOURISMRECENT TRENDS IN TOURISM Some of the interesting micro trends across evolving the Indian travel landscape: 1. Advent of hostels: - it is a part of Indian tourism story and always been low budget options. - it offers cheap, basic hotel experience, more accessible for low budget traveller. - it seen as mode of self realization, exploration and experiences different from of lifestyles. Unit 3– Tourism & Travel Services 91
  • 92. 2. Growth of boutique hotels: - privately run small hotels, arty hotels with just a few rooms. - it is increased in recent years, particularly attracting foreign tourists at all levels. - it is key element in India’s plans to boost tourism and providing opportunities for tourists to be more engaged. - it is severely abused and misused by the ranks of private, and often state – supported corporate hoteliers. Unit 3– Tourism & Travel Services 92
  • 93. 3. New Destinations: - it is willingness to explore new regions, amongst both younger upper – middle class Indians and tourists from overseas. (E.g.) Kashmir and Gujarat, Rajasthan – pali (which improves airports, national parks & safari options. - rural villages now gaining more popularity, both representing authentic, safe and relatively accessible. Unit 3– Tourism & Travel Services 93
  • 94. 4. Adventure sports opportunities: - it is incredible with the length of India’s coastline, which gives interior and staggering beauty like Himalayas. - it is the passion for adventure sports now apparent in young Indians. - it covers stunning mountain regions and split as high as “90% Indians and 10% foreigners”. (E.g.) Kite surf, white water raft in rishikesh, bike riding in beach, etc. Unit 3– Tourism & Travel Services 94
  • 95. 5. Visa on arrival: - fast developing and government policies in India are key for growth of tourism. - arrival of visa to tourism over 40 countries in 2015 and expand this to around 100 nationalities over next five years. 6. Visitors to India: - largest percentage of travellers from overseas come from USA and UK, with Canada, Malaysia, Japan, France and Russia are heavily represented. - 22 million people are most interested in south – east Asia and Europe and broadening their horizons and venturing to sub – continent. - it has strange mix of efforts of Indian Tourism board and played a major role in upcoming years. Unit 3– Tourism & Travel Services 95
  • 96. 7. Other changes happening within India: - it is the largest service industry globally in terms of gross revenue and foreign exchange earnings. - it is major social phenomenon and driven by social, religious, recreational, knowledge seeking and business interests and motivate human for new experience, adventure, education and entertainment. - it stimulates other sectors in the economy. - rise in levels of income leading to higher levels of discretionary income with increase in leisure time that benefit tourism industry. - more innovative approaches to marketing and promotion and creation of new products are pulling the demand to the destinations. - the growth of specific segments for instance ecotourism is booming based on new customer needs and attitudes. - the increased level of economic activity led to an increase in business travel and also growing trend in international mobility. Unit 3– Tourism & Travel Services 96
  • 97. Tourism Industry had grown massively for following reasons: a) Advance in travel technology – wide range of travel as a tourist are widely available. - motorways, airlines have increased the volumes. b) People have more disposable income now – this is about income that people have to send on themselves due to salary rises. - many families have two income earners and have fewer kids and often have a car, which increases likelihood of people. c) The availability and type of holiday has increased – mass tourism and packages holidays opened up markets to huge numbers of people. d) The Media – newspapers ‘holiday section’, TV shows can show enormous choice on offer. e) Advances in Information Technology – they are to view, evaluate, book cheap and comfortable hotels and other facilities. (E.g.) online sites makemytrip.com, travelguru.com, etc. f) Increased competition has benefited customer – increased competition among travel agencies and hotel have benefitted customers. 97
  • 98. Different forms of Tourism 1. Medical / healthcare tourism: - also known as health tourism & most important segments in tourism industry. - it provide services such as complex surgeries, joint placements, cardiac, dental and cosmetic surgeries. Some factors contribute to growth of tourism includes – * Low travel costs. * significant reduction in travel costs and travel to other countries for medical treatments. * high growth of world class medical treatments in developing countries. * health care facilities. Unit 3– Tourism & Travel Services 98
  • 99. - medical tourism has done exceptionally in India and its growing with rising of health care costs. - India has highly trained and specialized doctors, healthcare infrastructure facilities, availability of alternative forms of treatment such as ayurveda, yoga, siddha and naturopathy. Benefits of medical treatment and medical tourism are:  world class treatment at fraction of cost.  patients from more than 55 countries availing treatment.  medical technology, equipment, facilities and healthcare infrastructure.  Indian doctors recognized among best globally.  various medical treatments like knee replacement, cosmetic surgery, cardiac care, etc.  issuing ‘Medical Visa’ for patients and attendants. 99
  • 100. 2. Wellness Tourism: - it is a sub – segment of medical tourism. - the primary purpose of this tourism is to achieve, promote, maintain good health. - wellness activity like yoga, siddha and naturopathy are Indian spiritual philosophy. - it includes ayurvedic therapies, spa visits and yoga meditation. - the government is promoting this tourism with publicity and promotional activities. Unit 3– Tourism & Travel Services 100
  • 101. 3. Adventure Tourism: - travel for the aim of exploration or travel to remote, exotic and hostile areas are adventure tourism. - it refers to performance of acts, effort and degree of risk or physical danger. - the activities are mountaineering, trekking, bungee jumping, river rafting, etc. - it offers diverse Topography, climate, etc. (E.g.) Mountain region – Rock climbing, trekking, Skating. Rivers – river rafting, Canoeing, etc. - government provide financial assistance for development of adventure tourism. 101
  • 102. 4. Heritage Tourism: - it is defined as ‘travel undertaken to explore and experience places, activities and artifacts represent the stories and people of the past and present.’ - it is oriented towards to cultural heritage, historical or industrial sites, religious travel or pilgrimages. - rich heritage is reflected in temples, majestic forts, pleasure gardens, religious monuments, art galleries. Unit 3– Tourism & Travel Services 102
  • 103. 5. Ecotourism: - also known as ecological tourism, is travel to natural areas to appreciate the cultural and natural history of environment, not disturbing the integrity of ecosystem and creating economic opportunities that make conversation and protection of natural resources. - it also minimizes wastage and environmental impact through sensitized tourists. India offers several eco – tourism like:  Biosphere reserves, Mangroves.  Coral reefs, Deserts, Caves.  Mountains and Forests, Flora & fauna, Seas, lakes & rivers. Unit 3– Tourism & Travel Services 103
  • 104. The basic principles to follow in ecotourism are:  minimize the impact.  build environmental and cultural awareness and respect.  provide positive experiences for both visitors and hotels.  provide financial benefits and empowerment for local people.  support international human rights and labour agreements. (E.g.) Himalayan region, Kerala, North East India, Andaman & Nicobar and Lakshadweep Islands, Rishikesh, Pondicherry, etc. It consists of – Eco parks, Eco places, Eco fauna, Eco flora & Eco destinations, Eco trivia, Eco treks & Eco adventure. Unit 3– Tourism & Travel Services 104
  • 105. 6. Rural tourism: - it shows rural life, cultural and heritage of rural locations, local community and interaction between tourists and locals for enriching tourism experience. Some of the characteristics are:  it is experience oriented.  locations and sparsely populated.  it deals with seasonality and local events. - Ministry of Tourism undertook “Explore Rural India” campaign to give tourists a chance to experience life in rural India. Unit 3– Tourism & Travel Services 105
  • 106. 7. Wildlife Tourism: - it is one of the fastest segments of tourism, involves to different locations to experience wild life in natural settings. - it has numerous species of birds, mammals, reptiles, amphibians and plants & animals. - the government launched wildlife package for travellers, which includes wildlife photography, bird watching, jungle safari, jeep safari, ecotourism, etc. - it has more than 70 national parks and 400 wildlife sanctuaries. - hotels and resorts provide wildlife enthusiasts, circuit tourists and fascinating wildlife experiences within India. 106
  • 107. 8. MICE Tourism: (Meetings, Incentives, Conferences and Exhibitions) - it caters to business travellers, mostly corporates, business meetings, international conferences and conventions, events and exhibitions. (E.g.) Hong Kong, Malaysia and Dubai are top destinations for MICE tourism. - it combines annual business meetings and conferences with events. - there are world class convention centres like Le Meridian, Hyderabad International Convention centre, etc. Unit 3– Tourism & Travel Services 107
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