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Travel and Tourism
A service Marketing Perspective



       By
 Priyaranjan 51
Tourism in India
• Tourism is the largest service industry in India, with a
  contribution of 6.23% to the national GDP and 8.78%
  of the total employment in India.
• India witnesses more than 5 million annual foreign
  tourist arrivals and 562 million domestic tourism
  visits.
• The tourism industry in India generated about
  US$100 billion in 2008 and that is expected to
  increase to US$275.5 billion by 2018 at a 9.4%
  annual growth rate.
Marketing in tourism
• As the production and consumption
  experiences are inseparable, it is impossible
  to sample a tourism service before purchase.
• Marketing of tourism is based on
  – Trust
  – Relationship
  – Delivering value
Tourism as a service

             variable


Intangible              Inseparable


             Tourism
             service
Tourism as a service
Intangibility
• Service oriented industries like travel and
  tourism, strive towards converting the intangible
  product into an experience that customer will
  value and cherish.
Variability
• Offering the same quality of service each time a
  customer interacts with the service marketing
  brand( which helps in image building).
Tourism as a service
Inseparability
• Tourism is a service in the true sense,
  because of its unique features.
• Prospective customers have to travel to the
  destination to experience the place; and a
  trail or sampling or test drive is not possible
  before purchase.
The tourism marketing mix

                            product


       price                                     place
                            variable


               Intangible               Inseparable


                            Tourism
                                                      Physical
 promotion                  service
                                                      evidence




                 people                process
Product and Place




• Travel companies design tour packages
  covering a wide range of tourist attractions at
  different prices to attract diverse target
  segments
Promotion
Incredible India campaign
• Advertisements in BAFTA, Grammy, Oscarsand
  major European channels.
Major components of promotion
• Advertising
• Public relations
• Publicity
• Word of mouth
Place


• The world has become a global village.
• In recent times the concept of place has
  transformed tremendously as bookings can
  be made from anywhere online.
People




• People in the travel and tourism industry like
  travel agents, tourist guides, hotel and
  restaurant staff, transport personnel play an
  important role in brand building and
  customer satisfaction.
Process




• Detailed and well documented procedures
  for addressing every situation and service
  context supported by infrastructure and IT
  systems provide consistent and good quality
  service.
Physical Evidence




• Good customer experience is extremely
  important for generating repeat
  business and also business from new
  customer trough positive wor-of-mouth.
Conclusion




• Scope of marketing in tourism
• Lot of tourism places are not discovered
  by tourism companies, if marketed will
  add to the revenue.
References


Marketing Mastermind (Aug 2010)
http://pib.nic.in
THANK YOU

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Travel and tourism

  • 1. Travel and Tourism A service Marketing Perspective By Priyaranjan 51
  • 2. Tourism in India • Tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India. • India witnesses more than 5 million annual foreign tourist arrivals and 562 million domestic tourism visits. • The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.
  • 3. Marketing in tourism • As the production and consumption experiences are inseparable, it is impossible to sample a tourism service before purchase. • Marketing of tourism is based on – Trust – Relationship – Delivering value
  • 4. Tourism as a service variable Intangible Inseparable Tourism service
  • 5. Tourism as a service Intangibility • Service oriented industries like travel and tourism, strive towards converting the intangible product into an experience that customer will value and cherish. Variability • Offering the same quality of service each time a customer interacts with the service marketing brand( which helps in image building).
  • 6. Tourism as a service Inseparability • Tourism is a service in the true sense, because of its unique features. • Prospective customers have to travel to the destination to experience the place; and a trail or sampling or test drive is not possible before purchase.
  • 7. The tourism marketing mix product price place variable Intangible Inseparable Tourism Physical promotion service evidence people process
  • 8. Product and Place • Travel companies design tour packages covering a wide range of tourist attractions at different prices to attract diverse target segments
  • 9.
  • 10. Promotion Incredible India campaign • Advertisements in BAFTA, Grammy, Oscarsand major European channels. Major components of promotion • Advertising • Public relations • Publicity • Word of mouth
  • 11.
  • 12. Place • The world has become a global village. • In recent times the concept of place has transformed tremendously as bookings can be made from anywhere online.
  • 13. People • People in the travel and tourism industry like travel agents, tourist guides, hotel and restaurant staff, transport personnel play an important role in brand building and customer satisfaction.
  • 14. Process • Detailed and well documented procedures for addressing every situation and service context supported by infrastructure and IT systems provide consistent and good quality service.
  • 15. Physical Evidence • Good customer experience is extremely important for generating repeat business and also business from new customer trough positive wor-of-mouth.
  • 16. Conclusion • Scope of marketing in tourism • Lot of tourism places are not discovered by tourism companies, if marketed will add to the revenue.
  • 17. References Marketing Mastermind (Aug 2010) http://pib.nic.in