COVER PAGE OF PROJECT REPORT

TITLE OF PROJECT REPORT

ROLE OF INTERNET TECHNOLOGY IN

TOURISM MARKETING

Under the supervision of

--------------------------------

(supervisor,s name )

PROJECT REPORT SUBMITTED TO

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF

BACHELOR OF TOURISM STUDIES

STUDENT NAME

ENROLLMENT NUMBER

STUDY CENTRE

REGIONAL CENTRE

ROLE OF INTERNET TECHNOLOGY IN

TOURISM MARKETING

UNDER THE SUPERVISION OF MS. SUVIDHA KHANNA

PROJECT REPORT SUBMITTED TO

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

BACHELOR OF TOURISM STUDIES

STUDENT NAME

ENROLLMENT NUMBER

STUDY CENTRE

REGIONAL CENTRE

INDEX

CHAPTER ONE

1. INTRODUCTION.CHAPTER TWO

1. TOURISM MARKETING THROUGH INTERNET.(a). THE CURRENT STATEOF E-COMMERCE

IN TOURISM BUSINESS.

(b). ROLE OF INTERNET IN PROVIDING

MARKETING INTELLIGENCE.

© INTERNET MARKETING ADVANTAGE FOR

SMALL BUSINESSES.

(d). ROLE OF INTERNET IN DESTINATION

MARKETING.

(e). ROLE OF INTERNET AS A MULTI-MEDIA TOOL

IN EFFECTING SALES.

(f). ROLE OF INTERNET IN TOURISM DISTRIBUTION.

(g). USE OF INTERNET IN TOURISM MARKETING

BY DIFFERENT COUNTRIES.

(h). HOW DIFFERENT STATES OF INDIAN UNION ARE

USING INTERNET FOR TOURISM MARKETING.

(i). USE OF INTERNET TOURISM MARKETING BY

INTERNATIONAL AND DOMESTIC HOTEL CHAINS

AND BY HERITAGE HOTELS.

(j). USE OF INTERNET TOURISM MARKETING BY

TRAVELAGENTS AND TOUR OPERATORS.

(k). USE OF SEARCH ENGINES IN TOURISM

MARKETING ON THE INTERNET.

CHAPTER THREE 1. A STUDY OF THE DESTINATION

BASED TOURISM WEBSITES IN PROMOTING

JAMMU AS A DESTINATION. CHAPTER FOUR

1. OBJECTIVES AND RESEARCH METHODOLOGY(a). BRIEF INTRODUCTION OF THE TOPIC.

(b). OBJECTIVES.

©. RESEARCH METHODOLOGY

CHAPTER FIVE

1. SUGGESTIONS AND CONCLUSION

BIBLIOGRAPHY

CHAPTER ONE

ROLE OF INTERNET TECHNOLOGY IN TOURISM MARKETING

INTRODUCTION: -

Internet marketing is the new paradigm shift in tourism

marketing. Focusing on the recent decades we see that all

major technological breakthroughs have impacted the world

of marketing in different ways. Consequently new approaches

have had to be designed at every level. As an example the

invention of television forced such changes. The major

portion of the marketing revenue shifted from the radio to the

television. Now as contrasted to the earlier era, the visual

content assumed primary importance in commercials beamed

on television. The introduction of technologically superior

television sets and multi-channel cable services brought forth

further changes in the content and presentation of

commercials, as the voice content can be easily muted and

channel surfing between channels by television viewers is

rampant. Therefore intelligent marketers have had to make

definite changes which can help them retain their share of

eyeballs.

Similarly the introduction and wide use of computers and

internet across all horizontal and vertical sections of civil

society and corporate world has created earth shaking changes

in the world of marketing.

And when we speak of tourism marketing through internet

then we realize that, the tourism product because of its special

features can be sold very well through internet and that

tourism marketing is inherently compatible with internet

usage. In the following paragraphs the researcher will try to

find out how the world of tourism marketing is adapting to

internet usage.

CHAPTER TWO

TOURISM MARKETING THROUGH INTERNET: -

Now the researcher will examine some of the key issues

related to the marketing of tourism on the internet. The main

features of the internet as an effective and efficient marketing

medium include its addressability, interactivity, flexibility,

and accessibility and its role in improving customer service

and reducing costs. Tourism products have unique

characteristics that make them perfect to be marketed through

the internet.

(a). The current stateof e-commerce on tourism business and

The likely future scenario.

Regarding the future of tourism marketing there appears to be

little doubt that the internet will permeate into every aspect of

tourism business and every area of marketing activities.

Indeed it is likely to become the dominant platform and

instrument of tourism promotion and distribution in five years

time. This is based on the researcher’s belief that internet

marketing has now survived its infancy and transition from

introduction to growth stage is happening as more and more

people and organizations are recognizing its unique and great

potential for marketing. The increasing power of computers,

the falling costs, the higher level of computer literacy and web

skills will make web surfing a necessity in everyday life to an

increasingly large population especially in the developed

world. In the developing world also particularly in the

countries of India and China internet usage is increasing

exponentially every year. Technological constraints will also

be overcome in the next few years with quality broadband

access via optical fiber or satellites to improve web access,

development of constantly improving firewalls, encryption

and digital signature technologies will enhance security, the

development of more sophisticated search engines and the

worldwide use of wireless application protocol technology

(WAP) linking mobiles to the internet will extend the range of

services available to the public. At the same time

governments, are increasingly facilitating e-commerce

through providing incentives to small businesses, facilitating

infrastructure development and establishing the regulatory

framework which supports and protects all parties involved.

The researcher holds the view that the key to the future

growth and improvement in internet tourism marketing lies in

tourism organizations. The market conditions and web

technologies are improving and the legal and social

environment is starting to take shape, it is up to tourism

organizations to seize and exploit the opportunities created by

such changes to its full potential. Therefore the question is

how tourism organizations can take advantage of the changes

and opportunities brought about by the internet. Offering a

prescription is not necessary since different tourism

businesses have different resources and operate in different

settings. Three issues are important to be considered for

changing the mentality of tourism organizations to prepare for

a new virtual business environment.

To market tourism products successfully on the internet, a

tourism organization must first of all have a strategic vision

whereby it can fully comprehend the changing market space,

from physical to virtual and the underlying forces shaping this

new marketing space. The internet has altered forever the

tourism marketing system and its environment, and no

tourism business can escape its impact. Tourism organizations

should become engaged in internet and embrace net

commerce to find more opportunities and those who still

pretend that internet is a bad dream may not exist for long.

Whether a organization likes it or not internet is here and it is

going to dominate tourism marketing. Andy Grove, the

chairman of Intel has been widely quoted as saying “

companies will be internet companies or they won’t be

companies at all”.

Internet must not be treated as just a promotion aid or

distribution device but should be seen as a major force in

itself that profoundly changes the way tourist business is

conducted. Marketers will reconstitute those processes by

which they identify, communicate, and deliver customer

value. They will need to improve their skills in managing

individual customers and allies. Tourism marketers will have

to change their business paradigm and marketing practices to

suit the new internet era.

As the net alters critical success factors in many businesses,

tourism organizations must use it effectively to create new

competitive advantages. Some tour operators in Europe lost

control of distribution through vertical integration with travel

agencies in the last decade, but with emerging web-based

online sales companies, control of how they let the product be

distributed rests with them. In responding to threats from

airlines direct sale, the major global Distribution Systems

have been using the internet to develop web-based GDS’s and

to diversify their product lines. Clearly, tourism organizations

have to adopt a technology management policy that will assist

their competitive strategy and leverage the business

environment to their advantage. Strategic internet partnerships

or alliances, especially those between tourism companies, and

tourism and IT companies also create a lot of increased value

for the partners.

Tourism includes all the elements a destination has to offer to

tourists including the social, cultural and physical

environments as well as the ‘touristic’ components of tourism

supply including the board and lodging facilities and other

travel related services. In the tourism destination marketing,

the tourist looks at the holiday as a complete experience but it

is sold in the market palace in bits as beds, meals, tours, seats

etc. by a plethora of independent suppliers. So it is here that

the multimedia and quickly navigable content of a destination

on the internet can give him an idea of the complete

experience available.

(b). Role of internet in providing marketing intelligence.

More than automating online business transaction it can

“informate” in that it provides a vast amount of information

which was previously unavailable. Marketing is essentially an

information dispensing exercise which links and organization

to the external environment in which it operates. The internet

is an invaluable source of low-cost but up to date marketing

intelligence which can be a source of information (for

example details of customers) and other web sites ( for

information on competitive situations, market conditions, and

the general environment). The internet is extremely useful in

building a customer database. With the use of proper software

such as Aarum’s software web-trak ( and even with simple

means such as cookies, web forms, and email feedback) it is

easy to gather systematic information of people who visited

the company’s website. This information can be used to

identify prospects, understand customer needs and customize

resources to give greater levels of service to customers. The

online transaction histories can be the primary marketing

resource of tourism companies, determining what kind of

travel products they can deliver, what market segments they

serve and the value of each customer to the firm.

Through many web sites, a company can get valuable

information about market demand, supply, competition, and

economic, demographic, legislation and technological

changes in the domestic and international markets. Web sites

of government agencies, media companies, and non-profit

organizations usually provide large amount of information

free on general issues; while commercial sites can be accessed

to know about new technologies, best business practices and

industry initiatives. Scanning competitors’ home pages helps

companies to track competitors marketing strategies and

tactics. From a hotel chain’s web sites one can easily locate

information about chain’s main business activities, financial

performance, new hotel openings and investment plans, etc.

©. Internet marketing advantage for small businesses.

Tourism industry is also polarized in that on the one hand,

there are a few multinational airlines, tour operators, hotel

chains and theme parks; on the other hand there are millions

of small businesses, especially in travel retailing, tour guiding,

hotel and catering sectors. For the small tourism enterprises,

the web is probably the first effective and feasible medium for

them to carry out professional marketing function beyond the

basic sales operations. The net has opened the door for small

businesses with little capital to reach a worldwide market.

Open access results in lower entry barriers so that virtually

anyone can both access and provide services on the net. The

net also re-defines economies of scale, allowing small firms to

achieve low unit costs of operating in markets. In the

hospitality sector the small firms could also have more cost-

effective marketing through the destination’s web site. For

this reason some scholars have praised the internet as a

marketer’s dream as it allows companies of different sizes to

compete on more equal terms. Nevertheless it must be noted

that net provides a level playing field for companies of all

sizes only at the point of entry – that is to establish a web

presence because the development of a fully functional

marketing and sales site and especially the promotion of the

site to increase visitor numbers requires huge investments.

(d). Role of internet in destination marketing.

In destination marketing it would be effective for a destination

to develop a sustainable electronic” infrastructure” that is

capable of establishing a comprehensive and multi-lingual

website. This would provide potential tourists with up to date

information from a variety of sources, about the destination in

all aspects of tourism – tourist attractions, transportation,

accommodation, tour operators and leisure facilities – as well

as the background of its people, culture, history, economy and

climate. The master destination database can be integrated

through hyperlinks with individual websites and with a suite

of applications which enable tourists to pick and mix their

own holiday packages. As such a mega-site could be the

“portal” or the home page of other relevant sites in a

destination, it will be a great deal easier for the destination to

establish itself in the already crowded web-space. From this

first stop of call, a visitor can search for all the information as

to whether to visit the destination, what facilities to use and

arrange for reservations and transactions online. In

comparison, with the traditional media, in order to get the

relevant information a tourist often needs to go to a travel

agency to get a brochure, to a bookshop to get a guide book,

and may also contact the destination’s national tourist office

to get some more information. While the printed literature the

tourist gets is often outdated a properly constructed and

maintained website can provide right-to-the-minute

information.

(e). Role of internet as a multi-media tool in

Effecting sales.

Tourism industry is information intensive and information is

often dubbed the life-blood or cement of the industry which

holds together the different producers within the travel

industry- airlines, tour operators, car rentals, cruise lines and

other supplies. In few other areas are the generation gathering,

processing, application and communication of information as

important as they are for travel and tourism industry. The

perishability of tourism products and the often erratic tourist

demand make the task of balancing tourism supply and

demand more difficult than for any other sector. This is

probably why tourism became one of the first industries to

widely apply IT and conduct electronic commerce from the

1960’s in the form of computerized reservations and global

distribution systems (GDS’s).

A virtually unlimited amount of information can be stored at a

web site and an unlimited number of users can retrieve it at

any time from anywhere in the world. The web not only

provides information it provides it from a much wider range

of sources; while in the past tourists were almost exclusively

dependent upon representations and descriptions by the travel

trade. The web can support a much greater variety of formats

from text to photos, graphs, audio and video clips, whereas in

the past, tourists primarily relied on the printed broachers as

the limited copies of the video’s of a destination were only

available with major travel agents. The web based electronic

brochure can also facilitate the complex process of choosing

among hundreds of computer generated selections from back-

end databases linked to web-servers whereas printed

broachers are usually arranged and indexed one by one, often

by destination. Through internet a prospective tourist can also

“test drive” a prospective holiday by viewing real time scenes

through cameras placed in hotels, clubs, restaurants, scenic

spots and other sites in the destination and downloadable clips

can also show episodes and scenes of festivals, art

performances and service delivery to facilitate tourists in

comparison and evaluation of intangible services, the quality

of which he can assess in advance.

(f). Role of internet in tourism distribution.

In the 1960’s the CRS’s and the GDS’s had only improved the

information communication between tourist businesses,

originally between airlines and travel agents and they were

expensive both to the tourism producer and retailer. Moreover

the systems were incompatible with each other and “switch”

companies such as THISCO (The hotel industry switching

company) was needed to connect hotels with all the major

GDS’s to facilitate room reservations. With the effective use

of Internet these problems are now addressed effectively and

cheaply. Having realized the tremendous potential of the

internet GDS companies have already started developing and

improving new web based systems to change the whole

tourism distribution landscape in the near future. For example,

Amadeus launched Amadeus pro web in Jan 2000, which is a

browser based reservation tool allowing travel agents trade

worldwide without a dedicated communications line and at a

greatly reduced cost. In fact, with this system any internet user

can become an online travel agent within a week.

The cost of setting up a promotional web site (i.e. without

booking facilities) is relatively low. An average computer

user, given a proper software package, such as Microsoft

Frontpage can build a basic site in days. The marginal cost of

adding an extra web page to the site is negligible. The more

comprehensive and powerful web sites, such as a destination

site offers complete information - a virtual multimedia

brochure to include thousands of product offerings, and a site

which integrates information, reservation and transaction, will

cost more and take longer to develop. As compared to the tens

of millions of dollars spent by airlines, tour operators, and

hotel chains on TV and magazine ads the web is a low cost

medium for promotion. The simple web presence, by allowing

customers to find answers to their inquiries themselves can

also help to reduce telephone charges based on toll free

numbers.

The Internet also has a great potential for saving distribution

costs. Distribution, the selling and marketing of tickets, is one

of the biggest cost items in the airline industry. Airlines web-

based ticket sale operations can at least eliminate the travel

agents commission. Internet based supply chain management

can also save procurement costs for businesses.

(g). Use of internet in tourism marketing by different

Countries.

Now the researcher will find out how the various countries

have put up a web presence at the national level. India’s

national tourism office has put up a website called

www.incredibleindia.com, to promote its incredibleIndia

campaign to get foreign tourists to visit India. It is a good

portal though not an exhaustive one. On its home page it

promotes tours of north India, Goa , Kerela Taj Mahal etc. On

united states front we find the www.ustourism.com with the

map of U.S. functioning as the homepage and the 50 states

working as hyperlinks. An excellent portal. On the united

Europe front we have the www.Eurotourism.com an excellent

portal which as homepage has a list of all European countries

and a map of Europe it is filled with hyperlinks to individual

countries and regions and then links to all facilities grouped

under hotel/inn, restaurant, activity/adventure,

hostel/backpacking and many other. For Africa we have

www.southafricatourism.net and www.africatourism.com.

The south Africa tourism site is divided into international

visitors, local travelers, travel trade and business tourism.

There are also descriptions about and hyperlinks to the

various wildlife parks of the region. A section shows this

week in South Africa and highlights events. The homepage

shows video clips of life in cities of South Africa. The Africa

tourism website promotes safaris overland tours and self

drives. The scene in Asia is different there is no united

marketing effort. There is a www.tourism-asia.net with

hyperlinks for Singapore, Hong Kong, Maldives, China and

South East Asia. There is also the www.asean-tourism.com

which promotes Brunei, Cambodia, Indonesia Laos, Malaysia,

Myanmar, Philippines, Singapore, Thailand and Vietnam. As

regards China the China national tourist office has a official

website called www.cnto.org which on its home page has

China Visa, Tour operator locator, mice tourism, travel info

tips etc. A separate window provides hyperlinks to all its

cities. Another site www.travelchinaguide.com provides just

the links to and information of a number of Chinese cities and

all the tourist attractions the respective cities possess.

Regarding Japan the national tourism office of Japan has a

website called www.jnto.go.jp. This is a truly multi-lingual

site offered in Japanese, English, French, Duestch, Portuguese

and Greek. This site is different in separate windows it

informs about travel professionals, local websites, PDF files

of brochures of Japan, Japan tourist photo library, attractions

of Japan, History and Culture. A section called latest topics

highlights different articles dealing with tourist attractions in

Japan, new immigration procedures, train seat reservations,

tourist information centers and all new relevant developments.

It constantly uptodated with to-the-minute information. As

regards Australia www.austailia.com is their official tourism

site. It includes sections such as explore by maps, getting

around, holiday ideas, finding a travel agent, what’s on. A

section deals with events. A section invites tourists to visit the

great barrier reef and goes on about its unspoilt qualities.

Lastly a section gives travel information on getting there,

visas and climate.

(h). Use of internet by the different states of the republic of

India for tourism marketing.

Now the researcher will find out how the states of the Indian

union are marketing their tourism products on the internet.

Surfing the internet extensively the researcher found that

practically every state of the union and every union territory

in India have dedicated tourism web sites sponsored by the

government. Many of the states which have a roaring tourism

business like J&K, Rajasthan, Kerela, uttranchal, and

Himachal pradesh are also served by private web sites

detailing the charms of the respective state. As a

representative also of the websites of the rest of the states of

the union the researcher will focus on the websites pertaining

to these high value tourism states. First of all the official

website of the tourism department of J&K is

www.jktourism.org. On one side hyperlinks lead to the sub-

sections on Jammu, Kashmir and Ladakh on the other side

charms of the many seasons in the state are delineated. A

section below provides links to Gulmarg-asia’s winter sport’s

destination, international rafting competition-kashmir,

memoirs of recent visitors, shrines and monuments in

Kashmir, tourism book review and tourism department’s

special schemes. Himachal pradesh’s official tourism website

www.himachaltourism.nic.in is better structured and provides

all relevant hyperlinks on the homepage itself. It informs

about history, access, tourist destinations, travel tips, lakes ,

heritage wildlife, religious tourism, eco tourism, adventure

tourism, trek routes, camping, picture gallery, fairs &

festivals, guides for essentiality certificates, home stay

scheme-2008 and it also provides online HRTC bus ticket

reservations. There is also a special link showing “Govt.

authorized secure online hotel reservation system”. Email-id

of the tourism deptt. Of Himachal pradesha as well as an

online toll free number has been provided. The website of the

tourism department of Rajasthan i.e.

www.rajasthantourism.gov.in promotes the state of Rajasthan

as a whole. It praises the contrasts of its landscape and its

splendid architecture and describes it as the safest state in

India in terms of law and order. A section provides links to

fairs & festivals. Another section works with

accommodations. Hyperlinks provide links to sections

informing about all cities and tourist spots in the state. A good

point is that hyperlinks giving contact details of all the

important officers of DOT and RTDC have been provided.

Separate hyperlinks provide links with palace on wheels,

sound& lightshow- Chittorgarh, and tour programmes has

been planned. The official tourism website of the kerela govt.

www.kerelatourism.org is also a well planned site. Hyperlinks

have been aesthetically placed on the site. The site has a

simple homepage without any flashy overtones. It provides

sections on travel info, tour packages and ayurveda and

highlights kerela beaches, waterfalls, wildlife,houseboats and

the hill stations of kerela. All the rest of the tourism websites

of Indian states are patterned similarly.

(i). Use of internet tourism marketing by international and

Domestic hotel chains and by heritage hotels.

If we focus on the international and domestic hotel chains in

India we find that they have got a very good web presence

with reservation and booking facilities. These hotel chains

have got a formidable web presence: - the ambassador group

of hotels, Best Western group of hotels, Oberoi group of

hotels, Casino hotels, Clarks group of hotels, ITC

welcomegroup hotels, Holiday Inn group of hotels, ITDC

hotels, Jaypee group of hotels, K Raheja group of hotels, Man

Singh group of hotels, Taj group of hotels and Tulip star

group of hotels. All of them provide room reservation

facilities over the internet and can arrange all that is requested

by the guest via the web.

Heritage hotels of India are another exclusive category in

themselves. They have also used the web to position

themselves strategically in the internet hospitality industry

space. Prominent among them are Umaid Bhawan palace-

Jodhpur, Noor us sabah palace –Bhopal, Bassi fort-

chittorgarh, Neemrana fort palace-Neemrana/Rajasthan,

Ramgarh Bunglows-Ramgarh, Piramal

haveli-jhinjunu/Rajasthan, Udaipure Lake palace- udaipur,

Udai Bilas palace-Dungarpur in rajasthan, Raj Mahal Palace-

Jaipur. These heritage hotels are all old havelis or palaces of

the Maharajas or rich merchants of old and have an old world

charm. These heritage properties have also established a

noticeable presence on the web.

(j). Use of Internet tourism marketing by travel agents

And tour operators.

A internet search on travel agents and tour operators in India

shows 333,000 results. It shows the extent of internet

penetration into the world of tourism marketing in India. It is

however lesser than say USA which for same key words

shows 3,220,000 results. However India is still a developing

country and computer usage and Internet penetration have a

long way to go before reaching saturation point.

A very popular site nowadays in India and used extensively

for travel booking is www.yatra.com. It facilitates domestic

travel, international travel helps make reservations on hotels,

arrange holidays, arrange car rentals, and provides bookings

on flights through its site. It is also into corporate travel

planning and execution. It is a complete example of what a

modern Indian travel agency should aspire to be.

(k). Use of search engines in tourism marketing on internet.

A new and interesting development in internet tourism

marketing is the creation of internet search engines dedicated

to tourism. And most of them are still at the development

stage. And the few ones that have been developed cater to

only a designated country or a state. For example

www.uptake.com is a search engine dedicated to the tourism

market in USA. Using this search engine you can search for

any tourism related facility in United States of America. There

is another tourism related search engine dedicated to U.K. But

there is nothing like this still for the tourism market in India.

CHAPTER THREE

ROLE OF DESTINATION BASED TOURISM WEBSITES

IN PROMOTING JAMMU AS A DESTINATION.

Destination based tourism websites can be said to be those

which specifically seek to promote a particular destination as

a tourism attraction. When we study the internet for

destination based tourism websites which have been created

for the specific purpose of promoting Jammu as a tourism

destination we can access many sites. But it is distressing to

note that there is no specific website which has been put up

for the specific purpose of promoting tourism in Jammu only.

There are many websites which promote Jammu by default.

Among them mention may be made of wwwjktourism.org,

www.jammuandkashmir.nic.in, www.jktourism.in,

www.maavaishnodevi.org/help_desk_dir_tourism, and

www.holidayiq.com/destinations/jammu. There are many

more sites but these are the prominent ones. Among all these

sites I found the site www.jktourism.org to be most

informative. It has all the required information on Jammu and

the attractions of Jammu. It provides a complete list of

accommodation alternatives i.e. all classes of hotels with

room tariffs and telephone no’s, dak bunglows and

dharmshalas etc. It provides complete information on

restaurants in the city and the cuisine they provide and all the

general and particular information that may be required. It is

by far the best website so far as the tourism promotion of

Jammu is concerned. Other websites which come close are

www.jammuandkashmir.nic.in and www.kashmirtourism.com

. They also give good information but they are neither as

aesthetic or as detailed.

Among websites created by service providers the most

informative regarding the Jammu region is

www.holidayiq.com/destinations/Jammu and provides all

details of the region. In addition it provides customer reviews

of trips to Jammu and it is a good site for getting information

regarding Jammu. The site www.maavaishnodevi.com also

gives information regarding Jammu but it is very limited as its

focus is the holy pilgrimage in Katra.

As regards a Jammu specific destination based tourism

website which has been singly or jointly been put up by the

service providers themselves it is yet to materialize.

CHAPTER FOUR

OBJECTIVES AND RESEARCH METHODOLOGY

(a). A brief introduction of the topic: - Advances in technology have

always impacted all the activities in the world and all the

departments of life and marketing can be no exception.

That is because the tourism product that is being sold is

intangible in nature or let us say that it is an experience that is

being sold and the prospective tourist himself or herself is a

part of this experience.

Therefore in this situation the use of internet with all its

advantages can be really beneficial for marketing tourism

products. Especially as the internet can also be used as a

Multimedia tool, its effectiveness is greatly increased as the

prospective tourist through the use of sound bytes, and video

clips can be given a feel of his future experience which is

being promoted. It is these aspects of the internet in relation to

tourism marketing which are being studied in this project

work.

OBJECTIVES: - The objectives of the study will be

1. To study how the internet is being currently used for tourism marketing by the various constituents of the tourism industry.

2. To study the role of destination based tourism websites inPromoting Jammu as a destination by service providers.

RESEARCH METHODOLOGY:-

1. Collection of primary data:- from internet surfing of a variedCross-section of websites relevant from a tourism point

of

View.

2. Collection of secondary data: - from reports relating toTourism marketing on internet which have been

published

Online and relevant articles in newspapers, magazines

etc.

CHAPTER FIVE

CONCLUSION AND SUGGESTIONS.

Thus in the preceding paragraphs the researcher has tried to

find out the impact of internet on the tourism industry in India

and internationally. The researcher has tried to find out the

compatibility of internet marketing with tourism and has

analyzed the scenario internationally and on the internet. In

India the researcher focused on the constituents of the tourism

industry and how they were leveraging the world wide web

for their advantage. From his research the researcher is

convinced that internet marketing is going to be the dominant

marketing technique in the industry a few years down the line

and the businesses which don’t adapt to internet marketing are

only going to put themselves in a difficult position. Hence the

industry should go out to create a strong internet presence but

they should also synergies their efforts appropriately as that

would keep the long term returns coming.

The researcher is offering a few suggestions to help tourism

companies use the internet for marketing in a better manner.

1. Strategic Vision.: - The management of all tourismCompanies Should have a long term strategy for

using the internet and make investments

accordingly.

2. Constant updating:- It is important to constantly keepTrack of technological developments in the overall

Scenario and to keep abreast of the changes.

3. Ready to use databases: - To use the net effectively

Ready to use databases for all aspects of the business

Should be possessed by all enterprises.

4. Development of India specific search engine:- To

Accelerate the development of e-tourism in India it

Is worthwhile to develop a India specific search

Engine for tourism industry, and industry will itself

Have to generate resources and take action in this

Regard.

5. Facilitation by government: - If through technologicalDevelopment better encryption technology and

more secure sites become available and the

Government

Legally validates digital signatures, then tourism

marketing through internet can become much more

widespread in India.

BIBLIOGRAPHY

1. WEBSITESi). www.Destinationmanagementsystem.comii) wwwhotels-online/internetconstraints/htmliii) www.tourisminternetmarketing.comiv) www.tourismkeys.ca/blogv) www.jensthraenhart.com/cblogvi) www.forimmediaterelease.net/pmvii)www.isoc.org/inet

viii)www.acroglobal.comix) www.netstarter.com.au/internet-tourism

x) www.queticointernetmarketing.com

2. TOURISM WEBSITES OF VARIOUS COUNTRIES.

3. TOURISM WEBSITES OF STATES OF REPUBLICOF INDIA.

4. TOURISM WEBSITES OF TRAVEL AGENTS ANDTOUR OPERATORS.

5. TOURISM WEBSITES OF VARIOUS HOTELCHAINS, HERITAGE HOTELS AND AIRLINES,TOURIST TRANSPORT PROVIDERS ANDOTHER SERVICE PROVIDERS.

ROLE OF INTERNET TECHNOLOGY IN TOURISM MARKETING

OBJECTIVES: -

1. To study how the internet is being currently used for tourism marketing by the various constituents of the tourism industry.

2. To study the effectiveness of tourism marketing through internet.

INTRODUCTION: - Internet marketing is the new paradigm shift in tourism marketing. Focusing on the recent decades we see that all major technological breakthroughs have impacted the world of marketing in different ways. Consequently new approaches have had to be designed at every level. As an example the invention of television forced such changes. The major portion of the marketing revenue shifted from the radio to the television. Now as contrasted to the earlier era, the visual content assumed primary importance in commercials beamed on television. The introduction of technologically superior television sets and multi-channel cable services brought forth further changes in the content and presentation of commercials, as the voice content can be easily muted and channel surfing between channels by television viewers is rampant. Therefore intelligent marketers have had to make definite changes which can help them retain their share of eyeballs.

Similarly the introduction and wide use of computers and internet across all horizontal and vertical sections of civil society and corporate world has created earth shaking changes in the world of marketing.

And when we speak of tourism marketing through internet then we realize that, the tourism product because of its special features can be sold very well through internet and that tourism marketing is inherently compatible with internet usage. In the following paragraphs the researcher will try to find out how the world of tourism marketing is adapting to internet usage.

TOURISM MARKETING THROUGH INTERNET: -

Now the researcher will examine some of the key issues related to the marketing of tourism on the internet. The main features of the internet as an effective and efficient marketing medium include its addressability, interactivity, flexibility, and accessibility and its role in improving customer service and reducing costs. Tourism products have unique characteristics that make them perfect to be marketed through the internetRegarding the future of tourism marketing there appears to be little doubt that the internet will permeate into every aspect of tourism business and every area of marketing activities. Indeed it is likely to become the dominant platform and instrument of tourism promotion and distribution in five years time. This is based on the researcher’s belief that internet marketing has now survived its infancy and transition from introduction to growth stage is happening as more

and more people and organizations are recognizing its unique and great potential for marketing. The increasing power of computers, the falling costs, the higher level of computer literacy and web skills will make web surfing a necessity in everyday life to an increasingly large population especially in the developed world. In the developing world also particularly in the countries of India and China internet usage is increasing exponentially every year. Technological constraints will also be overcome in the next few years with quality broadband access via optical fiber or satellites to improve web access, development of constantly improving firewalls, encryption and digital signature technologies will enhance security, the development of more sophisticated search engines and the worldwide use of wireless application protocol technology (WAP) linking mobiles to the internet will extend the range of services available to the public. At the same time governments, are increasingly facilitating e-commerce through providing incentives to small businesses, facilitating infrastructure development and establishing the regulatory framework which supports and protects all parties involved.

The researcher holds the view that the key to the future growth and improvement in internet tourism marketing lies in tourism organizations. The market conditions and web technologies are improving and the legal and social environment is starting to take shape, it is up to tourism organizations to seize and exploit the opportunities created by such changes to its full potential. Therefore the question is how tourism organizations can take advantage of the changes and opportunities brought about by the internet. Offering a prescription is not necessary since different tourism businesses have different resources and operate in different settings. Three issues are important to be considered for changing the mentality of tourism organizations to prepare for a new virtual business environment.To market tourism products successfully on the internet, a tourism organization must first of all have a strategic vision whereby it can fully comprehend the changing market space, from physical to virtual and the underlying forces shaping this new marketing space. The internet has altered forever the tourism marketing system and its environment, and no tourism business can escape its impact. Tourism organizations should become engaged in internet and embrace net commerce to find more opportunities and those who still pretend that internet is a bad dream may not exist for long. Whether a organization likes it or not internet is here and it is going to dominate tourism marketing. Andy Grove, the chairman of Intel has been widely quoted as saying “ companies will be internet companies or they won’t be companies at all”.

Internet must not be treated as just a promotion aid or distribution device but should be seen as a major force in itself that profoundly changes the way tourist business is conducted. Marketers will reconstitute those processes by which they identify, communicate, and deliver customer value. They will need to improve their skills in managing individual customers and allies. Tourism marketers will have to change their business paradigm and marketing practices

to suit the new internet era.

As the net alters critical success factors in many businesses, tourism organizations must use it effectively to create new competitive advantages. Some tour operators in Europe lost control of distribution through vertical integration with travel agencies in the last decade, but with emerging web-based online sales companies, control of how they let the product be distributed rests with them. In responding to threats from airlines direct sale, the major global Distribution Systems have been using the internet to develop web-based GDS’s and to diversify their product lines. Clearly, tourism organizations have to adopt a technology management policy that will assist their competitive strategy and leverage the business environment to their advantage. Strategic internet partnerships or alliances, especially those between tourism companies, and tourism and IT companies also create a lot of increased value for the partners.

Tourism includes all the elements a destination has to offer to tourists including the social, cultural and physical environments as well as the ‘touristic’ components of tourism supply including the board and lodging facilities and other travel related services. In the tourism destination marketing, the tourist looks at the holiday as a complete experience but it is sold in the market palace in bits as beds, meals, tours, seats etc. by a plethora of independent suppliers. So it is here that the multimedia and quickly navigable content of a destination on the internet can give him an idea of the complete experience available.

More than automating online business transaction it can “informate” in that it provides a vast amount of information which was previously unavailable. Marketing is essentially an information dispensing exercise which links and organization to the external environment in which it operates. The internet is an invaluable source of low-cost but up to date marketing intelligence which can be a source of information (for example details of customers) and other web sites ( for information on competitive situations, market conditions, and the general environment). The internet is extremely useful in building a customer database. With the use of proper software such as Aarum’s software web-trak ( and even with simple means such as cookies, web forms, and email feedback) it is easy to gather systematic information of people who visited the company’s website. This information can be used to identify prospects, understand customer needs and customize resources to give greater levels of service to customers. The online transaction histories can be the primary marketing resource of tourism companies, determining what kind of travel products they can deliver, what market segments they serve and the value of each customer to the firm.

Through many web sites, a company can get valuable information about market

demand, supply, competition, and economic, demographic, legislation and technological changes in the domestic and international markets. Web sites of government agencies, media companies, and non-profit organizations usually provide large amount of information free on general issues; while commercial sites can be accessed to know about new technologies, best business practices and industry initiatives. Scanning competitors’ home pages helps companies to track competitors marketing strategies and tactics. From a hotel chain’s web sites one can easily locate information about chain’s main business activities, financial performance, new hotel openings and investment plans, etc.

Tourism industry is also polarized in that on the one hand, there are a few multinational airlines, tour operators, hotel chains and theme parks; on the other hand there are millions of small businesses, especially in travel retailing, tour guiding, hotel and catering sectors. For the small tourism enterprises, the web is probably the first effective and feasible medium for them to carry out professional marketing function beyond the basic sales operations. The net has opened the door for small businesses with little capital to reach a worldwide market. Open access results in lower entry barriers so that virtually anyone can both access and provide services on the net. The net also re-defines economies of scale, allowing small firms to achieve low unit costs of operating in markets. In the hospitality sector the small firms could also have more cost-effective marketing through the destination’s web site. For this reason some scholars have praised the internet as a marketer’s dream as it allows companies of different sizes to compete on more equal terms. Nevertheless it must be noted that net provides a level playing field for companies of all sizes only at the point of entry – that is to establish a web presence because the development of a fully functional marketing and sales site and especially the promotion of the site to increase visitor numbers requires huge investments.

In destination marketing it would be effective for a destination to develop a sustainable electronic” infrastructure” that is capable of establishing a comprehensive and multi-lingual website. This would provide potential tourists with up to date information from a variety of sources, about the destination in all aspects of tourism – tourist attractions, transportation, accommodation, tour operators and leisure facilities – as well as the background of its people, culture, history, economy and climate. The master destination database can be integrated through hyperlinks with individual websites and with a suite of applications which enable tourists to pick and mix their own holiday packages. As such a mega-site could be the “portal” or the home page of other relevant sites in a destination, it will be a great deal easier for the destination to establish itself in the already crowded web-space. From this first stop of call, a visitor can search for all the information as to whether to visit the destination, what facilities to use and arrange for reservations and transactions online. In comparison, with

the traditional media, in order to get the relevant information a tourist often needs to go to a travel agency to get a brochure, to a bookshop to get a guide book, and may also contact the destination’s national tourist office to get some more information. While the printed literature the tourist gets is often outdated a properly constructed and maintained website can provide right-to-the-minute information.

Tourism industry is information intensive and information is often dubbed the life-blood or cement of the industry which holds together the different producers within the travel industry- airlines, tour operators, car rentals, cruise lines and other supplies. In few other areas are the generation gathering, processing, application and communication of information as important as they are for travel and tourism industry. The perishability of tourism products and the often erratic tourist demand make the task of balancing tourism supply and demand more difficult than for any other sector. This is probably why tourism became one of the first industries to widely apply IT and conduct electronic commerce from the 1960’s in the form of computerized reservations and global distribution systems (GDS’s).

A virtually unlimited amount of information can be stored at a web site and an unlimited number of users can retrieve it at any time from anywhere in the world. The web not only provides information it provides it from a much wider range of sources; while in the past tourists were almost exclusively dependent upon representations and descriptions by the travel trade. The web can support a much greater variety of formats from text to photos, graphs, audio and video clips, whereas in the past, tourists primarily relied on the printed broachers as the limited copies of the video’s of a destination were only available with major travel agents. The web based electronic brochure can also facilitate the complex process of choosing among hundreds of computer generated selections from back-end databases linked to web-servers whereas printed broachers are usually arranged and indexed one by one, often by destination. Through internet a prospective tourist can also “test drive” a prospective holiday by viewing real time scenes through cameras placed in hotels, clubs, restaurants, scenic spots and other sites in the destination and downloadable clips can also show episodes and scenes of festivals, art performances and service delivery to facilitate tourists in comparison and evaluation of intangible services, the quality of which he can assess in advance.

In the 1960’s the CRS’s and the GDS’s had only improved the information communication between tourist businesses, originally between airlines and travel agents and they were expensive both to the tourism producer and retailer. Moreover the systems were incompatible with each other and “switch” companies such as THISCO (The hotel industry switching company) was

needed to connect hotels with all the major GDS’s to facilitate room reservations. With the effective use of Internet these problems are now addressed effectively and cheaply. Having realized the tremendous potential of the internet GDS companies have already started developing and improving new web based systems to change the whole tourism distribution landscape in the near future. For example, Amadeus launched Amadeus pro web in Jan 2000, which is a browser based reservation tool allowing travel agents trade worldwide without a dedicated communications line and at a greatly reduced cost. In fact, with this system any internet user can become an online travel agent within a week.

The cost of setting up a promotional web site (i.e. without booking facilities) is relatively low. An average computer user, given a proper software package, such as Microsoft Frontpage can build a basic site in days. The marginal cost of adding an extra web page to the site is negligible. The more comprehensive and powerful web sites, such as a destination site offers complete information - a virtual multimedia brochure to include thousands of product offerings, and a site which integrates information, reservation and transaction, will cost more and take longer to develop. As compared to the tens of millions of dollars spent by airlines, tour operators, and hotel chains on TV and magazine ads the web is a low cost medium for promotion. The simple web presence, by allowing customers to find answers to their inquiries themselves can also help to reduce telephone charges based on toll free numbers.

The Internet also has a great potential for saving distribution costs. Distribution, the selling and marketing of tickets, is one of the biggest cost items in the airline industry. Airlines web-based ticket sale operations can at least eliminate the travel agents commission. Internet based supply chain management can also save procurement costs for businesses.

Now the researcher will find out how the various countries have put up a web presence at the national level. India’s national tourism office has put up a website called www.incredibleindia.com, to promote its incredibleIndia campaign to get foreign tourists to visit India. It is a good portal though not an exhaustive one. On its home page it promotes tours of north India, Goa , Kerela Taj Mahal etc. On united states front we find the www.ustourism.com with the map of U.S. functioning as the homepage and the 50 states working as hyperlinks. An excellent portal. On the united Europe front we have the www.Eurotourism.com an excellent portal which as homepage has a list of all European countries and a map of Europe it is filled with hyperlinks to individual countries and regions and then links to all facilities grouped under hotel/inn, restaurant, activity/adventure, hostel/backpacking and many other.

For Africa we have www.southafricatourism.net and www.africatourism.com. The south Africa tourism site is divided into international visitors, local travelers, travel trade and business tourism. There are also descriptions about and hyperlinks to the various wildlife parks of the region. A section shows this week in South Africa and highlights events. The homepage shows video clips of life in cities of South Africa. The Africa tourism website promotes safaris overland tours and self drives. The scene in Asia is different there is no united marketing effort. There is a www.tourism-asia.net with hyperlinks for Singapore, Hong Kong, Maldives, China and South East Asia. There is also the www.asean-tourism.com which promotes Brunei, Cambodia, Indonesia Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. As regards China the China national tourist office has a official website called www.cnto.org which on its home page has China Visa, Tour operator locator, mice tourism, travel info tips etc. A separate window provides hyperlinks to all its cities. Another site www.travelchinaguide.com provides just the links to and information of a number of Chinese cities and all the tourist attractions the respective cities possess. Regarding Japan the national tourism office of Japan has a website called www.jnto.go.jp. This is a truly multi-lingual site offered in Japanese, English, French, Duestch, Portuguese and Greek. This site is different in separate windows it informs about travel professionals, local websites, PDF files of brochures of Japan, Japan tourist photo library, attractions of Japan, History and Culture. A section called latest topics highlights different articles dealing with tourist attractions in Japan, new immigration procedures, train seat reservations, tourist information centers and all new relevant developments. It constantly uptodated with to-the-minute information. As regards Australia www.austailia.com is their official tourism site. It includes sections such as explore by maps, getting around, holiday ideas, finding a travel agent, what’s on. A section deals with events. A section invites tourists to visit the great barrier reef and goes on about its unspoilt qualities. Lastly a section gives travel information on getting there, visas and climate.

Now the researcher will find out how the states of the Indian union are marketing their tourism products on the internet. Surfing the internet extensively the researcher found that practically every state of the union and every union territory in India have dedicated tourism web sites sponsored by the government. Many of the states which have a roaring tourism business like J&K, Rajasthan, Kerela, uttranchal, and Himachal pradesh are also served by private web sites detailing the charms of the respective state. As a representative also of the websites of the rest of the states of the union the researcher will focus on the websites pertaining to these high value tourism states. First of all the official website of the tourism department of J&K is www.jktourism.org. On one side hyperlinks lead to the sub-sections on Jammu, Kashmir and Ladakh on

the other side charms of the many seasons in the state are delineated. A section below provides links to Gulmarg-asia’s winter sport’s destination, international rafting competition-kashmir, memoirs of recent visitors, shrines and monuments in Kashmir, tourism book review and tourism department’s special schemes. Himachal pradesh’s official tourism website www.himachaltourism.nic.in is better structured and provides all relevant hyperlinks on the homepage itself. It informs about history, access, tourist destinations, travel tips, lakes , heritage wildlife, religious tourism, eco tourism, adventure tourism, trek routes, camping, picture gallery, fairs & festivals, guides for essentiality certificates, home stay scheme-2008 and it also provides online HRTC bus ticket reservations. There is also a special link showing “Govt. authorized secure online hotel reservation system”. Email-id of the tourism deptt. Of Himachal pradesha as well as an online toll free number has been provided. The website of the tourism department of Rajasthan i.e. www.rajasthantourism.gov.in promotes the state of Rajasthan as a whole. It praises the contrasts of its landscape and its splendid architecture and describes it as the safest state in India in terms of law and order. A section provides links to fairs & festivals. Another section works with accommodations. Hyperlinks provide links to sections informing about all cities and tourist spots in the state. A good point is that hyperlinks giving contact details of all the important officers of DOT and RTDC have been provided. Separate hyperlinks provide links with palace on wheels, sound& lightshow- Chittorgarh, and tour programmes has been planned. The official tourism website of the kerela govt. www.kerelatourism.org is also a well planned site. Hyperlinks have been aesthetically placed on the site. The site has a simple homepage without any flashy overtones. It provides sections on travel info, tour packages and ayurveda and highlights kerela beaches, waterfalls, wildlife,houseboats and the hill stations of kerela. All the rest of the tourism websites of Indian states are patterned similarly.

If we focus on the international and domestic hotel chains in India we find that they have got a very good web presence with reservation and booking facilities. These hotel chains have got a formidable web presence: - the ambassador group of hotels, Best Western group of hotels, Oberoi group of hotels, Casino hotels, Clarks group of hotels, ITC welcomegroup hotels, Holiday Inn group of hotels, ITDC hotels, Jaypee group of hotels, K Raheja group of hotels, Man Singh group of hotels, Taj group of hotels and Tulip star group of hotels. All of them provide room reservation facilities over the internet and can arrange all that is requested by the guest via the web.

Heritage hotels of India are another exclusive category in themselves. They have also used the web to position themselves strategically in the internet hospitality industry space. Prominent among them are Umaid Bhawan palace-

Jodhpur, Noor us sabah palace –Bhopal, Bassi fort- chittorgarh, Neemrana fort palace-Neemrana/Rajasthan, Ramgarh Bunglows-Ramgarh, Piramal haveli-jhinjunu/Rajasthan, Udaipure Lake palace- udaipur, Udai Bilas palace-Dungarpur in rajasthan, Raj Mahal Palace-Jaipur. These heritage hotels are all old havelis or palaces of the Maharajas or rich merchants of old and have an old world charm. These heritage properties have also established a noticeable presence on the web.

A internet search on travel agents and tour operators in India shows 333,000 results. It shows the extent of internet penetration into the world of tourism marketing in India. It is however lesser than say USA which for same key words shows 3,220,000 results. However India is still a developing country and computer usage and Internet penetration have a long way to go before reaching saturation point.

A very popular site nowadays in India and used extensively for travel booking is www.yatra.com. It facilitates domestic travel, international travel helps make reservations on hotels, arrange holidays, arrange car rentals, and provides bookings on flights through its site. It is also into corporate travel planning and execution. It is a complete example of what a modern Indian travel agency should aspire to be.

A new and interesting development in internet tourism marketing is the creation of internet search engines dedicated to tourism. And most of them are still at the development stage. And the few ones that have been developed cater to only a designated country or a state. For example www.uptake.com is a search engine dedicated to the tourism market in USA. Using this search engine you can search for any tourism related facility in United States of America. There is another tourism related search engine dedicated to U.K. But there is nothing like this still for the tourism market in India.

Thus in the preceding paragraphs the researcher has tried to find out the impact of internet on the tourism industry in India and internationally. The researcher has tried to find out the compatibility of internet marketing with tourism and has analyzed the scenario internationally and on the internet. In India the researcher focused on the constituents of the tourism industry and how they were leveraging the world wide web for their advantage. From his research the researcher is convinced that internet marketing is going to be the dominant marketing technique in the industry a few years down the line and the businesses which don’t adapt to internet marketing are only going to put themselves in a difficult position. Hence the industry should go out to create a strong internet presence but they should also synergies their efforts appropriately as that would keep the long term returns coming.