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Seminar on CONTEMPRORY MANAGEMENTISSUE
Topic:
Marketing mix of Indian travel and tourism
industry
InternationalSchool
OfInformatics And
Management
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SUBMITTED BY:- SUPERVISOR:-
NAVEEN KUMAR GARG MRS.SUMEDHA
ISIM-JAIPUR SHANDILYA
MBA/O8/1491
SEM-II
CONTENTS
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Serial no. particulars Page no.
1 ACKNOLEDGEMENT 3
2 INTRODUCTION 43 TOURISM: PEST ANALYSIS 5
4 TOURISM:SWOT ANALYSIS 7
5 COMPOSITION OF TOURISM INDUSTRY:THE A I M PLAN
8
6 BOTTLENECKS OF TOURISM INDUSTRY 10
7 CLASSIFICATION OF SERVICE 118 7 PS OF TORISM MARKETING 12
9 SERVICES AS A GEME OF PROMICES:THESERVICE TRIANGLE
21
10 TOTAL PRODUCT CONCEPT 22
11 AIRLINE INDUSTRY: SWOT ANALYSIS 29
12JET AIRWAYS:SERVICE TRIANGLE
ANALYSIS 3113 TOUR OPERATORS: PRODUCTS 36
14 RAJ TRAVELS:SERVICE TRIANGLEANALYSIS
37
15 HOTEL INDUSTRY:SWOT ANALYSIS 40
16 HOTEL INDUSTRY:PRODUCTS ANDCUSTOMERS
41
17 LE MERIDIEN:SERVICE TRIANGLEANALYSIS
43
18 CONCLUSION 45
19 BIBLIOGRAPHY 46
3
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ACKNOWLEDGEMENT
I take this opportunity to thank my guide Mrs. Sumedha
shandilya Madam who apart from being a constant source
of inspiration and encouragement also provided me with
her timely help and scholarly ideas in giving final shape to
this report.
I also thank the college library and Computer lab of
I.S.I.M. which provided me many books, round the clock
internet facility to satisfy my thirst of knowledge related to
my subject matter.
I also express my heartily gratitude to all my friends for
their kind support. It was due to their valuable guidance
and support that helped me to complete the report with a lot
of learning.
(NAVEEN GARG)
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INTRODUCTION:
TOURISM INDUSTRY - A Glimpse
The tourism and recreation industry is increasingly recognized as an important economicenvironmental and social force, which can bring both benefit and adversity. A key element of
successful tourism industry is the ability to recognize and deal with change across a wide rang
of behavioral and technological factors and the way they interact.
THE NEW TOURISMAND LEISURE ENVIRONMENT
TOURISM - A STRATEGIC ANANLYSIS
5
TURNING AWAY
Old travel patterns
Established destinationsOld products
Fragmented tourism
industry
Passive consumers
Mass markets
Mass marketing
TURNING AWAY
Old travel patterns
Established destinationsOld products
Fragmented tourism
industry
Passive consumers
Mass markets
Mass marketing
TURNING TOWARDS
New travel patterns
Emerging destinationsNew products
Economic development
tool
Involved participants
Speciality markets
Direct customer
communications
TURNING TOWARDS
New travel patterns
Emerging destinationsNew products
Economic development
tool
Involved participants
Speciality markets
Direct customer
communications
India as a Product
India has vast bounties of nature -
Majestic mountains, beautiful beaches, wonderful wildlife and
enchanting bird sanctuaries.
It has great treasures of art, architecture and philosophical thoughtIt has 572 nature endowed areas
89 national parks
483 wildlife sanctuaries
3606 protected monuments
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PEST ANALYSIS
POLITICAL/LEGAL
The Indian tourism industry is built on the backbone of Government supportand the industry cannot sustain itself without it. The various archaeological
sites and the places of historical importance, the roads and the railways are
all in the hands of the Government.
All the support services like the hotel industry; the airlines industry and the
tourist operators to name some are heavily dependent on the support and the
cooperation of the Government. The major reason as to why the tourist visits
India is for the vast and rich heritage that the country has.
That is under the control of the Government, through the Archaeological
Survey of India. Any policy change that comes into force can have dramatic
effect on the way the industry players perform.
For example, the Government charges a high rates of taxes on the
luxury and the star category hotels and this has always been a cause of
disagreement between the hotel associations and the Government.
ECONOMICThe tourism industry not unlike the other industries grows with the increase
in the spending of the people. The more the people spend the more the
industry grows. The spending power of the people has been increasing in the
country and all over the world.
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Since India is concentrating on the international tourists, the large increase
in the spending power in most developed countries has left a large amount of
idle cash in their hands. This has lead to the tourism boom the world over
and India has been no exception.
SOCIALTourism was always looked upon as something that always leads to the
destruction of the social fabric of a place. The more the amount of outside
people coming into a place, the more the risk of that places loosing itsidentity. Those places that have been able to strike a balance between their
own culture and the demands of the international tourist have profited
handsomely. The examples are Kerala and Rajasthan.
People are now adopting themselves to the fact that tourism pays and it canbe a major source of income for them. Even people themselves have started
travelling. In addition, tourism as a form of recreation has really caught on.
People are willing to travel to a place that is out of way and exotic. When
previously travelling on a holiday meant going to a hill stations and beach,
now people are willing to go in for adventure tourism as well as visit places
that cannot be really be called hospitable.
TECHNOLOGICALTechnology although does not seem to be a major influence at the first
glance, still it plays a major part in the promotion of a place. Better
communication facilities are one of the first prerequisites for growth in the
inflow of tourists.
This has been made possible with technology. Better technology in the field
of communication with cheaper costs have seen many remote and
inaccessible areas of the country get connected to the rest of the world. This
connectivity has made these places visible to the world. Better
communication means access to media. Similarly better transportation
facilities have lead to a dramatic increase in the number of tourists visitingany particular place. The presence of an airport and the availability of
frequent flights are a great convenience to any traveller.
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TOURISM INDUSTRY - SWOT ANALYSIS
STRENGTHS
India's geographical location.
A culmination of deserts,
forests, mountains, and
beaches.
Diversity of culture i.e. a
blend of various civilizations
and their traditions. A wealth of archeological sites
and historical monuments.
WEAKNESSES
Lack of adequate
infrastructure.
A xenophobic attitude among
certain sections of people.
No proper marketing of India's
tourism abroad. Foreigners
still think of India as a land ofsnake charmers.
OPPORTUNITIES
More proactive role from the
government of India in terms
of framing policies. Allowing entry of more
multinational companies into
the country giving us a global
perspective.
Growth of domestic tourism.
THREATS
Economic conditions and
political turmoil in other
countries affects tourism. Aggressive strategies adopted
by other countries like
Australia, Singapore in
promoting tourism.
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COMPOSITION OF TOURISM INDUSTRY
Major industries that support tourism industry are depicted in the
diagram below. These facilities decide the status of a place in a
tourist's portfolio. They on one hand attract tourists to a particular
destination and on the other act as a major demotivating factor ifthey are unable to fulfill the expectations of the visitors.
A three-point plan may be considered to realize the full potential of
tourism. In a word the strategy for effectively tackling the cause of
tourism is AIM.
9
HOTELSHOTELS
TRAVEL AGENTS & TOUR
OPERATORS
TRAVEL AGENTS & TOUROPERATORS
AIRLINEAIRLINE
DESTINATIONSDESTINATIONSCOMPOSITIONCOMPOSITION
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10
'A'- 'AWARENESS'
Within the community there must be awareness of the potential of tourism and its
role as an instrument for promoting economic development and social change.
The tourist must also have the satisfaction of being welcomed and getting
satisfaction on all points of popular contact in the host country.
'I' CREATING 'INFRASTRUCTURE'
The industry's own perception and suggestions must be sharply focused -
highlighting the special needs of the international and domestic traveler by
providing adequate transport, accommodation and other backup facilities.
'M' 'MARKETING'
Apart from creating awareness at home it is required to create awareness abroad
i.e. what India was like (its 5000 year old heritage), what India is like
(liberalization and globalization) and what India will be like in the future
(envision - preferred destination). We should concentrate on research and identify
source markets. The bottom line is to work out a coordinated action plan for all
the three components ofAIM.
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THE BOTTLENECKS
GOVERNMENT
The government is the most important player in this industry and all theother players have to follow the lead taken by it. However, the actions of
the government have not been proactive. Rather it has been late in rising
to the opportunity that the tourism industry offers. There are not enough
incentives been offered to the other players like Hotels and the travel
agencies. The government should be taking the lead and attracting the
industry to places that have vast tourist potential but have still not fully
developed. There are various restrictions in areas like Sikkim and the
Northeast that should be relaxed so that more people can visit those
places.
POORINFRASTRUCTUREDelayed or absence of connectivity to different locations, lack of proper
accommodation facilities, bad roads and no communication facilities are
some of the factors that are stopping people from visiting many places.
Unless the infrastructure is properly developed, a large majority of
tourists will give the country a skip.
APPREHENSIONSABOUTTHELAWANDORDERSITUATIONSThe lack of security that is faced by a lot of tourist is also a major causefor concern. There have been many instances where tourist have been
physically assaulted, robbed and sexually harassed. Any such incident
reflects badly on the country and creates a negative image
MISCONCEPTIONABOUTTHE COUNTRYThe image of the country has taken a long time for the change from the
old image of the land of snake charmers. There are many places where
the image of India is one of poverty, superstition, and diseases. One of
the main reasons why tourist do not visit the country has been the fear of
been infected by some exotic disease. The case of Plague in Surat in 1994
led to a decrease of 36% in arrival of foreign tourists in India All these
misconceptions unless addresses immediately will create a problem for
the growth of the industry.
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CLASSIFICATION OF SERVICE
END-USER:
Travel and tourism is a Consumer based industry. In some cases, whenthere is a tie-up between travel operators & accommodation industry the end
user in this case is also a consumer, the travel agent acts as an intermediary.
SERVICE PRODUCT CONTINUM:
Travel & tourism consists of
both tangible & intangible factors. Tangible being the
destination & intangible factors like experience, feel etc.,
hence in the service product continuum the travel & tourism comes in
between the credence & search qualities i.e. experience qualities.
In Travel & tourism, the destination is the product which is tangible &efforts made by tour operators in offering the tour package i.e.
accommodation, entertainment, is the intangible element.
Both the elements are equally important in travel & tourism.
PEOPLE BASED SERVICE:
12
SEARCH
QUALITIES
EXPERIENCE
QUALITIES
CREDENCE
QUALITIES
Most GoodsMost Services
TRAVEL & TOUR
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High contact: In travel & tourism the people or consumers are in directcontact with the people providing the service. The work starting from
destination enquiry, selection, booking, ticketing, etc. everything has a
human touch to it. Even now people providing such service sit with their
customer to make them decide on their spots.This industry is progressing towards medium contact as now-a-days, some
jobs such as ticketing & hotel reservations are done through internet & using
modern technologies.
EXPERTISE:
Professionalised: a service is said to be professional if the servicerequires a professional procedure & established code of conduct &
affiliation with government body.
Travel & tourism ministry of travel & tourism.
PROFIT ORIENTED SERVICE:
Commercial service.Travel & tourism is profit-oriented service. It has commercial transactions as
it is profit earning industry and not social working.
TOURISM MARKETING: THE SEVEN PS
1. PRODUCT:
2. PRICE
3. PLACE
4. PROMOTION
5. PROCESS
6. PEOPLE
7. PACKAGING
1. PRODUCT:13
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The tourism product which is mainly destination (tangible) can only be
experienced (intangible). The panoramic view of the location (destination),
travel to the destination, the accommodation & facility as well as
entertainment at the destination all forms the tourism product. Thus tourism
is a composite product combination of attraction, facilities & transportation.
Each of these components has it is own significance in the product mix & in
absence of even one single component, the product mix is incomplete.
Attraction of the destination, include:
Natural site:Beach resorts, hill stations.
Places of historical interest: Monuments, archeological sites andmuseums.
Events:Trade fair, musical festival, games, etc.
Cultural attractions: History & folklore, theatre, religion, arts,etc.
The facilities compliment attraction. These make it possible for the tourist to
stay & enjoy the attraction.
Accommodation: Hotel, hostel, campsites.
Food: Restaurants, cafes, bars.
Local transport: Taxis, coaches.
Recreational facilities:Entertainment, sport activity, shopping
facilities.
Accessibility is the means by which the tourists arrive at the location as
without the transportation facility the attraction is of no use.
Infrastructure: Roads, rail, airport, etc.
Equipment: Speed & size of the vehicle.
With increasing number of destination, travel methods & choice of
accommodation, the firm offers these products in the form of package tours
to facilitate consumers to choose from the combinations. These packagetours cater to varying tastes, economy, attitudes & the need for exclusive
service. The idea that service products are intangible is an important one, but
increasingly firms are trying to make their offering more tangible, and
thereby increasing their recognition amongst the target-buying group.
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Tangible gifts such as toiletries, flight bags, even bath robes bearing the
companies logo or brand name.
Eg. Lufthansa & jet airways provide customers with the earphones or
headphones, toys, magazines etc. which helps in giving a tangible aspect to
service provided.
Branding plays a very important role in tourism marketing. Hotel chains,
airlines, & travel operators in particular employ tremendous efforts to ensure
that their name is widely recognized & synonymous with quality, value etc.
Product positioning helps in identifying the images & perceptions of the
tourist products as well as tourists organizations, which match the needs of
the tourist customers.
2. PRICING:
Pricing of the tourist product is a complex matter because of its composite
nature. Geographical location of the destination effects pricing decisions.
Other factors like seasonality & varying demand cannot be overruled.
The objective of pricing of any firm is to fetch a target market share, to
prevent competition, and to take care of the price elasticity of demand.
Prices in travel & tourism are operated in 2-levels. First level contributing to
marketing strategy, which concerns with the product positioning, value formoney, etc. the second level corresponds to the marketing operation or
tactics where the prices are manipulated to match current demand and
competition.
Other methods of setting up pricing in travel & tourism: Cost based pricing: for a business or service in the long run, the
average prices charged must be sufficient to cover fixed cost &
variable costs and also assure a reasonable return on investment.
Demand based pricing: the strength of demand for a product or whatthe market will bear is evident in the pricing behavior of many leisure
industries. Moreover, demand based pricing will suit, as tourism is
greatly affected by seasonal characteristics. At peak times manyleisure facilities have excess demand, tourism firms use high price as
a tactic.
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Competition based pricing: it sets the upper limit within which the
prices must be set. Prices outside this limit sets off an elastic demand
reaction as consumer switch to competing products. In case of new
tourism product, if the strategic objective is market penetration, then
prices must be set very competitive to attract more potential
customers. In the case of niche marketing the prices should portray
this aspect complimented with additional benefits of service offer.
3. PLACE:
Infrastructural facilities, transportation, communication are important for
the development of a tourist centre.
The major decision that the tourism marketer takes regarding distributionis relating to the channel choice and channel members.
The two major functions performed by the distribution system in tourism
marketing are:
To extend the number of points of sale or access away from the
location at which services are performed or delivered.
To facilitate the purchase of service in advance.
The middleman may be a tour operator, who is the wholesalers, who buy
tourism products in bulk and make them available to travel agents who are
retailers. The range of tourist products which are bought by the tour
operators are airline seats, hotel accommodation, bus for local sight seeing,
etc. They may also sell directly to customers.
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Following diagram shows the channel of distribution in tourism industry
-
17
Tourism product
Accommodation
Tour operator
Travel agent
CUSTOMER
TransportationAttraction
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4. PROMOTION:
Creation of awareness is an important factor in the formulation of
marketing mix for the tourism industry. The aim of promotion fall into
three main categories:
To inform
To remind and
To persuade
It will always be necessary to inform prospective customers about new
products and services, new uses, price changes, information to build
consumer confidence and to reduce fears, full descriptions of service
offerings, image building (of destinations) etc.
Some of the important aspects of advertising are-
Advertising and sales promotion- these activities are very effective
when supplemented by publicity and personal selling. Advertising
messages range from subtly attractive visual messages and symbols
designed to appeal and stimulate travel desires and needs, to simple
sales announcements drawing attention to specific product offers.
Most travel and tourism advertising is aimed at consumer or the traveltrade aiming specifically on a tourist product but large organizations
like airlines and hotel groups also buy media space to communicate
the name and image of the organization as a whole.
Public relations and publicity- This include regular articles and
photographs of the tour attraction, use of TV, radio holiday program
and travel journalists to promote editorial comments.
Word of mouth- research shows that about 80% of the tourists visited
different places on the persuasion of their friends and relatives and
also their own judgement. This indicates word-of-mouth promotion is
an important tool in tourism marketing.
Incentives - Incentives to agents, customers and sales force are also
given to induce immediate response like-price cuts, discount vouchers
to use certain facilities in the location, free gifts, price draws etc.
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Brochures- these are provided by the tour operators to stimulate
customers and motivate them to buy. They are used to demonstrate in
pictures and words the image and positioning of the product and
organizations.
New concept in promotion-PIPELINE PROMOTION
PHYSICAL EVIDENCE
The tourist spot, which is an experience for the customer, is tangibilised with
the help of tangible items like-
Comfortable seats while travelling, ambience, layout, and design of the
resort, natural service-scape etc.
The sign posts that indicate directions, route maps, information regarding
rules and regulations of the tourist spot and the sign regarding the public
utilities like toilets, telephone booth.
Printed matter such as brochures also play a important role in the
development of tourism. As the product in tourism is intangible, there is a
need to describe fully the product, which is done by providing an
elaborate brochure which slows how different elements of the program
are carefully planned to include all necessary information to make a
holiday comfortable.
19
Hotel owners and airlines need to promote their services to tour operators
who are in effect wholesalers of travel services and products as well as
promoting their service to end users and independent travellers. Similarly
tour operators will want to ensure that travel agents sell their services in apositive manner and will therefore want to advertise to the agents the
benefits of selling their tours whilst advertising a totally different set of
benefits to the end user.
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The brochure is a product at the point of purchase; it establishes
expectation of quality value for money, product image and status, which
must be matched when the product is delivered.
5. PROCESS:
The operation process of the tourism firm depends on the size of the tourism
firm. The sequential steps involved in the delivery of the tourist product are:
Provision of travel information: the information regarding the travel is
provided at a convenient location where the potential tourist seeksclarifications about his proposed tour.
Preparation of itineraries: it is a composition of series of operations
that are required to plan a tour.
Liaison with providers of services: before any form of travel is sold
over the counter to a customer, contracts have to be entered with the
providers of various services including transportation companies, hotel
accommodation, coaches for local sight-seeing etc.
Planning and costing tours: once the contracts and arrangement are
entered into then comes the task of planning and costing the tour, this
will depend on the tour selected as well as individual requirements.
Ticketing: the computerized reservation system has in recent years
revolutionized the reservation system for both air & rail travel.
Provision of foreign currency & insurance: in case of foreign travel
the final task is to provide foreign currency as well as insurance.
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6. PEOPLE:
Tourism is highly people oriented industry. People here serve as both input
as well as output.
As input, people work as drivers, hotel managers, waiters, travel agents
etc.
People after visiting destinations become output (tourists) for the
industry. Input people are most important from marketing point of view.
Output people (tourists) being from heterogeneous socioeconomic,
religious and cultural backgrounds have diverse needs, wants, tastes and
attitudes. It depends on the dedication of the service people (input) how
efficiently they can cater to the needs of tourists.
Examples of input people are-
The airline and transportation crews interact with the customers
while travelling.
The resort or hotel representatives cater to the needs of the tourist
when they reach the destination.
The tourist guides who interact with the tourist while visiting
various places.
These contact personnel must be trained well on interpersonal skills as
well as product knowledge.
A satisfied tourist is the most powerful marketing tool. Hence, at the outset
while planning marketing efforts the organization must ensure that it has
well trained and qualified service people.
7. PACKAGING:
Packaging plays a very important role in attracting the attention the
prospective customers towards the service in Travel and Tourism. The
packaging includes all the elements offered in a tour package by the tour
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operator. It includes the kind of destination chosen, booking of the
tickets, mode of transport, company, the Hotel, Accommodation, etc.
Example- the tour packages designed by Thomas Cookare one of the
exclusive packages offered amongst other tour operators because of the
above mentioned attributes. Hence people prefer their packages to a great
extent and remain loyal to it.
SERVICES: A GAME OF PROMISES
22
External marketingMaking promisesInternal marketing
Enabling promises
Providers Customers
Organization
InteractivemarketingKeeping promises
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THE DESTINATION PRODUCT
Total Product Concept
23
Core product
Formal
Augmented
Future
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Core productThe basic
benefit
An experience providing an insight into a different culture,
tradition and lifestyle.
Formal The
expected
Comfort during the tour; instruction manual provided for
better understanding of the places of visit; brand name eg.
Kerala known as Gods own country; quality assurance
and TQM eg. Kerala has quality assurance and TQM
implemented for all its products (backwater life and habitats
and traditional houseboats), services and facilities. This
implies it has complete cleanliness in its surroundings and
eco-tourism is also assured.
Augmented
In addition
to the
expected
benefit
Providing the tourist with guide cassettes and also an
interpreter to increase interactivity and understanding. Eg
tours to historical and archeological sites requires elucidation,
which can be ensured through the mentioned means; serving
multi-purpose tourism, i.e. forming a chain of destination,circuit theme by cuddling different states. Eg 1 educational
circuit, business circuit, pilgrimage circuit, beach circuit
Kerala backwaters, Goa , TamilNadu. Eg 2 - Rendezvous
with Maharashtra and the Mughals.
Future Beyond the
usual,
serendipity
(pleasant
surprise)
An experience through which a tourist gets physically
invigorated, mentally rejuvenated, culturally enriched and
spiritually elevated. Eg The New Rajasthan Gift: Palace
On Air. British Airways will convert its 70-seater Boeing
into a flying palace with all possible luxuries flavoured with
the Rajasthani ambience. Tourists (who will be treated as
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Kings) will tour Rajasthan in Limousines (one for each) and
will have personal assistants Darbaris to take care of every
need.
Services: A Game of Promises
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India a land of ancieculture, heritage an
civilization with majest
mountains, beautiful beache
wonderful wildlif
enchanting bird sanctuari
and satiated with gretreasures of art, architectu
and philosophical thought.
External marketing:The Tourism Department of India makes promises tothe tourists about the varied destination products
benefits and experiences using different media
internet, travel & tour shows, advertisements in
newspapers, road shows, etc. This creates awareness
for the tourist (domestic & foreign) and he is inveigled
by it.
26
External marketingMaking promisesInternal marketing
Enabling promises
States Tourist
TourismDepartment of
India
InteractivemarketingKeeping promises
Kerala Gods own countryOnly Indian state to win award in PATA (Pacific Asia
Travel Association)
Tourist attractions beaches, hill stations, forests,
waterfalls, plantations, tropical islands, ayurvedic health
centres and historic monuments.
Standardization & quality assurance is stressed and TQM
implemented for all products, services and facilities.
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Tourists: The customers are the tourists (domestic as well as foreign) who tourvarious destinations with different purpose
Internal marketing:
The Tourism Department has to consider many factors to ensure that
individual states (providers) are able to keep the promises (meet the
expectations of tourist) made by them. This means the Tourism Department
enables promises by performing different activities and committing plans.
To meet the promises, it is necessary for the GOI to enable the Tourism
Department by the following facilities:
Infrastructure: The infrastructural problems relating to water,electricity, road, clean accommodation, healthy and pleasant
environment near the tourists sites should be completely eliminated.
Taxes: The tax structure should be reformed. India is the highest
taxed country for tourist. The rates of luxury tax, expenditure tax,
leisure tax, service tax should be slashed drastically. At many places
there are as many as 23 taxes levied on a hotel. The taxes make the
destinations expensive and uncompetitive in the long run.
Regulations: Specific regulations should be passed to avoid cities
being encroached, water bodies polluted and monuments being
surrounded by slums, stray cattle, beggars and touts.
Disjointed approach: There is lack of co-operation between
ministries tourism, civil aviation, external affairs, culture and urban
development. Effective linkages have to established between them
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Ajanta Ellora Cave Complex
2 kilometres from the caves, an
elegant tourist centre, with modern
amenities and proper parking
facilities is being constructed. A
shopping centre and an interpretation-
cum-information centre is also
coming up.
The positive steps taken towards tourism development are
The Union Budget for tourism has doubled its investment from Rs.
100 crores to Rs. 200 crores.
The Government has also approved a raise in promotional expenditure To serve multi purpose tourism, every state is cuddled together to
form a chain of destination theme.
Infrastructure up gradation
Formation of Trade Promotion Council
Interactivity marketing:
Finally, the individual states have to keep the promises made by the
Department of Tourism. This is the place where all aspects of quality or
the lack of it is perceived by the tourist.
The entire tour could be termed as futile even if little discomfort is
experienced by the tourist during transportation, accommodation or sight
seeing. The providers (state authorities for tourism) have to take every
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care to avoid such occurrence. They are assuring this by improvising on the
following facilities:
Efficient transport system for tourist when they are for a tour within
the state
High quality hotels with first-rate service provided by them. Professional guides placed at educational sites historical places,
archeological sites, art galleries, etc
AIRLINE INDUSTRY
Airports are the primary infrastructure facility that a country has to offer to
the international tourists. It would be surprising to note that renowned
tourists destinations like Jaipur and Goa do not have an international airport.
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Foreign guests, who constitute more than 60% of the tourists destined for
these cities, currently have to travel via Mumbai, unless they are ready to
charter a flight. This makes things cumbersome and time consuming, thus
discouraging many time conscious tourists from visiting these places.
Similar is the case of cities like Agra, Udaipur and Varanasi where foreign
tourists account for approximately 50% of the total tourists arrival.
SWOT ANALYSIS
Core product The basic benefitTransportation ,serving
food drinks ,staff
STRENGTH
Airline is the most preferred
mode of transportation by the
foreign tourists as the
convenience provided by theairlines is higher.
The savings in time that this
mode of transport offers is
immense.
WEAKNESSES
Inefficiency of the domestic
airlines- there are number of
instances of flight being cancelled
or delayed. Lack of basic facilities at the
airport.
Government does not allow the
capacity of existing airports to
increase private and foreign
operators are not given clearances
to operate in the country.
OPPORTUNITIES
As the tourism industry expands
the airline industry is also in for a
boom.
Development and up gradation of
the present airports
India's geographic location makes
it an ideal location to serve as a
link between the East and the
West.
THREATS
Domestic airlines (Air India and
Indian Airlines) face major
competition from other
transnational airlines.
Formal The expected Cleanliness, timely
flights, polite and
courteous behavior, safety
Augmented In addition to the
expected benefit
Comfortable seats,
smiling employees, on par
with international
standards
Future Beyond the usual,
serendipity (pleasant
surprise)
Welcome flowers,
managers word of thanks,
entertainment shows to
delight and surprise the
travelers on the flight
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AIRLINE PRODUCTS
Services: A Game of Promises
31
Mohit Sen, 28, a textile trader, has been a frequent flier on Jet Airways,
ever since he took over the reins of the family business five years ago. He
calls it a smarter alternative to the domestic carrier. More so in the lastcouple of years. Without elaborating, he says that flying Jet today is much
better experience compared to a couple of years ago. Though he cant
pinpoint any particular reason, hes a satisfied customer. There are
obviously many more like Sen.
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Service triangle analysis:
Jet Airways :From small beginnings in 1993 ,today the airline carries around 17,000
passengers daily on a fleet of 36 aircraft nine Boeing 737s and seven ATR
52-500s to 44 destinations around India. This growth has happened because
of service quality, which began as a part of Jets mission statement, and is
now being reinforced at every stage. The airline, has received several awards
for its service performance, and was recently awarded Qimpro gold standard
for quality.
Quality, for Jet Airways, means quality for both internal andexternal customers. What appears okay on the surface may not be so
when one looks closer. And for the past three years, the airline has
been on a mission to redefine the quality standards it had set for itself.
The current quality standards, their measurement and procedures are a
by product of Jets mission statement. It is the quality of its service
that distinguishes it from other airlines.
Its sole objective is customer satisfaction and be one step ahead to
provide the best. It wants to be perceived as a world class airline.Though it would have been enough for the airline to merely try and be
better than its main rival Indian airlines, it consciously benchmarks
itself with the best in the world KLM, Emirates and SingaporeAirlines, among others.
Managing moments of truth at Jet Airways:
At the core of the Jet quality focus are standards backed by quality
processes: there are norms laid out for all areas of customer experience,
from reservation to check in, departure, in flight services, arrival and post
flight. Whenever there is negative customer feedback, or there are in- house
service detractors, the feedback is mapped against set process to check
where the non-compliance happened. This is then remedied by
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communication and training where needed. If the processes are complied
with and there is still customer dissatisfaction, or where standards are loose
cross functioning teams are set up to tighten them and redraw the
processes.
Underpinning the whole system is the foolproof way in which Jet
monitors quality. It happens at three levels:
Formal customer feedback through Service Monitor Questionnaire
Internal feedback and critical comments from detractors
Direct quality audits at periodic intervals. A jet airways
audit at periodic interval .It has a system in place for auditing
service on a continuous basis.
Plans are a foot to increase the frequency of audits to iron out quality
discrepancies between various airports. The audits tend to be detailed, for
example, when check in counters are audited, the audit checks at least 26
parameters for compliance with and signage, and going to staff grooming,
greeting passengers by name, and the total time taken to process passengers
waiting in a queue. In a service industry, quality is subjective and that has to
be improved upon constantly. A number of different departments have to
mesh together and service delivery has to live up to perceived customer
expectation. And an airline only flies passengers, while the rest of the
countless functions are outsourced. At Jet the service quality wing steps in tofigure out problem areas before they become major customer irritants. They
take the role of a critical customer .Its a case of challenging the organization
and the environment. Quality cannot be checked in a service industry, the
departments have to know the standards.
33
For example, at Mumbai airport, service quality is physically verified
from 4.30 am to 10 pm by two people working shifts. Their job is to move
X-rays to passenger queues and other areas of customer interaction tocheck for problem areas and take correctives. The overall quality is audited
at the six metro airports every quarter, and twice a year at airports with
four flights a day. For the remaining airports, audits are done on an ad hoc
basis.
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Gap analysis:Flawless quality all the time is also a near impossibility in the service
industry. There is always a gap between what a customer expects and what
can be delivered .The trick, though, is to keep the gap as narrow as possible,
so that the gap between customer perception and the companys perceptionabout what needs to be delivered is constantly narrowed.
Three years ago, the quality department adopted a gap analysis model to
analyze quality of service issues at different levels. With two vice presidents
overseeing the exercise, about five departments came under the
quality/service purview. These included airport service, in-flight service,
catering, marketing and sales.
The gap analysis is done from the points of view of both the customer
(the user) and the airline (the provider).
It takes into account both the internal customer (people within the
organization) and the external customer (the traveler).
With role playing exercises Jet identified the expectations gap that
exists between customer and provider, and those that could crop up in
future. This helped the quality department chart out the service quality
specifications to aid service delivery.
The largest gap not expectedly lies between customer
expectations and management perceptions about these
expectations(see gap 1 in chart).The key to narrowing this gap lies in
reducing four others: the gap between management perceptions of
customer expectations and service quality specifications (gap 2),the
difference between these specifications and actual service delivery
(gap 3), the effective communication of this service delivery tocustomers (gap 4), and the difference between what customers expect
and what they perceive they are getting (gap 5).
Action taken: To make the job simpler, Jet decided to tackle the entire service cycle
both on the ground and in flight. The ground rules meant involving
people at every stage, right from the time a traveler enters the airport to
fly Jet till he disembarks. It includes reservations and tele check in, city
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side ticketing, baggage screening, queue management and right down to
arrival lounge. The logic was simple: if you focused on the small
things, the big things came right.
While the Jet Airways business model talks about the requisites for safe
flying a modern generation aircraft, young fleet (average age: 30 yrs),wider coverage of India; it also harps on up gradation and innovation of
products and services and understanding customer needs.
Just how small are the issues could get was evident from how Jet decided
that fingerprints should not be seen on the cabin overhead storage flap.
There werent really any complaints about this, but Jets quality cell,
consisting of 11 people, decided it could do without shabby imprints. So
today, when the 10 cleaners get on board after every flight turnaround,
they have one more job to do. Jet claims to be the only Indian carrier that
deepcleans the cabins after every flight.
These small things count when we see it in the context of heightening
competition in the airline industry. Little wonder then that Jet is trying to
leverage its brand equity hinged on quality and on time performance.
In recent months, it has focused on two things-the visible aspect of in-
flight service and the quality of its product, its purchasing habits and
quality of consumable service served on board. All this to ensure a defect
free product.
Priced at the premium end, Jet is currently undercut on fares by Indian
Airlines. This means Jet has to offer value in other areas to make up for
the price disadvantaged.
Food above all:
Food was one area the Airline decided it could not afford to lose out on. To
provide a first class meal the business traveler on Jet had been getting plated
service for quite some time on. This meant that instead of the earlier prepackaged meal, which had the main course and the dessert on the tray, henow gets his two (break fast) to three courses (lunch and dinner) dressed in
perfection in Noritake crockery. Until six months ago, Jet used crockery
sourced from a local manufacturer. The Indian customer has traveled a lot
and is familiar with foreign airlines. This meant providing international
standards on a domestic airline. But customer satisfaction also means35
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attending to customers on the ground. Thus, Jet has adopted a system of
having a floor walker, now re-designated queue manager, to keep an eye
on how customers are served at the airport.
The floor walker monitors the entire gamut of services ranging from
attitude of staff, appearance of counters and assistance with baggage
and queue management. Employees say that it is an organizational
self assessment. It is done to see how the staff perceives itself. This
was one lesson learnt from discreet observation at the counters.
For example: A passenger was late in catching his flight. When he reached
the security gate huffing and puffing, a polite Jet Airways official informed
him that he had missed flight. Now, airline officials are taught to smile and
be polite to passenger. In this case, however, a smile was inappropriate sincea passenger missing his flight would be irritated by excessive smiling when
the need was for empathetic listening. This feedback from Jet staffer was
useful in helping counter staff realize that you need different strokes for
different people at different times.
Soft issues like the example above sometimes make a difference to the
customer. But just in case anything has been missed, Jet makes it
appoint to seek feedbacks regularly from the passengers. From the
beginning, Jet has been offering Service Monitor Questionnaires(SMQ) for passengers to fill out during the flight. Passengers were
asked to rate Jet on topics ranging from accessibility at the
airport to cabin crew behavior, food and the overall experience of
flying Jet. In the beginning as there was no pressure to get consumer
feedback the staff didnt take it seriously. Today these questionnaires
are mandatory on every flight. Not only is the staff encouraged to
proactively distribute the forms, it is also announced on the overhead
speakers .In March; Jet received 38,000 responses; a year ago it was
less than half that number. Jet uses these SMQs to raise the qualitybar. If they get 60% excellent rating in one area, the crew is asked to
get 70% the next time. It is through the assiduous monitoring of
customer feedback and complaints that Jet keeps setting itself a
moving target for improvements.
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THE TOUR-OPERATOR PRODUCT
Core product The basic benefit
Packaged tour which includes travel guidance,
planning, pricing, accommodation, local travel
and sight seeing
FormalThe expected
Insurance, airport pick-ups, foreign exchange
assistance (Raj Travels), airline ticketing, safe
travel guide, branding the product for easy
identity. Eg SOTC, Cox & Kings, etc
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AugmentedIn addition to the
expected benefit
Payment option travel now, pay later (on
the basis of bank affiliations), tourism on credit
card (Raj Travels); premium offers special
package deals; guarantees in case of
cancellation of flights, tour failures, bad
weather, etc; loyalty schemes; weather reports
of different countries, with month wise
maximum, minimum temperature, humidity and
rain; recommended tours for every age group
and interests; take away gifts (souvenirs) - atthe end of every tour
Future
Beyond the
usual,
serendipity
(pleasant
surprise)
Make your own package (customized
packages); free photo sessions; video shooting
of the entire trip by the tour operators;
incentives with every tour package, one more,
at half the price.
The Service Triangle analysis:
Example: Raj Travels
External marketing:This tour operator promises the customers through advertisements in
newspapers, handbills and pamphlets, internet sites to offer the finest
quality product with a premium price.
Raj Travels claims to be the First and Pioneer to operate tours to
Australia and Mauritius
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It also takes active and prominent interest in formation of TAFI (Travel
Agents Federation of India) and now their CMD is also the President of
TAFI.
Raj Travels is a holder ofTop Agents Awards from many airlines such as
British Airways, Lufthansa, Singapore Airlines and Amadeus.
It also conducts US and UK VISA seminar at Mumbai, Ahmedabad and
Pune for students.
Customers:
Customers include individuals, couples, families, groups (small and big)
Internal marketing:Raj Travels takes efforts to assure that the providers Tour guides, Tour
Directors and Tour Managers are professionals and well trained so that they
help the company to keep the promises.It imparts training to its providers so that the best is passed on to the
customers. Training is given in the fields of:
Inter-personal communication,
Motivation,
Handling crisis, etc.
Also, all the required documents and important items are made available to
the tour directors to ensure a comfy tour.
They have based their cooks at the hotels (in Europe and South Africa) tocook the delicious Indian meals and serve right in the hotels restaurant
under great ambience and atmosphere.
Thus the tour operator enables promises hoping that these would be
enough for successful transactions.
Interactive marketing:The providers (tour guides) of Raj travels are the most important people as
they are in constant and direct contact with the tourist. The tourist will havethe perception of high quality if the experience with tour guide, manager and
director is of the highest quality.
These tour directors ensure that at all places the customer experiences
delight by coordinating all the activities and events and giving least distress
to him.
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HOTEL INDUSTRYHotels form one of the most important support service that affect the arrival
of tourist to a country. The major players in the industry are Indian Hotels
Company Ltd (IHCL) operating under the Taj brand, the Oberoi,
Oriental Hotels, Hotel Leela Venture and the Ashoka chain of hotels,
owned and operated by the Indian Tourism Development Corporation
(ITDC).
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SWOT ANALYSIS
STRENGTH
A very wide variety of hotels is
present in the country that can fulfill
the demand of the tourists. There are international players in the
market such as Taj and Oberoi. Thus,
the needs of the international tourists
travelers are seen to while they are on
a visit to India.
Manpower costs in the Indian hotel
industry is one of the lowest in the
world. This provides better margins
for Indian hotel industry. India offers a readymade tourist
destination with the resources it has.
Thus the magnet to pull customers
already exists.
WEAKNESSES
.The cost of land in India is high at
50% of total project cost as against
15% abroad. This acts as a majordeterrent to the Indian hotel industry.
The hotel industry in India is heavily
staffed. Indian hotel companies have a
staff to room ratio of 3:1, this ratio is
1:1 for international hotel companies.
In India the expenditure tax, luxury tax
and sales tax inflate the hotel bill by
over 30%. Effective tax in the South
East Asian countries works out to only4-5%.
Only 58,000 hotel rooms are available
in India today, which is less than the
Bangkok hotel capacity.
OPPORTUNITIES
Demand between the national and the
inbound tourists can be easily
managed due to difference in theperiod of holidays. For international
tourists the peak season for arrival is
between September to March when
the climatic conditions are suitable
where as the national tourist waits for
school holidays, generally the summer
months.
In the long-term the hotel industry in
India has latent potential for growth.This is because India is an ideal
destination for tourists as it is the only
country with the most diverse
topography. For India, the inbound
tourists are a mere 0.4% of the
global figures.
THREATS
Guesthouses replace the hotels. This is
a growing trend in the west and is now
catching up in India also, thus divertingthe hotel traffic.
Political turbulence in the area reduces
tourist traffic and thus the business of
the hotels. In India examples of the
same are Insurgency in Jammu
Kashmir and the Kargil war.
The economic conditions of a country
have a direct impact on the earnings in
hotel industry. It can seen that thepresent economic slowdown in India
has led to a 51.6% fall in the industry
average net profits for the second
quarter of the current financial year,
2000..
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The Hotel Products
The Customers of Hotel industry
Core The basic benefitServing rooms, food,
kitchen and staff
FormalThe expected
Cleanliness, timely
service, polite and
courteous behavior, menu
availability, music.
AugmentedIn addition to the
expected benefit
Sparkling floors,
ambience, smiling
employees, music of
choice, Welcome flowers,
welcome drink,,
FutureBeyond the usual,
serendipity (pleasant
surprise)
Cookies in the room,
managers word ofthanks, giving surprise
parties to the guest and
delight the guest. The
emphasis is on
relationship marketing.
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The customers are the users of the services in the hotel industry. These users
belong to different categories visiting hotels with diverse aims and
objectives. Thus, it becomes very important for the hotel marketer to be
aware of these different categories and also to know which categories of
users form their major potential customer group.
The users of the hotels can be categorized as follows:
The users of the hotel come from different regions and segments and with
different culture and attitude. The hotel marketer has to keep in view the
variations in these categories and make best of the strategies to satisfy
them.
SERVICE TRIANGLE ANALYSIS:
Le Royal Meridian, Mumbai
44
Users of Hotels
Tourists
Students
Officials
Trade
Representatives
Political
Representatives
Film Stars
Medical
representatives
Sportsmen
Domestic
Political
Representatives
Trade
Representatives
Sportsmen
Tourists
Cultural
Representatives
Officials
Film Stars
Medical
representatives
Foreign
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External marketing:the hotel promises through its advertisements in business magazines and
tourism sites to offer an unparalleled luxurious experience. It also claimsto have standards of finest European hotels with unadulterated luxury.
Customers: the profile of guests at Le Royal Meridian is Corporate,
Individual travelers, Airline crew and layovers.
Internal marketing:the hotel has efficient human resource practices to assure that theemployees (providers) are satisfied and help the hotel to keep the promises.
Empowerment: the management empowers each and every employee toimpart him with the authority to make decisions. This gives the employees a
sense of belonging and boosts his morale.
Training and development: in the induction and orientation the employee is
introduced to each department and their functions. Integration of all the
departments with the employees department is explained.
Standard operations procedure: each department and employee is instructed
with and trained to perform a standard operations procedure to maintain the
quality of service.
Job rotation: each employee gets an experience to work in all the
departments by regular job rotation. This reduces the fatigue caused due to
monotonous working and brings a new energy and enthusiasm in the
employee.
Rewards: the best employee of the month is rewarded who is selected on
the basis of feedback from guests, head of the department, etc.
Interactive marketing: the hotel has no signages in the entire property andinstead there are employees stationed at an equitable distance to escort the
guest. This provides an opportunity to know more about a guests likes and
preferences. Besides, the employees are assigned the job of being acquainted
with the guests profile before his arrival and wear name badges to encourage
personalized interaction .This often delights the guest and makes him feel
special.
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Interactive marketing:the hotel has no signages in the entire property and instead there are
employees stationed at an equitable distance to escort the guest. Thisprovides an opportunity to know more about a guests likes and preferences.
Besides, the employees are assigned the job of being acquainted with the
guests profile before his arrival and wear name badges to encourage
personalized interaction .This often delights the guest and makes him feel
special
Conclusion:
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While discussing the overall marketing strategies and challenges to
the hospitality and tourism in India, some measures can be
suggested which if applied, could stimulate economic growth not
only in this industry but also for India's economy as a whole.
The most significant factors affecting hospitality and tourism inIndia are:
Infrastructure management;
Government policies;
Workforce issues and education in hospitality and tourism
Strategies for growth;
Crisis management;
The management of destinations in India
and the deployment of online techniques for marketing.
Bibliography
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Newspapers:
Times of India
Hindustan times
Magazines:
India today
Discover india
Refrence Books:
1.Philip kotler marketing management
2.Batra, Rajeev, Myers, John G, Aaker, David A, Advertising
Management
Web:www.wikipedia.org
www.google.com
www.indiatourism.com
www.india-travel.com
www.lemeridien-mumbai.com
www.jetairways.com
www.rajtravelsindia.net
http://var/www/apps/conversion/tmp/scratch_4/www.wikipedia.orghttp://www.google.com/http://var/www/apps/conversion/tmp/scratch_4/www.indiatourism.comhttp://var/www/apps/conversion/tmp/scratch_4/www.india-travel.comhttp://var/www/apps/conversion/tmp/scratch_4/www.lemeridien-mumbai.com%20http://www.jetairways.com/http://var/www/apps/conversion/tmp/scratch_4/www.rajtravelsindia.nethttp://var/www/apps/conversion/tmp/scratch_4/www.wikipedia.orghttp://www.google.com/http://var/www/apps/conversion/tmp/scratch_4/www.indiatourism.comhttp://var/www/apps/conversion/tmp/scratch_4/www.india-travel.comhttp://var/www/apps/conversion/tmp/scratch_4/www.lemeridien-mumbai.com%20http://www.jetairways.com/http://var/www/apps/conversion/tmp/scratch_4/www.rajtravelsindia.net