Professional Documents
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Ecommerce
Ecommerce
Ecommerce
CERTIFICATE
work for the award of the Master of Philosophy in Business Management at the D.Y.
Management and that the thesis has not formed the basis of the award previously of
any degree, diploma, associate ship, fellowship or any other similar title of any
university or institution.
Also it is certified that the thesis represents an independent work on the part of the
candidate.
Date:
Dr. R. Gopal
(Director and Head of the Department, Signature of the Guide
School of Management)
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ACKNOWLEDGMENT
accepted me for the M.Phil. program and provided me with an excellent opportunity
giving me his valuable guidance for the project. Without his help it would have been
I would also like to thank the various types of travel related organizations who have
I would be failing in my duty if I did not acknowledge with a deep sense of gratitude
to my family and friends for their endless love, prayers and encouragement.
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PREFACE
Online transactions in the travel and tourism industry are continuously increasing
despite tough economic problems in this arena and fewer travelers overall. This
other industries are displaying a stronger hold to traditional processes, the tourism
industry structure is changing. The Web is used not only for information gathering,
the natural leading industries on the Internet). It is anticipated that most, if not all,
sectors in the travel and tourism industry throughout the world will have sites on the
Internet; showing the suitable marriage of two of the world‟s fastest growing
industries: information technology and tourism. E- travel is the leading and fastest
models.
E-commerce in travel and tourism is growing day by day which provide opportunity
commerce is emerged in this industry and companies are now heading toward e-
business through website, internet and different online software. Moving from
traditional business way to e-commerce way is quite challenging and various factors
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commerce buyers. The purpose of this literature review is to give short introduction
on travel and tourism industry along with the impact on this industry after adaption of
ecommerce. What will be benefits after adapting e-commerce and what are the
Tourism and the Internet are ideal partners. For consumers, when they are
planning a trip to a new destination, they face the problem of making a costly
purchase without being able to see the product. The Internet provides them with
and depth than has been available previously, about destinations throughout the
production and distribution of print and on other traditional activities (e.g. call
centres and information centres); and it provide a tool for communication and
well as end-consumers.
Tourism has a key difference from most other sectors of e-commerce – its
consumer goes and collects the product at the point of production – i.e. the
destination. Thus the tourism sector avoids the need to deliver products around
the world - a task that faces real logistical problems that have been a major
These factors, taken together, have resulted in the travel and tourism sector
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Commerce in the tourism industry has emerged as a „frontier area‟ for
In the mobile travel era, travellers expect real time answers wherever they are
and at any time, before, during and after the trip. These include booking
The emergence of new and high tech mobile phones has again stirred a revolution in mobile
technology. This is especially helpful as these phones allow a user to access internet and book
services online. Hence, one can also book tour packages and other travel related services through
the mobile.Travel industry related organizations place high importance on having flights and hotel
both as a independent product on their website. The advantage of having flights and hotels makes
the travel website one stop destination for key travel needs.
In this dissertation technological as well as commercial both aspects have been dealt with .
This attempts to study how E commerce in travel related organizations impacts overall company’s
growth. I have tried my best to do justice with this topic and I also hope that this project proves to
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TABLE OF CONTENTS
Certificate iii
Acknowledgement iv
List Of Abbreviation‟s ix
Executive Summary x
1 Introduction 1
6 Adventure Tourism 61
Internet Usage, Online Travel Industry In India, Key Success
7 74
Factors When Applying E-Commerce To Travel Industry
7.1 Internet Usage In India 75
7.2 Scenario Of Online Travel Industry In India 78
11 Conclusion 202
Reference Section
PE – Private Equity
VC – Venture Capitalist
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Chapter 1
Introduction
exchequer. This industry is growing very rapidly and millions of people are
directly and indirectly associated with this Industry. This industry represents
accounts for 9.2 percent of global GDP, 10.9 percent of world exports, and 9.4
networks including the internet.‖ There are various advantages of using internet
generates income for many people around the globe. However, it has some
have seen several online fraud case too. With rise of internet usage on people's
commerce, these industries are trying to reach global population to enhance their
business through different e-commerce tools and ad there will be more and more
commerce in India has evolved over the past decade in terms of magnitude.
The research focuses on seeking insights from the organizations in the travel
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industry in four key areas major steps make up the structuring phase for new
(1) Critical Success Factors that make e-commerce business profitable in the
(2) Methods & practices to structure the e-commerce business in the travel
(3) Factors which will have a impact on overall business performance as a result
organizations and
(4) Factors that are Detrimental to the growth of the e-commerce business in the
Increasingly we have observed that travel and tourism are not influenced by
more than ever reading and sharing travel-related content online which has been
created and posted by peers rather than by travel service providers. Online travel
have made huge investments in the online travel agency (OTA) segment in the
past two years. With the Indian holiday season on the horizon, Hitwise India
internet is used as
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information source for planning pleasure trips. Non-air ticket booking segment
is growing fast with the entry of Indian Railways in the online space and many
OTA‘s providing online bus and train bookings. Demand for tour packages have
The study indicates that the typical Indian traveler does not like to makes
spontaneous decisions and plans the trip in advance. An evolved traveler starts
planning the trip 3 months in advance by visiting travel related blogs, forums,
travel related video‘s/photographs, travel review sites. Online travel reviews are
traveler‘s experience which helps travelers learn about a travel destination and
narrow down their choices. The study identifies that an online traveler evaluates
his holiday destination options and then initiates the trip booking process by
visiting the OTA‘s and accommodation sites to evaluate, compare and book.
Thus indicating that most travel purchases take place well after a consumer‘s
initial search. The study indicates that the Indian internet consumer uses emails
after visiting airline websites. The study also indicates Social Media is now a
marketing tool used by marketers to engage with the target audience through
networking sites helps users plan their trips by getting tips from users, by
where the target channel for marketing is social media. Selling happens more
and more in the virtual world. Travel companies are increasingly targeting
consumers directly on Twitter and Facebook. Hyatt was the first major hotel
group to offer a global 24/7 ‘Twitter Concierge.‘ Almost every major travel
brand offers customer service via social media, but Hyatt was the first to
and make special requests. Behavior of Indian traveler is quite different when he
makes purchase of an air ticket and a hotel room night. Unlike purchase of air
Top 5 Trends
• Meta search engine is the latest innovation in online travel. They help
people find the best travel choices easily by searching the data from hundreds
• Social media will exert greater influence on travel planning and purchasing
Players Overview
• Makemytrip, Yatra, Cleartrip and Travelocity are the leading players in the
OTA segment.
• IXIGO, Ezeego1 and Zoomtra are the leading meta search engines in Online
travel
• Club Mahindra Resorts, Taj Hotels and Resorts and Palaces and
Intercontinental Resorts are the leading players in the Accommodation Segment
From the emerging trends, the clear message that emerges is that not only would
necessary to keep a finger on the pulse of the ever dynamic travel industry.
Internet usage in India has gone up with more and more Internet Users using the
Internet on a regular basis. In Sep 2019, India had 451 Million Internet Users. In
India, there were 390.9 Million users accessing the Internet on Mobile devices in
2018.
India has second highest number of internet users after china , According to the
travel and tourism industry. Many of them have pointed positive impact of e-
commerce in travel and tourism and some have pointed challenges for adopting
B2B (business to business) and B2C (business to consumer). This industry has
changed the ways of do business for traditional ways to modern way, i.e. e-
commerce via web and other online transaction software where as other
industries are still adopting the traditional way. Web is changing the behaviour
of consumers are well as they are becoming less loyal, take less time for
to satisfy consumer needs and providing information to them through web and
different value generating strategies like value extraction, value capture, value
orientated business and the product is termed as "confidence good" and prior
commerce feeds backs from consumers can be obtained in short span of time
in travel and tourism industry consumers are becoming more powerful players
as they can choose their destination and sites in few minutes whereas travel
agents, travel websites etc. see diminishing power in sales however they are
consumers. Many tour operator, travel agents, online travel agents are using
technologies needs huge investments, need more high skill human resource etc.
There are various factors, which are considered that travel and tourism will
adapt ecommerce strategy. There are main two factors for conducting successful
e-commerce strategy which are security of the e-commerce system and user-
friendly Web interface. Security means not only securing own system but also
providing security assurance to users who are using the sites or online software.
User friendly web interface give consumer trust and it's easy to convenience for
customers. Beside these factors other factors are also essential to succeed which
management support plays vital role as they are the decision makers and their
support and decision will direct the company to use the strategy. Further, he also
acceptance; customer acceptance means the way customer accepts the web or
online software of the company and it should have very rich contents and very
easy to use . Buyers are those people who actually intend to buy the services
information only.
There are various benefits for small and medium sized tourism enterprise to use
follows; -
Improving image and public recognition of the small & medium sized
tourism enterprises
way to technological way and there are various barriers for travel and tourism
These barriers also include 'shortage of skilled human resources,' and 'resistance
depending upon the market size. Moving from traditional way to technological
Information Technological (IT) have to done along with this staffs have to be
trained accordingly. It is not always possible for small and medium size
companies to invest huge amount and get skill human resource people. Some
countries have different rules and regulation for e-commerce business rather
than traditional ways. Government rules and regulation also plays a vital role for
very easy to use, updated time to time. If these factors are ignored than these
changing and due to e-commerce they swap agency in few minutes if they are
One of the studies investigated the critical success factors for e-commerce. The
commerce? (2) What are key requirements that all e-commerce companies must
have in order to enter the industry? (3) What is the company‘s ecommerce
ranging from (1) tour operators (2) travel agents (3) tourist guide services (4)
airlines (5) transportation (6) hotels and guesthouses (10) tourism education and
training institutions; (11) local touristoffices.ICTs are seen asmajor tools with
How does one measure e-commerce business success (or 'derive ROI‘)
Research Methodology
Chapter 3
From the above little introduction, we can simply say that e-commerce is
this field had already adopted e-commerce and some are on the way to adopt it
to enhance their services and better facilitate their customers however these
industry.
My prime focus on this research paper is to find out the impact and challenge of
academic journals. Through those journals I will be able to answer, how will be
travel and tourism industry benefit if they adopt e-commerce, what are the
commerce and what are the benefits and limitations of e-commerce in travel and
profitable & identify factors that are detrimental to the growth of the e-
redefined the travel industry. Online travel commerce has evolved significantly
from the initial sales of less complex products like airline tickets,
accommodation and car rentals to include more complex products like vacation
packages and cruises. Several studies have revealed that online travel rates
among the top three products and services purchased online. The goal of this
commerce business in the travel related organizations and the factors that define
towards the changing patterns in travelers trip planning behavior. The study
highlights the advertising channels used for brand awareness and customer
acquisition. The dissertation dwells deep into how travel and tourism have used
of the most critical IT developments and to demonstrate how they influence the
industry, effective use of ITs is pivotal. Hence, "a whole system of ITs is being
rapidly diffused throughout the tourism industry and no player will escape its
displayed or inspected at the point of sale before purchasing. They are bought
before the time of their use and away from the place of consumption. Hence
often the key to satisfaction of tourist demand. Therefore, ITs provide the
The scope of the study was limited to how e-commerce as a business channel is
established in the travel and tourism industry. Other industries are not included
would limit the ability to draw generalization in this study. Main concern comes
from the fact that though travel industry has been the first adopters of e-
commerce however they are slow in adopting the new methods and practices
This research aims to explore the impact of structuring the e-commerce business
on the overall business performance in the travel industry. Factors which will
business in the travel industry related organizations. The research exercise was
focused on educating the travel industry with regards to what all areas are
division which will lead to profitable results and impact the over all business
process.
Chapter 4
The travel and tourism industry is one of the world‘s largest industries with a
Tourism truly has become a global economic and social force. Travel is costly.
Historically, only wealthy individuals could afford to travel abroad, and they
services. Not surprisingly, Europe and North America have been the largest
recent decades, tourist arrivals in emerging countries have grown much faster
than in developed ones. The Asia-Pacific region has seen—and will continue to
From a geographic viewpoint, there has been a remarkable rise in Asian tourists,
particularly from China and East Asian countries. Further, the average age of the
young tourists who would typically travel to take a break from increasingly
The growing influence of the tourism sector as an economic powerhouse and its potential as a tool for
development are irrefutable. Not only does the tourism sector spearhead growth, it also improves the
quality of people’s lives with its capacity to create large scale employment of diverse kind. It supports
environmental protection, champions diverse cultural heritage and strengthens peace in the world.
Facilitation as well as strengthening of tourism in India is the main objective of Ministry of Tourism.
Augmenting tourism infrastructure, easing of visa regime, assurance of quality standards in services of
tourism service providers, projection of the country as a 365 days tourist destination, promotion of
sustainable tourism etc. are some of the policy areas that need to be constantly worked upon to
increase and facilitate tourism in India
Given the Global Tourism perspective, buoyancy in the Indian Economy and
growth in the related ancillary industries like Infrastructure and Aviation, the
growth of 39.6% over the previous year. 3 FTAs during 2018 were 10.56
million (Provisional) with a growth of 5.2% over the previous year. 1.4
Foreign Exchange Earnings (FEEs) during the period 2018 were Rs.
previous year. FEEs during the period 2018 were US$ 28.592 billion
The last few years have been highly successful for India Tourism. The
‗Incredible India‘ campaign has enabled the destination to penetrate global
market and reach the ultimate consumer through electronic, print and
internet media. On account of the spurt that India has witnessed in tourist
arrivals in the recent times and given the unique and immense potential the
international acclaims: -
Conde Nast Traveller, the worlds‘ leading travel and tourism journal
the world
The Incredible India campaign has been the winner of PATA Gold
Award for best Print Ad Campaign and PATA Gold Award for Best
bureau.
Though there are many definitions for tourism, it could be simply defined as a
friends and relatives, health, education etc. He/she chooses a destination for one
needs aided by modern technology. These components have also came a long
way to offer a range of products which suit the needs of multitude tourists
around the world, and are still working hard to cater to an ever changing test of
them. Tourism is ranking the top ahead of all other categories of international
trade. This growth of tourism activity clearly marks tourism as one of the most
the Tourists
components: namely,
the internet.
visitors
In the case of attractions both manmade and natural attraction owners need
their production. Information about the kind of attraction, where they are
located and how to get there is of vital importance. The attraction owners
dissemination tools.
Accommodation Sector
visitor can access information about the kind of hotels at the destination,
their ranges of product, the price and other relevant information without
leaving his/her office. What one has to do is ring up a travel agency and get
This will help any visitor greatly as to where to stay during any kind of away
from home. Here the information can be obtained aided by still or moving
services of ones choice. At a destination also visitors are at ease during their
and television entertainment programs, which now days are part and parcel
Advertising Sector
Travel and tourism fit especially well with interactive media because they
and current web users are heavy users of travel and tourism products and
interactive marketing is the use of information from the customer rather than
Attracting users
preferences
Transport Sector
Transport provides the essential link between tourism origin and destination
health tourism. Before setting out on a journey of any kind, every traveler
To this effect airplanes coaches and even taxis in many countries with
systems for various uses. For e.g. the driver or the tour guide updates the
tour company headquarters about the progress of the tour throughout the
touring period. This communication ensures the safety of tourists. Fast and
traveling public. In recent years, the confidence built due to use of modern
travelers worldwide.
During 2011 FTAs in India were 6.31 million with a growth of 9.2% over
2010. FTAs during 2012 were 6.65 (provisional) million with a growth of
FTAs in India and FEEs from tourism fro the years 2000 to 2012 is given
below:
Figure no 4
Domestic Tourism
The domestic tourist visits during the year 2011 are estimated to be 851
facility of Long Term Tourist Visas‟ of five years duration with multiple
entry, carrying a stipulation of 90 days for each visit, has been introduced on
2011, thereby showing a growth of 26%. Efforts are on to extend the VoA
promote tourism and create social awareness through the print and electronic
highlighting the tourism potential of North-East and J&K were also carried
(IFFI) held in Goa, and during the International India Film Academy (IIFA)
countries. The delegates were taken for a visit to Sarnath and Bodh Gaya.
For the first time, an International Tourism Mart was held at Guwahati in
tour operators from different parts of India participated in the Mart and
engaged in one-to-one meetings with sellers from the North East Region and
tourists with specific interests and to ensure repeat visits for the products in
and Promotion:
Cruise
Adventure
Medical
Wellness
Golf
Polo
Eco- Tourism
Film Tourism
Cruise Tourism
components of the leisure industry worldwide. India with its vast and
Central financial assistance for Cruise Tourism project of Rs. 1450.00 lakh
amount of Rs. 491.53 lakh had been sanctioned and Rs. 245.77 lakh released
for undertaking activities, which test the endurance of both a person and his
Figure no. 5
Medical Tourism
dental surgery, and cosmetic surgeries. Besides India, there are several Asian
destinations like Singapore, Malaysia and Thailand that are offering Medical
care facilities and promoting medical tourism. India excels among them for
Tourism holds immense potential for India. The Indian systems of medicine,
among the most ancient systems of medical treatment, in the world. India
their brochures.
Health Tourism holds immense potential for India. The Indian systems of
etc., are among the most ancient systems of medical treatment, in the world.
their brochures.
Golf Tourism
Sports Tourism in India is gaining interest. One of the latest trends in golf
tourism is the fact that there has been a recent surge in the interest levels
amongst youth the world over. India has several golf courses of international
standards. Further, golf events held in India also attract domestic and
international tourists.
January 2011. The objective of this workshop was to evolve a road map for
India.
Polo Tourism
India has rich historical ties with many of the sporting traditions including
Polo. The game of Polo originated in India and India is one of the few
countries in the world where this game is still preserved and practiced. The
Kolkata Polo Club is the oldest Polo club in the world and is 150 years old.
2012, held at Imphal from 22-29 November, 2012, coinciding with the
Sangai festival.
travel industry had, under the patronage of the Ministry of Tourism, set up
Conventions.
objectives.
Eco-Tourism
going back to natural products in every aspect of life. It is also the key to
India is still at a very nascent stage, but there are conscious efforts to save
the fragile Himalayan Eco System and culture and heritage of the indigenous
Film Tourism
The Ministry of Tourism has recognized films as powerful tool for the
The Ministry of Tourism has taken following steps to promote Film Tourism
in the country:
Financial Assistance of Rs.2 lakh per film will be given to each of the
To sum up, Indian tourism has vast potential for generating employment and
earning large sums of foreign exchange besides giving a flip to the country‘s
overall economic and social development. Much has been achieved by way
necessary that all wings of the Central and State governments, private sector
inthe tourist industry. India the second largest tourism market in Asia after
China, the country was also ranked in the twenty fastest-growing tourism
eleventh in the list, the direct contribution of travel and tourism to GDP in
and 2024. In 2013, there were 6.85 million international tourist arrivals in
India. This was a large increase from the 2.65 million seen just 13 years
earlier in 2000. The largest source market for visitors to India was the
United States, followed by the United Kingdom . Outbound travel from India
Adventure Tourism
Adventure travelers often seek unique or new travel destinations and activities.
Given their penchant for exploring new destinations and seeking new
stages of tourism development and also in more mature destinations that have
segment, primary research to quantify the size and scope of this market in the
U.S. or internationally (Schneider 2006) has been lacking. For this reason,
George Washington University, along with its partners, the Adventure Travel
Trade Association (ATTA) and Xola Consulting, sought to better understand the
adventure traveler. This study‘s focus area was limited to three major markets:
trends. The information in this report may provide guidance for destination
target market.
Methodology
This study of the adventure travel market was conducted in late 2009.
one person may not be to another. Therefore, for the purpose of this study, a
international trip that includes at least two of the following three aspects:
asked to choose what activities they had participated in. These activities
surveys of consumers.
economic times;
or female. The majority are between 35-47 years old. Industry followers
familiar with research from the Adventure Travel Trade Association may
general; it includes people who organize their own trips and therefore
Geographic.
exploring new places and meeting and engaging with local cultures
travelers (35%) conduct research online, but they also consult friends
and family.
Profile of Respondents
Who are adventure travelers? They are fairly evenly split male to female,
slightly more female, but not as much as other types of travelers who are
35 (again, this may seem low from the perspective of adventure travel tour
operators, however, this number reflects the overall adventure traveler, not
just consumers of tours), slightly younger than the ―other‖ traveler who is on
than 10% are divorced or separated. They are also more highly educated
Figure no. 6
Interestingly, while many hard adventure travelers clearly view international
travelers, only 56.5% have valid passports. From this we can theorize that
table below shows the percentage of adventure travelers who hold valid
passports.
definition is based on past literature that classified specific activities into two
segments: hard adventure and soft adventure. In certain instances, they have
The central question is — how many people are taking adventure trips?
Hard Adventure
Hard adventure includes trekking, climbing (mountain, rock and ice) and
caving. These activities are high risk and require a high level of specialized
but still uncovered a sizable market. The trend over the past three years
indicates that the number of hard adventure trips has held steady, at around
indicated that they intended to take a hard adventure trip for their next
vacation. In North America, the trend was opposite, and the percent of
slightly.
Soft Adventure
Europeans, Latin Americans are taking the most adventure trips at 35% of
all three regions are soft adventure trips. Soft adventurers are an important
market for destinations, gear companies and tour operators. They are more
likely to try different activities and destinations than hard adventurers. They
In all three regions — Latin America, North America and Europe — soft
adventure increased steadily over the traveler‘s past three trips and continued
that for their next vacation they would take a soft adventure trips.
Adventure Activities (Risk/Satisfaction)
based on the perceived or real riskiness involved in that place. However, this
survey finds that the perceived level of risk associated with the activity
Adventure travelers rated the level of risk associated with their activities
higher than other types of tourists, but did not extend this assessment of risk
their activities but less sensitive to destination safety; this is an area for
further research.
people, who in the past chose to engage in other types of travel, are
indicating that on their next trip they will be more adventurous in their
capitalize on these dreamers and create soft options to ease them into the
world of adventure travel. This will mean catering to their trip length and
destination or try new products before most people. But they still take their
cues from sources such as magazines, tour operators or even social media
what this market is truly seeking: meaningful connections with the place and
One example comes from Thai tourism, which has disseminated tourism
operators may consider putting more effort into press FAM trips. Reading
Figure no. 7
As for seasoned adventure travelers, they are passionate about and dedicated
to this mode of travel. They are always searching for new destinations and
friends and family. They often use official websites. Destinations and
operators should invest in understanding keywords and optimizing their sites
for searches in the key engines. Ensuring that a website is findable in all
Segmentation
There are many ways to segment the adventure travel market. Recognizing
increasing specialization in the tourism industry along with the shared values
From there, specific marketing tactics can be developed with the addition of
The younger generations, GenY (people aged between 18 and 30) and
GenX (people aged between 31 and 44). These people have often
traveled throughout their youth, studied abroad during college and are
adept at navigating the Internet to find good deals and new destinations.
This segment can further be broken down into two groups that are of
workforce and has a limited amount of vacation time each year. They
will seek to fill as much as possible into their vacation time, often
hiking Mt. Kilimanjaro. This group is more likely to book through a tour
operator. They are mostly likely reached through social media —
communities and places they go. Many young people take the
years in the workforce. With low budgets and big dreams, they travel
are more likely to go trekking or take long train journeys, such as the
cross-Siberian railway. Budget and value will be the key selling points
The ―baby boomer‖ (people aged between 45 and 64) adventure traveler
experience later in life. Many find themselves with extra time and money
as their children have moved from the house or they enter retirement
with good health and a curiosity to do things they couldn‘t during their
working years. They have large budgets and value adventures combined
with a cultural experience. They also book through tour operators and ma
and
―authenticity‖ are keywords/concepts that resonate with this group.
Conclusion
The findings of this study support the notion that adventure travelers
value of the global adventure market is $89 billion. Adventure tourism does
not appear to be a trend specific to any one geographic area, as the results
and seek to connect with nature. Even in the midst of growth, we found
some adventure travelers do not hold valid passports and are not necessarily
Various trends around adventure tourism are positive: more people intend to
take adventure trips and these people intend to spend more than they have on
their previous vacation. Adventure travelers are specialty travelers and thus
branding should speak to their desire to have natural, cultural and active
is moving towards more adventurous travel. They may return to the same
but this time try more adventurous activities (safaris, visiting cultural sites).
outlets such as resorts, hotels, cruise lines to offer smaller day trips to entice
characteristics for this group will be shorter trips, perception of safety, and
unusual opportunities.
Interestingly, over the course of their past three trips, respondents have
that they intend and desire to become more adventurous, but it remains to be
seen if they will in fact select a more adventurous option when it comes time
capitalize on these travel aspirations. This study illustrates that the adventure
the actual size of this market, this study calls into question the often,
assertion from within the adventure industry is that the typical adventure
traveler today is likely to be over 50, with a secure income and desire to
explore and experience new places. Based on this research and others,
however, we find the average adventure traveler age might be closer to 40,
and although these people engage in adventure activities, they might not be
paying tour operators and guides for their experiences, and hence not
economic situation, the cost of an international flight may make travel cost
prohibitive to some people, thus domestic or regional, closer to home
adventure travel may provide an attractive alternative for many and also
the future.
adventure activities each day of their trip. For many countries, the size of
Overall, this piece of research provides further insight into the size and
shape of the adventure travel industry. The findings support the notion that
impact, with specific features for engaging in risky sports that require
Adventure travel is associated with that tourists could discover new things.
Therefore, they did travel the world to be so large that it knows the existence
Industry
International in June 2013, indicates that the Internet usage in India has gone up
with more and more Internet Users using the Internet on a regular basis. In
June2013, India had 190 Million Internet Users. Of this 130 Million belonged to
Urban India and the rest 60 Million were from Rural India. In October, the
number of internet users reached 205 Million and is estimated to reach 213
Million by December 2013. The number of internet users in urban India is 137
2013. In Rural India, there are 68 Million Internet users in October 2013 and
will reach 72 Million by December 2013. Mobile Internet, too, has garnered a
huge base among the Active Internet Users. In India, there were 91 Million
users accessing the Internet on Mobile devices in June. In Urban India, there
were 70.2 Million Mobile Internet users in June 2013. This number rose to 85
Million in October and is estimated grow by 47% and reach 103 Million by
December 2013. Rural India is not that far behind in this regard with a base of
Of all the Active Internet Users surveyed, it has emerged that for close to 90%
of the respondents the prime use of Internet is Online Communication and under
this e-mail communication commands the lion‘s share of 78%. Social use the
Internet for Entertainment. Apart from Networking continues to be the rage with
75% of the users engaging in it actively. 69% now listening to songs and
watching videos online, sizeable numbers are downloading mobile VAS. Online
shopping has also picked up in a big way. Every second active internet user
Figure no. 8
Purpose Of The Internet Access In Rural India
For the Rural Active Internet User, Entertainment is observed to be the main
purpose of Internet access and a huge 84% of them have used it primarily for
entertainment. Majority of the users like to access Music/ Videos/ Photos and
the most important reason for using the Internet with 43% using it. Number of
users engaging in text chat has also gone up significantly compared to last year
and is used by 22% of them. Compared to last year, the awareness levels of
usage also subsequently has increased over 2012 with 62% and 52% of them
having used Online Services and Social Networking respectively. Further, over
half of the rural population is observed accessing Internet for social networking
purpose. Also, maintaining last year‘s trend, most of the users are seen availing
online services related to job search on the Internet. This is followed by online
Railway Ticket Booking is the most performed activity when it comes to Online
Shopping, which has also seen a significant growth over the last year. With a
very low awareness level, Online Transaction is still an area about which the
pressing need to educate and inform the user of the benefits of the internet
The report begins with an introduction to the e-commerce market in India and
offers information regarding the market size and growth. It also gives a break-up
of the revenue for the e-commerce market. It goes on to explain the market
structure of the e-commerce market and also provides an overview of the factors
which drive this market. In the market overview section the structure of the
online travel market is explained. Market size, growth and the break-up of the
revenue generated is also provided for the online travel market. Increasing share
of online travel market as well as the prevailing commission structure has been
highlighted. Porter's five forces analysis gives an overall picture of the online
travel industry and helps to understand the major influencers. The business
model explains the role of global distribution systems and their role in the online
travel industry. This section also explains the various incentives provided by the
OTA's to attract more customers and the operational edge OTAs have over the
Rising disposable income has also acted as a driver for online travel portals.
Indian railways online portal has proved to be extremely efficient and user
drivers identified include rise in low cost airlines, which has paved a way to
travel by air for the large middle class segment in India thus increasing traffic to
these online portals. Secure payment mechanisms have given people the desired
confidence to carry out transactions online. On the other hand tremendous rise
in medical tourism has led to influx of foreign travelers to India which again
coupled with low margin and high operating costs which has caused profit
margins to shrink. In addition, limited awareness about portals adds to the woes.
Trends identified are emergence of value added services among various OTAs
including discount vouchers to woo customers and gather a large market share.
following a hybrid model constituting online and offline stores to penetrate the
market even further. OTAs are also moving towards better technology so as to
cater to the increased traffic and offer a user-friendly experience to its clients.
They are also becoming more responsible and addressing customer queries and
complaints swiftly through social media interfaces. It has been identified that
OTAs are also a means of information verification and cross checking among
Travel Industry
As the Internet has developed, more and more consumers can now find travel
information or even purchase travel through the Internet due to its convenience
and capacity for huge information, and this has led to many traditional travel
the characteristics of the travel industry well, and can make the best of the
scale key success factors when developing e-commerce for the travel industry,
which means the agencies can‘t focus on the important things, and this can cause
up a plan, helping the company allocate their resources rationally, enabling them
to meet their consumers‘ demands efficiently and increase profits. Nine key
electronic accounts and online payment services which are related to tourism
nations in the 21st century, and has since turned a new growth point of tourism
gain. It is also an area of e-commerce that mainly enhances internal and external
distribution could also be bolstering. Tourism e-commerce has got back in shape
after ten years of continual development, however it has seriously affected the
traditional tourism enterprises especially in the developed world, but today not
many of the traditional merchants have realized the need for internet marketing
while a high percentage still pays attention to offline advertisement modes, such
require a high expenditure, which has been a difficulty to the firm‘s good sales
travel companies still prefer managing internal business with the usage of
to stay in the primary stage with limitation to easy data processing and report
In the business world, airlines could be the biggest winner of the Internet, or e-
consist of two parts: direct operating costs and indirect operating costs. Direct
operating costs — such as aircraft, fuel, and salaries — make up about 60% of
the total cost, and indirect operating costs — such as distribution costs — about
40%. Direct operating costs are more or less ―fixed‖ and there is not much an
airline can do to cut them down. So most airlines would focus their cost-saving
potentially play an important role. A major part of an airline‘s indirect cost is its
Ticketing fees
Traditionally, airlines pay 3-25% commissions to travel agents who sell their
and issuing tickets of their own. To reduce distribution costs, airlines would
Systems (CRS) and sales agents. At least in the USA, big airlines have already
been doing that. They have set up on-line sales networks, and almost every
airline‘s web site offers on-line booking functionality. Some airlines jointly set
up on-line booking sites to offer B-B, B-C, and other travel- related services.
Travel websites (such as Priceline) and Internet booking engines (such as
Airlines sell their product at different prices. The same seat in the same airplane
can fetch different prices depending on when and where it is sold. Generally
speaking, the earlier you buy a ticket, the cheaper it is. Moreover, airline seats
are time-sensitive and perishable—seats that are not sold at time of departure
become ―spoiled‘.‘ On the other hand, seats sold too early at discount
stay.
ticket.
tickets.
avoid competition.
from the airline & sell these tickets at a lower price to the passengers.
These conditions change from season to season and from market to market, as
air traffic demands fluctuate from time to time and from market to market. The
fact is most airlines do not have the technology to handle all these ―conditions‖
loses revenue; if the fares are too high, they may remain unsold when the plane
departs. Without knowing when to sell a ticket at what price under what
In order to fully realize the benefit of e-commerce and to avoid the potential
revenue dilution, airlines are turning for help to new tools such as revenue
passenger traffic demand for each flight and each market segment. In other
the forecast and given fares of the booking class, it recommends an optimal
revenue.
Many airlines are using revenue management systems for such a purpose. But to
instantly determine the flights, itineraries, prices, and number of seats to put on
proactively price all seats in response to requests that may come at any second.
Only in this way can Internet bookings prevent revenue dilution and
customer satisfaction.
airline industry. But at the moment, e-commerce brings greater benefits to the
consumers than to the airlines, which explains why many airlines are reluctant
to take their business on-line. Other industries may differ from the airline
industry, and their e-commerce practitioners may not have to deal with as many
complicated factors. But it is safe to say that any industry will have its own
problems, and that the promise of the Internet is almost always mixed with
certain risks. We cannot expect e-commerce to grow as fast as the Internet age
seems to promise.
One of the risks of e-commerce is that it increases the chance of making wrong
decisions. If something goes wrong, the damage would be huge and swift. This
some companies at high cost. Another risk is the impact it may have on the
the airline would have to change its business procedures, even its organizational
The travel agency industry‘s response to E-commerce offers insight into how
electronically and are served by numerous small outlets share two key
who are increasingly more experienced at using the Internet and other new
communication technologies.
The traditional travel agency industry still accounts for the majority of total
travel sales. Airlines continue to acknowledge this fact that most of their ticket
travel accounts, and in general, aiding customers with a variety of issues related
destinations. One key question for these agencies to consider is whether the cost
costs will remain a significant and ongoing cost of conducting business online.
With the huge amount of information on the Internet, search has become
search engines provide the means for travelers to access travel products in a
companies are joining to tap the potential market created by e-commerce. This
access. It is argued, from this analysis, that there area number of emerging new
technologies such as mobile devices and global positioning systems which need
concludes that a major challenge facing the industry is to assess the impact of
these technologies on different aspects of the travel industry and to find out how
Information is the key element in the tourism industry. Tourists want to know in
advance about the attractions and the facilities of a particular destination. The
tourist also wants to know other related information of his/her visit to make the
travel and tourism-related products and services are highly important. Using of
the e-marketplace for tourism is the need. The most important benefit associated
with the new technologies is the supply of information. The role of ICT in
the Internet and the World Wide Web. These developments have impacted both
consumer and industry behaviors in the areas of travel and tourism. Consumers
have more options regarding vacation and budget planning. 95 per cent of web
users have searched the Internet to gather travel related information. 93 per cent
visited destination web sites and nearly one half used e-mail to gather travel-
related information. Almost three- fourths of online travel buyers used search
gadgets such as GPS 's, mobile phones, smart phones and hand-held devices
and tourism industry for at least 50 years, particularly in the areas of automation
and networking of distribution channels. Local travel agents that used the global
registering with online travel agents, online advertising agents, and inter-
developed websites which offer planning, booking and payment services online
for added consumer convenience. Businesses that have not made use of the
Internet cannot compete and therefore they must grasp the opportunity before
Information technology has played a central role in the growth and improvement
of the travel and tourism industry. The lasting effects of technology are
market of consumers and businesses around the globe. During the pre-
computerized time, the role of the travel agent was to advise clients on travel
arranging travel bookings. Even as late as the early 1990's, consumers booked
cruise travel and tourism through travel agents as many companies did not offer
direct bookings. There were two waves of information technology that have had
a major impact on the industry. The first of these is the development of the
direct reservation systems, such as the American Airlines SABRE system. The
second is the development of online sales channels via the Internet. Tourism still
remains the major strength of every developed and also developing nations
based on the number of employees in the sector, because without tourism sector
it would have been impossible for all other important sectors to play a key role
in the everyday development of the global market. The hotel and airline
industries are the ones who cannot survive without the use of e-commerce in
developed nation especially because online access makes it easy for them to
method which is only person to person mode of business since the world of
activities of a firm both internally and in relation to its outside partners. The
ranging from tour operators to cafes and restaurants. The companies include
SMEs and the types of enterprises that comprise the tourism industry are: (1)
tour operators (2) travel agents (3) tourist guide services (4) airlines (5)
transportation (6) restaurants and cafes (7) hotels and guesthouses (8) museums
and historical sites and buildings (9) nature reserve services (10) tourism
education and training institutions; (11) local tourist offices. Within the
discourse on the information society and the e-economy, ICTs are seen as major
tools with the potential to fundamentally change business behavior and company
virtual business can be conducted. The adoption of ICT in the tourism industry
products and booking which could also contribute to increased sales volume and
profits.
Competition
include:
Agencies.
travel
Figure no. 15
While online travel sites have certain advantages in providing these services,
characteristics that may help traditional agencies differentiate from online travel
agencies include:
changes;
Personal Relationship.
The Internet and new technologies have provided online travel agencies the
tools to duplicate the five ―R‘s‖ of service provided by offline travel agencies.
Figure no. 16
Online Travel Agencies
Online travel agencies such as Make My Trip, Clear Trip, Yatra, Trip Advisor,
travelers looked up flightschedules using their mobile devices in the past year.
immense.
Display and search advertising creative with special deals and offers are proving
to be most effective, helping online travel agencies acquire and retain customers.
The Mobile Opportunity For Travel
Targeted mobile display, search and text ads are helping travel companies such
as Continental Airlines, MGM Grand, Walt Disney World, and Expedia build
brand awareness and turn purchase intent into sales with their target audience.
Targeted mobile display, search and text ads are helping travel companies such
as Continental Airlines, MGM Grand, Walt Disney World, and Expedia build
brand awareness and turn purchase intent into sales with their target audience.
Figure no. 17
With 65 percentof all mobile Internet users making airline, hotel or car rental
purchases in the past six months, it is clear that there is an important intersection of
mobile and travel.
Mobile is both media (to promote advertising messages) and a channel to sell
and transact. Consumers are using their mobile devices to stay connected using
Mobile web – Consumers are using the mobile sites of travel companies to plan
their trips and enhance their travel experience. Travel companies such as
airlines, car rental companies, tour services and travel agencies should consider
having mobile commerce-enabled sites as an additional revenue stream.
For example, STA Travel, a global travel specialist for students and young
people, used mobile advertising on the mobile web to promote flights to its key
global destinations. The ads drove consumers to STA Travel‘s mobile site.
Search – Consumers are using their mobile devices for local search with
need to ensure they are present at the time of the consumer‘s expressed need;
HotelsByMe, for example, launched iPhone and Android applications that use
the mobile device‘s geolocation services to help travelers find nearby hotels.
The applications sort the list by distance from the user‘s current location and
Users can also access more than 44,000 hotel properties worldwide, search by
city or landmark and also view photos of the hotel. Coupons can be included
Chapter 9
88
There was once a time when hotel marketing focused on brochures, newspaper
listings, magazine ads, banners, and lots of printed paper. Things have changed,
and print media is less effective at driving new bookings as it once was. Today,
it can be hard for hoteliers to learn how to acquire new guests aside from turning
used today by the most successful hoteliers and hotel marketers around the
world.
Figure no. 19
89
Digital vs. Traditional
print advertisements, to build brand awareness and find new guests. This form
of marketing is becoming less effective with each year. In the first half of 2012,
advertising. That means for every $25 they lost in print ad revenue, they gained
Radio, magazines and other mediums are now dwarfed by digital online
billion in all of print advertising ($35b today—that‘s a loss of 8.5% over four
years).
One can only conclude that productive customer acquisition channels are almost
exclusively digital, and the disparity between traditional and digital channels
where guests are concerned will only increase. Therefore, though there are other
OTAs are consumer-facing web interfaces for travel bookings many are familiar
Expedia, Priceline, Travelocity, Make My Trip, Clear Trip, Yatra and others.
OTAs were created to give travelers the ability to book their own travel plans
can help sell a hotel‘s vacant inventory, but the cost of this partnership can
cause a hotel to lose an undesirable portion of its profits. Hotel owners usually
prefer that guests book travel directly through their own booking engines instead
of OTAs, and then list their room inventory with OTAs and GDSs when they
Guests are increasingly booking travel directly from hotel websites, due to the
attractive user experience of trip planning using search engines like Google, and
through OTAs, then in the course of doing independent research using search
due to their popularity. Many guests prefer to purchase package deals, including
airfare, car rentals and accommodations, which is the benefit of using an OTA,
important to have an alternative direct booking option for guests who prefer to
PROS:
CONS:
Some OTAs will not accept inventory unless the hotel meets its price
requirements, thus forcing hotels to sell their rooms for cheaper than
process.
GDS
There are four major GDSs in the world today: Worldspan, Amadeus, Galileo,
and Sabre, and many other minor ones. GDSs are used to make reservations for
multiple airlines, hotels, car rentals, and other vendors. The airline industry first
92 120
reservation data. GDSs are today used by various entities, including airlines,
93 120
travel agencies, OTAs, car rentals, hotels and more to manage and process
reservations.
GDSs run on legacy systems, meaning that they are powered by outdated code
and methods. This is a large problem for the travel industry for many reasons.
Old code can only run on old hardware, which is becoming hard to repair and
replace. Those who knew how to repair and adapt legacy systems retired or
forgot how to use them, and the information was lost with them.
technology. The best solution is to use a SaaS CRS that is updated over time as
Today, GDSs are still used in one way or another by airlines, hotels, and OTAs
all over the world. For the time being, it is still important to integrate an
independent hotel CRS with GDSs in order to benefit from the additional
PROS:
Listing inventory with a GDS can ensure your rooms are seen by
CONS:
GDSs are built on legacy systems and may not be compatible with
94
Not all CRSs and booking engines can integrate with GDSs.
Website
A hotel website is the heart and soul of the direct channel. It is the destination to
representation of their property that guests can use to make inquiries and book
However, technology evolves quickly, faster than any other industry, and
websites published yesterday are out of date tomorrow. For example, websites
on top of web technologies as they emerge, and keep their digital marketing up-
to-date. It is possible to find services that do this for the hotelier, each with its
IBEs)
Many smaller hotels opt to have a simple contact form on their website. When a
reservation inquiry comes in, they open their email, record the information, and
process the credit card. This is a manual process that works best for small
properties with a handful of rooms. For larger hotels, they need a more robust,
automated booking engine that can deliver updated availability to guests when
OTAs or with the GDS on their own. Thus, it is often necessary for hoteliers to
a plethora of options, however, many CRSs take a commission fee for every
reservations for some time. Having a solid SEO plan in place allows a hotel‘s
algorithms are volatile, changing daily, implementing any SEO strategy can be
risky.
For example, implementing an SEO strategy popular five years ago could cost a
Social Media
The goal of social media is to point guests and fans to a direct marketing
media correctly. More often than not, hoteliers will create their social media
profiles, speak to an empty room for a few weeks, and then give up.
In order to use social media correctly, hoteliers and hotel marketers need to
invest time and passion into the network before it will ever bear fruit. This time
can be costly and exhausting, and may not deliver results for weeks, months or
even years.
Search Engine Marketing (SEM) and Pay Per Click Ads (PPC)
superseded by web advertising. SEM and PPC advertising accounts for the
advertising alone has made more money each year than all print advertising
such a strategy effectively can be steep. It is very easy to quickly waste a year‘s
marketing budget in a month, if one does not take care. It takes good intuition
and experience to choose the right advertising targets, place the correct bids and
For these reasons and more, many hotels hire agencies to perform SEM and PPC
services for them. This compounds costs, levying the cost of the campaigns and
the agency fee upon the hotel. It can be very difficult to see positive return on
Online deal services like Groupon, Living Social and Amazon Local have
millions of subscribers who are looking for good deals. Joining one of the
services and offering their members a substantial discount is a quick way to fill
empty inventory.
One drawback of using deal services is that many of them won‘t accept a
proposed deal unless the hotel offers a significant discount--so significant that
the hotel might not make much money. However, the brand exposure is a great
opportunity for a hotel to snag repeat customers and future online bookings. The
risks and rewards need to be weighed heavily before embarking on this strategy.
PROS:
It can be cost effective to pick one or two direct marketing activities and
excel at them.
98 130
CONS:
99 130
Chapter 10
Competitive pricing is the most important success factor that creates product
100
for the organizations products. Prices are to be set that captures the value of the
product. The right way to set prices involves capturing the value that customers
the truism that customers differ from each other. However, when it comes to
setting just one price for each product. The key to developing a comprehensive
pricing strategy involves embracing (and profiting from) the fact that customers‘
pricing needs differ in three primary ways: pricing plans, product preferences,
and product valuations. The travel industry, like many others, relies on
consideration when consumers are buying travel or planning their holidays. This
including its price and any inclusions or exclusions. It applies equally to all
upgrades, airfares, duration of the trip, any tours, transfers or other inclusions,
How unique is your business? The more unique your tourism product
What market do you want to attract and what positioning in the market
For most tourism businesses setting prices will be more market based –
that is, what do competitors with similar products and services charge
own financial position (debt levels, cash flow etc) before you can decide
Pricing Components
Rack Rates
All tourism businesses should have a rack rate – this is your ―full rate‖ before
any discounts are applied and typically is what is provided to wholesalers and
printed on brochures for the season ahead. For activity and attraction operators
their full rate is more likely to be charged all the time without any day to day
middle of the market will be changing pricing almost daily for the month or 2
Using a mix of pricing throughout the year to cover low, high, and shoulder
seasons is a standard way for tourism businesses to cater for differing levels of
demand due to the time of year. Typically these will be the same date periods
each year but may also apply for school holiday dates and for local events where
A common method for accommodation suppliers to fill those last minute gaps in
Per Person pricing: A set price per person e.g Adult and Children
backpacker accommodation and camp sites. Options may include an adult, child
Per Unit pricing: – A set price for 1 unit of the product e.g. Price per night, this
is the standard way to price accommodation, usually the advertised price is for 2
people so if the accommodation fits more than 2 guests it can have a mix of the
per person pricing with extra adult and extra child rates.
Single or double occupancy – common for B&B‘s there is a single rate and a
While discounting has it‘s place, and often unavoidable in a competitive market
missing that vital break-even point. Be selective with last minute pricing deals –
don‘t make every day reduced, just select those where you really do need extra
booking at all, customers do become used to a certain price level and you
therefore run the risk of not only making it hard for you to charge your normal
rack rates, but it will also devalue your product – remember perception is
everything in tourism!
Package Deals
discount. Strike up deals with local businesses to provide a full package and
share business with each other – you should be able to get their products or
services at a ―net‖ rate so the package pricing is better than if they had
niche markets effectively e.g golf weekend, food and wine tours, pampering
packages etc.
Commissions
Many bookings will come via some sort of third party who will charge you a
Many tourism operators are tempted to add the value of the commission on to
the pricing for these providers but this should actually be considered in the
setting of your rack rates anyway – if you have different pricing across different
distribution channels it just confuses both travellers and can jeopardise industry
At the present time, the airline industry faces many cost pressures. The industry
Higher costs inevitably lead to higher prices for airline passengers. Therefore, it
is crucial that reliable and appropriate estimates are available to assess how
higher prices impact on the level of demand for air travel. This impact will, of
course, differ according to the level and location at which prices are changed.
This report provides groundbreaking new research into the sensitivity of air
travel demand to changes in air travel prices and incomes. It provides clear
guidelines for the appropriate use of demand elasticities and robust and reliable
estimates of their value. Air transport provides economic benefits not just for its
passengers and cargo shippers, but also for the wider economy by connecting
businesses and individuals to global markets. Modern, just-in-time, global
supply chains and multinational businesses are made possible by global airline
implement air transport policies that are not in the best interests of the aviation
industry and the wider economy. Monopolistic airports that raise charges but do
not improve the services they offer will see passengers quickly shift elsewhere.
Governments that impose new taxes on the industry are taking advantage of less
industry‘s expense.
The elasticity of air travel demand varies according to the coverage and location
of the market in which prices are changed and the importance of the air travel
price within the overall cost of travel. The appropriate elasticity to use will
depend on the type of question being asked. What is the price that is being
changed (e.g. an individual airline ticket price or prices within the market as a
whole)? What is the unit of demand that is being assessed (e.g. demand for an
individual airline or demand for total air travel)? Examining the traffic impact of
by the boom in low cost travel, the transparency brought by the Internet and the
less sensitive to price, as increasingly lower air travel prices, in real terms mean
that the air travel price itself becomes a smaller and less important part of the
"The key to success lies in the quick identification of consumer needs and in
information". The rapid growth of both the volume and the quality requirements
requesting high quality products and value for their money. Thus, destinations
and principals need new methods to serve the new types of demand. The usage
of ITs in the industry is driven by both the development of the size and
require to interact with suppliers in order to satisfy their specific needs and
107 140
wishes. The contemporary/connected consumer "is far less willing to wait or put
In order to satisfy tourism demand and survive in the long term there is no
choice but to incorporate technology and enhance the interactivity with the
effectively frees time for customer service; customising the product and
(e.g. telephone operator acknowledges guest by his name); and finally better
satisfy the needs of consumer for convenient access to transparent and easy to
108
compare information. They cover the entire variety of choices of travel, lodging
and leisure services, destinations, holiday packages, as well as display the actual
prices and availability of such services. These services also provide immediate
packages.
the proliferation of the Internet and the World Wide Web since 1995, illustrate
that consumers increasingly rely on the Internet for travel information. They
the emergent opportunity by utilising the ITs tools. This is already the case with
hotels as key products to the consumers. Flight and hotels are key terms search
searched in the search engines. An airline usually connects with the computer
reservation systems of the hotels and displays the inventory on the airline sites.
This gives the consumer an option to book air and accommodation through the
airline website. The intermediaries like tour operators, travel agents, and online
travel agents provide the consumers not only with just flight and hotels but also
car rental and holiday packages. The integration between airline and hotels is
commission per room night, which the airlines will receive through the referrals.
travel and tourism sector. Excellent customer service results in a high level of
organization to others. Many organizations in the travel and tourism sector offer
the same or similar products and services, and it is often the quality of the
customer service, which distinguishes one from another. Travel and tourism
learners to the principles of customer service as they apply to travel and tourism.
providing information and selling products and services, and learners will have
the opportunity to develop and demonstrate these skills with customers in real or
simulated situations across different industries within the sector. Meeting the
specific needs of different customer types will be dealt with to ensure that all
knowledge that learners gain from this unit will help to prepare them for
offering excellent customer service within any travel and tourism organisation.
Customer service is important because you must ensure that customers are so
pleased with doing business with you, they will keep returning to you. You have
to keep your customers away from your competitors. It costs five times as much
tell others of their bad experiences and those people will avoid using your
just price, i.e. customers are prepared to pay more for your product or service.
Your organisation needs to be secure and able to develop, and so do you. You
want the buzz you get out of providing excellent customer service. Some
horizontally. This gives them control over each level of the products they
market but leads to an underlying consistency in customer service across that
integrated group. People operating small private companies may have a niche
market and know many of their clients as regular customers, which helps give a
more personal style of customer service. Large organisations may depend more
upon systems to help provide customer service but, with the right approach and
by selecting and training staff who have a real desire to provide excellent care to
their customers, such organisations can also provide a personal style of service.
N Mean Std.
Deviation
B9. Customer friendly website for consumers to easily locate
33 5.00 .000
and book tr
B6. Competitive pricing 33 4.73 .517
B4. Differentiated products & services from competition 33 4.73 .452
B5. Advance Technological infrastructure to meet the
33 4.70 .529
dynamic consumer demands
B2. Prompt response to customers' problems, suggestions,
33 4.67 .540
and complaints.
B3. Customer Loyalty & satisfaction 33 4.61 .659
B7. Efficient deals/packages/inventory distribution system 33 4.48 .566
B1. Customer-tailored marketing via customer profiling 33 4.33 .736
B8. Human resources skill set pertaining to travel industry 33 4.21 .781
Most important factor which will have an impact on the over all business
friendly website.
Methods & practices to structure the e-commerce business in the
N Mean Std.
Deviation
C1. Customer friendly website for consumers to easily
33 4.97 .174
locate and book travel related products
C5. Advance Technological infrastructure to meet the
dynamic consumer demands & fasten business 33 4.88 .415
operations
C2. Regular updating the website with latest and correct
33 4.82 .392
information for consumers to make informed decision
C3. Prompt response to customers' problems,
33 4.79 .485
suggestions, and complaints.
C16. Multi-Channel Marketing 33 4.70 .529
C4. Investment in tablet and smart phone apps 33 4.70 .637
C11. Consistent Promotion design tailored according to
33 4.61 .496
the consumer purchase patterns
C8. Business alliance with white label products e.g.
33 4.48 .667
hotels, flights, cab, insurance, holiday package
C14. Improve Process efficiency - The time taken to
33 4.48 .566
quote the offering & price
C15. Engage with exciting content on social media to
encourage engagement between travel products and 33 4.42 .663
consumers
C9. Informed reports for forecasting and decision
33 4.39 .659
making
C6. Analytical tools to track consumer behavior &
33 4.36 .653
transactions
C7. Consistent offline and e-media advertising without
33 4.27 1.153
any blackout periods
C12. Innovative payment gateway features to enhance
33 4.27 .719
consumer experience & increase business performance
C10. Interactive feedback between customer and
33 4.27 .674
business
C13. Improve Process efficiency - streamline the time to
33 4.18 .727
develop a custom itinerary
Travel websites have to be regularly updated with latest deals, products,
services, promotions, and policies. One of the most common issues found with
websites is ―Build it and Forget it‖ syndrome. In simple terms, it‘s the website
that you build today and do not change a thing for the next few years. This
simple: it‘s ―old web‖ thinking in a ―new web‖ world. In the old web (say
mid-1990‘s to early 2000,) the idea was simply to copy and paste the content
from your company‘s brochure into your website and then you were set. At that
point, you were fine to leave it for the next few years and many businesses did
just that. The new web is all about content, but not just any content… fresh
content. In the new web, the websites that get the most traffic are those where
the content is constantly changing, being added to, and improved. Users want
and expect to see or learn something new each time they visit your website and
they view those websites that do so as more valuable. Think about it, you
Travel goes mobile: The Travel & Tourism sector has been one of the most
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boarding passes; using mobile messaging as a CRM tool to keep passengers
informed about delays and cancellations; giving iPads to in-flight staff to enable
them to conduct appraisals 35,000 ft. off the ground; and of course creating
efficiency for them, and the ticket-buying experience for their customers.
Reality to help travellers find their way around a strange city. And travel agents
producing companion apps to help their customers plan their holiday before they
leave, and make the most of it when they arrive at their destination.
Add to that the plethora of hotel- and tax-booking apps, underground maps and
bus and train timetable services, and it‘s clear that the Travel & Tourism sector
Since travelers invest so much more time using apps than mobile websites, it's
no surprise that the majority of purchases and bookings coming through mobile
devices occur in apps rather than mobile websites. In 2012, a full 20% of
smartphone owners used their device to book air travel or make a hotel
reservation, and 80% of these transactions were made with an app. Again, these
numbers are certain to rise as the market penetration of mobile devices increases
Beyond the standalone benefit of increasing market access, mobile apps allow
With the increasing number of travelers using their mobile devices, there are
outstanding opportunities for the travel industry predicated on the real time
ability to connect and interact with consumers at any time or place. The portable
media landscape of mobile offers a powerful medium to deliver content to
improving travel efficiency and building ancillary revenues. Mobile offers the
traveling consumer the ability to research products and services, make instant
engage in signups and buy on the spot. You can communicate information or
alerts, send coupons, offer distressed inventory, make timely offers and last
minute deals, up sell and cross sell ancillary products and services.
Airlines are leading the way by upgrading their mobile Web experience from
being mainly information driven to providing the ability to book and purchase
flights, join the standby list and upgrade seating. Hospitality brands are diving in
to the space with SMS call to action campaigns for promotions on discounts for
rooms, dining, amenities, etc. and creative concepts like a mobile concierge for
and conveniently sent by text message, there‘s the ability for paperless ticketing
are looking to the channel to engage with customers at all stages of the
consumer buying cycle. The innovative use of mobile technology offers the
Multi-Channel Marketing:
communicate directly with users, engage with advocates and create branded
applications. Facebook is the most powerful social media channel for travel
empower brand advocates and push consumers further into the travel purchasing
process.
experiences. In 2012, Facebook reviewed the top stories people shared to their
Facebook timelines and discovered that the top story being shared by users was
travel experiences, more than double that of the next category. In the evolving
digital marketing landscape, it is clear that consumers want to share their travels
with others and tourism marketers need to tap into this consumer behavior to
Brand awareness
Inspire visitation
Consumer engagement
Facebook Page is your brand‘s storefront and where you will be able to
showcase your destination‘s most important news on your time line. Within your
Facebook page, you can brand your profile in name and images, select a vanity
URL, list your business details and link to your website. Facebook Pages also
allow you to list upcoming events, map your location and feature photo and
video galleries. Your Page is where you will generate connections and long-term
relationships with your brand advocates (residents and past visitors) and attract
Facebook Ads are a paid advertising solution used to attract new fans, amplify
your message and expand the reach of your brand. Facebook Ads allow you to
Traditional Ads for brand awareness and to drive traffic to the website, page
connections with your Page and Promoted Posts to showcase your Page posts.
Facebook Offers allow Facebook Pages to provide offers such as hotel deals that
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Facebook Ads are a cost effective approach for generating awareness,
install Facebook Page Apps that will be located on a Facebook Page. Facebook
Page Apps are available from third party application developers or can be
Page Apps for destination pages include sign up form for newsletters and
vacation guides, contests and sweepstakes, co-op programs and integration with
other social media channels. While some third party applications are available
for free, customized Page apps will require a web development investment.
Facebook Login and Open Graph as free tools for brands to develop
increasing your Facebook Ads budgets and timing it with unique and innovative
campaigns your organization can make sure to differentiate itself and gain the
your audience and build your following, think about layering in a contest,
giveaway or sweepstakes.
anywhere else to peak the most interest. When running a Facebook campaign
always be sure to collect email addresses and require entrants to like your
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traffic in the future.
Search engines have become one of the primary tools for travel planning and, as
dynamic relationships among the search engine providers, the tourism industry
substantial understanding of how search engines are used within the travel
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important components of an overall Internet marketing program. With the
engines such as Google and Yahoo! have become the ―Hubble‖ of the Internet
Industry
email has become so wide-spread and so often used that it has firmly been
cost, speed and convenience of getting something into market. However, peer
deeper and you‘ll see that the medium has matured. Email is a vital link between
marketer and consumer that can provide companies with rich information about
their products and services. Email extends well beyond the boundaries of opens
and clicks, and must be optimized and measured as an important part of the
research. More than half of respondents have a favorable opinion of the travel
companies that send them email because of the communications they receive
and feel more loyal towards companies and products. Travel reflected better
loyalty than other categories in the study, with 63% of recipients of permission-
based email from travel companies more likely to buy from companies that send
them email. The travel industry was one of the first industries to enter the e-
commerce arena and therefore travel consumers have a high comfort level in
today more receptive to email opt-ins and more adept at Internet search, they are
Patterns
marketing. It is the way we tell the world our product. Promotion provides
manner. This, we hope, will sooner or later result in sales of our services or
achieves this by informing, persuading, and reminding - the three principal goals
of promotion. Promotions usually fit into one of these categories; they are either
research and planning. The stage of customers‘ decision processes and product
life cycle stages affect the promotional campaign decisions. However, there are
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Factors that are detrimental to the growth of the e-commerce
N Mean Std.
Deviation
D3. Lack of Advance Technological infrastructure to meet
33 4.73 .517
the dynamic consumer demands
D4. Slow time to market then competition 33 4.67 .645
D5. Brand lacks loyalty & satisfaction 33 4.64 .549
D6. Brand lacks consumer preference 33 4.61 .659
D2. Non Differentiated products & services from
33 4.52 .795
competition
D1.a Flight + Hotels 33 4.48 .834
D1c Flight + Hotels + Car Rental + holiday package 33 4.36 1.194
D1b Flight + Hotels + Car Rental 33 4.21 1.053
D7. Delay in payments of suppliers/partners leading to
33 4.15 1.034
suspension of business deals and advertising campaigns
match the price. The systems should be capable enough to match the
price real time so that competition is unable to capture the entire share of
Time to market is the total amount of time it takes to develop and get a
just related to how good its products are but how quickly they are gotten
months can have a dramatic impact on the success of a new product. One
larger market share. once a company has an edge, it will often keep it.
Has any company really overtaken Sony for their Walkman products?
On the other side, IBM was a big part of the development of the personal
computer market, and then lost much of its market share to other
manufacturers.
One good reason for having a fast time to market is to allow a company
to start later on designs than the competition for a similar product. This
can allow for more feasibility studies and for the use of the latest
certainly have old technology by the time it is being sold. Quicker design
How does this relate to quality and cost? A quicker time to market
market before it is ready, the quality may suffer and the customers will
not be willing to pay as much for it. As companies feel an increased need
to bring products to market faster, the need to get it right the first time is
and tools.
lack of focus
Lack of strategy
Management support
Equipped systems
differentiator.
TESTS FOR SIGNIFICANCE (T-Test)
It can be used to determine if two sets of data are significantly different from
each other. Tests for statistical significance are used to address the question:
variables is really just a chance occurrence? Tests for statistical significance tell
us what the probability is that the relationship we think we have found is due
only to random chance. They tell us what the probability is that we would be
making an error if we assume that we have found that a relationship exists. The
test statistic in the t-test is known as the t-statistic. The t-test looks at the t-
(probability) that can be used to determine whether the population means differ.
Analysis
systems (GDS) perceive that commitment from the top management play
knows that coupons, deals, and rebates are indispensable tools to both
acquire first-time customers and retain existing ones. This fact accounts
for why deal sites have existed for so long and continue to have legs
under almost any economic circumstance. Since the early days of the
Internet, retailers could get their offers posted to all kinds of deal sites
without much difficulty (or the need for a professional media buyer).
With the advent of affiliates, many retailers didn't even need to post their
offers – their affiliates would do it for them or even develop whole deal
sites filled with nothing more than affiliate links. One of the most
that they may need or just want. Individuals may think that these offers
may be too deferential to be real, but in all reality these offers are
individual could find terrific presents for friends and close relatives. If
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someone has a big family but does not necessarily have the disposable
beneficial. Gifts could be bought way in advance and put away for future
discovered that someone may not have even known about. Items can be
discovered that someone may not have seen or observed about in years.
hotels
registrations, sales and click streams. These data are used to extend
users can register for email updates and are asked for a range of
activity and composition of travel party. With the customer‘s data held
centre staff. By accessing the customer‘s profile the call centre is able to
prioritize that customer and possibly explore up sell and cross sell
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organisations in the travel and tourism sector. Excellent customer service
consumer complaints.
for hotel rooms and airline tickets are growing in the double- and triple-
invest a great deal more in mobile apps and cloud services, and try to
information and plan their trips. And how the travel industry responds to
those needs. Mobile technology is also allowing people to book travel
image gets amplified across both offline and online advertising channels.
how effective one is over the other. The former practice consisted mostly
now consider that melding the two together can reap better benefits, as
media increases, the revenues of offline media decrease, even though the
price of advertising might increase. he Internet has allowed many
previously excluded.
product. For example, in selling seats for a flight, the number of seats is
fixed, they can be sold until the departure time, thereafter they simply
Travel agents, tour operators, travel meta search engines, GDS perceive
range of travel solutions not just selective travel solutions. Travel agents,
tour operators, travel meta search engines, GDS place high importance
book different travel products. Multiple products under one roof invites
new customers and enhances brand image and hence brand preference
Travel agents, tour operators, travel meta search engines, GDS place
products are built with the help of technology. Technology trends in the
payments and more. Some new technologies are designed to improve the
delivery. But all innovations must work within the context of a rapidly
way they interact with devices and suppliers can deliver new capability
Travel agents, tour operators, travel meta search engines, GDS place
high importance that lack of brand preference in the consumers mind can
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behavior. Brands with a strong hold on consumer minds can capitalize
on that hold through brand extension. The new products get traction in
the market, at least in theory, on the strength of the brand name. A weak
brand name that lacks this hold on consumer minds cannot lend strength
of importance)
Descriptive Statistics
N Mean Std.
Deviation
A11c. Competitive pricing 11 4.91 .302
A10c. Deal sites 11 4.73 .647
A2. Technological infrastructure that supports the dynamic
11 4.73 .467
business demand
A11b. Prompt customer service 11 4.64 .505
A9a. Products that are of most interest / most importance to
travel related organizations to increase business performance - 11 4.64 .505
a) Flight + Hotels
A4. Promotions to drive incremental business 11 4.45 .688
A11a. Differentiated products & services - a) Exciting holiday
11 4.45 .688
itinerary
A7. Multi-Channel Marketing 11 4.45 .820
A1. Commitment (Commitment and support from top
11 4.45 .820
management in term of strategy and implementation)
A3. Online media marketing budgets 11 4.36 .809
A10b. Tourism sites 11 4.18 .982
A8. Partnership/Alliance to expand the product offering 11 4.18 .874
A10a. Widen the travel product distribution system - a) E-
11 4.18 .751
Tailing sites
A9c. Flight + Hotels + Car Rental + holiday package 11 4.09 1.221
145
A6. Customer retention through customer loyalty 11 4.00 .632
A5. Customer purchase patterns and tailor products according to
11 4.00 .894
the purchase patterns
A9b. Flight + Hotels + Car Rental 11 4.00 1.095
A10d. Tour operators brochures & websites 11 3.82 .982
Valid N (listwise) 11
Hotels and airlines perceive the following as key success factors that makes e-
Competitive pricing
Information technology
importance)
Descriptive Statistics
N Mean Std.
Deviation
B9. Customer friendly website for consumers to easily
11 5.00 .000
locate and book tr
B6. Competitive pricing 11 4.64 .505
B2. Prompt response to customers' problems, suggestions,
11 4.64 .505
and complaints.
B4. Differentiated products & services from competition 11 4.55 .522
B5. Advance Technological infrastructure to meet the
11 4.45 .688
dynamic consumer demands
B7. Efficient deals/packages/inventory distribution system 11 4.36 .674
B1. Customer-tailored marketing via customer profiling 11 4.27 .786
B3. Customer Loyalty & satisfaction 11 4.27 .786
B8. Human resources skill set pertaining to travel industry 11 4.18 .874
Valid N (listwise) 11
Hotels and airlines perceive the following as key factors that will have an
experience
Efficient deals/packages that can be offered to the b2b and b2c markets
Descriptive Statistics
N Mean Std. Deviation
C5. Advance Technological infrastructure to
meet the dynamic consumer demands & fasten 11 4.91 .302
business operations
C1. Customer friendly website for consumers to
11 4.91 .302
easily locate and book travel related products
C2. Regular updating the website with latest
and correct information for consumers to make 11 4.82 .405
informed decision
C9. Informed reports for forecasting and
11 4.64 .505
decision making
C16. Multi-Channel Marketing 11 4.64 .674
C8. Business alliance with white label products
e.g. hotels, flights, cab, insurance, holiday 11 4.55 .688
package
C7. Consistent offline and e-media advertising
11 4.55 .522
without any blackout periods
C4. Investment in tablet and smart phone apps 11 4.55 .820
C3. Prompt response to customers' problems,
11 4.55 .522
suggestions, and complaints.
C11. Consistent Promotion design tailored
11 4.55 .522
according to the consumer purchase patterns
C15. Engage with exciting content on social
media to encourage engagement between travel 11 4.45 .688
products and consumers
C14. Improve Process efficiency - The time
11 4.36 .505
taken to quote the offering & price
C6. Analytical tools to track consumer behavior
11 4.27 .647
& transactions
C10. Interactive feedback between customer
11 4.09 .701
and business
C12. Innovative payment gateway features to
enhance consumer experience & increase 11 4.09 .831
business performance
C13. Improve Process efficiency - streamline
11 3.91 .701
the time to develop a custom itinerary
Valid N (listwise) 11
Hotels and airlines perceive the following methods and practices required to
engines results
Consistent offline and online advertising for retention and new customer
acquisition
Prompt response to consumers complaints and improvise brands
reputation
Improve process efficiency – time taken to develop the product and offer
Derive trends.
Online travel agents, tour operators, traditional travel agents, travel meta search
Advance technology
Competitive pricing
implementation
Factors that will have an impact on overall business
importance)
Descriptive Statistics
B9. Customer friendly website for consumers to easily locate and book tr 22 5.00 .000
B4. Differentiated products & services from competition 22 4.82 .395
B5. Advance Technological infrastructure to meet the dynamic consumer
22 4.82 .395
demands
B6. Competitive pricing 22 4.77 .528
B3. Customer Loyalty & satisfaction 22 4.77 .528
B2. Prompt response to customers' problems, suggestions, and complaints. 22 4.68 .568
B7. Efficient deals/packages/inventory distribution system 22 4.55 .510
B1. Customer-tailored marketing via customer profiling 22 4.36 .727
B8. Human resources skill set pertaining to travel industry 22 4.23 .752
Valid N (listwise) 22
Online travel agents, tour operators, traditional travel agents, travel meta search
engines, Global Distribution Systems perceive the following as key factors that
Competitive pricing
Factors that are detrimental to the growth of the e-commerce
importance)
Descriptive Statistics
N Mean Std. Deviation
products, but actually the leader often has the luxury of time, while the
Non-competitive pricing for flight, hotels, car rental and holiday package
harms your reputation, damages your supply sources and strains your
suppliers you may find that their terms worsen. The way
Conclusion
and more people are travelling and they are using various channels to purchase their
holiday, some are still using traditional ways buying tourism with the travel agents,
tour operators, hotels etc and some are using electronic way to book and buy tourism
product. Even many travel and tour companies are adapting e-commerce to boom their
business, they are moving from traditional ways to e-business ways to grasp markets
as people are using internet and other online software more often. E-commerce is the
new way for promoting and selling tourism products through web.It is not easy to
technologies costs huge amount and further it need skill human resources. After the
adaption of e-commerce in business, it has to face many challenges; one of the main
challenges is to attract traditional buyers who prefer buying products from travel
agencies rather than booking through web. To lure these customers, awareness
should have very rich contents, if possible they should provide virtual tour of the
destination. There are several benefits as well as barriers for adaption of e-commerce
in travel and tourism, benefits are low operating costs, interaction with customers,
customer can choose products using internet, fast and speed in service, easy to find
new business partners, can communicate with customers during holidays in case of
any problems etc however key barriers for adopting e-commerce is huge investment,
easy for them to change the company in few seconds. To retain customer, companies
have to provide excellent services and offer loyalty programs to customers. While
going through the above literature have found many things in common. It has been
found that companies have to consider various things while adopting e-commerce
although it is beneficial for them as it reduces costs, save time, their brand presence
worldwide etc however they admired that companies can lose personal touch with
customers and their loyalty as it is very easy to switch companies due to variety of
choices offered to customers. E-Commerce has provided great advantages for both
commerce, consumers can search and compare a variety of products and services in
the global market, and then place their orders conveniently anytime and anywhere
without geographic limitations. This simplifies the buying process and provides more
selections to consumers than traditional businesses are able to. The Internet serves as a
new communication and distribution channel for travelers and suppliers of travel
services and products. Commercial websites have many attributes with different roles
and functions in company‘s marketing efforts. The websites with appropriate set of
attributes can influence satisfaction, affect consumers‘ online shopping behavior and
play a positive role in creating demand. Proper use of the attributes can increase online
purchases but also future purchase intentions. Therefore, it is important for companies
to better understand how online consumers evaluate these attributes and what makes
them remain on the websites. In contemporary travel agencies and tour operators
business, the Internet has shown to be a profitable medium of tourism promotion and
sales. The Internet represents an interesting and useful distribution channel for
collecting clients and it provides the ability to identify their desires. Promotional
problems that may cause it are removed. The Internet allows the improvement of
travel agencies and tour operators by speeding up communication and providing all
the necessary information. Product distribution and services of agencies do not depend
on the quantity of printed catalogues anymore and information about them can reach
millions of the Internet users. The Internet provides selling services of travel agencies
on demand. As technology is evolving faster than ever before, it has made most
travellers around the world much more technology-savvy than in the past. The internet
has revolutionized the tourism industry more than any other factor in the last few
decades. Also, as more people are connected to each other, with access to the vast
information via the internet prior to making any travel decisions. Hence, it has become
important for the tourism industry to adapt and uplift its practices and skills of the
of technology take-up by tourism businesses. The biggest challenge imposed upon the
tourism industry in adopting technology is the lack of accurate education of the ‗right‘
technology that is suitable for their business. There is a very big gap between the
tourism industry and the technology industry. Some organizations have been able to
tap into this gap and have turned into Online Travel Agents (OTA). However, it is not
is more important to understand each business‘s competitive edge and adopt the
booking and buying through the web. What will be customer perception using e-
secured online payment system etc. should be deeply researched while adapting
decision makers need to know some guidelines for developing their e-commerce
— both acquisition and retention — is the key to success in the travel industry.
margins, both client acquisition and retention have become critical competitive
advantages. Yet how can travel industry companies communicate and engage
with large numbers of both prospective and existing clients in a way that is not
only personal and relevant enough to produce the right results, but is also cost-
and find out more about them — what their changing travel likes, needs and
Identify promotions and special offers that will appeal to the largest
number of clients;
specific needs;
inappropriate times.
Multichannel marketing means cost-efficient communication - By enabling
marketing will help reduce the administrative burden and costs of regular or
advantage of last minute specials by sending out personalised, high speed, high
Two key areas for growth is predicted with regards to utilizing tourism
technology in the tourism industry correctly. The first area is the marketing of
the tourism destinations, products and services. Selling tourism products and
services online has changed from being just ―price-conscious‖ to being ―an
inspiration‖ to the viewer to travel. As the online user absorbs information from
a variety of sources, it is usually the site or information source that can best
stimulate the viewer to travel that will be remembered by the user. Digital
and a variety of other channels exist today for reaching the potential traveller.
However, it is the appeal of the content, combined with the right pricing that
will ultimately attract the user to your business. The second area is the
tools that can store and monitor information in order to meet the individual
needs of their clients. The better you know your customer, the more likely you
will retain them for a longer period of time. Customer relationship management
businesses to scale-up.
Annexure 1 - Bibliography
Australia, chongs@cbs.curtin.edu.au
Issue–1, 2013
2005
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Hsu-Kuan Jonathan Liu and Liwen Chen, The perception of travel agents in
Taiwan regarding travel website and training needs for adopting E-commerce,
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www.wikipedia.com
www.tnooz.com
www.emarketer.com
www.questia.com
www.pioneerjournal.in
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www.tourism.gov.in
www.gidb.org
www.statista.com
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