MARKET RESEARCH AND ANALYSIS

OF TOURISM INDUSTRY OF INDIA

Presented by: group 7
Suryadeep jain (158)
Sayak Ray (159)
Pranaw kumar Gautam(160)
Aditya Goel (161)
Vineet Gautam (162)
Shekhar Goel (163)
INTRODUCTION
Tourism has been a special phenomenon of
societies of all over the world. It is driven by the
natural urge of every human being for new
experiences, and the desire to be both educated
and entertained
Tourism in India is broadly classified in north Indian
tourism, east Indian tourism, west Indian tourism,
and south Indian tourism
Tourism in India has comes into own as a brand
India Tourism
OBJECTIVES
To look into the present scenario of the tourism
industry of india
To understand tourism patterns in the country and
to observe the various aspects of tourism with
respect to people through a market survey
To explore and analyze the performance and
opportunities related to tourism in india
METHODOLOGY

METHOD OF RESEARCH: self designed questionnaire
SAMPLE SIZE: 105
METHOD OF SAMPLING: convenient sampling
AREA OF SAMPLING: Delhi and NCR region
LIMITATIONS: biasness could not be avoided due to
convenient sampling

TOOLS USED FOR ANALYSIS

Tables.
Bar graphs.
Pie charts.
SPSS.
Microsoft Excel
INFORMATION SOURCES

Research will be based on two sources:
PRIMARY DATA: Primary data was collected by
preparing questionnaire and the people were
randomly requested to fill them.
SECONDARY DATA: Secondary data will consist of
different literatures like books which arc published,
articles, internet and websites,In order to reach
relevant conclusion
SWOT ANALYSIS
PORTER'S FIVE FORCES ANALYSIS

TOURISM INDUSTRY RIVALRY : HIGHLY
FRAGMENTED INDUSTRY WITH INTENSE
RIVALRY
Highly Fragmented Industry.
Organized players would barely have 15-20% of the marketplace
Most of organized players are present in metros & mini- metros
Large disposable incomes in towns like Lucknow, Jaipur, Coimbatore
etc. serviced by family run unorganized players
Industry rivalry is intense but not cut throat
Rivalry Intense because of low switching costs, low levels of product
differentiation, perishability of products diversity of rivals
Rivalry is not cut throat since exit barriers are not high, fixed costs are
not high, market growth is good

THREAT OF SUBSTITUTES: LOW THREAT OF
SUBSTITUTES, AS TRAVEL MOVES UP THE LIST
OF HOUSEHOLD PRIORITIES
Lot of Possible Substitutes , Threat of Substitution low
India is witnessing a growth of discretionary spend as %
of income from 30% in 2005 to around 70% by 2025.
Travel , being a discretionary spend poised to gain.
Travel has moved up the list of household spending
priorities Unlikely to be substituted by a durable purchase
or investments .Education & Recreation will occupy 9%
share of wallet in 2025 as compared to 5% now.





BUYER POWER: WHILE BUYERS ARE FRAGMENTED,
THEIR DIMINISHING BRAND LOYALTY AND ABILITY TO
SWITCH (FOR MOST PRODUCTS) GIVES THEM
REASONABLE BUYING POWER
Buyers are fragmented
Diverse retail buyer and corporate buyer profiles
Switching costs for buyers is not high as brand loyalty is
low/diminishing
Credible threat of backward integration
Buyers can directly buy from suppliers (hotels, airlines
etc)
Luxury segment is brand conscious to and willing to pay
a premium for great experience and service quality
SUPPLIER POWER: SUPPLIER USUALLY SELL
COMMODITY PRODUCTS . CONCENTRATION &
ABILITY TO SELL DIRECT GIVES POWER TO
SUPPLIERS LIKE AIRLINES. OTHER SUPPLIERS ARE
FRAGMENTED
Forward integration by suppliers like airlines selling direct
Attempts by suppliers to sell packages and complex
itineraries not very successful
While suppliers concentrated in some areas like domestic
airlines, there is widespread fragmentation in hotels, tour
operators, car rentals etc.
There is no significant cost to switch suppliers and
products like airlines, car etc. are fairly commoditized
Travel agency cannot typically buyout suppliers like
airlines

BARRIERS TO ENTRY & EXIT : WHILE ENTRY AND
EXIT BARRIERS ARE LOW, DIFFICULT TO BUILD
SCALE BECAUSE OF LACK OF READY DISTRIBUTION
CHANNELS
Government regulation of direct FDI in retail restricts entry of
foreign retailers
There are low level of proprietary travel knowledge and asset
specificity. This makes it relatively easier for new players to
enter industry and does not provoke very aggressive rivalry
from existing players
Low minimum efficient level allow entry of small startups,
however significant scale is necessary to negotiate profitable
deals
Due to a fragmented market , travel agencies do not have
access to ready distribution channels
Online channel is growing at a rapid rate but is primarily selling
air and rail
PRESENT SCENARIO OF TOURISM IN
INDIA
Indian tourism is one of largest service industry in
term of GDP and Foreign Exchange earnings.
Successful government campaigns for promoting
Incredible INDIA
Foreign tourist arrivals in the country have
increased substantially during the past decade
India has attracted 6,179,000 international tourist
arrivals in 2012-2013,generated INR 678.6 billion in
visitors exports.
DRIVER BEHIND THE INCREASE IN
TOURIST TRAFFIC
Domestic Tourist Traffic
-Rapidly increasing purchasing power of the middle class
-Better road connectivity
-Evolving lifestyle

International Tourist Traffic
-Value of the money/economical holiday destination
-Business cum pleasure destination
-Development of Kerala and Rajasthan as the most popular
tourist destination in India with three distinctive brand image
-Opening the sectors of the economy to private sectors/foreign
investment
-Reform in the aviation sector such as open skies policy has led
to better connectivity with many countries in India
-Success of Incredible India campaign and other tourism
promotion measures.
FORMS OF TOURISM IN INDIA

India offers various tourism options due to its
vastness and diversity, attracting tourists from all
over the world.
natural treasures like mountains, ocean, seas,
deserts, rainforests, valleys etc. on one hand, while
world-class healthcare infrastructure on the other,
which provides varied kinds of tourism options such
as adventure and rural tourism, sustainable
tourism/eco-tourism, cruise tourism, golf tourism
and medical tourism to the travelers.
DIFFERENT FORMS ARE :-
RURAL TOURISM
CRUISE TOURISM
ADVENTURE TOURISM
SUSTAINABLE/ECO TOURISM
WELLNESS TOURISM
MEDICAL TOURISM
SUB-SEGMENTS OF TOURISM INDUSTRY
GOVERNMENT POLICY
Government of India, the government has allowed
100 per cent foreign investment under the
automatic route in the Hotel and Tourism related
industry

The Ministry of Tourism has launched a scheme for
development of nationally and internationally
important destinations and circuits through Mega
Projects
MEGA DESTINATIONS/CIRCUITS IDENTIFIES IN
DIFFERENT STATES
FUTURE POTENTIAL
The Tourism industry in India provides opportunities
in diverse fields such as tours and travel circuit,
hospitality and hotel sector and development of
specialized tourisms such as medical tourism, rural
tourism, golf tourism, cruise tourism, adventure
tourism, eco tourism and wellness tourism.
The Tourism sector is witnessing fast growth due to
the ever-growing number of participants in allied
businesses such as hotels, tour operators, airlines,
shipping lines, among others.
EMERGING NEW PRODUCTS IN
TOURISM
GOLF TOURISM
EDUCATION TOURISM
DOMESTIC TOURISM
LUXURY TOURISM
WEDDING TOURISM
TEA TOURISM
SPORTS TOURISM
15-20
8%
20-25
37%
25-30
25%
30-35
15%
35-40
7%
40 and above
8%
Age group:
Male
72%
Female
28%
Gender:
DEMOGRAPHICS
Working
Professional
27%
Student
40%
Self Employed
16%
Business
11%
Other
6%
Occupation:
Upto 5,00,000
14%
5,00,000-
10,00,000
48%
10,00,000-
15,00,000
24%
15,00,000 above
14%
Annual income of the family:
Married
42%
Unmarried
58%
Marital status:
Senior
Secondary
10%
Graduate
55%
Post graduate
34%
Other
1%
Educational qualification:
2-4
52%
4-6
38%
6-8
9%
8 and above
1%
Family size:
Historical
15%
Sea Beach
26%
Hill Station
29%
Religious Place
13%
Forest
7%
Metro Cities
10%
preffered destinations
Once
40%
Twice
43%
Thrice
11%
More than 3
6%
frequency of travel(year)
About 29% people prefer
hill stations, followed by
26% of people preferring
places with sea beaches
Only 13% people prefer
religious places
43 % of the people
prefer to travel twice in a
year, followed by 40%
people who travel once in
a year
Summer
33%
Winter
38%
Autumn
10%
Spring
13%
Monsoon
6%
preferable season of travel
Yes
47%
No
34%
Maybe
19%
repeatetion of destination
Winter is the most
preferred season of
travelling as chosen by
38% of people
Monsoon is the least
preferred season of travel
Nearly half of the
people prefer to travel a
destination more than
once
About one third of the
people dont repeat their
destination at all
Up to 10,000
11%
10,000 to 20,000
22%
20,000 to 30,000
25%
30,000 to 40,000
16%
40,000 to 50,000
15%
50,000 and
above
11%
spending per trip
Train
50%
Flight
17%
Bus
6%
Personal
vehicle
21%
Taxi
6%
mode of travelling
A quarter of People spend
about 20,000-30,000 per trip
followed by 22% people
who spend 10,000-20,000
per trip
People spending more than
50,000 per trip is equal to people
spending less than 10,000 per trip
Half of the people prefer
to travel by trains to their
destinations, followed by
21% people who prefer to
travel by their own vehicles
Interestingly more people
travel to their destination by
flights than buses and taxis
Guest House
14%
Lodge
20%
Deluxe
35%
3 star
20%
5 star
8%
Other
3%
type of hotel prefered
Friends
36%
Family
55%
Colleagues
9%
travel companions
35% of the people prefer to
stay in a deluxe hotel with equal
number of people preferring to
stay in lodges and 3-star hotels
More than half of the people prefer
to travel with their family on holidays
Yet more than one-third of the people
preferring to travel with their friends
Yes
73%
No
27%
online travel planning
About three quarter of the people prefer to plan and gather the
information about their travel online
12%
25%
9%
5%
4%
45%
websites for travel planning
www.cleartrip.com www.yatra.in www.travelchacha.com
www.incredibleindia.org www.holidaymakers.in Other
Majority of the people consult websites such as make my trip.com and
yatra .in
A lot of people also go for miscellaneous websites, wherein they consult
more than on websites
Official
9%
Personal
47%
Recreational
33%
Religious
10%
Other
1%
purpose of the tour
Hill Station
37%
Forest
6%
Historical
15%
Metro Cities
9%
Sea Beach
25%
Religious Place
8%
prefered destinations for 20-30 age
group
About 47% of the
people travel for personal
purposes, followed by
33% people who travel
for recreational purposes
Hill stations are very
much popular in the age
group of 20-30 where
about 37% of the people
prefer to travel to hill
stations as compared to
29% for the whole data
INDEPENDENT T-TEST BETWEEN GENDER AND PREFERRED
DESTINATIONS





Since the significance values are more than .05 we can infer that choice of both males and females are
same when it comes to chosing destinations.
Independent Samples Test
Levene's Test for Equality of
Variances

F Sig.


Which type of place you
like to visit?
Equal
variances
assumed
.003 .958

Equal
variances not
assumed

INDEPENDENT T-TEST BETWEEN MARITAL STATUS AND PREFERRED
DESTINATIONS

Since the significance values are more than .05 we can infer that choice of both married
and unmarried are same when it comes to chosing destinations
Independent Samples Test
Levene's Test for Equality of
Variances

F Sig.
.213


Which type of place you like
to visit?
Equal
variances
assumed
1.568

Equal
variances
not
assumed

ANOVA TEST BETWEEN ANNUAL INCOME AND VARIOUS FACTORS
ANOVA
Sum of Squares df Mean Square F Sig.
How much you spend on each
trip?
Between Groups 34.229 3 11.410 7.565 .000
Within Groups 138.761 92 1.508
Total 172.990 95
Which type of place you like
to visit?
Between Groups 18.333 3 6.111 1.994 .119
Within Groups 318.741 104 3.065
Total 337.074 107
Which type of hotel you
prefer?
Between Groups 19.174 3 6.391 3.898 .011
Within Groups 165.588 101 1.639
Total 184.762 104
Which mode you prefer for
travelling?
Between Groups 19.866 3 6.622 4.953 .003
Within Groups 139.050 104 1.337
Total 158.917 107
ANOVA TEST BETWEEN ANNUAL INCOME AND SPENDING PER TRIP

Here we can see that the significance value is less than .05 which means spending per
trip is different for different income groups

In the means plot we can see that people having higher annual income tend to spend
more while they are on holidays or travelling
ANOVA TEST BETWEEN ANNUAL INCOME AND HOTEL PREFERRENCE
Here we can see that the significance value is less than .05 which means preference
for hotel is different for different income groups.
We have concluded from the means plot that the higher the income people have the
more highend hotel they go as people who have an annual income of more than 15 lacs
prefer mostly 5 star or 3 star hotels, whereas people with annual income upto 5lacs
prefer to stay at guest houses and lodges

ANOVA TEST BETWEEN ANNUAL INCOME AND MODE OF TRAVEL
Here we can see that the significance value is less than .05 which means preference
for mode of travel is different for different income groups.
We have cocluded from the means plot that generally people with income more than
15,00,000 prefer to travel by flights whereas people in the income group of 5 lacs-10
lacs and 10 lacs-15 prefer to travel by personal vehicle or trains

CONCLUSIONS

Hill stations were the most preferred destinations for travelling,
followed by sea beaches
Winters and summers were the most preferred season of travel
About half the people prefer to repeat their destinations
About three-fourths of the people visit online websites to chose, plan
and gather information about their destinations
The most preferred mode of travelling are trains, followed by
personal vehicles
The most preferred companions for travelling are family members
There is no relationship between gender and preferred destinations,
also same is true for marital status
For high income groups (HIG) it has been observed that spending
per trip is more than that of the low income groups, the hotel
preference is also more towards 3 star and 5 star hotels for the HIG
And for the LIG it is more toward lodges and guest houses and a
similar trend has been observed in the mode of travelling where HIG
prefer to travel by flights whereas LIG by trains

THANK YOU