Tourism in India

Service Sector : Case Study

 Tourism growth in India
• According to World Tourism Organization estimates, India will
lead in South Asia with 8.9 million arrivals by 2020

• India is poised to emerge as the 2nd fastest growing (8.8%)

tourism economy in the world over 2005-14 according to the
World Travel & Tourism

• There has been a growth of more than 13% in foreign tourist

arrivals at 3.9 million during 2005, up from 3.4 million foreign
tourists who visited India during previous year.

• Foreign exchange earnings from foreign tourists were up by

more than 20% at $5,730.86 million in 2005, up from $4,769
million earned the previous year.
 Company( SOTC, MTDC,ITDC)

Providers:
Travel Agents, Customers
Hoteliers etc
 8P’s of Tourism Industry
• Product
• Price Mix
• Promotion Mix
• Place Mix
• People
• Process Mix
• Physical Evidence
• Productivity and Quality
 Product
1. Core Product
2. Basic Product
3. Expected Product
4. Augmented Product
5. Potential Product
 Price mix
• Price in line with quality of service
• Pricing decisions are influenced by internal
factors like pricing policy of the company, and
external factors like the destination itself
• discounts for cash payments, seasonal discounts,
trade discounts etc.
• while offering the discounts, it is not to be
forgotten that it may also create image problem
since some of the value sensitive tourists may
doubt the quality
 Promotion Mix
• Advertising: Aimed to create awareness of the travel offers
available on a resort and its attractions to influence their business
decisions. Eg: !ncredible India, Mahindra Holidays.
• Publicity: Projecting the positive image of tourist organizations
since the prospects trust on the news items publicized by the media
people. Eg. Atithi Devo Bhava ad
• Sales promotions: Sales promotions is designed to appeal
particularly to those customers who are price-sensitive. Eg:
Packaged Offers By Raj Tours, Cox&Kings.
• Word-of-mouth Promotion: Promotion is due to high credibility of
the channel, especially in the eyes of the potential tourists.
• Personal selling:
• Telemarketing:
• Exhibitions:
 Place Mix
• Most tour operators sell their services through
travel agents
• For example, Thomas Cook has its own
branches situated throughout the country so
they are easily accessible
• Indian Railways Online ticket booking portal.
 People
• PEOPLE - in service marketing includes
– EMPLOYEES
– OTHER CUSTOMERS
• Industry cannot work efficiently if the travel
agents, tour operators and travel guides lack
world class professional excellence
• Employee orientation requires due weightage
to efficiency generation, value-orientation and
perfection
Process
 Physical Evidence
• It is a very important factor for the travel and tourism industry. This
marketing p is important in 2 distinct ways:
– as the environment in which the sales takes place
– the environment where the product is consumed

• Example of the first case:

When the purchasing of the product is taking place, however the
customer cannot be sure whether they will enjoy the product or not. In
the mean time their expectations and emotions are influenced by
factors like layout of the room, the furniture, noise level, temperature,
lights and other factors like the brochure of the company. In case of
customers who buy electronically the appearance of the website is the
physical evidence.
• Examples of the second case :
• In the travel industry where the product is
being experienced s particularly important in
securing repeat business thus extensive
facilities that prove to be physical evidence
are provided to lure and woo the customer
• The tangibles include flat beds in business
class, Wi-Fi connection in hotels, customized
meals on board, tele checking 8hrs booking in
hotels, hotels providing laptops on request,
internet access as complimentary for the
corporate packages.
 RATER
• It a well known concept of 5 quality
dimensions
• R – Reliability
• A – Assurance
• T – Tangibles
• E – Empathy
• R – Responsiveness
• RELIABILITY - Suchna – Information
The way and the kind of information, which is provided,
by any Travel and Tourism organization to its customers
is the parameter of judging the Reliability of that
Organization
• ASSURANCE - Suraksha - Safety
a. A safe travel is the top priority of any traveler
b. Thus it is very important for Travel and Tourism
organization to consider the safety of the tour package
• TANGIBLES - Swagat – Suvidha – Safai
These are the backstage elements, which help in a
great way for the customers to evaluate the service
• EMPHATY - Sahyog – Cooperation
- Co-operation i.e. listen to the customers understand
them and co-operate with them to come down to a
Solution
-This factor creates a very positive impression in the
minds of the customers and helps the service to get a
tag of its excellent service quality
• RESPONSIVENESS-Sanrachna – Infrastructure
We relate infrastructure to responsiveness is because
flexibility in the infrastructure of Travel and Tourism
organization affects the service responsiveness