SEMINAR ON INDUSTRY SECTORS

TRAVEL AND TOURISM

Dr. B S SURESH BABU

Former Director, Professor of Management
Community Institute of Management Studies
2nd Block, Jayanagar, Bengaluru.
 COVERAGE
1. Introduction
2. Impact of Tourism
3. Nature & Significance
4. Travel Requirements
5. India Tourism
6. Classification of Tourists
7. Market Segmentation in Tourism
8. Analysing tourist data
9. Tourism Marketing Mix
10.Travel Agencies
11.Travel Organisations
12.Tourism Statistics
 TOURISM MANAGEMENT

Tourism is a business/ activity that provides information,

transportation, accommodation and other services to
travellers
Tourism & Travel are not exactly the same
All Tourism involves Travel
All Travel is not Tourism
Travel is derived from the French Travail (hardship)
 About Tourism / Travel

• Travel in the young sort is a part of education and in the

elder a part of experience
-Francis Bacon
• Tourism is a form of education is a part of civilized
experience. Even heaven can be boring after a while
-Mark Twain
 Tourism

• Is an Industry without smoke

• Education without Class rooms

• Integration without legislation

• Diplomacy without formality

 Def- TOURISM

Tourism is sum of the phenomena & relationships arising

from the travel & stay of Non-residents, in so far as they do
not lead to permanent residence and are not connected
with any earning activity (Prof Hunziker and Kraf - adopted
by International association of scientific experts in Tourism)
 TOURISM MANAGEMENT

Tourism accounts for 9% of World Trade Bulk of

business is in Europe & North America only 12.5% of
this trade is shared by other regions of the World off late
other regions have started giving importance
 CONCEPT OF TOURISM

• Tourism denotes temporary, short term movement of people to

destination outside the place where they normally live & work
and their activities during their stay at these destinations
• Tourism is pleasure activity in which money earned in one’s
normal domicile is spent in the places visited
• Tourism is totality of relationship arising from travel & stay of
strangers
• Tourism is concerned with utilisation of leisure hours
• Tourism is a composite Industry Consisting of various
segments that produces wide range of Products & Services
 IMPACT OF TOURISM
• Tourism brings in new Products and Services
• It generates employment Direct & Indirect
• It helps in earning Foreign exchange
• It improves standard of living of local persons
• It helps in dispersion of development
• It brings in exchange of Culture
 …IMPACT OF TOURISM
• It acts as catalyst for developing Infrastructure
• It gives exposure of home/host country to
foreigners and invites FDI for improving economic
activities
• It helps to improve World Trade
• It brings in Good Will &friendly relations amongst
pupil of different Nations
 NEGATIVE IMPACT OF TOURISM

• Tourism has negative impact on Environment (Pollution

of Air, Water, due to noise, solid waste etc.)

• Increase in consumption of natural resources

• Due to deforestation, hunting & fishing activities

• Disturbance due to increase in transportation activities

 NATURE OF TOURISM

• It is a Service Product
• It is intangible
• It is an activity for pleasure
• Its users are supposed to move
• It requires good infrastructure
• Its users are heterogeneous
• It is perishable (If not used time there is opportunity loss)
• Returns from Tourism are Education & Experience
SIGNIFICANCE AND IMPACT OF TOURISM
Significance
• Tourism is an Important Contributor to GDP of many
countries ex: Netherlands, Malaysia
• Some countries depend on Tourism totally for their
economy
• UN conference on International Travel & Tourism was help
in ROME in 1963
• UN Gen Assembly designated 1967 as International
Tourist year
 TRAVEL REQUIREMENTS
Passport & VISA are requirements for travel

• PASSPORT: An official document issued by the Govt. to

its citizens giving Proof of holders Identity
& Nationality and permission to travel
abroad with its protection
 …TRAVEL REQUIREMENTS

• VISA: It is a permit stamped into a Passport, or a similar

document allowing the holder to enter or leave the
country which issues it

• Types of Visas:
Entry Visa
Tourist Visa
Business Visa
Employment/ Long term Visa (Max 5 years)
Collective landing permit (Group Tourist from abroad)
 …TRAVEL REQUIREMENTS

• Special Permits: Required for Border States

& two group of Islands

(Andaman & Lakshadweep)

TYPES OF MAPS

• Political Maps

• Physical Maps

• Tourist Maps

• Road Maps

• Railway Maps

• Air route Maps

 TOURISM IN INDIA

Contributing factors for Growth of Tourism in INDIA

• Higher Salaries
• Improved Standard of living
• Paid Holidays
• Ownership of Transport Vehicles
• Increase in National/ International Conferences
• Group travel/ Package Tours
 Gen Information

India is rated as 7th best holiday destination

- Conde Nast Readers Travel

Awards 2010

 
 INDIA AS TOURIST DESTINATION

India is a land of Dreams

• It is Exotic – Interestingly different, strange,colourful and

rich

• Mysterious – In comprehensible, hidden

• Full of Colour – Variety

• Pomp & Pageantry – Ceremonial grandeur, Splendid &

pomp
…INDIA AS TOURIST DESTINATION

The GOI & GOK should have

Dynamic

Pragmatic

Realistic

Policy to improve tourism

 TOURISTS ATTRACTIONS IN INDIA

• HISTORICAL Forts
Monuments
Palaces
Caves
• CULTURAL Art
Music
Dance
Language
Life Style
…TOURISTS ATTRACTIONS IN INDIA

• NATURE Hills
Forests
Rivers
Water Falls
Wild Life
• RELIGEOUS Temples
Churches
Mosques
• FAIRS
 …TOURISTS ATTRACTIONS IN INDIA

• FESTIVALS
Dassera (Mysore)
Onam (Kerala)
Kite festival (Ahmedbad)
Ganesh Chaturthi (Maharastra, Karnataka)
Durga pooja (W B)
Urs in Ajmer (Rajasthan)
Pongal (T N)
Sankaranthi (South, North)
Holi (All over India)
Deepavali (All over India)
Christsmas (All over India)
Idul Fiter (All over India)
Fathepur Sikri Rajasthan Agra Fort
Chitradurga Fort Red Fort
Charminar Shaking Minarets
Taj Mahal Gol Gumbaz
Mysore Palace Taj Lake Palace
Ellora Caves Ajantha Caves
Auli Gulmarg
Mussoorie Hills Shimla Hills
Ooty Hills Kodaicanal Hills
Gir Forest Sundarbans Forest
Nagarahole Forest Mudumalai Forest
Jim Corbett National Park Bandipur National Park
Miramar Beach Goa OM Beach Gokarna
Chitrakoot Waterfalls Dudhsagar Waterfalls
Gokak Waterfalls Jog Falls
Akshardham Temple Lotus Temple
SomanathapuraTemple DilwaraTemple
Badami Virupaksha Temple Hampi
Rameswaram Temple Meenakshi Temple
Pattadakal Temple Big Temple
Jama Masjid Dargah at Ajmer
St. Philomena’s Church- Mysore Church in Goa
 Def: TOURISTS

• Tourists are the voluntary, temporary travellers travelling

in the expectations of pleasure from the novelty and
change experienced on a relatively and non-recurrent
round trip

• Tourist is a person who makes a journey for the sake of

curiosity or fun of travelling
Tourists Non Tourists
Persons travelling for; Persons;
. Pleasure . Arriving to seek Employment
. Health & . Students in boarding
. Domestic reasons . Domiciled in a place & working
in neighboring place
. Passing through without stopping
 CLASSIFICATION OF TOURISTS -

According to SMITH
• Explorer: Look for discovery- Limited in Number
• Elite: Look for Special, tailored trips to exotic places
• Offbeat: Who desire to get away from usual routine life
• Unusual: Who look for peculiar objectives physical danger or
isolation
• Incipient Mass: Travelling alone or in small groups
• Mass: Those who avail general package Tours
• Charter: Those who avail package tours for relaxation
CLASSIFICATION OF TOURISTS –
According to Cohen

• Recreational: To relieve stress, tension

• Diversionary: To escape from boredom, routine
• Experiential: To see other societies
• Experimental: To experiment with own life style
• Existential: Who acquires new Spiritual Centre
 Another Classification

• Recreational Tourism: Sun- Sea- Sand, Sports, Sight seeing

• Cultural Tourism: Study Art, Music, Dance, life style
• Historical Tourism: Study of past, Visit to heritage locations
• Ethnic Tourism: Visit to country of origin
• Environmental Tourism: Visit places of ecological importance
• Adventure Tourism: Trekking, Rock Climbing, Mountaineering
• Pilgrimage Tourist: Visit for medical purposes
• Health Tourism: Visit for Medical purposes
 MARKET SEGMENTATION IN TOURISM

• Market Segmentation in Tourism can be made on the

following basis
…MARKET SEGMENTATION IN TOURISM
…MARKET SEGMENTATION IN TOURISM
…MARKET SEGMENTATION IN TOURISM
 ANALYSIS
On Basis of Interest
Market Characteristics Holiday Business Common Interest
Tourist Tourist Tourist

Destination      
 
Length of stay
 
Mode of Transport
 
Accommodation
 
Requirement of Entertainment
 
Price Sensitivity
 
Role of Advertisements
 
Importance of Tour Package
 COMPONENTS OF TOURISM

• LEIPER’S MODEL
…COMPONENTS OF TOURISM
TOURISM PRODUCT
…TOURISM PRODUCT
…TOURISM PRODUCT
…TOURISM PRODUCT
PRICE
PROMOTION
…PROMOTION
PLACE
 ROLE OF TRAVEL AGENCIES

• First Travel Agency was setup by Thomas Cook in 1841

• American Express Company (AMEXO) USA was set up

in 1841

• Thomas Cook invented Hotel Coupon in 1867

• American Express invented Travellers cheque in 1891

 TYPES OF TRAVEL AGENT

Retail Travel Agent

• Types of Travel Agent

Modern Travel Agency

 RETAIL TRAVEL AGENT

• These are placed in Convenient Locations

• Intending Tourists seek information on Travel Plans
• They provide services:
 Obtaining Travellers Cheques
 Foreign Exchange
 Passport & Visa
• They get commission on Sales & Services
 Types of Retail Travel Agents

• Business House Agency- Meets needs of commercial &

Industrial firms. Located near their clients. Have high expense
on office & staff

• City Centre Agents- Located near shopping centres. Need high

turnover to justify cost

• Country Town Agency- Have mix of Business & Holiday Traffic

• Sub Urban Agency- Sell tours on seasonal pattern

FUNCTIONS OF MODERN TRAVEL AGENCY
• Travel Information
• Preparation of Itineraries. i.e. Plan for most Convenient /
Economic travel
Transport
• Liaison with service providers Accommodation
Sight Seeing
• Ticketing: Computerised Reservation
• Provision of foreign currencies
• Insurance (Personal Accident, baggage etc.)
 TYPES OF TOURS
Inclusive Tour by Charter (ITC)
(Includes transport, accommodation and travel
by chartered flight)

Types of Tours

Inclusive Tour on Schedule Services (ITX)

(Includes transport, accommodation travel by scheduled
service. Travel Agents are given discounted price on
scheduled flights to fill vacant seats)
 TOUR OPERATORS
• A person / institution who bears responsibility of delivering the
services
• A Tour operator is one who buys individual elements of travel
product on his own account and combines them in such a way
that he is selling a package of travel to his clients
Ex: Orange Travels
Asian Travels
Southern Travels
• A tour operator offers different programmes / plans
…TOUR OPERATORS

FUNCTIONS
• Plan Tour Itineraries

• Form it as a programme / Plan

• Organise Transport

• Select & arrange Accommodation

• Organise local visits

 TRAVEL ORGANISATIONS
These are the associations of Travel Agents
ASTA
The American Society of Travel Agents
• Established in New York in 1931
• It provides a public forum of Travel Agents
• It is established for
 Advancement of Travel Agency business
 Promotion of ethical practices
• It permits Travel agents from all Countries to be its members
• It has over 16000 members from over 120 countries
 …TRAVEL ORGANISATIONS
UFTAA
Universal Federation of Travel Agents Association

• It was founded in Rome in 1966

• It has membership from over 75 countries

• Its purpose is to negotiate with various branches of Travel

Industry on behalf of Travel Agents

• It helps the members with materials & Technical advice

 …TRAVEL ORGANISATIONS
IATA
International Air Transport Association
• Established in 1945 HQ at Montreal Canada
• Over 100 Airlines of the world are its Members
• IATA regulates price of International Air tickets in different
parts of world based on Air Traffic Volumes / Density
• IATA agents are considered reliable. They are entitled for
commission by International Airlines
• Most IATA approved Travel Agents are members of TAAI
(Travel Agents Association of India with HQ at Mumbai)
 …TRAVEL ORGANISATIONS
SITA
Students International Travel Association
• It was formed by Jack Dangler in 1933
• An office was setup in 1936 in New York
• SITA world Travels Inc- Travel business was set up
• SITA was converted into Indian Put Ltd Co in 1963
• SITA INDIA is a member of WATA (World
Association of Travel Agencies)
 SEVEN WONDERS OF THE WORLD
Ancient 2019
The Great Pyramid of Giza–Egypt Great Wall of China
Hanging Gardens of Babylon–Iraq Christ the Redeemer Statue-Brazil
(rio de janeiro)
Colossus of Rhodes – Greece Machu Picchu-Peru
Temple of Artemis–Turkey Chichen itza-Mexico
Lighthouse of Alexandria–Egypt Roman Colosseum-Rome
Statue of Zeus at Olympia–Greece Taj Mahal-India
Mausoleum at Halicarnassus–Turkey Petra-Jordan
The Great Wall of China
Christ the Redeemer Statue- Brazil Macchu Picchu- Peru
Chichen Itza- Mexico Roman Colosseum- Rome
Petra- Jordan Taj Mahal- India
 TOURISM STATISTICS
(Updated in Aug 2019)
Table 1: Inbound Tourism- Arrivals
Table 3: Share of India in International Tourist Arrivals
Table 5: Top 10 Source Countries for Foreign Tourist Arrivals
Table 6: Share of major Countries in the World and India
in International Tourist Arrivals
Table 9: Foreign Exchange earnings(estimated)
Table 15: Number of Indian Nationals Departures
Table 18: Top 10 States/UTs- Number of Domestic Tourist visits
Table 19: Number of Foreign Tourists visits to all states/UTs
Table 21: Number of approved Hotels
Table 22: Number of Tourist Operators
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Thank You