Tourism Proj Naveen FINAL

7/30/2019 Tourism Proj Naveen FINAL

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Seminar on CONTEMPRORY MANAGEMENTISSUE

Topic:

Marketing mix of Indian travel and tourism

industry

InternationalSchool

OfInformatics And

Management


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SUBMITTED BY:- SUPERVISOR:-

NAVEEN KUMAR GARG MRS.SUMEDHA

ISIM-JAIPUR SHANDILYA

MBA/O8/1491

SEM-II

CONTENTS

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Serial no. particulars Page no.

1 ACKNOLEDGEMENT 3

2 INTRODUCTION 43 TOURISM: PEST ANALYSIS 5

4 TOURISM:SWOT ANALYSIS 7

5 COMPOSITION OF TOURISM INDUSTRY:THE A I M PLAN

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6 BOTTLENECKS OF TOURISM INDUSTRY 10

7 CLASSIFICATION OF SERVICE 118 7 PS OF TORISM MARKETING 12

9 SERVICES AS A GEME OF PROMICES:THESERVICE TRIANGLE

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10 TOTAL PRODUCT CONCEPT 22

11 AIRLINE INDUSTRY: SWOT ANALYSIS 29

12JET AIRWAYS:SERVICE TRIANGLE

ANALYSIS 3113 TOUR OPERATORS: PRODUCTS 36

14 RAJ TRAVELS:SERVICE TRIANGLEANALYSIS

37

15 HOTEL INDUSTRY:SWOT ANALYSIS 40

16 HOTEL INDUSTRY:PRODUCTS ANDCUSTOMERS

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17 LE MERIDIEN:SERVICE TRIANGLEANALYSIS

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18 CONCLUSION 45

19 BIBLIOGRAPHY 46

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ACKNOWLEDGEMENT

I take this opportunity to thank my guide Mrs. Sumedha

shandilya Madam who apart from being a constant source

of inspiration and encouragement also provided me with

her timely help and scholarly ideas in giving final shape to

this report.

I also thank the college library and Computer lab of

I.S.I.M. which provided me many books, round the clock

internet facility to satisfy my thirst of knowledge related to

my subject matter.

I also express my heartily gratitude to all my friends for

their kind support. It was due to their valuable guidance

and support that helped me to complete the report with a lot

of learning.

(NAVEEN GARG)

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INTRODUCTION:

TOURISM INDUSTRY - A Glimpse

The tourism and recreation industry is increasingly recognized as an important economicenvironmental and social force, which can bring both benefit and adversity. A key element of

successful tourism industry is the ability to recognize and deal with change across a wide rang

of behavioral and technological factors and the way they interact.

THE NEW TOURISMAND LEISURE ENVIRONMENT

TOURISM - A STRATEGIC ANANLYSIS

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TURNING AWAY

Old travel patterns

Established destinationsOld products

Fragmented tourism

industry

Passive consumers

Mass markets

Mass marketing

TURNING AWAY

Old travel patterns

Established destinationsOld products

Fragmented tourism

industry

Passive consumers

Mass markets

Mass marketing

TURNING TOWARDS

New travel patterns

Emerging destinationsNew products

Economic development

tool

Involved participants

Speciality markets

Direct customer

communications

TURNING TOWARDS

New travel patterns

Emerging destinationsNew products

Economic development

tool

Involved participants

Speciality markets

Direct customer

communications

India as a Product

India has vast bounties of nature -

Majestic mountains, beautiful beaches, wonderful wildlife and

enchanting bird sanctuaries.

It has great treasures of art, architecture and philosophical thoughtIt has 572 nature endowed areas

89 national parks

483 wildlife sanctuaries

3606 protected monuments


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PEST ANALYSIS

POLITICAL/LEGAL

The Indian tourism industry is built on the backbone of Government supportand the industry cannot sustain itself without it. The various archaeological

sites and the places of historical importance, the roads and the railways are

all in the hands of the Government.

All the support services like the hotel industry; the airlines industry and the

tourist operators to name some are heavily dependent on the support and the

cooperation of the Government. The major reason as to why the tourist visits

India is for the vast and rich heritage that the country has.

That is under the control of the Government, through the Archaeological

Survey of India. Any policy change that comes into force can have dramatic

effect on the way the industry players perform.

For example, the Government charges a high rates of taxes on the

luxury and the star category hotels and this has always been a cause of

disagreement between the hotel associations and the Government.

ECONOMICThe tourism industry not unlike the other industries grows with the increase

in the spending of the people. The more the people spend the more the

industry grows. The spending power of the people has been increasing in the

country and all over the world.

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Since India is concentrating on the international tourists, the large increase

in the spending power in most developed countries has left a large amount of

idle cash in their hands. This has lead to the tourism boom the world over

and India has been no exception.

SOCIALTourism was always looked upon as something that always leads to the

destruction of the social fabric of a place. The more the amount of outside

people coming into a place, the more the risk of that places loosing itsidentity. Those places that have been able to strike a balance between their

own culture and the demands of the international tourist have profited

handsomely. The examples are Kerala and Rajasthan.

People are now adopting themselves to the fact that tourism pays and it canbe a major source of income for them. Even people themselves have started

travelling. In addition, tourism as a form of recreation has really caught on.

People are willing to travel to a place that is out of way and exotic. When

previously travelling on a holiday meant going to a hill stations and beach,

now people are willing to go in for adventure tourism as well as visit places

that cannot be really be called hospitable.

TECHNOLOGICALTechnology although does not seem to be a major influence at the first

glance, still it plays a major part in the promotion of a place. Better

communication facilities are one of the first prerequisites for growth in the

inflow of tourists.

This has been made possible with technology. Better technology in the field

of communication with cheaper costs have seen many remote and

inaccessible areas of the country get connected to the rest of the world. This

connectivity has made these places visible to the world. Better

communication means access to media. Similarly better transportation

facilities have lead to a dramatic increase in the number of tourists visitingany particular place. The presence of an airport and the availability of

frequent flights are a great convenience to any traveller.

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TOURISM INDUSTRY - SWOT ANALYSIS

STRENGTHS

India's geographical location.

A culmination of deserts,

forests, mountains, and

beaches.

Diversity of culture i.e. a

blend of various civilizations

and their traditions. A wealth of archeological sites

and historical monuments.

WEAKNESSES

Lack of adequate

infrastructure.

A xenophobic attitude among

certain sections of people.

No proper marketing of India's

tourism abroad. Foreigners

still think of India as a land ofsnake charmers.

OPPORTUNITIES

More proactive role from the

government of India in terms

of framing policies. Allowing entry of more

multinational companies into

the country giving us a global

perspective.

Growth of domestic tourism.

THREATS

Economic conditions and

political turmoil in other

countries affects tourism. Aggressive strategies adopted

by other countries like

Australia, Singapore in

promoting tourism.

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COMPOSITION OF TOURISM INDUSTRY

Major industries that support tourism industry are depicted in the

diagram below. These facilities decide the status of a place in a

tourist's portfolio. They on one hand attract tourists to a particular

destination and on the other act as a major demotivating factor ifthey are unable to fulfill the expectations of the visitors.

A three-point plan may be considered to realize the full potential of

tourism. In a word the strategy for effectively tackling the cause of

tourism is AIM.

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HOTELSHOTELS

TRAVEL AGENTS & TOUR

OPERATORS

TRAVEL AGENTS & TOUROPERATORS

AIRLINEAIRLINE

DESTINATIONSDESTINATIONSCOMPOSITIONCOMPOSITION


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'A'- 'AWARENESS'

Within the community there must be awareness of the potential of tourism and its

role as an instrument for promoting economic development and social change.

The tourist must also have the satisfaction of being welcomed and getting

satisfaction on all points of popular contact in the host country.

'I' CREATING 'INFRASTRUCTURE'

The industry's own perception and suggestions must be sharply focused -

highlighting the special needs of the international and domestic traveler by

providing adequate transport, accommodation and other backup facilities.

'M' 'MARKETING'

Apart from creating awareness at home it is required to create awareness abroad

i.e. what India was like (its 5000 year old heritage), what India is like

(liberalization and globalization) and what India will be like in the future

(envision - preferred destination). We should concentrate on research and identify

source markets. The bottom line is to work out a coordinated action plan for all

the three components ofAIM.


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THE BOTTLENECKS

GOVERNMENT

The government is the most important player in this industry and all theother players have to follow the lead taken by it. However, the actions of

the government have not been proactive. Rather it has been late in rising

to the opportunity that the tourism industry offers. There are not enough

incentives been offered to the other players like Hotels and the travel

agencies. The government should be taking the lead and attracting the

industry to places that have vast tourist potential but have still not fully

developed. There are various restrictions in areas like Sikkim and the

Northeast that should be relaxed so that more people can visit those

places.

POORINFRASTRUCTUREDelayed or absence of connectivity to different locations, lack of proper

accommodation facilities, bad roads and no communication facilities are

some of the factors that are stopping people from visiting many places.

Unless the infrastructure is properly developed, a large majority of

tourists will give the country a skip.

APPREHENSIONSABOUTTHELAWANDORDERSITUATIONSThe lack of security that is faced by a lot of tourist is also a major causefor concern. There have been many instances where tourist have been

physically assaulted, robbed and sexually harassed. Any such incident

reflects badly on the country and creates a negative image

MISCONCEPTIONABOUTTHE COUNTRYThe image of the country has taken a long time for the change from the

old image of the land of snake charmers. There are many places where

the image of India is one of poverty, superstition, and diseases. One of

the main reasons why tourist do not visit the country has been the fear of

been infected by some exotic disease. The case of Plague in Surat in 1994

led to a decrease of 36% in arrival of foreign tourists in India All these

misconceptions unless addresses immediately will create a problem for

the growth of the industry.

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CLASSIFICATION OF SERVICE

END-USER:

Travel and tourism is a Consumer based industry. In some cases, whenthere is a tie-up between travel operators & accommodation industry the end

user in this case is also a consumer, the travel agent acts as an intermediary.

SERVICE PRODUCT CONTINUM:

Travel & tourism consists of

both tangible & intangible factors. Tangible being the

destination & intangible factors like experience, feel etc.,

hence in the service product continuum the travel & tourism comes in

between the credence & search qualities i.e. experience qualities.

In Travel & tourism, the destination is the product which is tangible &efforts made by tour operators in offering the tour package i.e.

accommodation, entertainment, is the intangible element.

Both the elements are equally important in travel & tourism.

PEOPLE BASED SERVICE:

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SEARCH

QUALITIES

EXPERIENCE

QUALITIES

CREDENCE

QUALITIES

Most GoodsMost Services

TRAVEL & TOUR


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High contact: In travel & tourism the people or consumers are in directcontact with the people providing the service. The work starting from

destination enquiry, selection, booking, ticketing, etc. everything has a

human touch to it. Even now people providing such service sit with their

customer to make them decide on their spots.This industry is progressing towards medium contact as now-a-days, some

jobs such as ticketing & hotel reservations are done through internet & using

modern technologies.

EXPERTISE:

Professionalised: a service is said to be professional if the servicerequires a professional procedure & established code of conduct &

affiliation with government body.

Travel & tourism ministry of travel & tourism.

PROFIT ORIENTED SERVICE:

Commercial service.Travel & tourism is profit-oriented service. It has commercial transactions as

it is profit earning industry and not social working.

TOURISM MARKETING: THE SEVEN PS

1. PRODUCT:

2. PRICE

3. PLACE

4. PROMOTION

5. PROCESS

6. PEOPLE

7. PACKAGING

1. PRODUCT:13


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The tourism product which is mainly destination (tangible) can only be

experienced (intangible). The panoramic view of the location (destination),

travel to the destination, the accommodation & facility as well as

entertainment at the destination all forms the tourism product. Thus tourism

is a composite product combination of attraction, facilities & transportation.

Each of these components has it is own significance in the product mix & in

absence of even one single component, the product mix is incomplete.

Attraction of the destination, include:

Natural site:Beach resorts, hill stations.

Places of historical interest: Monuments, archeological sites andmuseums.

Events:Trade fair, musical festival, games, etc.

Cultural attractions: History & folklore, theatre, religion, arts,etc.

The facilities compliment attraction. These make it possible for the tourist to

stay & enjoy the attraction.

Accommodation: Hotel, hostel, campsites.

Food: Restaurants, cafes, bars.

Local transport: Taxis, coaches.

Recreational facilities:Entertainment, sport activity, shopping

facilities.

Accessibility is the means by which the tourists arrive at the location as

without the transportation facility the attraction is of no use.

Infrastructure: Roads, rail, airport, etc.

Equipment: Speed & size of the vehicle.

With increasing number of destination, travel methods & choice of

accommodation, the firm offers these products in the form of package tours

to facilitate consumers to choose from the combinations. These packagetours cater to varying tastes, economy, attitudes & the need for exclusive

service. The idea that service products are intangible is an important one, but

increasingly firms are trying to make their offering more tangible, and

thereby increasing their recognition amongst the target-buying group.

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Tangible gifts such as toiletries, flight bags, even bath robes bearing the

companies logo or brand name.

Eg. Lufthansa & jet airways provide customers with the earphones or

headphones, toys, magazines etc. which helps in giving a tangible aspect to

service provided.

Branding plays a very important role in tourism marketing. Hotel chains,

airlines, & travel operators in particular employ tremendous efforts to ensure

that their name is widely recognized & synonymous with quality, value etc.

Product positioning helps in identifying the images & perceptions of the

tourist products as well as tourists organizations, which match the needs of

the tourist customers.

2. PRICING:

Pricing of the tourist product is a complex matter because of its composite

nature. Geographical location of the destination effects pricing decisions.

Other factors like seasonality & varying demand cannot be overruled.

The objective of pricing of any firm is to fetch a target market share, to

prevent competition, and to take care of the price elasticity of demand.

Prices in travel & tourism are operated in 2-levels. First level contributing to

marketing strategy, which concerns with the product positioning, value formoney, etc. the second level corresponds to the marketing operation or

tactics where the prices are manipulated to match current demand and

competition.

Other methods of setting up pricing in travel & tourism: Cost based pricing: for a business or service in the long run, the

average prices charged must be sufficient to cover fixed cost &

variable costs and also assure a reasonable return on investment.

Demand based pricing: the strength of demand for a product or whatthe market will bear is evident in the pricing behavior of many leisure

industries. Moreover, demand based pricing will suit, as tourism is

greatly affected by seasonal characteristics. At peak times manyleisure facilities have excess demand, tourism firms use high price as

a tactic.

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Competition based pricing: it sets the upper limit within which the

prices must be set. Prices outside this limit sets off an elastic demand

reaction as consumer switch to competing products. In case of new

tourism product, if the strategic objective is market penetration, then

prices must be set very competitive to attract more potential

customers. In the case of niche marketing the prices should portray

this aspect complimented with additional benefits of service offer.

3. PLACE:

Infrastructural facilities, transportation, communication are important for

the development of a tourist centre.

The major decision that the tourism marketer takes regarding distributionis relating to the channel choice and channel members.

The two major functions performed by the distribution system in tourism

marketing are:

To extend the number of points of sale or access away from the

location at which services are performed or delivered.

To facilitate the purchase of service in advance.

The middleman may be a tour operator, who is the wholesalers, who buy

tourism products in bulk and make them available to travel agents who are

retailers. The range of tourist products which are bought by the tour

operators are airline seats, hotel accommodation, bus for local sight seeing,

etc. They may also sell directly to customers.

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Following diagram shows the channel of distribution in tourism industry

-

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Tourism product

Accommodation

Tour operator

Travel agent

CUSTOMER

TransportationAttraction


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4. PROMOTION:

Creation of awareness is an important factor in the formulation of

marketing mix for the tourism industry. The aim of promotion fall into

three main categories:

To inform

To remind and

To persuade

It will always be necessary to inform prospective customers about new

products and services, new uses, price changes, information to build

consumer confidence and to reduce fears, full descriptions of service

offerings, image building (of destinations) etc.

Some of the important aspects of advertising are-

Advertising and sales promotion- these activities are very effective

when supplemented by publicity and personal selling. Advertising

messages range from subtly attractive visual messages and symbols

designed to appeal and stimulate travel desires and needs, to simple

sales announcements drawing attention to specific product offers.

Most travel and tourism advertising is aimed at consumer or the traveltrade aiming specifically on a tourist product but large organizations

like airlines and hotel groups also buy media space to communicate

the name and image of the organization as a whole.

Public relations and publicity- This include regular articles and

photographs of the tour attraction, use of TV, radio holiday program

and travel journalists to promote editorial comments.

Word of mouth- research shows that about 80% of the tourists visited

different places on the persuasion of their friends and relatives and

also their own judgement. This indicates word-of-mouth promotion is

an important tool in tourism marketing.

Incentives - Incentives to agents, customers and sales force are also

given to induce immediate response like-price cuts, discount vouchers

to use certain facilities in the location, free gifts, price draws etc.

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Brochures- these are provided by the tour operators to stimulate

customers and motivate them to buy. They are used to demonstrate in

pictures and words the image and positioning of the product and

organizations.

New concept in promotion-PIPELINE PROMOTION

PHYSICAL EVIDENCE

The tourist spot, which is an experience for the customer, is tangibilised with

the help of tangible items like-

Comfortable seats while travelling, ambience, layout, and design of the

resort, natural service-scape etc.

The sign posts that indicate directions, route maps, information regarding

rules and regulations of the tourist spot and the sign regarding the public

utilities like toilets, telephone booth.

Printed matter such as brochures also play a important role in the

development of tourism. As the product in tourism is intangible, there is a

need to describe fully the product, which is done by providing an

elaborate brochure which slows how different elements of the program

are carefully planned to include all necessary information to make a

holiday comfortable.

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Hotel owners and airlines need to promote their services to tour operators

who are in effect wholesalers of travel services and products as well as

promoting their service to end users and independent travellers. Similarly

tour operators will want to ensure that travel agents sell their services in apositive manner and will therefore want to advertise to the agents the

benefits of selling their tours whilst advertising a totally different set of

benefits to the end user.


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The brochure is a product at the point of purchase; it establishes

expectation of quality value for money, product image and status, which

must be matched when the product is delivered.

5. PROCESS:

The operation process of the tourism firm depends on the size of the tourism

firm. The sequential steps involved in the delivery of the tourist product are:

Provision of travel information: the information regarding the travel is

provided at a convenient location where the potential tourist seeksclarifications about his proposed tour.

Preparation of itineraries: it is a composition of series of operations

that are required to plan a tour.

Liaison with providers of services: before any form of travel is sold

over the counter to a customer, contracts have to be entered with the

providers of various services including transportation companies, hotel

accommodation, coaches for local sight-seeing etc.

Planning and costing tours: once the contracts and arrangement are

entered into then comes the task of planning and costing the tour, this

will depend on the tour selected as well as individual requirements.

Ticketing: the computerized reservation system has in recent years

revolutionized the reservation system for both air & rail travel.

Provision of foreign currency & insurance: in case of foreign travel

the final task is to provide foreign currency as well as insurance.

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6. PEOPLE:

Tourism is highly people oriented industry. People here serve as both input

as well as output.

As input, people work as drivers, hotel managers, waiters, travel agents

etc.

People after visiting destinations become output (tourists) for the

industry. Input people are most important from marketing point of view.

Output people (tourists) being from heterogeneous socioeconomic,

religious and cultural backgrounds have diverse needs, wants, tastes and

attitudes. It depends on the dedication of the service people (input) how

efficiently they can cater to the needs of tourists.

Examples of input people are-

The airline and transportation crews interact with the customers

while travelling.

The resort or hotel representatives cater to the needs of the tourist

when they reach the destination.

The tourist guides who interact with the tourist while visiting

various places.

These contact personnel must be trained well on interpersonal skills as

well as product knowledge.

A satisfied tourist is the most powerful marketing tool. Hence, at the outset

while planning marketing efforts the organization must ensure that it has

well trained and qualified service people.

7. PACKAGING:

Packaging plays a very important role in attracting the attention the

prospective customers towards the service in Travel and Tourism. The

packaging includes all the elements offered in a tour package by the tour

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operator. It includes the kind of destination chosen, booking of the

tickets, mode of transport, company, the Hotel, Accommodation, etc.

Example- the tour packages designed by Thomas Cookare one of the

exclusive packages offered amongst other tour operators because of the

above mentioned attributes. Hence people prefer their packages to a great

extent and remain loyal to it.

SERVICES: A GAME OF PROMISES

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External marketingMaking promisesInternal marketing

Enabling promises

Providers Customers

Organization

InteractivemarketingKeeping promises


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THE DESTINATION PRODUCT

Total Product Concept

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Core product

Formal

Augmented

Future


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Core productThe basic

benefit

An experience providing an insight into a different culture,

tradition and lifestyle.

Formal The

expected

Comfort during the tour; instruction manual provided for

better understanding of the places of visit; brand name eg.

Kerala known as Gods own country; quality assurance

and TQM eg. Kerala has quality assurance and TQM

implemented for all its products (backwater life and habitats

and traditional houseboats), services and facilities. This

implies it has complete cleanliness in its surroundings and

eco-tourism is also assured.

Augmented

In addition

to the

expected

benefit

Providing the tourist with guide cassettes and also an

interpreter to increase interactivity and understanding. Eg

tours to historical and archeological sites requires elucidation,

which can be ensured through the mentioned means; serving

multi-purpose tourism, i.e. forming a chain of destination,circuit theme by cuddling different states. Eg 1 educational

circuit, business circuit, pilgrimage circuit, beach circuit

Kerala backwaters, Goa , TamilNadu. Eg 2 - Rendezvous

with Maharashtra and the Mughals.

Future Beyond the

usual,

serendipity

(pleasant

surprise)

An experience through which a tourist gets physically

invigorated, mentally rejuvenated, culturally enriched and

spiritually elevated. Eg The New Rajasthan Gift: Palace

On Air. British Airways will convert its 70-seater Boeing

into a flying palace with all possible luxuries flavoured with

the Rajasthani ambience. Tourists (who will be treated as

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Kings) will tour Rajasthan in Limousines (one for each) and

will have personal assistants Darbaris to take care of every

need.

Services: A Game of Promises

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India a land of ancieculture, heritage an

civilization with majest

mountains, beautiful beache

wonderful wildlif

enchanting bird sanctuari

and satiated with gretreasures of art, architectu

and philosophical thought.

External marketing:The Tourism Department of India makes promises tothe tourists about the varied destination products

benefits and experiences using different media

internet, travel & tour shows, advertisements in

newspapers, road shows, etc. This creates awareness

for the tourist (domestic & foreign) and he is inveigled

by it.

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External marketingMaking promisesInternal marketing

Enabling promises

States Tourist

TourismDepartment of

India

InteractivemarketingKeeping promises

Kerala Gods own countryOnly Indian state to win award in PATA (Pacific Asia

Travel Association)

Tourist attractions beaches, hill stations, forests,

waterfalls, plantations, tropical islands, ayurvedic health

centres and historic monuments.

Standardization & quality assurance is stressed and TQM

implemented for all products, services and facilities.


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Tourists: The customers are the tourists (domestic as well as foreign) who tourvarious destinations with different purpose

Internal marketing:

The Tourism Department has to consider many factors to ensure that

individual states (providers) are able to keep the promises (meet the

expectations of tourist) made by them. This means the Tourism Department

enables promises by performing different activities and committing plans.

To meet the promises, it is necessary for the GOI to enable the Tourism

Department by the following facilities:

Infrastructure: The infrastructural problems relating to water,electricity, road, clean accommodation, healthy and pleasant

environment near the tourists sites should be completely eliminated.

Taxes: The tax structure should be reformed. India is the highest

taxed country for tourist. The rates of luxury tax, expenditure tax,

leisure tax, service tax should be slashed drastically. At many places

there are as many as 23 taxes levied on a hotel. The taxes make the

destinations expensive and uncompetitive in the long run.

Regulations: Specific regulations should be passed to avoid cities

being encroached, water bodies polluted and monuments being

surrounded by slums, stray cattle, beggars and touts.

Disjointed approach: There is lack of co-operation between

ministries tourism, civil aviation, external affairs, culture and urban

development. Effective linkages have to established between them

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Ajanta Ellora Cave Complex

2 kilometres from the caves, an

elegant tourist centre, with modern

amenities and proper parking

facilities is being constructed. A

shopping centre and an interpretation-

cum-information centre is also

coming up.

The positive steps taken towards tourism development are

The Union Budget for tourism has doubled its investment from Rs.

100 crores to Rs. 200 crores.

The Government has also approved a raise in promotional expenditure To serve multi purpose tourism, every state is cuddled together to

form a chain of destination theme.

Infrastructure up gradation

Formation of Trade Promotion Council

Interactivity marketing:

Finally, the individual states have to keep the promises made by the

Department of Tourism. This is the place where all aspects of quality or

the lack of it is perceived by the tourist.

The entire tour could be termed as futile even if little discomfort is

experienced by the tourist during transportation, accommodation or sight

seeing. The providers (state authorities for tourism) have to take every

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care to avoid such occurrence. They are assuring this by improvising on the

following facilities:

Efficient transport system for tourist when they are for a tour within

the state

High quality hotels with first-rate service provided by them. Professional guides placed at educational sites historical places,

archeological sites, art galleries, etc

AIRLINE INDUSTRY

Airports are the primary infrastructure facility that a country has to offer to

the international tourists. It would be surprising to note that renowned

tourists destinations like Jaipur and Goa do not have an international airport.

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Foreign guests, who constitute more than 60% of the tourists destined for

these cities, currently have to travel via Mumbai, unless they are ready to

charter a flight. This makes things cumbersome and time consuming, thus

discouraging many time conscious tourists from visiting these places.

Similar is the case of cities like Agra, Udaipur and Varanasi where foreign

tourists account for approximately 50% of the total tourists arrival.

SWOT ANALYSIS

Core product The basic benefitTransportation ,serving

food drinks ,staff

STRENGTH

Airline is the most preferred

mode of transportation by the

foreign tourists as the

convenience provided by theairlines is higher.

The savings in time that this

mode of transport offers is

immense.

WEAKNESSES

Inefficiency of the domestic

airlines- there are number of

instances of flight being cancelled

or delayed. Lack of basic facilities at the

airport.

Government does not allow the

capacity of existing airports to

increase private and foreign

operators are not given clearances

to operate in the country.

OPPORTUNITIES

As the tourism industry expands

the airline industry is also in for a

boom.

Development and up gradation of

the present airports

India's geographic location makes

it an ideal location to serve as a

link between the East and the

West.

THREATS

Domestic airlines (Air India and

Indian Airlines) face major

competition from other

transnational airlines.

Formal The expected Cleanliness, timely

flights, polite and

courteous behavior, safety

Augmented In addition to the

expected benefit

Comfortable seats,

smiling employees, on par

with international

standards

Future Beyond the usual,

serendipity (pleasant

surprise)

Welcome flowers,

managers word of thanks,

entertainment shows to

delight and surprise the

travelers on the flight

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AIRLINE PRODUCTS

Services: A Game of Promises

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Mohit Sen, 28, a textile trader, has been a frequent flier on Jet Airways,

ever since he took over the reins of the family business five years ago. He

calls it a smarter alternative to the domestic carrier. More so in the lastcouple of years. Without elaborating, he says that flying Jet today is much

better experience compared to a couple of years ago. Though he cant

pinpoint any particular reason, hes a satisfied customer. There are

obviously many more like Sen.


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Service triangle analysis:

Jet Airways :From small beginnings in 1993 ,today the airline carries around 17,000

passengers daily on a fleet of 36 aircraft nine Boeing 737s and seven ATR

52-500s to 44 destinations around India. This growth has happened because

of service quality, which began as a part of Jets mission statement, and is

now being reinforced at every stage. The airline, has received several awards

for its service performance, and was recently awarded Qimpro gold standard

for quality.

Quality, for Jet Airways, means quality for both internal andexternal customers. What appears okay on the surface may not be so

when one looks closer. And for the past three years, the airline has

been on a mission to redefine the quality standards it had set for itself.

The current quality standards, their measurement and procedures are a

by product of Jets mission statement. It is the quality of its service

that distinguishes it from other airlines.

Its sole objective is customer satisfaction and be one step ahead to

provide the best. It wants to be perceived as a world class airline.Though it would have been enough for the airline to merely try and be

better than its main rival Indian airlines, it consciously benchmarks

itself with the best in the world KLM, Emirates and SingaporeAirlines, among others.

Managing moments of truth at Jet Airways:

At the core of the Jet quality focus are standards backed by quality

processes: there are norms laid out for all areas of customer experience,

from reservation to check in, departure, in flight services, arrival and post

flight. Whenever there is negative customer feedback, or there are in- house

service detractors, the feedback is mapped against set process to check

where the non-compliance happened. This is then remedied by

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communication and training where needed. If the processes are complied

with and there is still customer dissatisfaction, or where standards are loose

cross functioning teams are set up to tighten them and redraw the

processes.

Underpinning the whole system is the foolproof way in which Jet

monitors quality. It happens at three levels:

Formal customer feedback through Service Monitor Questionnaire

Internal feedback and critical comments from detractors

Direct quality audits at periodic intervals. A jet airways

audit at periodic interval .It has a system in place for auditing

service on a continuous basis.

Plans are a foot to increase the frequency of audits to iron out quality

discrepancies between various airports. The audits tend to be detailed, for

example, when check in counters are audited, the audit checks at least 26

parameters for compliance with and signage, and going to staff grooming,

greeting passengers by name, and the total time taken to process passengers

waiting in a queue. In a service industry, quality is subjective and that has to

be improved upon constantly. A number of different departments have to

mesh together and service delivery has to live up to perceived customer

expectation. And an airline only flies passengers, while the rest of the

countless functions are outsourced. At Jet the service quality wing steps in tofigure out problem areas before they become major customer irritants. They

take the role of a critical customer .Its a case of challenging the organization

and the environment. Quality cannot be checked in a service industry, the

departments have to know the standards.

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For example, at Mumbai airport, service quality is physically verified

from 4.30 am to 10 pm by two people working shifts. Their job is to move

X-rays to passenger queues and other areas of customer interaction tocheck for problem areas and take correctives. The overall quality is audited

at the six metro airports every quarter, and twice a year at airports with

four flights a day. For the remaining airports, audits are done on an ad hoc

basis.


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Gap analysis:Flawless quality all the time is also a near impossibility in the service

industry. There is always a gap between what a customer expects and what

can be delivered .The trick, though, is to keep the gap as narrow as possible,

so that the gap between customer perception and the companys perceptionabout what needs to be delivered is constantly narrowed.

Three years ago, the quality department adopted a gap analysis model to

analyze quality of service issues at different levels. With two vice presidents

overseeing the exercise, about five departments came under the

quality/service purview. These included airport service, in-flight service,

catering, marketing and sales.

The gap analysis is done from the points of view of both the customer

(the user) and the airline (the provider).

It takes into account both the internal customer (people within the

organization) and the external customer (the traveler).

With role playing exercises Jet identified the expectations gap that

exists between customer and provider, and those that could crop up in

future. This helped the quality department chart out the service quality

specifications to aid service delivery.

The largest gap not expectedly lies between customer

expectations and management perceptions about these

expectations(see gap 1 in chart).The key to narrowing this gap lies in

reducing four others: the gap between management perceptions of

customer expectations and service quality specifications (gap 2),the

difference between these specifications and actual service delivery

(gap 3), the effective communication of this service delivery tocustomers (gap 4), and the difference between what customers expect

and what they perceive they are getting (gap 5).

Action taken: To make the job simpler, Jet decided to tackle the entire service cycle

both on the ground and in flight. The ground rules meant involving

people at every stage, right from the time a traveler enters the airport to

fly Jet till he disembarks. It includes reservations and tele check in, city

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side ticketing, baggage screening, queue management and right down to

arrival lounge. The logic was simple: if you focused on the small

things, the big things came right.

While the Jet Airways business model talks about the requisites for safe

flying a modern generation aircraft, young fleet (average age: 30 yrs),wider coverage of India; it also harps on up gradation and innovation of

products and services and understanding customer needs.

Just how small are the issues could get was evident from how Jet decided

that fingerprints should not be seen on the cabin overhead storage flap.

There werent really any complaints about this, but Jets quality cell,

consisting of 11 people, decided it could do without shabby imprints. So

today, when the 10 cleaners get on board after every flight turnaround,

they have one more job to do. Jet claims to be the only Indian carrier that

deepcleans the cabins after every flight.

These small things count when we see it in the context of heightening

competition in the airline industry. Little wonder then that Jet is trying to

leverage its brand equity hinged on quality and on time performance.

In recent months, it has focused on two things-the visible aspect of in-

flight service and the quality of its product, its purchasing habits and

quality of consumable service served on board. All this to ensure a defect

free product.

Priced at the premium end, Jet is currently undercut on fares by Indian

Airlines. This means Jet has to offer value in other areas to make up for

the price disadvantaged.

Food above all:

Food was one area the Airline decided it could not afford to lose out on. To

provide a first class meal the business traveler on Jet had been getting plated

service for quite some time on. This meant that instead of the earlier prepackaged meal, which had the main course and the dessert on the tray, henow gets his two (break fast) to three courses (lunch and dinner) dressed in

perfection in Noritake crockery. Until six months ago, Jet used crockery

sourced from a local manufacturer. The Indian customer has traveled a lot

and is familiar with foreign airlines. This meant providing international

standards on a domestic airline. But customer satisfaction also means35


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attending to customers on the ground. Thus, Jet has adopted a system of

having a floor walker, now re-designated queue manager, to keep an eye

on how customers are served at the airport.

The floor walker monitors the entire gamut of services ranging from

attitude of staff, appearance of counters and assistance with baggage

and queue management. Employees say that it is an organizational

self assessment. It is done to see how the staff perceives itself. This

was one lesson learnt from discreet observation at the counters.

For example: A passenger was late in catching his flight. When he reached

the security gate huffing and puffing, a polite Jet Airways official informed

him that he had missed flight. Now, airline officials are taught to smile and

be polite to passenger. In this case, however, a smile was inappropriate sincea passenger missing his flight would be irritated by excessive smiling when

the need was for empathetic listening. This feedback from Jet staffer was

useful in helping counter staff realize that you need different strokes for

different people at different times.

Soft issues like the example above sometimes make a difference to the

customer. But just in case anything has been missed, Jet makes it

appoint to seek feedbacks regularly from the passengers. From the

beginning, Jet has been offering Service Monitor Questionnaires(SMQ) for passengers to fill out during the flight. Passengers were

asked to rate Jet on topics ranging from accessibility at the

airport to cabin crew behavior, food and the overall experience of

flying Jet. In the beginning as there was no pressure to get consumer

feedback the staff didnt take it seriously. Today these questionnaires

are mandatory on every flight. Not only is the staff encouraged to

proactively distribute the forms, it is also announced on the overhead

speakers .In March; Jet received 38,000 responses; a year ago it was

less than half that number. Jet uses these SMQs to raise the qualitybar. If they get 60% excellent rating in one area, the crew is asked to

get 70% the next time. It is through the assiduous monitoring of

customer feedback and complaints that Jet keeps setting itself a

moving target for improvements.

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THE TOUR-OPERATOR PRODUCT

Core product The basic benefit

Packaged tour which includes travel guidance,

planning, pricing, accommodation, local travel

and sight seeing

FormalThe expected

Insurance, airport pick-ups, foreign exchange

assistance (Raj Travels), airline ticketing, safe

travel guide, branding the product for easy

identity. Eg SOTC, Cox & Kings, etc

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AugmentedIn addition to the

expected benefit

Payment option travel now, pay later (on

the basis of bank affiliations), tourism on credit

card (Raj Travels); premium offers special

package deals; guarantees in case of

cancellation of flights, tour failures, bad

weather, etc; loyalty schemes; weather reports

of different countries, with month wise

maximum, minimum temperature, humidity and

rain; recommended tours for every age group

and interests; take away gifts (souvenirs) - atthe end of every tour

Future

Beyond the

usual,

serendipity

(pleasant

surprise)

Make your own package (customized

packages); free photo sessions; video shooting

of the entire trip by the tour operators;

incentives with every tour package, one more,

at half the price.

The Service Triangle analysis:

Example: Raj Travels

External marketing:This tour operator promises the customers through advertisements in

newspapers, handbills and pamphlets, internet sites to offer the finest

quality product with a premium price.

Raj Travels claims to be the First and Pioneer to operate tours to

Australia and Mauritius

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It also takes active and prominent interest in formation of TAFI (Travel

Agents Federation of India) and now their CMD is also the President of

TAFI.

Raj Travels is a holder ofTop Agents Awards from many airlines such as

British Airways, Lufthansa, Singapore Airlines and Amadeus.

It also conducts US and UK VISA seminar at Mumbai, Ahmedabad and

Pune for students.

Customers:

Customers include individuals, couples, families, groups (small and big)

Internal marketing:Raj Travels takes efforts to assure that the providers Tour guides, Tour

Directors and Tour Managers are professionals and well trained so that they

help the company to keep the promises.It imparts training to its providers so that the best is passed on to the

customers. Training is given in the fields of:

Inter-personal communication,

Motivation,

Handling crisis, etc.

Also, all the required documents and important items are made available to

the tour directors to ensure a comfy tour.

They have based their cooks at the hotels (in Europe and South Africa) tocook the delicious Indian meals and serve right in the hotels restaurant

under great ambience and atmosphere.

Thus the tour operator enables promises hoping that these would be

enough for successful transactions.

Interactive marketing:The providers (tour guides) of Raj travels are the most important people as

they are in constant and direct contact with the tourist. The tourist will havethe perception of high quality if the experience with tour guide, manager and

director is of the highest quality.

These tour directors ensure that at all places the customer experiences

delight by coordinating all the activities and events and giving least distress

to him.

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HOTEL INDUSTRYHotels form one of the most important support service that affect the arrival

of tourist to a country. The major players in the industry are Indian Hotels

Company Ltd (IHCL) operating under the Taj brand, the Oberoi,

Oriental Hotels, Hotel Leela Venture and the Ashoka chain of hotels,

owned and operated by the Indian Tourism Development Corporation

(ITDC).

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SWOT ANALYSIS

STRENGTH

A very wide variety of hotels is

present in the country that can fulfill

the demand of the tourists. There are international players in the

market such as Taj and Oberoi. Thus,

the needs of the international tourists

travelers are seen to while they are on

a visit to India.

Manpower costs in the Indian hotel

industry is one of the lowest in the

world. This provides better margins

for Indian hotel industry. India offers a readymade tourist

destination with the resources it has.

Thus the magnet to pull customers

already exists.

WEAKNESSES

.The cost of land in India is high at

50% of total project cost as against

15% abroad. This acts as a majordeterrent to the Indian hotel industry.

The hotel industry in India is heavily

staffed. Indian hotel companies have a

staff to room ratio of 3:1, this ratio is

1:1 for international hotel companies.

In India the expenditure tax, luxury tax

and sales tax inflate the hotel bill by

over 30%. Effective tax in the South

East Asian countries works out to only4-5%.

Only 58,000 hotel rooms are available

in India today, which is less than the

Bangkok hotel capacity.

OPPORTUNITIES

Demand between the national and the

inbound tourists can be easily

managed due to difference in theperiod of holidays. For international

tourists the peak season for arrival is

between September to March when

the climatic conditions are suitable

where as the national tourist waits for

school holidays, generally the summer

months.

In the long-term the hotel industry in

India has latent potential for growth.This is because India is an ideal

destination for tourists as it is the only

country with the most diverse

topography. For India, the inbound

tourists are a mere 0.4% of the

global figures.

THREATS

Guesthouses replace the hotels. This is

a growing trend in the west and is now

catching up in India also, thus divertingthe hotel traffic.

Political turbulence in the area reduces

tourist traffic and thus the business of

the hotels. In India examples of the

same are Insurgency in Jammu

Kashmir and the Kargil war.

The economic conditions of a country

have a direct impact on the earnings in

hotel industry. It can seen that thepresent economic slowdown in India

has led to a 51.6% fall in the industry

average net profits for the second

quarter of the current financial year,

2000..

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The Hotel Products

The Customers of Hotel industry

Core The basic benefitServing rooms, food,

kitchen and staff

FormalThe expected

Cleanliness, timely

service, polite and

courteous behavior, menu

availability, music.

AugmentedIn addition to the

expected benefit

Sparkling floors,

ambience, smiling

employees, music of

choice, Welcome flowers,

welcome drink,,

FutureBeyond the usual,

serendipity (pleasant

surprise)

Cookies in the room,

managers word ofthanks, giving surprise

parties to the guest and

delight the guest. The

emphasis is on

relationship marketing.

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The customers are the users of the services in the hotel industry. These users

belong to different categories visiting hotels with diverse aims and

objectives. Thus, it becomes very important for the hotel marketer to be

aware of these different categories and also to know which categories of

users form their major potential customer group.

The users of the hotels can be categorized as follows:

The users of the hotel come from different regions and segments and with

different culture and attitude. The hotel marketer has to keep in view the

variations in these categories and make best of the strategies to satisfy

them.

SERVICE TRIANGLE ANALYSIS:

Le Royal Meridian, Mumbai

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Users of Hotels

Tourists

Students

Officials

Trade

Representatives

Political

Representatives

Film Stars

Medical

representatives

Sportsmen

Domestic

Political

Representatives

Trade

Representatives

Sportsmen

Tourists

Cultural

Representatives

Officials

Film Stars

Medical

representatives

Foreign


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External marketing:the hotel promises through its advertisements in business magazines and

tourism sites to offer an unparalleled luxurious experience. It also claimsto have standards of finest European hotels with unadulterated luxury.

Customers: the profile of guests at Le Royal Meridian is Corporate,

Individual travelers, Airline crew and layovers.

Internal marketing:the hotel has efficient human resource practices to assure that theemployees (providers) are satisfied and help the hotel to keep the promises.

Empowerment: the management empowers each and every employee toimpart him with the authority to make decisions. This gives the employees a

sense of belonging and boosts his morale.

Training and development: in the induction and orientation the employee is

introduced to each department and their functions. Integration of all the

departments with the employees department is explained.

Standard operations procedure: each department and employee is instructed

with and trained to perform a standard operations procedure to maintain the

quality of service.

Job rotation: each employee gets an experience to work in all the

departments by regular job rotation. This reduces the fatigue caused due to

monotonous working and brings a new energy and enthusiasm in the

employee.

Rewards: the best employee of the month is rewarded who is selected on

the basis of feedback from guests, head of the department, etc.

Interactive marketing: the hotel has no signages in the entire property andinstead there are employees stationed at an equitable distance to escort the

guest. This provides an opportunity to know more about a guests likes and

preferences. Besides, the employees are assigned the job of being acquainted

with the guests profile before his arrival and wear name badges to encourage

personalized interaction .This often delights the guest and makes him feel

special.

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Interactive marketing:the hotel has no signages in the entire property and instead there are

employees stationed at an equitable distance to escort the guest. Thisprovides an opportunity to know more about a guests likes and preferences.

Besides, the employees are assigned the job of being acquainted with the

guests profile before his arrival and wear name badges to encourage

personalized interaction .This often delights the guest and makes him feel

special

Conclusion:

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While discussing the overall marketing strategies and challenges to

the hospitality and tourism in India, some measures can be

suggested which if applied, could stimulate economic growth not

only in this industry but also for India's economy as a whole.

The most significant factors affecting hospitality and tourism inIndia are:

Infrastructure management;

Government policies;

Workforce issues and education in hospitality and tourism

Strategies for growth;

Crisis management;

The management of destinations in India

and the deployment of online techniques for marketing.

Bibliography

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Newspapers:

Times of India

Hindustan times

Magazines:

India today

Discover india

Refrence Books:

1.Philip kotler marketing management

2.Batra, Rajeev, Myers, John G, Aaker, David A, Advertising

Management

Web:www.wikipedia.org

www.google.com

www.indiatourism.com

www.india-travel.com

www.lemeridien-mumbai.com

www.jetairways.com

www.rajtravelsindia.net
http://var/www/apps/conversion/tmp/scratch_4/www.wikipedia.orghttp://www.google.com/http://var/www/apps/conversion/tmp/scratch_4/www.indiatourism.comhttp://var/www/apps/conversion/tmp/scratch_4/www.india-travel.comhttp://var/www/apps/conversion/tmp/scratch_4/www.lemeridien-mumbai.com%20http://www.jetairways.com/http://var/www/apps/conversion/tmp/scratch_4/www.rajtravelsindia.nethttp://var/www/apps/conversion/tmp/scratch_4/www.wikipedia.orghttp://www.google.com/http://var/www/apps/conversion/tmp/scratch_4/www.indiatourism.comhttp://var/www/apps/conversion/tmp/scratch_4/www.india-travel.comhttp://var/www/apps/conversion/tmp/scratch_4/www.lemeridien-mumbai.com%20http://www.jetairways.com/http://var/www/apps/conversion/tmp/scratch_4/www.rajtravelsindia.net

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