Table of context

Sr. no.

Particulars

1. Introduction

2. Service Sector Management

3. Travel & Tourism with respect to Service Marketing Mix

4. KESARI World Class Travel Company

5. RAJ Travel World

6. KESARI v/s RAJ

7. Conclusion

Introduction

Our objective of the study is to understand the travel & tourism industry with respect to service marketing mix that are 8P’s (Product, Price, Place, Promotion, People, Process, Physical Evidence & Positioning) and also we have compared two of the travel & tourism company. To understand the former part, we have visited ‘KESARI World Class Travel Company’ & ‘RAJ Travel World’ and gathered appropriate information with regards to project.

We have analyzed the information of the companies with respect to 8P’s and prepared comparative statement. For this proceeds, we have picked same packages which are provided by both the companies. Further we have point out that how company manage their services to satisfy the customers.

After concerning all the above we known that, By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying stock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services.

Service Sector ManagementService:

A type of an economic activity that is intangible not stored & does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economic, the other being is goods. Providers of services make up the tertiary sector of the economy.

Examples of services include the transfer of goods, such as the postal service, delivering mail & use of expertise or experience, such as a person visiting a doctor or lawyer.

Characteristics of Service:

Intangibility: Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential nor need for transport, storage or stocking of services.

Perishability: Services are perishable in two regards

The service relevant resources, processes and systems are assigned for service delivery during a definite period in time. If the designated or scheduled service consumer does not request and consume the service during this period, the service cannot be performed again for him.

When the service has been completely rendered to the requesting service consumer, this particular service irreversibly vanishes as it has been consumed by the service consumer.

Simultaneity: Services are rendered and consumed during the same period of time. As soon as the service consumer has requested the service (delivery), the particular service must be generated from scratch without any delay and friction and the service consumer instantaneously consumes the rendered benefits for executing his upcoming activity or task.

Inseparability: Services are typically produced and consumed simultaneously. In case of physical goods, they are manufactured into products, distributed through multiple

resellers, and consumed later. But, in case of services, it cannot be separated from the service provider. Thus, the service provider would become a part of a service.

Variability: Any services is not identical, so quality, price, way of presentation or timing of render of services may differ from one activity to another. Also the level of satisfaction may changes from consumer to consumer. The service firms should make an effort to deliver high and consistent quality in their service; and this is attained by selecting good and qualified personnel for rendering the service.

Lack of Ownership: Right of ownership is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it.

Service Management:

It is integrated into Supply Chain Management as the joint between the actual sales and the customer. The aim of high performance Service Management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain. Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties. They also must accommodate inconsistent and uncertain demand by establishing more advanced information and product flows. Moreover, all processes must be coordinated across numerous service locations with large numbers of parts and multiple levels in the supply chain.

Components of Service Management:

Generally, Service Management comprises six different capabilities that companies should consider for optimization:

Service strategy and service offerings

o Defining Service Strategy

o Defining Service Offerings & Positioning

o Go-To-Market Strategy

o Service Portfolio Management

Spare parts management

o Parts Supply Management

o Inventory Management

o Parts Demand Management

o Fulfillment Operations & Logistics

o Service Parts Management

Returns, repairs and warranties

o Warranty & Claims Management

o Reverse logistics

o Returns Processing

o Remanufacturing

Field Service Management or Field force effectiveness

o Technician Enablement

o Mobility

o E-learning

o Activity Scheduling

o Service Billing

Customer management

o Order Management & Availability

o Channel & Partner Management

o Customer Insight

o Technical Documentation

Assets, Maintenance, Task Scheduling, Event Management

o Remote Monitoring

o Diagnostics & Testing

o Asset Management/Optimization

o Configuration Management

Travel & Tourism with respect to Service Marketing Mix

Travel & Tourism:

Travel is the movement of people between relatively distant geographical locations for any purpose and any duration, with or without any means of transport. Travel also includes relatively short stays between successive movements. Movements between locations requiring only a few minutes are not considered as travel. As an activity, "travel" also covers all the activities performed during a travel (movement).

Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited." Tourism has become a popular global leisure activity.

Tourism is vital for many countries, such as Egypt, Greece, Lebanon, Spain and Thailand, and many island nations, such as The Bahamas, Fiji, Maldives, and the Seychelles, due to the large intake of money for businesses with their goods and services and the opportunity for employment in the service industries associated with tourism. These service industries include transportation services, such as airlines, cruise ships and taxicabs, hospitality services, such as accommodations, including hotels and resorts, and entertainment venues, such as amusement parks, casinos, shopping malls, music venues and theatres.

Who, When, Where, How, & Why?

WHO – Any One

First Wave - They are the Leisure Tourists which are mostly wealthy & upper-class citizens. Travel for them is a novelty.

Second & Third Waves - It comprises of middle & lower level people who are not a leisure tourist.

WHEN – Any Time

Tourists have Seasonal Tourism - summer, winter, spring & rainfall or during Holidays or on occurrence of certain Events – marriage, birthdays, etc.

WHERE – Any Where

Being a Globalization a tourist can travel easily at affordable prices. Nearly every country has a market for Tourism

HOW – Any Way

Developments in transportation have helped to globalize the industry. Various means such as Planes, Trains, Automobiles, Ship, etc are available for tourism.

WHY – Any Reason

First Wave travel for Religious Pilgrimages, Exploration, Trade, Medical & Necessity

Second & Third Waves, Because of the expansion and growth of Tour & Travel industry this Second & Third Waves people also travel at affordable prices.

Service Marketing:

Service marketing is the process by which companies create customer interest in its provided services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

The Service Marketing Mix:

Product: It’s a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. In travel & tourism industry the holiday packages is considered as a product.

Price: It is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. In travel & tourism industry the packages amount is considered as price.

Place: It represents the location where a product or services can be purchased. It includes any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers.

Promotion: It represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion.

People: An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. In travel & tourism industry driver, sales executives, hospitality executives, guide, etc are the related people.

Process: It refers to the systems used to assist the organization in delivering the service. In travel & tourism industry the process of service is done by picking up the customer from their place, then guiding them, providing accommodation, providing meals on time & finally dropping back them to their place.

Physical Evidence: Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organization. In travel & tourism industry customer make judgment on accommodation, travel facilities, executive’s behavior, etc.

Positioning: In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. In travel & tourism industry a company builds its image in the market with regards to their services and the packages they provide.

Vision - “To be a world class travel company spreading smiles and happiness.”

Mission - “Kesari is passionately committed to Total Quality Travel, with continual delivery of value added services. We uphold the highest ethical standards and believe

in creating new benchmark in the industry.”

Company’s background & profile:

The trailblazing journey of Kesari began in 1984 with a pledge - “When you make a promise to your guests, honour it.” by Mr. Kesari Patil. Today that small travel company, called Kesari Tours Pvt. Ltd, is one of India’s most reputed travel companies with an office staff of over 500 & 400 tour escorts, with branches and expanding PSA network in every nook & corner of India. Kesari is a world class travel company certified by ISO 9001:2000 & OHSAS 18001:2007 standards.

Mr. Kesari Patil was awarded as ‘Lifetime Achievement award’ by Galileo Bird Travel World Express, in Delhi in the presence of chief Minister Sheela Dixit, Chief Editor Shekhar Gupta & Tourism Minister Kumari Shalaga on 21st April, ’10 for his contribution in the Travel & Tourism industry. Further, the company was awarded as ‘Best Domestic Tour Operating Company in India’ in year 2006-07 & in year 2007-08 it was awarded as ‘Best Outbound Tour Operator Western in India’

Today, Kesari has become a household name for travelers spread across the length & breadth of our country having a substantial portfolio of large domestic & international holiday destinations to its credit, spreading across the seven continents. Over 4 lac happy customers have enjoyed the world class standards of service, quality & innovation that Kesari has bought in the tourism industry.

Trusted name

First Travel Company certified by ISO 9001:2000 & OHSAS 18001:2007.Lakhs of satisfied tourists, maximum repeat customers.Winner of major national & international tourism awards.Preferred company by tourism boards, Airlines & Associates.900 dedicated professional Kesarians in offices all over & 400 exclusive Tour leaders, to serve you.A variety of tours all over the world, from 4 to 21 days to suit every budget.

Trusted price

Worldwide tours at its best price.Clear cut on line tour priceNo hidden cost.No extra charges for stipulated sightseeing in tour programme or meals when on tour.Air fare, Airport taxes (expect fluctuations), Visa charges, Insurance (for selected tours) included.Tips to guides & drivers included.

Trusted tour programmes

Meticulously planned, well designed itinerary to suit Indian tourists.All ‘Music See’ sightseeing included.More sightseeing, less bus journey, mostly no backtracking of routes.Choice of Mono to Multi countries, dates, days & prices.

Trusted services

Professional services with a personal touch.Centrally or conveniently located Hotels, appreciated by all traveled guests.Hi-tech, A.C. / Air cooled coaches with reclining seats.Sumptuous Indian meals on tour.Extra toppings like ice-cream, softy, tea, coffee, juice, soft drink at various places to add to the fun.

Trusted entertainment

See & enjoy World with Entertainment, Smiles & Laughter.Games, Antakshari, Dance & Dhamaal on tour.Attentive tour leader to make the tour more enjoyable for every customer.

Trusted policies

Transparent, Honest & Fair dealings with all.Committed to Ethical Business Practices.No advertising gimmick.No false promises.

House of KESARI:

Company’s background & profile:

Shree Raj Travels & Tours Ltd. was established in 1976 by the Chairman & Managing Director- Mr. Lalit Sheth. It was his vision to provide the Indian traveler with SUPERIOR quality package tour facilities. He ensured that the services of Raj Travels would be totally customer focused and would maintain their exclusivity. The objective was to make family holidays tours more comfortable, more exciting, and most memorable.

His passion was to CHANGE the entire scenario that existed in the Indian Market. An array of new Services was introduced by Raj Travels that were welcomed by customers with open arms. Within a short span of time RAJ TRAVELS revolutionized the entire travel industry. The CHANGE had taken place and Raj Travels began its journey to become the Number 1 Outbound Tour Operator in the country.

Raj Travels was the first Outbound Tour Company to introduce Indian Meals on its Globe Tour Packages. Raj Travels was the first tour operator to start package tours to Australia & New Zealand. Way back in 1986 when Raj Travels Launched Caravan Kitchens and started serving "Indian Cuisine- Hot Meals" in Europe, the customer response was so dynamic that it changed the face of "Indian Tours" forever.

The biggest players in the industry were compelled to follow suit and it was do or die situation for many. Raj Travels has been renowned for PIONEERING some of the most admired "Customer Services" in tourism. Today, we proudly continue to enjoy the Number 1 position in the outbound tours industry with 54 operational offices Spread over India. The few of the laurels that they have received in 2003, includes the Best Performing Agency by reputed airlines such as Lufthansa and Air India.

Amadeus, the world's largest CRS has declared Raj Travels as the number I reservations agent in India. BBC worldwide has also rated Raj Travels as India's premier outbound tour operator.

What brings Raj travels to an enviable position ?

The growth & success can be attributed to its constant improvisation and introducing new features - be it the choice of Hotels, choice of Airlines, or choice of Destinations. Awareness of the growing trends in travel trend, keeping up to the demands of the more educated and savvy travelers , catering to all these has been our forte.

Orlando, Madame Tussauds, Kukenhof Gardens, Fantasyland, Holiday Park, TGV train ride, Hovercraft ride Safari, Helicopter ride, Balloon ride, Ski flight, Dinners at Planet Hollywood, Hard Rock Café, Rainforest Café, James Bond Breakfast at Schilthorn, Mt Titlis, Mt Rigi, Dinner on 107th floor of World Trade Center, Para Sailing, Submarine ride, Ride on MTR, the Singapore Zoo, Night all these and more were brought to the discerning traveler, only in a Raj Tour.

They do Things Differently:

They want to be different; this has been their most outstanding quality. This is a trait which segregates them from the rest of the competition. They are aggressive, intense & passionate of their business of travel promotion.

They provide a lending ear to understand the changing profile of today's traveler. They pack a lot of things to do and see in a short holiday, for some it may be taxing, for most it is the best way to holiday. Their young and vibrant team is full of ideas & eager to provide the right service.

Product Price:

Raj believes in guiding the traveler with an "all Inclusive" price point, and not mislead a client with eyewash of a published low price, with all others as Optional. Raj travels has been able to prove to its clients that what is appearing cheap, is ultimately more expensive & there can be no compromises on a well tailored, all inclusive holiday. Raj believes in giving true value for money. It has been their competitors’ constant endeavor to prove them wrong; however, their satisfied clients have been their greatest spokes person. A good product talks for them.

 

Service Marketing Mix

Product America with Bahamas Cruise, 19 days / 18 nights.

American Experience with Bahamas Cruise, 19 nights / 20 days.

Price INR 145990 + USD 2800 INR 77000 + USD 5815

Place Washington, Niagara Falls, New York, Miami, Orlando, Las Vegas, Las Angeles, San Francisco, Bahamas Cruise.

New York, Washington, Gettysburg, Harrisburg, Niagara Falls, Toronto, Orlando, Bahamas Cruise, San Francisco, Las Vegas, Los Angeles.

Promotion Print ads, billboard, brochures, catalogs &Web pages

Print ads, brochures, catalogs & Web pages

Process Picking up-flight-providing meals & accommodation-visiting the above mentioned places-guiding-dropping back to their place.

Picking up-flight-providing meals & accommodation-visiting the above mentioned places-guiding-dropping back to their place.

People Driver, Guide, Tour escorts, Travel professionals.

Driver, Guide, Hospitality executives.

Physical Evidence High range of Infrastructure

Satisfied clients have been their greatest spokes person.

Positioning Advertising media, Public Relation.

Advertising media, Public Relation.

Service Marketing Mix

Product All of Europe, 21 days / 20 nights.

European Experience, 23 nights / 24 days.

Price INR 96990 + EURO 2600 INR 79999 + EURO 4449

Place Spain, Barcelona, Monaco, Vatican, Pisa, Rome, Padvo, Innsbruck, Wattens, Switzerland, Germany, Netherlands, Paris, London.

London, Paris, Nice, Cannes, Pisa, Rome, Padvo, Innsbruck, Swarovski, Schilthorn, Jungfrau, Geneva, Villars, Zurich, Hanau, Glasgow, Edinburgh.

Promotion Print ads, billboard, brochures, catalogs &Web pages

Print ads, brochures, catalogs & Web pages

Process Picking up-flight-providing meals & accommodation-visiting the above mentioned places-guiding-dropping back to their place.

Picking up-flight-providing meals & accommodation-visiting the above mentioned places-guiding-dropping back to their place.

People Driver, Guide, Tour escorts, Travel professionals.

Driver, Guide, Hospitality executives.

Physical Evidence High range of Infrastructure

Satisfied clients have been their greatest spokes person.

Positioning Advertising media, Public Relation.

Advertising media, Public Relation.

By analyzing all the proceeds we can conclude that the travel & tourism industry is a service sector where all marketing techniques are used. So for running a successful travel & tourism company an organization must have appropriate marketing techniques to satisfy their potential customers.

‘KESARI World Class Travel Company’ & ‘RAJ Travel World’ both are doing well to satisfy their customer’s in respect to service marketing mix. Usually, both company states that they need not keep any hidden cost. Further their management is well designed with professionals to manage the tours.

As per our reading, ‘RAJ Travel World’ has a lower market as compare to ‘KESARI World Class Travel Company’. Also, ‘RAJ Travel World’ does not have much domestic packages which ‘KESARI World Class Travel Company’ provides. ‘KESARI World Class Travel Company’ commands lots of terms & conditions and also not provides money back system on cancellation of tour which ‘RAJ Travel World’ do (under a scheme-the discounted money will be carry forward in next trip which a tourist does within a year.)