Service Sector

Marketing Mix

in

Tourism

Done by:

Ranjeet R IyerT.Y.B.M.S-B div

Roll. No. 107

Tourism

• Tourism is travel for recreational, leisure or business purpose.

• It is travel and stay of people away from their home for a variety of purpose.

• It has become a popular global leisure activity.

Hunziker and Krapf in 1941, defined ‘tourism’ as:

"the sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as

they do not lead to permanent residence and are not connected with any earning activity."

Classification of Tourism

• The United Nations classified forms of Tourism in 1994.

Top 10 International destinations in 2009

Rank Country International tourists arrivals

1 France 74.2 mn

2 United States 54.4 mn

3 Spain 52.2 mn

4 China 50.9 mn

5 Italy 43.2 mn

6 United Kingdom 28.0 mn

7 Turkey 25.5 mn

8 Germany 24.2 mn

9 Malaysia 23.6 mn

10 Mexico 21.5 mn

8 P’s in Tourism

• Product• Place• Price• Promotion• People• Process• Productivity & Quality• Physical Evidence

1.Product

Involves the following concepts:

• Accommodation• Attraction• Transportation• Recreation• Shopping• Restaurant

2.Pricing

Pricing depends on the following:

• Cost• Demand• Competition• Duration• Mode of transport• Peak/Non-peak season• Destination

S.No Tour Name Destinations covered Duration Cost

1 On the Lord’s footsteps Delhi-Varanasi-Gaya-Nalanda-Patna-Rajgir

6N/7D $ 767

2 Jewel of the Crowns Delhi-Srinagar-Gulmarg-Pahalgam-Sonmarg-Agra

13N/14D $ 1220

3 Best of Kerala Cochin-Munnar-Cardamom House-Periyar-Kumarakom

10N/11D $ 1421

4 Himalayan Golden Triangle Delhi-Agra-Fathepur Sikri-Jaipur-Darjeelling-Bagdogra

13N/14D $ 1742

3. Promotion

• Different states highlighting about their features.

E.g. 1. Kerala- ‘God’s own country’- Highlighting about backwaters, ayurveda, elephants,

houseboats, beaches etc.

• Incredible India’ and ‘Atithi Devo Bhava’ are taglines of Indian Tourism

• ‘Our guest is blessed’ and ‘Our visitor is god’

• Aamir Khan as brand ambassador for ‘Atithi Devo Bhava’ for Indian tourism.

• Use of websites to sell tourism.

• Brochures, pamphlets, ads in newspapers.E.g. Raj, Kesari and Thomas Cook.

4. Place

• The ‘destination’ is the important aspect in place.

• Travel agents, tour operators etc. are distribution points.

• Proper infrastructure, transport and communication.

5. People

• Role of people is very important in any service.

• In tourism, people involved are travel agents, guides, airline crew members, receptionist in hotel etc.

• Contacts with people may be high, medium or low.

• Examples:1. In case of airlines:- The passenger will have high or medium contact with

the air-hostess, ground-staff where as low or no contact with the pilot.

2. In case of railways:- The passenger will have high or medium contact with

travel agents or ticket issuer but low or no contact with the loco pilot.

• Travel agents should provide best deals to customers after understanding their requirements.

• Guides should have in-depth knowledge about the locations, monuments, forts, history etc.

• Employees should deliver what the company promises to the customer.

• Physical appearance of guides also matters a lot.

6. Process

7. Physical Evidence

8. Productivity & Quality

• It involves positioning the process, the overall destination, the intangibles etc.

• It also involves positioning of tourism as National priority.

Indian Tourism

Indian Tourism

• Tourism is the largest service industry in India.

• 6.23 % contribution to GDP.

• 8.78% contribution to total employment.

• Generated about US$100 bn in 2008 and is expected to generate US$275 bn by 2018.

• India’s share in International tourist arrivals in 0.58 % as of 2008.

• India ranks 41 in World Tourist Arrivals as on 2008 but slipped to 62 in 2009 end.

• In Asia & Pacific region, India ranks 11 in Tourist Arrivals as on 2008.

• Indian tourism is said to be the largest employer in the world by 2019.

• World Tourism Organization estimates India will lead South Asia with 8.9 mn arrivals by 2020.

• India is poised to be 2nd fastest growing tourism economy in the world over 2005-14.

• By 2010, Indian airports will be handling 90-100 mn passengers p.a.

• Indian air travel to grow 20% each for the next 5 years since last year.

Foreign Tourists Arrivals in India 1996-2009

4 Pillars of Tourism Industry

Strengths

• Vast geography with forests, deserts, mountains & beaches.

• Varied culture.

• Many historical monuments.

• Knowledge of English by majority of local people.

• Efficient transport facilities.

Weakness

• Lack of adequate infrastructure.

• Safety and security of foreign tourists.

• Misconception about India by foreigners

• Lack of maintenance of monuments, forts etc.

• Many languages and dialects.

Opportunities• Increased privatization.

• CWG 2010.

• Medical tourism.

• Go-green initiative.

• World-class hotels and airports

Threats

• Terrorism.

• Tensions with Pakistan.

• Better promotion by other countries.

• Economic slowdown.

PEST AnalysisPolitical Factors

• Religious intolerance.• Relations with neighboring countries.• Lack of international representation.• Hotel industry getting government incentives.

Economic Factors

• More disposable income with people.• Low-cost airlines: more air-travellers.• Tourism contributing substantially to India’s GDP.

Social & Cultural Factors

• Many festivals throughout the year.• Exhibitions, trade fairs etc.• People becoming careful with foreign tourists after incidents in Goa and Kerala.

Technological Factors

• Poor facilities at airports and stations.• Growth of E-Tourism.• Introduction of cruise ships.• New land bridges.• Space tourism.

Medical Tourism

• It is travelling of people to other countries to obtain health care.

• It also involves doctors travelling abroad to deliver health care.

• Travelling for surgeries, herbal therapies, dental, cosmetics, yoga, ayurveda etc.

Medical Tourism in India

• India’s healthcare industry is worth over US$ 17 bn.• It is expected to rise by 13% p.a. over the next 6 yrs.• Presently medical tourism is earning US$ 333 mn

presently.• It is growing at an annual rate of 30%.• India receives about 1,50,000 patients from abroad

each year.

• Patients in U.S, U.K, Canada are fed up with the cost and delay in treatment in these countries.

• They travel to India, Singapore, NZ, Philippines etc. as the ate operated on the same day of arrival.

• India’s cost-effective treatments makes it one of the important centre for healthcare.

• Ayurveda and yoga has attracted people from all over the world!

• India has world class hospitals providing excellent services.

• Success rate is 98.5 % as compared to 97.5 % of U.S.• Best nursing care.

• No waiting period.

• Cost is 1/10th as compared to most developed nations.

• At par technology and less legal obligations.

Cost comparison(all fares in USS$)

Procedure U.S U.K Bangkok India Singapore

Angioplasty 30000 21000-27000

4000-5000

4000-5000

5000

Angiography 2500-3000

2000 1100 400 800

Hip replacement 19000 13000-16000

N.A 6000 6600

CABG 30000 N.A N.A 6400 9600

Ecotourism

• “A responsible travel to natural areas, which conserves the environment and improves the welfare of the local people”.

• The main objective is to showcase the natural resources to various segments of the society.

• It involves bird watching, trekking, river rafting, watching mere beauties of mountains, valleys, meadows, serene rivers etc.

Ecotourism in India• Few places like Himalayan region, Kerala, N-E India,

Andaman & Nicobar Islands and Lakshadweep Islands etc cater to Ecotourism.

• ‘Thenmala’ in Kerala is India’s first planned Ecotourism destination.

• India also has numerous biological and zoological parks.

• Hunting and poaching has stopped to a great extent.

• India occupies only 2.4% of the world’s total mass, but has over 8% of world’s known wildlife.

• Indian lions and tigers attract tourists from across the world.

• Of eight species of turtle found in the world, India is home to five species.

• India is a home to many migratory birds especially the state of Gujarat.

• World’s largest mangrove forest Sundarbans is located in W.B.

• India has 75 National parks and 421 sanctuaries.

• Kerala is one of the hotspot for ecotourism in India.

• Places like Munnar, Thekkady and Periyar in Kerala attract many foreigners every year.