Tourism Market

8/3/2019 Tourism Market

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Q.1. What is meant by Tourism Market and what is the importance of

information in tourism?

INTRODUCTION

Tourists are the consumers in the tourism business and therefore form the touristmarket. This tourism market is the focus of the tourism industry's marketing

activities, including that of destination management. Tourists need much

information before and during their travel, especially if they are travelling to a

new place since the major offerings in the tourism sector are intangible. There

are man information sources available, and a curious tourist will seek

information from several sources.

In addition, the tourism industry is highly information-sensitive, and efficient

information management is very important to its success. Both the tourismindustry and tourist destinations use information technology to manage

information efficiently and effectively. Several types of information system are

available to Facilitate the effective functioning of tourism organisations.

It is important to understand these two factors ie tourism markets and

information sources, as both affect tourist flow. Tourist markets generate tourist

flow, and Destination Management Organisations (DMOs) approach these

markets to direct this flow their way. The tourist's decision to travel to a

particular destination is influenced by the information available for thatdestination as well as the source of that information. In this Unit, you will first

learn to identify tourism markets, and then understand the various information

sources available to both buyers and sellers in this industry.

TOURISM MARKET

From the marketing perspective, the term 'market' means the group of

consumers - both potential and current - who might transact with a seller. In the

tourism industry, tourists or travellers are the consumers, and hence form the

market along with potential tourists Tourist-generating countries or places are

commonly referred to as 'tourism markets' in tourism literature The potential

tourist belongs to these markets and decides the travel destination based on

many factors.


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As discussed in Unit 1, the major tourist-generating countries and tourism

markets are developed countries where people have much

disposable/discretionary income, such as France, Germany, the US and the UK

These countries are also the top spenders.

Tourist arrivals have increased steadily after World War II, barring a few

setbacks In 1970, the world saw 166 million international tourist arrivals, in

2000, the figure had gone up to 700 million, and the United Nations World

Tourism Organisation (UNWTO) forecasts 1,600 million international tourist

arrivals by 2020.

Yet, only a small percentage takes an international trip annually now, and a

mere 21 international trips per population of 100 will be generated in 2020 This

means that a significant percentage of the world's population is unlikely totravel Therefore, recognising tourist-generating markets is a very important part

of tourism marketing Destination countries direct their marketing activities to

potential tourists in these source markets.

The demand for travel in source markets (tourist-generating countries) and the

travel tendency of their population is called Travel Propensity in tourism

literature Net Travel Propensity indicates the penetration of travel tendency,

or the number of travellers per population. Gross Travel Propensity measures

the number of trips per population While Gross Travel Propensity can exceed100 percent in a few developed countries, Net Travel Propensity can never be

100 percent, as an entire population never travels

Tourism marketers in destination countries use a process called 'market

segmentation' to target their activities at specific groups of potential tourists in

tourist-generating markets, as travel wants and needs are dissimilar, on bases

like geography, demographics and psychographics You will learn more about

market segmentation and targeting the right segment in subsequent Units.

As discussed in Unit 1, National Tourist Offices (NTOs), DMOs, international

tourism organisations and similar organisations track tourist arrival trends

analyse a region's tourism characteristics and publish hr findings. The UNWTO

is the chief agency that tracks tourist world wide it gathers, complies the

statistics in different formats. It publishes the most current trends in its quarterly


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World Tourism Barometer. In its annual publications and periodical

publications called Compendium of Tourists Statistics. the UNWTO publishes

statistics on tourist arrivals and outbound tourism - both volume statistics

(number of tourist arrivals) and value statistics (international tourist receipts)

along with other relevant details of each country.

Destination Management Organisations that develop and promote tourism a

collect, analyse and publish tourism statistics periodically. These data statistical

analyses immensely help tourism planning, development and market activities

and professionals.

IMPORTANCE OF INFORMATION IN TOURISM

The role and importance of information in tourism is probably greater than any

other industry, because of the following two reasons:

Travel and tourism is an umbrella industry of many sectors and organisations

that are involved in the production and distribution of travel and tourism

products. It has a complex distribution chain of interrelated business (Werthner

and Klein, 1999). It is vital that specific, relevant and accurate information

should flow smoothly among the diverse and complex network of consumers,

intermediaries and suppliers to meet the consumers' needs For example, a tour

operator needs an intensive communication linkage with suppliers as well as

tourists to coordinate a tout Quite a few permutation and combinations ofroutes, transportation modes and accommodation units are required. Timely

decision-making is complex but critical.


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NGO = Nongovernmental Organization NTO= National Tourism Organization

RIO = Regional Tourism Organization; LTO = Local Tourism Organization;

QS = Central Reservation System GDS = Global Distribution System

Source : Sage Handbook of Tourism Studies, adapted from Werthner and Klein(1999)

Tourism,a service industry, offers service products that require the latest and

most accurate information . Information is one of the most important quality

parameters for efficient service. It is information - not a physical product, as in

most other industries - that moves in tourist markets, so service providers

always look for all types of information. A variety of factors contributes to the

tourism industry being so information-intensive; six of these factors are

discussed below.

i) Any service product is intangible; unlike manufactured goods, tourism

products cannot be inspected or pre tested prior to purchase. Therefore,

consumers i.e. tourists base their purchase decision almost entirely on

representations and descriptions and look for maximum information to

overcome the uncertainty caused by intangibility. Adequate information

provided to a tourist convinces them about a product and enables them to reduce

the risk in making travel decisions. Tourism promoters have recently linked the

IT and tourism sectors to creatively market products and minimise implicationsof intangibility.

ii) Tourism products are highly perishable; that means they cannot be stored for

future sale and are time-sensitive. In case an airline cannot sell all a flight's seats

in time, it cannot sell those seats for that flight ever again; the revenue to be

earned from them is lost. Therefore, the airlines need to disseminate latest

information accurately and fast to enable last-minute ticket purchases. Also,

seasonal demand fluctuations necessitate principals, intermediaries, retailers as

well as tourists to have timely information to avoid overbooking, crowding,

price variations, etc.

iii) The production of a service is inseparable from its consumption; for

example, if the traveller has to reach his destination, the means of transportation

must make the journey at the same time as he does. Production and


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consumption of the tourism product occurs at the same time and therefore

accurate information helps the tourist to be a part of this service production

system.

In addition, service providers for tourism activities can be spread throughout theworld. For example, a British tourist visiting India, the service provider, and

service of accommodation will be in India whereas his initial service provider,

outbound tour operator, will be based in his native place, the UK. The operation

of international airline will be seen more in the region between UK and India.

Due to this inevitable locational fragmentation of the tourism business, there is

an increased need for information by both tourists as well as industrial

components such as tour operator, ground operator and hotels; in order to make

the tourism process happen.

iv) Service offerings are unique; as unlike the manufactured goud they are never

identical. For Examples, Two hotels of the same chain in different cities will

offer a different experieiie. Even a visit to a tourist attraction, like a fort or

museum, can be a very different experience for two different people or two

different tour groups. This feature of Heterogeneity is very common in Tourism

Industry as tourism products are "people oriented".

Tourists are aware of the possibility of experiencing something differentfrom that promised. Therefore, these days tourists undertake of research

including finding information on travel experiences of others tourists before

deciding on their choice of destination and services providers. Service

providers on the other hand provide information in a manner that helps create

and maintain a brand image yet at the same time a connection is made with

travellers as well as other services providers This connectivity and exchange of

information assure a "standard of service" which can help overcome the

heterogeneity of the service offered.

v) Intermediaries - travel agents and tour operators are an important information

source for the tourists. They acquire, process & disseminate information to

make the consumption of tourism product easy. The role of a travel agent is

both that of a search-and-book service provider and as well as an advisor. Tour

operators on the other hand consolidate and package different tourism


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components a market them. Information exchange is vital in coordinating all

such activities.

vi) Seasonality is another feature of importance in the tourism industry The

need for accurate, timely and specific information for principals intermediaries,retailers as well as tourists is highly essential for the industry to cope with the

seasonal demand fluctuations in context to both domestic and international

tourists.

Further, Tourism activities are not just limited within the boundaries of a

country A tourist tries to explore new and exotic destinations; and hence seeks

information on a wide variety of topics that ranges from passport/VISA

regulations to accessibility to the destination to food habits and local culture as

well as climatic conditions and driving regulations. At the same time the principals, suppliers as well as intermediaries also require information for

communicating among themselves as well as with tourists.

All the above discussed reasons describe the importance of information in the

tourism sector. Fortunately, advancements in information technology are

playing a great role in managing the information requirements of the tourism

sector.

TYPES OF INFORMATION TOURISTS NEED

The tourism industry is information-intensive and needs to process large

quantities if information, which can be classified into three types:

i. static and dynamic;ii. pre-trip and in-trip; andiii. private sector and public sector.

Sheldon P, 2003, Tourism Information Technology, CABI).

Static information is information that does not change often, for example, the

distance between a tourist destination and its nearest airport. Other types of

information, such as room availability and flight schedules, change frequently


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and are considered dynamic. Information technology applications are essential

for dealing with dynamic information.

Pre-trip information and in-trip information is information that tourists need

before and during their trip. Pre-trip information is static while in-tripinformation is dynamic. All tourists need both static and dynamic information,

and both public and private sectors provide it.

Public sector information is general information about tourist destinations; the

private sector provides specific product information. For example, the overseas

tourist office of India Tourism (Ministry of Tourism) provides information on

tourism in India and its attractions, facilities, transport routes, etc., whereas an

airline office gives flight timings, seat availabilities and the like, pertaining to

their airline only.

Tourists require wide range of information about their destination. Some of the

was are given below.

i) Inbound/Outbound

travel When a foreigntourists wishes to visit a

foreign country

Air, rail, coach, air and sea routes,

carriers, rates, schedules Travelgeography, time zones Information on

passport, visa, travel insurance, healthregulationsCustoms regulations

Currency : exchange rates, where toexchange

ii) Internal/Local

transport Informationon transportation after

reaching the destinationrented car, car withdriver

Air, rail, coach, bus, and taxis : routes, prices, schedules Information on use ofown car

iii) Local and current real

time conditionsInformation on local

facilities, geographicalconditions, shopping andthe like

Prices : guide to bargains and

commodities that are usually expensiveCulture, cocial life, cultural features

Cultural advice : modes of dress, greetingcustoms Public holidaysBusiness/shop opening hours and itesm

special with regard to the area Seasonalfactors Climate conditions, weather and


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weather forecasts.

Availability of sanitation facilities,communication facilities, etc. Quality of

water available Sporting facilities,availability of equipments timings

Local traffic informationCongestion problems reads, publictransport, at attractions and events.

iv) Locations, destinations

Location of cities, townsand other geographicalelements of a destination

Regions

CitiesTownsVillages

Locations and tourist attractions such asbeaches, scenic locations, parks ski slopes,

etc.

v) What to do ?Activities that can be

undertaken by tourists inthe destination

Sightseeing optionsAttractions to visit : historical, cultural,

scenic, sporting, etc.Places suitable for childrenSporting activities

Hobbies and interestsCulture

FolkloreWellnessEvents

ShoppingCulinary specialties

Locally produced food and drinkOrganic food

Entertainment

NightlifeReadymade do it yourself suggested

itinerariesTheme toursPaid for tours, local excursions

Guiding servicesvi) Where to stay ?

The information tourists

require on theaccommodation details

in the destination

Classified accommodation establishmentssupplementary accommodation details

HotelsGuest accommodation

Self catering houses

Holiday parks and villagesCamping caravan parks


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Campus accommodation

HostelsHouseboat accommodation

SpasRatings of the accommodation facilities

by the authorities as well as other agenciesvii) Availability of special

facilities

Facilities for families with young children

Facilities for youthsFacilities for groups

Sustainable tourism practices andestablishmentsAccessibility : information and facilities

for the disabled, seniors, those with youngchildren

Facilities for bikers, walkers, skiers and

other interest groupsviii) Whom to contact ? Contact details regarding reservations and

bookings, safety and security aspects,travel documents, etc.

The use of information by tourists can also be classified as

i. Pre-consumption stageii.

Consumption stage

iii. Post-consumption stage

Source : (Urike Gretzel and Daniel R. Fesenmaier, The sage Handbook of

Tourism Studies, SAGE ublication, 2009, p. 563)

The information sought during pre-consumption phase involves information

necessary for planning trips, formulating correct expectations,, and evaluating,comparing and selecting alternatives, as well as to communicate with the

providers of tourism products and services to prepare or execute transactions.

Information sought during actual consumption is more related to being

connected and to obtaining detailed information relevant at a specific place and

moment in time


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During the post-consumption stage, exchange of information is related to

sharing tourism experiences, staying connected and sharing, documenting,

storing and reliving tourism experiences One example of post consumption is of

frequent flyers keeping in touch with service providers or tour operators foreconomic tour packages.


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Q. 3What is Market Positioning and it different approaches. Explain with

giving suitable examples form Tourism Industry.

MARKET POSITIONING

Positioning means creating an image in the minds of customers within a targetmarket about a product. Once a target market is selected, it is important to

understand that other organisations too might find it attractive. Therefore,

creating position, a place, for the product in the target market is important. This

is possible when a company sends out a convincing message to its customers

about product features, services, and other offerings. Successful positioning

helps duct to attract the attention of customers within a target market and

identify easily from a group of similar products.

Definition"Creating an image, differentiating a product and promising a benefit in the

mind of customers. Positioning is the perception the consumer has of a product

offering" (Shoemaker and Shaw).

According to Kotler, "A product position is the way the product is defined

by consumers on important attributes the place the product occupies in

consumers minds relative to competing products."

"Positioning refers to the 'placing' of a product in that part of the market, whereit will be able to complete favourably with competitors products." (Adcock et al,

1995).

Product positioning is part of the total product offering. It starts with market

segmentation, market targeting and positioning and differentiation. Product

positioning and differentiation are integral parts of product offering. The salient

features of the product or services offered to a market are emphasised in the

minds of the custother byproduct differentiation and thus help in positioning

of the product. Some of the reasons for positioning are as follows.

1. Perceptual Process: Perception. The marketer whose advertising messagecommunicates an unclear or confusing image to customers will find these

message ending up as a pile of mental garbage, 'screened out by highly

sophisticated consumers. Research has shown repeatedly that people forget


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a very high percentage of the commercial messages to which they are

exposed. Clear, concise and simple messages are key to slipping past

perceptual defences. This, together with well-positioned service offerings, is

the essence of positioning.

2. Intensified Competition There is a growing competitiveness in thehospitality and travel industry. Positioning is a technique used to give a

service an image that is unique: and different from that of competitors.

Kingfisher airlines came up when low-cost carriers (LCC) were doing great

business. Kingfis'icr positioned: itself as a full service airline and implanted

the idea that th-I.J, have more services to offer than other airlines.

3. Volume of Commercial Message People are exposed to hundreds ofcommercial messages each day, some from hospitality and travelorganisations, but most from other advertisers The sheer volume of

messages makes it impossible for anyone to absc all they see, hear, and

read.. To get a person's attention among what many call the "advertising

clutter" is effective positioning. Advertising must stand out from the crowd

by being distinctive, while also communicating clear ideas.

POSITIONING APPROACHES

To position a product or service offering in the market one needs to undersI g

the three elements in true positioning:

1. Crating an image2. communicating customer benefits and3. differentiating the brand from competitive services.Source: Alastair M. Morrison, Hospitality and Travel Marketing, 2007

The steps required for effective positioning is commonly referred to as the 5

positioning

Documenting :- Deciding the important benefits that an organisation wishes to

before customers


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Deciding:- The image to be conveyed to actual and potential customers

Differentiating - Distinguishing features of one organisation's product from

anothers.

Designing :- Designing the tools mechanism to convey the differences.

Delivering: - How to fulfil the promises

The 5 Ds help in understanding product positioning, but the positioning is

usually on one of the following approaches (Source: Thomas C. Minnear and

Kenneth C. Bernhardt, Principles of Marketing, 1990)

1. Positioning by specific product feature: This is the most commonapproach to positioning. Price and specific product features are used asthe basis for positioning. A rent-a-car company positioning itself as

everything the major rental car companies give you, but at a lower price,

is a classic example.

2. Positioning by benefits, problems, solutions or needs: This approachemphasises on the benefits that the product brings to the consumers. For

example Pharmaceutical companies position their new drug I medicine to

doctors, on the platform of the effectiveness of the new drug along withnegligible side-effects.

3. Positioning for specific usage occasion: This approach is related to benefit positioning but uses a specific occasion as the major basis for

positioning. An example is jewellery being positioned as specialised in

wedding jewellery.

4. Positioning for user category: This approach lays emphasis on the users'needs or expectations. Offering tour packages only for single female

tourists is one such positioning platform.


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5. Positioning against another product: This approach is used when one product is already available in the market. For example, positioning a

five- star hotel as a boutique hotel to differentiate it from other five-star

hotels.

6. Product class disassociation: This is a less common basis forpositioning, but it can be effective when introducing a new product that is

different from standard products in an established product category.

Lead-free gasoline is an example.

7. Hybrid basis: Often, a positioning strategy will be based on several ofthese alternatives, incorporating elements from more than one positioning

base. Porsches positioning for example, is based on product benefits as

well as on a certain type of user.

There are other positioning approaches as well. Shoemaker suggests objective

and subjective positioning approaches. Objective positioning refers to physical

characteristics and functional approaches whereas subjective positioning means,

prestige, service quality and experience. Another approach is through:

I. Tangible positioning: Creating an intangible subjective image of aproduct based on tangible features of the product

II. Intangible positioning: Creating a tangible objective image based onan intangible aspect of the product

No matter the approach adopted by an organisation, the product needs to create

its own identity and image in the market, especially in the target market.

Positioning in Tourism

For a destination, successful positioning influences the mind of a customer and

shows its competitive advantages over competing destinations (Pike, 2002). In

the tourism industry, the positioning approaches vary according to the type of

destination; travel, hospitality and ancillary areas. Table 5.1 lists some of the

criteria to consider in tourism positioning.


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Table 5.1: Criteria in Tourism and Hospitality Positioning

Destination Hotels/Resorts Travel

Location features

Beach:- Serenity, privacy

Hill station:- Scenicfeatures

Historical importance:-site importance

City:- History, businesscentre,People & Culture:-

ethnicity & culturaldifferenceAssociation of historical

figuresActivities promoted

Service features Brand

features/value

Location:city, airportPrice

OwnershipActivities

Personality of theinstitutionEvent related Appeal

Service features

Cost/price

BrandConnectivity

ReliabiliiSafety

Customer serviceAppeal

Various features play a very important role in the positioning approach of

product. The table mentions how each component of the tourism industry c be

differently positioned.


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Q.4 What are the factors influencing Tourist Behavior ? Also discuss the

significance of Travel motivators in Tourists decision making process.

MOTIVATION IN TOURISM

National Tourism Organisations (NTO) and marketing agencies the world overare trying to understand why a tourist chooses one destination or

accommodation unit over another. Everyone is looking to attract more tourists

and increase the returns from tourism.

TOURIST BEHAVIOUR

In order to understand tourist behaviour and their decision-making process, we

need to understand that the tourist is also a consumer - an individual who

obtains goods and services for personal consumption through a decision-making

process. Consumer behaviour as a part of the decision-making process isdiscussed in Unit 11 of this course. The study of tourist behaviour helps to

develop insight into the internal and external influences on an individual's

behaviour.

Yvette Reisinger in International Tourism: Cultures and Behaviours states that

the study of tourist behaviour is the study of tourists' mind, body, spirit,

environment and feedback:

i) mind, comprising cognition (thinking, knowing, understanding, perceiving, storing, processing, and retrieving information from the

environment); affect (feelings, emotions, attitudes, predispositions),

and conation (intentions to act and behave in a specific way, reasons

for doing things, willingness and volition);

ii) body, in terms of overt behaviour,iii) spirit, the vital principle or animating force within living beings w)iv) environment, which influences tourist behaviour, andv) feedback (what a tourist receives from the environment).

The study of tourist behaviour helps us to understand the complex process of

interaction of the elements that influence the tourist motivational process.

Factors Influencing Tourist Behaviour


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The travel decisions of any tourist are affected by both internal and external

forces. Some of the factors are discussed below.

1. Psychographics Tourists with an innovative approach may be defined as a

relatively small group of holiday seekers who are the earliest purchasers of newproducts. These innovators are enthusiastic about their experiences, encourage

others and play the role of opinion leaders. Such tourists are likely to take

advantage of special promotional offers of travel agents and are socially

accepted.

Psychographics refers to intrinsic qualities of an individual tourist. On the basis

of these qualities we can categorise them as innovators and non- innovators.

Non-innovators are tourists who can be dogmatic. Such individuals bear a high

degree of rigidity towards information, unfamiliar and contrary to his or her belief system. In terms of social character, the non innovators can be inner

directed tourist who tends to rely on their own values and standards regarding

the choice of the destination while the innovators are outer directed and tend to

look for direction and advice in the planning of holidays.

2. Social Status The division of members of a society into a hierarchy of

distinct social classes or statuses exists in all societies and cultures. Social status

is usually defined by a status that members of a specific class possess in the

society relation to members of other classes. Status is most often defined interms of variables such as family income, occupational status and educational

attainment.

Attending fashion shows, purchase of expensive decorative handicrafts, pursuit

of leisure and usage of credit cards are some of the indicators of social class

Unit during travel. Social status also defines the holiday plan and choices of

destination. Some destinations are always on top of the list for vacations, such

as visits to major cities of Europe and so on.

Social status is not fixed; in most cases, an individual has upward mobility due

to opportunities for self advancement. Therefore, preferences and consumer

behaviour keep on shifting and changing. Social status serves as a framework

and constitutes reference groups which influence consumer attitudes and

behaviour.


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3. Reference Group Reference groups serve as a frame of reference for

individuals in their purchase decisions. A reference group perceived as credible,

attractive or powerful can induce tourist attitude and behaviour change. For

example, when a tourist is concerned with obtaining accurate information aboutthe destination, they are likely to be persuaded by those they consider as

trustworthy or knowledgeable or whom they consider as sources of "high

credibility". The tourist is concerned with the acceptance or approval of others

they like, i.e. with whom they identify or who offer them confidence and thus

the motivation

For the choice of the destination of a tourist is influenced by the openion of

their reference group

Celebrities, such as movie stars, sports heroes and television personalities, are

another popular type of reference group. To the general public these celebrities

represent an idealisation of life that most people would like to live.

4. Family Life Cycle Traditionally, family is defined as two or more persons

related by blood or marriage who reside together. The family cycle is

conceptualised as a progress of stages through which most families pass,

starting from bachelorhood, honeymoon, family with full nest and dissolution.

The family decision for a holiday is also influenced by the extent to which the

husband/wife influences the decision, the role of children and the family

structure. The number and opinion of family members depends on the nature

and type of holiday.

Studies indicate that tourists in the bachelorhood and honeymoon stages are

heavily involved in entertainment activities. Families with two children - that is,

full nest - maintain an average level of employment during the holidays. In the

last stage, the level of involvement drops heavily. Unmarried career women are

distinct categories for which the travel agents are offering distinct products.


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TRAVEL MOTIVATORS

Travel motivators are factors that create a person's desire to travel. They are the

internal psychological influences affecting individual choices. McIntosh and

Goeldner have stated that basic travel motivators fall into the following four

categories.

i) Physical motivators, which are related to physical relaxation and rest,sporting activities and specific medical treatment. All are connected

with the individual's bodily health and well being.

ii) Cultural motivators, which are connected with the individual's desireto travel to learn about other countries, their people and their cultural

heritage expressed in art, music, literature, folklore, etc.

iii) Interpersonal motivators, which are related to a desire to visitrelatives, friends or to escape-from one's family, workmates or

neighbours, or to meet new people and forge new friendships, or

simply to escape from the routine of everyday life.

iv) Status and prestige motivators, which are identified with the needs ofpersonal esteem and personal development. These are related to travel

for business or professional interests, for the purpose of education and

the pursuit of hobbies.

Maslow's Hierarchy of Needs theory was also related to the hospitality and

travel industry by R.C. Mills and A. Morrision (1998).

NEED MOTIVE TRAVELL[FERFURE

P'ERENCESPhysiological Relaxation y Escape

y Relaxationy Relief of tensiony Sunlust :y Physicaly Mental

India Tourism:

Incredible India

Malaysia Tourism

Malaysia Truly Asia

Goa

365 days on a holiday

Safety Security Health Recreation

Keep oneself active and

Punjab National

Bank:


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healthy for the

futureThe name you can

bank upon

Belonging Love Family togethernessEnhancement ofkinship relationship

Companionship Facilitation of social

interaction Maintenance of

personal ties Interpersonalrelations

Roots Ethnic

Show one's affection

for family members Maintain social

contacts

Club Mahindra

Holidays:My happiest holidays

Esteem AchievementStatus

y Convince oneself of:one's achievements Show one's

y importance to others:y Prestigey Social recognitiony Ego-enhancementy Professional/

business

y Status and prestige

British Airways

The way to fly

Malaysian Airlines

Going beyondexpectations.

ITC Mughal:

Experience theMughal Lifestyle in acontemporary setting.

Self actualization Be true to ones

own nature Exploration and ,

evaluation of self

Self-discovery

Satisfaction of innerdesires

ITC Royal Gardenia

Bengaluru: World's

largest & Asia's first

LEED (Leadership in

Energy &Environmental

Design) PlatinumRated Hotel

Source : Alastair M. Morrison, Hospitality and Travel Marketing based on Mill,

Robert Christies and Alastair M. Morrison. 1998. The Tourism System : An

introductory Text 3rd

ed. Dubuque, Iowa : Kendall/Hunt Publishing Company.

Used with permission.


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TRAVEL CAREER LADDER

The model of tourist motivation for Philip Pearces (1998) is based on Maslow

Hierarchy of needs theory . Pearce postulates the existence of a Travel Career

Ladder where tourists development varying motivation of :

a) relaxationb) stimulationc) self esteem and development andd) fulfilment

In Pearce's model, motivations are divided into two categories, The needs may

be self centred or directed at others. Thus, for example, relaxation may be a solo

exercise where the holiday maker seeks quiet, restful time alone, or an exercise

where he/she seeks relaxation in the company of others. It can be hypothesisedthat for those undertaking their first overseas trip,, the major concerns may be

those of wanting relaxation within a safe environment. However, as they

become more experienced, they may become more curious about the culture and

history of other places, and possibly even seek a sense of identification either

with places, or establish a sense of Self though having knowledge of differences

between cultures. They will travel more, and amy do so independently. In due

course, as they proceed through the upper needs of the motivational hierarchy,

their concepts of self and understanding become better formulated for their

becoming more actualized. They engage increasingly in more intellectualpursuits, wanting to know about the history and culture of places, perhaps even

wanting to learn foreign languages. As Yiannakis and Gibson (1992) state, the

tourists became less risk-averse and seek more stimulation.

No matter what the motivation of a tourist or where the tourist is on the TCL,

important that motives can translate into actual travel only when the tourist s

through a decision making process, discussed in the later Units.


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Q. 5 What is Domestic Tourism ? Discuss the various forms of Indian

Domestic Tourism.

INTRODUCTION

People have been travelling since time immemorial, yet tourism today isdistinctively a 211 century phenomenon. The terminology used by travel

professionals today while describing a particular movement of a traveller was

not used earlier. The World Tourism Organization, the apex body for tourism,

has categorised tourism into three main groups: domestic tourism, comprised of

residents travelling within their own country; inbound tourism, comprised of

non-residents travelling in a given country; and outbound tourism, comprised of

residents travelling to and within another country.

Two units will deal with the first category, i.e. domestic tourism, with respect toIndia as a case study. This Unit, on Domestic Tourist Markets (Traditional), will

focus on statistical analysis of data up to 2004; the Unit on Domestic Markets

(Emerging) will focus on tourist movements from 2005 onwards. The present

Unit will further define domestic tourism and will also focus on understanding

the Indian domestic tourism market. This unit will further discuss the profiling

of domestic tourists and its relevance with respect to attracting tourists to a

destination or to develop and promote a new destination for the domestic

tourists.

WHAT IS DOMESTIC TOURISM?

The evolution of domestic tourism has created a number of opportunities that

helps in identifying the true potential of a country's tourism - related wealth. It

is commonly understood that domestic tourism adds towards the country's

economic growth. Yet, in technical terms, we do not know what actually

domestic tourism is. Let us start by discussing some of the definitions of

domestic tourism and some of its basic characteristics.

The United Nations in its "Recommendations on Tourism Statistics" states

"Domestic tourism is that form of travel which involves residents of the given

country travelling only within this country". The Encyclopaedia of Tourism

says, "Domestic tourism involves people visiting destinations within their own

country's boundaries". According to Indian Tourism Statistics 2008, the

following definition is accepted in India for domestic tourism.


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A domestic tourist is a person who travels within the country to a place other

than his/her usual place of residence and stays at hostels or other

accommodation establishments run on a commercial basis or in

dharamshalas/sarais/ inusafirkhanas/agrashalas/choultries etc. for a duration ofnot less than 24 hours or one night and for not more than 12 months at a time

for any of the following purposes:

pleasure (holiday, leisure, sports, etc.)

pilgrimage, religious and social functions

business conferences and meetings

study and health.

The following travelers are not regarded as domestic tourists:

persons arriving with or without a contract to take up an occupation or engage

in activities remunerated by the State/Centre

persons coming to establish more or less permanent residence in the State!

Centre

persons visiting their home towns or native places on leave or on a short visit

for meeting relations and friends, attending social religious functions etc. andstaying in their own homes or with relatives and friends and not using any sight-

seeing facilities.

foreigners resident in India.

The reasons for travelling may vary, but travel is always made within the

periphery of their own country. This involves a higher degree of hassle-free

travel as it does not involve any formalities of passports, visa/currency

exchange or other documentation. The only obligation is with regard to some

sensitive areas where a tourist permit is required, e.g. places like Arunachal

Pradesh and Mizoram or an Inner Line Permit to pass through Nagaland if you

visit Manipur via Dimapur/Kohima. It is an obligatory document issued by the

Government of India to allow inward travel of Indian citizens into a

protected/restricted area for a limited period. Tourism also acts as a channel for


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national integration that helps in achieving understanding between various

linguistic, religious, and communal groups in different parts of the country.

It is also a very important part of the Indian tourism industry especially since it

act as a channel for national integration> Domestic tourism helps in achievingunderstanding between various linguistic religious and communal groups living

in different parts of the country. a few pointers in favour of domestic tourism

are

1) Lack of documentation while travelling thus allowing relatively easytravel. The only documentation required, at times, is a permit for visiting

some sensitive areas.

2) It is an activity where a resident of the country personally contributes tothe country's economy.3) Domestic tourists' expectation can be met relatively easily as they are

aware of the country's realities. At the same time, relatively lower

expectation than international travelers' means a lower pressure on the

destination's infrastructure and facilities.

4) Economic recession/international developments/global politics/epidemicsin international circles have a relatively low impact on domestic tourism.A country can also rely on its domestic tourists during tough tourism

seasons.

5) The socio-cultural impact due to guest-host interaction is relatively less,since people usually use a common language and the culture is mostly

similar.

Indian Domestic Tourism A Brief Overview

India has been a seat of learning and a major pilgrimage centre for centuries. As

a result, several centres of knowledge, culture, learning and religious worship

have developed all over the country, giving further impetus to the mass

movement of people from one place to another. Ancient scriptures talk about the

various forms of travel undertaken, such as


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tirthatan - pilgrimage/travel for religious purposes

paryatan - travel for pleasure

deshatan - travel across borders for business or other purposes.

Over t0ime, the development of traditional industries and trade created a newstream of travelers which led to the establishment of several trading routes

frequented by traders from distant places. Ancient rulers recognised the

necessity of wayside facilities and build inns, sarais, dharamshalas and caravans

for the benefit of these travelers and traders and in turn earn the support of their

subjects This turned out to be a significant move in the development of the

country's travel and tourism infrastructure, which probably laid the foundation

to the movement of domestic tourism in India.

A new phase was witnessed in the Indian Domestic Tourism during the rule ofthe Mughal Dynasty. Pleasure tourism was promoted by Mughal rulers, as they

displayed their interest in building luxurious palaces and gardens in places of

natural scenic attraction in various parts of the country. During British rule,

Several hilt stations were developed, which became the core of Indian leisure

tourism Bntishets also laid foundation for the vast Indian railway system,1 has

helped both leisure travelers and businessmen over the decades. b business

tourism experienced a qualitative and quantitative change by not the

development of railways but also at the identification of export/Import li at portturned out a significant move in the development of the country's t and tourism

infrastructure, which probably laid the foundation to the move of the domestic

tourist in India.

A new phase was witnessed in Indian domestic tourism during the rule of the

Mughal dynasty. Pleasure tourism was promoted by Mughal rulers, as they

displayed their juiciest in towns. The construction of circuit house, dak

bungalows and forest ledges had the infrastructural foundation for leisure and

wildlife tourism Thus, a variety of specific developments over time gave new

meaning -direction to domestic tourism.


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DOMESTIC TOURISTS TRAVEL TRENDS

India is a fascinating and incredibly multifarious country. With its 5000-veal old

civilisation and a population close to 1.1 billion that speaks one or more of 22

officially recognised languages, India is one of the most culturally diverse

countries in the world. India's vibrancy cannot be ignored either by theinternational or domestic tourists.

According to Indian Tourism Statistics, 2004, there has been a continuous

increase in domestic tourist visits. The year 2004 witnessed a growth of 18.5

,percent. over the year 2003, while 2003 showed 14.6 percent growth over 2002

The table given below gives you the details of the top three states domestic

tourist arrivals from 1999-2004.

Table 13.2: Domestic tourist arrivals, top three states, 1999-2004Year Uttar Pradesh Andhra Pradesh Tamil Nadu

1999 45723700 42316882 21079141

2000 64830000 47998204 22982262

2001 68790000 52533647 23812043

2002 71490000 60487370 39873160

2003 80020000 74138729 40213060

2004 88371247 89440272 42279838

Source: - Ministry of Tourism, Govt. of India and Compiled from the statistics

released by: Lok Sabha Unstarred Question No. 2022, dated 15.12.2003 & Lok

Sabha Starred Question No.270, dated on 20.12.2004 & Rajya Sabha Unstarred

Question No. 2256, dated on 13.12.2005.

DATA ANALYSIS

Data analysis shows that the state of Uttar Pradesh has consistently held the top

position15in terms of domestic tourist arrivals. Uttar Pradesh, having a mix of

cultural, natural and religious tourism products, has held the interest of domestic

tourists for a long time. The city ofAgra with its Mughal architectural delights,

especially World Heritage Site Taj Mahal, has always attracted tourists. At the

same time Hindu pilgrimage tourism has flourished in the presence of the river


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Ganga flowing through the state as its backbone. Mathura, Vrindavan and

Varanasi, the oldest living city, has attracted both for its religious as well as

cultural flavours. Buddhist pilgrimage centres such as Samath and Kushinagar

has encouraged tourists to travel these once remote cities. The natural beauty of

Uttar Pradesh, has given a holistic image to UP. The Tourism slogan of UP alsosays "Soul of India".

In the year 2004, a fall was noticed in the number of tourist arrivals in the state

that benefited was Andhra Pradesh. The state of the famous Tirupati Balaji

Temple the richest temple with a large number of devotees visiting each year

has over the years become popular with tourists. The state is not only a

pilgrimage centre; it has famous cuisines and architectural monuments such as

the Charminar to offer tourists. The state has recently started attracting younger

tourists by promoting adventure destinations and activities available in the state.The cities of Hyderabad, Vishakhapatnam, Wanangal are nature- and adventure-

based destinations. The Borra Caves, red hills and Belum Caves add to the

Charm of the state. The tag line rightly mentions Andhra Pradesh as "Essence of

Incredible India'.

The third state that tops the list of domestic tourist arrivals is Tamil Nadu The

state's promotional campaigns and marketing strategies can be said to be tii

major reason for attracting a large number of tourists every year and for

maintaining its rank at the third position. The year 2004 showed over 42 lakJ1domestic tourist arrivals in the state, almost double the number of tourists ill

1999. The state has some very popular hill stations like Ooty, Kodaikanal ancj

Yercaud. Blessed with Nature's bounty, Tamil Nadu is a paradise for nature

lovers. The famous tea gardens of the Nilgiris draw many tea lovers to the state.

Its World Heritage Site of Mallapuram, snake farm, Kanchipuram Sarees,

Meenakshi and Tanjore temples as well as Chettinad cuisine offer a rich cultural

heritage to its visitors.

All the three states also possess a rich cultural treasure trove in the form of

music, dance, textiles and art. Yet the marketing efforts of recent years have

given a distinct identity to these states and brought more destinations to the

tourists. They also are eager and willing to experience a place and culture

similar yet different from their own.


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Q.6 Define and discuss the various methods of Forecasting in Tourism.

INTRODUCTION

Forecasting is a vast field related to every sphere of our lives and encompassesthe approaches used to determine the future. Forecasting is used in every field

politics, crime, health, business, conflict, tourism, etc. It can be of a variety of

types, and can be as simple as predicting the growth of a business in five years,

or as specific as determining the labour turnover of a small department of a

large organisation. It can be used to determine and formulate a strategic policy

to fight a competitor over a fixed time. Forecasting needs to consider trends; for

example, recession may change the phenomenon of tourism-generating markets

The loci of the generating market may tilt towards the host if economic

parameters and trends are used for forecasting. This Unit will introduce you totourism forecasting and its methods.

DEFINING FORECASTING

Forecasting, simply, means 'predicting the future'. It is the process of deriving

results about things for which no clear future signs are currently visible. Often,

"Prediction" is used simuitaneousiy or interchangeably with "forecasting" which

is incorrect. Prediction is a general term or an estimate whereas forecasting

is specific.

Often, forecasting is also confused with planning. But forecasting is differ from

planning. Forecasting is estimating what the future would be like planning is

shaping the future as one wants it to be. Planning under the conditicjr4 of

uncertainty leads to the use of forecasting. Planning is so concerned wiz,-

forecasting that it may depend upon forecasting from the formulation of

problem to the use of the forecast.


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FORECASTING METHODS

Forecasting, as other research methodologies, has a variety of methods. The

objective of the forecast and the type of data available determines the forecastmethod.

Every business is dependent upon forecasting and uses forecasting methods.

Tourism is no exception. The perishable nature of the tourism product makes

accurate forecasts mandatory for conducting business. Forecasting also assists

in planning - both short-term or few months and long-term or few years. This

helps avoid surpluses or shortages of services/products. For example, an

increase in tourist arrivals as per forecast can give a National Tourism

Organisation (NTO) and the accommodation sector time to prepare for it. Iteven helps small enterprises to reduce uncertainty and improve entrepreneurial

decision-making process by means of getting prepared for the tourist season.

For example, a resort that is being developed in phases can plan its

infrastructural development process and other tourist activities and requirements

to position itself either as a weekend getaway or a destination for summer

vacationers, based on forecasting.)

Forecasting empowers people by providing them timely tools to modify or alter

variables and have the desired result. Variables in case of tourism can be many -for a tour operator it might be the length of the tour packages or the number of

activities to be included in the package or deciding on a destination I itinerary

for preparing a tour package. While for a hotel variable can be the demand for a

particular facility that need to be added such as internet facility in guest room or

additional of a particular to the menu in anticipation of tourists visiting from

that region or country.

The broadest classification of forecasting techniques can be into qualitative

forecasting research methods and quantitative forecasting resea'-' methods. The

quantitative methods can be divided into causal methods and non-causal

methods. Some popular methods of forecasting are:


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i) GENIUS FORECASTING: This method fills the gap between scientific

forecasting and non-scientific forecasting. Science fiction writers, astrologers,

psychics, etc. are well explained by this method; the lacuna is that it is

impossible to determine a good forecast until the event occurs. The core

sciences i.e. scientific analysis do not recognise this method.

ii) TREND EXTRAPOLATION: The use of trends and cycles dominates this

method. Mathematical techniques are used to relate a trend to the future. The

drawback is the assumption that the forces that created the past will exist and

operate in the future. This can be valid for short-term forecasting but not for

medium-term or long-term forecasting.

iii) CONSENSUS: This requires the involvement of experts in specific fields. It

always involves more than one person and requires each person to be an expertin his particular field. All the views/opinions are synthesized and a final forecast

prepared. This may involve brainstorming sessions but the argumentative skills

of a person, rather than her/his expertise, may determine the result. The

responses and respondents remain anonymous.

iv) SIMULATION: These use analogs to model systems. Analogs can take a

variety of forms - mathematical, mechanical, metaphorical, etc.

v) CROSS-IMPACT MATRIX: Events and developments have an effect on

each other and share a relationship. Occurrence of one event can affect the

likelihood of other events. This assists in looking at the relationships between

events rather than just focusing on any single variable.

vi) SCENARIOS: Scenarios are narrative in nature and describe a potential

course of events. This method assumes that events are inter-related. It is like a

script that is written keeping one optimistic scenario and one pessimistic

scenario in mind. These two scenarios assist in provoking the thought-process

of the decision-makers.


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vii) DECISION TREES: These are graphical devices illustrating structural

relationships between alternatives. They are dichotomous (Yes/No) in their

initial stages but became complex over a period of time. Information technology

has further assisted in creating complex decision trees. It assumes that an

expected value of a discrete variable can be calculated as the average value forthe particular variable.


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Q.7 Discuss the process of decision making.

INTRODUCTION

Tourist decision making is the process by which a tourist decides on buying a

particular tour package, or books a particular type of room in a hotel or even atravel ticket on a particular airline. What motivates the tourist to choose a

particular service is of the utmost interest to a person studying tourist behaviour.

As any tourist who purchases a service and uses it is a consumer, he/she will

display consumer behaviour and will go through the consumer decision-making

process while purchasing any tourism service.

Belch and Belch define consumer behaviour as "the process and activities

people engage in when searching for, selecting, purchasing, using, evaluating,

and disposing of products and services so as to satisfy their needs and desires".Consumer behaviour is the behaviour that consumers display in the decision-

making process when facing several choices.

Study of consumer behaviour is the study of when, why, how, and where people

buy (or do not buy) products or services. It attempts to understand the buyer

decision-making process, both individual and group. It studies the

characteristics of individual consumers - such as demographics and behavioural

variables - and also tries t assess the influences on a consumer's buying

decisions.

This Unit will try to understand the consumer behaviour as displayed by the

tourist In Unit 6, you have studied motivation and travel motivators. This Unit

tries to understand the process of tourist choosing i.e. deciding on a particular

service or product among many alternative choices. An understanding of the

decision making process will help you understand how to reach your target

market better.

PROCESS OF DECISION MAKING

An understanding of how consumers decide on what to purchase is critical to

the success of a product or service. There are numerous theories and models

describing the consumer purchasing decision process. The basic concept behind

these theories and models are similar. The customers go through a five-stage

decision-making process in any purchase. These stages are described below.


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1. Problem Recognition: This is the first and most basic step in the purchase

decision process. The buying process starts with need recognition. The need

may be perceived or real. The problem recognition process occurs every time

consumers decide they need something. The need can be of new clothes, of anew sofa or of a new home or a vacation. The marketers can effectively initiate

a consumer's awareness of a need with the right advertising campaign.

2. Information Search: In this stage the consumers gather information on a

prospective product. A consumer can obtain information from several sources:

Personal sources: family, friends, neighbours, etc.

Commercial sources: advertising; salespeople; retailers; dealers;

packaging; point-of-sale displays

Public sources: newspapers, radio, television, consumer organisations;

specialist magazines

Experiential sources: handling, examining and using the product

The extent of the information search is typically related to the cost of the

product or service and the consumer's prior knowledge and experience with the

product or service category. If a consumer is considering the purchase of anapartment, then they will collect information and research the builders offering

apartments. However, the information search may be less extensive when the

consumer considers purchasing less expensive or daily-use items. Similarly, if a

consumer is planning his or her first trip abroad they will search for and collect

more information compared to the information collected for domestic travel.

Marketers can significantly impact the decision process by providing product

information. Detailed product information, available product features/attributes

and benefits may satisfy potential consumers' need for information.

3. Evaluation of Alternatives: It is the process where consumers determine

what features they would prefer. Consumers evaluate and assign a value to

various product features and attributes. If a consumer plans to purchase an

automobile, then he will evaluate its features and decide on the purchace based


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on the features he desires in the automobile. Since there is generally a cost

associated with the various features, consumers have to rank the features and

decide which one is most important to them. If the consumer is not satisfied

with the selection or the evaluation of the product criteria, they will revert to the

information search.

4. Purchase Decision: It occurs when the consumer actually makes the

purchase. It includes the service or product, method of payment, package,

location of purchase and all other factors that are associated with purchasing the

service or product. This step is directly influenced by marketers. The marketing

campaign is considered effective if the consumer purchases a particular product

or 'service; for example, he/she choosing a particular five-star hotel among 10

five-star hotels in a city.

5. Post-Purchase Evaluation: The final stage is the post-purchase evaluation

Of the decision. It is common for customers to experience concerns after

making a purchase decision. Having bought a product, the customer may feel

that an alternative would have been preferable as they do not understand

whether they have made a good or bad decision. Having used a service,

customers will evaluate it against their expectation from the service based on

their information search.

Marketers can manage the post-purchase stage by never promising more thanwhat can be delivered. Monitoring customer satisfaction is very vital in the

service industry as it leads to increase in repeat customers and word-of-mouth

publicity.

All the above stages of the decision-making process are common toy purchasing

decision, including decisions regarding any tourism related service.

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