Download - Service Sector Marketing Mix in Tourism
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.