2nd Chapter Tourism &Travel Service

introduction to Tourism

• there are several reasons for a tourist to visit a place of some intrest.

• the visit may be due to historical place, religious significance, shopping. some times it could be man made tourist attraction. but to creat a need to visit to a destinstion of tourist intrest is tourism marketing.

• the activities that are managed to boost tourism services is called tourism management

Contd...

• once an idea of visiting tourist destination is sold to the tourists every one involved-transporters, hotel, tourist agents and other allied services entities are benifited, in addition to the tourist.

• this chain reaction generated gives a fillup to the developement of tourism.

• indians has realised the role of tourism in economic developement. tourism has emerged as the one of the largest foreign exchange earning industry in india.

Evoluation of tourism industry

• india has been a late starter in tourism. understandably, immediately after independence the focus was on key areas like agriculture, industry,irrigation, infrastructure and the social sectors.

• tourism started receiving attention in the last decade.• indian governement proposes to spend over RS 2900

crore in the next five years to boost the growth in this sector.

Concepts of tourism

• the tourism helped to generate employement for the masses who could contribute to the growth of industry.

• government policies gave encouragement and the contribution.

• professionalism in conduting tours is required to tap vast potential in business world.

• professional management of the activities will certainly help to capitalise on the opportunities that exist

Nature of tourism

• the touriam is a major industry throughout the world today. • in view of developement taking place all over the world

more people are travelling to for away place and the frequency of travelling has increased more than ever before.

• there are four main characteristics in tourism industry.• 1.inflexibility• 2.perishable• 3.fixed location• 4.large financial investment

Contd...

• 1.inflexibility:- the tourism industry is highly inflexible. ex:-the capacity of a hotel in terms of rooms,or seating capacity in a transport facility is fixed and it is not possible to meet sudden demand seasons.

• 2.perishable:- the service provided by the tourist industry is highly perishable. Ex:- an unused hotel bed or a vacant seat in a aeroplane leads to non utilisation of capacity which has a bearing on the profit of the organisation

• 3. fixed location:- the destination is fixed and efforts are required to make the potential tourist to visit the location.

• 4.large Financial Investment:- Modern tourist establishment requires large financial investment both to start and to maintain the services making it 'high risk' services as the rate of return is critically important.

Tourism

Tourism is travel for recreational, leisure, or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".[1]

What is Tourism

• "the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs."

• Tourism is a collection of activities, services and industries that delivers a travel experience, including transportation, accommodations, eating and drinking establishments, retail shops, entertainment businesses, activity facilities and other hospitality services provided for individuals or groups traveling away from home.

Contd...

The World Tourism Organization (WTO) claims that tourism is currently the worlds largest industry with annual revenues of over $3 trillion dollars. Tourism provides over six million jobs in the United States,

making it the country's largest employer.

Tourist:- the word tourist is derived from "tour".tourists are the voluntary temporary travellers.tourists are persons travelling for pleasure and

business purpose.

Contd..

Foreign Tourist: Any person visiting a country, other than that in which he/she usually resides, for a period of at least 24 hours.

Travel: The act of moving outside one's home community for business or pleasure but not for commuting or traveling to or from school.

Visitor: Any person visiting a country other than that in which he/she has his/her usual place of residence, for any reason other than following an occupation remunerated from within the country visited

Services and Tourism

• Service and Tourism go hand in hand• Growth rate of services sector faster than any

other• Tourism is the leader in the production of new

jobs• Tourism has developed an important part of

the economic foundation of many countries

Medical tourism in India

Medical care in the USA and private health care in UK is very expensive. India has well-trained doctors who will work for a lower fee than they could expect abroad.

Medical tourism offers people the option of knee replacements, hip replacements, heart care, cosmetic & dental surgery in India.

Hundreds of people have treatment in abroad, saving them a great deal of money in treatment costs.

Accommodation Providers

• Hotel chains

• New trends, such as budget hotels

• Bed and breakfast

• Youth Hostel Association

• Villas and country houses

Visitor: Any person visiting a country other than that in which he/she has

his/her usual place of residence, for any reason other than following an

occupation remunerated from within the country visited (United Nations

Conference on International Travel and Tourism, 1963).

Market segmentation is a valuable technique for the following reasons

• better understanding of customer needs.

• better understanding of competative situtations

• exact measurement of goals and performances.

• Narrow sense– Consists of what the tourist buys

• Wider sense– Combination of what the tourist does at

the destination and services used

The Tourism Product

• Characteristics of a tourism product:– Service, which is intangible (e.g., cannot

be separated physically)– Psychological in attraction– Varies in quality and standards– Supply side is fixed (e.g., more hotel

rooms cannot be instantly created to meet demand)

The Tourism Product (cont’d.)

• Major types:– Internal tourism

• Residents of a country visiting other parts of their own country

– Domestic tourism(inbound)• Inbound tourism plus internal tourism

– inbound tourism is when someone/non-resident comes to your country

Characteristics of Tourism

International tourismInternational Tourism is when people travel globally

outside of their region and home country. This means a temporary movement of people from the resident place to another place for different reasons such as recreational, health,business or some other reason.

Outbound tourismoutbound tourism is when someone goes out of their own

country. it can for holidays, business, trip etc.

Characteristics (cont’d.)

• Several interacting industries make up the tourism system, including:– Transportation

– Lodging

– Attractions

– Foodservice

Tourism Industry Sectors

4P's of Marketing Mix under Tourism Service

• By taking a fresh look at these various aspects of your company you will be sure that all of your work supports your main goal – selling your services to your customer.

• It will also help you answer more fundamental questions such as; “who are your customers?”, “how do you reach your customers?” and “what are the needs of your customers?”, to name a few.

• The 4 traditional P’s and the implications in the tourism business

Product of tourism

• When thinking about a tourism product, it’s important to differentiate between what the customers actually buy (the promise of a product) and the product – mainly a service – that they receive after the purchase (the actual product).

• The purchasing decision made by the tourist is based on the promise of the product – a promise established by what she or he sees in your promotional material.

• For example, the product “Amazon Lodge” – shown below – is the combination of tangible goods (e.g. the rooms, the swimming pool, the birds) and intangible experiences (e.g. the service, the activities). Obviously, the product is thousands of miles away and you are not buying the property, therefore the actual product you buy is the promise displayed on the brochure (while the brochure is a promotional channel).

Promotion Mix

• Promotion is the activity of telling your market about your product. In the example of the Amazon Lodge, you are using a brochure to tell your customers about a tourism product in the Amazon.

• Nowadays, promotion is replaced by communications, which represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer.

Place Mix

• Placement is synonymous with distribution. It refers to providing the product at a place, which is convenient for consumers to access.

• In tourism, the product is not distributed to the client, but the clients travel to the product. Thus, unlike physical products, tourism distribution is more related to where you distribute the informaton about the service (trade shows, resellers, webpages, etc.).

• In the example of the brochure of the Amazon Lodge, the placement may be your office, a trade show in London or to potential customer´s houses (by direct mailing).

Price Mix

• Price is what the business charges for its’ tourism product as defined by the interacting forces of supply and demand.

• At a practical level, tourism enterprises can determine their prices by analyzing:

• The cost of running the business;• The willingness to pay by the demand;• The prices of the competition;• The commission to be provided to resellers.

3 more P's of service Marketing Mix

• People

• Process

• Physical Evidence

Tourism Development and its role in Local Economic Development (LED)

• Tourism is one of the fastest growing industries worldwide in past two decades

• TD has multidisciplinary character and connecting different economical sectors

• TD has positive influence mainly to a traffic infrastructure, construction industry, banking etc.

• In terms of financial international trade turn over is located on the third place (after petroleum and cars industry)

• Economic contribution of tourism captures Tourism Satellite Account (TSA)

TD

• Build infrastructure contributes to a LED and urban infrastructure recovery

• Creates new jobs• TD can be considers as a polarize, induce or

neutral sector in the region

Benefits of tourism

• Economic aspects (creation of new jobs, a source of capital, increasing competitiveness)

• Social aspect (improvement of facilities and level of public services, revival of the folklore and local tradition etc. )

• Environmental aspect (ensuring of environmental stability)

Why Tourism in your region?

• The Economic contribution of tourism to the region - creation of added value of purchased goods and services in the region

• Services are:

- at primary level (accommodation, catering, rental, transport etc.)

- at secondary level (above standards and additional service)

Key types of tourism

• Leisure tourism: describes tourism for the main purposes of recreation and leisure (residential vacation and also day trips) – adventure tourism, ecotourism, heritage tourism, wine tourism, packaged beach vacations.

• Health tourism: travelling for health reasons. This includes visits to spas and health and fitness centers, as well as travelling to receive treatments which require more specific medical intervention such as cosmetic or medical surgery.

Contd…• Educational/study tourism: travelling to attend an academic institution in order to gain qualifications or participation in a tour for the purposes of learning.

• Business tourism: travelling to attend an activity or event associated with business interests. A key component is the MICE sector: meetings, incentives, conventions and exhibitions.

A tour operator definition

• EU Package Holiday Directive

• ‘a pre-arranged combination of two or more components when sold... at an inclusive price …includes overnight accommodation’

• A tour operator = the organiser of a package holiday

The role of the tour operator

• Purchase in bulk components of a holiday

• Package them into a standardised repeatable product

• Brand them into a single entity

• Offer them to the public at an inclusive price

• Middleton

• How does this differ from the role of the travel agent?

An agent

• Acts for a principal (the producer of the product)

• provides a service for a fee or a commission

• in British usage a travel agent is someone who sells travel and holiday packages for a commission, usually from retail shops

• This distinction is becoming blurred

Understanding the tourism system

Exercise

• You are managing a hotel in a destination

• Draw a map of the intermediaries involved in marketing your rooms to UK tourists

• How do they add value to the end-product?

• What does each party get from the interaction?

• How easy would it be to find a substitute?

The Travel & Tourism Industry

• Travel and tourism is one of the world’s largest industries

• It is also one of the most fragmented

• The two aspects of the industry can be viewed separately, as many of the players are involved in both

• Let’s look at each part of the industry on its own

Distributors

Distributors

• The people, groups or firms that deliver the products and services of travel to consumers.

• These include:

• travel agents (business and leisure)

• travel operators selling direct to the consumer

• firms selling on the Internet

• call centres handling customer service

Regulatory Bodies

• Organizations' set up to oversee the industry, either:

• Trade associations such as ABTA (Association of British Travel Agents)

or

• Statutory bodies such as the CAA (Civil Aviation Authority)

Public Sector Organisations

Public Sector Organisations

• Government departments with responsibility for the industry:

• Department for Transport (DfT)

• Department for Culture, Media & Sport (DCMS)

• Foreign and Commonwealth Office (FCO)

Transport

Transport

• Delivery of travel products and services by:

• Road

• Air

• Sea

• Rail

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Road Transport Services

• Road transport provides basic infrastructure in connecting people of remote village to the mainstream of national life. with the invention of a new transport medium that is motorcar,the entire shape of the tourism industry was transformed.

• it becomes the most promising and suitable for short and medium distance.

• the inter state bus system is well developed and the quality of buses varies. they fall into the category of ordinary, semi-deluxe, deluxe and air-conditioned coaches.

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Contd...

• all information is available at bus-stands. taxia,car rental systems; matador type van are other services in road transports

• The developement of road transport is bringing about a fundamental change in the developement of tourism in the growth of resorts, hotel and other services. the automobile provides greater freedom oftravel and choice of destination.

• the indian roads are classified into the following four categories.

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Contd....

• National Highway:- these roads are primary roads of india. they connects big citiesand big industrial centres. they are maintained by central government.

• State Highway:- these roads connect all important industrial,trade and commercial centres of the state and national highways. they are maintained by state government.

• District Roads:- these roads link important industrial and market places of the district and local railway station.

• Village Roads ;- They connects villages or groups of villages with each other and to the nearest district road and other main highway

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Importance of road services.

• importance of road transport services in india is recognised by the advantages it possesses.

1.they can easily connects any part of the country,unlike railways.

2.road transport is complementary to raiways by providing feeder(A container filled with food for birds or mammals.) service.

3.it is more flexible in operation compared to other modes of transport.

4.road transport can provide door to door service.

5.the chances of delay, damage or loss are less in road transport.

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Contd...

6. this is better means of transport to carry perishable articles like vegetable, milk or fruits to reach market places well in time.

7.Road transport does not require heavy capital for operation.

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Marketing Mix for Road Transport

• Product:-Road transport corporations, inter state road transport organization or travel agencies/individual engaged in road transport business to carry passengers or goods from one place to another roads as well as vehicles playing on these roads need up gradation and regular maintenance of roads includes drainage, provision of road side amenities,landscaping/horticulture etc...and need special attention service sector management.

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Price..

• For state road transport corporations, pricing structure cannot be changed with a change/hile in the prices of the input. this affects their financial health and it refelects on the qualityof services offered profit making private organisation can change prices according to cost incurred,seasonal demand,emerging trends etc..

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Road and Rail Services

• in transport services there are many segments. basic classifications are

• land transport• sea transport and • air transportall these three modes are used by different categories of people

for different purposes. this necessitates the segmentation of transport market.

the segmentation considers the factors such as region, age, the type of commuters,(someone who travels regularly from home in a suburb to work in a city) geography, distance, rural, urban, economic condition of people, etc..

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Contd...

• the type of transport to be operated depends upon the requirement and changing needs of the segment. in land transport. two major modes viz.., railways and road transport are playing a significant role

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Rail Transport Services

• The first organized rail transport began in the year 1841.

• Railways are most suitable for long distance travel. it is a fascinating(capturing interest) experience. it passes through towns,villages and green vegetation and takes one back into the glorious(bright) past.

• The railways can be considered one of the most powerful motives for mass travel in the 19th and 20th century's

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Indian Railways

• in india, railways have made use of technological advancement that has resulted in increased speed, comfort and carrying capacity.

• A high speed train such as rajdhani express is running b/w delhi-culcutta and delhi bombay track at the speed of 120 km per hour.

• in india, a tourist has to use railways facilities where ever he goes as not all the places are linked by air.

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Contd...

• indian railways is the world's largest railways system with staff strength of 1.7 million persons, which is the largest single employer in the world.

• it all began with a small journy from bombay to thane on a 34km track on 16th april 1853.

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Marketing Mix for Rail Transport

• Product- passenger traffic coaches (seating,berths,leg room,elbow room, double decks) reservations,lighting,catering,water,sanitation,bed rolls, medical aid services at the railway stations service sector management.

• Pricing-cost and value of service what the traffic will bear equal mileage rate priciple(fixed rate/km). the differential charges of zonal charging and suggestions to improve pricing for indian railways to make it more profitable.

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Place• Distribution of services to many remote aresa online

facilities,passenger's current status, enquiry fare, enquiry reservationbs, train b/w important stations, upgraded passenger scheme/chart,weekly availability at stations tatkal scheme.

• People-training for employees more than 200000 staff is imparted training every year, enabling its officers and staffs in acquring knowledge and new set of technical and managerial skills.

• A wide coverage, all age groups, all incomes levels, occupations office going, businessmen, short haul as well as long haul journey passengers service sector management.

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Water Transport Service

• india is a large peninsula (mass of land projecting into a body of water) bounded by sea on three sides, and is blessed with a long coastline extending to more than 7500km. to the east lies the bay of bengal, the arabian sea lies to the west, and the indian ocean lies to the south.

• regular passenger ships are available in most of the coastal states.

• sea journey is mostly used to reach the lakshadweep islands in the arabian sea,

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Contd...

• and the andaman and nicobar island in the bay of bengal.

• both these islands are a part of the indian subcontinent, and are also well connected by airways.

• a sea journey can also be undertaken totravel b/w the different port cities of the country. apart from taking a journey by sea, you can also hire a ship for fun trips in the blue water.

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Airline Transport Service

• For international travel, air travel is the second most popular mode of transport, which is next to automobiles.

• Air tarvel is attractive because of its speed and range and also as it offers status.

• in the international tourism, air travel has made a most valuable contribution. in the year 1952, the two-class travel was introduced which was made possible by the larger capacity of the new aircrafts. this made possible the lowering of airfares.

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Contd...

• this period was also remarkable for package holiday around air transport, the model for most of today's global tourism.

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Marketing Mix by Airline Service

• Product- On ground services, reservation counters, flight information display, check in flight services, free water, food, comfortable seating arrangement.

• Price- • Place- Booking offices of airways, travel

agents office, air-hostess, on-ground staff pilots, tour operating agents process, computerized reservation system.

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Contd..

• Process- Ticket booking, ticket processing, ticket delivery, Customer reaching the airport, boarding pass, security check inside the aircraft refreshments is served before he reaches his final destination.

• A pre-paid cab is also arranged for the customer's add-on journey from the airport.

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•Thank you