[G.P. Raju.] Tourism Marketing and Management(BookFi.org)

TOURISM MARKETING ANn MANAGEMENT

TOURISM MARKETING

ANn MANAGEMENT

Dr. G. P. Raju

M MANGLAM PUBLICATIONS

DELHI-II0053 (INDIA)

Published by :

MANGLAM PUBLICATIONS L-21/1, Street No. 5, Shivaji Marg, Near Kali Mandir, J.P. Nagar, Kartar,Nagar, West Ghonda, Delhi -110 053 Phone: 011-22945677;Mob.: 9968367559,9868572512 Email: [email protected] manglam. [email protected]

Tourism Marketing and Management

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First Edition: 2009

ISBN 978-81-906650-9-4

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Published by D. P. Yadav for Manglam Publications, Delhi-110053, Laser Typeset by Amandeep Singh Bansal (Graphic Era), Delhi-92, and Printed at Sachin Printers, Moujpur Delhi-53.

Preface

Tourism is now widely recognised as the world's largest, industry and its growth is creating rapid social, economic and environmental changes which require detailed understanding and measures to manage it. Tourism is now becoming a major area of study among students all over the world and its development and management hold many career opportunities for students.

People hold a variety of misconceptions about marketing. Most common is jts confusion with selling and a,dvertising. Selling and advertising are actually types of promotion which is only a component of marketing.

Marketing involves much more, including product/ service development, place (location and distribution), and pricing. It requires information about people, especially those interested in what you have to offer (your "market"), such as what they like, where they buy and how much they spend. Its role is to match the right product or service with the right market or audience. Marketing, as you will see, is an art and a science. According to the American Marketing Association, marketing is "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." Simply stated it is creating and promoting a product (ideas, goods or services) that satisfies a customer's need or desire and is available at a desirable price and place.

Tourism Management will equip you with the necessary

(vi)

skills from a management perspective which will be invaluable in seeking to understand what the tourism industry need to do to improve their competitive edge, grow their business and seek out new business opportunities.

Every care has been taken to include material in accordance with the course contents of the students at various levels of their studies. We are indebted to the various authorities on the subject.

Last but not the least my publishers who appreciated this book and brought this work out in a record time.

-Editor

Contents

Preface v

1. Tourism Marketing 1

2. Growth and Development of Travel and Tourism 21

3. Marketing of Hospitality and Tourism 45

4. Tourism and Accommodation 63

5. Categories of Tourist Statistics 96

6. Techniques and Strategies in Tourism Marketing 116

7. Marketing Promotion and Public Relations in Tourism 142

8. Marine Tourism Management for New Era 177

9. Development of National Parks and Tourism Marketing Strategy 237

10. Environmental Issues for Tour Operators 250

Bibliography 276

~~ 2~

Tourism Marketing

Evolution of the concept of Tourism marketing can be associated with the various business and social changes which have occurred since the introduction of industrialisation. Industrialisation had brought about the need for holiday and travel even in its early stages as the workers felt the need for temporary rest and relaxation after long hours of work. The marketing mix-the 4 Ps-target audience-segmentation-objectives-evaluation. These and other terms are all used in the process of "marketing." In tourism and tourism related industries, success means understanding this process.

This bulletin is designed for those in the tourism industry who may not be completely familiar with marketing or who may simply wish to refresh their basic marketing skills. Covered will be important ccncepts used in marketing, the rela~ionship of marketing to tourism, and a process for developing a marketing plan for tourism/recreation businesses and/or communities. It will be impossible to (over in detail all the aspects of marketing within the scope of this bulletin. There are, however, other bulletins in this series that will provide more in-depth information on the different components of a marketing plan.

What is Tourism

Tourism is now widely recognised as the world's largest

2 Tourism Marketing and Management

industry and its growth is creating rapid social, economic and environmental changes which require detailed understanding and measures to manage it. Tourism is now becoming a major area of study among students all over the world and its development and management hold many career opportunities for students.

At a global scale, tourism generated US$ 6,201 billion in 2005 and is expected to grow to US$ 10,678.5 billion by 2015.

-As a subject to study, tourism is highly dynamic, ever changing as it is no longer just associated with the Developed World, but also has a global impact and effect for a number of reasons which are associated with tourism as a phenomenon:

Tourism arises from the movement of people to, and their stay in, various destinations;

There are two elements in all tourism; the journey to the destination and the stay including activities at the destination;

The journey and the stay take place outside the normal place of residence and work, so that tourism gives rise to activities, which are distinct from those of the resident and working populations of the places, through which tourists travel and in which they stay;

The movement to destinations is of a temporary, short-term character, with intention to return within a few days, weeks or months.

By studying tourism, you will start to understand how people, travel and their interaction give rise to changes in society, the economy and environment at a global scale, studying Tourism Management will equip you with the necessary skills from a management perspective which will

Tourism Marketing 3

be invaluable in seeking to u!1-derstand what the tourism industry need to do to improve their competitive edge, grow their business and seek out new business opportunities

What is Marketing

People hold a variety of misconceptions about marketing. Most common is its confusion with selling and advertising. Selling and advertising are actually types of promotion which is only a component of marketing.

Marketing involves much more, including product/ service development, place (location and distribution), and pricing. It requires information about people, especially those interested in what you have to offer (your "market"), such as what they like, where they buy and how much they spend. Its role is to match the right product or service with the right market or audience. Marketing, as you will see, is an art and a science. According to the American Marketing Association, marketing is "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." Simply stated it is creating and promoting a product (ideas, goods or services) that satisfies a customer's need or desire and is available at a desirable price and place.

Modern marketing is a way of doing business, heavily based on the "marketing concept" which holds that businesses and organizations should:

(1) design their products/services to meet customer needs and wants;

(2) focus on those people most likely to buy their product rather than the entire mass market; and

(3) develop marketing efforts that fit into their overall business objectives.


By adopting this concept you not only provide your customers with better products, you will avoid wasting valuable time and money developing and promoting a product or service nobody wants.

Recreation and Tourism Marketing

Earlier it was mentioned that a product can be "ideas, goods, or services." Since tourism is. primarily a service based industry, the principal products provided by recreation/ tourism (R/T) businesses are recreational experiences and hospitality. These are intangible products and more difficult to market than tangible products such as automobiles. The intangible nature of services makes quality control difficult but crucial. It also makes it more difficult for potential customers to evaluate and compare service offetings. In addition, instead of moving the product to th~'customer, the customer must travel to the product (area/community).

Travel is a significant Fortion of the time and money spent in association with recreational and tourism experiences and is a major factor in people's decisions on whether- or not to visit your business or community.

As an industry, tourism has many components comprising the overall "travel experience." Along with transportation, it includes such things as accommodations, food and beverage services, shops, entertainment, aesthetics and special events. It is rare for one business to provide the variety of activities or facilities tourists need or desire. This adds to the difficulty of maintaining and controlling the quality of the experience. To overcome this hurdle, tourism related. businesses, agencies, and organizations need to work together to package and promote tourism opportunities in their areas and align their efforts to assure consistency in product quality. '\

The Marketing Plan

One of the most important steps a business or community

Tourism Marketing 5

can take to improve the effectiveness and efficiency of their marketing efforts is to develop a written marketing plan. This plan will guide their marketing decisions and assist them in allocating marketing resources such as money and personnel time. The plan should include:

(1) the overall business objectives-what you want to accomplish;

(2) an assessment of the market environment-what factors may affect your marketing efforts;

(3) a business/community profile-what resources are available,

(4) market identification (segmentation)-the specific groups or clientele most interested in your product;

(5) the marketing objectives for each segment;

(6) the marketing strategies (or mixes) for different markets you target-the best combination of the 4 Ps (product, price, place, promotion) for each segment;

(7)an implementation plan-how to "make it work;"

(8) the marketing budget-how much you have to spend; and

(9) a method for evaluation and change.

A framework which can be used to develop a marketing plan. Each component will be briefly discussed in the remainder of the bulletin. For more information regarding different components of the plan be sure to consult other bulletins in this series.

Overall Business Objectives

Businesses, agencies, and communities should develop overall objectives and regularly monitor their progress. The objectives should provide guidance for all decisions


including finances, personnel and marketing. They should be quantitative and measurable statements of what the business or community wants to accomplish over a specified period of time. Business objectives are often stated in terms of sales, profits, market shares and/or occupancy rates. Communities freql.lently establish objectives relating to such things as increasing the number of tourists, developing or changing. their image, facility and activity development, cooperation among tourism related businesses and increasing length of stay and local expenditures.

-It is important that the objectives be reasonable given

the market conditions and tre firm's or organization's resources. Establish a few reasonable objectives instead of a long, unrealistic "wish list." This is especially true for new businesses or communities which do not have much experience in tourism development and/or marketAlg.

Market Environment Analysis

The next step in developing a marketing plan is to assess the impact of environmental factors (such as economic, social and political) on present and future markets. Changes in these factors can create marketing opportunities as well as problems.

Demographic and Lifestyle Trends

Changing demographics and lifestyles are having a major impact on R/T participation. An assessment of these trends is important to understand how they will likely affect your business or community.

Some of the important trends that bear watching:

(1) population growth and movement;

(2) rural community growth compared to metropolitan areas;

(3) number of adult women employed outside the home;

Tourism Marketing 7

(4) the number of households is growing, especially non family and single parent households, but family size is decreasing;

(5) the impact of two wage earner households on real family income;

(6) the number of retired persons with the financial ability to travel;

(7) better health to an older age; and

(8) continued aging of the population (we are becoming a middle aged society).

Economic Conditions

Overall economic conditions can have significant impacts on recreation and tourism markets. A marketing strategy that is effective during periods of low unemployment rates may have to be significantly adjusted if unemployment increases. Businesses and communities should monitor and assess the likely impact of factors such as unemployment rates, real family income, rate of inflation, credit availability, terms and interest rates.

Consideration should also be given to the prices of complementary products, such as lodging, gasoline and

recreation equipment.

Laws and Government Actions

As a complex industry, tourism is significantly affected both positively and negatively by laws and by actions of governmental agencies. For instance, rulings on such things as liability issues or decisions regarding building and health codes may change or possibly prevent the construction of a proposed facility. If a public facility changes the prices of its services, this could affect the service offerings of associated private businesses. These actions may have both


positive and negative effects on the marketing efforts of the business and community. To avoid wasting valuable resources it is important that Rff businesses, agencies, and communities continually monitor and evaluate governmental actions.

Technology

Technological developments are increasing rapidly. New recreation products, such as all-terrain vehicles and wind surfers, provide new ways for people to satisfy their recreational preferences. New production technologies and materials offer recreation and tourism businesses ways to reduce costs and improve the quality of their products/ services. Advances in telecommunications have and will continue to create new promotional opportunities. Technological innovations, in relation to jobs and the home, have resulted in increased leisure time for many people.

Competition

Businesses and communities must identify and analyze existing and potential competitors. The objective of the analysis is to determine the strengths and weaknesses of the competition's marketing strategies. The analysis should include the competition's:

(1) product/service features and quality;

(2) location relative to different geographic markets;

(3) promotional themes and messages;

(4) prices; and

(5) type of customer they are attracting.

Business and Community Profiles .

Too many communities attempt to market themselves as tourist destinations without accurate information about their resources (facilitie~, services, staff), image (projected

Tourism Marketing 9

vs. actual), and how well their customers are satisfied. Without this information, it is difficult to make other decisions in the planning process. Included should be such things as recreational and entertainment facilities, cultural and historic sites, overnight accommodations, restaurants, shopping opportunities, special events and activities, staff size, and transportation. Each item of the "inventory" should also be assessed in terms of quality and availability.

Market Segmentation (Identification)

Recreation and tourism businesses and communities often make the mistake of attempting to be all things to all people. It is difficult, and risky, to develop marketing strategies for the mass market. Strategies designed for the "average" customer often result in unappealing products, prices, and promotional messages. For example, it would be difficult to develop a campground that would be equally attractive to recreational vehicle campers and backpackers or promote a property to serve both snowmobilers and nature oriented cross country skiers.

Marketing is strongly based on market segmentation and target marketing. Market segmentation is the process of:

(1) taking existing and/or potential customers/visitors (market) and categorizing them into groups with similar preferences referred to as "market segments;"

(2) selecting the most promising segments as "target markets;" and

(3) designing "marketing mixes," or strategies . (combination of the 4 Ps), which satisfy the special needs, desires and behavior of the target markets.

There is no unique or best way to segment markets, but ways in which customers can be grouped are:


(1) location of residence-instate, out-of-state, local;

(2) demographics-age, income, family status, education;

(3) equipment ownership/use--'"RV's, sailboats, canoes, tents, snowmobiles;

(4) important product attributes-price, quality, quantity; and

(5) lifestyle attributes-activities, interests, opinions.

To be useful, the segment identification process should result in segments that suggest marketing efforts that will be effective in attracting them and at least one segment large enough to justify specialized marketing efforts.

After segments have been identified, the business or community m~st select the "target markets," those segments which offer them the greatest opportunity. When determining target markets, consideration should be given to:

(1) existing and future sales potential of each segment; ,

(2) the amount and strength of competition for each segment;

(3) the ability to offer a marketing mix which will be successful in attracting each segment;

(4) the cost of servicing each segment; and

(5) each segment's contribution to accomplishing overall business/community objectives.

It is often wiser to target smaller segments that are presently not being served, or served inadequately, than to go after larger segments for which there is a great deal of competition.

Marketing Objectives for Each Segment

Marketing objectives which contribute to the

Tourism Marketing 11

accomplishment of the overall business objectives should be established for each target market. Objectives serve a number of functions including:

(1) guidance for developing marketing mixes for different target markets;

(2) information for allocating the marketing budget between target markets;

(3) a basis for objectively evaluating the effectiveness of the marketing mixes (setting standards); and

(4) a framework for integrating the different marketing mixes into the overall marketing plan.

The target market objectives should:

(1) be expressed in quantitative terms;

(2) be measurable;

(3) specify the target market; and

(4) indicate the time period in which the objective is to be accomplished.

For example, increase the number of overnight stays by people from the Chicago market over the next two years by five percent.

Remember, rank objectives by priority and carefully evaluate them to ensure that they are reasonable given the strength of the competition and resources available for marketing.

Marketing Strategy (Mix

The marketing strategy, or mix, should be viewed as a package of offerings designed to attract and serve the customer or visitor. Recreation and tourism businesses and communities should develop both external and internal marketing mixes for different target markets.


External Mix

Th~ external marketing mix includes product/service, price, place/location, and promotion.

Product Earlier we said the principal products that recreation and tourism businesses provide are recreational experiences and hospitality. The factors that create a quality recreational experience often differ among people. A quality experience for one skier might include an uncrowded, steep slope. To another it might be a good restaurant and a chance to socialize. Decisions on what facilities, programs and services to provide should be based on the needs and desires of the target market(s). They should not be based on the preferences 6f the owner/manager or necessarily on what the competition is providing.

Recognize that a recreational/tourism experience includes five elements: trip planning and anticipation; travel to the site/area; the experience at the site; travel back home; and recollection. Businesses should look for ways to enhance the quality of the overall experience during all phases of the trip. This could be accomplished by providing trip planning packages which include maps, attractions en route and on site, and information regarding lodging, food and quality souvenirs and mementos.

Recreation and tourism businesses should also view their service/product in generic terms. Thinking of products/ services in this manner helps focus more attention on the experiences desired by customers and also the facilities, programs and services that will produce those experiences. For example, campgrounds are the business of providing recreational "lodging" not just campsites to park an RV or set up a tent. Marinas should provide recreational "boating" experiences, not just slippage.

Location and Accessibility-Place

Too many tourism businesses and communities fail to


recognize their role in improving travel to and from their areas. They focus instead on servicing the customer once they arrive at the site/community. A bad experience getting to or leaving an R/T site can adversely affect a person's travel experience. Ways to help prevent this include:

(1) providing directions and maps;

(2) providing estimates of travel time and distances from different market areas;

(3) recommending direct and scenic travel routes;

(4) identifying attractions and support facilities along different travel routes; and

(5) informing potential customers of alternative travel methods to the area such as airlines and railroads.

Potential businesses should also carefully assess alternative locations for:

(1) distance and accessibility to target markets;

(2) location of competitors with respect to target markets;

(3) modes of travel serving the area; and

(4) other attractions and activities that might induce travel to the area.

Pricing

Price is one of the most important and visible elements of the marketing mix. When setting prices it is important to take into consideration all of the following:

(1) business and target market objectives;

(2) the full cost of producing, delivering and promoting the product;

(3) the willingness of the target market to pay for the product or service you provide;


(4) prices charged by competitors offering a similar product/service to the same target market(s);

(5) the availability and prices of substitute products/ services (for example, campgrounds, motels, and bed and breakfast are all substitutes for lodging);

(6) the economic climate (local and national); and

(7) the possibility of stimulating high profit products/ services (such as boats) by offering related services (such as maintenance) at or below cost.

When establishing prices, R/T businesses should give attention to pncmg strategies which may encourage off season and non-peak period sales, longer stays, group business, and the sale of package plans (combination of room, meals, and recreational facilities). For additional information on pricing, see Extension bulletin E-1999.

Promotion

Promotion provides target audiences with accurate and timely information to help them decide whether to visit your community or business. The information should be of importance and practical use to the potential or existing visitor and also accurate. Misrepresentation often leads to dissatisfied customers and poor recommendations. Don't make claims you cannot liVe up to.

Developing a promotional campaign is not a science with hard and fast rules. Making decisions regarding which type or combination of promotion types to use (personal selling, advertising, sales promotions, or publicity) is not always easy. If, however, you follow a logical process and do the necessary research, chances for success will be improved. It will be necessary to make decisions regarding:

(1) Target audience-the group you are aiming at;


(2) Image-that which your community or business wants to create or reinforce;

(3) Objectives-those of the promotional campaign;

(4) Budget-the amount of money available for your promotion;

(5) Timing - when and how often should your promotions appear;

(6) Media -which methods (television, radio, newspaper, magazine) will most effectively and efficiently communicate your message to the target audience; and

(7) Evaluation-how can the effectiveness of the promotional campaign be determined.

More detailed information on tourism promotion is contained in Extension bulletins E-1939, E-1957, and E-2005.

Internal Mix As stated, marketing services such as recreation and tourism differ from marketing tangible products. Recreation and tourism businesses must direct as much attention at marketing to customers on site as they do to attracting them. In this respect, internal marketing is important because dissatisfied customers can ~fectively cancel out an otherwise effective marketing stNttegy.

The success of internal marketing is dependent on creating an atmosphere in which employees desire to'give good service and sell the business/community to visitors. To create such an atmosphere requires the following four important elements:

(1) Hospitality and Guest Relations - An organization wide emphasis on hospitality and guest relations, including a customer oriented attitude on the part of the owners and managers as well as the employees. If'


the owner/manager is not customer sensitive, it is unlikely the lower paid employees will be.

(2) Quality Control-A program which focuses on improving both the technical quality (the standards associated with what the customer receives) and the functional quality (the standards associated with how the customer receives the service). All employees who corne into contact with customers should receive hospitality training.

(3) Personal Selling-Training the staff in the selling aspects of the property (business) or community. This also includes rewarding them for their efforts. By being informed about the marketing objectives, and their role in accomplishing those objectives, they can help increase sales.

(4) Employee Morale-Programs and incentives aimed at maintaining employee morale. The incentives can be both monetary and non-monetary.

A customer oriented atmosphere usually results in customers that are more satisfied, do less complaining and are more pleasant to serve. This helps build employee morale, their desire to provide good service and their efficiency.

Marketing Budget

Successful marketing requires that sufficient money and personnel time be made available to implement activities comprising the marketing strategy. A marketing budget is a financial plan. which shows the total amount to be spent on marketing during different times of the year and how it is to be allocated among alternative activities.

Separate marketing budgets should be developed for each marketing mix strategy. The s~parate budgets should

. then be aggregated to develop an overall marketing budget.


If the total amount is too gxeat it will be necessary to modify the overall objectives and. the target market objectives, narrow down or drop target markets, or adjust marketing mixes. The final budget should be realistic given your objectives. When deciding on a marketing budget, consideration should be given to the job that needs to be done as defined by the objectives. Basing marketing budgets on some percent of sales or what the competition spends usually leads to, over spending or under spending. Decisions should also be based on the costs, projected revenues, and desired profitability of different activities, not just costs alone. Successful marketing activities will generate additional revenues which can be projected based Ion the marketing objectives (such as increase off season stay by 5%).

Although budgets should be viewed as flexible plans, every effort should be made to adhere to them. Revisions in the budget should only be made after careful consideration of the likely impact of the change on the marketing mix and accomplishment of your objectives.

Implementation

Many well designed marketing plans fail because they are poorly executed. Businesses, agencies, and communities can increase the likelihood of successful implementation if they:

(1) identify specific tasks which must be accomplished;

(2) assign people or departments specific responsibility for different tasks;

(3) provide employees with information on the marketing plan (rationale, objectives, strategies);

(4) develop time lines and deadlines;

(5) adhere as much as possible to the budget; and

(6) regularly monitor and evaluate progress.


Evalu-ation

It is important that marketing efforts be continually evaluated. This will improve the effectiveness of marketing strategies by quickly identifying differences between actual results and expected performance and determining likely reasons for the success or failure to realize objectives.

A framework for evaluation would include:

(1) determining which elements of the different marketing mixes are most important to evaluate: It is rarely possible or cost effective to evaluate all elements;

(2) establishing performance standards to compare against actual results.-Marketing objectives, if properly formulated, should serve as performance ~tandards;

(3) .. development of formal and informal methods for c911ecting data on actual results.-There are many ways different elements of the marketing mix can be evaluated. For example, promotions can be evaluated with money off coupons. Special information request forms, telephone numbers to call or post office box numbers to write to can identify the area the request is coming from. Also, formal (written) and informal (face-to-face) surveys can be used to determine the promotional material the customer used in planning the trip;

(4) comparison of results with objectives;

(5) determination of needed change(s).

Conclusion

Customer satisfaction in tourism is greatly influenced by the way in which the service (hospitality) is delivered and the physical appearance and personality of the business.


It is critical that these elements be communicated in the best possible manner to convince people to come and experience what your business or community has to offer. Equally important is the ability to generate repeat business because of your efforts. Thus, marketing becomes the method to reach potential visitors. It is a vital part of tourism management and can be done effectively and well, with sophistication and tact, or it can be done poorly in a loud, crass and intrusive manner. Hopefully, this bulletin has given you the basics for the former rather than the latter. Remember that to do an effective job at marketing:

(1) adopt a strong customer orientation which includes regular research and assessment of their needs, wants and attitudes;

(2) allocate sufficient resources and time to marketing;

(3) assign formal responsibility for marketing to one person or department; and.

(4) develop and regularly update a marketing plan.

SELECTED REFERENCES

"A Service-Oriented Approach to Marketing of Services." Christian Gronroos. European Journal of Marketing, Vol. 12, No.8, 1978, pp. 588-601.

"Advertising Management." David A. Aaker and John G. Myers. Prentice-Hall, Inc., Englewood Cliffs, New Jersey. 1975.

"Goods Versus Services Marketing: A Divergent Perspective." E. Brown and E. F. Fern, in Marketing of Services. Eds. James H. Donnelly and William R. George. American Marketing Association, Chicago, Illinois. 1981.

"Managing Customer Satisfaction in Consumer Service Businesses." John A. Czepiel. Marketing Science Institute, Cambridge, Massachusetts. 1980.

"Marketing: A Managerial Approach." William H. Cunningham


and Isabella C. M. Cunningham. South-Western Publishing Company, Cincinnati, Ohio. 1981.

"Marketing Decision Making: Concepts and Strategy." David W. Cravens, Gerald E. Hills and Robert B. Woodruff. Richard D. Irwin, Inc., Homewood, Illinois. 1976.

"Services Marketing Is Different." Leonard L. Berry. Business, May/June, 1980. pp. 24-29.

"The Concept of the Marketing Mix." Neil H. Borden. Journal of Advertising Research, June, 1964. pp. 2-7.

"Tourism Marketing and Management Issues." Donald E. Hawkins, Elwood L. Shafer, and James M. Rovelstad. George Washington University, Washington, D.C. 1980.

Produced in Cooperation with the Michigan Travel, Tourism and Recreation Resource Center, Michigan State University

Growth and Development of Travel and Tourism

The primary motive for which the travel was undertaken was related to trade, exchange of goods, commerce and the activities associated with it. The traveller in the ancient past was thus a trader and a merchant looking for merchandise and engaging in trade and commerce. There was, however, another type of traveller, whose motive was other than engaging in trade and commerce. This traveller was pilgrim, a scholar in search of ancient texts, and a curious wayfarer looking forward to new and exciting experiences. Seeking knowledge was his primary purpose for undertaking travel. Most early travel was associated with trade and commerce. Throughout history, traders and merchants have travelled to far-off lands in order to trade with other regions and communities.

Travellers from distant lands started moving about in large numbers and visited many places for the purposes of commerce. With the gradual opening of the trade routes, travel became easier as well as regulated. At the market-places, travellers made contacts with each other, resulting in increased flow of trade and commerce. Trade relations graduany matured into cultural relations and better understanding of each other's way of life. This was a favourable development towards increase in travel activity

22 Tourism Marketing and Management during this period. Some of the earliest travellers probably were the Phoenicians. They were probably the first real travellers in the modem sense. These were also the people who were credited with the invention of money. The medium of money was being used in various business and commercial dealings. Many traders could now pay for their travel to different centres of trade and commerce as also for the accommodation they required.

The invention of money and the development of trade and commerce beginning about 3000 B.C. perhaps can be said to be the most significant development of the time which paved the way for the development and organisation of travel. Early travel in the orient, particularly in India and in China, was also largely based on trade and commerce. Travel to India in particular was undertaken by travellers from all' over the ancient world. Both India and China enjoyed the reputation of being countries of fabulous wealth where trade and commerce flourished. It is on record that long before the Christian era, travellers visited India in search of fortune. This trend continued and became more marked in course of time with Europeans heading towards Indian shores for the sole purpose of trade and commerce. The urge to explore new lands and to seek new knowledge in ancient and distant lands was yet another motive of travellers in subsequent periods.

Although trade and commerce continued to be the strong force for many travellers to undertake journeys to distant lands, .seeking new knowledge and exploring the unexplored lands. was becoming a strong urge in ancient times. Homer's great work 'Odyssey'records the wanderlust of the ancient Greeks and Romans. There are innumerable references to great explorers who spent many formidable years of their lives in search of knowledge. These great explorers can, perhaps, be credited with the distinction of being the pioneers who subsequently paved the way for modem day travel.

Growth and Development of Travel and Tourism 23

Travel for Religious Purposes

Tra vel for religious purposes assumed a significant importance during middle ages and became a well established custom in many parts of the world. By the end of the Middle Ages, a large number of pilgrims were travelling to the main shrines in Europe and elsewhere. The adoption and spread of Christianity subsequently led to numerous pilgrims making their way to the holy land. So deep and strong was the hold of faith that the ritual of pilgrimage flourished over the centuries. It became a great unifying force and the pilgrimages strengthened religious bonds.

The pilgrimages also provided the necessary impetus for a I stay-at-home' agrarian society to break out of its narrow geographical confines and visit places associated with religion. It also served as a powerful means of forging unity and understanding between peoples from widely

-different regions. Pilgrim travel assumed a great importance in India. Emperor Ashoka travelled a great deal in his eagerness to spread doctrines of Buddha. Ashoka and his entourage first travelled to Nepal starting from Patliputra and then ventured to Lumbini Gardens, the land of Buddha's birth, on to Kapilavastu, the place where Buddha spent his childhoud. From here, he went to 5arnath, where Buddha spent many years of his life and finally to Gaya, where Buddha got enlightenment.

Through his travels, Emperor Ashoka had special memorials set up at each spot and also rest houses where travellers could rest. Harsha was another emperor who was greatly influenced by the Buddhist scriptures. He built institutions and Dharamshalas for the travellers. Rest houses were built in towns and villages, Numerous monasteries and temples were also built for the pilgrims. The powerful influences of a crusading religion that slowly penetrated a foreign land, such as Christianity in Europe and later in America and Buddhism, Islam and Hinduism in Asia


allowed an assimilation and perpetuation of very distinctive languages, literature, art, architecture, philosophy and forms of government. Religion thus played and continues to playa crucial part in travel. Perhaps the earliest travellers from distant lands to the Indian soil were the trading Persians. Evidence of caravans of Persians visiting India lies engraved in the inscriptions dating to the Persian king Darius.

During the rule of the Guptas, there was free access to the ports along the Western Coast, seaborne commerce with Europe through Egypt was yet another reason for travel in and around the country. There are also references of many known Persians, who visited the Indian soil for commerce and trade. There is also a mention of cultural exchanges between Persia and India. Reference has also been made to the influence of Persian customs in the court of Chandragupta Maurya. Great travellers from various far away lands visited India. Probably the greatest traveller remembered from the distant past is Hieun-tsang. A devout Chinese Buddhist, he made the perilous journey to India around A.D. 633. His main mission was to collect and translate ancient Buddhist scriptures. One of the important developments during this period was the emergence of some sort of communication system and accommodation.

Development of trade and commerce necessitated this development. Shulgi, the ruler of ancient Babylonia, claimed to have built roads and rest houses at various places for wayfarers. With trade and commerce forming a link in development, it was inevitable that some sort of communication system connecting the centres of trade, commerce and learning were found to be in good shape. When Alexander the Great, during his journeys, reached India, he found well maintained roads covered with shady trees. Along one royal highway, 1,920 kilometres long and about 19 metres wide, people travelled in chariots, palanquins, bullock carts, on horses, camels and elephants.


Travel Adventurers

The great travellers who Illentured to explore distant lands had fascinating accounts of their travels. Even if we go back just a few hundred years to the third century AD., since the first exploration of Alexander the Great, or only about seven hundred years since Marco Polo, and their amazing explorations crossing many land we get fascinating accounts of the travels of these great persons. The first medieval traveller to reach the orient was probably Benjamin of Tudela, a Jewish scholar, who left Saragossa in the year AD.1l60. He wrote a detailed account of his thirteen-year long journey through Europe, Persia and India, giving information on the Jewish communities, and the geography of various' places he had visited. Yet another famous traveller who recorded interesting accounts of his travel expciriences was Ibn Batutah. Ibn Batutah wrote a detailed diary of his travel experiences. He was born at Tangier in AD. 1304. In the year A.D. 1325, he left his home and passing through various countries in Africa and West Asia, crossed the Sindhu in AD. 1333. His travel took him to places as far as Indonesia and China.

Out of a total of more than 17,000 miles, he covered more than 14,000 miles in the course of his travels through India, the Maldives and Ceylon. Marco Polo, the fearless traveller, spent almost twenty-five years in Asia during the latter part of the 13th century. His wanderlust could well have been inherited from his father. Young Marco Polo left Venice in the year 1271 with his father and uncle. The three together travelled through Persia and Afghanistan to the "roof of the world", the then unknown Pamir Plateau. After crossing the wind-swept Gobi desert, they reached Kublai Khan's palace and remained in China for over twenty years. On his way back home, he stopped in Sumatra, Java, India and Ceylon. Marco Polo's description of a place Zipangu (the present day Japan) in his memoirs, set the course for Columbus on his historic journey in 1492. Two

26 Tourism Marketing and Management \

of Columbus's contemporaries who also became famous and wrote excellent accounts were Vasco da Gama - who opened the sea route from Western Europe to India in 1498 - and Ferdinand Magellan whose ship sailed around the world. Francisco Friar, John of Monte Corvino also visited India on their way to and back from China during the decade of the thirteenth century.

Mention may also be made of the famous Poruguese chronicle, the Commentaries of the Great Alfonso 0' Albuquerque. In the sixteenth and seventeenth centuries more European monks, travellers and adventurers visited India and many other places in search of knowledge. The great sailor to do a westward circumnavigation of the world was Francis Drake who was knighted by Queen Elizabeth I in the year 1581. From 1768 to 1779 Captain J ames Cook made three long voyages to the Pacific in search of a non-existent southern continent mentioned by Ptolemy who, earlier in the 2nd century A.D., had travelled widely and who wrote an eight-volume work on geography.

Early Travel

The concept of pleasure travel as it existed in the west can be associated with the Roman empire. Romans probably were the first pleasure travellers. Travel received a great stimulus from the good communication system and security of the Roman empire. There existed a fine network of roads and new roads were built increasingly wherever the Romans went. Travel literature was published extensively giving routes, the names of the roads, distances between places and time required in travelling to them. The Romans were able to travel over a hundred miles in a day using relays of horses. They journeyed primarily to see famous temples in the Mediterranean areo.:>, particularly the monuments and the famous pyramids of Egypt.

The Roman travelled during holiday occasions,

Growth and Development o/Travel and Tourism 27

particularly the famous Olympic Games. Spas and seaside resorts which developed during this period may be associated with pleasure travel. Medicinal baths and seaside resorts which later were named as spas were popular with the Romans. The inland spa had its origin in a belief in the efficacy of its mineral waters for medicinal purposes, either by drinking the water or by immersing in it. The patients using the spas would require certain diversions, and gradually, the spa resorts added facilities for pleasure and entertainment to medical facilities.

The visitors now not only enjoyed medicinal baths but also various forms of entertainments. Theatrical productions, athletic competitions, festivals and other forms of entertainments and amusement were often provided at the sites where spas were located. The spas had bec;ome extremely popular with travellers. Subsequent develoment of spas, after their original use for recreational purposes by the Romans, played a big role in the development of pleasure travel in many countries in Europe. Development of various seaside resorts is also linked with the latter half of the eighteenth century, when people started realising the possible curative effects of sea water. Sea bathing also became very popular and many believed that bathing in sea water was more beneficial than inland spas. The seaside resorts began to appear as an alternative to the original inland spa. By the year 1865, there were major seaside resorts in Britain, France, ItcHy and a few more countries of Central Europe.

This development was a result of a demand for vacation travel. However, the use of these resorts was still confined to those with considerable means. Nevertheless, both the spas and the seaside resorts paved the way for the modern pleasure travel all over the world where millions of people visited various seaside resorts each year. The fall of the Roman empire in the fifth century was a great setback for pleasure travel in Europe. During the Dark Ages only the

28 Tourism Marlreting and Management

very adventurous and brave persons would travel. A trip in this period in history was considered dangerous. No one would associate travel with pleasure. Also with the decline of the Roman empire came a sharp decline in trade and commerce.

The reappearance of tourism in Europe follows the Italian Renaissance and the development of a full scale urban system and network of roads. By the end of the fifteenth century Italy itself became the object of attention. At this time Italy was Europe's economic and cultural leader. It was, however, totally disunited politically. Wars were fought on Italian soil. These wars played an important part in the dissemination of the Renaissance and the subsequent development of the 'grand tour'.

Although it declined materially, Italy was still the 'intellectual' capital of Europe. For the aristocracy c;t.nd intelligentsia of north-west Europe it represented both the classical heritage and all the latest ideas and inventions. A growing number of young noblemen were being sent abroad to complete their education in France and Italy. The development of the Grand tourism followed a shift in the focus of culture and of economic and political power. The wealthy and educated, of states whose position of dominance in the world was comparatively new, visited countries that had passed their peak of prestige but were still venerated for historical and cultural reasons.

Thus Romans visiteJ Greece and the eastern Mediterranean; the English, from sixteenth century onwards, visited Italy. The Grand tourist respected the learning, antiquities and social refinements of the world. The eighteenth century is conventionally considered, the golden age of the Grand Tour, especially the thirty years between 1763 and 1793. With the new wealth of the English bourgeoisie the number of tourists had multiplied. The Grand Tour was no longer an aristocratic preserve. It had been invaded by

Growth and Development a/Travel and Tourism 29

the bourgeoisie. During this period a great many poets, authors and intellectuals visited Italy and other countries nearby with a view to broaden their knowledge and learn new arts and crafts. The Grand tourists paved the way for the popular tourism of the nineteenth and twentieth "~nturies.

The Concept of Annual Holiday

The introduction of Annual Holiday in Europe was yet another important landmark which enabled many people to undertake travel in large numbers during the eighteenth century. The annual holiday was the forerunner to the 'paid holiday' which later on was responsible for an extraordinary growth of tourism during the twentieth century. The term holiday derives from holy days associated with religious observances. In the present day parlance it is used generally in a secular sense meaning a respite from the routine of daily workday life and a time for 'leisure, recreation and amusement. A feature of ancit;ht Rome, public holidays were among the most enjoyable events of the period. The most important and enjoyable public"holiday was known as "Saturnalia" - the feast of Saturn - celebrated in the month of December, where everybody high or low in status indulged in feasting and frolic. Also in Europe certain days commemorating religious festivals and saints' days became holy days on which there was holiday from work. In the year 1552 in England an act was passed during the reign of Edward VI "for the keeping of holidays and fasting days."

This act still continues to be on the Statute Book. Subsequently, public and semi-official offices in England frequently closed on certain saints' days. There were, however, no general public holidays until the time of the Industrial Revolution. The concept of modern annual paid holiday is very largely an outcome of the post Industrial Revolution. The so called 'travel bug' of modern parlance had its seeds in the ancient past. Although the purpose and motives for


travels ir the subsequent periods underwent a great change, the urge to travel has always been there. The growth and development of travel has been closely linked with the growth and development of society as a whole. The travellers of the ancient past were in fact the explorers in search of knowledge of different lands, of people, their cultures and their traditions.

They were also traders interested in development of trade and commerce. In fact, these very developments paved the way for development of travel in the subsequent periods. Nineteenth century witnessed a great technological development, first in England, and later on in Europe and America. This development had a profound effect on transport which resulted in the growth of travel in general. This great technological development led to the advent of the railway.

Tl)e introduction of railways in the nineteenth century was a, crucial landmark in history. The first rail link between Liverpool and Manchester was started in the year 1830. The newly completed railway track in England featured special provisions for carrying passengers in addition to freight. Later on, an extensive programme of construction of railroads to provide trunk lines between major centres of population and commerce and industry was taken up in England. Although the railway network in the beginning was responsible for carrying goods from industrial centres to the centres of trade and commerce, it had, however, initiated the process of carrying the passengers which later on was to become a mass movement.' Railways provided the necessary vehicle for the movement of the people from the place of their residence to newly formed and expanding pleasure spots like seaside resorts. These resorts for the first time were within the reach of many people who but for the introduction of railways, would otherwise not have been able to reach them.


The newly formed railway companies in England, however, were slow to take advantage of the various opportunities available to them for the expansion of the pleasure travel and thereby the passenger travel. These companies were concentrating in meeting the demands of trade and commerce as a result of their expansion. Gradually, the railway companies started to concentrate on carrying more passengers which resulted in the development of short day trips. This trend was later to be followed by

. railways by way of organising excursion for the public. These excursions were offered to the public at special fares.

Travel and Rail

A baptist preacher of Derbyshire on his way to a temperance meeting in Leicester was inspired with the idea of engaging a special train to carry the' friends of temperance society' from Leicester to Loughborough and back to attend a quarterly delegate meeting. The man behind this idea was none other than Thomas Cook who later on came to be known as one of the greatest travel organisers of the times and, in fact, a pioneer.

Thomas Cook broached the idea to his friend and a few weeks later the idea culminated into collecting as many as 570 passengers who made a journey by the Midland Counties Raihvay at a specially reduced return fare of one shilling per passenger. Encouraged by the success of this venture, Thomas Cook arranged similar such ventures by chartering traips to places which were now becoming popular with the excursionists.

In the year 1843, nearly 3,000 school children were taken on a trip from Leiceter to Derby. Many more excursion trips were arranged by Thomas Cook on a fully commercial basis. From the year 1848 to 1863, Cook conducted circular tours of Scotland with almost 5,000 travellers a season. By the year 1855, Thomas Cook had extended his field of


operations to other countries in the continent, organising the first all inclusive tours to the Paris Exhibition in that year. Another important development which can also be associated with Thomas Cook is the spurt in pleasure travel. The large scale movement of people to ~arious pleasure spots like resorts and spas was a result of organised conducted excursion trips by Thomas Cook. It was however, the introduction of the railways which made all this possible for Thomas Cook to achieve and become a pioneer in organised travel. >The news about introduction of the Liverpool and Manchester railway reached the neighbouring countries in Europe. Encouraged by this development many other countries in Eurqpe opened the railway lines.

Railway tracks were laid in France, Austria and Switzerland. Across the Atlantic the tracks were laid in America which ushered in the spurt of travel to and from places where tracks were laid. This great revolution in rail transport technology produced an immediate expansion in Europea~ travel. It was estimated that in the ye~H 1881, the railways carried over 600 million passengers bver the lines operated by over one hundred odd companies. All of them, however, were not excursionists. With the phenomenal success, the railways were now keen to stimulate travel further and also to improve the system. There was also now an element of competition and the various railway companies tried to make travel as comfortable as possible. In America, the first class railway travel was introduced in the early 1870s, by an American named G .M. Pullman, who developed the Pullman coaches with their luxury furnishings and dining facilities. >

The longer distances in America necessitated the ensuring of greater passenger comfort. Long-distance travel could now be undertaken in comfort and with pleasure. The Pullman coaches manufactured in America were being imported by some railway companies in England and other countries in Europe. By the year 1872 the Pullman company had

,


over 700 coaches working over 30,000 miles of railway track under contract with over 150 different railway companies. East was not far behind in catching up with the leaders in the area of rail-road construction. India took up the construction of railways in the same century. Soon after its introduction in England, the business community there was pressing the East India Company to introduce railways in the subcontinent of India. After prolonged negotiations with British rail-road companies, the GIP Railway Company could be incorporated in an Act of Parliament in 1849 and a contract signed between East India Company and the GIP Railway Company requesting them to raise the requisite capital required for the construction work. The contract for the actual construction was awarded to an English company, Messrs Faviel and Fowler. It was on Aprill6, 1853 that the first train in the east took off from Boribunder in Bombay to Thana, covering a distance of 33 kilometres. Four hundred guests selected from various segments were invited to travel by the first train in India. From a small beginning on April 16, 1853, when the first ttain steamed off from Victoria Terminus for Thane, 33 kilometres away, the Railway System in India has grown into the world's second largest system under one management, second only to Russia. Like the railways, shipping made a significant contribution to travel during the nineteenth century.

While railways were responsible for inland travel, especially in Europe, the steamship crossed the boundaries and made strides in intercontinental travel. The shipping technology made a number of innovations in the nineteenth century. In America a number of sailing ships were built which were considered to be superior to those built in England or elsewhere. The English felt a great need for improved communications across the Atlantic with America for the purpose of trade and commerce and passenger transportation.

As a result of this there were great strides in the


development of deep-sea shipping. The history of the Cunard Steamship Company in England demonstrates important features in the growth of North Atlantic Shipping. A subsidy in the form of the award of mail contract represented a recurring theme in the development of passenger transportation. With the passage of time toward the last quarter of the nineteenth century, emigrant traffic became an important factor in North Atlantic travel. America was considered at that time the new world', full of opportunities and fortunes for people in Europe. A great number of people from the continent started going to America in search of fortunes.

First, Great Britain and later Germany, along with other countries, became the principal generators of emigrants to the 'new world'. Many also travelled to see the new world. Use of the ships in the cruising fashion for the charter and operation of cruises on a limited scale dates

from the mid--nineteenth century. One of the earliest cruises perhaps was described by Mark Twain in his first book, The InnOCents Abroad, published in the year 1869. The year 1869 also brought about the possibility of a much shortened route between the West and the East as a result of opening of the Suez Canal. This in turn stimulated the introduction of better steamship carriage to the Far East.

The worldwide growth of shipping companies towards the end of the nineteenth century led to the formation of shipping conferences which developed cartel-like agreements. These agreements were on fare-structure applicable to the carriage of passenger traffic and cargo to various territories to which the vessels of these companies operated.

The second half of the nineteenth century, in fact, witnessed the growth of travel as a res~lt of development of industrial societies. These societies which developed in

. Western Europe and North America greatly felt the urge to travel purely for the purpose of rest and relaxation. This

, Growth and Development o/Thwel and Tourism 35

trend certainly gave way to what came to be known as the tourism phenomenon in the latter part of the century and in the twentieth century. It will not be out of place to mention that the concept of modem-day tourism had its seeds in the development of industrialised societies of Western Europe and North America. Though an accurate analysis of the measurement of tourism can be traced back to only about half a century ago, the scattered figures published from 1855 onwards point to the direct relationship between the development of industrial societies and the expansion of tourist movements. This has also been supplemented by various official statements, observations by travel writers, and the various travel guides and other literature on sale from time to time.

The emergence of the industrialised societies was a direct result of the industrial revolution in the West, initially beginni,ng in England. In its wake the industrial revolution brougtit about tremendous changes in the society and the tempo of change was quite fast and took a big jump. The Industrial Revolution was responsible for changes both in the economic as well as social systems prevailing at that time, A large number of factory towns, both big and small, sprang up which in turn necessitated large-scale migrations from the countryside to towns and cities. The Industrial Revolution was responsible for the emergence of the working class which was needed to run factories. In the beginning the working class was burdened with long working. hours and poor working and living conditions and lower wages. The sudden concentration of population in towns and cities made matters worse.

Development of Seaside Resorts

As the industrial momentum gathered and the cities and their populations increased at an enormous rate, the need for some relief was acute. Escape from the routine of work began to be felt in greater intensity. The prosperous


and well-to-do who could afford the escape, proceeded to various resorts for rest and recreation. By this time a large number of such resorts had been developed around the English coast and in nearby countries. A number of large scale pleasure zones were developed at some considerable distance from the large cities and towns of central Europe.

The French Riviera with Nice, Cannes and Monte Carlo were some of these pleasure zones. The problems were, however, for the not so-well-to-do who could not afford such a luxury and they were in large numbers. Gradually the industrialisation brought in better working conditions and increase in material wealth for a large number of workers. The simultaneous improvements in transport and communication systems during the second half of the nineteenth century enabled a large number of industrial workers not only in England but elsewhere as well to avail of holidays for rest, relaxation and pleasure. Thus the need to develop more holiday resorts was felt.

The substantial increase in workers' purchasing power and disposable income for travel were two important factors which helped the growth of pleasure zones. By the end of the century the Riviera was unmistakably the most popular pleasure zone. Its development became possible when escape to the South had become a major feature of pleasure travel in Europe. Many resorts were developed to cater to the increasing needs of people who could afford a holiday. In the late nineteenth century the Italian Riviera also began to be popular with the English and the French.

Travel in the Twentieth Century

The twentieth century all the main characteristics of modern tourism were evident in embryo. Changes in mental attitudes towards pleasure seeking, the recognised value of travel for education, increase in material wealth coupled with social prestige, a growing need to find relief from

. working routine, improvements in passenger transport

Growth and Development afTravel and Tourism 37

systems-all these factors produced a fertile ground for the development of excursion traffic on a large scale. Pleasure travel continued to expand in the beginning of the century. However, up to the first quarter of the twentieth century travel including pleasure travel was essentially a luxury commodity within the reach of privileged sections of the society having both free time and considerable purchasing power.

The pleasure tourism had by now assumed a class and a charm of its own associated as it was with elegant luxurious hotels, Pullman coaches, prestigious nostaigic long distance trains, such as the 'Orient Express' and the 'Blue Riband' and transatlantic liners like the 'Queen Mary'. However, as stated earlier, only the few privileged ci.:Juld . manage to indulge and afford such luxury. During this time also there appeared a number of associations, which enrolled members from among the embryonic middle and working classes and organised excursions, holiday camps, family rest and holiday homes for them. This class of people had emerged as a result of increasing prosperity due to industrialisation and urbanisation.

Not many people, however, benefited from such activities at that time. World War I was responsible for a temporary halt to tourist movements. Tourism has always flourished in peace as it is a peace-time activity. As such the war saw a considerable decline in tourist travel not only within Europe but also all over the world. However, soon after the war, travel soon reached pre-war peak levels, and within the next three to five years, greatly exceeded them. Early post-war period also brought in its wake prosperity coupled with large scale migration, and this period increased the demand for international travel. Gradual development of the mass communication system like the radio and the press played an important role in increasing travel by way of widening knowledge and interest of a large number of people about other countries.


The post-war period also brought about attitudinal changes which were destined to influence the volume and nature of tourism. For example, the war was responsible for breaking down international barriers, resulting in the fostering of an ideal optimistic, peaceful internationalism - just the climate in which tourism is likely to flourish the most. Post-war era also saw a rise in the standard of living of working and middle classes in America and certain other countries in Europe. Soon after the war tourists began to appear in countries where tourism had been practically unknown a few years earlier. The major tourist countries enjoyed an unprecedented boom in the twenties. In the year 1929 there were nearly one and a half million visitors to Switzerland, over one million to Italy and about two million to Austria. The unprecedented boom in tourist movements in the twenties, espedally in Europe and America, can be directly linked to the introduction of the private motor car.

The motorised private and public road transport and the improved road conditions led to a tremendous growth of travel. The invention of the private motor car and coach received its first great impetus in the ten years which preceded World War 1. The motor car revolutionalised holiday habits of the Europeans and Americans. It became increasingly important in the pursuit of leisure and tourism. The provision of good motor roads and the road services were important factors in the development of both domestic and international tourism.

Tourism and Holidays

Modern tourism emerged along with the introduction of holiday with pay. It was in the last quarter of the nineteenth century that increasing attention was paid to the desirability of holiday with pay and at least of cheap holidays for working class people. This group had still largely failed to benefit from the new opportunities offered


by rail travel. During this period a few factories gave paid holidays to their workers in some countries in the West. The introduction of annual paid holidays is very largely of English origin and this had important repercussions on the development of mass tourism.

The annual paid holiday was established during the inter-war years as a reality for a considerable part of the working population. By the year 1939, in UK, some eleven million people were covered by the Holidays with Pay Act (1938)~Introduction of paid holiday had led to great mobility of the population, created new industries, resulted in the creation and growth of many towns of distinctive function and broadened the horizons of millions of people. In fact, the introduction of paid holidays can truly be associated with the development of modem mass tourism. Modem tourism really got under way in the year 1936 when, at the instigation of its trade union representatiyes, the International Labour Organisati~m (ILO) adopted the first convention that was to support serious movements to promote paid holidays and, in tum, tourism. That convention on paid holidays was an innovation well ahead of time, when only fourteen countries, mostly European, had enacted general legislation on paid holidays. Soon afterwards tourism experienced an extraordinary growth.

Paid holidays are now established all over the world, and in most countries a minimum duration of one to three weeks is specified either by law or by collective agreements, between the employer and the workers. The right to paid holidays has universal recognition now. The trend is to grant longer holiday periods. The employers have realised that the paid holidays have not adversely affected industrial production. The legal minimum in' many countries at present is three weeks. Some countries have even gone beyond this and grant four weeks of paid holiday. Today it is recognised that in Western Europe the fifth week, even from the standpoint of output, may also be regarded as a productive


investment. Sweden has recently enacted legislation introducing this additional week of paid holidays. Worldwide, more than 500 million wage-earners are entitled to paid holidays. Out of this number roughly half are in Europe, little less than 30 per cent, in the Americas, and the rest in Asia and the Pacific. PTesently the main potential for tourism markets is made up of wage-earners and their families-. As a result of ecnomic and social changes due to further industrialisatilon the world over and the rationalisation of the tertiary sector, the number of wage earners in the world is bound to grow at a much faster rate than before.

This concept of paid holidays which originated with the advent of industrialisation in the West has given modern tourism a tremendous boost. The encouraging trend in tourism wjtnessed during the post-First World War period however, received a great setback as the Second World War intervened. As stated earlier, tourism and holiday-making on global as well as national scale is a manifestation of prosperity and peace. It can occur on a large scale where a great majority of people enjoy prosperity and security. It is quite sensitive to world economic and political conditions. The Second World War, like World War I, brought in economic destruction and political instability - the two major deterrents to the growth of travel and tourism. The post-Second World War period brought in a rapid development of tourism.

As the world began to settle down after the years of readjustments immediately after the war ended in the year 1945, there was a remarkably rapid increase in both domestic as well as international tourism. The United Nations reported that in the ten-year period between 1955 and 1965, the number of tourist arrivals in some sixty-five countries increased threefold from 51 million to over 157 million. This trend in the growth of international tourism continued till the mid-1960s. It continued to be determined by the

Grawth and Development a/Travel and Tourism 41

living standards in the developed countries. The widespread introduction of the holiday with pay to a large majority of people during this period was yet another important factor responsible for growth of tourist traffic. In the year 1976, there were nearly 220 million international tourist arrivals in the world. This was an increase of more than 99 per cent over the year 1965. This was a period of intensive economic and technological development in most industrialised countries which had earlier suffered a great deal as a result of war.

Most of the developing countries during this period were also able to benefit from the growing trend in the developed countries to engage in tourism. Tourism and its development are closely interrelated to consumer's purchasing power on the one hand and peace and prosperity on the other. Any domestic or international economic fluctuations or political disturbances result in a temporary setback. Tourism received a setback in the year 1974, when the world economy was seriously affected by the great energy crisis which occured at the end of 1973. As a result of the energy crisis there occurred inflation which was responsible for lower purchasing power which in its wake had brought in a steep fall in tourist movements.

Tourism like all other sectors of production and consumption, suffered the economic consequences of that crisis. As a result of efforts made by governments of industrialised and developing countries to keep inflation within acceptable limits, the tourism activity received a boost once again in the principal generating countries. As a consequence, there was a resumption of international travel. Total international tourist arrivals in the year 1975 amounted to about 213 million. The international tourist arrivals in 1976 were estimated at between 218 and 222 million. According to most recent estimates produced by the Secretariat General, World Tourism Organisation, international tourist arrivals in 2000 were estimated at 710

u


million. The principal generating as well as receiving areas for international tourism continues to be Europe and North America accounting for 70 per cent and 20 per cent respectively of international tourist arrivals. The late twentieth century period can thus be termed as a period which is responsible for introducing a phenomenon called 'mass tourism'.

Although the enormous expansion of tourism has taken place primarily in the advanced industrialised countries, where tourism has become a part of the lifestyle and consumption pattern, it has also shown its might in the developing countries as well. The key role of air transport has been a major factor in the growth of international tourism, especially in respect of long distance and inter-continental travel. Although commercial travel was introduced even before the Second World-War, air transport for the masses has essentially been a post-Second World War phenomenon. The principal period of growth, however, has been post '1950'. With the tremendous increase in speed, safety and comfort provided by the new civil aircrafts like Douglas DC-6s and DC-7s and Super-constellations, there was a noticeable increase in the long distance international as well as intra-regional tourism. In the year 1952 the two-class travel introduced was made possible by the larger capacity of new aircrafts. The increase in the aircraft capacity was also responsible for lower air fares.

The steady fall in the cost of trying also resulted in the increased traffic across the Atlantic. This period also saw the first attempt to introduce a 'package holiday' around air transport which subsequently became the model for most of the present day's global tourism. The most dramatic event which introduced an entirely new dimension of speed, comfort and efficiency to air transport and brought mass travel to its present level was the advent of the jet travel in the year 1958. As a result of the entry of advanced jet aircraft in the civil aviation industry, air travel from the year 1960 onwards grew tremendously.

I

Growth and Development oJTravel and Tourism 43

Advances have been made in the aircraft jet technology with the introduction of newer and sophisticated planes with emphasis on comfort, luxury, speed and safety. New wide-body jets such as Boeing 747, the McDonnell-Douglas DC 10, the Airbus A 300, the Lockheed Tristar L-IOll and the latest all-computerised 'fly by wire' Airbus A 320 are all part of the response to the requirements of the ever-growing travel market. Added to all this, the technical brilliance of the supersonic aircraft like the Concorde and the Tupolev 144 have added glamour to the passenger aircraft industry. It will not be out of place to mention here that the international tourism as we know it today, has been largely shaped by air travel.

Introduction of inclusive tours' is yet another decisive development during this period responsible for mass tourism. In all 'inclusive tours' travellers are carried on charter flights at rates substantially below those of normal scheduled services. The principal causes of the rapid growth of demand for tourism in the highly developed industrialised countries in the course of recent decades can be summed up as economic, social and technological in nature. Rising per capita incomes, coupled with increasing prosperity, had given higher purchasing power and an increase in discretionary incomes to a large majority of people. As a result this has made tourism and travel accessible to many. A larger proportion of people can now afford an 'annual holiday'.

In fact, many can even afford to take a 'second holiday' for a shorter or a longer duration. The economic prosperity has also resulted in many more people owning a private motor car. Increased mobility as a result of use of motor car for travel, therefore, is yet another important economic factor which is responsible for growth in tourism in Europe and North America. The social causes of the rapid growth of tourism on the other hand can be linked with new attitudes towards travel and leisure.


Traditionally considered a luxury, travel now is considered to be a normal activity and an indispensable part of lifestyles and consumption patterns of a large majority of people enjoying a higher standard of living. The present day tourist, having a different kind of background than a traveller of the past, is much more informed.

His ideas about travel are quite different and he comes from a wider social background. His tastes and desires are much more varied. A large number of people are now going abroad to participate in more exciting, challenging and exotic activities like mountaineering, water skiing, trekking, winter sports, underwater swimming and the like. The technologi

o Marketing of Hospitality and

Tourism

The growth of service industries can be traced to the economic development of society and the socio-cultural changes that have accompanied it. The growth of a specific service industry is the result of increasing affluence coupled with the desire to utilize leisure time for leisure rather than for doing odd jobs. Services occupy a place of significant importance in the Indian economy.

The service trade accounts for almost 46% of GDP in India. It is expected that its share would increase to 58% by the end of the century. It employs nearly a fourth more than the people employed in the manufacturing sector in India. The important characteristics of services are:

(a) Intagibility, (b) Inseparability, (c) Heterogeneity, (D) Perishability and (e) Ownership.

When a student pays tuition fees in a college, he is paying for education which is delivered to him by the teachers. Teaching is an intangible service. When one travels by plane, the benefit which one is deriving is a service (transportation) but it has some tangible aspects such as the particular plane in which one flies. In this case the service has both a tangible and intantible aspect as compared to teaching which has no tangible aspect at all.


In most cases a service cannot be separated from the person or firm providing it. A service is provided by a person who possesses a particular skill which is in direct contrast to products which can be produced in factory.

The human element is very much involved in providing and rendering services and this makes standardisation a very difficult task to achieve. The physician who gave you his complete attention in your last visit may behave a little differently the next time.

Services cannot be stored and are perishable. An unsold seat in a cinema hall represents a service capacity which is lost for ever. Apart from the fact that a service not fully utilised represents a total loss, the other dimension of this pershability aspect is that most services may face a fluctuating demand.

When one buys a product one becomes its owner. In the case ofr service one may pay for its use but never own it. By buying a ticket one can see the filmshow in the cinema hall; by paying wages one can hire the services of a driver who will drive his car. In case of a service, the payment is not for purchase but for use of faci~ities. A service is purchased for the benefits it provides.

Marketing Mix in Service Marketing

For marketing of products, the four elements of marketing mix are product, price, distribution and production. In the cases of services, there are three additional elements. These elements are people, physical evidence and process.

The most important issue in the service product is understanding what benefits and satisfaction the consumer is seeking from the service. The marketing of services will be successful only if there is a match between the service product from the consumer's viewpoint and the supplier's viewpoint.

Marketing of Hospitality and Tourism 47

Pricing

In the case of products the term 'price' is used for all kinds of goods but in the case of services, different terms are used for different services. The following terms represent selected services :

One characteristic of services that creates a problem in price determination is the high content of the intangible component. The higher the intangibility, the more difficult it is to calculate cost and greater the tendency towards non-uniform services, such as fees of doctors and lawyers. On the other hand, in services where the tangible component (as in dry cleaning) is higher and the services provided is homogeneous, it is easy to calculate the cost on a unit basis and have a uniform pricing policy. Usually the more unique a service the greater the freedom to fix the price at any level.

Another characteristic of services is that prices are subject to regulations either by the Government or by trade associations. Bank charges, electricity and water rates, rail fare are controlled by the Govt. of India. In other cases, the trade association may regulate prices in order to avoid undercutting. International air fares are regulated by international agreement of airlines, sea freight fares may be regulated by shipping conferences. In all such cases, the producer has no freedom to determine his own price.

The two methods which a service organisation may use to determine prices are cost-based pricing and market-oriented pricing. In the former, the price may be regulated by the Govt. or industry association on the basis of the cost incurred by the most efficient unit. Such a pricing strategy is effective in restricting entry and aiming at minimum profit targets. The market-oriented pricing may either be a result of the competition or customer-priented. In case of competition-oriented pricing, the price may be


fixed at the level which the competitor is charging or fixed lower to increase market share. Customer-oriented pricing varies according to the customer's ability to pay.

While designing the promotion strategy for services, it should be kept in mind that the customer relies more on subjective impressions rather than concreate evidence. This is the cause of the inherent intangible nature of services. Secondly, the customer is likely to judge the quality of service on the basis of performer rather than the actual service. Thirdly, since it is difficult to sample the service before paying for it, the customer finds it difficult to evaluate its quality and value. Thus, buying a service is a more ~isky proposition than buying a product. Fourthly, methods used for promoting services-advertising, personal selling, publicity and sales promotion, are the same as used in the promotion of products.

Advertising is any kind of paid, non-personal method of promotion by an identified organisation or individual. Certain services such as entertainment, passenger and freight transport, hotel, tourism and insurance are advertised heavily in newspapers, magazines, radio, TV to promote greater usage and attract more customers. But certain service professionals such as doctors and lawyers rarely use advertising as a means of increasing their clientele. These groups have traditionally relied on word-of-mouth for attracting new customers. But this situation is changing and we see advertisement in the daily newspaper giving information about the location and timings that a particular doctor is available for consultation.

The problem with using personal selling to promote services is that in certain types of services, the service cannot be separated from the performer. Moreover, it is not a homogeneous service in which exact standards of pedormance can be specified. In such situations, personal selling implies using an actual p

[G.P. Raju.] Tourism Marketing and Management(BookFi.org)

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