Assignment

On

Tourism sector Analysis

Bilvam Tarakbhai Desai

Roll no.-14

Sem-3(GIA)

Group:-Marketing

Batch:-2016-2018

M.B.A

2017-2018

Subject

Consumer Behaviour

Guided By

Dr. Jay Badiyani

Department of Business Administration

Maharaja Krishnakumarsihnji Bhavnagar University

Bhavnagar

Signature_______________

Date: 04/09/2017
Introduction
The Indian tourism and hospitality industry has emerged as one of the key drivers of
growth among the services sector in India. Tourism in India has significant potential considering the
rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread
across the country. Tourism is also a potentially large employment generator besides being a
significant source of foreign exchange for the country.
Market Size
India’s rising middle class and increasing disposable incomes has continued to support
the growth of domestic and outbound tourism. Domestic Tourist Visits (DTVs) to the States/Union
Territories (UTs) grew by 15.5 per cent year-on-year to 1.65 billion (provisional) during 2016 with the
top 10 States/UTs contributing about 84.2 per cent to the total number of DTVs, as per Ministry of
Tourism.
As per Ministry of Tourism, foreign tourist arrivals (FTAs) in India increased 19.5 per
cent year-on-year to 630,000 in May 2017. FTAs on e-tourist visa increased 55.3 per cent year-on-
year to 68,000 in May 2017.India's foreign exchange earnings (FEEs) through tourism increased by 32
per cent year-on-year to reach US$ 2.278 billion in April 2017, as per data from Ministry of Tourism,
Government of India. India is expected to move up five spots to be ranked among the top five
business travel market globally by 2030, as business travel spending in the country is expected to
treble until 2030 from US$ 30 billion in 2015. International hotel chains will likely increase their
expansion and investment plans in India, and are expected to account for 50 per cent share in the
Indian hospitality industry by 2022, from the current 44 per cent.

Government Initiatives
The Indian government has realised the country’s potential in the tourism industry and
has taken several steps to make India a global tourism hub.
In the Union Budget 2017-18, the Government of India announced some initiatives to
give a boost to the tourism and hospitality sector such as setting up of five special tourism zones,
special pilgrimage or tourism trains and worldwide launch of Incredible India campaign among
others.Some of the major initiatives taken by the Government of India to give a boost to the tourism
and hospitality sector of India are as follows:

 The Ministry of Environment, Forest and Climate Change, Government of India, is planning
to revise India's coastal regulation norms aimed at opening up the 7,500 km long coastline
for developmental activities like tourism and real estate.
 The Central Government has taken a number of steps for smooth transitioning to cashless
mode of payment to ensure that no hardship is faced by the tourists and the tourism
industry remains unaffected from government's demonetisation move.
 Maharashtra Tourism Development Corporation (MTDC) has come up with a unique tourism
experience of visiting the open cast coal mine of Gondegaon and underground coal mine of
Saoner, which are near Nagpur and part of Western Coalfields Limited.
 A Tripartite Memorandum of Understanding (MoU) was signed among the Indian Ministry of
Tourism, National Projects Construction Corporation (NPCC), National Buildings Construction
Corporation (NBCC) and Government of Jammu and Kashmir for the implementation of
tourism projects in Jammu and Kashmir.
Advantages in India

Robust demand

Foreign tourist arrivals expected to increase at a CAGR of 7 per cent over 2005–25.
By 2020, medical tourism industry of India is expected to touch US$ 8 billion8.9 million foreign
tourists visited India in 2016, witnessing increase of 11 per cent from 2015.

Attractive Opportunities

India has a diverse portfolio of niche tourism products – cruises, adventure, medical,
wellness, sports, MICE, eco-tourism, film, rural and religious tourism. In January 2016, Federation of
Indian Chambers of Commerce and Industry (FICCI) announced the launch of India Travel startup
Launchpad.

Diverse Attractions

India offers geographical diversity, attractive beaches, 30world heritage sites and
25bio-geographic zones. The country’s big coastline is dotted with a number of attractive beaches.

Policy support

The Visa on Arrival scheme was extended to 150 countries in 2015. A 5-year
tax holiday has been offered for 2-, 3- and 4- star category hotels located around UNESCO
World Heritage sites (except Delhi and Mumbai).

GUJARAT TOURISM: A PARADIGM SHIFT

Gujarat is the 7th largest state, located in the Western part of India, with the longest
coastline of 1,600 km .The government spent nearly US$ 13 million for the ‘Khusbhoo Gujarat Ki’
campaign, which featured Amitabh Bachchan, brand ambassador of the state; the campaign was
a huge success The campaign led to an increase in the number of visitors to 5.4 million in the last
2 years i.e. 2014 and 2015.The government plans to focus on the state's 1,600 km coastline to
promote maritime, coastal and ecotourism. In September 2016, Airbnb, a community-driven
hospitality company, announced that it had signed an MoU with the Government of Gujarat, so
as to boost tourism and create memorable travel experience in the state.

Factors affecting tourism in India

Weather and Climate Resources:
India is vast country and its different parts experience different types of climate. This extraordinary
asset in the form of varied climates can be encashed to promote tourism in the country by attracting
tourists from far and near. Regional variations in the climate of India are caused by five main factors,
viz., (i) the vast size of the country, (ii) tapering of the peninsular India towards the south, (iii) the
latitudinal extent astride the Tropic of Cancer, (iv) situation at the head of the Indian Ocean, and (v)
role played by the Himalayas as a climatic barrier between India and central Asia, protecting the
country from cold and dry winds from central Asia.A tourist will find different types of climate in the
Great Plain of North India, the snow covered Himalayas, in the peninsular plateau area and in the
coastal regions. There are climatic variations from one state to another and even from one district to
another. These climatic variations are of great advantage to engage tourists in a variety of activities
during their stay in the country.However, strong influence of the monsoons along with their typical
rhythm provides underlying unity to India’s climatic diversity. This unity in diversity of the Indian
climate is a potent factor which works to attract tourists. The visiting tourist can choose to stay in
any type of climate and enjoy the changing status of weather while moving from one place to
another.

Landscape Resources:
Geology and physiography are two major bases of landscape resources. These two aspects influence
the landscape and determine the rocky peaks for climbing, cliffs or scarp for hand gliding, steep
snowy slopes for skiing and caves for exploiting them for sightseeing. Rock formation exposed in
areas like Deccan plateau or Ladakh attract tourists interested in trekking.There is ample scope for
rural tourism also. Water bodies and water-points like riversides, gorges, waterfalls, springs, etc.
provide spectacular views to the tourists. Sunbathing and adventurous raffling and rowing are
associated with water tourism.Although all sorts of landscape resources attract tourists, yet the
degree to which different types of landscapes act as tourist’s attraction varies greatly. According a
research report by A. Gilg of Exter University in U.K., mountains comprise the greatest attraction for
the tourist. The other features, in descending order are bold hills, hilly country, plateau uplands and
lowlands. Forest landscape is found to be equally attractive, irrespective of topography. It is for this
reason that National Parks, Sanctuaries as well as Biosphere Reserves are used as tourist spots.
Seeing wildlife in its natural habitat rather than in a zoo or a safari-park is termed as Nature Tourism
these days. Vegetation in wilderness and wildlife which depends on it constitutes a very important
element of tourist landscape.

Seascape Tourist Resources:

Coastal waters of the mainland of India and that of the groups of islands (Andaman & Nicobar
Islands in Bay of Bengal and Lakshadweep in Arabian Sea) comprise another major source of tourist
attraction. Sandy beaches, coves, spits and lagoons, reefs and seaside cliffs are tourist’s hot spots.
These are visited for sunbathes, swimming, boating and surfing. This type of tourism flourishes only
in those areas where waves are gentle and tidal currents are not dangerous.

Historical and Cultural Resources:

These are manmade features and are found in almost all parts of the country. Such resources are
associated with historical, religious or cultural events. A rich historical and cultural heritage has
developed during long course of history of India. These include statues, shrines, tombs, minarets,
forts, palaces, ancient monuments as well as recent buildings and are famous for their architectural
designs and structural beauty.
Adopted Strategies

Marketing strategy

Players are using innovative marketing strategies to succeed in this sector. For example:The Goa
Tourism Development Corporation (GTDC) is planning to organise familiarisation trips or “fam” trips
for international tour operators to showcase Goa as a tourist destination. It has also planned to
promote Goa in international markets through the print and electronic media. Benefits such as such
as priority reservation and Indian rail pass for train travel are also being extended to foreign tourists
Ministry of Tourism organized the 1st ever Incredible India Tourism Investors Summit in
September 2016, to bring together state governments and global and domestic investors, for
funding investment ready projects in the country.

One stop solution

Players are trying to ensure convenience for their customers by providing all services available on
a single portal. For example, makemytrip.com and a host of other websites provide a
comprehensive basket of offerings which include outbound and inbound travel for leisure and
business trips, hotels and car booking, holiday packages within India or abroad, etc.

Multiple channels

Players are opting for many channels to maximise sales and ensure convenience for their customers.
For example, Thomas Cook and Kuoni India launched their online portals to compete with others. On
the other hand, makemytrip.com is planning to go for the offline channel to complement its existing
portal and has already launched mobile apps for maximising sales.

Literature review

Determinants of Market Competitiveness in an Environmentally Sustainable Tourism Industry

Salah S. Hassan

First Published February 1, 2000 Research Article

This article introduces a detailed new model of competitiveness that focuses on environmental
sustainability factors associated with travel destinations. The multiplicity of industries involved in
destinations' planning and development requires the use of a competitiveness model that examines
the relationships among all stakeholders involved in creating and integrating value-added products
to sustain resources while maintaining market position relative to other competitors. The
development of future destinations must be guided by effective and efficient management with a
focus on sustainable customer base. Thus, destination management should focus on a systematic
examination of unique comparative advantages that provide a special long-term appeal to the target
travel customer segments. Therefore, sustaining the longevity of a given destination becomes a
function of responding to market demand and competitive challenges. It is critical for future
destination development plans to be compatible with market needs and environment integrity for
the industry to maintain its economic viability.

Marketing Third World Countries to the Western Traveler: The Case of India
Sudhir H. Kale, Katherine M. WeirFirst Published October 1, 1986 Research Article
International tourism can provide third world countries with much needed foreign exchange and
increased employment opportunities. Too many countries, however, have concentrated their efforts
on the economic aspects of tourism at the expense of developing marketing programs to attract the
Western traveler. This study focuses on the case of India to determine what factors attract Western
travelers and what repels them. We conclude that, like India, other third world countries must
promote their positive attributes as perceived by prospective tourists, while also working to
overcome their negative image among prospective travelers abroad. Only in this way can they
increase the flow of Western tourists to their countries.

Strategic determinants for the selection of partner alliances in the Indian tour operator industry: A

cross-national study

Author: Mohinder chand

Department of Tourism and Hotel Management, Kurukshetra University, Kurukshetra 136 139,
Haryana, India

Department of Marketing and Operations Management, University of Macedonia, 540 06

Thessaloniki, Greece

Available online 4 May 2011

The purpose of this study is to investigate the strategic determinants for the selection of partner
alliances in the Indian tour operator industry. Using data from 102 UK, USA, Canadian and French
tour operators in India, the study revealed that there is a set of partner selection criteria that is of
most importance. The study revealed that nationality of the international tour operator is the major
characteristic that discriminates partner selection criteria. Alliance performance is positively
associated, in a descending order, with tour package formulation efficiency, technological expertise,
local operation expertise, and marketing system and status. Thus, the study indicates some clear
messages to policy makers and practitioners.

Travel agents as facilitators or inhibitors of travel: perceptions of people with disabilitie.

Bob mc Kerchar, Tanya Packer,Methew k Yau, Patric lam

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hung Hom,
Kowloon, Hong Kong

School of Occupational Therapy, Curtin University, Perth, Australia

Department of Rehabilitation Sciences, The Hong Kong Polytechnic University, Hong Kong

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong

Received 9 September 2002, Accepted 22 October 2002, Available online 19 March 2003
 Travel agents remain the primary source for people with disabilities to purchase travel
products. How effectively travel agents perform this task has a direct impact on the ability of people
with disabilities to travel. A good travel agent can facilitate travel, while a poor one creates another
obstacle to participation in travel by people with disabilities. This paper examines the perception of
people with disabilities towards the effectiveness of travel agents in Hong Kong. For the most part,
respondents suggest that travel agents are largely deficient in catering to the needs of this specialist
market. Two causes were identified: attitudinal and structural. Travel agents are largely ignorant of
the needs of people with disabilities, which leads to overt or subtle discrimination. In addition, the
financial realities of the retail travel sector in Hong Kong force agents to push high commission, easy
to book packaged tours that may not be suitable for the tourist with a disability.

Critical service features in group package tour: An exploratory research

Ku -ching wang,An-tian hsieh,Tzeng-chang huen

Department and Graduate School of Tourism Management, Chinese Culture University, Taipei,
Taiwan, ROC

College of Business, Chinese Culture University, Taipei, Taiwan, ROC

Department and Graduate School of Tourism Management, Chinese Culture University, Taipei,
Taiwan, ROC

Received 26 June 1998, Accepted 3 May 1999, Available online 22 May 2000.

In many countries, especially in Asia, the group package tour (GPT) is the mainstream mode of
outbound travel. Nevertheless, surprisingly little effort has been devoted to improving our
understanding of the grounded service features of the GPT. In order to fill this gap and thereby
enhance the foundations of group travel theory, this study conducted exploratory research to
identify the critical service features of the GPT. Sample data come from the customer lists offered by
a large wholesale travel agency. Data were collected from both customers and employees using
critical incident technique (CIT). After the data collection, a rigorous categorization exercise was
conducted; 25 distinct grounded service features emerged from the data. At the end, the authors
also discuss implications for future systematic investigation, model development, and make
recommendations for tour operators.

Emerging Trends in Japanese Package Tourism

Daisaku Yamamoto, Alison M. Gill

First Published November 1, 1999 Research Article

Using large-scale market survey data from 1989 and 1995, the authors examine the distinguishing
characteristics of Japanese package tourists in comparison to nonpackage tourists. While there is a
decline in package tourism for Japanese overseas tourists, there are many attributes of the package
tourist that suggest the continuing demand for this form of travel.

The Demand For Package Tours: A Mode Choice Model

Pauline J. Sheldon, James Mak
First Published January 1, 1987 Research Article

A model is presented to explain a traveler's choice of vacation mode. The possible modes considered
are independent travel, travel on an inclusive package tour, and travel on a basic package tour. The
model is tested using logit analysis and survey data on travel to the Hawaiian Islands. The results
indicate that purchasers ofpackage tours are likely to be elderly, be intent on visiting several
destinations, contain few people in the party, intend to make short visits, and be first-time visitors to
the destination.

Marketing Culture and Customer Retention in the Tourism Industry

Kwaku Appiah-Adu, ALAN FYALL & SATYENDRA SINGH

Pages 95-113 | Published online: 28 Jul 2006

During the last few years considerable attention has been focused on the essence of cultivating a
culture which fosters the effective operationalisation of marketing practices in tourism firms. This
issue is considered an important source of competitive advantage in the tourism industry where
sophisticated marketing is still in its developmental stages. Considering the high level of interaction
between a tourism firm and its customers, the significance of effective marketing activities cannot
be overstated. In addition, maketing academics and managers assert that a strong marketing culture
will lead to customer retention via customer satisfaction. This study is based on an empirical
examination of the link between UK tourism firms’ marketing culture and customer retention. Our
results reveal a moderately strong relationship between marketing culture and customer retention.
Finally, implications of the findings for tourism managers and avenues for future research are
discussed.

Exploring consumer attitude and behaviour towards green practices in the lodging industry in

India

Author(s):Kamal Manaktola (School of Hospitality & Tourism Management, Institute for

International Management & Technology, Haryana, India)

Vinnie Jauhari (School of Hospitality & Tourism Management, Institute for International
Management & Technology, Haryana, India).

Purpose
– The study seeks to explore the factors which influence the consumer attitude and behaviour
towards green practices in the lodging industry in India and also to explore the consumers'
intentions to pay for these practices.

Design/methodology/approach

– A quantitative and qualitative research methodology using a questionnaire along with

secondary research has been proposed. A structured questionnaire has been used using
convenience‐sampling techniques from National Capital Region in India. Correlation and factor
analysis has been used to explore consumers' attitudes and behaviour towards green practices
in the lodging industry.

Findings
– The consumers using hotel services are conscious about environmentally friendly practices in
India. They patronise the hotels that have adapted green practices though not compromising
on service quality. The consumers would prefer to use lodging that follows these practices but
are not willing to pay extra for these services. Indian hotels have the competitive advantage
over similar products if they follow green practices.

Practical implications
– The hotels would have to invest in environmentally friendly practices and look at long‐term
gains. The government needs to acknowledge and institutionalise the practice by instituting
rewards and offering benefits in taxes.

Originality/value
– The paper attempts to bring out facts regarding customer buying behaviour towards green
practices in the Indian hotel industry. The resource scenario in India is grim with regard to the
water and sanitation. The tourism industry has a big responsibility in ensuring that business
models adopted are sustainable in the long run and hence the need to imbibe green practices
as a preferred business model.

Exploring price and non-price decision making in the UK package tour industry: Insights from

small-scale travel agents and tour operators

Brian Davies, Paul Downward

Staffordshire University Business School, Stoke on Trent ST4 2DF, England, UK

Loughborough University, Leicestershire LE11 3 TU, England, UK

Received 23 November 2005, Accepted 17 September 2006, Available online 18 December 2006.

The emerging literature on the UK package tour industry has drawn upon diverse academic
disciplines each carrying different methodological presuppositions. Underplayed is the intrinsic
context within which tourism providers operate.

This paper presents the results of a questionnaire research investigation to generate practitioners’
insights into the competitive behaviour of the industry in the UK. Such insights are central in an
understanding of the perceptions and processes at work. Oligopoly behaviour appears to be present
amongst both large company groupings and small enterprises. The exploratory analysis suggests the
need to re-emphasise the behavioural nature of oligopoly. Further, the tourism ‘industry’ shares this
characteristic with manufacturing, previously assumed to be widely different.

Research Methodology

I contact to the people directly for research and data collected directly from the people .
Data collection

Data is collected through online questioner with the help of Google forms and we collect primary
data through different class of people. Secondary data is collected through different articles journals
and online blogs.

Sample size

Sample size of the research is 40.Sample place Bhavnagar.

Research Instrument is online questioner.

Non probability sampling method:-

In every population having not equal chance for selection of sample because here
selection of population depends upon reference of researcher. In this study the Convenience
sampling method has been used.

Analysis

Gender ratio in survey.

Gender

Female
25%

Male
75%

In this research there are 10females and 30males.

Occupation of persons who take part in research.

 Other
10% Occupation
Business
10%

Salaried
Student
20%
60%

In this research 4persons from business 4persons from other part 8persons are salaried 24persons
students.

51 Years
and Age Group
above
31 to 8%
50 Years
7%

18 to 30
Years
-85%

8lakh and
above4 Income
4%
3 to8 Lakh
19%

Below
3Lakh
77%

1. For Your tour which is preferred?

 International
20%

Domestic
80%

2. For your Package tour which operator you select?

National
48% Local
52%

3. Give your preferences for tour places.

Other 12

Hill Station 29

Beach 23

Historic Places 9

Holy Places 7

4. For tour which Package you select?

 Luxury Ordinary
44% 38%

Delux
18%

5. You are ready to pay more for extra facility?

Yes
47%
No
53%

6. Give check in below what you want in your package.

Facilities 19

Good Meal Plan 26

Hotels 19

Less Money 22

Comfort 30

Luxury 9

7. For you tour package how much you spend?

 Less
5%
High
10%

Average
85%

Questioner

Survey on Travel Packages

Name:-_______________________________________________________

Gender: Male Female

Occupation: Student Salaried Business Other

Age Group: - 18 to 30 Years Income: - Below 3Lakh

31 to 50Years 3 to8lakh

51 and above 8Lakh and above

1. For your tour which is preferred?

Domestic International
2. For package which operator you select?
Local operator National Operator
3. Give Preferences for tour places below in Tick.
Holy place Historic Places
Seashore place Hill Station
Other
4. For tour which comfort package you select?
Luxury Deluxe Ordinary
5. You are ready to pay more for special facility?
Yes No
6. Give Preferences for below in Tick.
Luxury
Comfort
Less Money
Hotels
Facilities
7. For tour which cost package you select?
High Average Low

Thank you
Conclusion

From the above research here we conclude that people are more confident on offline local tour
operators and people mainly are come from middle class and travel in deluxe class average money.
The main tourist attraction place is hill station compared to other place. Mainly middle class family
travel in domestic sector.
References

 http://www.sciencedirect.com/science/article/pii/S1090951611000290
 http://journals.sagepub.com/doi/abs/10.1177/004728758602500201
 http://journals.sagepub.com/doi/abs/10.1177/004728750003800305
 http://www.sciencedirect.com/science/article/pii/S0261517702001073
 http://www.sciencedirect.com/science/article/pii/S0261517799000473
 http://journals.sagepub.com/doi/abs/10.1177/004728759903800206
 http://journals.sagepub.com/doi/abs/10.1177/004728758702500304
 http://www.tandfonline.com/doi/abs/10.1080/02642060000000022
 http://www.emeraldinsight.com/doi/abs/10.1108/09596110710757534
 http://www.sciencedirect.com/science/article/pii/S0261517706001919
 https://www.ibef.org/industry/tourism-hospitality-india.aspx
