Tourism Marketing in India: A Case Study: Manikanth Sharma
Tourism Marketing in India: A Case Study: Manikanth Sharma
Tourism Marketing in India: A Case Study: Manikanth Sharma
Introduction
From ‘the land of rising sun1’ to ‘the incredible state of India2’ and from
‘heaven on earth3’ to ‘God’s own country4’, every part of India has its
own unique essence and culture. India not only has a diverse ethnicity
among people but huge diversity in terms of flora fauna. India takes the
pride of being one of the oldest civilization and all of its varied rich and
vibrant culture. People tend to adopt for the commodities that they see
most frequently. Hence, advertisement and promotion has become a
common way of reaching to the millions of people at the same moment.
Before a product is launched in the market, its promotion starts to flash
on every screen. Similarly, today in every corner of the world, the
beauty and heritage of the region is being promoted; it not only keeps
the heritage alive but also contributes to the economy of the nation. “It
is accepted as the potent engine for inclusive social economic progress
at universal level through its forward and backward linkages and
ability to create employment in the economy. Tourism sector has a very
high employment potential with approximately 90 jobs creation per
Rs. 10 Lakhs of investment5”. In 2015, the Travel & Tourism
Competitiveness Index (TTCI) of the World Economic Forum has
ranked India 52nd out of 141 countries (65th out of 140 countries in
2013).
People travel for many reasons nowadays, such as, recreation,
adventure and sports activities, holidays, conferences and
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conventions, cultural attractions. Its importance was Even, if a region or location is fully developed in every
recognized in the Manila Declaration on World Tourism of aspect for tourists visit but it needs marketing and
1980 as "an activity essential to the life of nations because of promotional schemes. In other words, through the
its direct effects on the social, cultural, educational, and advertisement in various forms including print and media,
economic sectors of national societies and on their digital marketing etc., are the invitations to millions of
international relations”. Although, tourism existed even in tourists across the globe.
ancient era as well, but got narcotization as an activity which
‘Incredible India’ is the very first initiative of its own kind,
could foster the economic development of the country. We
with the primary objective of providing India a unique
do have evidence from the ‘Arthashashtra’ which reveals the
identity in the World. It appeals the domestic and
importance of travel infrastructure and further about the
international tourists to travel India. Further, another
travelers being accommodated at Sarais. Today, the
initiative ‘Atithi Devo Bhava’ which serves a dual purpose
presence of ‘Sarais’ around Delhi is evidence of the
where we ask the international tourists to experience the
existence of tourism. In ancient times, traveling for pleasure
hospitality of India while asking people of India to
was a tradition of the royal courts. But later with the fall of
understand their origin and values. With the greater
great empires, the mobility of people decreased.
emphasis on the e-world, or the motto of making of ‘Digital
Tourism can be inter-national or intra-national depending India’, Incredible India’s online campaign increased tourists
upon the origin and destination of a tourist. Inter-national arrival from 19% to 84% since its launch in 20026.
tourism is a vital source of income for an economy as it adds
With the advancement of technology and social media, the
up to the Forex reserves of a country’s economy. Growth in
role of marketing has became significant. With globalization
tourism industry boosts the economy of a country and in
and liberalization of economies, with increasing
return it improves the employment and infrastructure. At
competition in every sphere of life, the marketing became of
present, India has huge potential in tourism industry in terms
utmost importance. Today, prior to launching of a product,
of employability and revenues. Improvements have been
its marketing and promotional strategies are determined.
done, apart from good infrastructure, hotels and roads,
When we talk about tourism marketing, here a nation
tourism also demands efficient telecommunication, banks,
presents its beauty and culture as a commodity to be sold to
health care, security facilities etc has to be developed, that
consumers who are the tourists.
seems promising enough to attract tourists across the world.
Figure 1: The Systematic links between demand and supply: the influence of marketing.7
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Volume 10 Issue 5, November 2017
The above given figure reveals the marketing strategy in research has been done concerning with the issues like the
tourism sector, determining all the participants in the role of tourism sector in an economy to the factors affecting
process of marketing tourism. The simple market concept of the tourism sector and role of various tourists organizations
demand and supply can be observed here as well. Human in the development of the industry and also analyzing the
beings have natural tendency of being curious about the trends and patterns in the tourism sector both temporally as
things unknown to them. They have the desire to travel and well as spatially. The present study deals with the marketing
dwell into the new places and experience new things under aspect of tourism which is the ultimate promotional and
alien environment. Till this desire continues to grow, the branding tool for the enhancement and growth of the tourism
tourism would flourish. What marketing in tourism does is, industry in India.
fuel the desire of people to travel by attractive promotional
According to Iamsoo et.al. (2013) “The Role of Marketing
schemes.
on Tourism Industry” clearly focuses on the significance of
What is Tourism Marketing? It can be defined as “the marketing on tourism Industry. According to him in today’s
organized, combined efforts of national tourist bodies competitive world marketing is much more important than
and/or the businesses in the tourism sector of an the productions and sales of the product. He believes that the
international, national or local area to achieve growth by lack of marketing in the developing country is the one of the
maximizing the satisfaction of tourists. In doing so, tourists reason that the tourism industry has not been able to reach to
bodies and businesses expect to receive profits”. The AIDA its optimum levels. He takes a case study of Iran and
(Attention-Interest-Desire-Action) model in marketing can concludes that despite of much potential and possibilities
be very well applied in this context. Foremost role of existing in the country, the lack of attention towards tourism
marketing is attracting the attention of the tourists in marketing, tourism industry have not achieved considerable
particular destination which would be further assisted by progress. He further talks about the role of tourism industry
creating their interest in the destination by showing their in the development of the nation. The direct benefits he
mythical stories, scenic beauty or any other cultural aspect referred to are the economic growth and contribution to the
etc. Once the interest is created, the desire to visit that place GDP of the host country and indirect benefits includes the
is created and once the desire is created then it becomes quite better infrastructure facilities including roads and railways
easy to take the tourist to the destination with an appropriate and also the technology and communications and further
action plan, with attractive deals. Hence the tourism strengthens the social institutions like health care and other
marketing starts before a tourist reaches a destination. Its welfare facilities
process begins right from persuading the consumer/tourist
Now another important aspect to marketing in tourism apart
to visit the place to noting down his experience and
from a planning strategy is the medium used for the
suggestions after the tour/trip ends. Mill and Morrison
promotion. A wide range of medium is available including
(2013) as “a continuous, sequential process through which
print media such as newspaper, magazines and promotional
management in tourism plans, researches, implements,
banners and electronic media including television, radio and
controls and evaluates activities designed to satisfy both the
internet (digital marketing). Information Technology has
customers’ needs and wants and their own organization’s
not only enhanced the working of marketing and has made it
objectives. To be effective, marketing requires the efforts of
easier and cheaper but also the coverage over space has also
everyone in an organization and can be made more or less
increased. A person sitting anywhere in the world can see the
effective by the actions of complementary organizations.8”
tourist’s destinations of India. Parashar and Indolia (2013)
Objective of the Study examined the contribution of media to promote the tourism
in India. India has been recognized as first among the newly
A qualitative approach has been adopted while dealing with
independent Asian countries, to promote tourism at
the objectives to be fulfilled. The following are objectives of
international platform. He explains how the tourism
present study.
department spends about Rs. 4 crore every year on the
To study the possible procedure/process involved in promotional campaigns on international platform through
marketing in tourism sector. media on channels like BBC, Discovery, CNN, National
Geographic Travel & living and also the national channels
To analysis the current promotional and marketing
like Sony, Zee TV etc. Further he specifically mentions the
schemes adopted by various tourist organizations in
joint venture of CNBC AWAAZ with the e-commerce
India.
business One Stop Shop, which honored the India’s best
To study the influence of the tourism marketing in India travel destinations and tourism services at the fourth edition
and the other South Asian nations. of the CNBC AWAAZ Travel awards 2010. Such award not
only encourages the already existing firm but also invites
Literature Review
new firms to promote tourism.
When it comes to the tourism in a country, a large scale of
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Today, tourism has emerged as one of the largest service In those areas but also cut those locations from becoming a
industry in context of the Gross revenue earned as well as terrorist destinations. For instance the ‘favelas’ of Brazil. In
foreign exchange earnings. Vethirajan and Nagavalli (2014) India Slums are created as a failure of planning process. But
explained the need of marketing in Tourism Industry. They in Brazil, Slum tourism has been developing at a faster pace
mentioned the incentives taken in order to encourage and using it to their economic benefits. Similar, as
tourism industry, including increased online travel retail mentioned above India is known for its unique organic
sales. The introduction of smart phones and tablets and culture, international tourists finds our village at good
mainly their wide accessibility to the every strata of the tourists destinations with natural beauty but the lack of
society, promises an increase in tourism via online booking proper infrastructure, networking etc reduces the
channel. India is a diverse country and have diverse opportunity to use our village culture to our benefit. A new
destination from the areas where one can observe snowfall dimension of marketing has been studied by Kakkar &
to the deserts to peninsula and islands i.e. a miniature of Sapna (2012) in their work “Impact of tourism on Indian
world climate and rich cultural heritage. Hence as Economy”. Apart from the existing aspects that encourages
mentioned by Tiwari (2012) in his work about more the tourism, there are other factors as well which speeds up
emphasis on the formulation of product development the growth of tourism industry, For instance India took the
strategies and marketing policy strategies, in order to aware pride of hosting Commonwealth games in 2010, the visit of
people about the true India. President of USA, the sports events like 20/20 IPL Cricket
matches etc also encourages tourism in India.
A similar approach has been worked upon by Patawari and
Sharma (2011) in “A comparative study of India and Till now we have come across the works which discusses
Thailand Tourism”. The SWOT (strength, weakness, about Indian tourism industry being underdeveloped and the
opportunity and threat) analysis observed that while importance and need of marketing has been mentioned. But
hospitality and high technology advancement are the annual report by Ministry of Tourism, India mentions
opportunities of Thailand with the strengths of good how the lack of marketing and inappropriate marketing has
infrastructure, dedication to tourism, medical facilities and become an obstacle in the development of tourism industry
security and safety. While India has weakness of of poor to its full potential in India. For instance, the two major
infrastructure, lack of safety and health care facilities. initiatives by India i.e. ‘Incredible India’ and ‘Atithi Devo
Further, the less technology development remains a threat to Bhava’ both are lacking the welcoming aspects. Both focus
the tourism industry of India. Today, we talk about the on portraying the art and culture. But one need to keep in
importance of ITC in marketing in tourism industry, but still mind taste of people are varied hence a more of diverse
in India there are regions where networking issues are of aspects need to be shown for instance the adventure we
major concern, this not only reduced the consumers living promise to the tourists.
Discussion
Figure 2:Trends in the Tourism Industry in India
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Volume 10 Issue 5, November 2017
In 1951, the international tourist's arrival stood at only 17 impact was not observed. It could also be attributed to the
thousands which has rose to about 80 lakhs in the year 2015. lack of marketing and promotional approach followed.
Over the last decade, the foreign tourist arrival has seen a There are various factors that determine the tourists market
growth rate of 200%. This could be attributed to the of a nation say political stability, economic stability, social
initiatives taken by the government of India (GOI) at every stability etc. Hence it's a complex aspect so the decline and
level and in every form. For instance, we can observe a growth could not be attributed to a very single factor. Today,
negative growth rate in the year 2001-02 in the arrival of India has a very negative perception among the international
foreign tourists but after the launch of 'Incredible India' we tourist community, with poor infrastructure, poverty and
proved to be one of the most successful programme initiated lack of proper health care facilities are prominent which
by GOI, observe a growth of 14.3 for the next year 2002-03 drastically destroys the image of India as a popular tourist's
and 26.8% for the year 2003-04. Such high growth rate after destination. Hence, the promotional and marketing schemes
a decline is due the marketing and promotional strategies introduced are supposed to improve the image of India on
adopted by the government. Further, we can observe is what the world map. Only attracting tourists with the rich culture
lacks in India is lack of proper implementation of policies. and heritage aspects would not give the desired results. A
Even if the policies are implemented they do not inculcate more diverse and stable view of India needs to be developed.
the desired results for a longer period of time. After the Also, tourism is considered important because of its
'Incredible India' programme, it was assisted by various economic significance in growth of the nation.
other programmes. However, the wide and meaningful
A similar pattern can be observed here, where the earnings issue of major concern. Although the absolute number of
observes the maximum growth for the same period as the foreign tourists arrivals may be increasing but it shows that
‘Incredible India’ was launched leading to increase in India’s full potential have yet not been explored. In terms of
number of tourists visiting India. Also, the economic market Domestic market, we observe an increasing trend in terms of
instability and recession can badly affect the tourist market the contribution of tourism sector to the GDP as well as
of the countries all over the world. The same can be observed employment. The contribution to GDP is more or less same
in the year 2009 after the economic slowdown in the year in the past 5 or 6 years, while the employment has been
2008. Also, the decreasing earnings after the year 2012 is an increased from 10.17% to 12.36%.
Year Contribution of tourism in GDP of the country (%) Contribution of tourism in Employment of the country (%)
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Marketing Strategy for tourism in India: mobile app of ‘Incredible India’ is a promotional stunt.
Today, before a person actually moves to a place, knows all
While discussing the marketing in tourism, one needs to
the details of the destinations.
focus on the 7 P’s established in order to generate a more
sustained and appropriate marketing approach. E. People: This dimension talks about the hospitality aspect.
Whenever a person travels to another place, he/she interact
A. Product: A combined form of activities associated with
with many people including the ones who are associated
tourism need to be taken into account. Be it hotels,
with the product and ones who are the local residents.
transportation, health facilities, or food etc. It’s the most
important aspect need to be focused, it’s basically what the F. Process: It talks about the ease with which a product can
whole concept of tourism revolves around. The attractions be purchased or accessed. The ease can be provided with
or the physical beauty of country need to be presented in a better marketing strategies. Main key elements in process
manner that more and more tourists gets attracted to that. are planning, procedures, documentation, quality, feedback
Tourism it’s an intangible experience, once the trip ends its and reviews.
just the memories we carry forward with us hence it’s the
G. Physical evidence: This basically deals with reaching to
host responsibility to make that experience immemorial.
the expectations of the consumers. Before moving to the
Besides the attractions other important aspects include
destinations, we always have an image of the destination,
accommodation, a homely feeling in an alien environment
hence physical evidence deals with what they actually
and a safe and secure stay assisted with the best hospitality
observe ones they reach to the destination. Hence, we can
and amenities that could be provided to the consumer. Also,
observe that there exist various aspects to the consumers’
the accessibility creates a vital role. Now once the essence of
demand, a particular marketing strategy need to be adopted
product is understood, the most critical step in marketing in
in order to deliver a physical environment similar to the
tourism is positioning of product in the market. Also, today a
perceived environment.
large variety of tourism has been introduced and product
created would vary for the different group of people where With the invasion of technology and ICT, the international
some prefer for an adventurous trip while some opt for a marketing has also been focused upon. A collaboration of
spiritual activity. Hence, a clear distinction should be made marketing at national and international level targeting
between the different strata of the target population before specific strata of people with the required product as per the
presenting the product. demand need to be addressed in order to achieve wide and
meaningful impact of the strategy adopted.
B. Price: most important aspect from the consumers’ point
of view. The product details would always be compared with Promotional and marketing strategy adopted in India:
the price and its worth would be calculated. The increasing Right from the beginning when India was born an
mobility of people and increasing tourism is due to the independent nation, efforts have been made to utilize its
emerging powerful middle class. But they have fixed heritage to earn economic benefits. It would not only result
into economic growth but also keep the heritage alive. In
Themselves under a budget they do not want to cross. Hence
1960s, India Tourism Development Corporation was
the aim of marketing approach here is profit maximization
formed to provide the homely comforts to the international
for the organization while also influencing the consumer and
tourists. The major focus of ITDC was to establish an
proving the worth of the product. The price factor involves
elaborate modern infrastructure (The Ashoka group of
both the monetary aspect including fee or cost of the product
Hotels). The major role was played by Air India for the
and the non-monetary price in terms of time. The price
promotion of tourism in India and promotional centers were
would be directly affected by the demand and supply of the
set up in London and Frankfurt. It was in 1982, when the first
product in the market. The increased number of firms in the
‘Tourism Policy’ was formulated which talked about the
tourism sector has increased the competition in the market
‘Travel Circuit’ concept. During the eight five year plan a
hence a unique market approach can give a firm upper hand
National Action Plan for tourism was presented in the
in the market.
parliament which focused on the infrastructure and effective
C. Place: Well the destination or place of visit determines marketing and promotional efforts in the domestic as well as
the price and product. But the place should have a good overseas market. Certain specific tourist’s destinations were
transport system, connectivity through roads and railways, listed out. Major thrust on tourism was laid in the ninth five
A very small proportion of people would prefer to travel to Year plan. It talked about the product and human resource
the place which has poor connectivity. development. It was felt that the fierce competition in the
tourism sector at global level, nations are trying to divert
D. Promotion: The main tool of marketing and the most
tourists traffic towards their own countries hence the
significant in present scenario. Promotion can be done by
importance of marketing a promotion was felt. The elements
various forms including internet, print media etc. Brochures,
of the marketing and promotional efforts at international
digital promotion like introducing various mobile apps. The
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Volume 10 Issue 5, November 2017
level included advertising, brochure printing in the local level. Following Institutions are undertaking the
languages, production of advertisement promoting Indian promotional and marketing activities in Indian tourism:
tourism including festivals of India, trade fairs, etc.
1. Ministry of Tourism (MoT): It undertakes all the
At National Level: Social Awareness Campaigns have been planned activities regarding the promotion of tourism at
in action promoting green and clean environment, domestic and international level and also deals with the
infrastructure, hospitality, a good social conduct towards development of tourism infrastructure. It is responsible
behavior. “Which side are you in?” someone who glorifies for projecting the image of India overseas using various
that nation in front of others or one who adds shame to the media tools.
nation. The ‘Atithi Devo Bhava” advertising campaign
2. India Tourism Development Corporation (ITDC):
telecasted on all the television channels across the country.
While the MoT deals with both the private and public
These were not only limited to television but to major
undertakings, ITDC deals exclusively with the public
websites in the country. Further an ‘outdoor campaign’
sector. It also plays a crucial role in the development of
undertaken on ever connecting terminals of buses, metros
backwards regions having tourism potential which
and railways. Social awareness campaign in the digital
ultimately leads to regional balance. It deals with the
cinemas/ theaters was also released.
activities like executing tourism and engineering
At International Level: The ‘Global Print Campaign’ projects, event management, hospitality sector etc.
showcasing the varieties of tourism products available to the
3. Hotel Association of India (HAI): It’s a hospitality
consumers. Further, awareness on e-tourist visa was spread
industry in India. Its aim is to create awareness
in international markets for promoting Indian tourism. Other
campaigns regarding the importance of tourism
than the campaigns certain initiative like celebrating ‘Bharat
industry in the growth and development of the nation.
Parv’ and ‘World Tourism Day’ would further help in
making India as an international Tourist Destination. Apart 4. Indian Institute of Tourism and Travel Management
from the internet and television, print media has also played (IITTM): It aims at providing education and training
a wide role in the marketing and promotion of tourism in for tourism industry. As we mentioned, the importance
India. A small yet powerful initiative included the of people (1 of 7 p’s) hence, hospitality is crucial for
‘Incredible India’ carry bags produced for distribution in tourism industry.
domestic and overseas offices. This seems little steps but
Other institutions are National Council for Hotel
inculcate wider impact. Also, various trade fairs and travel
management and Catering Technology (NCHMCT), Travel
bazaar were organized.
Agents Association of India (TAAI), Indian Association of
The 100% foreign investment in the hotel and tourism Tour Operators (IATO) etc fosters the growth of tourism
related industry, the introduction of e-visa and visa on arrival industry in India. The Domestic Promotion and Publicity
etc are incentives to the people to travel across India with (DPHH) were launched in 2004 under the Ministry of
great ease. It is evident from the fact that the inflow of Tourism, Government of India. It aims at creating awareness
tourists increased after the introduction of e-visa from 24963 among people regarding the potential tourist destinations in
(Jan 2014 to Nov 2014) to 341683 (Jan 2015 to Nov 2015). India. The success of the scheme further encouraged
Today medical tourism has been rising in India; M-visa has government to make more investment in the scheme. It is
been encouraged by the government. A recent report by evident from the data released by Ministry of India where
KPMG records a compounded annual growth rate of 27% expenditure on DPHH increased from 60 crore in 2009-10 to
over the last three years (US$ 3.9 billion). The most recent 142 crore in 2014-15. Various regional schemes were also
National Tourism Policy in 2015 not only encourages launched with the two central schemes of ‘Atithi Devo
domestic tourists to visit their country but also adds few Bhava’ and ‘Indian for India’ in order to create awareness
destinations in India as ‘must see’ destinations at global about tourism.
Table 2: Expenditure on Advertisements to Promote Tourism in Foreign Countries
Financial Year Expenditure (Rs. In Crore)
2012-13 182.83
2013-14 195.29
2014-15 166.35
Source: Incredibleindia.org
The importance of information technology was realized for statistics provided by government of India the annual
better marketing and promotional strategy; hence we expenditure for promoting tourism rose from 14 crore in
observe a significant increase in the development of 2009-10 to 45 crore in 2013-14.
technology for promotion of tourism Industry. As per the
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Also new schemes have be launched in the financial year for Pilgrimage Rejuvenation and Spiritual Augmentation
2015-2016 including Bharat Paryatan Bhawan Major Drive (PRASAD) with an annual expenditure of 5 crore,
works, Swadesh Darshan - Integrated Development of 569.4 crore and 110 crore respectively.
Tourist Circuits on Specific Themes and National Mission
Table 3: Expenditure (in cr.) on various schemes in Indian Tourism Industry
Schemes 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Product/Infrastructure 522 522 562.99 575 400 375
Development for
Destinations and Circuits
Externally Aided 5 10 3 2 1.5
Projects
UNDP Endogenous 5
Projects
Assistance to IHMs /FCI 102 95 102 110 150 165
/IITTM/NIWS
Capacity Building for 12 17 25 50 100 117.4
Service Providers
Overseas Promotion and 250 275 280 267 350 330
publicity
Domestic promotion and 60 75 75 90 120 142
publicity
Accommodation 10 10 2 10 10 0.1
Infrastructure
Informational Technology 14 15 20 15 45 38
Development
Marketing research 4 5 4 20 30 28
including 20 years
Perspective Plan
Assistance to large 5 15 20 40 25 28
Revenue Generating
Projects
Creation of land Bank for 1 1 0.01 1 0.5 0
hotels
Tourism Infrastructure 10 10 5 30 50 57
Development (Central
Agencies)
Tourism Circuits 500
National Mission for 100
Beautifying Pilgrimage
centers
Source: India stat (Scheme-wise Annual Plan Outlay of Ministry of Tourism in India (2009-10 to 2014-15)
Here we can observe the shift in the trend of expenditure evident from the clear jump in the expenditure on marketing
done on various schemes. For instance, seeing the need of research which remained almost about 5 crore for three
hour apart from launching new schemes old scheme has consecutive financial year but see a huge increase in the year
been modified. The expenditure increased about 5 fold in 2012-13 to 20 crore which later increased to 30 crore. Once
just last 5 years from 5 crore in 2009-10 to 40 crore in 2013- the potential of tourism in India is explored, government is
14. While the expenditure on Central Sector Schemes has launching new schemes every year, like the tourism circuits
increased on the other hand the expenditure on Centrally and National Mission for Beautifying Pilgrimages in year
Sponsored Schemes shows a decline trend of expenditure. It 2014-15 and then PRASAD in 2015-16. Overall the
clearly indicates a more decentralized and more agencies expenditure on all the schemes in India regarding tourism
coming up for promotion of various tourism schemes. An Development have increased from 1000 crore in 2009-10 to
immense need of market research has been felt that is 1882 crore in 2014-15, i.e. Almost twice in half a decade.
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Volume 10 Issue 5, November 2017
Conclusion References
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Endnotes:
the transport facilities such as Uber, Ola has helped in
enhancing a comfortable and secure mobility of people, or 1. State Tourism Slogan of Arunachal Pradesh.
the online hotel services aggregator say trivago which
2. State Tourism Slogan of Rajasthan.
provides best hotels at cheapest price etc, and the easy of
roaming on their own has increased which further 3. State Tourism Slogan of Jammu and Kashmir.
encourages more tourists to step out of their environment.
4. State Tourism Slogan of Kerala.
Acknowledgement
5. Annual Report 2015-16, Ministry of Tourism,
Authors wish to acknowledge with gratitude to Dr. K T Government of India.
Vigneswara Rao, Research Coordinator, Accendere
6. Incredible India portal.
Knowledge Management Services (AKMS) (P) Ltd., for his
valuable comments and suggestions in preparation of the 7. Marketing in Travel and Tourism. Available at
manuscript.
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