Outbound Leisure Travel From Pune - Its Trends and Impacts On Hotels

INSTITUTE OF HOTEL MANAGEMENT AURANGABAD
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Taj Blue Diamond, Pune
Aarthi Ramani (H-1401)
Submitted in Fulfillment of the Requirement for BA (Hons) Hotel Management
UNIVERSITY OF HUDDERSFIELD, U.K. 2008-2009
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels
DECLARATION
I declare that this project is the result of my efforts and that it conforms to university, department and course regulation regarding cheating and plagiarism. No material within this project has been used in any other submission, by the researchers, for an academic award.
Aarthi Ramani (H-1401)
Date: 8th May 2009
Ramani A. (H-1401)
II
ACKNOWLEDGMENT
I would like to take this opportunity to thank Mr. Satish Jayaram, the Principal, Institute of Hotel Management, for giving us the opportunity to learn and research on a topic that we feel strongly about.
I gratefully acknowledge the guidance, support and enthusiasm of Chef Hemant Gokhale, our guide for this module without whose patience and critique this project would not have taken shape.
I would also like to give my sincere thanks to Mrs. Deepika Godsay Atre, Director Sales and Marketing, Taj Blue Diamond, Pune for her valuable inputs on this subject.
I would like to acknowledge the roles of Mr. Nauzar Batha, Manager sales and Marketing, and Mr. Ravi Pillai, General Manager in the completion of this research.
Many thanks are due to the entire faculty and management of this institute who in their own roles have had a great contribution in our project.
I would like to show out personal appreciation to all our respondents who managed to take out their time and give us their valuable suggestion and inputs.
We would also like to thank our colleagues and seniors, who were always selfless and willing to help and support us throughout the course of this project.
Ramani A. (H-1401)
III
SYNOPSIS
This research has been conducted in Taj blue Diamond, Pune, the researcher aims at finding out what influences the decisions of various types of travellers in their decision making process. The researcher has then used these factors as a basis to making recommendations to the hotel so that they may be able to increase the outbound leisure travel from the city to other Taj hotels in the country.
The first chapter introduces the city and the property. These play a key role as most of the factors that are discussed later are specific to the city of Pune. The second chapter identifies the issue that was faced by the hotel and what the aims and objectives of the research paper are. It goes on to discuss the various problems the project could face and what impact the paper would have in later times. The third chapter goes on to discuss in detail the history behind why this topic was chosen. It talks about the problem that was faced by the hotel from which this research paper originated. The project then talks about the department with which this particular topic is related. A brief has been given about how they function, what their responsibilities are and the daily activities that take place in the hotel.
The author then gives a brief of the previous work that has been done on the topic. Since no particular research was found on this topic all related topics to travel and tourism have been collated. The next chapter tells the readers about the method that was used for the research. All the means by which information was sought and how it was analysed have been discussed. The researcher then moves onto the practical aspect of the project giving details of all the data that was gathered through various means. Analysis of this data has been given with graphs and diagrams to explain to the reader what research was done.After the in depth analysis of the data collated, the researcher gives the recommendations that can be used by the hotel to achieve the aim of the research paper. The author has then concluded the paper by bringing all the aspects of this project together.
Ramani A. (H-1401)
IV
TABLE OF CONTENTS DECLARATION....I ACKNOWLEDGEMENT.II SYNOPSIS...III TABLE OF CONTENTS...1 LIST OF TABLES ................................................................................................................ 3 LIST OF FIGURES .............................................................................................................. 4 CHAPTER 1: INTRODUCTION .......................................................................................... 5 1.1 INTRODUCTION TO PUNE ...................................................................................... 5 1.2 FACT SHEET OF PUNE............................................................................................. 5 1.3 INTRODUCTION TO PROPERTY ............................................................................ 6 1.3.1 Accommodation: ................................................................................................... 8 1.3.2 Food and Wine: ..................................................................................................... 8 1.3.3 Recreation: ............................................................................................................ 8 CHAPTER 2: NATURE OF THE ISSUE ............................................................................. 9 2.1 AIM ............................................................................................................................. 9 2.2 OBJECTIVES.............................................................................................................. 9 2.3 SCOPE OF RESEARCH ............................................................................................. 9 2.4 LIMITATIONS ......................................................................................................... 10 CHAPTER 3: ANTECEDENTS OF THE ISSUE................................................................ 11 3.1 INTRODUCTION ..................................................................................................... 11 3.2 INTRODUCTION TO SALES AND MARKETING IN HOTELS ............................ 12 3.3 THE UNWTO ........................................................................................................... 13 CHAPTER 4: OPERATIONAL FACTS AND CONSTRAINTS ........................................ 14 4.1 THE PUNE SALES AND MARKETING TEAM ...................................................... 14 4.1.1 The Unit Sales Team ........................................................................................... 14 4.1.2 Public Relations .................................................................................................. 14 4.1.3. The Commercial Sales Team .............................................................................. 14 4.2 COMPANIES AND CATEGORIES .......................................................................... 15 4.3 COMPETITION ........................................................................................................ 17 4.3.1 Le Meridian ......................................................................................................... 17
Ramani A. (H-1401)
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels 4.3.2 SunnSand .......................................................................................................... 17 4.3.3 The O Hotel......................................................................................................... 17 CHAPTER 5: LITERATURE REVIEW: ............................................................................ 18 5.1 GLOBAL TRAVEL AND TOURISM ....................................................................... 18 5.2 INDIA TRAVEL AND TOURISM ......................................................................... 18 5.2.1 Next big spenders: Indias Middle Class .............................................................. 21 5.3 PUNE TRAVEL AND TOURISM: ........................................................................ 22 5.3.1 Punes Millionaires: ............................................................................................ 22 CHAPTER 6: RESEARCH METHODOLOGY / DATA GATHERING ............................. 23 6.1 INTRODUCTION ..................................................................................................... 23 6.2 RESEARCH METHODOLOGY ............................................................................... 23 6.3 REASEARCH TOOL ................................................................................................ 23 6.4 SAMPLE SIZE .......................................................................................................... 24 CHAPTER 7: DATA GATHERING AND DATA ANALYSIS .......................................... 26 7.1 ANALYSING INTERVIEWS FROM INDIVIDUALS ............................................. 26 7.1.1 Most Popular destinations Outside India: ............................................................. 26 7.1.2 Most Popular Destinations in India ...................................................................... 27 7.1.3 Market Segmentation: ......................................................................................... 29 7.1.4 Ladies groups: ..................................................................................................... 29 7.1.5 Nature enthusiasts: .............................................................................................. 30 7.1.6 Seasonal travellers: .............................................................................................. 30 7.1.7 Package travellers: ............................................................................................... 33 7.2 ANALYSIS OF THE IT INDUSTRY: ....................................................................... 34 7.3 ANALYSIS OF POPULAR DESTINATIONS: ......................................................... 40 7.3.1 Goa: .................................................................................................................... 40 7.3.2 Chennai: .............................................................................................................. 42 CHAPTER 8: RECOMMENDATIONS .............................................................................. 47 8.1 RECOMMENDATIONS FOR THE IT INDUSTRY: ................................................ 47 8.2 RECOMMENDATIONS FOR INDIVIDUALS:........................................................ 48 CHAPTER 9: CONCLUSION ............................................................................................ 55 BIBLIOGRAPHY ............................................................................................................... 56 ANNEXURE58
Ramani A. (H-1401)
LIST OF TABLES
Table 1 Table showing the facts of Pune city ...................................................................... 5 Table 2 Table showing facts of Taj blue Diamond, Pune .................................................... 6 Table 3 Table showing preference of destinations globally ............................................... 20 Table 4 Table showing the sample size of the research ..................................................... 24 Table 5 Table showing Price of a Taj Holiday .................................................................. 28 Table 6 Table showing priced difference between summer and winter holidays ................ 33 Table 7 Table showing income of IT professionals ........................................................... 36 Table 8 Table showing amount spent on vacation and income of IT professionals ............ 38 Table 9 Table showing average age of IT professionals .................................................... 39 Table10 Table showing age and number respondent with goa as a preference ................... 40 Table 11 Table showing age and number respondents with Chennai as a preference ......... 43 Table 12 Table showing connectivity of destinations with Pune ....................................... 45
Ramani A. (H-1401)
LIST OF FIGURES
Fig. 1 Map showing the city of Pune .................................................................................. 6 Fig. 2 Map showing location of Taj Blue Diamond ............................................................ 7 Fig. 3 Picture showing Hotel Taj Blue Diamond ................................................................. 7 Fig.4 - Figure showing hierarchy in the sales department. ................................................... 15 Fig. 5 Figure showing outbound travel to the destinations ................................................ 19 Fig. 6 figure showing factors taken into consideration for destination decision making ..... 21 Fig.7 - Figure showing the flow of research methodology ................................................... 25 Fig. 8 - Figure showing the most popular destinations outside India .................................... 27 Fig. 9- Figure showing most popular destination in India .................................................... 27 Fig. 10 Figure showing the preference of customised packages ........................................ 34 Fig. 11 Figure showing the income versus expenditure on vacations of IT professionals... 38 Fig. 12 Figure showing preference of destination according to age ................................... 41 Fig.13 Figure showing the preference of Mode of Transport ............................................. 42 Fig. 14 Figure showing the preference of Chennai according to age. ................................. 43 Fig. 15 Figure showing the connectivity of Pune to other destinations .............................. 46
Ramani A. (H-1401)
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION TO PUNE
Pune, fondly known as the Queen of the Deccan has a capacity to outrun almost all industrial development in the country and one of the promising sectors of these would be the hospitality sector. The demand for 5 star hotels is increasing and the current properties need to keep their standards in order to cater to the growing need. Taj Blue Diamond is one of these hotels.
1.2 FACT SHEET OF PUNE

Name of City Country State Languages Spoken Time Zone Importance Pune India Maharashtra English, Hindi and Marathi Indian Standard Time (UTC + 5:30) Pune is the 8th largest city in India and it is also the 7th metro city of India. It is known as the culture capital of Maharashtra. Population Area Literacy Telephone Code Mayor Airport Average Temperatures Average Rainfall 5,011,277 (2008) 1,359 sq. kms. 80.73 % +91 020 Rajalakshmi Bhosale Pune International Airport at Lohegaon March to May - 35 degreesC ; November to January 15 degreesC 722 mm Table 1 Table showing the facts of Pune city
Ramani A. (H-1401)
Fig. 1 Map showing the city of Pune
1.3 INTRODUCTION TO PROPERTY

Name of property Location Address Contact Details E-mail Taj Blue Diamond Pune, India Taj Blue Diamond, 11, Koregaon Road, Pune 411001 Telephone no.: 91-20-66025555; Facsimile: 91-20-66027755 bluediamond.pune@tajhotels.com; bdresv.pune@tajhotels.com Table 2 Table showing facts of Taj blue Diamond, Pune
Ramani A. (H-1401)
Fig. 2 Map showing location of Taj Blue Diamond Description: Taj Blue Diamond offers banqueting facilities, business centre services, a swimming pool, a fitness centre, 24 hour In-room dining and Coffee Shop along with a Speciality restaurant. Accessibility: Taj Blue Diamond is approximately 7 kms. away from Pune International Airport, 3 kms. away from the Railway Station and 5 kms. away from the Bus Stand.
Fig. 3 Picture showing Hotel Taj Blue Diamond
Ramani A. (H-1401)
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels 1.3.1 Accommodation: Taj Blue Diamond is a property with 110 recently renovated and elegantly appointed rooms and suites. 1.3.2 Food and Wine: The Taj Blue Diamond offers the city three of the best restaurants there are. The Coffee Shop is a 24 hour outlet that serves Italian food, along with some Continental and Indian dishes. It is famous for its morning breakfast. Whispering Bamboo on the other hand serves Oriental and on special request some Thai dishes. Mystic Masala is the Indian Speciality restaurant with a live music performance on select days. Last but not the least is Casabella, the Anglo-Saxon bar offering a variety of cocktails and after dinner cognac and cigars. The In-Room Dining serves multi-cuisine round the clock at the guest rooms. The Residency Lounge set up on the fourth floor has now been converted into a room. 1.3.3 Recreation: The hotel has a swimming pool, a business centre, a fitness centre and a unisex beauty salon. The discotheque called Polaris is now being used as a banquet hall. There also is a gift shop in the hotel for guests who would like to take souvenirs back.
Ramani A. (H-1401)
CHAPTER 2: NATURE OF THE ISSUE

In this chapter the author talks about the aims and objectives of the research project. It helps summarize everything that needs to be achieved in the project, what its limitations and scope is.
2.1 AIM
The project aims at increasing outbound leisure tourism from the Pune sales team to various other destinations with Taj properties. Thus, it aims at identifying that market in Pune which can afford to take a holiday in a Taj property but does not for various reasons. It tries to find out what can be done to bring this market of Pune to spend that money on a Taj Holiday.
2.2 OBJECTIVES
To find out what the existing leisure segment in India is what their demands are and the existing hospitality resources that are fulfilling their needs. To segregate the travel outflow depending on the type of traveller, his income, his occupations, age, marital structure etc. in order to find a common base over which recommendations for each group can be made. To highlight the interrelation of the factors affecting leisure travel and the hospitality industry. To suggest an action plan for the hotel so they can increase and channelize this outbound travel to their own hotels in different cities. To target the IT industry in Pune while establishing their needs, wants and recommendations for them.
2.3 SCOPE OF RESEARCH

The project will assist the hotel, to understand the trends of the business contributed by the leisure sector. Factors identified in the project, which bring about changes in the demands of the leisure sector, can be used as a road ahead to strategize capture of the business. Successful application of suggested solutions to increase travel may result in sufficient outflow of travellers to various hotels across the globe.
Ramani A. (H-1401)
2.4 LIMITATIONS
Some primary sources may prove uncooperative or may not give accurate inputs which could affect the inference. The sample size examined was very specific as demanded by the hotel and thus some arenas for business have not been explored. Due to the curtailed experience of the researcher the recommendations included in the project may or may not be applied at the property Note: The project was to be made NOT taking into consideration the current market recession and economic state as this is a temporary phase and experts predict the situation will pass eventually.
Ramani A. (H-1401)
10
CHAPTER 3: ANTECEDENTS OF THE ISSUE

By the onset of the millennium the economy was commanding a shift from accounting driven corporate cultures to sales driven sales cultures. The objective of any sales and marketing team is to capture as much of the market as they can. Hotel sales and marketing teams sell a room or many rooms by offering good quality and good rates to their customers.
3.1 INTRODUCTION
Travel is the change in location of people from one location to another for various reasons recreation and business being the most common. Travel may be local, regional, national or international. The word originates from the word travailen. A person who travels is called a traveller.
Leisure travel originated with the Industrial Revolution in the United Kingdom. UK was the first country to promote leisure time to the new middle class i.e. the owners of production houses, the factory owners, and the traders. Cox & Kings was the first official travel company formed in 1758. The origin of leisure travel from Britain is prominently seen in the names of many places like in Nice, France where one of the first holiday resorts is to this day known as Promenade des Anglais. This happened due to the dominance of English customers. Leisure travel is seen a lot to tropical countries such as Cuba, the Dominican Republic, Thailand, etc.
Ramani A. (H-1401)
11
3.2 INTRODUCTION TO SALES AND MARKETING IN HOTELS

During the 1940s only large hotel properties had restaurants, bars or swimming pools and they were primarily seasonal and occupied by the wealthy. However, with the onset of the next decade the scenario changed: There was population growth The life expectancy of the people grew Their income grew They had more leisure time The highway connectivity increased New residential neighbourhoods called suburbs was established. People travelled by flights more often New facilities for increased number of conventions and meetings took place.
Thus, to meet the demands o travellers, many new hotels and hotel chains were developed. Some of these pioneers were Holiday Inns, Ramada Inns, Howard Johnsons, and Travelodge. By the 1980s competition among hotels became fierce, and a couple of ads or sales persons dint do the job. Marketing is the study and management of the exchange process between the seller and the buyer. While marketing includes sales, it also includes a number other elements like research, action strategies, advertising, publicity, sales promotions, as well as means to monitor the effectiveness of the marketing programme. Sales on the other hand, consists of direct efforts to sell a product by direct personal contact, telephone and mailings. The selling process has morphed considerably by new marketing concepts that focuses on what the buyers want rather than what the product is.
Ramani A. (H-1401)
12
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Current trends affecting hospitality industry include: Globalization Consolidation Product segmentation Expansion of legalized gambling Distribution methods Computers Media-planning Environmental awareness Guest preferences Relationship marketing
3.3 THE UNWTO

The United Nations World Tourism Organization (UNWTO) is a United Nations agency dealing with tourism. It is a significant global body headquartered in Madrid, Spain. The UNWTO also represents public sector tourism bodies over the world, collates information and statistics from them to compare flow and growth of tourism worldwide.
Ramani A. (H-1401)
13
CHAPTER 4: OPERATIONAL FACTS AND CONSTRAINTS

4.1 THE PUNE SALES AND MARKETING TEAM
In Taj Blue Diamond, there were 3 subsections in the Sales and Marketing department Unit sales Public relations (marketing) Commercial sales
4.1.1 The Unit Sales Team The unit sales on the other hand is the sales department for the property alone i.e. Taj blue diamond. It looks after sales, revenue management as well as reservations in the hotel. 4.1.2 Public Relations Public relations take care of the marketing of the property. It advertises for in-house functions (new years parties, Christmas dinners etc.), food festivals in restaurants and special room rates for the property alone. 4.1.3. The Commercial Sales Team The commercial sales team in Pune is one of the eight commercial sales departments all over India. They deal with bringing in business from the city of Pune to all the properties under Taj. In the sales department the hierarchy is as follows:
Ramani A. (H-1401)
14
Commercial Sales Director
Commercial Sales Manager
Sales Executive
Sales Executive
Sales Executive
Fig.4 - Figure showing hierarchy in the sales department.
4.2 COMPANIES AND CATEGORIES

These sales executive make sales calls to various companies. They visit them and keep the booker from the company informed of the latest rates all over Taj, their offers and they with the help of revenue managers all over Taj set special corporate rates for each company and property. This rate depends on the number of room night s they will give Taj. More the room night, better is the rate! Each company is called an account and is handled by a sales executive. The accounts are divided into 4 categories: A Category B Category C Category National Accounts
Ramani A. (H-1401)
15
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels A Category accounts give the maximum number of rooms and therefore they generally have the lowest r ate or the most inclusions in their room plan. These categories are given to guide the sales executives as well. An A category account is considered very important and they are generally given a preference when room allotment is to be done. Also, the sales executives have to visit these companies more often to maintain good relations as well as to find about about their room, banquet requirement etc. a sales executive is required to meet with an A category company about 2 times a month. They also visit B category accounts about once a month and C category accounts o nce in 2 months. There may be a D or E Category in other properties depending on the number of room nights they are willing to give. National accounts are those which are spread all over India. They are handled by all the commercial sales teams. Tata Motors is one such example. Each commercial team handles sales from that company in the city. These accounts too are of utmost importance. At the onset of the research the author was told that although the sales team from Pune was doing an outstanding job on the selling rooms for business purpose, their leisure sales were low. This is because while visiting companies it is harder to promote Taj for holidays. This is because most of the interaction was with the booker and not with the actual person who was travelling. Also, a booker represents the whole company. So by selling the brand to the booker u are actually selling it to the company. However, it is close to impossible to reach many people in a shorter time to promote leisure trips like the Taj holiday packages. Keeping the above in mind, the author was asked by the sales team to device ways in which the Pune market could be captured for other Taj holiday destinations and potential destinations.
Ramani A. (H-1401)
16
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Pune has a rapidly growing software industry, with companies like BitWise Solutions, Cognizant technology solutions, BMC software, Persistent Systems, Tata Consultancy Services, Tech Mahindra, Patni Computer Systems, Wipro and Infosys having large offices in the city. The growing Information Technology (IT) Industry in the city has led to the construction of IT parks. Some of them are the Rajiv Gandhi IT Park, Magarpatta Cybercity, MIDC Software Technology Park, etc. Although the IT Services sector remains a major driver of the economy and jobs created here, the citys, new entrepreneurial activity in allied industries is taking place rapidly.
4.3 COMPETITION
Pune being a small city has only three 5 star hotels, viz. Le Meridian, SunnSand, and Taj Blue Diamond. However, some new 4 and 3 star hotels have come up in the city giving rise to competition. 4.3.1 Le Meridian The building is a majestic Rajasthani structure. It has spacious rooms varies cuisines, hi-tech facilities in its 177 rooms including 15 suites. It is known for its comfort and well appointed, state of the art rooms. 4.3.2 SunnSand SunnSand group of hotels operates in 4 cities; Pune, Mumbai, Goa and Shirdi. It is a beautiful property with a coffee shop and speciality restaurant. 4.3.3 The O Hotel The O Hotel which is about half a km from blue diamond is its primary competition among the new hotels. It is not part of a chain and gives lucrative rates to Taj clients. Especially during the months of November and December 2009 due to poor economic conditions
Ramani A. (H-1401)
17
CHAPTER 5: LITERATURE REVIEW:

5.1 GLOBAL TRAVEL AND TOURISM
The year 2007 saw around 903 million international tourist arrivals in destinations all over the world. This amounted to a huge sum of USD 856 billion. Global travel in this year showed a 6.6% growth from 2006. The world tourism organization (UNWTO) forecasts that international tourism will continue growing at the average rate of 4% annually. They say that by the year 2020, Europe will remain the most popular destination. However, its chare in the total contribution to international tourism will drop from 60% in 1995 to 46%. Tourism products today have become one of the most traded items on the internet. This achievement can be credited to the rapid growth of e-commerce all over the world. It has been suggested that world over, there is a very strong correlation between tourism expenditure per capita and the degree to which countries playing the global context. Any projections of growth in tourism may serve as an indication of the influence that each country will exercise in the future.
5.2 INDIA TRAVEL AND TOURISM

India ranks 42nd in the world in international tourist arrival with 5 million arrivals every year. It is also ranked 50th in the Most Visited Attractions by both domestic and international tourist in 3007 for the Taj Mahal in Agra receiving around 2.4 million visitors. India, like the rest of the world is being wooed by the travel and tourism industry. It is growing at a rapid pace to becoming a very good market for tourism. A large part of this can be accredited to the increased, cheaper air connectivity. The number of airports in various cities is growing rapidly. Pune itself has had one airport for several years; but two more are in the pipeline. The functioning airport too has been opened to a few international flights. The airports in Delhi and Mumbai have been renovated making India much more accessible than what it was in the past. Infrastructure in the country is picking up a good pace.
Ramani A. (H-1401)
18
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels The huge population of 1.2 billion in India and 8% GDP growth per annum supports this growth. On the same note, their per capita incomes are increasing by around 5% annually, whereas their per capita expenditure is rising twice as fast. The incomes of the 300 million middle class people are growing as is their desire to spend on leisure activities such as holidaying. This class of people in India can be called Cash Rich, Time Poor. This indicates that they have the money to spend on vacations but do not have to time to take such vacations. This makes them expect more in terms of quality as well as quantity from their rare vacationing. Also, due to their hectic working schedules they begin to feel the need for a vacation. Thus, leisure tourism is climbing up their house hold spending priorities. Henrik Kjellberg, president, Expedia Asia Pacific said: there has been a boom in outbound tourism from India. It has a good number of tourists who travel for various reasons business, leisure and medical. India also has one of the fastest growing outbound travel markets in the world: 6.2 million international trips in the year 2004 which was 16% more than 2003. 2005 also, showed string growth with almost 7.2 million. Indias outbound travel to Asia Pacific destination in 2005 grew 20%. It has been growing at a rate of 9.8% annually since the year 2001. 2005 saw 2.9 million Indian trips to the Asia Pacific destinations. Indias market is said to be maturing with the revelation of opportunities for new market segments and niches.
Asia Europe Americas Africa Australia/ Oceania
Fig. 5 Figure showing outbound travel to the destinations
Ramani A. (H-1401)
19
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels The chart shows the percentage of outbound travel from India to various destinations. The total number of outbound travellers from India for 2005 was 7,180,000. Destination Asia Europe Americas Africa Australia/ Oceania Percentage 64 20 9 5 2
Table 3 Table showing preference of destinations globally Research has shown that some of the factors that influence Indian outbound travel are: Fluency of English among Indians Cheaper and increased connectivity to India compared to earlier times More people travelling out of India for MICE (meetings, incentives, conference and events) Bollywood marketing of destinations, Growing demand for niche travel (like honeymoons and cruises) Greater market segmentation (like women, senior citizens and young crowd)
According to estimates, about 200 million people travel outbound but within the country every year. India outbound travel monitor in it summary states the following: On an average, Indians spend nearly USD 1,789 per person per leisure trip Also, the most important factors taken into consideration when deciding the vacation destination are given below in the chart:
Ramani A. (H-1401)
20
48
62
Nature and Environment Culture and Art Safety Hygiene 50
53
Fig. 6 figure showing factors taken into consideration for destination decision making The internet too has fast become one of the most popular sources of information on estimations for 48% of those surveyed used it, just behind travel agents and tour operators. At the international level however, India had around 7 million tourists going out of the country annually but only 3 million tourists coming to India. India had only 0.25% of the world-wide marker share in tourism. 5.2.1 Next big spenders: Indias Middle Class Research shows that throughout Indias history, the vast majority of its people have lived in desperate poverty. As recent as 1985, more than 90% of Indians lived on less than a dollar a day. However, India is ready to undergo a transformation. It is said that in two decades the India will surpass Germany as the worlds 5th largest consumer market. Research from McKinsey Global Institute (MGI) shows that within a generation, the country will become a nation of upwardly middle-class households, consuming goods ranging from high-end cars to designer clothing.
Ramani A. (H-1401)
21
5.3 PUNE TRAVEL AND TOURISM:

Pune has recently emerged as one of the hottest markets for tourism. Cities like Pune have a lot of disposable income and a high per capita income of Rs. 46,000 per annum, which is almost 50% higher than the rest of the country. This was driven by the Information Technology (IT) and Bio-Technology (BT) sectors in the city. This was stated in the Pune Municipal Corporations (PMC) Environmental Status Report (ESR) for 2007 2008. Short distance holiday destinations are popular e.g. instead of USA and UK people are travelling to Dubai, Malaysia, Singapore, Mauritius and even within India. In terms of outbound travel, Pune stands at number six after Mumbai, Delhi, Bangalore, Chennai and Ahmedabad. 5.3.1 Punes Millionaires: Newspaper articles and research states that Pune now has 16,000 millionaires. Statistics collated by the Income Tax Department state that 15% of the countrys taxpayer earning over Rs. 10 lakh a year are in Pune. This number has grown by 33% from FY 2006 to FY 2007. The city thus accounts for 15% of high net worth individuals (HNI) in the country.
Ramani A. (H-1401)
22
CHAPTER 6: RESEARCH METHODOLOGY / DATA GATHERING

6.1 INTRODUCTION
The main objective of this chapter is to outline the research method used to carry out the primary research. The main objective of this chapter is to outline the research methodology used to evolve the framework for the evaluation in order to carry out the primary research. This method would establish the procedures and the methods used for the research. This chapter also deals with the concepts and the techniques used during the primary research in order to arrive at the findings of this effort and establish a framework for logical deductions towards the analysis and conclusion.
6.2 RESEARCH METHODOLOGY

Research is a process of investigation that is done on statistical data to derive certain facts. Research methodology gives an outline of the path that has been used by the researchers to reach their aim and objectives. This chapter looks at the rational for selection of the topic, the path used by the researcher for collecting the required data and analysis of the data so as to come to logical conclusions. The researcher is this case has done an analytical research project.
6.3 REASEARCH TOOL

Secondary research was first done on the topic and all the related sub-topics. After getting a fair idea of the extent of what needs to be researched, the researcher has to collect all the primary information needed. There are numerous ways of collecting data such as audits, observation, personally administered questions, checklists, etc. thus, the study can be divided into qualitative and quantitative research, depending on the type of data.
Ramani A. (H-1401)
23
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Quantitative research explains the phenomenon with numbers to obtain results; therefore the conclusions on the data can be calculated. With this type of research a large amount of information can be gathered from any research unit using systematic observations. In quantitative research, the conclusions are based on the non-calculated data, such as attitudes, values and perceptions. These types of data can be quantified too. The researcher has used both qualitative and quantitative methods for this research. According to Sekaran(1992), observation is the first stage in which one sense that certain changes are occurring, or that some new behaviours attitudes and feelings are vaguely surfacing in ones environment like say the workplace. The primary research has been done by interviewing various people in the field such as travel agents. Also, individuals were interviewed.
6.4 SAMPLE SIZE

The break down of the sample size is given below: Total Individuals Travel Agents IT Professionals 75 15 25 Table 4 Table showing the sample size of the research The research process used by the researcher is given in the flow chart below:
Ramani A. (H-1401)
24
Initial Investigation / Observation
Nature of the issue
Antecedents of the issue
Operational Facts/ Theoretical Framework
Literature review
Data Gathering and Research Methodology
Data Analysis
Comments from the Management & Academia.

Conclusion and Recommendations
Fig.7 - Figure showing the flow of research methodology
Ramani A. (H-1401)
25
CHAPTER 7: DATA GATHERING AND DATA ANALYSIS

7.1 ANALYSING INTERVIEWS FROM INDIVIDUALS
75 individuals were interviewed from all over the city. However, the target market given for the research was the earning man/woman. Thus, students and retired people were not interviewed. The sample size included people from various professions and income groups such as: Business people Doctors Architects IT professionals
7.1.1 Most Popular destinations Outside India: The researcher asked all the respondents which destination they would prefer to visit any time in the near future outside India The below pie chart gives a graphical description of their answers and the popularity of destinations Taking all our respondents answers into consideration their answers can be analysed as follows:
25
20 15 10 5 0 Singapore Malaysia Europe Thailand Australia / Mauritius NZ USA
Ramani A. (H-1401)
26
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Fig. 8 - Figure showing the most popular destinations outside India Singapore is the most popular destination outside India followed by Malaysia and Europe. This is because travel to south-east Asia is becoming easy and increasingly cheaper due to air connectivity and their tourism drives. Sometimes travelling to these countries could even be cheaper than going on a vacation in India. Taking the mentality of people into consideration, most people prefer to travel outside India rather than travelling inside. It is considered a status symbol and it is looked at as an opportunity to experience different places and cultures. 7.1.2 Most Popular Destinations in India The respondents were also asked about their preference inside India. The number of respondents who chose their favourite destinations is depicted in the graph below:
25 20 15 10 5 0 Goa Chennai Kerala Rajasthan Others
Fig. 9- Figure showing most popular destination in India
Ramani A. (H-1401)
27
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels The graph can be analysed as follows: Goa was the most popular followed by Chennai, Kerala and Rajasthan. In the case of other destinations, the most popular were, Ooty, Madurai, Himachal Pradesh, Rishikesh, etc. In order to know if this market can be channelized into the Taj, it is essential to know how much a Taj Holiday costs. The destinations taken into consideration are the ones in the places found most popular among the respondents. Also only leisure destinations and hotels were considered The figure gives an estimated amount of the total expenses for 2 nights, on a double occupancy. It includes all travel to and from the location, stay, and any overheads. It does not include any personal expenditure like shopping and gives a lower end price by train and a higher end price by air so that different market segments can be aimed at: Destination Mode Transport Goa Cochin Kumarakom Kovalam Chennai Jaipur Jodhpur of Summer Winter
Train (lower end)
Air (higher end)
Train (lower end)
Air (higher end)
19,800 20,800 24,400 23,400 26,900 19,800 14,400
29,800 36,800 53,200 52,200 40,300 32,000 34,200
31,200 29,400 31,700 31,600 28,700 32,900 25,900
41,200 45,400 63,500 63,200 42,100 47,100 45,700
Table 5 Table showing Price of a Taj Holiday
Ramani A. (H-1401)
28
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels 7.1.3 Market Segmentation: In order to get a better understanding of the wants and needs of the target market, the researcher has divided the sample into various market segments. These market segments have been made taking into consideration various factors that influence the holidaying patterns of the respondents. For the research the respondent has segmented them as follows: 7.1.4 Ladies groups: There are already some groups such as Women on Wanderlust (WOW), which arrange trips for ladies. The entire organization is run by ladies as well. They have tapped into an important market that has not really been looked at before. Around 20 ladies were interviewed. Also, the married male respondents were questioned about the preferences of their spouses. Of these most of the women found the idea of vacationing with other women such as their friends, family and co-workers fun and interesting. The women who were interviewed were found to be of two distinct types: Shopping and Sight seeing: The first type said that their prime reason for vacation was either shopping or sightseeing. Thus, they would prefer a destination which is either a metro or a good cultural hub. Adventure and Nature: The second type was found to have liked destinations which are famous for their proximity to nature. They preferred secluded locations and shopping was not a priority for them. Working women or mothers feel the need to take a holiday, however, most of these vacations cant be called real vacations because of their small children. When women travel with other women they have fewer responsibilities and they can really enjoy.
Ramani A. (H-1401)
29
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels 7.1.5 Nature enthusiasts: During the analysis the researcher found that over 70% of the respondents wanted vacations which got them closer to nature. This could include beaches, hill stations, backwaters, etc. Also, there will be many takers for such holidays if there are activities which can show them the true beauty of that place. The researcher found that there was not particular age group, profession or income group that this was restricted to. This is something that everyone would want to experience. Younger people were found to be more enthusiastic about nature and thus they were interested. In older people it was seen that they needed vacations to relax as they had more hectic schedules and thus wanted to stay away from the noise and pollution of metro cities. However, this demands that people be ready to get their hands dirty. They will be required to wear appropriate clothing. Pune being of a largely traditional nature, forward thinking residents would have to be sought out for this purpose. 7.1.6 Seasonal travellers: The months of March to May are considered the Indian holiday season. This is because of school and college holidays after annual exams. It was found that many people preferred travelling off-season. However, they may not always have the option to do so due to family constraints. Taj hotels, resorts and palaces have various packages made exclusively for each season. They have summer monsoon as well as winter packages. Summer packages have been found to be almost 30% cheaper than the winter packages. This makes them more affordable to the target market at the right time of the year. There was a definite market found amongst the respondents who didnt know about these packages. They found that these packages were actually reasonable and affordable. Thus, this market can be aimed at by the sales and marketing team. Price difference between the summer and winter packages of the most popular destinations found from the analysis are given below:
Ramani A. (H-1401)
30
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Taj Packages (2 nights double occupancy) Summer Meal '09 Credit Winter Meal '09 Credit
Location Hotel Name
Inclusive
Inclusive
B/F + 10% Disc on Taj Holiday Village 16,000 3,333 B/F + lunch + dinner 26,655 3,000 laundry and Tele + Half day excursion + Adventure Activity B/F + 10% disc on 14,666 3,333 B/F + lunch + dinner 25,925 3,000 laundry, telephone + airport Transfer +
Goa
Fort Aguada Beach Resort
Adventure activity B/F + lunch + dinner B/F + lunch B/F + 10% disc on laundry, telephone B/F 22,650 3,000 + half day
Taj Exotica 17,000 4,000
29,285 3,000
Taj Malabar, Cochin
14,000
or dinner + 20 % disc on
excursion
+Sunset
cruise + 10% Disc on Laundry and telephone B/F + Backwater
food and bev
Taj Kerala
Garden 14,000
B/F + lunch or dinner + 20 % disc on
cruise + 10% disc On 24,395 3,000 Laundry, Telecom + Half day excursion/ speed boat trip B/F+ 24,275 3,000 excursion Half + day Kids
Retreat, Kumarakom
food and bev
Taj
Green
B/F + lunch or dinner + 20 % disc on
Cove Resort, 13,000 Kovalam
activities + 10% disc on laundry, telephone B/F +half + day kids
food and bev B/F + lunch 21,500
Chennai
Fisherman's cove
or dinner + 20 23,330 3,000 excursion % disc on
activity + 10% disc on
Ramani A. (H-1401)
31
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels food and bev B/F + lunch 12,000 or dinner + 20 % disc on 27,155 3,000 laundry and telephone B/F +half + day kids
Jaimahal Palace, Jaipur
excursion
activity + 10% disc on laundry, telephone ,spa B/F + Transfers + 1 dinner + wine + half day tour + comp spa
food and bev
Rambaugh Palace, Jaipur 52,500 75,000
wet areas + 15% disc on spa treatments + 10% disc on f&b,
telephone, laundry + sunset tour + heritage walk Rajasthan Taj Harimahal, 9,000 Jodhpur B/F + lunch or dinner + 20 % disc on B/F +half + day kids
excursion
20,535 3,000 activity + 10% disc on laundry, telephone, spa + cultural net. B/F + Transfers + 1 dinner + wine + half
food and bev
Umaid Bhawan Palace, Jodhpur 52,500 75,000
day tour + comp spa wet areas + 15% disc on spa treatments + 10% disc on f&b,
telephone, laundry + museum tour +
heritage walk Best of Taj Malabar, 26000 Kerala Cochin, Taj B/F + Lunch 27400 or dinner + B/F + Lunch or dinner + 20% disc on food
Ramani A. (H-1401)
32
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Garden Retreat, Kumarakom, Taj Green 20% disc on food and bev and bev
Cove Resort, Kovalam Table 6 Table showing priced difference between summer and winter holidays 7.1.7 Package travellers: Tours are fixed packages made for a certain destination. Usually many people individually buy these tour packages abut travel together. They have fixed itineraries for a fixed number of days. They may include sight seeing, entertainment activities, etc. These packages used to be very lucrative earlier as guests had to make a one-time down payment and not worry about arranging for transport, entertainment, activities, etc. However, in recent times, people found that these tours out many restrictions on their holidays. They may have to get up at a certain time to have breakfast and then catch a bus for say a tour of the city. The respondents in this research said that their vacations were meant for them to relax and not rush on a tour with people they did not know. The researcher found this more prevalent among working people with families. It was found that these people wanted flexibility in their vacation plans and on the other hand they also wanted their vacations arranged according to what they are interested in so they can make a one time down payment. The researcher also found in the analysis that a large number of the respondents preferred dealing directly with the hotel rather than going through a travel agent. They seemed to trust the hotel more. They also found the need to pay a commission unnecessary.
Ramani A. (H-1401)
33
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Customised packages: A customised package is a concept which allows both flexibility as well as pre-planning. It is a package which is fully paid for at the beginning. It includes the cost for the room/s, surface transport at the destination, meal credit or meals, activities, entertainment, tours, etc. depending on what the guest prefers to do during his trip. It does not however include personal expenses such as shopping etc. The researcher found that among the respondents found the idea of customised packages from the hotels itself interesting. A pie chart showing the percentage of these individuals is given below.
Customized packages from hotels Packages / tours No packages Depends on offer No planning
Fig. 10 Figure showing the preference of customised packages This clientele can be aimed at with such customized packages.
7.2 ANALYSIS OF THE IT INDUSTRY:

The IT industry has grown from Rs. 250 crores to Rs. 6,500 crores in just 8 years. The author has made a separate analysis on IT professionals form the city. This is because the IT industry is coming up at a rapid pace.
Ramani A. (H-1401)
34
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels On researching the author observed that although they are just working professionals their lifestyles are different. This lifestyle depends on various factors such as: Income Age Marital Status Means of Transport, etc.
Most of the IT companies in Pune have the same hierarchy structure. There are 4 distinct layers and a number of sub-layers. Although their designations vary from company to company they can be broadly classified as: Senior Management Middle Management Team Management and Technical Programmers
The senior management comprises of Vice-presidents and directors of the company. Their primary function would be that of managing an entire strategic business unit (SBU). This could mean they handle all companies to whom they give IT services such as finance which would include banking and financial institutions such as HDFC, ICICI, etc. The middle management has the Assistant Vice-presidents, senior managers, etc. their jurisdiction is of a smaller nature. They handle strategic accounts or companies. Therefore the assistant vice-president working under the vice-president of finance would probably be handling one the afore mentioned companies. Team management consist of managers, project managers, etc. They function in handling the development of particular software for an account.
Ramani A. (H-1401)
35
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Technical programmers are software engineers, senior software engineers, etc. They are the people who actually write the necessary softwares. Although they are not of the highest ranking they are the most integral part of the organization. The researcher interviewed IT professionals at various levels. Their responses, basic salary structure and the average cost of a Taj holiday was used to make the recommendations. Their salary structure was found out from the respondents and is given in the table below: Management level Senior Management (VPs, CEOs, Directors, etc) Middle Management (Asst. VPs, Senior Managers etc) Team Management (Managers, etc.) Technical Workers (Software Engineers, etc.) Anything up to 1.25 lakh Anything up to Rs. 15 lakh Project Managers, Rs. 1 lakh Rs. 2.5 lakh Rs. 12 lakh Rs 30 lakh Rs. 2.5 lakh Rs. 3.5 lakh Rs. 30 lakh Rs. 42 lakh Pay Package (Monthly) Rs. 3.5 lakh and above Annually Rs. 42 lakh and above
Table 7 Table showing income of IT professionals However, there were may other factors that play an important role in their holiday destination and hotel decision making: The respondents who were interviewed said that although they were placed well, they dint have a lifestyle which included exotic travel. They preferred to save their money, or spend on investments like cars, bikes, real estate, gold, silver, etc. some even said they saved for their hobbies which were expensive such as trekking to the Himalayas, etc.
Ramani A. (H-1401)
36
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Almost 65 to 70% of the younger IT professionals in Pune hail from other parts of India such as Bihar, Andhra Pradesh, Uttar Pradesh, etc. Thus, for them vacationing would primarily mean going to their hometowns and spending time with their families. Young or new professionals in any industry tend to be work oriented as they want to make their place in the organization; or climb the corporate ladder. Similarly, in the IT industry it was observed by the author that most professionals considered vacationing as a priority after the age of 35 when they are well settled with families and have made a place for themselves in the company. The professionals said that their income packages were good but after taxes and other deductions their take home salaries were considerably lesser. The respondents also said that although the technical programmers are at the lower end of the organization hierarchy, they are not always paid the least. Some of them may not be the best managers but are good programmers. Thus, the better they get the more they are paid but they may not be given promotions. From the above mentioned facts about most popular destinations, income of IT professionals and average Taj holiday costs the researcher completed the analysis: The minimum one must have to spend on a 2 night Taj holiday for 2 people is between Rs. 15,000 and Rs. 25,000 depending on the location. This can be anything up to - 17% of a Technical workers monthly package. - 14% of a Team Managers monthly package. - 7% of a Middle Managers monthly package. - 5% of a Senior Managers monthly package.
Ramani A. (H-1401)
37
3,50,000 3,00,000 2,50,000 2,00,000 1,50,000 1,00,000 50,000 0 Technical Workers Team Middle Senior Management Management Management
Fig. 11 Figure showing the income versus expenditure on vacations of IT professionals The above bar graph gives a comparison of how much the IT professionals said they would spend on a vacation as opposed to how much they earn. Amt. Spent on vacations Technical Programmers Team Management Middle Management Senior Management 10,000 20,000 40,000 45000 and above Income 1,25,000 1,75,000 3,00,000 3,50,000
Table 8 Table showing amount spent on vacation and income of IT professionals From the above the analysis was done as follows: Most middle management and senior management can afford a Taj vacation. Also, some of the Team Management can afford to spend on Taj As mentioned before Technical Programmers could earn as much as team management.
Ramani A. (H-1401)
38
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels The main reasons why these managers said they did not go to 5 star hotels were Impression of it being very expensive Patrons of other 2/3/4 star hotels Children and other family constraints Average Age Senior Management Middle Management Team Management Technical Programmers 45 and above 35 45 27 35 22 27
Table 9 Table showing average age of IT professionals The average age of an IT employee is as above. This could mean the following They are bachelors at the technical management level They are married at the team management level They may have small children at the middle management level They may have grown children at the senior management level
It was also notices that most IT professionals marry within the same industry. Their spouses therefore would also have a similar hierarchy structures. There would then be two stable incomes and they are a good market segment to target is they dont have children and other such responsibilities and expenditures. The recommendations made are done taking all the above into consideration.
Ramani A. (H-1401)
39
7.3 ANALYSIS OF POPULAR DESTINATIONS:

7.3.1 Goa: Goa has always been a popular destination. Goa is a western state of India. It lies below the State of Maharashtra. It has been known mostly for its tourism. Goa is one of the port cities of India. Its capital is the Panjim. Taj has 3propeties in Goa; Taj Exotica south Goa, Holiday Village north Goa and Fort Aguada Beach Resort-north Goa. In goa, this is the one industry which contributes a majority to the income of the state. Goa has always been marketed in such a way. A Taj holiday in Goa would cost around Rs. 20,000 for 2 nights on double occupancy. This is a considerably affordable amount. There are many places of interest all over Goa, which appeal to all age groups. Some of them are, beaches, churches, forts, water/ adventure sports, local flea markets, discotheques, shacks, etc. people from all age groups can have something to do. This makes Goa a universal destination. Age 20 - 27 27 - 35 35- 50 50 and above No. of respondents 9 6 6 1
Table10 Table showing age and number respondent with goa as a preference
Ramani A. (H-1401)
40
10 8 6
4
2 0 20 - 27 27 - 35 35- 50 50 and above
Fig. 12 Figure showing preference of destination according to age The above table and graph show the number of respondents from various age groups who chose Goa as their preferred destination Recently a flight one way from goa by Kingfisher Airlines was cancelled. However, the absence of air connectivity has not affected the popularity of the destination among the Pune public. On the other hand, Goa is a place which is considerably close to Pune and people can even chose to drive down. Goa is kms close to Pune. This makes it accessible to working professionals owning their
own cars. Also, not much preparation will be required for this type of an on-the-spot vacation such as train tickets etc. Families who are well-settled can take advantage of the cheap summer rates and drive down to Goa for 3 to 4 nights. It can also be promoted for weekend vacations. Goa is also an any season destination. 7.3.1.1 Analysis of Mode of Transport: In order to find out what made Pune people holiday in goa, the researcher did an analysis on the mode of transport preferred by the people and what factors affected this choice.
Ramani A. (H-1401)
41
25 20 15 10 5 0 20 - 27 27 - 35 35 - 50 50 and above Car Railway Airway Others
Fig.13 Figure showing the preference of Mode of Transport The above graph shows the preference of mode of travel among the respondents according to their age. The graph can be explained in the following way: Road and Rail Travel are high in the 35 to50 age group as they may have children and air travel would be expensive. Also, road ravel is high in the 27 to 35 age group as they are working professionals who may have their own car as opposed to the 20 to 27 age group. People from the age group of 50 and above find train travel convenient as they are from a different generation. They are used to such transport and find more safety in train travel. 7.3.2 Chennai: From the earlier graph it can be seen that, Chennai was the second most popular destination among the respondents. Chennai is the capital of the state of Tamil Nadu. Chennai is also one of the port cities of India. It is also one of the 4 metros of India and it is also an industrial and commercial hub in the state. The reasearcher chose the property of Taj fishermans Cove for this research as that is a convenient Leisure Hotel.
Ramani A. (H-1401)
42
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels A Taj Holiday at Chennai would cost around Rs. 25,000 for a room for 2 nights on double occupancy. The researcher used the data collected about the things people from Pune wanted the most from their vacations. The three things that people wanted the most were: A spa or Swimming Pool: The respondents said this one of their favourite things to do while on a vacation. Beaches: People wanted a beach not only because they can have some entertainment but also because it contributes to the beauty of the destination. Something away from a metro city and its crowd: The respondents said their primary aim behind going for a vacation was to relax and spend quality time with their family or friends. Thus, they did not want to have the pollution and noise of a city. These are the Unique Selling Points (USPs) of Taj Fishermans Cove. This should be used to channelize the market into this hotel. 20 - 27 27 - 35 35- 50 50 and above 5 2 6 4
Table 11 Table showing age and number respondents with Chennai as a preference
6 5 4 3 2 1 0
20 - 27 27 - 35 35- 50 50 and above
Fig. 14 Figure showing the preference of Chennai according to age.
Ramani A. (H-1401)
43
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels The table and graph show the number of respondents from various age groups who chose Chennai as their preferred destination There are many places of interest around this property such as Mahabalipuram, Crocodile Bank, Pondicherry, etc. thus, along with relaxation people can have something constructive to do with their time if they wish too. Many business men travel to Chennai as it is an industrial and cultural hub, but they rarely get to see the city and its outskirts. They would not get a chance to experience the city as a holiday destination. They are that segment of the market that would prefer to just relax on the beach or get a massage as they have hectic schedules. The researcher noticed that the hotel has an element of romance. This point can be used while promoting the destination as a honey moon destination.
Ramani A. (H-1401)
44
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels 7.3.2.1 Analysis of Connectivity of Destinations with Pune: Chennai is the most well connected destination. Thus the researcher has reviewed the train and flight schedules in and out of Pune. Connectivity Location Mode of Transport Goa Pune To Trains 1 daily 1 Monday, 1 daily Flights From .. to Pune Trains 1 daily Flights
Cochin
1 Monday, 1 daily
Kumarakom (Trivandrum) Kovalam (Trivandrum)
1 daily
1 daily
1 daily
1 daily
Chennai
3 daily
5 daily, 1 Sunday to Friday
5 3 daily
daily,
1 to
Sunday Friday
Jaipur Jodhpur 1 Monday
1 daily
Table 12 Table showing connectivity of destinations with Pune The above table shows the connectivity of the various destinations to and from Pune. It gives a detail on the number of flights and trains into and out of Pune.
Ramani A. (H-1401)
45
70 60 50 40 30 20 10 0 Chennai Cochin Goa Kumarakom / kovalam
Fig. 15 Figure showing the connectivity of Pune to other destinations The above graph gives a comparison of the destinations and their connectivity with Pune. From the above table and graph it can be seen that Chennai is the best connected destination to Pune. This has been takes into consideration by the researcher when the recommendations have been made.
Ramani A. (H-1401)
46
CHAPTER 8: RECOMMENDATIONS
Taking all the above analysis of the interviews the researcher has made the following recommendations.
8.1 RECOMMENDATIONS FOR THE IT INDUSTRY:

AWARENESS: The researcher found that most of the IT professionals were
unaware of the actual affordability of a holiday in Taj. Thus, awareness seems to be the first move to target this market. Posters: Although this is already being done posters should be made specific to the IT industry with the latest offers for them. They can be placed at their place of work such as the IT parks so the repetitive viewing would make them take notice. Road-shows: A road show is a programme comprising of a series of marketing events that companies organize at multiple locations to generate interest regarding a subject that they want to promote. It could be about new products/ services targeted at customers, new investment offerings (IPO etc.) targeted at investors, new social initiatives targeted at the community and so on. Thus, road shows that portray the Taj properties can be organized. Special offers made for the various management levels can be presented to them. Spot booking, early bird and group discounts can be offered. E-mailers: Being the age of Information Technology and e-commerce, e-mailers can be sent to these IT professionals. Offers targeting specific management groups should be sent to them OFFERS: A lot has been spoken regarding offers that can be made to the IT professionals. Thus, a list of offers that can be made to these specific management groups has been made keeping in mind their work, age, income, etc. For Technical Management: A Taj Holiday may be out of the budget for these people, however, there is still a small market can be targeted. As these professionals are mostly unmarried, group packages for say 4 and more people can be made at locations such as Goa. Also, south Indian locations such as Ooty, Madurai, Ernakulam, etc. can be promoted as they were a trend amongst these individuals.
Ramani A. (H-1401) 47
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels For Team Management: These professionals are generally seen to be of marriageable age. Also, they are of the type to spend on special occasions like a birthday or anniversary. Honeymoon offers should be targeted at these people eg. Kerala and Goa hotels. For Middle Management: Keeping in mind the fact that these professionals may have small children, offers to locations with childrens activities should be made. For Senior Management: Being at the top of the corporate ladder, these professionals have the capacity to pay. The Taj wilderness lodges and higher end Rajasthan hotels can be promoted to them. Also, they may have older children and may not want to spend on 2 rooms as children over the age of 12 are to be paid for fully. Offers should be tailor-made for a whole family; they can include package rates for 2nrooms with meal credit, activities and entertainment, spa treatments, etc. These tactics make the target market feel special and important. This plays an important role a person to spend on your product or service; it is key in deciding their outlook towards your organization.
8.2 RECOMMENDATIONS FOR INDIVIDUALS:

Recommendations regarding Goa:
Keeping in mind the Indian holiday season and the affordability of Goa, the researcher has made the following recommendations: Offering special summer offers for families to Goa. They can include meal credit, activities, entertainment, spa treatments, etc. Offers for all male groups which can have inclusions such as happy hours at the bar, golf activities, adventure and water sports, etc. Organizing beach trails, trips to casinos, etc are some of the activities that are not being done as of now.
Ramani A. (H-1401)
48
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Recommendations regarding Chennai:
Keeping the USPs of Taj fishermans Cove in mind the researcher has made the following recommendations: This destinations should be targeted at senior citizen or older couples aged 50 and above. Packages that can be offered to these people can be of three types: One with inclusion for sight seeing with guided day tours, etc. One with inclusions for relaxing with spa treatments, massages, etc. One having both of the above. Recommendations for ladies groups: As discussed earlier working women with children have many time constraints. Short affordable weekend getaway packages can be arranged for them. They would also, prefer to relax so come destinations that can be promoted to them are Goa, Aurangabad, etc. Women who do not work on the other hand tend to have more free time. Longer vacations to destinations with shopping and sightseeing such as Rajasthan can be arranged for them Women in Pune are becoming more and more forward thinking nowadays. Packages with water sports and other such activities can be promoted to a group of adventure loving women. There are also many ladies who are interested in up market hobbies like wine and cheese tasting. Trips to Sula Vineyards at Nashik for an up class food and wine vacation during the harvesting or crushing seasons can be organized.
Ramani A. (H-1401)
49
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Although these are lucrative markets and there are new ideas to attract them it is hard to reach such a market; it is hard to come contact these ladies. The sales executives rarely come in contact with the guest who is actually travelling. During their sales calls they tend to meet with the booker of the company. The booker is a person who generally takes care of all the hotel and travel bookings for the company. This is usually the secretary. Thus, the researcher has listed methods of reaching the various market segments mentioned in the project. These ladies can be reached by the following methods: Conducting small road shows at shopping complexes, malls and arcades. Collaborating with companies who may send their female employees for training, team building or leadership trips. Targeting wives of IT professionals while marketing your product to them. Having only female bookers/management come for small events showcasing this concept, or book release events, etc. Having tie-ups with beauty salons, so that you can advertise using posters, standees etc. Recommendations for nature enthusiasts:
These enthusiasts as mentioned before are of a forward thinking nature. Excitement and adventure are two things that have to be key while targeting this market segment. The packages that are made for them can be made including various nature trails, night trails, safaris, bird-watching, star-gazing, beach trails, kayaking, etc. As these people have comfortable spending budgets, spa treatments can be offered to pamper them. For lower budget options company sponsored vacations can be organized in these places. They may be for completion of projects, or team and leadership building activities. The Taj Wilderness Lodges such as the one in Bandhavgarh can be promoted to this market. other hotels which can be pushed are those in Goa and Kerala.
Ramani A. (H-1401)
50
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Some ways to reach this market are: Presenting these properties to top management in companies during road shows. Having tie-ups with nature travel groups. There are many such groups like Pugmarks, Insearch and Adventure 1. They already deal with ex-pats and company corporate. Thus, they can handle all the activities and events which need to be organized for the guests. Recommendations for seasonal travellers:
The researcher found that these are the travellers who travel according to seasons. They normally take one long vacation for around 10 to 15 days during summer and another vacation for 4 to 5 days during winter. They may also take one or two weekend vacations to near by locations like Mahabaleshwar or Panchgani. Recommendations fro them are as follows: Promoting these vacations to families. They are usually very organized and have a fixed period during the year when they can travel. Attractive discounts can be given to group or early bird bookings make the package more lucrative. Also, making a complete package for a family of 4 seems viable. Many people tend to meet their extended families atleast once a year. They then become a group of say 10 or may be more. Customised packages for these joint families are again good for business. Some ways to reach this market are: Putting up posters, hoardings, bill boards etc. at shopping complexes, arcades, malls and multiplexes. These places are doing very good business in the city. Advertising at family clubs such as Poona Club, Turf Club, Boat Club, etc.
Ramani A. (H-1401)
51
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Package Travellers:
A customised package is one where a room is sold with various inclusions. Each package is custom made to suit the preference of the guest. Although this is a tedious process it allows the guests to make a one time payment and the guest can make an easy decision based on the package amount. In this case, the recommendations made by the researcher are on inclusions for these packages. They are: Airport Transfers, Meals/ meal credit, Guided tours, Spa treatments, Hired vehicles, Water and adventure sports, Nature trails, treks, Visits to markets, Performances by local artists, Day trips to hill stations, religious places close to the vacation destination.
The researcher also found many other common factors among the respondents by which the following recommendations were made: Cultural Packages:
India is a country with varied cultures and traditions. Every part of India has a festival to celebrate joy and happiness. Due to this diversity many Indians themselves have been unable to experience all these festivals to the fullest. Thus, packages specific to these cities and their traditions can be organized. These are already being done in other countries such as Germany for their national Oktoberfest.
Ramani A. (H-1401)
52
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Onam in Kerala: The festival takes place between the months of August and September. It is a ten day harvesting festival. The inclusions can be : Authentic food through the trip Trips to watch the local snake boat races Having the local Kaikottikalli dancers perform Watching games of bravado Watching the elephant procession, etc. Pushkar in Rajasthan: it is a very famous festival which takes place in all the big cities of Rajasthan. Inclusions can be Trips to local places like Ajmer and Pushkar Watching the cattle fair Trips to the bazaar Having auctions, sports and music in the hotels. The Goan Carnival: This takes place during the month of February before Easter day. The inclusions can be: Trips to watch the plays, songs and dance Trips to watch the parade Having local feasts for the guests at the hotel, etc.
Ramani A. (H-1401)
53
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Other recommendations that have been made by the researcher are: Gift packages: Taj holidays can be promoted as gifts, e.g. for children who would like to gift them to their parents for anniversaries of birthdays; or to parents who wish to gift their children holidays for honeymoons, etc. International school children and their parents: Students from international schools are another market that can be targeted for leisure travel. Student groups from schools in and around the city like Sharad Pawar International School, MercedesBenz School and Symbiosis International School can be taken on tours to various parts of the country. Many of them who are not from India would want to explore the country. Their parents can also be targeted as they would come to meet their children occasionally. Retired People and Senior Citizens: Although they have lesser expendable money, they have plenty of time on their hands. Most of them would want to make the most of their free time and reduced responsibilities. They may want to travel and explore places they had not in their younger days. Thus, they too are a likely target market.
Ramani A. (H-1401)
54
CHAPTER 9: CONCLUSION
The paper gives a brief on the global tourism scenario over the past few years. It also highlights the role that India has played on a global stage. Pune being the 8 th largest city in India plays a role almost equivalent to many other cities in the country. The factors outlined by the researcher in the project such as per capita income, per capita expenditure, spending priorities, preference of mode of transport, in a nut shell describes the mindset and mentality of a resident of Pune. Also, other factors such as connectivity with other destinations, area, location, industrial development can tell a lot about the city on a whole. All of the above has been used by the researcher while giving recommendations. These recommendations have to not only be feasible but also within the control of the hotel. As bad economic conditions cannot be prevented by any one man, the researcher has ruled out the role it played in the decision making process of the individuals. This is assuming that the recession is a temporary phase and it will pass soon. This research paper has been done with the aim of increasing outbound sales from a particular property in a particular city. The researcher has been successful in suggesting techniques by which this can be achieved. Sales and marketing plays a key role in the success of any hotel operations. They can make an impression on a client or potential client before they even see the property. Leisure travel is something that depends a lot on the persons budget. However, clients can be convinced into spending a little more than they planned for quality and standards that are worth it.this is what the sales team has to do. However, their lakh of contact with the families could be a deterrent in this aspect. Thus, reaching this market is very important. However, at the end of the day, it is the communication skills of the sales and marketing teams that can make or break a hotel!
Ramani A. (H-1401)
55
BIBLIOGRAPHY
Websites Used: http://www.hotel-online.com/Trends/CarolVerret/GMRole_April2002.html http://en.wikipedia.org/wiki/Travel http://en.wikipedia.org/wiki/Leisure_travel#Leisure_travel http://wiki.answers.com/Q/What_is_a_roadshow http://en.wikipedia.org/wiki/World_Tourism_Organization http://www.financialexpress.com/news/outbound-tourism-will-be-our-initialfocus/289999/ http://timesofindia.indiatimes.com/articleshow/13400842.cms http://www.tourismroi.com/Content_Attachments/27670/File_633513750035785076. pdf http://www.unwto.org/statistics/index.htm http://www.globalinsight.com/gcpath/TourismMarketStrategyModels.pdf http://bombayhighcourt.nic.in/site/districtcourts/stations/pune.pdf http://www.tajhotels.com/TajHolidays/index.aspx http://www.tajoffers.com/monsoon08/index.html http://www.indiastat.com/india/ShowData.asp?secid=9524&ptid=239&level=3 http://www.wow.com http://www.maharashtra.gov.in/english/ecoSurvey/ecoSurvey1/esm_e/cha05e.pdf http://www.zibb.com/article/4462383/Research+and+Markets+An+India+Outbound+ Travel+Monitor+for+2008+Identify+Growth+Opportunities+Develop+Effective+Mar keting+Strategies+and+Understand+New+Trends http://www.financialexpress.com/old/latest_full_story.php?content_id=165758
Ramani A. (H-1401)
56
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels http://www.bharatbook.com/general/Travel&Leisure.asp http://www.india-reports.com/Tourism-wk/index.aspx http://www.travelwebdir.com/travelarticles/Online-Travel-Statistics-337.html http://www.websource.co.in/news-events.asp http://www.globalinsight.com/ProductsServices/ProductDetail850.htm?gclid=CKzO7 KPoo5cCFQ8upAod8E1f_A
Book Used: HOSPITALITY SALES AND MARKETING James R. Abbey
Ramani A. (H-1401)
57
SAMPLE INTERVIEW
Dear Respondents, I, Aarthi Ramani, year 3 student of the Institute of Hotel Management, Aurangabad, am conducting a research on outbound leisure travel from the city of Pune, as part of my course work. All the responses will be kept highly confidential. They will not be used for any illegal puposes Thank you. Name: _____________________________________________________________________ Age: ______________________________________________________________________ Gender: ____________________________________________________________________ Occupation: ________________________________________________________________ Designation: ________________________________________________________________ Contact no.: ________________________________________________________________
Monthly Income: ____________________________________________________________ No. of vacations taken in a year: ________________________________________________ Duration of vacation: _________________________________________________________ Budget for vacationing: _______________________________________________________ Mode of booking: ____________________________________________________________
Ramani A. (H-1401) 58
Outbound Leisure Travel from Pune Its Trends and Impacts on Hotels Priority while on vacation: _____________________________________________________ Preferred mode of transport: ____________________________________________________ Preferred destinations in India: __________________________________________________ Preferred destinations outside India: _____________________________________________ Preferred hotel chain:_________________________________________________________ View on customized packages: _________________________________________________
Ramani A. (H-1401)
59

Outbound Leisure Travel From Pune - Its Trends and Impacts On Hotels

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Outbound Leisure Travel From Pune - Its Trends and Impacts On Hotels

Enviado por

Direitos autorais:

Formatos disponíveis

INSTITUTE OF HOTEL MANAGEMENT AURANGABAD

Aarthi Ramani (H-1401)

Submitted in Fulfillment of the Requirement for BA (Hons) Hotel Management

UNIVERSITY OF HUDDERSFIELD, U.K. 2008-2009

Aarthi Ramani (H-1401)

Date: 8th May 2009

1.2 FACT SHEET OF PUNE

Fig. 1 Map showing the city of Pune

1.3 INTRODUCTION TO PROPERTY

Fig. 3 Picture showing Hotel Taj Blue Diamond

CHAPTER 2: NATURE OF THE ISSUE

2.3 SCOPE OF RESEARCH

CHAPTER 3: ANTECEDENTS OF THE ISSUE

3.2 INTRODUCTION TO SALES AND MARKETING IN HOTELS

3.3 THE UNWTO

CHAPTER 4: OPERATIONAL FACTS AND CONSTRAINTS

Commercial Sales Director

Commercial Sales Manager

Fig.4 - Figure showing hierarchy in the sales department.

4.2 COMPANIES AND CATEGORIES

CHAPTER 5: LITERATURE REVIEW:

5.2 INDIA TRAVEL AND TOURISM

Asia Europe Americas Africa Australia/ Oceania

Fig. 5 Figure showing outbound travel to the destinations

Nature and Environment Culture and Art Safety Hygiene 50

5.3 PUNE TRAVEL AND TOURISM:

CHAPTER 6: RESEARCH METHODOLOGY / DATA GATHERING

6.2 RESEARCH METHODOLOGY

6.3 REASEARCH TOOL

6.4 SAMPLE SIZE

Initial Investigation / Observation

Nature of the issue

Antecedents of the issue

Operational Facts/ Theoretical Framework

Data Gathering and Research Methodology

Comments from the Management & Academia.

Fig.7 - Figure showing the flow of research methodology

CHAPTER 7: DATA GATHERING AND DATA ANALYSIS

25 20 15 10 5 0 Goa Chennai Kerala Rajasthan Others

Fig. 9- Figure showing most popular destination in India

Train (lower end)

Air (higher end)

Train (lower end)

Air (higher end)

19,800 20,800 24,400 23,400 26,900 19,800 14,400

29,800 36,800 53,200 52,200 40,300 32,000 34,200

31,200 29,400 31,700 31,600 28,700 32,900 25,900

41,200 45,400 63,500 63,200 42,100 47,100 45,700

Table 5 Table showing Price of a Taj Holiday

Location Hotel Name

Fort Aguada Beach Resort

Taj Exotica 17,000 4,000

Taj Malabar, Cochin

cruise + 10% Disc on Laundry and telephone B/F + Backwater

food and bev

B/F + lunch or dinner + 20 % disc on

food and bev

B/F + lunch or dinner + 20 % disc on

Cove Resort, 13,000 Kovalam

activities + 10% disc on laundry, telephone B/F +half + day kids

food and bev B/F + lunch 21,500

or dinner + 20 23,330 3,000 excursion % disc on

activity + 10% disc on