Tourism and Hospitality

Tourism is a signiIicant sector oI the Indian economy and contributes signiIicantly to the country`s
gross domestic product (GDP) and Ioreign exchange earnings (FEE). The Indian tourism sector is
also linked with important sectors such as transportation, inIrastructure, and handicraIt, which
Iurther helps in the growth and development oI the country.
The Ministry oI Tourism has made various eIIorts to expand the tourism inIrastructure at various
destinations in India. These eIIorts are a judicious blend oI traditions, legacy, religion and eco-
tourism projects that intend to oIIer the tourists a holistic experience.
India currently holds the 12th position in Asia and 68th position in the list oI overall in the list oI
the world's most attractive tourist destinations, as per the Travel and Tourism Competitiveness
Report 2011 by the World Economic Forum (WEF).
The increasing numbers oI both domestic as well as international tourists have been very
encouraging Ior the Indian travel and hospitality sector which has nearly doubled during the last
three years. The tourism and hospitality industry experienced a healthy growth trend oI 24.6 per
cent during 2009-2010 as compared to 2008-2009. The total number oI Ioreign tourists in the
country in 2010 was 5.58 million as compared to 5.17 million in 2009, registering a rise oI 8.1 per
cent, according to the Market Research Division oI the Ministry oI Tourism.
Government Initiatives
The Government has allowed 100 per cent Ioreign investment under the automatic route in the hotel
and tourism related industry, according to the Consolidated FDI Policy, released by DIPP, Ministry
oI Commerce and Industry, Government oI India. The terms hotel includes restaurants, beach
resorts and other tourism complexes providing accommodation and /or catering and Iood Iacilities
to tourists.
The term tourism related industry includes:
O Travel agencies, tour operating agencies and tourist transport operating agencies
O &nits providing Iacilities Ior cultural, adventure and wildliIe experience to tourists
O $urIace, air and water transport Iacilities Ior tourists
O Convention/seminar units and organisations
The Government oI India has announced a scheme oI granting Tourist Visa on Arrival (T-VoA) Ior
the citizens oI Finland, Japan, Luxembourg, New Zealand and $ingapore. The scheme is valid Ior
citizens oI the above mentioned countries planning to visit India on single entry strictly Ior the
purpose oI tourism and Ior a short period oI upto a maximum oI 30 days.
The government has taken up a number oI initiatives to enhance the tourism and hospitality sector
perIormance and proIits. IdentiIication and development oI 37 destinations within the last two
years, and execution oI 600 projects Ior 300 tourist spots across the country with an investment oI
over &$24 million are some projects taken by the Government to boost the travel industry and
create awareness Ior the sector. These eIIorts have been coupled with monetary assistance Irom the
Central government to the tune oI &$ 5 million and &$ 10 million, as per the Tourism report by
the Gujarat Government.
The Ministry oI Tourism under the Marketing Development Assistance (MDA) $cheme has also set
up committees to assist and motivate travel tour operators and help them to Iamiliarise with
international standards oI hospitality. Also, the Government provides Iinancial assistance to travel
agents to participate in travel marts and annual conventions Ior travel and tourism, as per the
Annual report by the Ministry oI Tourism.
The &ttarakhand $tate Government has launched 100 per cent tax exemption program to exempt
multiplex projects, amusement parks, and other tourist Iacilities Ior a period oI Iive years under the
Vision 2020 document. On the same lines, Rajasthan has reduced the luxury tax level to 8 per cent
Irom the existing 10 per cent levels. Kerala, Madhya Pradesh, Orissa and Gujarat have entered into
Private Public Partnerships (PPP) to promote travel and tourism to attract tourists.
According to the Eleventh Five Year Plan, a total oI &$472 billion is planned to be invested in
upgrading and modernising civil amenities like bridges, ropeways, roads, telecom services, ports,
and other Iorms oI transport as per a report by the Planning Commission.



#oad Ahead
The tourism and hospitality sector report by the Ministry oI Tourism suggests that the demands are
expected to increase up to &$ 34.7 billion by the end oI 2020. In order to promote this target, the
Ministry has already sanctioned the development oI 169 rural sites across the country. These sites
have been selected based upon their competencies Ior craIt and handloom skills.
$tatistics suggest a triple Iold increase in the number oI tourists visiting the country. The sector has
witnessed a steady growth Irom Iour million travelers in 1998 to 11 million in 2008. As expected,
the Iigure in intended to reach a mark oI 29 million visitors by 2018. There is an opportunity in the
inbound MICE sector (meetings, incentives, conventions and events) which has already registered a
growth oI 15 per cent to 20 per cent during the last Iive years as stated in the report by the Ministry
oI Tourism.






CIub Mahindra Overview

Mahindra Holidays & Resorts India Ltd. Is a part oI the &$D 6.7 billion Mahindra Group, one
oI India`s leading Industrial Houses. The Group has interests in various sectors such as
Automotive, Auto Components, Farm Equipment , Trade & Financial $ervices, InIrastructure
and InIormation Technology. Mahindra & Mahindra has a successIul track record as the Market
Leader in each $ector .Over the period oI its growth and success MHRIL has managed all
aspects oI operations through one entity by creating a Iully integrated business model- Irom
identiIying land, building and developing resorts, member acquisition and servicing, resort
operations and marketing to travel related services.This integration has enhanced management
competence in many areas which have helped the company grow.

ission
The Company's mission is Good Living. Happy Families
Flagship brand
Today, Club Mahindra has emerged as an intelligent option to costly and badly-planned holidays
andill-managed time-shares. It is the Iastest growing timeshare brand outside the &.$. With 26
resorts in India and abroad, the brand has a rapidly growing member base. Today this numbers
over 1000001heCMPneLwork comprlses 17 branchofflces61 reLall sales ouLleLs lncludlng
company owned Pollday WorldsexLernal Pollday Worlds and on slLe and 149 franchlse dlrecL
Lo home channels lL accounLs for over 70 of Lhe LoLal acLlve members across Lhe vacaLlon
ownershlp lndusLry ln lndla











SECMEA1A1IOA FAC1ORS
In practice, the ground Ior tourism market segmentation shall be, oI course, on the basis oI:
a) Geographic Iactors
b) Demographic proIiles,
c) Psychographic attitudes
d) Behavioural situations, and
e) Prices
a) Geographic factors: $ince tourism involves movement oI millions oI people across the
international boundaries, it is an acknowledged Iact that the tourists` needs diIIer according to
geographic regions. For instance, tourist coming Irom Australasia region would have altogether
diIIerent needs than a tourist coming Irom North America. Not only this even tourists coming
Irom two diIIerent coasts oI America have diIIerent needs, desires and attitudes. ThereIore, to
market successIully your product or services you must understand varied needs oI the tourists
coming Irom diIIerent geographic areas. It is only then that you can categor ise your potential
segments in a homogenous manner. ThereIore, it is advisable that you should try to target a
segment Ior your product which lacks that particular product/service you are marketing. For
instance, you sell deserts oI Rajasthan to tourists Irom Germany, &K or France which have no
deserts. $imilarly, iI you are trying to sell your mountain based activities to tourist Irom
countries who do not have such snow capped peaks. You may succeed but iI you try to target
tourist Irom $witzerland or Austria you cannot succeed.

b) Demographic Profiles: This Iactor is a vital Iactor Ior developing tourism products and
services. It means to segment your product service market on basis oI income, age, sex, Iamily
size, liIestyle, Iamily liIe cycle, education, religion, race and nationality and so on. II you Iail to
design your product or segment your market without giving due consideration to these Iactors
then there may be serious repercussions Ior your product or service. It is important because:

i) Consumer wants, preIerences and usage rates are associated with demographic variables, and
ii) this method is easy in measurement and interpretation oI data.



For instance, India being a long haul destination (average length oI stay is 27.2 days) and our
major markets are America, Europe, Far East and Australasia. The demographic proIile oI these
markets will help in marketing decision making. II we look at the demographic characteristics oI
the European market, we see:
Age: between 25 59 years
$ex: majority oI males, alone Iemales very Iew
Family sizes: 2 4 members
Family LiIe Cycle: single/married without children (DINK$) or with children below the age oI
14.
Income: Euro 7000 and above
Occupation: proIessionals, executives, teachers and proIessors
Education: Higher secondary and above
Nationality: German, French, Italia, $wiss, Dutch, $panish and $wedes
Based on this data a marketer can develop, rejuvenate or alter his or her tourism products.

c Psychographic Grounds: Division oI groups on the basis oI their social status, liIe styles
and/or personality characteristics is very essential in tourism marketing. While using
demographic parameters oI income, we can divide the target segment in to upper middle class,
middle class and lower middle class. Each oI these sub-variable will have diIIerent tastes,
likings, status, product preIerences, etc. accordingly. Personality characteristics also play and
important role in product development and market segmentation. For instance, iI you are
targeting at tourists Ior adventure
sports related tourism, their real market segment would be tough and strong or adventure seekers
only. These people shall be young and so would naturally belong to low budget or lower income.
Another important criteria Ior segmenting the tourist market is on the basis oI personality traits,
i.e., some members oI potential targeted market are allocentrics. Money wouldn`t be a constraint
Ior this segment but they want to visit a new and adventurous place every time. They don`t like
to repeat the same destination. They love to be called Iirst timers or trendsetters to be Iollowed
by the masses (psycocentrics) who have a Iear Ior unknown and who want to perIorm repeat
visits.
In this category, as a marketer, you should also try to identiIy those who are selI made,
successIul socialite, mainstreamers, aspirers or innovator type oI people because they are the
ones who are most likely to purchase tours to Iar away countries.
It is also advisable that you should try to segment your market with an idea that among certain
categories oI tourists there can be Iound some common attitudes. For example, people in the age
group oI 18-26, want to have vacation Iull oI leisure and thrill, while others who look Ior
adventure can Iorm another group.







d Behavioural Grounds ; In psychological terms the whole range oI generation oI wants and
their transIormation in to buying or using decisions can be explained as behaviour. BeIore
learning about transIormation process oI attitudes oI tourists in to action.it largely depends on
occasion oI traveling
attitude
brand loyalty


e Price factor: By now you must have gathered a Iair idea that tourism market constitutes oI:
i) those who are high spenders and are prepared to pay high prices and they are described as
upbudget tourists;
ii) those who want to take low priced vacation; and
iii) those who may take a moderately priced holiday.
It is true that price range communicates to consumers the quality expectations oI a product along
with the producer`s image. Today destinations in $outh Eat Asia are cheaper than travelling
within India. For example, Bangkok is being sold at 25 per night, $ingapore at 40 per night,
etc.
This is able to attract large volume oI outbound tourism Irom India

e #eligion as Travel otive: $ince ancient times man has travelled Ior religion motives be it to
have a holy dip in the revered rivers or to visit any temples devoted to their deities or even Ior
the sake oI visiting religious Iairs or melas. &ndoubtedly religion has always been one oI the
prime motive Ior travel. However, in present times specialise services are prepared and delivered
to this niche market whether they are Muslim tourists (Haj); Hindus (Dhamyatra) or Christians
(Hoy 65 visit to Jerusalem). You must have noticed that there is a particular time Ior each oI
there segments to travel.
For instance, Haj travellers travel between the month oI January and March;
Hindu tourists visit their dhams or other religious shrines like Vaishno Devi, $hirdi, Kalka, etc.
during summer vacations, i.e., May to July; and, oI course, Christians travel during October and
December. II you look at the time and spatial distribution oI there religious tourists it would
appear to be a much more potential market segment on regular basis. ThereIore, it is advisable
that you should treat this segment as a solution provider to your seasonality problem.
It must be noted here that you can apply one or a combination oI more than one variables
simultaneously Ior market segmentation. In tourism Ior selecting the basis Ior segmentation.
There are no Iixed method but certain methods have worked successIully all through years.
These are:
intuitions,
experience,
market research; and
trial and error, etc.
But at the same you must assess your own resources, size, growth potential, capacity risks,
competition, inIrastructure and support system, etc.
In the end it is advisable Ior all that now since you have segmented your markets in to smaller
homogenous markets, as a tour operator or a hotelier, etc., you must decide upon which niche
market you would like to cater to and accordingly develop upon your services or products. II you
are a tourist
transport operator you shall decide on which segment you are targeting at only then you will be
able to make your purchases oI motor vehicles. It would always be a wise decision to make your
eIIorts to capture specialised market segments. For instance, iI you are a hotelier you have the
option to choose Irom catering walk-in customers or groups, corporate customers to cabin crew
members and so on so Iorth.




M4kk1lN6 51k416l5 Ol cLu8 M4nlNuk4
1 1hey have a one L l me l l f e member s hl p s c heme wher e c us L omer s can
bec ome L he excluslve members of club Mahlndra and have prlvllege ln en[oylng Lhelr
servlces
2lor 10 years Club Mahlndra have been brlngl ng over 79000 faml l les cl oser
by provldlng a llfeLlme hollday aL some of Lhe mosL exoLlc desLlnaLlons ln lndla andAbroad Lhey
are consLanLly lnnovaLlng Lo enhance Lhelr servlces and offer greaLer value aL every sLep along
Lhe way
3keepl ng l n mlnd your hol lday Lravel needs Club Mahl ndra has launched a
compleLe Lravel plannlng servlce Lo Lake care of every slngle need of Lhe cusLomer lrom
accommodaLlon aL Lhe resorLs or oLher hoLels Lo Lhe besL deals on al r LlckeLs and
greaL hollday packages LogeLher wlLh slghLseelng Lours 1he new servlce wlll even Lake care of
documenLaLlon llke vlsa processlng forelgn exchange and Lravel lnsurance WlLh noLhl ng Lo
worry abouL and no hassles Lo face Lhe cusLomer needs Lo worry abouL ls packlng
Lhelr bags
48usl ness and conference packages are avallable Lo cusLomers aL value raLes


Marketing Mix
People
Club Mahindra recruits the most appropriate staII and people. By recruiting the right staII and
training them appropriately in the deliver y oI their services, the organizat ion
obtains a Iorm oI competitive advantage. Consumers make judgments and deliver perceptions
oI the service based on the employees they int eract with.$taII have the appropriate
interpersonal skills,aptititude, and service knowledge to provide the service that consumers
are paying Ior .

Process
The systems used to assist the organizat ion in delivering the service is the best
suited Ior customer satisIaction and delivery oI work .$ervices are delivered to the customer at
a swiIt rate with accuracy and precision so that standards are met appropriately. They have the
online booking system and tie ups with partners so that the customers are assisted properly in
their tour packages in the best possible way there by Iostering consumer loyalt y and
conIidence in the company.

Physical Evidence
When a customer walks into the restaurant, his expectations are oI a clean, Iriendly
e nvi r onme nt . The cust omer e xpe ct s e nough r oom t o be a bl e t o la y down
a nd t ake r e st i n t he rest area. The resorts take great eIIorts to make sure that the
expectations oI the customer are met i n t hi s se nse. the customers will make
perceptions based on their sight oI the service provision which will have an impact on the
organizat ions perceptual plan oI the service



P#ICING AND P#TINAL EFF#TS

The table below shows the pricing structure:-



The resort have tie ups wit h corporate and also has a liIet ime membership scheme
so that they will be able to market their products and services.
They do rigorous internet marketing besides that they do Iollow push strategy by oIIering
packages to corporate at bulk in discount .

SEGENTATIN TA#GETTING AND PSITINING
$egmentation oI the resort is on the basis oI a place to be in holiday season . Targeting is mainly
the customers who are having a busy liIe, those who are in need to take a time oII Irom work
and also Iamilies mainly domest ic tourists. Positioning oI the resort is mainly as a holiday
spot Ior rejuvenating the body and mind