RETAIL MANAGEMENT

TOURISM INDUSTRY

History
The Mobility Era The Modern era The Grand Tour Era

History

The Empire Era

The Renaissance Era

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Employment Generation
Tourism is the key factor in employment generation.
Employment created by aviation industry till the
year 2010 is 50 million and is expected to reach 75million till the year 2015.
Railway is the biggest agency in India and road transport is also one of the important contributing factors in promotion of tourism.
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Employment Generation
They provide employment to 1.810 lakhs persons
throughout the country and another 5 lakh people working indirectly in ancillary industries. The travel and tourism industry has registered a marked growth of about 15 per cent ever since the economic downturn and the 26/11 Mumbai terror attack.

Employment Generation
In 2011, the Foreign Tourist Arrivals (FTA) is
expected to touch 6.5 million and domestic travelers to almost 350 million. It is noteworthy that even with a meager size of six million foreign tourist arrivals in the country and with a sizeable domestic tourist market, the tourism sector employs as high as 49.8 million people. This makes it one of the highest employment generators in the country at about 9.8 per cent of the total employment 5 generated.

Employment Generation
The travel and tourism industry provided more than
235million jobs in 2010, representing 8% of global employment. In India, the direct employment from tourism contributes to 4.59% of the total employment in the country. Adding the indirect employment to it, the figures goes up to 8.27% i.e. the total employment generated by the industry in India is around 40 million.
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FDI and GDP

Under the automatic path, 100 percent FDI is
allowed in hotels and tourism. Travel and tourism is a US$32 billion business in India with an input to 5.3% of Indian GDP.
According to the World Tourism Organization, India will be the leader in the tourism industry in South Asia with 8.9 million arrivals by 2020.

FDI and GDP

According to the Indian Tourism ministry, the
Indian tourism industry would be the third largest foreign exchange earner in the country in the next three year.
Till the end of 2012, foreign tourists will grow at the fastest pace in comparison with the last decade and it is estimated that tourism in India could contribute US$1.8 billion to Indias GDP.
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Case study

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Introduction of Raj Travel World

Shree Raj Travels and Tours Limited was founded
in 1976 by Mr. Lalit Sheth- Chairman and Managing Director. It was the first to introduce group packages to Australia and New Zealand 1981. Raj Travel World in a short span revolutionized the industry with many first and innovative introductions.
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Store Layout
Raj Travel World has loop (racetrack) & boutique
store layout.
It has one entrance and one exit. The desk ,where customers are attended is arranged around the walls of the store.

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Store Location
Raj Travel World is located mostly in a high street
location like the Western Express Highway, Girgaon Chowpatty, Lokhandwala etc. with high consumer traffic.

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Franchising
Raj travels and tours function according to trade
name franchising in this method of franchising Raj travels and tours permits the franchisee to use the franchisors products and services, trade name, trademark and prescribed business format.
Raj travel and tours makes efforts in educating and training a franchise holder from time to time.

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Franchise Fundamental Requirements

An operational business space of minimum 500 sq. ft. Premises should preferably be under ownership. If premises are on lease it must be permissible for four-years. Premises should be on the ground floor.
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Franchise Fundamental Requirements

Premises should be main-road facing.
Premises should have a provision of a Sign-Board which will be clearly visible. Office must have two telephone lines, a fax line and proper air-conditioning. Office must have a computer, internet connectivity & a printer. 16

Franchise Fundamental Requirements

Unit must have minimum 2 executive staff that are
fluent in English and their regional language.
Staff must be from the Travel Industry with knowledge of Tours and minimum qualification 12th pass with a IATA degree.

Office must have a peon to facilitate daily operations.

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Terms and Conditions

The Franchise Agent will pay a refundable deposit of INR 5, 00,000 which is interest free. The Franchise agent brand Royalty Fee of Rupees 50,000 + 12.25% S.T. per annum to Raj Travels. The Franchise unit will operate as per the guidelines and parameters set by the Raj Travels H.O. in Mumbai from time to time.
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Terms and Conditions

The Franchise will be bound by the terms and conditions mentioned in the Franchise agreement. The Franchise unit will not make any financial commitments on behalf of Raj Travels to any individual or company without written consent from the H.O. Raj Travels will not be obliged to fulfill any commitment on behalf of the Franchise unit that has been incorrectly interpreted to any individual or company.
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Terms and Conditions

Franchisees should be willing to abide by the Raj Travels uniform policy. Franchisees should be willing to furnish the office to ensure customer comfort. Stationery should be printed only after obtaining written approval by the Head Office. Raj will not be able to incorporate the agents name in their advertisements as per company policy, however, telephone numbers will be positioned in advertisements at the sole discretion of the Head 20 Office.

Terms and Conditions

Raj will not be liable to advertise franchise name in all its advertisements. However, they may sometimes display their number and location at the sole discretion of the company and based on your performance. The franchise is not allowed to undertake or promote any other service, brand or deviation of activity outside the parameters of the company policy and framework of Raj Travel World's business or brand. Any use of Raj Travel World brand or copyrights / trademarks are not allowed to be used or displayed without prior approval from the Raj Travel World management. 21

Advantages to Franchisee
A franchise agent will never have the need to introduce himself to his customer.

Agents are getting an opportunity to promote "World Class Travel Products" that are not on offer by any other travel company in India.

Agents will also have the opportunity of checking real time availability of flights, and over 80,000 hotels globally and click, confirm and issue the same 22 in minutes.

Franchise
RAJ is the largest Indian Tour Operator with 79
offices and 1000 agents across INDIA. It has 11 franchise in Mumbai with its head office in South Mumbai- Churchgate.

Footfalls: 5,000-6,000 .

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Break-Even Point
Estimated initial investment
Particulars Royalty Fee (Annual) Computer Printer Telephones and internet Furniture & Air conditioning Printing , Stationery & Sign Board Miscellaneous Amount 50,000 + 12.25% Service Tax 45,000.00 50,000.00 10,000.00 7,000.00

Total Investment

1,68,125. 00

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Break-Even Point
ESTIMATED MONTHLY EXPENSES OF FRANCHISE UNIT Salaries*
Telephone - communications* Electricity* Interest on Initial Investment including 5,00,000 deposit Staff Welfare* Advertising & Marketing Expenses Total Expenses

35,000.00
4,000.00 3,500.00 7,000.00 1,000.00 8,000.00 58,500.00

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Source: www.rajtravels .com

Break-Even Point
Raj travel World makes international and domestic
tour sales and earns a commission of Rs. 86,500 per month. Therefore, it recovers its initial investment between the 2nd and the 3rd month of its operation.

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Pricing Strategy
Raj Travels pricing methods are generally cost based
pricing, demand based pricing, and competition based pricing. Raj believes in guiding the traveler with an "all Inclusive" price point, and not mislead a client with an eyewash of a published low price, with all others as optional.
On cancelation the deposit money can be used any 27 time up to a period of one year.

Raj Rewards
Raj Rewards loyalty program is based on a simple
premise to build & develop stronger relationships with our customers. The more you book with www.raj.travel the more you will be rewarded. They give complimentary gifts such as bags, passport pouches, thermos etc to their customers.
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Advertising
Raj travels and tours advertise in printed medium such as news papers in the form of display ad which is larger ad (can include art) that runs in an article section of the newspaper. It advertises in Guajarati news papers and Mumbai Mirrors. It also advertises on large structures called billboards or hoardings located in South Mumbai. They are often located on the main roads with large amount of viewers.
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Windows Display

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In house Advertising
They use enlarged photographs of various destinations for in-house advertising.

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Achievements
Ranked as "India's Number 1 International Leisure
Tour Operator" by BBC World along with NFO MBL
Recently won India's top travel consumer brand as by "Mera Brand" validated by Ernst & Young

They include the Best Performing Agency by

reputed airlines such as Lufthansa and Air India in 2003.
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Thank -You
BY: STEFFI- 03 LEHA- 33 NEHA- 48 PINKI- 18 HEENA- 24 ARSHIYA- 45