TRAVEL TOURISM AND LEISURE SECTOR

Definition
Tourism marketing
Marketing in tourism is to be understood as the systematic and co-ordinated execution of business policy by tourist undertakings whether private or state owned, at local, regional, national and international levels to achieve the optimum satisfaction of the

needs of identifiable consumer groups and in doing so achieves an

approapriate return.

Three important consideration for tourism marketing

Generation of profits by the tourist organisations.
Providing world class services to the tourists. Positive contributions of tourist organisations to the process of social transformation and ecological balance.

Tourism Product
Tourism product refers to the tourism product offering . although service products are highly intangible, there are certain physical characteristics which consumers asses in the evaluation of their

product choice. These are:

Attractiveness of the offering Levels of quality and service Accessibility.

Different tourism products include

Accommodations
Recreation

Attractions
Transportation Shopping

Salient features of tourism product

Tourism product is highly perishable

The tourism product is a service product

Intangibility complicates the task of marketers.

The services are for pleasure

Users are supposed to visit the centre

Adequate infrastructural facilities for the tourism product

The users are a hetrogeneous group of people

How is typical tourism product say destination managed and marketed?

Destination Managing the airport Airlines Road and rail transport Hotels Resort representative Tour operators and travel agents

THE 7Ps OF TOURISM

Price

Place

Product
The seven Ps Of Tourism Marketing Mix

Promotion

Physical

People Process

evidence

Product
Accommodation
Entertainment Learning Restaurants Pubs

Shops

Price
Distance Traveled
Entry Fee Accommodation Guide Food

Drinks

Place
Heritage Sites Monuments Parks

Hill Stations
Beaches Resorts Theme Parks

Promotion
Advertising
Publicity Sales Promotion Word of Mouth Promotion Personal Selling

Tele Marketing

People
Tour Operators
Travel Agents Tourists Guides Hotel Staff

Process
Training
Guiding Explaining Preserving Documenting

Physical Evidence
Monuments
Historic Places Leisure Centers Healing Parks

PEST AND SWOT ANALYSIS

Objectives of analysis
Identify influences,
Control those(if any) which can be controlled,

Use any which can be used for best competitive

advantage.

Pest Analysis-Global Perspective

Political Factors
Economical Factors

Social/Cultural Factor
Technological Factors

Political Factors
Political instability in terms of terrorism, war, break outs.
E.g.: Gulf war had tremendous effect on the region & even on the countries like Turkey, Yugoslavia; where danger on holiday makers was negligible. Government support to the tourism industry is also a major factor.

Economical Factors
In countries where currency is highly unstable, the opportunities to develop tourism becomes limited. Economic wealth,of both the countries; where tourism is to be developed (countrys affordability for infrastructure like roads, airports,etc. )& also in the country where it is promoted(peoples affordability to pay for expensive holidays) is a major economic factor.

Social / Cultural Factors

Over time, changes in the social behavior affects the consumers buying habit. In UK, people from all walk of life expects a lifestyle

which includes the choice of holiday option.

Fashion is another cultural variable which influences the

tourism, but it differs from country to country & people

to people.

Technological Factors
Better technology in the field of communication with cheaper cost has seen many remote area get connected to the rest of the world. Better transportation has lead to dramatic increase in number of tourists. It also includes internet reservation, online banking, credit card , ATMs, easy money transfers, etc.

SWOT Analysis-Indian Perspective:

Strength
Weaknesses

Opportunities
Threats

Strength
Indias geographical location. A combination of deserts,
forests, mountains, and beaches. Diversity of cultures i.e. a blend of various civilization and their tradition. A wealth of a archeological sites & historical monuments.

Weaknesses
Lack of adequate infrastructure.
A xenophobic attitude among certain section of people.

No proper marketing of Indias tourism in abroad. People

are not aware of the variety of natural beauty, India is full of.

Opportunities
More pro-active role of government of India in
terms of making policies.

Allowing more multi-national companies into the

country giving us a global perspective.

Growth of domestic tourism.

Threats
Economic conditions.
Political turmoil and corruption.

Terrorism.
Aggressive strategies adopted by countries like Australia, Singapore, Malaysia, etc. in promoting tourism.

MARKET SEGMENTATION

Market Segmentation For Tourism

Helps in tailoring of products and marketing programmes
Lifestyle important base in the process For getting positive response market needs intense care Use of Creative Strategies helps in getting a positive response. Simplifies the task of Marketers

Selection of Base For Segmentation

Holiday as a Base
Demand as a Base

Geography as a Base
Market Segmentation

Psychography as a Base Demography as a Base Socio-Economic as a base Purpose as a Base Age as a Base

Tourism

7Ps OF TRAVEL

7 P`s for Travel (Hospitality Service)

PRODUCT. PLACE. PRICE. PROMOTION. PHYSICAL EVIDENCE.

PEOPLE.
PROCESS

INNOVATION IN TRAVEL & TOURISM.

Destination specific events. Promotion of off season packages. Time sharing. Travelers Cheques. Special Activities/Adventures.

Technology in Tourism.
Artificial Tourist Information Kiosks/Websites. Online Ticket Exchanges.

Innovation in Air Travel/Airlines.

Video/Music on individual seats. Conducting business in sky. Sale of empty seats through auctions/internet.

Technology in Air Travel/Airlines.

Online reservation. Real time price change. Real time flight information. Self service technology. Telephony- sky to ground. Frequent flyer programmes.

Managing Demand
Developing off Peak Pricing Schemes
Non Peak Promotion and Demand Creation Developing Complimentary Services Creating Reservation System

Managing Capacity Or Controlling Supply

Using Part Time Employees
Increasing Capacity Of Existing Personnel Sharing Capacity With Others Increased Customer Participation

Tourism Marketing In Indian Perspective

Of late, tourism has emerged as an important sector of the economy. If the managerial decisions are creative, innovative and sensitive, we expect a lot from the tourism industry. The rate of success in the tourism industry is sizeably influenced by the instrumentality of supporting industries, such as hotel, transportation, communication, banking or so. The developed countries and to be more specific the leading tourist generating countries of the word, such as U.S.A., U.K., Germany, France, Australia, Spain, Singapore, Cyprus have assigned due weightage to the principles of modern marketing in managing the tourism industry.

Contd.

In the Indian industry we find tourism industry at the bottom of our development agenda which has been standing as a barrier while energising the process of qualitative or quantitative improvements. It was in the early 1950s that the Govt of India decided to promote tourism industry but it had no clear objectives in terms of marketing. At the initial stage, the image problem was found at its peak and even till now we find it an important constraint. The government further activated efforts and new offices were opened in 1964. The beginning of the decade 1970s opened new vistas for the development of marketing concept in the tourism industry.

Contd

The Pacific Visitor Survey conducted by PATA in 1967 revealed that it was only due to image problem that the tourism industry in India has not been successful in raising its contribution to the development of economy vis--vis generation of foreign exchange.
The beginning of the decade 1980s paved avenues for the development of tourism industry. The management experts felt that if the contribution to the world tourism is to be increased, tourism services needed to be professionally marketed.

Contd

Aggressive marketing was required to be taken up in the existing tourist generating markets abroad as well as to explore new markets. In order to cater to the needs of professionally sound manpower for tourism marketing, the Indian Institute of Tourism and Travel Management was developed as a model institute.
The beginning of the decade 1990s opened new areas for the development of tourism in the Indian perspective. This necessitated

development of infrastructural facilities like transportation, communication, accommodation or so.

In order to improve tourism, the following areas need to be considered

Making tourism industry a unifying force, instrumental in fostering better understanding through travel. Helping to preserve, retain and enrich our cultural heritages. Bringing socio-economic benefits to the community and the state, specially in terms of expanding the employment opportunities, generation of profits, tax generation, foreign exchange generation or so. Giving a direction and an opportunity to the youths of the country both through domestic and world tourism to perceive hopes and aspirations of others in a right fashion.

Contd.

Taking up activities helpful in image building and strengthening the national image.
Innovating the promotional measures and assigning due weightage to aggressive promotion to project a positive image. Development of people by advancing education and training facilities. Enriching their professional excellence by undertaking an ongoing training programme. Motivating the private sector to develop the superstructure.

Contd..

An overriding priority to adventure tourism, village or rural tourism, beach tourism, heritage tourism or so.
Promoting the use of sophisticated information technologies to improve the quality of services. Enriching peripheral services to add additional attractions.

THANK YOU!!