2nd Chapter Tourism &Travel Service

introduction to Tourism
there are several reasons for a tourist to visit a
place of some intrest.
the visit may be due to historical place, religious
significance, shopping. some times it could be
man made tourist attraction. but to creat a need
to visit to a destinstion of tourist intrest is
tourism marketing.
the activities that are managed to boost tourism
services is called tourism management
Contd...
once an idea of visiting tourist destination is sold to
the tourists every one involved-transporters, hotel,
tourist agents and other allied services entities are
benifited, in addition to the tourist.
this chain reaction generated gives a fillup to the
developement of tourism.
indians has realised the role of tourism in economic
developement. tourism has emerged as the one of
the largest foreign exchange earning industry in
india.
Evoluation of tourism industry
india has been a late starter in tourism.
understandably, immediately after independence the
focus was on key areas like agriculture,
industry,irrigation, infrastructure and the social
sectors.
tourism started receiving attention in the last decade.
indian governement proposes to spend over RS 2900
crore in the next five years to boost the growth in this
sector.

Concepts of tourism
the tourism helped to generate employement for the
masses who could contribute to the growth of
industry.
government policies gave encouragement and the
contribution.
professionalism in conduting tours is required to tap
vast potential in business world.
professional management of the activities will
certainly help to capitalise on the opportunities that
exist
Nature of tourism
the touriam is a major industry throughout the world today.
in view of developement taking place all over the world
more people are travelling to for away place and the
frequency of travelling has increased more than ever before.
there are four main characteristics in tourism industry.
1.inflexibility
2.perishable
3.fixed location
4.large financial investment
Contd...
1.inflexibility:- the tourism industry is highly
inflexible. ex:-the capacity of a hotel in terms of
rooms,or seating capacity in a transport facility is
fixed and it is not possible to meet sudden demand
seasons.
2.perishable:- the service provided by the tourist
industry is highly perishable. Ex:- an unused hotel
bed or a vacant seat in a aeroplane leads to non
utilisation of capacity which has a bearing on the
profit of the organisation
3. fixed location:- the destination is fixed and
efforts are required to make the potential
tourist to visit the location.
4.large Financial Investment:- Modern tourist
establishment requires large financial
investment both to start and to maintain the
services making it 'high risk' services as the
rate of return is critically important.
Tourism
Tourism is travel for recreational, leisure,
or business purposes. The World Tourism
Organization defines tourists as people
"traveling to and staying in places outside their
usual environment for not more than one
consecutive year for leisure, business and other
purposes".
[1]


What is Tourism
"the temporary movement of people to destinations
outside their normal places of work and residence,
the activities undertaken during their stay in those
destinations, and the facilities created to cater to
their needs."
Tourism is a collection of activities, services and
industries that delivers a travel experience, including
transportation, accommodations, eating and drinking
establishments, retail shops, entertainment
businesses, activity facilities and other hospitality
services provided for individuals or groups traveling
away from home.


Contd...
The World Tourism Organization (WTO) claims that
tourism is currently the worlds largest industry with
annual revenues of over $3 trillion dollars. Tourism
provides over six million jobs in the United States,
making it the country's largest employer.

Tourist:- the word tourist is derived from "tour".
tourists are the voluntary temporary travellers.
tourists are persons travelling for pleasure and
business purpose.
Contd..
Foreign Tourist: Any person visiting a country, other than
that in which he/she usually resides, for a period of at least 24
hours.

Travel: The act of moving outside one's home community for
business or pleasure but not for commuting or traveling to or
from school.

Visitor: Any person visiting a country other than that in which
he/she has his/her usual place of residence, for any reason
other than following an occupation remunerated from within
the country visited
Services and Tourism
Service and Tourism go hand in hand
Growth rate of services sector faster than any
other
Tourism is the leader in the production of new
jobs
Tourism has developed an important part of
the economic foundation of many countries

Medical tourism in India
Medical care in the USA and private health care in UK is
very expensive. India has well-trained doctors who will
work for a lower fee than they could expect abroad.

Medical tourism offers people the option of knee
replacements, hip replacements, heart care, cosmetic &
dental surgery in India.

Hundreds of people have treatment in abroad, saving them
a great deal of money in treatment costs.


Accommodation Providers
Hotel chains
New trends, such as budget hotels
Bed and breakfast
Youth Hostel Association
Villas and country houses
Visitor: Any person visiting a country
other than that in which he/she has
his/her usual place of residence, for any
reason other than following an
occupation remunerated from within the
country visited (United Nations
Conference on International Travel and
Tourism, 1963).
Market segmentation is a valuable technique
for the following reasons
better understanding of customer needs.
better understanding of competative
situtations
exact measurement of goals and
performances.

Narrow sense
Consists of what the tourist buys
Wider sense
Combination of what the tourist does at
the destination and services used
The Tourism Product
Characteristics of a tourism product:
Service, which is intangible (e.g., cannot
be separated physically)
Psychological in attraction
Varies in quality and standards
Supply side is fixed (e.g., more hotel
rooms cannot be instantly created to
meet demand)

The Tourism Product (contd.)
Major types:
Internal tourism
Residents of a country visiting other parts of their own
country
Domestic tourism(inbound)
Inbound tourism plus internal tourism
inbound tourism is when someone/non-resident comes
to your country


Characteristics of Tourism
I nternational tourism
International Tourism is when people travel globally
outside of their region and home country. This means a
temporary movement of people from the resident place to
another place for different reasons such as recreational,
health,business or some other reason.
Outbound tourism
outbound tourism is when someone goes out of their own
country. it can for holidays, business, trip etc.
Characteristics (contd.)
Several interacting industries make
up the tourism system, including:
Transportation
Lodging
Attractions
Foodservice
Tourism Industry Sectors
4P's of Marketing Mix under Tourism Service
By taking a fresh look at these various aspects of your
company you will be sure that all of your work supports
your main goal selling your services to your customer.
It will also help you answer more fundamental questions
such as; who are your customers?, how do you reach
your customers? and what are the needs of your
customers?, to name a few.

The 4 traditional Ps and the implications in the tourism
business
Product of tourism
When thinking about a tourism product, its important to
differentiate between what the customers actually buy (the
promise of a product) and the product mainly a service
that they receive after the purchase (the actual product).
The purchasing decision made by the tourist is based on the
promise of the product a promise established by what she
or he sees in your promotional material.
For example, the product Amazon Lodge shown below
is the combination of tangible goods (e.g. the rooms, the
swimming pool, the birds) and intangible experiences (e.g.
the service, the activities). Obviously, the product is
thousands of miles away and you are not buying the
property, therefore the actual product you buy is the
promise displayed on the brochure (while the brochure is a
promotional channel).
Promotion Mix
Promotion is the activity of telling your market about
your product. In the example of the Amazon Lodge,
you are using a brochure to tell your customers about
a tourism product in the Amazon.
Nowadays, promotion is replaced by communications,
which represents a broader focus. Communications
can include advertising, public relations, personal
selling, viral advertising, and any form of
communication between the organization and the
consumer.
Place Mix
Placement is synonymous with distribution. It refers to
providing the product at a place, which is convenient for
consumers to access.
In tourism, the product is not distributed to the client, but
the clients travel to the product. Thus, unlike physical
products, tourism distribution is more related to where you
distribute the informaton about the service (trade shows,
resellers, webpages, etc.).
In the example of the brochure of the Amazon Lodge, the
placement may be your office, a trade show in London or to
potential customers houses (by direct mailing).
Price Mix
Price is what the business charges for its tourism
product as defined by the interacting forces of supply
and demand.
At a practical level, tourism enterprises can determine
their prices by analyzing:

The cost of running the business;
The willingness to pay by the demand;
The prices of the competition;
The commission to be provided to resellers.
3 more P's of service Marketing Mix
People
Process
Physical Evidence
Tourism Development and its role in Local
Economic Development (LED)
Tourism is one of the fastest growing industries
worldwide in past two decades
TD has multidisciplinary character and connecting
different economical sectors
TD has positive influence mainly to a traffic
infrastructure, construction industry, banking etc.
In terms of financial international trade turn over is
located on the third place (after petroleum and cars
industry)
Economic contribution of tourism captures Tourism
Satellite Account (TSA)


TD
Build infrastructure contributes to a LED and
urban infrastructure recovery
Creates new jobs
TD can be considers as a polarize, induce or
neutral sector in the region



Benefits of tourism
Economic aspects (creation of new jobs, a
source of capital, increasing competitiveness)
Social aspect (improvement of facilities and
level of public services, revival of the folklore
and local tradition etc. )
Environmental aspect (ensuring of
environmental stability)


Why Tourism in your region?
The Economic contribution of tourism to the
region - creation of added value of purchased
goods and services in the region
Services are:
- at primary level (accommodation, catering,
rental, transport etc.)
- at secondary level (above standards and
additional service)

Key types of tourism
Leisure tourism: describes tourism for the main
purposes of recreation and leisure (residential
vacation and also day trips) adventure tourism,
ecotourism, heritage tourism, wine tourism,
packaged beach vacations.
Health tourism: travelling for health reasons. This
includes visits to spas and health and fitness centers,
as well as travelling to receive treatments which
require more specific medical intervention such as
cosmetic or medical surgery.


Contd
Educational/study tourism: travelling to attend
an academic institution in order to gain
qualifications or participation in a tour for the
purposes of learning.
Business tourism: travelling to attend an
activity or event associated with business
interests. A key component is the MICE sector:
meetings, incentives, conventions and
exhibitions.

A tour operator definition
EU Package Holiday Directive
a pre-arranged combination of two or more
components when sold... at an inclusive
price includes overnight accommodation
A tour operator = the organiser of a package
holiday

The role of the tour operator
Purchase in bulk components of a holiday
Package them into a standardised repeatable
product
Brand them into a single entity
Offer them to the public at an inclusive price
Middleton
How does this differ from the role of the travel
agent?

An agent
Acts for a principal (the producer of the
product)
provides a service for a fee or a commission
in British usage a travel agent is someone who
sells travel and holiday packages for a
commission, usually from retail shops
This distinction is becoming blurred

Understanding the tourism system
Exercise
You are managing a hotel in a destination
Draw a map of the intermediaries involved in
marketing your rooms to UK tourists
How do they add value to the end-product?
What does each party get from the interaction?
How easy would it be to find a substitute?


The Travel & Tourism Industry
Travel and tourism is one of the worlds
largest industries
It is also one of the most fragmented
The two aspects of the industry can be viewed
separately, as many of the players are involved
in both
Lets look at each part of the industry on its
own


Distributors

Distributors
The people, groups or firms that deliver the
products and services of travel to consumers.
These include:
travel agents (business and leisure)
travel operators selling direct to the consumer
firms selling on the Internet
call centres handling customer service


Regulatory Bodies
Organisations set up to oversee the industry,
either:
Trade associations such as ABTA (Association
of British Travel Agents)
or
Statutory bodies such as the CAA (Civil
Aviation Authority)

Public Sector Organisations
Public Sector Organisations
Government departments with responsibility
for the industry:

Department for Transport (DfT)
Department for Culture, Media & Sport
(DCMS)
Foreign and Commonwealth Office (FCO)

Transport
Transport
Delivery of travel products and services by:
Road
Air
Sea
Rail

7/8/2014
Road Transport Services
Road transport provides basic infrastructure in connecting
people of remote village to the mainstream of national life.
with the invention of a new transport medium that is
motorcar,the entire shape of the tourism industry was
transformed.
it becomes the most promising and suitable for short and
medium distance.
the inter state bus system is well developed and the quality
of buses varies. they fall into the category of ordinary, semi-
deluxe, deluxe and air-conditioned coaches.
7/8/2014
Contd...
all information is available at bus-stands. taxia,car rental
systems; matador type van are other services in road
transports

The developement of road transport is bringing about a
fundamental change in the developement of tourism in the
growth of resorts, hotel and other services. the automobile
provides greater freedom oftravel and choice of destination.

the indian roads are classified into the following four
categories.
7/8/2014
Contd....
National Highway:- these roads are primary roads of india.
they connects big citiesand big industrial centres. they are
maintained by central government.
State Highway:- these roads connect all important
industrial,trade and commercial centres of the state and
national highways. they are maintained by state
government.
District Roads:- these roads link important industrial and
market places of the district and local railway station.
Village Roads ;- They connects villages or groups of
villages with each other and to the nearest district road and
other main highway
7/8/2014
Importance of road services.
importance of road transport services in india is recognised
by the advantages it possesses.
1.they can easily connects any part of the country,unlike
railways.
2.road transport is complementary to raiways by providing
feeder(A container filled with food for birds or mammals.)
service.
3.it is more flexible in operation compared to other modes of
transport.
4.road transport can provide door to door service.

5.the chances of delay, damage or loss are less in road
transport.
7/8/2014
Contd...
6. this is better means of transport to carry
perishable articles like vegetable, milk or
fruits to reach market places well in time.
7.Road transport does not require heavy
capital for operation.
7/8/2014
Marketing Mix for Road Transport
Product:-Road transport corporations, inter
state road transport organization or travel
agencies/individual engaged in road transport
business to carry passengers or goods from one
place to another roads as well as vehicles
playing on these roads need up gradation and
regular maintenance of roads includes
drainage, provision of road side
amenities,landscaping/horticulture etc...and
need special attention service sector
management.
7/8/2014
Price..
For state road transport corporations, pricing structure
cannot be changed with a change/hile in the prices of
the input. this affects their financial health and it
refelects on the qualityof services offered profit
making private organisation can change prices
according to cost incurred,seasonal demand,emerging
trends etc..
7/8/2014
Road and Rail Services
in transport services there are many segments. basic
classifications are
land transport
sea transport and
air transport
all these three modes are used by different categories of people
for different purposes. this necessitates the segmentation of
transport market.
the segmentation considers the factors such as region, age, the
type of commuters,(someone who travels regularly from
home in a suburb to work in a city) geography, distance,
rural, urban, economic condition of people, etc..
7/8/2014
Contd...
the type of transport to be operated depends upon the
requirement and changing needs of the segment. in
land transport. two major modes viz.., railways and
road transport are playing a significant role
7/8/2014
Rail Transport Services
The first organized rail transport began in the year 1841.

Railways are most suitable for long distance travel. it is a
fascinating(capturing interest) experience. it passes through
towns,villages and green vegetation and takes one back into
the glorious(bright) past.

The railways can be considered one of the most powerful
motives for mass travel in the 19th and 20th century's
7/8/2014
Indian Railways
in india, railways have made use of technological
advancement that has resulted in increased speed, comfort
and carrying capacity.

A high speed train such as rajdhani express is running b/w
delhi-culcutta and delhi bombay track at the speed of 120
km per hour.

in india, a tourist has to use railways facilities where ever he
goes as not all the places are linked by air.



7/8/2014
Contd...
indian railways is the world's largest railways system
with staff strength of 1.7 million persons, which is the
largest single employer in the world.
it all began with a small journy from bombay to thane
on a 34km track on 16th april 1853.
7/8/2014
7/8/2014
7/8/2014
Marketing Mix for Rail Transport
Product- passenger traffic coaches (seating,berths,leg
room,elbow room, double decks)
reservations,lighting,catering,water,sanitation,bed
rolls, medical aid services at the railway stations
service sector management.
Pricing-cost and value of service what the traffic will
bear equal mileage rate priciple(fixed rate/km). the
differential charges of zonal charging and suggestions
to improve pricing for indian railways to make it
more profitable.
7/8/2014
Place
Distribution of services to many remote aresa online
facilities,passenger's current status, enquiry fare, enquiry
reservationbs, train b/w important stations, upgraded
passenger scheme/chart,weekly availability at stations tatkal
scheme.
People-training for employees more than 200000 staff is
imparted training every year, enabling its officers and staffs
in acquring knowledge and new set of technical and
managerial skills.
A wide coverage, all age groups, all incomes levels,
occupations office going, businessmen, short haul as well as
long haul journey passengers service sector management.
7/8/2014
Water Transport Service
india is a large peninsula (mass of land projecting into
a body of water) bounded by sea on three sides, and is
blessed with a long coastline extending to more than
7500km. to the east lies the bay of bengal, the arabian
sea lies to the west, and the indian ocean lies to the
south.
regular passenger ships are available in most of the
coastal states.
sea journey is mostly used to reach the lakshadweep
islands in the arabian sea,
7/8/2014
Contd...
and the andaman and nicobar island in the bay of
bengal.

both these islands are a part of the indian
subcontinent, and are also well connected by
airways.

a sea journey can also be undertaken totravel b/w the
different port cities of the country. apart from taking
a journey by sea, you can also hire a ship for fun
trips in the blue water.
7/8/2014
Airline Transport Service
For international travel, air travel is the second most
popular mode of transport, which is next to
automobiles.
Air tarvel is attractive because of its speed and range
and also as it offers status.
in the international tourism, air travel has made a
most valuable contribution. in the year 1952, the
two-class travel was introduced which was made
possible by the larger capacity of the new aircrafts.
this made possible the lowering of airfares.

7/8/2014
Contd...
this period was also remarkable for package
holiday around air transport, the model for
most of today's global tourism.
7/8/2014
Marketing Mix by Airline Service
Product- On ground services, reservation
counters, flight information display, check in
flight services, free water, food, comfortable
seating arrangement.
Price-
Place- Booking offices of airways, travel
agents office, air-hostess, on-ground staff
pilots, tour operating agents process,
computerized reservation system.
7/8/2014
Contd..
Process- Ticket booking, ticket processing,
ticket delivery, Customer reaching the airport,
boarding pass, security check inside the
aircraft refreshments is served before he
reaches his final destination.
A pre-paid cab is also arranged for the
customer's add-on journey from the airport.
7/8/2014
Thank
you