A PRESENTATIO

N ON

TOURISM SERVICE SECTOR

PRESENTED BY

K.GNANAPRIYADARSHINI

M.B NASEEMA BANU

D.SENTHAMILSELVI

INTRODUCTION Travel is the movement of people

between relatively distant geographical locations for any purpose and any duration, with or without any means of transport.

Travel also includes relatively short stays between successive movements. Movements between locations requiring only a few minutes are not considered as travel.

As an activity, "travel" also covers all the activities performed during a travel (movement).

INTRODUCTION(CONTD.) Tourism is travel for recreational, leisure or

business purposes. The World Tourism Organization defines

tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.“

Tourism has become a popular global leisure activity.

INTRODUCTION(CONTD.) Tourism is vital for many countries, such as

Egypt, Greece, Lebanon, Spain and Thailand, and many island nations, such as The Bahamas, Fiji, Maldives, and the Seychelles, due to the large intake of money for businesses with their goods and services and the opportunity for employment in the service industries associated with tourism.

These service industries include transportation services, such as airlines, cruise ships and taxicabs, hospitality services, such as accommodations, including hotels and resorts, and entertainment venues, such as amusement parks, casinos, shopping malls, music venues and theatres.

TOURISM MARKETING In tourism marketing, the main objective

is to motivate more and more people to visit different places thereby enhancing the image of the location/destination and also to increase the revenues.

In tourism marketing, the product is intangible and it covers a wide range of facilities provided to the tourists.

WHO – ANY ONE First Wave - They are the Leisure

Tourists which are mostly wealthy & upper-class citizens. Travel for them is a novelty.

Second & Third Waves - It comprises of middle & lower level people who are not a leisure tourist.

WHEN – ANY TIME Tourists have Seasonal Tourism - summer,

winter, spring & rainfall or during Holidays or on occurrence of certain Events – marriage, birthdays, etc.

WHERE – ANY WHERE Being a Globalization a tourist can travel

easily at affordable prices. Nearly every country has a market for Tourism

HOW – ANY WAY Developments in transportation have

helped to globalize the industry. Various means such as Planes, Trains, Automobiles, Ship, etc are available for tourism.

WHY – ANY REASON First Wave travel for Religious

Pilgrimages, Exploration, Trade, Medical & Necessity

Second & Third Waves, Because of the expansion and growth of Tour & Travel industry this Second & Third Waves people also travel at affordable prices.

PRODUCT A product in tourism is the place of destination

and what one may experience while proceeding to visit or while visiting the particular place. It includes the total package of transportation facilities, food and accommodation facilities, special attractions, etc. along with the core product which may be, for eg.; temples in Madurai, Taj Mahal in Agra, or the

Himalayan backdrop in Darjeeling. A tourism product consists of two components:

Attributes such as room, transport, conference facilities.Benefits which are what the consumer achieves

as a result of buying the product such as relaxation, learning and exploration

PRICE The actual cost of providing the product

Industry standards Profit Margin Value for money Image and standard

Pricing brings revenue to business. Pricing decisions in service marketing are crucial. They play a very significant role in building an image for the service. Price also gives a hint or assumed picture of the quality.

In tourism marketing, some services, like providing information to tourists may be government sponsored and hence may be free of cost. Other activities, say transportation and accommodation facilities may be charged according to the services provided.

Sometimes, there could be special considerations on price, as there is a certain immediacy of delivery. The prices could be adjusted to the seasonal variations in the demand and under special situations, for eg.; discounts offered on bulk bookings of tickets, etc.

PLACE Place refers to the location and the method

of delivery of services. As the place of production and the place of consumption of service are the same in tourism, the environment in which the service is delivered and how it is delivered form a part of the perceived value and the benefits of the service. Either the provider of the service or the consumer can go to the other's place or they may transact at a third location.

Two main categories of distribution are: Direct Distribution means that company takes full control of taking the tourism product to the market. In Indirect Distribution the company exercises less control over the process of reaching your market

PROMOTION The most important consideration

to bear in mind while selecting communication channels and tools are:

What is the best type of communication channel to use that will reach target market? What is the communication objective?

What is the most cost effective type of communication channel?

PROCESS There are different type of processes involved

in running a tourism business for example administration, training, planning and strategizing, recruitment, distribution, purchasing and service delivery.

It is important to ensure that these processes are planned and carried out properly so that operations run smoothly and problems are rectified quickly.

In travel & tourism industry the process of service is done by picking up the customer from their place, then guiding them, providing accommodation, providing meals on time & finally dropping back them to their place.

PEOPLE Service invariably involves front line

people and it is here that a tourism offering can really do well or fall miserably.

It is extremely important to ensure that all staff dealing with the customers carry out excellent service delivery at all times.

Due to the strength of word-of-mouth promotion in the tourism industry, service excellence is paramount.

In travel & tourism industry driver, sales executives, hospitality executives, guide, etc are the related people.

PEOPLE (CONTD.)This is because consumers associate people providing the service as a part of the product itself. The airhostesses in an Airlines, the tourist guides at a historic place, the waiters in a restaurant etc. are the people who actually provide the service. They perform the essential functions of: building and maintaining a favourable

image, providing solutions when problems arise, providing special help in case of need, and maintaining harmonious relationships, etc.

PHYSICAL EVIDENCE The physical evidence of a tourism

product refers to a range of more ‘tangible’ attributes of the operations.

“Tangibalising” the product is a good way of giving positive and attractive hints or cues to potential customers with regard to the quality of the product.

PHYSICAL EVIDENCE(CONTD.) As the tourism product is highly intangible, the

place, the decor, the people, and everything else in the tourism office maybe related to the experience in store.

For example, when tourists visit a historic place for the first time, they carry home not only the memories of beautiful structure, but they also remember all other factors like transport facilities available, the surrounding markets, the people's behaviour, etc. as one whole experience. All this is a part of the conscious effort on the part of the tourist to make the intangible experience more tangible.

TYPES OF PHYSICAL EVIDENCE Physical Evidence may be divided into two types: Essential,

and Peripheral. i) Essential Physical Evidence: This includes all the basic

requirements that are essential to render the service. A well equipped building with all the necessary tools and information, good furniture, necessary transportation facilities to reach the area where service is provided, etc. are all essential if effective service is to be provided.

For eg., an Indian Tourism office in New York may project an image of exquisite grandeur to attract the people there and convince them that they can expect much more when they 'Visit India.'

ii) Peripheral Physical Evidence: Peripheral physical evidence has little value of its own.

For eg.,A railway ticket has no value in itself if the traveller misses the train. Similarly, V.I.P. passes lose their value once the time elapses whether they are used or not. This signifies that the peripheral physical evidence tries to bring an aspect of tangibility to the product but it actually represents a right to experience the service at a later point of time. It can be understood that physical evidence tries to provide an extent of tangibility. to the otherwise intangible nature of the service.

POSITIONING In marketing, positioning has come to

mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

In travel & tourism industry a company builds its image in the market with regards to their services and the packages they

provide.

BESIDES THE P’S TODAY’S CERTAIN C’S

Besides the Ps today certain C’s have also been added in services marketing - particularly in relation to the tourism products. These include:

Commitment : This means that the producer or supplier of service as well as the employees must be committed to tourism and the service being provided to the tourists.

Cleanliness : This is a must for destinations, hotels, airports, railway stations and trains along with in the employees who are part of the service process.

Communication : This must be clear and effective with no gaps whether verbal, written ' . or through telecommunications mode. Certain service situations require quick communication.

Crisis handling : Crisis in providing tourism services is not uncommon and they need careful handling.

Creativity : This is the key to success in packaging or designing tourism services.

Customer involvement : A tourist not only consumes the service but also experiences it.

Hence, customer involvement and participation in many tourist related services leads to enhancement of tourists enjoyment or satisfaction levels.

RELATIONSHIP MARKETING IN TOURISM

Each of the elements of the Marketing Mix interact with each other and they should be so developed that their results are synergic in nature. Hence, while developing a Marketing Mix strategy, the tourism marketers need to consider the Relationships between the elements of the mix. This is termed 'Relationship Marketing.'

There are three degrees of interaction between the Marketing Mix elements. They are:

i) Consistency : This is where two or more elements have a logical and useful fit. In tourism marketing, product, physical evidence and place can be said to be consistent. Again, promotion and people elements have a similar relationship.

ii) Integration : It involves an active harmonious interaction between the elements of the mix If the different elements are designed on their own without considering their effects on the others, confusion and misuse of the resources may result.

iii) Leverage : It is concerned with using each element to best advantage in support of the total marketing mix.

THANKYOU….ANY QUERIES??..

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