TOURISM INDUSTRY -A SERVICE MARKETING PERSPECTIVEGROUP 8Niraj, Sikta, Namit, Archana, Jagat, Boppanna

TOURISM AS A SERVICE INDUSTRY• 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

• Tourism as a service industry includes transportation services, such as airlines, cruise ships, and taxi cabs; hospitality services, such as accommodations, including hotels and resorts; and entertainment venues, such as amusement parks, casinos, shopping malls, music venues, and theatres.

TOURISM INDUSTRY IN INDIA• Tourism industry generated INR 6.4 trillion 6.6% of nations GDP• 39.5 million jobs have been created by this industry i.e. 7.7% of the

total employment• The sector is predicted to grow at an average annual rate of 7.9%

from 2013 to 2023• India ranks third among countries with the fastest growing tourism

industries over the next decade• India ranks 41st in the world in terms of foreign tourist arrivals• Foreign exchange earnings in terms of INR amounted to 94487

crores.• Number of Indian national departures from India during 2012 was

14.92 million

3 COMPANIESTHOMAS COOK

• Thomas Cook (22 November 1808 – 18 July 1892) of Melbourne, Derbyshire, England founded the travel agency Thomas Cook & Son (popularly nicknamed Cook's Tours) in 1841 that became Thomas Cook AG before eventually becoming Thomas Cook Group in 2007• In 2007 Thomas Cook acquired fellow MyTravel group for

$5.5 billion.• Today its 50:50 owned by German Retail group

KarstadtQuelle and the Lufthansa airline.

COX AND KINGS

• Cox And Kings is the oldest established travel company in the world, its history stretching back to 1758 when Richard Cox was appointed as regimental agent to the Foot Guards. Cox & Kings is now an independent tour company with offices in the Australia, United Arab Emirates, United Kingdom, India, the United States and Japan.• Its global headquarter is in London.

EXPEDIA

• Expedia Inc. is the American-based parent company to several global online travel brands.• Founded as a division of Microsoft in 1996, Expedia was

spun off in 1999, and was later purchased by TicketMaster in 2001• Expedia, Inc.’s companies operate more than 100

branded points of sale in more than 70 countries.• Expedia also powers travel bookings for over 10,000

partners such as airlines and hotels, consumer brands, and high traffic websites through Expedia Affiliate Network, 80% of which is powered by their API.• In late 2011, Expedia, Inc. spun out TripAdvisor Media

Group, retaining its portfolio of travel transaction brands.

SERVICE MARKETING MIX-7P’s

PLACE

THOMAS COOK• The company 1st set up its office in India in 1881 & has

been providing world-class travel services for 132 years.• Its footprints currently extends to over 251

locations( including 28 airport counters) in 101 cities across India, Mauritius & Sri Lanka and is supported by a strong partner network of 131 Gold circle partners & 162 preferred sales agents in over 100 cities.• The various subsidiaries world wide are: Thomas Cook

UK, Thomas cook Netherlands, Thomas cook France, Thomas cook Belgium, Thomas cook Destinations.

PLACECOX AND KINGS• It operates in 19 countries through its subsidiaries,

branch offices and representative offices.• In India, it has 255 points of presence covering 164

locations through a mix of 14 branch sales offices, 58 franchised sales shops and a mix of 185 General Sales Agents (GSAs) and Preferred Sales Agents (PSAs).

EXPEDIA• The company is headquartered in Bellevue, Washington,

with additional operations in nearly 70 offices across the globe.

PRODUCTTHOMAS COOK• Holidays, Foreign Exchange, Visa & Passport, Hotels , Flights and Insurance.

COX AND KINGS• Travel services, Luxury hotels and Visa & Passport services

EXPEDIA • eLong A leader in online hotel reservations in China• TrivagoA leading online hotel search company.• VenereThe online hotel reservation specialist in Europe.• CarRentals.comOffering a huge selection of cars, locations, and rental agencies.• Classic VacationsA top luxury travel specialist.• Expedia CruiseShip CentersOne of North America’s leading retail cruise vacation experts.• Expedia Local ExpertProviding in-market concierge services, activities and experiences.

• ExpediaOne of the world’s leading full service online travel brands.

• Hotels.com One of the world’s leading accommodation booking websites.• Expedia Affiliate Network (EAN)Powering travel bookings for thousands of active affiliates.• EgenciaA global full-service travel management company.• HotwireA leading discount travel site offering opaque travel deals.

PRICE

• Seasonal Pricing• Discounting • Package Deals• Commission• Last minute Pricing

PROMOTION

THOMAS COOK

PROMOTION

COX AND KINGS

PROMOTION

EXPEDIA

PEOPLE

• Employees – physical appearance, knowledgeable, pleasant and friendly, trained.

• The people who sell and service product are an extremely important part of tourism marketing. Friendly personal service and trained employees can make or break a tourism business.

• Customers are the direct receivers of the service.

PROCESS• There are different types of processes involved in running a

tourism business administration,training,planning and strategizingrecruitmentdistribution purchasing & 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

PROCESS

Booking

• Online • Face to face

Travel

• Specific destination• Pick Up

Service Delivery

• Accommodation• Destination visit

PROCESS STEPS FOR CUSTOMERS

PROCESS STEPS FOR PROVIDER

THOMAS COOKThomas Cook is committed to dedicating time and effort in the pursuit of an excellent standard of service for all our customers. In other words, exceptional service from exceptional people:• Proactive implementation of travel policy.• Responsive, accurate handling of travel arrangements.• Optimum use of travel expenditure.• Travel support and emergency assistance worldwide.• The management information essential to control travel costs.• Maximum value in supplier relationships.• Continuous assessment and improvement of our service, based on

quality principles and practices.• Efficient after sales service

COX AND KINGS• Best Brand for over 250

years and been operational non-stop since 1758.

• One Stop Travel Fulfillment Center (Online as well as Offline Fulfillment) for all Travel related services including a range of third party products

• Integrated Information Technology Platform to

offer centralized reservation systems for all business units

• Excellent Supplier Contracting Terms & Capabilities

• Strong online Presence

• Timely & Accurate MIS

• Knowledgeable Staff

• Support via BPO & Call

Centers

• Innovative Products Design and Creative Marketing

• Global Shareholder of Radius

EXPEDIA

• Expedia was voted the 2013 World Travel Award for World’s Leading

Online Travel Agency Website 2013-under the travel technology –

category where-in the nominations were adjudged on the parameters

of customer satisfaction and quality of service, overall business

performance, product innovation, staff relations and development,

CSR and contribution to local community, commitment to sustainable

policies, fulfillment of long-term corporate vision.

PHYSICAL EVIDENCETangible aspects – advertisementComplimentary giftsLocal aircrafts

EXPEDIA

COX and KINGS

THOMAS COOK

SWOT ANALYSIS OF TOURISM INDUSTRY IN INDIASTRENGTHS• India's geographical location• Rich culture heritage and colorful festivals.• A wealth of archeological sites and historical monuments.• Well known Indian hospitality

WEAKNESSES• Inadequate infrastructure to match the expectation.• Restrictive Airline Policy of the Government of India.• Overcrowding of popular tourist centre.• Inadequate marketing and information channels.•  Some places are inaccessible, especially in winter.

SWOT ..

OPPORTUNITIES• More proactive role from the government of India in terms of

framing policies.• Growth of domestic tourism.• Potential for private sector's investment in tourism projects.• Availability of high quality human resource.

THREATS• Strong Competition within states of India and abroad.• Economic conditions and political turmoil in other countries affects tourism• Terrorism is a major setback of the region.• Disorganized tourism development.•  Environmental factors also impose a threat.

Future of Tourism in India• International tourist arrival in India is expected to grow at a

Compounded Annual Growth Rate of 7.9%

• Indian outbound tourist departure is expected to reach 20.5 million by the year 2015.

• Domestic tourist visits is expected to increase by a Compounded Annual Growth Rate of 12.29%.

• Indian tourism foreign exchange earnings is also expected to grow at a Compounded Annual growth rate of 7.9%

Future of Tourism in India• The total market size of Indian tourism and hospitality sector

stood at US$ 117.7 billion in 2013 and is expected to touch US$ 418.9 billion by 2022.

• India is expected to receive nearly half a million medical tourists by 2015, implying an annual growth of 30 per cent.

• The number of medical tourists coming to India has registered a growth of 40 per cent in the past six months. 

• The inflow of medical tourists is expected to cross 45 lakh by 2015 from the current level of 25 lakh.

Future Of Tourism In India• The Government has allowed 100 per cent FDI under the

automatic route in the hotel and tourism related industry.

• The Ministry of Tourism, Government of India, has signed bilateral agreements/ memoranda of understanding (MoU) with 47 countries, a tripartite agreement between India, Brazil and South Africa and a multilateral agreement between India and Member States of Association of South East Asian Nations (ASEAN) for cooperation in the tourism sector.

• Cruise shipping is one of the most dynamic and fastest growing components of the global leisure industry. India with a vast coastline, and undisturbed idyllic islands can be a potential tourist destination for cruise tourists.

Future of Tourism In India• World tourist arrivals expected to increase by 43 million every

year on an average from 2010 to 2030.

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