PROJECT REPORT ON

“Customer perception towards SOTC Tours & Travels”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE COURSE

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

SUBMITTED BY

Ashish .A. Tagade

ROLL NO.: 30

BATCH: 2011-2013

UNDER THE GUIDANCE OF

PROF. Isha Namjoshi

EXCELSSIOR EDUCATION SOCIETY’S

K. C. COLLEGE OF ENGINERING & MANAGEMENT STUDIES &

RESEARCH

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Executive Summary

This project ‘Customer perception towards SOTC Tours & Travels was a part of winter project for

M.M.S. course which was carried out at SOTC,Thane. In today’s business reality we say that customer is

king which was the same reason for selecting this project. SOTC is a well known company in tourism

industry and has its customers spread across many parts of India.

From the financials of the company it was found that the company is doing very well but in the

current dynamic business environment it is very much necessary to change the business strategy with

time to avoid contingencies in business. Hence this project was selected to find out what perception

customers carry in their mind about SOTC. Other reasons for selecting this project are its ability to

reflect current satisfaction level of customers and overview of competition.

After the execution of project it was projected that the current mindset of customers do not

totally match with services provided by SOTC. The satisfaction level of customers was found to be good

but few major issues with customer satisfaction were projected. It was reflected that most of the

customers have issues with the destination management.We found that this might be because of the

fewer interactions between customer and company and not because of the service quality. On this few

suggestions and recommendation were provided to SOTC,Thane which will help them to continue

growing in Tourism industry with increased pace.

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Introduction to Tourism Industry:

Tourism is travel for recreational, leisure, or business purposes.The World Tourism Organization

defines tourists as people "travelling to and staying in places outside their usual environment for

not more than one consecutive year for leisure, business and other purposes". Tourism has

become a popular global leisure activity.Tourism is important, and in some cases, vital for many

countries.

The tourism industry is now one of the largest sectors earning foreign exchange. In the face of

many benefits, many countries have started assigning due weightage to the tourism industry in

their national development agenda.

Tourism is an industry that operates on a massively broad scale: it embraces activities ranging

from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international

tour operators. Originally, non-traditional industries such as tourism emerged as a solution to

strike a balance between ecology and industry.

It was recognized in the Manila Declaration on World Tourism of 1980 as "an activity essential

to the life of nations because of its direct effects on the social, cultural, educational, and

economic sectors of national societies and on their international relations." Tourism brings in

large amounts of income in payment for goods and services available, accounting for 30% of the

world's exports of services, and 6% of overall exports of goods and services. It also creates

opportunities for employment in the service sector of the economy, 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.

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The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. Tourism has become a popular global leisure activity.

In 2011, there were over 983 million international tourist arrivals worldwide,

representing a growth of 4.6% when compared to 940 million in 2010. 

International tourism receipts (the travel item of the balance of payments) grew

toUS$1.03 trillion (€740 billion) in 2011, corresponding to an increase in real terms of

3.8% from 2010. 

In 2011, international travel demand continued to recover from the losses resulting from

the late-2000s recession, where tourism suffered a strong slowdown from the second half

of 2008 through the end of 2009.

After a 5% increase in the first half of 2008, growth in international tourist arrivals

moved into negative territory in the second half of 2008, and ended up only 2% for the

year, compared to a 7% increase in 2007.

The negative trend intensified during 2009, exacerbated in some countries due to the

outbreak of the H1N1 influenza virus, resulting in a worldwide decline of 4.2% in 2009

to 880 million international tourists arrivals, and a 5.7% decline in international tourism

receipts.

The World Tourism Organization (UNWTO) forecasts that international tourism will

continue growing at the average annual rate of 4%.

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SPECIAL FORMS OF TOURISM

For the past few decades many forms of tourism are becoming more popular, particularly:

Agritourism

It involves any agriculturally-based operation or activity that brings visitors to

a farm or ranch. Agritourism has different definitions in different parts of the world, and

sometimes refers specifically to farm stays, as in Italy. Elsewhere, agritourism includes a

wide variety of activities, including buying produce direct from a farm stand, navigating

a corn maze, picking fruit, feeding animals.

Medical tourism 

It is defined as patient movement from highly developed nations to less developed areas

of the world for medical care by bypassing services offered in their own communities.

Medical tourism is different from the traditional model of international medical travel

where patients generally journey from less developed nations to major medical centers in

highly developed countries for medical treatment that is unavailable in their own

communities.

Cultural tourism (or culture tourism)

It is the subset of tourism concerned with a country or region's culture, specifically the

lifestyle of the people in those geographical areas, the history of those people, their art,

architecture, religion(s), and other elements that helped shape their way of life. Cultural

tourism includes tourism in urban areas, particularly historic or large cities and their

cultural facilities such as museums and theatres.

Pop-culture tourism 

It is the act of traveling to locations featured in literature, film, music, or any other form

of popular entertainment. Also referred to as a "Location Vacation".

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Religious tourism

Also commonly referred to as faith tourism, is a form of tourism, where people travel

individually or in groups for pilgrimage, missionary, or leisure (fellowship) purposes.

The world's largest form of mass religious tourism takes place at the annual Hajj

pilgrimage in Mecca, Saudi Arabia. North American religious tourists comprise an

estimated $10 billion of the industry.

Slum tourism

It is a type of tourism that involves visiting impoverished areas, which has become

increasingly prominent in several developing countries like India, Brazil, Kenya, and

Indonesia.[1] The concept began in poor sections of London and by 1884 had started in

Manhattan.

Wildlife tourism

It can be an eco and animal friendly tourism, usually showing animals in their natural

habitat. Wildlife tourism, in its simplest sense, is watching wild animals in their

natural habitat. Wildlife tourism is an important part of the tourism industries in many

countries including many African and South American countries, Australia, India,

Canada, Indonesia, Bangladesh, Malaysia and Maldives among many.

War tourism

It is recreational travel to war zones for purposes of sightseeing and

superficial voyeurism. War tourist is also a pejorative term to describe thrill seeking in

dangerous and forbidden places.

Educational TourismIt may involve travelling to an education institution, a wooded retreat or some other destination in order to take personal-interest classes, such as cooking classes with a famous chef or crafts classes.

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Garden TourismIt means visiting botanical gardens, famous places in the history of gardening, such as Versailles.

Gambling TourismThis tourism refers to tourism to Atlantic City, Las Vegas, Macau or Monte Carlo for the purpose of gambling at the casinos there.

Sports tourismSince the late 1980s, sports tourism has become increasingly popular. Events such as rugby, Olympics, Commonwealth games, Asian Games and football World Cups have enabled specialist travel companies to gain official ticket allocation and then sell them in packages that include flights, hotels and excursions. The focus on sport and spreading knowledge on the subject, especially more so recently, lead to the increase in the sport tourism.

Health TourismIt means usually to escape from cities or relieve stress, perhaps for some 'fun in the sun', etc. often to "health spas".

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Tourism Industry In India :

As per the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2021.

The Tourism and Travel Industry in India was very attractive and rich in opportunity for a number of reasons:

There was constant growth of 3-6%

Diverse natural beauty: over 4000 km of beach front, perennial glaciers, deserts, tropical

havens, temperate grasslands, mangroves, etc.

Over 15000 sites and structures that are over 500 years old, with the oldest structures

being well over 2500 years old.

A gastronomical delight with over 15 different cuisines that are well entrenched within

their respective geographies

Historical sites that cover all the major world religions.

A melting pot of cultural diversity within a generic commonality.

Contribution to the Economy :According to the Travel & Tourism Competitiveness Report 2011 brought out by the World Economic Forum, the contribution of travel and tourism to gross domestic product (GDP) is expected to be at US$ 187.3 billion by 2021.The report also states that real GDP growth for travel and tourism economy is expected to achieve an average of 7.7 per cent per annum over the next 10 years. Export earnings from international visitors and tourism goods are expected to generate US$ 51.4 billion (nominal terms) by 2021. The travel and tourism sector which accounted for 6.4 per cent of total employment in 2009 is expected to generate 40,037,000 jobs i.e. 7.2 per cent of total employment by 2021.

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Foreign Tourist Arrivals

Estimates of foreign tourist arrivals (FTAs) and foreign exchange earnings (FEE) are

important indicators of the tourism sector.According to the latest data released by the

Ministry of Tourism, FTAs during January 2012 were 491,000 as compared to 422,000 in

January 2011, an increase of 16.4 per cent. FEE in US$ terms during January 2012 were

US$ 1.21 billion as compared to US$ 941 million in January 2011, a growth of 29.1 per

cent.Moreover, to give a further boost to the tourist arrivals, the Indian Association of

Tour Operators (IATO) has drawn up plans to hold roadshows in the US, UK, European

Union nations and Australia in 2013 to hard sell India as a tourist hub.

Government Initiative

In the year 1991, the Government of India headed by Narasimha Rao decided to usher in

several reforms that were collectively termed as liberalisation of India. The reforms

progressed furthest in the areas of opening up to foreign investment, reforming capital

markets, deregulating domestic business, and reforming the trade regime.One such sector

was the Travel & Tourism Sector.The campaign ‘Visit India Year 2009’ was launched at

the International Tourism Exchange in Berlin, aimed to project India as an attractive

destination for holidaymakers. The government joined hands with leading airlines,

hoteliers, holiday resorts and tour operators, and offered them a wide range of incentives

and bonuses during the period between April and December, 2009.Euromonitor

International's Travel And Tourism in India report states that the Government of India

increased spend on advertising campaigns (including for the campaigns ‘Incredible India’

and ‘Atithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism

in India.

Bright future

The future of tourism in India is certainly bright but we do have a long road ahead.

Development of quality infrastructure will be the key to India's harnessing her full

tourism potential. The Ministry of Tourism has been very supportive to the fraternity

efforts, and now visa on arrival is slowly becoming a reality.India's tourism market is

showing signs of maturity, with state tourism boards luring the consumers through their

creative marketing campaigns, even the lesser marketed regions like Chhattisgarh, Orissa

and West Bengal are gaining ground for their authentic local experiences.

SOTC: An Overview:-

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Established in 1949 with just five employees at an office in Cawasji Hormusji Street, Mumbai, it has grown to become one of India’s largest travel companies. By the year 1968, the Company had moved to a much bigger office at Mint Road and was also counted as one of the top ten travel agents in Mumbai, with a turnover touching Rs 25 million.A major turning point came in 1976 when SOTC handled its first group tour to the US during the bicentennial celebrations. Within three years, SOTC had taken about 500 passengers to Europe, the US, Singapore and Japan. In 1981, came another breakthrough when SOTC Package Tours began active advertising, with the first ad hitting the newspapers.

Between the years 1983 and 1995, SOTC grew by leaps and bounds. It moved to new premises at Church gate, Mumbai, installed the first computer for sales and operations, and went through a management metamorphosis with a complete restructuring of the business into autonomous Strategic Business Units (Subs) with a state-of-the-art call centre. SOTC has been fulfilling the travel needs of Indians for over five decades now. It continues to seek out new and exciting destinations to offer to outbound travelers.SOTC’s outbound business operations broadly encompass Packaged Group Tours for Indians and Individual Holidays. SOTC World Famous Tours caters to those who seek comfort in group travel. It is widely acknowledged to be the most successful package tour brand in India.Recognizing the importance of language markets, SOTC also pioneered tours conducted in Marathi and Gujarati under the SOTC brand extensions: SOTC Bhraman Mandal and SOTC Gurjar Vishwadarshan.

SOTC - India's Leading Outbound Tour operator

SOTC is the Outbound Travel Division of Kuoni India and the country’s largest outbound tour operator. World Famous Tours is the flagship brand of SOTC, which pioneered the designing and marketing of escorted tours to cosmopolitan travelers in India. SOTC World Famous Tours has escorted over 3,00,000 travelers across the globe, for more than 50 years to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East. Being a 100% subsidiary of Kuoni Travel Holding, Switzerland – one of the world’s largest travel companies - SOTC leverages the advantage of the buying power and travel services to provide customers value-for-money packages. SOTC endeavors to bring alive customers dream holiday. To begin with, SOTC ensures that customer’s family travel safe, sure and secure with the finest Indian families.SOTC has a wide distribution network of 130 sales outlets and 3500 travel agents across India to retail our range of products and serve customers better.

SOTC – Voted The Best Outbound Tour Operator 2004, 2005 & 2006

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SOTC has been voted the Best Outbound Tour Operator 2004, 2005 and 2006 in India by the Galileo Express Travel & Tourism Awards Committee. The Galileo Express Travel & Tourism awards have been designed to give recognition to the trade for outstanding achievements during the year. The advisory board formulated the criteria for the award in consultation with the renowned audit firm, Deloitte Touche Tohmatsu, which used both a subjective and objective methodology that included a polling process. This award was based on various parameters of judgment and took into consideration factors including revenue generated, operational efficiency, perceived service levels, and the ability to retain and increase market share.

It is also significant to note that Kuoni India, the parent company of SOTC has won all the 3 top awards in the travel operations category at the prestigious Galileo Express Travel and Tourism awards for all its three core activities.Kuoni was presented the highly prestigious World’s Leading Tour Operator 2006 award ' World's leading tour operator ' at WTM, London in November 2005.

The World Travel awards, which are bestowed for exceptional services in the travel sector, have evolved into one the industry’s most important annual events over the past few years. The awards are voted on by thousands of travel – sector specialist from over 80,000 agencies in more that 200 countries. And winning one is clear confirmation of a company’s excellence within the travel sector.

SOTC Fact File

Kuoni came to India with a large investment plan. They did not want to go in for a Green Field Model which is form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. In addition to building new facilities, most parent companies also create new long-term jobs in the foreign country by hiring new employees. This is opposite to a brown field investment.

Kuoni Travel Holding, Switzerland, acquired 100% equity in SOTC on 22nd May 1997. SOTC has been a leader in all segments, namely Escorted Tours, Free Individual Travel, Special Interest Tours and Domestic Holidays amongst others and has emerged as Kuoni India’s key outbound travel brand.

Kuoni’s move to buy stake in SOTC has been a strategic one as the company wanted to be No.1 travel operator in India as soon as possible and acquiring a well established name like SOTC was definitely an added advantage. Moreover, being cash rich at that point of time helped Kuoni to grow inorganically. Since SOTC’s merger, the company has been on an acquiring spree (not Greenfield investment) to build its business strongly in Indian subcontinent.

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SOTC has been voted "Best Outbound Tour Operator" five times in a row by the Galileo Express Travel & Tourism Awards Committee. SOTC’s brand philosophy is "Expect More" that exhibits its commitment to offer superior value and services to its customers. Some of the lesser known facts about SOTC are:

SOTC was first travel group to create a tour around the Seven New Wonders of World.

It was SOTC which created the concept of a Holiday Bazaar.

In association with WorldCard, SOTC offers exclusive membership to esteemed clients.

In Switzerland, the town of Engelberg was renamed SOTC Indian Village in 1999.

In 2001, SOTC became the only Indian tour operator to be bestowed the prestigious

Friends of Thailand award.

The supplement Wow! which appears in The Times of India in Mumbai and New Delhi

is a first-of-its-kind initiative undertaken by a travel company. It is a co-ordinated effort

of SOTC to reach all Tourism Boards.

Cost Saver Tours were first introduced by SOTC.

Holiday Now Pay Later was an SOTC Initiative.

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SOTC Brands

1)-SOTC World Famous Tours

SOTC World Famous Tours is the flagship brand of SOTC, which pioneered the designing and marketing of escorted tours for cosmopolitan travelers in India. SOTC World Famous Tours has escorted over 3, 00,000 travelers across the globe for more than 30 years, to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100% subsidiary of Kuoni Travel Holding, Switzerland - one of the world's largest travel companies SOTC leverages the advantage of the buying power and travel services to provide customers value for- money packages. SOTC has built a reputation that it lives up to its promise to take Indians around the world, while making them feels completely at home, no matter where they are.

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2)-SOTC BhramanMandal

In 2002, SOTC Bhraman Mandal was launched exclusively for Maharashtrian, to cater to their specific needs and requirements. SOTC Bhraman Mandal offers 'All-inclusive' exciting package tour options to Europe, Far East, Australia and New Zealand. While designing the tours, every single need of the Maharashtrian is kept in mind - their culture, eating habits and likes and dislikes.Prominent features of SOTC Bhraman Mandal Europe and Australia tours are the Predeparture meeting, Travel Kit and an experienced Marathi speaking Tour Manager who accompanies them all the way from Mumbai to the destination and back. Within just five years of existence, SOTC Bhraman Mandal has become a household name amongst the Maharashtrian.

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3)-SOTC Gurjar Vishwadarshan

SOTC Gurjar Vishwadarshan was launched especially for Gujarati community residing in India, to cater to their needs of having a Pure Indian Vegetarian Meal with a Gujarati flavor, Gujarati speaking tour manager at your service right from India to India and traveling with the finest Gujarati families makes your holiday the most memorable and comfortable one. Gurjar Vishwadarshan launched in the year 2004 received an overwhelming response from the Gujarati's staying all over India. Since then it has been scaling heights year after year today in its 4th year of existence it has become a household name for Gujarati's and is fondly rembererd by Gujarati holiday goers, this has been possible because of all of those fellow Gujarati's who chose to travel with us.With the new positioning of our brand "Expect More" ....in Gujarati which means "Apeksha Thi Vadhare" we assure our patrons that every time they can just expect more with SOTC.

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4) - SOTC Do-it-Yourself Holidays

SOTC Do-it-Yourself Holidays caters exclusively to the needs and requirements of the discerning Free Individual Traveler. It offers a wide range of customized holidays that allows individual travelers the freedom to define their preferences of the destination, length of stay and pace of travelFollowing high-quality standards, SOTC Do-it- Yourself Holidays have ensured accommodation at some of the world's finest hotels allowing for proximity to city centre attractions such as shopping malls, pubs, cafes, restaurants and scenic delights. An individual traveler on SOTC Do-it-Yourself Holidays has the option to explore all the attractions of a single city. Or focus on all key cities of a particular country. They can even combine two to eight countries in their holiday, depending on their tastes, time and budget.

5) - SOTC Holidays of India

SOTC Holidays of India has something for every kind of traveler - be it families, youth, students, honeymooners, groups or individuals. SOTC Holidays of India offers packages that cover every conceivable tour requirement - whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break. SOTC Holidays of India offers an opportunity to visit and explore all the splendors of India through various categories of holiday packages. SOTC Holidays of India has categorized all holiday packages into Standard, First and Deluxe Class categories.

It also offers a wide range of customized holidays thereby giving individual travelers the complete freedom and flexibility to define their preference of the destination, length of stay and pace of travel.

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Vision, Mission and Objectives of SOTC

Vision Statement

“SOTC vision focuses on providing all travel and travel-related services to travelers from, within and to India”

Mission of SOTC

The mission of the SOTC is: to advance the sustainable development and management of tourism;

to creating best value for people: our customers, our employees, our shareholders and our business partners.

Objectives :

The Mission will be achieved by pursuing the following strategic objectives and associated actions:  Objective 1:

Assist tour operators in implementation of sustainable tourism through adoption of best practices in their internal operations and management of the supply chain, and in destinations, by -

Facilitating the exchange of best practices adopted to implement the principles for sustainable tourism and the Initiative’s Statement of Commitment

Developing new management tools and adapting existing ones, specific to the industry (EMS, ISO14001, LCA etc) for tour operators own operations, and for sustainable management practices in the supply chain.

Providing a platform for dialogue with other partners (eg. with destination authorities and stakeholders focused on implementing programmes for sustainable development in destination areas).

Involving tour operators in the relevant programmes of work of UNEP, UNESCO, and UNWTO.

Assessing progress made on a regular basis. Facilitating partnerships between members to address issues with a common voice.

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Objective 2:

Broaden the support for sustainable development among other players in the tourism sector, including of tourists by -

Cooperating with key stakeholders, including business partners, regional and national governments, NGOs and other groups (eg. ECPAT, Blue Flag, etc.) With a common agenda, on specific activities and projects.

Increasing the awareness of key players: tourists, other segments of the tourism industry, local communities and people, tourism trade associations, and local and national authorities.

Objective 3:

Create the critical mass of committed tour operators by -

Increasing the visibility of committed tour operators and creating the image of the Initiative as a world leader in the area of environmentally, socially and culturally responsible tourism (public and industry recognition).

Increasing membership of the Initiative. Establishing partnerships with other organizations that contribute to achievement of

these objectives, eg. By setting up national / regional focal points for the Initiative to engage in outreach activities.

Strengthening links with regions through tour operators’ associations and UNEP, UNESCO and UNWTO networks, where the Initiative is underrepresented at present.

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Keys to Success for SOTC

The keys to success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Their personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers. Hence their key success factors will include the following:

Excellence in fulfilling the promise: Intend to offer completely enjoyable, comfortable and informative travel excursions that will ensure that travelers are thoroughly satisfied and appreciative at the end of their trip.

Timely response to customers' requests: SOTC Cannot afford to delay their clients for whatever reason, as this will have a negative bearing on our image and reputation, including future business. Hence they need to be continually communicating with the client, including hotels and lodges so as to ensure that they are constantly available to the client meeting their expectations.

Solid and fruitful strategic alliances: Considering the nature of their services and our relative infancy on the market, SOTC should realize the importance of establishing and maintaining fruitful strategic alliances with various stakeholders, including hotels, lodges, and travel agencies, amongst others, so as be assured of a constant flow of customers, fulfilling their needs at every opportunity.

Marketing know-how: There will be a need to aggressively market SOTC business and the services they provide so as to be continuously at the top of our prospective clients minds. This will also act as a temporary deterrent for companies contemplating entering our market. Advertising shall be undertaken on a regular basis.

Strategic Areas of Focus

1. Maximize the return on public and private investments in tourism.

2. Drive year-round travel from visitors in our domestic target audience and lengthen their average stay by encouraging them to be destination-oriented in this state.

3. Drive year-round travel and lengthen the average stay from visitors from our primary international markets.

4. Provide leadership and support through collaboration with local, regional, national, tribal and private-industry tourism entities.

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Marketing Mix 8 P’s

PRODUCT

Product is the combination of tangible and intangible elements. The tourism product, which is mainly the destination, can only be experienced. The views of the location travel to the destination, the accommodation and facility as well as the entertainment at the destination all form the tourism product.

Thus it is a composite product combination of attraction, facilities and transportation. Each of these components has its own significance in the product mix and in the absence of even single components, the product mix is incomplete.

Services Offered by SOTC

Escorted tours

Customized holidays

Trade fairs

SOTC sports

Corporate tours

Special tours – Marathi tours, Gujarati tours, Monalisa Tours.

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4 I’s of Services-

Inflexibility

The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on a flight is fixed so it is not possible to meet sudden upsurges in demand similarly restaurants tables, hotels beds and flights seats remain empty and unused in periods of low demand.

Inventory / Perishability

It is related to the fact that travel products are intended to be consumed as they are produced. For example, an airline has seats to sell on each flight; a hotel has rooms to sell for each night. If the airline is not able to sell all its seats on its flight, or a hotel is not able to sell its rooms for the night then the opportunity to sell the product is lost forever. Service sector cannot keep inventory like products. To overcome this problem, the travel industry has come up with various marketing strategies. One is to overbook. An airline overbooks its seats to a certain extent in anticipation that even though certain customers do not turn up but the flight will be fully seated. Another strategy is multiple distributions. For example a customer can buy an airline ticket from an airline, tour operator or from a travel agent. The chances of perishability are reduced. If the tourist cannot visit the place, the opportunity is lost. Hence, this becomes one of its important characteristics.

Inconsistency

A general norm is that in Travel and Tourism industry the product or the package of the tourism can be standardized i.e. for example of 2 days 3 night in so and so hotel, but the actual experience of consuming this package is highly inconsistent. We hear a lot of travel stories which becomes a portrayal of a lot of bad experiences for example the tourist guide may not be good, the hotels lodging and boarding was bad etc. Therefore there is high level of inconsistency prevailing.

Intangibility

Travel products cannot be touched as they include flight experience on an airplane, cruise on an ocean liner, a night’s rest in a hotel, view of the mountains, a visit to a museum, a good time in a night club and much more. These products are experiences. Once they have taken place they can only be recalled and relished.

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Main Focus In Product

Sr.No. BENEFIT MEANINGWITH RESPECT TO THE

SOTC

1CORE

BENEFITThe fundamental benefit or service that the customer is buying.

Traveling.

2BASIC

PRODUCTBasic, functional attributes. Ticketing, hotel reservation.

3EXPECTED PRODUCT

Set of attributes/conditions the buyer normally expects.

Customer friendliness, good food.

4AUGMENTED

PRODUCTThat meets the customer’s desires beyond expectations.

Prompt services, comfortable & convenient trip, spectacular sights & music.

5POTENTIAL PRODUCT

The possible evolution to distinguish the offer.

Totally customized tour packages, A grade service at every stage.

Table 1.1 Benefits given by SOTC

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Potential

Augmented

Expected

Basic

Core

Price

Pricing in tourism is a complex process. Pricing includes the prices of other services like Air travel, Bus, Railways, Hotels, etc. All are included in tourism package. Pricing also depends on the Geographic location of the destination.

Pricing also depends on Seasonality. Seasonality is the most important factor in pricing. To match demand and supply tourist managers try to get either discount. E.g. Taj is the tourist attraction in India. Pricing is also based on competitors pricing. Pricing is also subject to government regulations. E.g. Air price changes tourism package also changes, if Hotel charges change then also tourism package changes.

Pricing of the tourist product is a complex matter because of its composite nature. Geographical location of the destination affects the pricing decision. At the same time, seasonality factor and varying demand cannot be overruled. The objective of pricing in any other firms is to fetch a target market share, to prevent competition, and to take care of the price elasticity of demand.

A very important way, in which SOTC responded to their highly complex pricing circumstances, is to operate at two levels.

The first level is corresponds with the marketing strategy, which concerns with the product positioning, value for the money, long run return on investments etc.

The second level corresponds to the marketing operations or tactics where the prices are manipulated to match the current demand and competition.

Physical Environment

Physical Environment of SOTC is good. All the employees work collaboratively as a team. They are motivated by senior executives & rewarded in the form of incentives for their performance. Team work plays an important role in their success.

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Place

Different distribution strategies can be selected for Tourism marketing. Tourism as a product is distributed as a travel. Internet is also used widely. There is an also small agent spread all over the town who plays a role of place. Large travel companies like Thomas Cook, Cox & Kings, SOTC, etc they act as a wholesalers and these wholesalers also act as a retailer. The two major functions performed by the distribution system in tourism marketing are:

To extend the number of points of sales or access, away from the location at which services are performed or delivered

To facilitate the purchase of service in advance

Different distribution strategies are selected for Tours marketing by SOTC. There are also small agents (who have taken franchise of SOTC) spread all over the town/country who also play a role of place. SOTC act as wholesalers and also act as a retailer. The latest mode of reaching the customers is through Internet that is SOTC has its own website from where information on the tours can be procured, direct booking can be done for which the payment can be made through the credit card. SOTC also has its own offices from where booking can be done.

Franchises Offices in all major cities of India 347 offices in India.

Tie Ups Flightraja.com (VIA is a Trademark of Flightraja.com) Travel boutique online. Premium Ticket hub (Sports Tourism)

Internet Booking of Packages and Tickets.

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. For SOTC , Elements Such as quality and attractiveness of décor, effective layout of establishment, surroundings and quality of promotional materials are all important.

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Promotion

Advertising and sales promotion in Tourism can be very effective when supplemented by publicity and personal selling. They use electronic, print all sorts of media they use; and it is highly promoted industry. Public or PR (Public Relation) plays an important role in tourism. It is also through recommendation of friends and relatives this is a biggest promotion.

Creation of awareness is an important factor in the formulation of marketing mix for the tourism industry. The promotion task simplifies the activities of informing, persuading and influencing the decisions of potential tourists. The promotion mix plays a vital role as the users of service feel high degree of involvement and uncertainty about the product and their role in buying process.

Some of the important aspects of promotion are:

Print

Electronic Ads

Sales Promotion- EMIs

Publicity/PR

Word of mouth, personal selling, telemarketing

Exhibitions/Trade Fairs

Tie ups with Yash Raj Films, Experiencing the Magical moments of Yash Raj Films with

SOTC.

SOTC appointed as the Tour Partner to Kingfisher Airlines for the DLF IPL T20.

Word-of-mouth is a very important tool of promotion in tourism. Research shows that about 80% of the tourist visited different places on the persuasion of their friends and relatives and also their own judgments. SOTC uses electronic, print and all sorts of media as tourism is a highly promoted industry. SOTC gives printed ads in “The Times of India” mentioning the special tours in it with the special prices offered by them. Brochures are another form of communication provided by SOTC to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the images and positioning of the product and the organizations.

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People

It plays a most important part in tourism. In people local people are very important, that how they treat tourist. The travel agents, guides, staff of travel companies, sales staff, etc they are the people. Travel Company also like Railways, Air, etc. is included in people. Normally a tourist assures a tourism quality like hotels, Travel Company.

In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. Hence it is imperative that they have to be at their best at all times. Travel guides especially, are expected to have a lot of patience, good sense of humor, tact to transform the occasional tourists into habitual ones, thorough knowledge of the places, linguistic skills etc.

Service Marketing Triangle

SOTC`S PEOPLE MIX-

Includes travel agents, tour operators, tour guides et al

Locals are employed

Exhaustive training is provided

2900 employees through its 347 offices and caters to 3 million customers.

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Company

Employees Customers

TrainingMotivatingImbibing the values

4Ps

Employee skills

Process

27

Customer Enquiry/Reaching

the customer

Negotiating the

TermsExplaining the details

Completion of customer

formalities and document

submission

-------------------------------- Line of Interaction--------------------------------

Air, hotel reservations as

per needs

ItineraryArrange-

ments

Travel/Journeyto destination

Maintaining records and follow up through CRM

Itinerary

Confirmation

-----------------------------------Line of Internal Control/Records--------------------

The operation process of the tourism firm will depend on the size of the tourism firm. The sequential steps involved in the delivery of the SOTC products are:

Provision of travel information --- The information regarding the travel is provided at a convenient location where the potential tourist seeks clarification about his proposed tour.

Preparation of itinerates------ SOTC prepares its composition of series of operations that are required to plan a tour.

Liaison with providers of services--- Before any form of travel is sold over the counter to a customer; SOTC enters into the contracts with the providers of various services including transportation companies, hotel accommodation, coaches for local sightseeing etc.

Planning and costing tours------ Once the contracts and arrangements are entered into, then the task of planning and costing the tour, this will depend on the tour selected as well as individual requirements.

Ticketing----- The computerized reservation system has in recent years revolutionized the reservation system for both rail and air travel. SOTC also provides the online ticket booking facilities to its customers, which further leads to time saving process for it`s customers.

Provision of foreign currency and insurance--- SOTC in case of foreign travel also provide foreign currency as well as insurance to it`s customers.

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Market Segmentation

29

Indian travel market can be classified into two broad categories

1) International Travelers- Those crossing International borders2) Domestic Travelers - Those travelling within India.

International Travelers can be classified as Inbound Travelers (those who travel into India from Overseas) and Outbound of India (who travel internationally)

Inbound market is further segmented into six broad categories

1. Holiday and sight seeing.2. Business travelers3. Conference attendees 4. Students5. Visiting friends6. Relatives and others

Targeting:-

Such segmentation is useful when deciding the offerings to target a particular segment. For example,

The mass market consists of vacationists that travel in large groups and prefer all-inclusive tours. They are generally conservative.

The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This group includes pensioners and retired people.

The individual market consists of chairmen, senior executives, etc.

As the lifestyle changes, consumption of services might change. For example, a newly married couple might prefer romantic holidays, but once they have children they would prefer family vacations where there are plenty of activities to entertain kids. Teens and youth might prefer adventure holidays whereas senior citizens would probably prefer more relaxing vacations.

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PEST Analysis For SOTCEnvironmental influences can be analyzed by using the PEST analysis.

PoliticalThe political factors are the main driving force of the industry. The Indian tourism industry is built on the backbone of Government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry, the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government.

The major reason as to why tourists visit India is for the vast and rich heritage that our country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges high rates of taxes on the luxury and the star category hotels and this has always been a cause of disagreement between the hotel associations and the Government. There are many areas where the growth of tourism has not been rapid or has seen dramatic fall because the political environment has not been conducive. Examples are the North East for the former and Kashmir for the latter. The neglect of the Government in developing the North-East has led to a situation where there is practically no

tourism in the seven states.

Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual decimation of the flourishing tourism industry. However, there has been a change in many of the policies of the Government with regard to the tourism industry. The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states.

Euromonitor International's Travel And Tourism in India report states that the Government of India increased spend on advertising campaigns (including for the campaigns ‘Incredible India’ and ‘Ahithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism in India. The ministry promoted India as a safe tourist destination and undertook various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations. 

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Economic:

The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world. Since we are concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has led to a tourism boom the world over and India has been no exception. There have been more people coming into the country with more cash than ever before. This has lead to an increase in the demand for better hotels. People who previously used to come to the country on a shoestring budget and hunt around for the cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in the number of hotels in the country. However, an increase in spending does not only limit itself to accommodation. The increase in the spending is also evident in the increase in the number of people traveling by air. Even the number domestic tourists traveling by air has dramatically gone up.

A study Conducted by Ministry of Tourism about the Foreign tourist arrivals in India. Tourism Industry is growing over the years.

Table 1.2 Foreign tourist arrivals in India

Month 2010 2011 2012 % change(2011/2010) %change(2012/2011)Jan. 459489 535631 591337 16.60% 10.4Feb. 439090 501692 561393 14.30% 11.9March 391009 472494 541478 20.8 14.6April 309308 350550 384203 13.4 9.6May 255008 277017 200840 8.6 8.6June 278320 310364 340159 18.5 9.6July 337332 399866 429856 17.8 7.4August 304387 358446 391423 1.3 9.2September 297891 301892 330874 13.6 9.6October 391399 444564 452566 20.3 1.8November 442413 532428 521247 10.2 -2.1December 541571 596560 521990 14.3 -12.5

Source :- Ministry Of Tourism

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Social:Tourism was always looked upon as something that led to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state. This had a ripple effect on the country. People became cautious, especially of the international tourists.

However some places such as Kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them.

In addition, tourism as a form of recreation has really caught on. People themselves have started traveling and are willing to travel to a place that is out of the way and exotic. While traditionally traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for adventure tourism and also visit places that might be exotic and cannot really be called hospitable. For example, now places like Leh and Lakshadweep are mentioned in the same breath as Goa or Kashmir.

Technology:Although technology does not seem to be a major influence at first glance, it plays a major part in the promotion of a place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Improved technology in the field of communication at cheaper costs has resulted in many remote and inaccessible areas of the country getting connected to the rest of the world. This connectivity has made these places visible to the world. Better communication means access to media.And that is very important if any place wants to be on the world touristmap.

Similarly online ticket booking and better transportation facilities have lead to a dramatic increase in the number of tourists visiting any parts.

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SWOT Analysis for SOTC

Strength-

1.India`s largest outbound tour operator.Offices in all major cities of India.2.Tie ups with other tour operators and travel agents across India.3.Effective promotional campaigns like Experiencing the Magical moments of Yash Raj Films with SOTC.4.Internet booking of tickets and packages.Cost Saver tours designed by SOTC, keeping in mind the budget of the traveler, without compromising on sightseeing and basic holiday needs.5.Created new markets through innovative packages namely `BhramanMandal` dedicated to Marathi speaking population and `Gurjur Vishwadarshan` brand dedicated to Gujarati speaking population.

Weakness-

1.Not Focusing on Rural areas and Indian railway networks2.Feedback system exists for namesake.3.Ineffective customer services.4.Lack of corporate offices and small city Offices across the nation

Opportunities-

1.Increase in NRI Population2.Increase in per capita income.3.Increasing trend of exploring India4.Increase in online booking 5.Increase of Government support for tourism.6.Increase in outbound International 7.Traveler Market 8.Increase in number of tourists for upcoming sports events in India like Commonwealth Games, 2010 and Cricket World Cup, 2011.

Threats-

1.Economic conditions2.Security 3.New entrants4.Local Travel Agents and travel companies.5.Competitors

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PORTER’s Five Forces Model for SOTC

35

1. Threat of New entrants

Lowered consumer search costs and decreased switching cost open up a market for Potential new entrants , this reduces the entry barrier for new companies by opening the distribution channel and Capital requirement

Internet is one of possible bye pass instrument through which new entrants can enter the market, this can reduce entry barrier for new entrants.

2. Rivalry Among Existing Firm within the Industry

For SOTC biggest rivalry in India is From Cox and Kings , Thomas Cook. The Internet brings many more companies into competition with one another by

expanding geographical markets and reduce entry barrier, it can raise the rivalry within the industry and increase the pressure for price discounting. For Example Makemytrip.com, Travelguru, Yatra.com etc.

3. Power of Supplier

By reduced entry barrier and increasing number of competitors the power of supplier will increase.

4. Power of Buyer

The reduced Switching costs of Buyer also increase the bargaining power of buyer.

The customer can easily compare different prices and gain knowledge about products, thus prices becomes the most important criterion.

5. Threat Of Substitutes

Similar Products and services offered by the competitors at cheaper rates. Internet tourist sites like makemytrip.com, yatra.com etc. offers new possibilities and

instruments to meet customer needs by offering new products and services which could substitute existing ones.

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Marketing Plan of SOTC (Business or Family Tour) –

Vision-

“SOTC vision focuses on providing all travel and travel-related services to travelers from, within and to India”

Mission and objectives-

to advance the sustainable development and management of tourism;

to creating best value for people: our customers, our employees, our shareholders and our business partners.

4P’s of Marketing Plan-

Product- SOTC tour offers following services - Pick and Drop services would be provided at various places from house of

customer to airport i.e. Mumbai, New Delhi,Kolkata Jalandhar, Chandigarh etc. Boarding and lodging. Tour guide (optional). Arrange all transportation & accommodations during the tour.

Place- Customers can buy tickets and package from the following places-

Online booking at SOTC.in

Local tour operators and travel agents.

SOTC branches and outlets.

Tie up with SBI and ICICI Banks for the sale of tickets.

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Promotion- There are various promotional campaigns through which SOTC can promote this tour like-

Advertisements on all leading TV channels and all radio channels .

Brochures and pamphlets would be distributed along with newspapers.

Exhibitions/Trade Fairs.

Segmentation- AGE GROUPS- 3 years and above.

Geographical- Across the Globe.

High Income Group & Middle Income Group people.

Research Methodology

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Research methodology is a careful investigation for inquiring in a systematic method and finding solution of a problem. It comprises the defining and redefining of problem formulation hypothesis, collecting and evaluating data, making detection and reaching conclusion.

Scope Of StudyThe scope of this study is to understand the needs of the travellers and make travel houses competent with world class services.

Purpose of ResearchTravel and Tourism Industry provides employment and generate revenue for many economies across the world. India is in the initial stage in this industry. It has the potential to emerge as one of the top 10 favourite tourist destinations of the world within next 3 years. (Source, World Travel and Tourism Council website) With this, there is a rise in Travel Management Organisations in recent years. With competition in mind, there is always a race to attract more customers. This study was initiated to explore the various dimensions of the market and identify new areas where SOTC Tours can effectively position its services, based on consumer perceptions and needs.

Sampling TechniqueA random sampling technique was used to collect data from the respondents. A random sample is a sample selected from a population in such a way that every member of the population has an equal chance of being selected and the selection of any individual does not influence the selection of any other.

SampleA sample is a representative part of the population. Consumer survey conducted by

Personal interviews with the help of senior executives of SOTC,Dadar.

Sample Size

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Sample size denotes the number of elements selected for the study. For the present study,100 respondents were selected at random who are the customers of SOTC.

Sources Of DataThe study was based on the mix of primary and secondary sources of information. Primary source comprised of surveys and personal interviews with regular customers of SOTC, where as Secondary Source was information from websites of SOTC Tours & Travels,published data from Journals, articles of Tourism and Hospitality management, and other publications in related areas.

Objectives

Whether the person’s income influence his choice of opting for a particular holiday package.

To understand the quality of services maintained by SOTC.

To determine the effectiveness of promotional campaigns.

To evaluate overall performance of SOTC.

Analysis & Interpretation- Test Of Hypothesis using CHI-SQUARE TEST

40

Hypothesis are of two types:-1)Null Hypothesis (H0) 2)Alternate Hypothesis(H1)

Here Chi-Square Test is carried out to check whether income of a person affects their decision to choose a holiday package.

Hypothesis:

H0: there exists no relationship between salary & type of holiday package availed.

H1: there exists relationship between salary & type of holiday package availed.

Table 1.6 monthly_income * packages_availed Cross tabulation

Count

packages_availed

Total1 2 3 4 5 6 7 8

monthly_income

1 2 1 0 0 2 4 1 0 10

2 6 0 3 1 1 1 1 8 21

3 8 2 6 3 4 3 3 1 30

4 10 2 4 2 3 11 3 4 39

Total 26 5 13 6 10 19 8 13 100

Conclusion – As the significance level is 0.089 which is less than 0.10 at 21 degree of freedom the chi-square test is showing association between income & holiday package availed at 90% confidence level null hypothesis is rejected & alternative hypothesis is accepted.

As the significance level is 0.061 & is between 0.4 to 0.0 there exists a weak between income & holiday package availed.

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Table 1.7 Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 30.136a 21 .089

Likelihood Ratio 31.802 21 .061

N of Valid Cases 100

Symmetric Measuresa

Value

N of Valid Cases 100

Data Presentation & Statistical Analysis

Q.1) Which mode of travel do you prefer?

a)air b)land c)sea

(Purpose of the question – to know which mode of travel most of the customers prefer.)

Chart 1.1 Mode of travel

77%

8%

15%Air Land Sea

Inference – Most of the customers prefer traveling by air route i.e by plane. 77% respondents said that they prefer air route as it is fast way to reach where they want to reach,15 % respondents prefer travelling by sea on cruise & 7% by train.

Conclusion – The above inference helps us to understand that since there is a growing population of DINKS (double income no kids group ) people are now moving towards affluent & comfort living.Also the airlines these days provide their seats on competitive prices as against other modes of transport.

42

Q.2) Which travel do you do ?

a) Inbound b)out bound c)both

(Purpose of the question – to know which type of travel does the customer do i.e inbound, outbound or both.)

Chart 2.2 Type of travel

16%

28%56%

Inbound Outbound Both

Inference – Most of the customers do both inbound & outbound travelling.56% of respondents do both inbound & outbound travelling.28% of respondents do only outbound travelling & 16% do only inbound travelling.

Conclusion - The above inference helps us to understand that people are doing inbound & outbound travelling for either business purpose or to spend holidays with family & friends.

Q.3) What is the purpose of your tour ?

43

a) Business b)Personal Leisure

(Purpose of the question – to know the customers are travelling for business purpose or for personal Leisure.)

Chart 1.3 Purpose of travel

63%

37%

Business Personal Leisure

Inference – Most of the customers are travelling for business purpose.63% of customers are travelling for business purpose & remaining 37% customers are travelling for personal leisure.

Conclusion - The above inference helps us to understand that people are travelling for business purpose I order to expand business globally, facilitate import export activities.Also people are travelling to other nations in order to explore new destinations & places for enjoying holidays or for educational purpose.

Q4.) How often do you travel in a year?

44

a)1-2 b)3-5 c)5-10 d)more than 10

(Purpose of the question – to know how often the customers travel in a year.)

Chart 1.4 Frequency of travel in a year

12%

29%

38%

21%

1-2 times 3-5 times 5- 10 times more than 10 times

Inference - Most of the customers travel more 5-10 times in a year.38% of customers travel 5-10 times in a year,29% of customers travel 3-5 times in a year,21% customers travel more than 10 times in a year and 12% of customers travel 1-2 times in a year.

Conclusion - The above inference helps us to understand that how frequently people are travelling in year for business purpose or for personal Leisure.

Q5.) What’s your monthly income?

a)<25,000 b)25,000-50,000 c)50,000-75,000 d)> than 75,000

45

(Purpose of the question – to know what the monthly income of the customer is & accordingly which holiday package is availed by them.)

Chart 1.5 Monthly income of customers

10%

21%

30%

39%

< 25000 25000-50000 50000-75000 >75000

Inference -Most of the customers have monthly income more than 75000rs.39% of customers have monthly income, 30% of customers have monthly income 50000-75000, 21% of customers have monthly income 25000-50000, 10% of customers have monthly income less than 25000.

Conclusion - The above inference helps us to understand that depending upon the monthly income of people there spending habit on travelling.

Q6). How many members are there in your family?

a) 2 b)3 c)4 d) more than 4

(Purpose of the question – to know how many members are there in the family of customer so

46

that he may choose the holiday package accordingly.)

Chart 1.6 Members in a family

45%

23%

15%

17%2 3 4 more than 4

Inference - Most of the customers have 2 members in their family.45% members have 2 members in their family,23% members have 3 members in their family,17% members have more than 4 members in their family,15% members have 3 members in their family.

Conclusion - The above inference helps us to understand that depending upon the members in the family what type of holiday package is availed by the people.

Q7.) Which packages have you availed?

a)Business tour b) Adventure Holidays c)Heritage Holidays

47

d)Hill Station e)Honeymoon Holidays f)Luxury Holidays

g)Wildlife Holidays h)Religious Holidays i)Other

(Purpose of the question – to know which type of holiday packages is availed by customers so that make their holiday experience better by knowing their choice.)

Chart 1.7 Type of holiday package availed by the customers.

26%

5%

13%6%10%

19%

8%13%

Business adventure heritage hill station honeymoonluxuary wild life religious other

Inference - most of the customers have availed business tour.26% customers have availed business tour, 19% customers have availed religious & heritage holidays,13 % customers have availed luxury & honeymoon holidays, 10% customers have availed wildlife holidays,8% customers have availed hill station holidays,5% customers have availed adventure holidays.

Conclusion - The above inference helps us to understand that the type of holiday package availed by the people. Earlier there were few types of packages availed by the people like family holidays, honeymoon holidays, luxury holidays, religious & cultural holidays etc.But now a days people are going for special forms of holidays like adventure holidays, wildlife holidays.pop culture touism,gambling tourism.

Q8) What kind of accommodation do you choose?

a)Hotel b)Camp site c)Apartment d)Marina

48

Purpose of the question – to know which type of accommodation is preferred by the customers so that arrangements can be made accordingly.

Chart 1.7 Type of accommodation

70%

15%

7%

8%

hotel camp site apartment marina

Inference – Most of the customers prefer hotel for accommodation.70% of customers prefer hotel for accommodation,15% of customers prefer camp site for accommodation,8% of customers prefer marina for accommodation,7% of customers prefer apartment for accommodation.

Conclusion - The above inference helps us to understand that people are more focused about the accommodation facilities. Hotel is the most common type of accommodation but in order to enjoy natural environment people are looking for other options like camp site accommodation facility & accommodation facility near coast side.

Q9.) During last year in which month your travelling frequency was high?

a)Jan b)feb c)mar d)apr

49

e)may f)june g)july h)aug

i)sep j)oct k)nov l)dec

(Purpose of the question – to know during which month of the year customers travel more.)

Chart 1.9 Travelling frequency month wise

Jan-Mar Apr-June July-Sept Oct-Dec0

5

10

15

20

25

Inference – Most of the people travel during the month of December.21% of customers travel during the month of December,17 % of customers travel during the month of may,15 % of customers travel during the month of August,12 % of customers travel during the month of April,9 % of customers travel during the month of november,7 % of customers travel during the month of March,5 % of customers travel during the month of July , 3% of customers travel during the month of, % of customers travel during the month of February ,June & October 1 % of customers travel during the month of January.

Conclusion - The above inference helps us to understand that people travel more as per the needs or season during certain months in a year.

Q10).Brands & services of SOTC are?

a.excellent b.good c.average d.poor

50

(Purpose of the question – to know what customers feel about SOTC brands & services provided by them.)

Chart 1.10 Brands & services of SOTC

15%

50%

25%

10%

Excellent Good Average Poor

Inference – Most of the customers feel that brands & services of SOTC are good.50% feel that brands & services of SOTC are good,25% feel that brands & services of SOTC are average,15%feel that brands & services of SOTC are excellent,10% feel that brands & services of SOTC are poor.

Conclusion - The above inference helps us to understand that people are more conscious about the brand & services offered to them.

Q11) From where you came to know about SOTC?

a)television b)radio c)hoardings d)internet e)others

51

(Purpose of the question – to know from which source customers came to know about SOTC.)

Chart 1.11 Source

10%

7%

13%

47%

23%

television radio hoardings internet others

Inference – Most of the customers came to know about SOTC from Internet. 47% of the customers came to know about SOTC from internet, 23% of the customers came to know about SOTC from others,13 % of the customers came to know about SOTC from hoardings, 10% of the customers came to know about SOTC from television,7% of the customers came to know about SOTC from radio.

Conclusion - The above inference helps us to understand that people how effective are the marketing activities carried out by the different companies to attract people & through which medium people come to know more about their company.

Q12.)do you know SOTC is ISO 9001 Certified?

a)Yes b)No

52

Purpose of the question – to know whether the customers are aware that SOTC is ISO Certified or not.

Chart 1.12 SOTC ISO Certified

76%

24%Yes No

Inference – Most of the customers are aware that SOTC is ISO Certified.76% of the customers are aware that SOTC is ISO Certified,24% of the customers are not aware that SOTC is ISO Certified.

Conclusion - The above inference helps us to understand that people now a days are more concerned about the quality & standards.

Q13.Discounts & offers by SOTC are?a.excellent b.good c.average d.poor

53

(Purpose of the question – to know what customers feel about discounts & offers given by SOTC.)

Chart 1.13 Discounts & offers of SOTC

16%

25%57%

2%

excellent Good Average Poor

Inference – Most of the customers feel that discounts & offers given by SOTC are average.57% of the customers feel that discounts & offers given by SOTC are average, 25% of the customers feel that discounts & offers given by SOTC are good, 16% of the customers feel that discounts & offers given by SOTC are poor, 2% of the customers feel that discounts & offers given by SOTC are excellent.

Conclusion - The above inference helps us to understand that people are attracted towards discounts & offers given by a company.

Q14) How would you rate your level of satisfaction with regard to what SOTC has to offered?1) Very unsatisfied 2) Unsatisfied 3)Somewhat satisfied 4) Satisfied 5)Very Satisfied

54

(Purpose of the question – to know whether the customers are satisfied with the following services provided by SOTC.)

Factor 1 2 3 4 5Air TicketingRail Ticketing

Destination ManagementSafety

Chart 1.14 Satisfaction of customers

74%

26%

Air Ticketing

Satisfied unsatisfied

82%

18%

Rail Ticketing

satisfied unsatisfied

72%

28%

Destination Management

Satisfied unsatisfied

91%

9%

Safety

satisfied unsatisfied

Inference – Most of the people are satisfied with the services of SOTC.74% of customers are satisfied with the air ticketing services while 26% are not satisfied.82% of customers are satisfied with the air ticketing services while 18% are not satisfied.72% of customers are satisfied with the air ticketing services while 28% are not satisfied.91% of customers are satisfied with the air ticketing services while 9% are not satisfied.

Conclusion - The above inference helps us to understand that people are more concerned about the services provided by a company.

Q.15) Do you feel that SOTC provide value for money ?

55

a)strongly agree b)agree. c)disagreed. d)strongly disagree

(Purpose of the question – to know whether SOTC has provide value for customer’s money.)

Chart 1.15 Value for money

12%

60%

20%8%

strongly Agree agree Disagree Strongly Disagree

Inference – Most of the customers agree that SOTC has provided value for their money.60% of the customers agree that SOTC has provided value for their money,20 % of the customers disagree that SOTC has provided value for their money,12% of the customers strongly agree that SOTC has provided value for their money,8% of the customers strongly disagree that SOTC has provided value for their money.

Conclusion - The above inference helps us to understand that people are happy when they feel that particular product or service has provide value for money.

Table 1.8 Gender of the respondents

56

Gender No of respondents

Male 88

Female 12

Interpretation:

The above table is showing the gender of the respondents those who participated in the survey.

Chart 1.16 Gender of the respondents

88%

12%

Male Female

Conclusion:

Above 88% of respondents of the survey were male customers and there were only a few female respondents.

Table 1.9 Age of the respondents

57

Age Group No of respondents21-30 2731-40 3541-50 1851-60 1260-71 8

Interpretation:

The above table is showing the age categories of the SOTC customers who participated in the survey.

Chart 1.17 Age of the respondents

27%

35%

18%

12% 8%

21-30 31-40 41-50 51-60 61-70

Conclusion:

About 35% of the participants of the survey were between 31-40 age group and second most participants were between 21-30 age group. There were only 8 respondents between age group of 61-70.

Table 1.10 Education of respondents

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Education No of respondentsGraduate 33

Post Graduate 47Professional 20

Interpretation:

The above table is showing the education of the SOTC customers those who participated in the survey.

Chart 1.18 Education of respondents

33%

47%

20%Graduate Post graduate Professional

Conclusion:

Most of the customers of SOTC participated in the survey were Post graduates they constituted 47%.There were 33% who were Graduates and the 20% were professionals.

Table 1.11 Marital status of respondents

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Marital Status No of respondentsMarried 77

Unmarried 23

Interpretation:

The above table is showing the marital status of the SOTC customers those who participated in the survey.

Chart 1.19 Marital status of respondents

77%

23%Married Unmarried

Conclusion:

Most of the customers of SOTC participated in the survey were married they constituted 77%.There were 23% who were not married.

Table 1.12 Employment status of respondents

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Employment status No of respondentsGovernment 12

Private 69Self employed 11

Retired 8

Interpretation:

The above table is showing the employment status of the SOTC customers those who

participated in the survey.

Chart 1.20 Employment status of respondents

12%

69%

11% 8%

Governemt Private Self Employed Retired

Conclusion:

The majority of the customers of SOTC participated in the survey were from private sector they constituted 69%.There were 12% who were from government sector,11% were self employed & 8% were retired personnel.

Project Findings And Recommendations-

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Findings

Through this project we came to know about the current scenario of tourism industry in India with respect to the world.

We also came to know about SOTC, it`s brands.

How SOTC uses the 8P`s of marketing and how it segmented the market.

This project also tells us about the 4 I`s of services in tourism industry, PEST analysis,

like how various sectors of environment affects the tourism industry, SWOT analysis of SOTC.

Also we came to know about customers perception towards SOTC that most of the

customers are satisfied with the services provided by SOTC.

Recommendations

In spite of having so many strengths, SOTC also have so many weaknesses like shortage of branches and offices across India, ineffective customer services, not focusing on rural areas and Indian railway network.

In order to avoid any inconvenience to its customers, it should open new branches, more

effective online ticket booking facilities and focus on small cities and towns.

SOTC should make proper food arrangement like while traveling many people prefer

Indian food only & many times this arrangement is not done.

Through porter`s five forces model we have learned about the external environment of

SOTC, like rivalry among competitors, threat of new entrants in tourism industry, it should focus on its online ticket booking facilities to restrict online tourism provider like makemytrip.com, yatra.com.

SOTC should make proper arrangement & schedules for air ticketing, rail ticketing,

destination management & safety for its customers as some of them are unsatisfied with these services.

.

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Limitations of Study

No research is without limitations, but their number can be reduced to achieve accuracy. The survey conducted within the limited period, so shortcomings may be expected.

The respondent’s personal bias is uncontrollable. The finds of the survey is strictly based

on responses of the respondents.

It is difficult to find the euthenics be true, so they are assumed to be true.

It was difficult to find respondents as they were busy in their schedule, and collection of

data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

The respondents were not comfortable; they showed non-cooperative approach and

rude behavior while revealing their information. Some respondents responded half-heartedly and gave incomplete information.

Conclusion

The different information or benefits derived from the in-depth study of the above-mentioned information sources are as follows:

Consumer behaviour and perception study; it helped to know that what actually is

consumer behaviour and what are the factors that affect the buying behavior of consumers. It also helped to know that how can perception have a positive and a negative impact on the consumer behaviour.

Travelling industry in India- this section helped in knowing India‟s potential in Travel &

Tourism. People have been visiting different regions to experience the vibrant colors of India.

Competition existing in the present market; there are many other companies posing tough

competition to SOTC i.e. Cox & Kings India Pvt. Ltd , Thomas Cook etc.

All the marketing information sources have given a significant contribution to the

detailed theoretical perspective for the research i.e. about consumer behavior and perception.

World Wide Web also worked as a highly important information source as it provides

updated information for the research relating to various areas.

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References:

Bibliography

Marketing Management : A South Asian Perspective by Philip Kotler, Kevin Kelly,

Abraham Koshy and Mithileshwar Jha 13th Edition, Pearson Publication.

Research Methodology : Methods & Techniques by C.R.Kothari 2nd Edition, New Age

International (P) Limited, Publishers.

Weblography

www.sotc.in

www.ibef.org

www.tourism.gov.in

SOTC branch Dadar

www.google.com

www.bplan.com

www.kuonitravels.com

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Annexure

Questionnaire

Dear Respondent, this survey is conducted to understand your perception regarding SOTC Tours & travels. It is to improve the facilities and services according to the demands of the users. (All details provided here will be used for research purpose only and will NOT be disclosed or used for any commercial purposes).

Q.1) Which mode of travel do you prefer?

a)air b)land c)sea

Q.2) Which travel do you do ?

a) Inbound b)out bound c)both

Q.3) What is the purpose of your tour ?

a) Business b)Personal Leisure

Q4.) How often do you travel in a year?

a)1-2 b)3-5 c)5-10 d)more than 10

Q5.) What’s your monthly income?

a)<25,000 b)25,000-50,00 c)50,000-75,000 d)> than 75,000

Q.6 How many members are there in your family?

a) 2 b)3 c)4 d) more tha 4

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Q7.) Which packages have you availed?

a)Business tour b) Adventure Holidays c)Heritage Holidays

d)Hill Station e)Honeymoon Holidays f)Luxury Holidays

g)Wildlife Holidays h)Religious Holidays i)Other

Q8) What kind of accommodation do you choose?

a)Hotel b)Camp site c)Apartment d)Marina

Q9.) During last year in which month your travelling frequency was high?

a)Jan b)feb c)mar d)apr

e)may f)june g)july h)aug

i)sep j)oct k)nov l)dec

Q10).Brands & services of SOTC are?

a)excellent b)good c)average d)poor

 Q11) From where you came to know about SOTC?

a)television b)radio c)hoardings d)internet e)others

Q12.)do you know SOTC is ISO 9001 Certified?a)Yes b)No

Q13.Discounts & offers by SOTC are?a)excellent b)good c)average d)poor

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Q14)How would you rate your level of satisfaction with regard to what SOTC has to offed?

1)Very unsatisfied 2)Unsatisfied 3)Somewhat satisfied 4) Satisfied 5)Very Satisfied

Factors 1 2 3 4 5

Air Ticketing

Rail Ticketing

Destination management

Safety

Q.15) Do you feel that SOTC provide value for money ?a.strongly agreeb.agreec.disagreed.strongly disagree

Personal details

Name : _______________________________________________________________________

Address : _______________________________________________________________________

Gender : Male Female

Age Group (in Years) : 21-30 31-40 41-50 51-60 61-70

Education : Graduate Post Graduate Professional

Marital Status : Married Unmarried

Employment Status : Government Private Self Retired

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