CHAPTER 1 RESEARCH CHAPTER 1 Research Methodology

1.1Introduction

The Researcher, Mr. Pritam Mishra, student of 2nd year MBA, has done his

Summer Internship Project at TRIFFY HOLIDAYS at Mumbai, which is

One of the tour industry, on the topic

Understanding the expectation of tourist.

1.2 Need and Significance

Travel and tourism is a huge and fast-growing sector. Travel and tourism is a vitally important part of the world economy today. It is the largest and fastest-growing sector, with more than 800 million people travelling every year and a strong predicated growth rate. Travel and tourism is the world's number one employer and represents more than 10% of global spending. As it grows, the industry is becoming both more diverse and more specialized, calling on many different kinds of talents. A growing national Travel and Tourism sector contributes to employment, raises national income, and can improve the balance of payments. Thus the sector is an important driver of growth and prosperity, and, particularly within developing countries, it can also play a role in poverty reduction.

The travel and tourism sector continues the momentum of the last few years. By 2011 it will contribute more than $US 9.3 trillion to world economic activity – more than 10% of total spending. More than one in 12 jobs today is in tourism. In spite of the ups and downs of the economy, tourism is extremely resilient in the face of external factors.

There Is Constant Shift of Tourists;

From Toward

Plan Well In Advance Holiday On Short Notice

Full Packaged / Fixed Schedule Holidays Flexible Holidays

Established Destinations New Destinations

Undifferentiated Markets Special Markets

Theme Parks And Man-Made Attractions Experiential Travel / Nature Based Tourism

Mass Marketing Niche Marketing

Non-Branded Destinations Highly Branded Destinations

*Table 10.1 Consumers Shift Trends

1.3 Objectives of Research

To understand what consumers expect from travel packages.

To find how a traveler decides on selection of a particular package.

To find recent trends on consumer experience in travel package.

1.4 Sources of Data Collection:

Primary data: Structured Questionnaire. The primary data has been collected through personal observation as well as through closed ended questionnaires with travelers or potential travelers.

Secondary data – Journals & Published reports

1.5 Sample studied

Technique - Convenience sampling technique.

Sample size – 100 male- 80 female – 20

1.6 Research Design

Descriptive Research Design was undertaken as it draws the opinion of consumers on a specific aspect.

1.7 Sample Design

Population

Recreational Traveler

This traveler is looking to unwind, is not interested so much in local flavor or local customs and the culture. This type of traveler may be one to simply sit on the beach or beach and relax, read a book, play golf or just rest. These are people who need some rest; they may be tired and want to recharge their batteries.

1.8Sample Method

For this research work, the researcher has chosen Non-Probability Judgment Sampling.

1.9 Statistics Tools Used

Descriptive analysis

Factor Analysis

1.10 Limitation

The sample size is 100 which is small and that might affect the overall reliability.

The study is limited to the people in Mumbai City only and cannot be generalised.

The study is based on the opinion of respondents (questionnaire) and there can be bias. The questionnaire might have excluded some important factors.

The analysis and interpretation might not be exhaustive.

The reliability of the scale is only found out. The validity and consistency are not found.

CHAPTER 02 COMPANY PROFILE

TRIFFYHOLIDAYS is a Multi-Destination Tour Operator excelling in planning as well as organis

ing holidays and travel collaterals. As a company we offer you services that are of the highest standard and at extremely competitive rates.

We take pride in expressing that our forte lies in arranging holidays for European countries, whereby we provide Specialised VIP treatment for our clients in a Private Chauffeur Driven Car Packages in entire Europe; complemented with Kitchen caravan for the Group Tours. We also provide Private Chauffeur Driven Car Packages in USA / Canada / New Zealand. Along with this, we specialize in FIT Bookings, International Hotel Booking Facilities, International Sightseeing and Activities Booking, Flight Ticket Bookings at competitive rates for both international and domestic carriers. We design Tailored Made Tours for our Clients as per their requirements around the globe.

Through us you can carry umpteen excitements along with you, but carrying Visa and Passport Hassles not only ruins your overseas experience but also conflicts with our philosophy. Therefore, we provide complete Passport Assistance and Visa Support. We call it Unique Sending Preposition This goes to show that our success lies in our ability to quickly understand our Clients travel needs and act accordingly.

We hope to become your most reliable partner in arranging requirements pertaining to Travel World

Introduction to Travel and Tourism Industry

2.1 Travel and Tourism Industry

The Travel & Tourism (T&T) industry has faced a series of challenges in recent years that range from concerns about terrorism to the high cost of fuel and lower consumer spending linked to the current economic downturn. Yet the T&T sector remains a critical economic sector worldwide and one that provides significant potential for economic growth and development internationally.

The economic importance of the T&T sector should not be underestimated. According to the World Tourism Organization (UNWTO), international tourist arrivals reached 924 million in 2008, representing a growth of 2 percent compared with 2007 (tourism demand slowed in the second half of 2008, however, attributable to the deteriorating international economic situation).The World Travel & Tourism Council (WTTC) estimates that, from direct and indirect activities combined, the T&T sector now accounts for 9.9 percent of global GDP, 10.9 percent of world exports, and 9.4 percent of world investment. A growing national T&T sector contributes to employment, raises national income, and can improve the balance of payments. Thus the sector is an important driver of growth and prosperity, and, particularly within developing countries, it can also play a role in poverty reduction.

2.2 Travel and Tourism Industry India

As per the Travel and Tourism Competitiveness Report 2009 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 2019.India has been ranked the "best country brand for value-for-money" in the Country Brand Index (CBI) survey conducted by Future Brand, a leading global brand consultancy. India also claimed the second place in CBI's "best country brand for history", as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of "rising stars" or the countries that are likely to become major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam.

2.2.1 Contribution to the Economy

According to the Travel & Tourism Competitiveness Report 2009 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 2019.

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 2019. 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 2019.

2.2.2 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 2010 were 491,000 as compared to 422,000 in January 2009, an increase of 16.4 per cent. FEE in US$ terms during January 2010 were US$ 1.21 billion as compared to US$ 941 million in January 2009, 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 road shows in the US, UK, European Union nations and Australia in 2010 to hard sell India as a tourist hub.

2.2.3 Government Initiative

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 ‘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.

2.2.4 Medical Tourism

Despite the economic slowdown, medical tourism in India is the fastest growing segment of tourism industry, according to the market research report “Booming Medical Tourism in India”. The report adds that India offers a great potential in the medical tourism industry. Factors such as low cost, scale and range of treatments provided in the country add to its attractiveness as a medical tourism destination.

In addition to the existence of modern medicine, indigenous medical practitioners are providing their services across the country with more than 3,000 hospitals and 726,000 registered practitioners catering to the needs of traditional Indian healthcare. A number of Indian hotels will tie up with professional organizations in a range of wellness fields to enter the wellness services market.

According to a report by RNCOS, medical tourism will grow at a CAGR of over 27 per cent in the period 2009–12 to generate revenues worth US$ 2.4 billion by 2012. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent to reach 1.1 million by 2012. The report adds that India’s share in the global medical tourism industry will climb to around 2.4 per cent by the end of 2012.

2.2.5 The Road Ahead

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009:

The demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world.

India's travel and tourism sector is expected to be the second largest employer in the world, employing 40,037,000 by 2019.

Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019.

The report forecasts India to get capital investment worth US$ 94.5 billion in the travel and tourism sector in 2019.

India is projected to become the fifth fastest growing business travel destination from 2010-2019 with an estimated real growth rate of 7.6 per cent.

Preparing for the 2010 Commonwealth Games in Delhi, the Tourism Ministry is exploring the provision of tented accommodation to tourists in Faridabad and Surajkund in nearby Haryana.

2.2.6 The Indian Travel and Tourism Policy Is Built Around the 7-S Mantra

Swaagat (welcome),

Soochanaa (information),

Suvidhaa (facilitation),

Surakshaa (security),

Sahyog (cooperation),

Sanrachnaa (infrastructure)

Safaai (cleanliness).

2.3 Definition Travel and Tourism

2.3.1 Technical Definitions.

Most commonly, definitions of travel and tourism are concerned with who is (or isn’t) a tourist rather than what travel and tourism is. That is, they classify the tourist according to various criteria, such as length of stay, purpose of trip or distance travelled, and are used to distinguish tourism from other forms of travel for statistical or measurement purposes. Rather confusingly, distinctions are made between tourists, ‘excursionists’ and ‘day trippers’; it is most useful to simply consider them all as tourists, remembering that day trips are usually a subcategory of domestic tourism’. The important point to grasp, however, is that tourism, as measured in numerous statistical sources, is a broad activity; tourists are not only people on holiday, but may be on business, students studying abroad, religious tourists (pilgrims), and so on.

2.3.2 Conceptual Definitions.

In contrast, these attempt to define the meaning or function of travel and tourism as a social activity. They draw attention to the fact that tourism involves a change of location and, frequently, a change from the routine or the ordinary. However, given the enormous variety of purposes and activities measured as ‘tourism’, it is virtually impossible to define it conceptually – in fact, much of what you will cover on your course is concerned with what travel and tourism is. Although it is useful to be able to quote the definitions you might find in textbooks, it is more important to recognise the contribution or limitations of different types of definition to an understanding of what travel and tourism is.

2.3.3 The Evolution or History of Tourism

It is a fascinating subject in its own right (and an example of how particular disciplines can contribute to our understanding of travel and tourism). Given the increasing incidence of travel and tourism in modern societies, it is also an important topic in the social history of many countries. The main purpose of looking at how travel and tourism has evolved, however, is to identify the main factors that have influenced, and continue to drive, the growth and spread of tourism around the world. Thus, if you are investigating the growth of travel and tourism either generally or in specific countries/regions, it is likely that you will always be able to refer to these factors. The principal issue to focus upon is the transformation of travel and tourism, particularly international travel and tourism, from an activity that was once largely the preserve of the privileged minority (the wealthy or upper classes) to one enjoyed by the great majority of people, at least in the wealthier, developed countries. In other words, the principal issue is the emergence of mass tourism, a process that is described by one key writer, John Urry, as the ‘democratisation’ of tourism. On the one hand, an historical analysis of tourism development identifies three main periods within which specific forms of tourism can be identified:

11600–1800: a period which witnessed the rise and fall of the ‘Grand Tour’, as well as the popularity of spas as the first example of resort-based tourism.

21800–1900: during this period, seaside resorts emerged and grew rapidly. The latter half of the 19th century also saw the birth and development of the ‘package tour’, with Thomas Cook being widely considered as the originator of the concept

1900 onwards: a period initially defined by increasing domestic tourism but, since the 1960s, by the rapid growth of international mass tourism.

Importantly, a common theme or trend throughout all these periods, and one that continues to reflect the development of contemporary travel and tourism is the so-called ‘aristocratic model’ of tourism development. The upper classes or aristocracy initially favoured particular destinations or types of tourism, only to find their leisure space and time being increasingly invaded by the middle/lower classes. In other words, travel and tourism has long been a status symbol and one to which people increasingly aspire.

2.4 Unique Characteristics of the Tourism Industry

There are four main characteristics which distinguish the tourism industry from other service providers:

2.4.1 Inflexibility

The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on an airplane is fixed so it is not possible to meet sudden upsurges in demand. Similarly, restaurant tables, hotel beds and airplane seats remain empty and unused in periods of low demand. The seasonal nature of tourism activity exacerbates this problem.

2.4.2 Perishability

Tourism services are highly perishable. An unused hotel bed or an empty airplane seat represents an immediate loss of that service as a means of earning profit. This has an impact on overall industry profitability.

2.4.3 Fixed Location

Tourism destinations are fixed locations so effort must be concentrated in communicating the facility to the potential consumer. A consumer can conveniently watch a Hollywood movie at the local cinema but has to be persuaded to travel to India to see the Taj Mahal.

2.4.4 Relatively Large Financial Investment

Every modern tourist establishment and facility requires large investment, frequently over a long time scale. This means that the level of risk and the rate of return are critically important to tourism management.

2.5 Flow Chart of Booking

*Image – 1 Flow Chart of Booking

CHAPTER-03-THEORETICAL BACKGROUND

3.1 Factors Influencing Demand for Tourism

The Demand for Travel and Tourism

Travel and tourism starts with the tourist – if people did not wish to be tourists or to seek out tourism experiences, travel and tourism would, by and large, not be the major phenomenon it is today. Therefore, understanding why people want or choose to be tourists is fundamental to the study of travel and tourism. The demand for tourism is, however, a broad topic. It is not only about how and why people decide to participate in tourism, but also about how they behave as tourists, why they choose particular types of tourism, what tourism means to them, why their ‘taste’ in tourism may change over time, and so on. In short, to study the demand for travel and tourism is, in effect, to study the tourist. Inevitably, then, it is one of the largest (and most researched or written about) topics within the study of travel and tourism and, perhaps, one of the most complex. It also draws on a number of the social sciences, particularly sociology, anthropology and psychology, while key running themes are the sociology of tourism and authenticity. Nevertheless, the basic principles and concepts within the demand for travel and tourism are relatively simple and, once you have grasped these, then you will be much better placed to explore areas of particular interest in more detail.

When studying the demand for travel and tourism, we are principally concerned with actual or expressed demand. Two further points are worth remembering. First, for many people, tourism demand is a continuous, cyclical process – the experience and memory from one holiday often feeds the anticipation and experience of the next one. Second, the demand for travel and tourism needs to be considered alongside all other forms of consumption that we indulge in – it is just one element of our general consumer behaviour.

Generic Model Of Consumer Decision-Making Made Up Of Five Stages:

Stage 1 Problem identification/‘felt need’

Stage 2 Information search and evaluation

Stage 3 Purchase (travel) decision

Stage 4 Travel experience

Stage 5 Experience evaluation

Inevitably this oversimplifies a complex process. Each stage is subject to a variety of influences and factors (see Image 3.1 as an example), while the concept of the travel career ladder also adds an extra dimension. While models of the demand process are useful to bear in mind, it is the enormous variety of factors that may influence each and every stage of the process that is fundamental to understanding the demand for travel and tourism. These factors can be usefully categorised under four headings, as suggested by Cooper et al. (2005). These will also help you to clarify and contextualise different concepts that are often applied to the demand for travel and tourism.

*Image 3.1 Consumer Influences and Factors

Energisers of demand. These are the forces and influences that collectively create the motivation to travel or go on holiday. They are the push factors which initiate the demand process

Effectors of demand. The information search/evaluation process and subsequent purchase decisions (i.e. Stages 2 and 3) are influenced by the tourist’s knowledge and perceptions of particular places, destinations or experiences. These are the pull factors which lead the tourist to making particular travel choices.

Filterers/determinants of demand. A variety of economic, social and psychological factors determine particular choices or ‘filter out’ inappropriate products. These include tangible or descriptive demand factors, such as:

Mobility

Employment and Income

Paid Holiday Entitlement

Education Levels

Demographic Variables: Age, Gender, Race, Stage in the Family Life Cycle.

To an extent, the above factors are useful for market segmentation and as a basic predictor of what choices particular consumer groups will make. However, the decision-making process is also influenced by intangible, or lifestyle factors, sometimes referred to as psychographic variables. All individuals possess values, attitudes and beliefs which guide their behaviour or determine their lifestyle. The VALS (Values and Lifestyle Scale) is a useful model to apply to travel and tourism. Roles. Holiday/travel choices are also influenced by roles both within the purchasing ‘unit’ (for example, the different roles adopted by family members in choosing a holiday) and as tourists. With regards to the latter, tourists play roles (or see themselves as playing such roles) which may determine their travel/holiday choices. A number of writers have attempted to categorise these roles into tourist typologies, some focusing on tourists’ psychographic characteristics, such as Plog’s psychocentric– allocentric continuum model, others on the relationship between tourist types and the destination environment. The most significant (and widely cited) contribution is that of Erik Cohen, who bases his typologies on the idea that tourists are more or less willing/able to seek out either the familiar or the novel/ different and can, therefore, be categorised along a continuum, from the ‘organised mass tourist’ at one end to the ‘drifter’ at the other.

Tourist typologies describe and potentially explain certain tourist roles; however, they tend to over-generalise tourist behaviour and overlook the myriad of other factors that influence the demand for travel and tourism. Therefore, they should not be seen as predictors of tourist behaviour.

Changes in Demand

In addition to understanding the nature of and influences on the tourism demand process, it is important to think about how the overall demand for travel and tourism is changing (and why). You need to be aware of two interrelated themes:

The production–consumption relationship. So-called Fordist production required consumers to accept mass-produced products, as in the early forms of mass package tourism. In the post-Fordist era, manufacturers or producers are obliged to respond to frequent changes in taste and fashion.

The ‘new’ tourist. It is claimed that tourists are becoming more adventurous, flexible, environmentally aware, active and discerning, and are seeking greater quality, variety and value for money. As evidence of these, a variety of trends in demand can be observed, such as the growth of the ecotourism market, expansion of the long-haul market, growth in the short-break market and the increasing domination of independent, as opposed to organised (package) holidays.

Models of the travel and tourism demand process imply that tourists, as consumers, follow a logical, rational process. They also suggest that, if particular factors and influences can be identified, then it is possible to predict how certain groups or types of tourist will behave in terms of making travel or holiday decisions. However, most forms of consumption (and travel and tourism in particular) are neither logical nor rational, and such is the diversity of factors that determine people’s buying decisions that is virtually impossible to categorise tourists or predict their behavior. Moreover, people are increasingly taking multiple holidays of different types each year. It is, then, worthwhile exploring the concept of the post-tourist and, consequently, the extent to which tourism demand models and tourist typologies have become largely irrelevant.

Tourists Motivation

Motivation is the most important but, at the same time, most complex element of tourism demand. On the one hand, it has been described as one of the most basic and indispensable subjects in tourism studies – without motivation, there would be no demand for tourism. On the other hand, a complete understanding of the motivation for travel and tourism remains elusive. Indeed, one well known writer, Jost Krippendorf, notes that most tourists themselves are unaware of what motivates them, making it even harder for academics to research the subject. It is essential to grasp some basic principles about tourist motivation:

Motivation is not the same as demand. The demand for travel and tourism is the outcome of motivation. A useful way to think of motivation is that it is the link between a ‘felt need’ (as in Stage 1 of the demand process) and the action needed or chosen to satisfy that need. Therefore, motivation translates an identified or felt need into goal-oriented consumer behavior. Consequently, travel and tourism is a satisfier of needs and wants. The simplest

way to think about the role of motivation is to view it as the trigger that sets off the travel and tourism demand process; in a sense, motivation represents tourism’s starting gun.

Motivation should not be equated with the purpose of a trip/holiday. More often than not, the purpose (getting a sun tan, learning about a new culture and so on) is a means of satisfying a particular need.

Motivational push (i.e. person-specific needs) should not be confused with destination pull (i.e. destination-specific attractors).

The study of tourist motivation is, essentially, concerned with exploring why people feel the need to be tourists in the first place and how different needs may be satisfied by different tourism experiences. Academics have long been interested in the topic of tourist motivation and have adopted a number of different approaches. An article by Graham Dann, which is summarized in many textbooks, reviews these approaches. However, there are two key ways of looking at motivation which reflect two disciplinary perspectives (psychology and sociology) on the subject:

Motivation as a psychological phenomenon (intrinsic motivation)

Every individual has deep-rooted needs and desires. This approach is concerned with establishing a link between such psychological needs and identified, goal-oriented touristic behavior. Most commonly, Abraham Maslow’s ‘hierarchy of needs’ is referred to in this context. Although the attraction of Maslow’s model lies in its simplicity (and many travel and tourism textbooks describe it), it contributes only partially to an understanding of tourist motivation. While not overlooking it completely, try to avoid focusing on it too much in your assignments or exam answers Given the difficulty that tourists themselves have in recognizing what motivates them, identifying psychological motives is a difficult task. Nevertheless, academics from both disciplinary ‘camps’ agree that ego-enhancement is an overall intrinsic need that may be satisfied by travel and tourism. Other such needs, sometimes referred to as a ‘hidden agenda’, include:

Escape/Avoidance

Self-Evaluation or Realisation

Regression/Freedom

Relaxation

Enhancement of Relationships.

Motivation as a social/sociological phenomenon (extrinsic motivation)

There are a variety of forces or pressures arising from an individual’s social and cultural environment which may influence his or her needs and motivation. Such external or extrinsic

pressures may come from family and friends, the work environment, or society in general – for example, it is worth thinking about the extent to which we go on holiday simply because it is what we do (or what is expected of us) in contemporary society. The important point is that, although these influences are, in a sense, internalised and become personal needs, they originate in an individual’s social environment. Therefore, the sociology of tourism is a vital running theme here, as is the specific theme of authenticity.

Both sociology and psychology contribute to an understanding of tourist motivation – the two perspectives complement each other. However, it is important to recognise, in particular, the variety of social and cultural influences that potentially influence tourists’ motives. Extrinsic tourist motivation can be viewed from the point of view of the individual (a social action perspective) or as emanating from society as a whole (a structural/functionalist perspective). There are a number of influences (discussed below) that you need to be aware of as a basis for exploring extrinsic motivation.

The Work–Tourism Relationship

Since the industrialisation/urbanisation of society, leisure in general, and travel and tourism in particular, have become the antithesis to work. Work is, therefore, a primary extrinsic motivational factor, the nature of the work experience often determining the desired tourism experience. The work–tourism relationship is not only relevant to paid employment; ‘work’ should be considered as any form of obligatory or non-discretionary routine activity.

The work–tourism relationship can take three forms:

Work and tourism in opposition (the compensatory model). The concepts of inversion, regression and ludic behaviour are relevant here.

Tourism as an extension of work.

Neutrality between work and tourism.

Social influences

Tourist motivation is undoubtedly influenced by an individual’s immediate and wider social group. There are four sources of social pressure:

Family Influences

Reference Groups

Social Class

Culture.

None of the social influences on tourist motivation are mutually exclusive. While different influences may predominate at different times, they may also be linked to the work–tourism relationship. For example, social class and reference groups may be related to the nature of work. Therefore, it is useful to see them as contributing collectively to an understanding of tourist motivation.

The Modern Society

A paradox of modern society is that not only has it provided the opportunity for travel and tourism (wealth, time, technology, etc.), but also that it has created the need for tourism. A primary motivational factor is the need to escape, albeit temporarily, from modern society. Therefore, from a functionalist perspective, travel and tourism plays an essential role in modern society by keeping it, in a sense, in good working order.

Key to understanding the motivational push of modern society are the concepts of alienation and anomie. As well as wishing to escape from the pressures and stress of modern life, it is claimed that tourists are seeking meaning and authenticity through travel and tourism. According to Dean Mac Cannell, a key writer on the subject, tourists are modern pilgrims seeking authentic experiences, yet are ultimately frustrated in that search as a result of staged authenticity.

A parallel theme in this context is the notion of travel and tourism representing a modern, spiritual experience or sacred journey. That is, it is seen as the modern equivalent of religious or sacred activities that people traditionally used to add sense or meaning to their lives. Fundamental to this is the linking of contemporary tourism with pilgrimage, with both the journey out/back and the stay at the destination being equated with the traditional pilgrimage experience.

Try not to confuse religious tourism (tourism that is motivated exclusively or partly by faith or religious reasons) with the idea of ‘tourism as religion’. Visiting a holy or sacred site does not mean you are a religious tourist; conversely, you do not necessarily have to visit a holy or sacred site to be a religious tourist. Tourist motivation is a highly complex issue and one which academics have long been concerned with. The various models and perspectives for studying the topic point to a range of forces and influences, both psychological and social, that may to a lesser or greater extent determine our needs and wants and, consequently, the type of tourist experience that we seek out. However, a full understanding of the topic remains elusive. For example, travel and tourism, from a demand perspective, is a continual process, the previous trip or holiday extending into memory and subsequent anticipation of the next one.

3.2 Framework of Macro-Environmental and Micro-Environmental Factors

Macro-Environmental Factors S.L.E.P.T Analysis of Tourism Industry

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. Whenever a certain place became famous, the example of Goa was cited to discourage the inflow of 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 Lakshwadeep are mentioned in the same breath as Goa or Kashmir.

Legal

The laws that govern the industry are not the same in all the parts of the country. Many of the laws that are in effect are old and archaic, and not geared to meet the challenges of the 21st century.

With respect to taxation, the World Travel and Tourism Council has observed that “Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%". Such high taxation renders the tourism sector as a whole uncompetitive. Further, there is considerable disparity between state level taxes, especially on food and beverages. In fact, the sales tax on imported beverages varies widely, e.g. 63% in Karnataka to 28.75% in West Bengal.

With respect to Foreign Investment in any tourism related venture, clearance must be obtained from the Central government (RBI or Foreign Investment Promotion Board). 51% foreign equity is automatically approved subject to meeting certain prescribed criteria, including having a capital base proposal below US $143 million (Rs. 6 billion). In the case of NRIs, 100% foreign equity is automatically approved. Foreign equity holding above 51 percent are possible, but are subject to FIPB approval. It is to be noted that the Ministry of Industry provides final clearance of FIPB approvals.

The National Policy on Tourism lays emphasis on sustainable development of tourism. In accordance, the Government has brought out a comprehensive Eco Tourism Policy and Guidelines. There are several Acts and laws, which ensure sustainable tourism. These are the Wild Life Protection Act 1972, the Environment (Protection) Act 1986, and Prevention of Cruelty to Animals Act 1986. These do not set aside any specific area for tourism, but such areas have to be identified by the State Governments and obtain the required approvals/relaxations.

Eco-tourism policies and Guidelines have been formulated by the Government in consultation with the industry and are being implemented on a voluntary basis.

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.

Political

The 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.

The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states. After years of tight control over airport infrastructure, Government has finally taken the decision to privatize the airports.

Technological

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 tourist map. Similarly better transportation facilities have lead to a dramatic increase in the number of tourists visiting any particular place. The presence of an airport and the availability of frequent flights are a great convenience to any traveler.

Micro-environmental S.W.O.T. Analysis of the Tourism Industry in India

Strengths

India's geographical location, a culmination of deserts, forests, mountains, and beaches.

Diversity of culture i.e. a blend of various civilizations and their traditions.

A wealth of archeological sites and historical monuments.

Manpower costs in the Indian hotel industry are one of the lowest in the world. This provides better margins for the industry.

A very wide variety of hotels is present in the country that can fulfill the demand of the tourists. There are international players in the market such as Taj and Oberoi. Thus, the needs of the international tourists and travelers are seen to while they are on a visit to India.

Weaknesses

Lack of adequate infrastructure. The airlines in India, for example, are inefficient and do not provide basic facilities at airports. The road condition in India is very bad.

A xenophobic attitude among certain sections of people.

No proper marketing of India's tourism abroad. Foreigners still think of India as a land of snake charmers. There are many places where the image of India is one of poverty, superstition, and diseases.

Opportunities

More proactive role from the government of India in terms of framing policies.

Allowing entry of more multinational companies into the country giving us a global perspective.

Growth of domestic tourism. The advantage here is that domestic tourism and international tourism can be segregated easily owing to the difference in the period of holidays.

Threats

Economic conditions and political turmoil in other countries affects tourism.

Political turbulence within India in Kashmir has also reduced tourist traffic.

Aggressive strategies adopted by other countries like Australia, Singapore, and South Africa in promoting tourism.

3.3 The Marketing Mix for Tourism Services

Users of Tourism Services

The users of tourism services can be categorized in a number of ways. One such way of classifying the users is by dividing them into categories such as General, Sex, Region, Education, etc.

General: Domestic, Foreign

Kids, Teens, Youths, Seniors

Students, Executives, Artists

Politicians, Movie stars

Sex: Men, Women

Region: Rural, Urban

Education: Literate, Illiterate

Status: Rich, Poor

Profession: Executives, Academics, Sportsmen, Artists

Occupation: White collar, Blue collar

Another method of classifying users of tourism services is on the basis of the frequency of usage of services.

Non-users: They lack the willingness, desire and ability (income & leisure time).

Potential Users: They have the willingness but the marketing resources have not been used optimally to influence their impulse.

Actual Users: They are already using the services generated by the tourist organizations

Occasional Users: They have not formed the habit of traveling

Segmentation for Travel and Tourism Markets

Consumer behavior can be defined in psychological terms as the whole range of the generation of wants and their transformation into buying or using decisions. Users have values, perceptions, preferences and expectations which are the result of environmental influences. There are a number of factors that influence the behavioral profile of consumers.

In recent years, the users have become more discriminating in their using habits and therefore their needs for different services, products and brands change constantly. This makes it essential that the marketers analyze their behavioral profile and undertake segmentation so that they know the level of expectations.

In a nutshell, tourist organizations need to undertake segmentation in order to simplify their task of creating and stimulating demand. In this way they can identify the potential tourists, transform them into actual tourists and further into habitual tourists.

Segmentation

Though there are a number of bases for segmentation of tourists, one of the most important is Lifestyle. Traveling decisions are fantastically influenced by changing lifestyles. They are also affected by other factors such as level of income, availability of leisure time, etc.

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.

BASE OF SEGMENTATION CATEGORIES

Holiday Mass market

Popular market

Individual market

Demand Primary

Secondary

Opportunity

Geography International

On the basis of regions, cities, etc.

Psychography Lifestyle

Personality motive

Knowledge

Demography Age

Sex

Religion

Socio-economic Rich, Poor

Rural, Urban

Literate, Illiterate

Purpose Business Travel

Cultural Tourism

Common Interest Convention

Age Teens

Youth

Seniors

*Table – 3.3 Base of Segmentation

The Product Mix:

The tourism product is essentially an intangible thing. Also, because tourism is a multi-segment industry, the task of formulating a product mix becomes more difficult & challenging.

Selling a holiday is ‘selling dreams’. The way to win the customer’s heart is through the peripheral services provided along with the core product. Thus a tourism product is quite a complex one, including the destination, airline seat, hotel room, occasional tangible products such as souvenirs, a free bag or bottle of whisky, etc.

Innovation in the tourism industry helps to raise the sensitivity in this regard. There is nothing fixed or fundamental about the tourism product. The content factor is within the jurisdiction of the government that undertakes the maintenance, development and conservation of tourist attractions such as parks, museums, beaches, historical treasures, etc. Unless these factors are developed in the right fashion, the marketing professionals would never be successful in making the marketing resources productive.

Thus the direct or indirect patronage of the government is essential to get a positive response. The government and private tourist organizations work together to undertake activities such as developing infrastructural facilities such as transportation, water, banking, Medicare facilities, etc., and also developing and maintain hotels, cottages, havelis, lodges, etc.

The Price Mix

In pricing decisions, the product or the service mix of the tourist organization is important. They have to set prices in line with the quality of services to be made available to the customers. Pricing decisions are influenced by internal and external factors. The tourism professionals are supposed to watch the emerging trends in both the markets. They are required to think in favour of discounting price. These may include discounts for cash payments, seasonal discounts, trade discounts etc. But while offering the discounts, it is not to be forgotten that it may also create image problem since some of the value sensitive tourists may doubt the quality.

The Promotion Mix

Creation of awareness has a far reaching impact. The tourist organizations bear the responsibility of informing, persuading and sensing the potential tourists in a right fashion. The marketers need to use the various components of promotion optimally so that they succeed in increasing the number of habitual users. Promotion helps in maximizing the duration of stay, frequency of visit by offering new tourist products in the same country to areas which hitherto have remained untapped or partially tapped. The various dimensions of tourism promotion are as follows:

Advertising: Advertisement helps in furnishing important information to the actual and potential tourists. Its coverage is wide. Advertising is aimed at the public to create awareness of the travel offers available on a resort and its attractions to influence their business decisions. Intangibility can be compensated with the help of visual exposure of scenes and events. We can project hotel bedrooms, well arranged restaurants and cafeterias, swimming pools etc.

Publicity: It focuses attention on strengthening the public relations measures by developing a rapport with media people and getting their personalized support in publicizing the business. It helps in projecting the positive image of tourists organizations since the prospects trust on the news items publicized by the media people. Eg. Kumarakom in Kerala after Prime Minister A B Vajpayee’s visit. The publicity programme include regular publicity stories and photographs to the newspapers, travel editors, contact with magazines on stories etc. There are different groups in publicity, such as advertising publicity, projected publicity, structural publicity and personal publicity.

Sales promotions: Sales promotion measures are the short term activities seeking to boost sales at peak demand periods to ensure that the firms obtain its market share and are used to help launch a new product or support an ailing or modified one. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive. There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-à-vis the emerging trends in the business. Eg. In the tourism industry, a travel company offers give-aways to their clients, such as flight bags, wallets for tickets and forex and covers of passport. The hotels offer a number of facilities like shoe shine clothes, first aid sewing kits, shower caps and shampoo. Further, the VIP clients also get fruits and flowers in their rooms. Thomas Cook offered 3 tier sales promotion based on price and one more novel technique as detailed below: Cook agreed to match the price of any holiday they sold which was known as price promise. Money back guarantee to the clients who purchase the product or any tour operator known as trading charter. Matching of customers need with a particular holiday known as formal guarantee. A business travel challenge in which the details of expenditure on staff business travel booked through other agents over a 3 months period were submitted by companies to Cook, specially to calculate expected savings, provided the bookings are made through them.

Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information which in a true sense is word-of-recommendation. In the tourism industry it is found that the word-of-mouth promoters play the role of a hidden salesforce, who instrumentalize the process of selling. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel, specially in the eyes of the potential tourists. The sensitivity of this tool makes it clear that tourist organizations need to

concentrate on the quality of services they promise and offer. The marketers or the tourist organizations need to keep their eyes open, identify the vocal persons or the opinion leaders and take a special care of them so that they keep on moving the process of stimulating and creating demand.

Personal Selling: Personal Selling is based on the personal skill of an individual. The oral representation in conversation bears the efficacy of transforming the motivation into persuasion. The travel and hotel business depend considerably on the personal selling. The development of travel and tourism has been possible due to well educated and trained sales personnel. The development of tourism business has been influenced by the services rendered by the travel agents and travel guides since they work as information carriers. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the personal customers. It is important to mention that in the tourism industry, the personnel who attend tourists form an essential ingredient of the product, such as sales personnel are found responsible for dealing with customers behind the counter, the resort representatives cater to the need of tourists when they reach the destination etc. all of them play a vital role in ensuring that the tourism products satisfy the tourists. The phrase- the customer is always right applies specifically to the tourism industry. No reduction in price would compensate for impolite and indecent travel guide, a solvent waiter and a surly or a haughty coach driver. These facts are testimony to the proposition that the travel business is linked with the performance and behaviour of sales personnel or travel staff.

Telemarketing: it is a method of selling in which a professionally sound telemarketer expands the business. The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. In tourism, the travel agents, offices of airways, receptionist, secretaries can’t work efficiently if the telephonic services are not up to the mark. This makes a strong advocacy in favour of recruiting a person considered to be professionally sound, personally-committed sales personnel having an in-built creativity, innovation and imagination.

Place

Place or distribution management is concerned with two things – availability and accessibility. Researchers in tourism must determine how and where potential customers prefer to buy tourism products and services.

Most tour operators sell their services through travel agents, however some deal directly with the consumers and eliminate middlemen. Other companies may also utilize more than one method of distribution. Airlines, for example, sell tickets through travel agents, and sell seats on flights to tour operators, and also offer travelers to book seats themselves through their own booking offices.

There exist, however, a number of intermediaries in the tourism marketing channel. It depends largely on the channel type. The intangibility feature in the service sector prevents intermediaries from taking possession or ownership of goods. Tourism, however, proves an exception where cuisine and souvenirs are goods and ownership is possible for the intermediaries.

Transport also plays a major role in the tourism industry. It makes the destinations accessible to people from around the world. Also, in the case of tangible products in tourism such as souvenirs and cuisine, transportation becomes a major logistical component.

People

We can’t deny the fact that sophisticated technologies have been successful in accelerating the pace of development. We also agree with this view that new generation of information technologies have simplified the task of decision makers. At the same time we also have to accept the fact that the sophisticated technologies can’t deliver goods to the development process if the employees operating and maintaining these technologies are not of world class. Technologies need due support of human resources who invent, innovate and develop technologies.

Like other industries, the tourism industry depends substantially on management of human resources. The tourism industry is an amalgam of the services of a lot of people and hence this industry cannot work efficiently if the travel agents, tour operators and travel guides lack world class professional excellence. Of course the offices of travel agents depends on the new technology but after all employees and the other staff contribute significantly to the process. The travel guides need professional excellence since the projection of a positive image regarding a destination in particular requires their due cooperation, failing which even the world class services offered by the travel agents are found meaningless. The tour operators also need to manage human resources efficiently.

In the management of people, the related organizations are required to think in favour of developing an ongoing training program so that we find a close relation between the development of technologies and the quality of personnel who are supposed to operate and maintain the same. They need a lot of credentials to fulfill the expectations of the customers. The organization has to make the environmental conditions conducive and focus has to be laid on the incentives to the employees for energizing the process of performance orientation. Employee orientation requires due weightage to efficiency generation, value-orientation and perfection.

The image of the company begins with each and every employee and is reflected in his or her attitude about the company. The employees are a first market, an internal market for the firm's offerings as well as for its external marketing programs. An emphasis has to be placed on the need to view people, functions and departments internal to the firm as internal customers, to whom internal services have to be provided in the same customer-oriented manner as to external customers. Everything that the service provider does for its customers is first perceived and received by its own personnel. If employees do not believe in the

promises given by external marketing activities then they will not be able or willing to perform as effective part-time marketers and contribute to a good interactive marketing impact.

The five approaches or paths are as follows to ensure the above are:

1. Create a collective pride in the mission and values of the firms among employees (the mission and pride path)

2. Make everyone's tasks, why they are important and how performance is measured, clear to employees and follow up results in a consistent manner (the process and metrics path).

3. Give employees personal freedom and opportunities for earnings, but also significant personal risk , with few rules about behavior (the entrepreneurial spiit path).

4. Show respect for the individual achievements of the employees and recognize quality performance (the individual achievement path).

5. Offer reward and bonus system to support accomplishments (the reward and celebration path).

Empowerment and Enabling Employees

These two concepts are to be understood as not only they motivate the employees but also are important for the effective implementation of internal marketing. Empowering employees means to give employees, who come into contact with customers the authority to make decisions and take action in a large number of potential problematic situations. But there has to a limit as to how far this authority can go, and these limits must be carefully determined. If empowerment is correctly implemented as a part of an internal marketing process then it can have a decisive impact on the satisfaction of employees. Empowerment does not mean a static relationship but a continuous nurturing of trusting relationships between management and employees. Empowering employees means:

1. Providing them with information about the performance of the organization

2. Rewarding them based on the organization's performance

3. Creating a knowledge base that makes possible for employees to understand and contribute to the performance of the organization and

4. Giving employees the power to make decisions that influence organizational directions and performance.

But empowerment cannot function without simultaneously enabling employees so that they are prepared to take the responsibility that goes with the new authority. Enabling means that employees need support to be able to make the independent decisions effectively in the service process. If this support is not provided properly then proper conditions for empowered employees do not exist. Enabling includes:

1. Management Support: so that supervisors and managers give information an also take over decision-making when needed but do not interfere unnecessarily with the decision-making authority of employees.

2. Knowledge Support: so that the employees have the skills and the knowledge to analyze situations and make proper decisions.

3. Technical Support: from support staff, systems, technology and database that provides contact employees with information and other services required for handling situations.

3.4 Key Elements in Travel and Tourism Industry

The tourism industry comprises of the following main and distinctive sectors:

Transportation

Tourism industry is heavily dependent on the transportation industry which comprises of airlines, cruise and ferry lines, passenger railways, coach and bus travel, car hire. Thanks to the increase in tourist traffic, over the years, the range of airline services has considerably, not only in terms of frequency of flights and number of destinations, but also in terms of different services, and differing levels of service to meet different passenger needs. This shows the important role marketing plays as competition and demand intensifies.

Passenger rail services have also changed, and their role in tourism is as wide as with, for example, Euro rail tickets allowing extensive international travel at basic(service) standard for students and budget tourists, to the luxury of Palace on Wheels – where the train voyage is the holiday.

Cruise lines are operating different services tailored to consumers’ budgets, and other shipping lines involved in the tourist industry, especially the ferry operators, are broadening and upgrading their range of services and facilities to meet consumer expectations, and to remain competitive.Coach and bus companies have acted in a similar fashion and so have the car rental companies.

Accommodation

Accommodation includes hotels, ranging from the biggest international chains recognizable worldwide such as Hilton and Holiday Inn to small independent establishments. In order to gain recognition in an increasingly competitive marketplace, many smaller independent hotels have grouped together, adopting a consortium approach. Under a central brand name, they can offer central reservations services, for eg. and present a recognizable identity to consumers which enables them to compete against the larger, more established chains.

Other types of accommodations are also well established in tourist markets, notably self-catering apartments and club type complexes.

With the innumerable dream destinations India offers the best of the accommodation facilities to the travelers to the land. There are plenty of hotels and resorts in India that cater to the needs of tourists of all kinds. The hotels and resorts in India provide high standards of quality of accommodation, facilities and comforts to satisfy the client’s at the most reasonable rates. The variety of hotels and resorts in India ranging from Luxury Hotels, Standard Hotels, Budget Hotels to the Heritage Hotels In India. Then there are several Indian & International Hotel Chains in India. The services and the facilities are such that the hospitability of India gets revealed always. Throughout the length and the breadth of the country that is dotted with tourist destinations the hotels and resorts are available to make your experience of India unique.

The incomparable and incredible land of India offers plenty of accommodation options such that the visit to the wonderland suits all pockets. The country where tradition and trends fuse to give you the best the range of possible accommodations is vast. There are the exclusive hotels and hotel chains that boast of luxurious amenities and world-class décor.

Hotels in India have been categorized on different parameters all of them taking into account the factors such as service provided, infrastructure, location, heritage value, and types of guests accommodated. Like many other countries worldwide, these categorizations help the common travelers zero down on the accommodation option he can afford or wanted to stay at during his/her visit.

Tour Operators

Tour operators are the firms which specialize in providing the whole holiday package, incorporating travel and accommodation needs for the consumer. They range from highly specialized operations such as Indianvisit.com, who customize every kind of trip that you can dream of, to large operators offering services at all different levels to cater for budget, family, or singles holidays to ‘near’ or ‘faraway’ destinations.

Thomas Cook is one of the best known of such operators; they also offer travel agency and financial services to their consumers. An independent local coach firm may also be a tour operator, and many transportation companies also offer holiday packages.

In today’s competitive market and with the increased bargaining power of the consumers there is only one way to survive in the rat race and that is by segmenting the market and offering different products pertinent to the demand of that segment.

With this in mind, what does a holiday in India symbolizes? This is a question that every traveler to this vast subcontinent of human beings, dust, chaos, and religion asks himself at least once. For many of them India is the exotic orient where you can find only the snake charmers or sadhus. For few who have gone through contemporary literature on the country, India is an organized chaos (as described one of the renowned writers and sociologists). For the ones who have seen the exploitations of Indian expats in Silicon Valley might consider the country as a future hub of knowledge economy.

For a quintessential vacationer in India, the country presents itself in the plethora of colors, hues, and shapes. With its inexhaustible range of culture, traditions, wildlife, beaches, and mountains India is huge. The country is not only about chaos and ways to control them; it is about life, the civilization and continuity of it that makes people look beyond the obvious. But obvious, we believe, is not the choice that you are going to make while visiting India. What you need is something different, something that is new, and something that is exciting. Concept tourism is one exciting option that a few tour operators like Indianholiday.com believe is worth taking interest in. These operators give you a number of exciting options categorized according to the interest and concept to tour India.

Ecotourism in India

India, the land of geographical varieties offers several tourist destinations that not just de-stress but also rejuvenate you. There are several ways to enjoy Mother Nature in most pristine way. There are series of eco tours for India that provide the coolest hangouts to take pleasure in indulging oneself into the God gifted environs.

Beach Holidays:

Has the combination of Sun, Sand, Sea and Surf ever tempted you to take a break from the daily monotonous chores that you perform so religiously? Then we have just the right package for you with the sure-shot itinerary to relax you completely. The balmy beaches of India are perfect escapade for the fun loving holiday tourism seekers. India with its long coastline of 7500 kms, offers some of the most exotic beach holidays and beach tourism destinations in the world. The great peninsula with the Indian Ocean in the middle and accompanied by the Arabian Sea and the Bay of Bengal on each side besides the two archipelagos of Lakshadweep and Andamans is perfect for beach holidays for tourists the world over. The young state of Goa certainly happens to be the Beach Capital of India. It offers the perfect spot for the novice divers. The blaze of glory, the beautiful waves, the swinging palms and the many hues of the sky, the nature is for sure at its best at the beaches. India boasts of many beaches of Goa in the West, Kovalam in the South and Gopalpur in the East. So you may head towards any direction of the Indian peninsula and be invited to the sun bathed beaches. The never-ending shores and the untouched oceanic horizons seem to be mesmerizing. The photogenic dawn and dusks at the beaches are sure to be repetitive visitor to the shores.

Cultural Holidays

Ever wondered at the cultural diversity of India? The enticing unity represented by the people of the country who display a wide range of religions, culture, customs and languages. The rich and varied heritage happens to be one of the many sources of pride of the nation. The mysterious ways of the people, their lifestyles and the inseparable culture cannot be done solved in words but can surely be enjoyed with experience.

Adventure Holidays

Ever felt the waves of a river on your face, wish to see to the land and everything on it from a height of 18,000 feet? Fancy trotting from one palace to another riding a camel or perhaps get a better view of the jungle sitting smart on an elephant? Well if any of them is an affirmative, the adventure holidays and tourism in India are just for you. Try out the aerial, aqua or land adventures and enjoy. The quest to do the uncommon, the desire to meet challenges makes people take up any of the adventure activities and rejuvenate themselves. India is the land of variety and diversity. The terrain of the sand dunes and long stretches of barren land is ideal for desert safaris, the queen of rivers, the fun of watching the wildlife at the Corbett National Park gets multiplied when enjoyed riding an elephant, the Ganges is irresistible for the water sports and the scenic beauty of Jammu is picture perfect for the paragliding. You name the adventure and India has the right spot for it.

Ayurveda and Rejuvenation

India adheres to the age-old philosophy of Ayurveda - in a traditional way - that's what makes India a different locale to visit. Ayurveda recognizes that each individual is different and so treatment too should be customized. Ayurveda, the traditional Indian system of medicine holds out to the world the promise of a healthy long life. step into the world, where healing is a ritual and nurturing life a tradition, i. e. experience the magical power of Traditional Ayurveda. Ayurveda and Rejuvenation programs include a few programs combining Ayurveda along with sightseeing and other aspects of tourism in India. An extensive and well - crafted out Ayurvedic treatment package that would rejuvenate your body and mind and make you face the hustle and bustle of the city life again.

Golf Tours

If Golf, is what you are passionate about and you happen to be an avid traveler then the 21 day Golf Holidays package of India being offered is something you cannot refuse to go ahead with. The perfect break from the stressful routine religiously followed otherwise. Just catch up with the Golf fever that has caught the entire country in a big way. Add that extra touch of versatility in you by playing the different surfaces in the various golf clubs developed in several cities of India. The turfs, the mounds, the climate, the yards of green all make golf better than ever before.

Railway Tours

Kuuuuu& Chuk Chuk !!! Doesn't the whistle of the luxury train. Be onboard the luxury trains of India, the Palace on Wheels, the Royal Orient and the Toy Trains are the pride of Indian Railways, the largest passenger train service in the world seem to invite you. The Palace on Wheels lives by its name and is no less than a fort on the swing. The lavish lifestyle, the facilities, the décor, the comfort and the style have made the first tourist train of India the most sought after. The marvelous train that today is a joint effort of the Rajasthan Tourism Development Corporation and the Indian Railways. During this excursion, the tourists are

overwhelmed with the beauty at the major stations of Jaipur, Chittaurgarh, Udaipur, Jaisalmer, Jodhpur and Bharatpur, and Agra chugging through the culturally colorful states of Rajasthan and Gujarat. You may even opt for a voyage onboard the Royal Orient, the train offering both style and comfort. It is a project of the Tourism Corporation of Gujarat Limited along with the Indian Railways. The rainbow of cities trotted by the royal extravagance of the bygone era include Delhi, Chittaurgarh, Junagarh/Veraval, Somnath/Sasan, Gir/Ahmedpur, Mandvi/Palitana/ Sarkhej, Ahmedabad and Jaipur. Besides the Royal trains, the toy trains of India have attracted many a tourists.

The ride on the train with a 4500 kilometers track chugs through the popular hill stations of the country like Shimal, Darjeeling, Ooty/ Udagamandalam or Ootacamund and Matheran. The toy trains are called so because of the narrow gauge railway lines they ride on. The wondrous miniature of rail engineering that offers the most scenic beauties of the Himalayas from Kalka to Shimla and another from Jal Pai Guri to Darjeeling.

Yoga Tours in India: India has been the land of saints and sages who meditated and practiced yoga. The spiritual city of Rishikesh happens to be the Yoga capital of India. Tourists and travelers flock to contemplate and practice Yoga and meditation in the lap of Himalayas. The city hosts the International Yoga Week every year in the month of February attracting several experts and participants.

Backwater Tours in India

Cruising along the backwaters of Kerala is an ideal way to discover the real Kerala. The placid backwaters that stretch for over fifteen hundred kilometers are covered with swinging palm trees. The tourists are left spell bound by the tranquility of the backwaters while riding the Houseboats, it's the most authentic and unexplored way to explore the beauty of the backwaters. The Houseboats that float on the backwaters are the improved version of the Kettuvalloms. The frequently visited tourist destinations amongst the backwaters in Kerala comprise of Kovalam, Alappuzha, Kottayam and Ernakulam. The tourists may indulge into tourism activities like boating, fishing and sightseeing while exploring the backwaters of Kerala. The backwater cuisine, which comprises of delectable fresh fish like pearl spotted fish, barramundi, crabs, mussels and prawns is finger licking good.

All these tours have been designed keeping in mind the requirements of travelers coming from different parts of the world. Apart from these, there are some organizations which specialize in custom made tours. Some of these tours offered are:

Special theme parties: Under these the following options are available

Moonlight Boat Cruise on the Backwater of Kerala: Guests are ferried aboard a spacious, specially decorated boat for a delightful moonlight cruise on the backwater of Cochin. South Indian culinary surprises are served. There is also a thrilling firework display.

Rajput Wedding

A traditional Rajput wedding ceremony where the group members participate as 'Baraati' (the bridegroom's family and friends who form the wedding party) and the bridal party.

Bollywood

Guests in garish costumes, some posing as directors, some as action heroes, romantic leading ladies, ruffians live their dreams of becoming a star.

Corporate Incentive Tours

In today's world incentive travel is one of the most effective marketing and motivational tools especially in the corporate sector. After all those long hours at work let the corporate employee get the much-deserved break in the form of an incentive. The various corporate incentive tours that are offered have been planned in a manner to rejuvenate and refresh the employees for the forthcoming assignments.Along with the corporate incentives tours arrangements can be made for conferences, conventions, seminars, board meetings, client presentations, training programs, workshops, dealers meet or any other relationship building activity in any destination in India.

Dream Marriages

Tie the knot with your knight in shining armor in the most royal way. Celebrate the biggest and the best occasion of your life - Marriage- in the most beautiful style. Get married at any of the captivating castles, pulsating palaces or the happening hotels and make your dream come true. At your dream marriage there will be fun and festivity all around backed by the music of your choice and decorations with your favorite flowers.

The feast to your eyes and ears will be equaled by the sumptuous food that will treat the taste buds at the dream marriage. From champagne bottles and confetti to photographers we can arrange it all for the special you and the very special occasion of your dream marriage. The setting for the realization of your dream will be splendid and the arrangements will be spectacular for your marriage that will bring smiles on every face and heart!

Tourism Destination Operators/ Destination Management

This is new category in many senses, as it is an area of the tourism industry which has seen a massive growth in the development of theme parks and other types of artificial tourist destinations in the recent years. However Disneyland and Disneyworld in America were the forerunners of this development in tourism marketing, and they have been well established for decades. It is due to the recent growth, and the continuing trends, which make it area which should be considered separately as a tourism industry. The new EuroDisney theme park in France is an example of a tourism destination operation.

On a smaller scale, heritage parks which being developed from Britain’s industrial wasteland such as Wigan Pier, which attracted over half a million tourists in 1991, and similar attractions now represent a significant amount of tourism activity.

They have been operating a variety of tours for their Groups and Individual tourists and have been able to mastermind their tours with great deal of efficiency. The company specializes in inbound tours and offers a host of tourism related services to inbound tourists in the India and neighboring countries like Nepal, Bhutan, Tibet, and Srilanka. Various tours they offer are as below. Tailor-made packages, cultural tours, adventure tours, religious tours, yoga & meditation tours, Rejuvenation & Ayurveda tours, safaris, special interest tours, conferences, incentives and much more in the Indian Subcontinent. Apart from above other various travel related services they provide are as below:

Hotel Booking

Individual or group booking in any hotel of any category and in any part of Indian subcontinent can be provided instantly. Owing to their very good connections with the hotels in almost every part of the country, they are always in a position to offer very lucrative discounted rates to their clients. Enter their hotel query form and just let them know the name of city and category of hotel and wait for sometime. Their professionals will get back to you in no time with a number of suitable options.

Air Booking

Their exceptionally good relations with the Domestic and International Airlines enable them to come up with very good discounts for their clients. Their online reservation system - Abacus helps us in confirming the bookings instantly even in the veryabusyasectors.

Itinerary Planning and Tailor Made Holiday

IndianVisit have long been helping their guests with necessary arrangements in many exciting programs. Just tell them the time of arrival & departure, the total duration of travel and your approximate budget. Rest all leaveatoathem.

Transport

They have a large fleet of cars / coaches at their disposal, and having the fleet itself is not enough, they need to see that they use best transport for their clients, and provide them a good value for their money; hence they have maintained a separate department taking care of all their transport requirements.

School and College Group Tours

College and school group tours are probably the most difficult one to handle as the young boys and girls expect and demand far more from their travelling experience than other travellers and they have and an insatiable appetite for enjoyment. Even a small problem in the tour can dampen their enthusiasm or can drive them crazy so everything has to be absolutely perfect for such tours. their meticulously planned and well executed tours have won a number of young friends for them.

City Sightseeing and Tour Excursions

They can arrange city sight seeing tours for individual / group traveller in any of the touristic destination. The city tour can be provided in an a/c and non a/c car or coach. A four hour half day trip would not give the tourist short exposure, to the city and a full day city tour is there if they have more than 04 hours to spare. Beat area of all the cities are covered with a variety of excursions, all organized in such a way that they start in the morning and after an experience to remember, they would come back to the place where they started from, in the evening.

Limousine/Luxury Car/ Coach Services

They always have a large fleet of cars and coaches at their disposal and can provide the same at any part of the subcontinent for sightseeing tours, for airport transfers or for any such purpose. The operations of their Transport department are incredibly swift and silky smooth - thanks to the large and luxurious fleet of air- conditioned, well trained and dressed chauffeur driven cars and coaches at its disposal. Their quality control concept allows us to not to use more than 03 years old cars / coaches on longer drives. Their chauffeurs are well aware of the basic ethics of the travel trade and hospitality industry thus a personalized service to all the valued guests is guaranteed, even if they are traveling only along with the chauffeur.

Multilingual Guides & Professional Experts

Sightseeing without guides serves no purpose and can just be a dull and boring experience. They provide guides who with their eloquence and immense knowledge about the city and the monuments make the sightseeing a gratifying, memorable and enjoyable experience. They provide not only the English speaking guides but also arrange the guides who speaks French, German, Italian, Japanese or Spanish etc on prior request. On special request, the professional escort from the company accompanies the guests during the entire tour at a very nominal cost and help in making their trip all the more interesting, comfortable and entertaining. An accompanying escort would not only ensure the smooth movement of tours, but with his / her vivacity would add to the enjoyment and would keep on appraising the tourist with the inner and deep beliefs of the local residents.

Discounted Tours

Indianvisit.com your complete travel guide to the incredible land of India offers tours at the lowest discounted expenses. Opt for any of the discounted tours presented to you and end up saving while you spend. Besides the discounted tours are the special packages and custom-tailored tours are available for various tourist destinations they provide services including accommodations, sightseeing tours, optional excursions, guides and personal drivers, ground transportation, package tours, combined in the discounted package tours and low transportation charges. The accommodation on the discounted tour will be of the tourist’s choice and as per their budget.

3.5 Strategy in Travel and Tourism

Any business or organisation, whether in the private, public or ‘voluntary’ (i.e. not-for-profit) sector, should undertake strategic planning and management. Without strategy, organisations are liable to suffer from strategic drift resulting from a failure to recognise and respond to the changing external environment. As a consequence, they may encounter difficulty in meeting their objectives, become less competitive or, as occurs occasionally (and sometimes spectacularly!) in travel and tourism, ultimately fail or go out of business. Thus, strategic management is, perhaps, the most important activity undertaken by any organisation.

When studying strategy for travel and tourism, there are two points you should be immediately aware of:

The principles of strategic management apply to all types of organisations, not just commercial businesses. Therefore, although strategy is most frequently studied in the context of sectors of the travel and tourism industry, such as airlines, tour operators or accommodation, it is of equal importance to other types of organisation, such as national tourist boards or destination management organisations.

The concepts and principles of strategic management are not prescriptive solutions to problems; rather, they are in effect a set of tools that can help organisations to recognise and understand the challenges they face, and to devise appropriate responses.

At the conceptual level, strategy is a rather ‘dry’ subject. You should, therefore, always try to use examples from the travel and tourism industry to bring your assignments or exam answers to life. The airline industry in general, and the no-frills sector in particular, is a very fruitful source for examples of effective (and ineffective) strategy in practice, while many destination tourism development policies often follow the principles of strategic planning and management.

It is a process through which travel and tourism organisations decide upon where they want to be in the future and the most appropriate or effective means of getting there. There are four common elements of successful strategy:

Simple, consistent and long-term goals.

A clear understanding of the external or competitive environment.

An objective appraisal of internal resources.

The effective implementation of the chosen strategy.

Strategic Choice

Strategic choice focuses on developing different strategic options, evaluating these options, and the selection of the most appropriate option. Within this process there are three key concepts:

Competitive strategy. Porter developed a widely-cited generic strategy framework based on cost-leadership or differentiation strategy. This has been criticised in the travel and tourism context, par ticularly as organisations may adopt a hybrid strategy (low cost and dif ferentiated), while an alternative framework is based upon quality and price as strategic options.

Strategic direction. Organisations should decide upon the direction of development. Four choices of growth strategies are suggested by Ansof f’s product-market framework:

Market Penetration

Market Development

Product Development

Diversification.

Alternative strategic directions include stability strategies (consolidation) and retrenchment strategies.

Strategic Methods.

The method of strategic development is critical to the success of strategy. The dif ferent methods of developing strategy are:

organic/internal growth

mergers/takeovers

collaborative arrangements: strategic alliances, joint ventures, franchising,

Strategic methods are of particular relevance to the travel and tourism industry, with different sectors favouring different methods. It is well worth considering why, for example, strategic alliances are popular within the airline sector, franchising is common within the accommodation sector, and takeovers have been dominant within the tour operating sector.

Prior to strategic choices being made, each strategic option must be evaluated. Typical criteria for evaluation are:

Suitability. Does the strategy exploit opportunities, avoid threats and capitalise on the organisation’s strengths?

Feasibility. Is the strategy realistic in terms of available resources and competitor reactions?

Acceptability. Does the strategy meet the needs of the stakeholders Three key questions must be addressed:

The basis of ‘traditional’ strategic management is the concept of gaining competitive advantage; that is, strategy is concerned with competing with, and doing better than, other organisations in the sector. It is, therefore, about competition and ‘winning’ – gaining greater

market share, out-performing the competition financially, and so on. More recently, however, academics have been concerned with the extent to which collaboration, as opposed to competition, is a more appropriate basis for achieving strategic success. Strategic management enables organisations to meet their long-term goals by matching, or achieving strategic fit, between its resources/competencies and its external environment. Your answer would define the meaning and purpose of strategy and explain the different stages/elements of the strategic management process, using examples from different travel and tourism organisations to highlight the importance of each element.

3.6 Economics of Travel and Tourism

In economics, this perspective is referred to as macro-economics. Conversely, tourism economics can also be considered at the level of individual businesses or tourists, an approach known as micro-economics. When studying travel and tourism, both perspectives are of value. While the macro-economic approach is essential in assessing the economic benefits and costs of tourism development (with evident links to the running theme of sustainable development), micro-economic analysis provides, for example, an extra dimension to the understanding of the demand for travel and tourism as well as a basis for exploring the economics of, say, the accommodation sector.

Economics is also well worth looking at. Do not be put off by the term ‘economics’! You do not have to be an economist to understand the economics of travel and tourism, and the economic concepts that are applied to travel and tourism are relatively simple to grasp. Essentially, economics is concerned with how a balance can be achieved between, on the one hand, scarce resources and, on the other hand, the demand for those resources. In other words, resources (other than those that are ‘free’, such as air) are finite and tend to be limited in supply relative to demand. Thus, economics is basically concerned with the problems of choice resulting from this scarcity of resources.

Micro-economics At the micro-economic level, this issue is manifested in the relationship between demand and supply. All individuals demand goods and services (including tourism); the total demand for a particular product is what the industry must supply if all customers are to be satisfied. In reality, demand and supply are rarely matched and the resulting interaction between the two is determined by price. The basic economic rules of demand and supply for any product, including tourism, are: As the price falls, demand will rise; as the price rises, demand will fall. As the price rises, the quantity supplied will rise; as the price falls, supply will also fall.

Variety of Factors other than Price that Affect Demand.

In other words, conditions of demand may alter the position of the demand curve. The aggregate, or total, demand for travel and tourism may be determined by a variety of economic factors, including:

Levels of Personal Disposable Income

Holiday Entitlements

Promotion of the Destination

Exchange Rates

Comparison between Home and Destination Prices.

Moreover, demand is also influenced by the relationship between competing products and their prices. In tourism, there may be substitute products, where an increase in the demand for one product may lead to a fall in demand for another product, and complements, where increasing demand for one will stimulate a similar increase in demand for the other. Substitutes may be normal or inferior products – as income falls, consumers may switch to inferior substitutes, such as cheaper holidays or economy class as opposed to business class airline seats.

The Supply of a Product are Influenced by a Variety of Factors

The Price of Competing Products

The Cost of Providing the Product

Barriers to Entry and Exit

Government Regulations.

Supply and demand can be brought together through the price mechanism, a process whereby economic decisions in the economy are determined by the workings of the market. In theory, the market works to create a condition of equilibrium, where the volume demanded and the volume supplied are the same. For example, where the price of a package holiday is too high, so that supply outstrips demand, either supply must be reduced or the price must be reduced to stimulate demand.

A common strategy among tour operators is to either offer discounts for early bookings and/or to implement yield management processes to sell off excess capacity as the date of the holiday approaches. This is simply a manifestation of the price mechanism to ensure that supply matches demand (i.e. so that the operator sells all its holidays). In the context of micro-economics, you should also be aware of the concept of elasticity of demand or supply. Where demand is very responsive to small changes in price, then demand is elastic;

conversely, where demand is unaffected by changes in price, the demand is inelastic. For example, summer-sun package holidays (usually with many substitutes) tend to be price elastic. Conversely, specialist or luxury products, with more limited supply and few substitutes, tend to be price inelastic. Macro-economics: the impacts of tourism

Given its scale as both a social and economic activity, it is inevitable that travel and tourism has significant impacts on destination environments and societies. An understanding of these impacts is essential to the study of travel and tourism. The word ‘impact’ has negative connotations and, frequently, the so-called ‘negative’ impacts of tourism are highlighted, particularly in the popular media. However, travel and tourism brings many benefits to destinations (and generating regions) and it is, therefore, better to think in terms of consequences rather than impacts.

Economic Benefits

The main reason that destinations seek to develop travel and tourism is for the potential economic benefits it can bring. These benefits should, ideally, outweigh any costs or disadvantages of developing tourism so that, like any business, the destination makes a ‘profit’. Indeed, many countries have policies to support tourism as a potentially valuable sector of the economy. Different destinations are more or less able to take economic advantage of travel and tourism. The extent to which economic benefits are realised is determined by a variety of factors:

The Nature of Tourist Sites and Facilities and their Attraction to Tourists

The Volume of Tourist Expenditure at the Destination

The Level of Economic Development of the Destination

The Extent of Local Economic Diversification

The Extent to Which the Economy is Dependent on the imports of Goods, Services and Capital.

As a general rule, developed modern countries/economies are better able to benefit from tourism than less developed countries/economies. The development of travel and tourism brings both economic benefits and costs. The economic benefits are:

Foreign Exchange Earnings/Contribution to the Balance of Payments. For many destination countries, international tourism is a vital export sector.

Economic Diversification. Tourism is seen as an effective means of achieving economic regeneration or diversification in both urban and rural areas.

Income Generation. Travel and tourism is an important source of government revenues, while direct tourism expenditure (i.e. tourist receipts) stimulates fur there expenditure (hence, income for local businesses) through the multiplier effect.

Employment. Globally, travel and tourism is a major employer (directly and indirectly), though attention must be paid to the nature of local employment in the sector.

It is important to distinguish between tourism receipts, which represent direct tourist expenditure in a destination, and the tourism economy, which represents the total direct and indirect value of tourism to a destination. The latter is difficult to measure, although Tourism Satellite Accounting is increasingly used as a means of measuring the overall economic benefits of tourism. The WTTC publishes satellite accounts for most destinations on its website.

Economic Costs

The development of travel and tourism may also result in economic costs for a destination. Therefore, the true economic contribution of tourism must be seen in terms of net benefits. Tourism receipts data, such those that published by the WTO, hide the extent of these economic costs, which include:

Leakages. A proportion of the income from tourism is spent on importing goods to meet tourists’ needs.

Higher Import Costs. As the wealth of a destination increases, local people demand other goods that must be imported.

Inflation. Frequently, land/proper ty prices increase in popular tourism areas, while the costs of local goods and services may also increase.

Opportunity Costs. Travel and tourism may not, in the long term, be the most effective development option (although in many cases there may be no other option).

External Costs. These include the costs of refuse collection, extra policing, health services and so on.

3.7 Tourism and Development

One of the most important things you should remember when studying travel and tourism is that the development of tourism is not an end in itself but, rather, a means to an end. In other words, tourism is not developed and promoted for its own sake, but because it is widely considered to be an effective means of achieving social and economic development in destination areas.

Not surprisingly, perhaps, most attention is paid to the role of tourism in less developed countries. However, the reason for developing tourism in developed, industrialised countries, whether in cities, at the seaside or in the countryside, is exactly the same – its contribution to development and regeneration.

All too often, however, this developmental role of travel and tourism is taken for granted. That is, little attention is paid to how tourism contributes to development – how the developmental needs of the destination can be best met by tourism and even what development actually is. If you are able to think about some of these questions, then you will be able to demonstrate a much deeper understanding of the role of tourism in national and international development Exploring tourism and development is not about planning; it is about taking a step back and thinking about some key issues and questions that should be considered before the planning process starts.

As many academics observe, tourism is for many places an option of last resort. In other words, they simply have no choice other than to develop tourism. Nevertheless, there are a number of reasons why tourism is favored:

It is a growth industry.

It redistributes wealth.

It provides opportunities for backward linkages in the local economy.

It uses natural, ‘free’ resources and infrastructure.

It does not, in principle, face any trade barriers.

It can promote environmental protection.

It provides facilities for local people as well as tourists.

Academics talk about tourism contributing to development (and we all think we have an idea what the term means) but it is, in fact, quite difficult to define. It is also important, of course, to have some idea of what development is, if nothing else so that we can measure how successful tourism is in achieving or contributing to it. From a definitional perspective, development was originally seen (and measured) in economic terms; that is, economic growth was synonymous with development (and, in a tourism context, perhaps still is). However, the meaning of development has expanded considerably, now embracing not only economic opportunities and growth but also social benefits and facilities, political freedom and cultural factors, such as esteem and self-identity. The extent to which these are being achieved is measured by a variety of indices, including life expectancy, education, access to clean water, and so on (a useful example being the United Nation Development Programmer’s annual Human Development Index). However, it does become difficult to see how tourism can contribute to all of these developmental needs.

Theories of Development

Just as the meaning of development had changed over time, so too have the so-called ‘paradigms’ or theories of development. While you do not need to have an in-depth understanding of these, you will certainly benefit from having a grasp of the basics – it will provide you with a theoretical foundation for explaining how tourism may, or may not,

contribute to development, as well as helping to explain what the dominant (and running) theme in travel and tourism, namely, sustainable tourism development, is all about.

Essentially, there are four theories of development that you need to be aware of:

Modernization theory. This suggests that all countries/ societies eventually become ‘modern’ and that the process of becoming modern can be speeded up by the introduction of an economic sector, such as tourism, which stimulates other sectors of the economy. This is a useful means of explaining the development of resorts as a vehicle for wider development of the destination area.

Dependency theory. Essentially, underdevelopment in some countries is caused or maintained by their dependent relationship with (and exploitation by) other, richer countries. The political economy of the international tourism system is considered by some to be a manifestation of dependency theory.

Economic neoliberalism. This refers to international lending programmes that require recipient countries to liberalise their economies. This has often resulted in a worsening of local conditions.

Alternative development. Contrasting with the other three theories which promote economic growth, alternative development represents a ‘bottom-up’, grassroots approach to development which focuses upon the satisfaction of people’s basic needs. Importantly, alternative development provides the basis for the concept of sustainable development, which has environmental sustainability at its core.

Sustainable Development and Tourism

The basic objective of sustainable tourism development is to achieve a balance between the tourism environment, the needs of local communities and the needs of tourists. In other words, sustainable tourism development is concerned with achieving, through tourism:

Developmental Objectives: Focusing on basic needs, ‘bottom-up’, locally controlled development

Environmental/Sustainability Objectives: Conserving/protecting the environment, particularly conserving non-renewable resources.

However, the very nature of travel and tourism suggests that these objectives are difficult to achieve. The debate is complex and varied, but the issues to think about are:

The Structure, Scale and Diversity of the Tourism Industry

The Political Economy of Global Tourism

The Nature of Tourism Consumption.

3.8 Contemporary Issues in Travel and Tourism

Throughout these Chapters, it has been suggested that you should try to keep up to date with changes, events, or contemporary issues that occur within the ‘real world’ of travel and tourism. Simply by registering with one of the online travel and tourism news services, such as travel mole. com or eturbonews.com, you can receive daily bulletins about international travel and tourism, although just regularly reading newspapers, particularly the travel sections, can also provide you with much valuable information. There are two reasons why you should do this:

Travel and tourism is a dynamic industry. There are always new developments, new challenges and new issues and, as a student of travel and tourism, it is important to keep abreast of these.

Familiarising yourself with the travel industry, with particular destinations and so on will provide you with a wealth of knowledge that you can draw upon to illustrate or to give an extra dimension

Strictly speaking, ‘contemporary issues’ is not part of the core travel and tourism curriculum, although some courses do include a module that considers current issues and events in tourism. Nevertheless, it is useful to think about what the key contemporary issues are, and their implications for many of the topics that comprise the travel and tourism curriculum. The purpose of this final section, therefore, is to highlight some of these issues. Of course, contemporary issues will, by definition, change over time. Nevertheless, the following are some issues or challenges which are likely to remain predominant in travel and tourism for the foreseeable future.

Crisis and Crisis Management

As international tourism has grown in scope and scale over the last half century, so too has the potential for crises and disasters that impact upon tourism. In fact, to the casual observer, it would appear that tourism and tourists have become increasingly subjected to risks, crises and disasters of varying forms and intensity. Certainly, over the last decade or so, international tourism has suffered a number of environmental, political and economic disasters that have not only had a significant impact on tourism both nationally and globally, but which have also occurred with apparently ever-increasing frequency. Most recently, of course, the Asian tsunami had a devastating impact on tourist destinations around the Indian Ocean, but other headline grabbing events, such as the SARS outbreak, the Bali bombing and the economic crisis in South-east Asia in the late 1990s all impacted upon international tourism.

A number of observations can be made with respect to crises in traveland tourism:

It is not a new phenomenon: tourism has always been susceptible to external shocks, whether they are economic crises, health scares, environmental disasters, terrorist attacks or wars.

Disasters may also be ‘internal’ to the tourism industry; the aviation industry, for example, suffered a spate of crashes in the summer of 2005.

Crises and disasters are infinitely variable in nature, intensity, duration, impact and recovery time. Some may be short-lived; other crises, such as the political turmoil in Sri Lanka, may have long-term impacts on tourism.

The effects of crises on the tourism industry tend to be relatively short-term and regionalised. For example, 2001 (the year of 9/11) was only the second year since 1950 that global tourist arrivals actually fell. Undoubtedly, the spread of tourism around the globe has increased the risk of crises.

Sustainable Tourism Development

Since the late 1980s, the concept of sustainable development has dominated national and international development policy. Similarly, within the specific context of travel and tourism, the concept of sustainable tourism development has gained worldwide endorsement as the most appropriate approach to tourism development. At the international, national, local and industry level, numerous policy documents, planning guidelines, codes of conduct and statements of good practice and so on have been produced, all promoting or extolling the virtues of sustainable tourism development. Such widespread acceptance of the concept is not surprising given the growth of environmentalism in general and the concern over the negative consequences of tourism development in particular. However, questions remain over the viability of the concept – many question both the principles and objectives of sustainable tourism development, particularly as an alternative to mass tourism, and a number of important questions must be addressed.

Ethics in Tourism

Related to the concept of sustainable development, the issue of ethics has become increasingly important in both commercial and social life. Ethics refers to the codes by which human behaviour is guided – how people respond to each other, how they travel, how business is done. In travel and tourism, ethics is concerned with how tourism is managed at the level of both the industry and the individual tourist. Thus, there are two perspectives – human ethics and business ethics, the latter often embraced by what is referred to as corporate social responsibility, or CSR. While most individuals and organisations would agree that ethical behaviour is a desirable, if not essential objective, particularly within an activity such as travel and tourism, there are a number of problems inherent in implementing an ethical stance, including:

Ethics are based upon values, not laws; people and businesses can only be encouraged, not enforced, to adopt ethical behaviour. Codes of conduct (for businesses and individuals) are a common means of encouraging ethical behaviour, but their effectiveness is limited.

Similar to environmental concern, ethical behaviour is seen to be a national not an individual issue. It is difficult to encourage the individual tourist, or tourism business, to act ethically.

In travel and tourism, the adoption of ethical behaviour on the part of tourists may seem to be contrary to the spirit or meaning of tourism, such as escape, fun, relaxation, and so on.

The World Travel and Tourism Council has endorsed the concept of corporate social responsibility, while the World Tourism Organization has developed a Global Code of Ethics for Tourism. However, given the lack of enforceability of codes of ethics, the profit motive of most tourism businesses, and the reasons why people participate in tourism.

Health Issues

Health is frequently a barrier to tourism. That is, concerns about health (or personal safety) may dissuade people to travel to certain destinations where the risk of contracting an illness may be perceived to be high or where an outbreak of a disease results in official advice (i.e. a travel advisory) not to travel to a particular destination. For example, an outbreak of plague in India in 1994 resulted in a significant fall in tourism to the subcontinent for a number of weeks, while the impact on tourism of the SARS outbreak in Asia in 2003 was also highly significant. However, the SARS outbreak was also an example of a particular health-related problem in travel and tourism, namely, the spread of infectious diseases as a result of tourism. In other words, tourists are able to travel to more distant and exotic places or, as a result of greater political freedom, to countries that were once off-limits. While this has opened up opportunities for new travel experiences, it has also placed increasing numbers of tourists at risk of contracting diseases which they then carry home with them – one of the most alarming aspects of the SARS outbreak, for example, was the rapidity with which it travelled across the globe. While the spread of diseases is not yet a major problem it is a challenge that the travel industry and, possibly, governments may have to face up to in the future.

Inevitably, information technology is a major contemporary issue in travel and tourism. Where travel technology represented the first revolution in tourism, information technology represents the second. The impact of information technology, particularly the Internet, has been dramatic and far-reaching, fundamentally changing the manner in which travel and tourism is marketed and purchased. At the same time, information technology more generally has made a significant contribution to business practice, underpinning the development of powerful database marketing systems, more efficient resource use and yield management, and so on. In short, access to and use of information through media such as the Internet has revolutionised the business of travel and tourism.

For tourists, the Internet literally presents a window to the world. It has also provided them with greater influence in the chain of distribution, inasmuch as the industry now has to respond to demand rather than creating it – tour operators, travel agencies and principals all face challenges in the way they do business. For tourists, the Internet also represents a challenge in that they now design their own holidays (but also, perhaps, take the responsibility when things go wrong). But how much further can information technology go? Will customers begin to reject the Internet in favour of the ‘human touch’? Will virtual travel become a reality?

Changing Demands

The demand for tourism has demonstrated consistent growth since the 1950s. Although the annual rate of increase has slowed, international arrivals are expected to continue to grow, reaching an estimated 1.6 billion by 2020 (more than twice the current figure for international arrivals). While only time will tell whether that forecast will prove to be accurate (and there is nothing to suggest that the figures won’t be met), some consideration needs to be given to the consequences of such growth. In other words, continuing growth in tourism is seen to be a ‘good thing’, particularly if the benefits of tourism, such as income and employment, are more widely or equitably enjoyed around the world. However, is it likely that the less developed areas of the world, particularly many of the least developed nations, will benefit from tourism.

Perhaps more importantly, we need to consider how and where will this growth occur, and what will be the impacts on travel and tourism infrastructure and the environment? Many international airports are already operating at capacity, while air traffic control systems are also stretched at peak periods. As a result, travelers may begin to experience ever-increasing delays, and safety may be compromised. Also, will the increase be within regions or will it be global.