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Biyani's Think Tank

Concept based notes

Tourism MarketingBBA

BethcyDept. of Commerce & Management

Biyani Girls College, Jaipur


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Published by :

Think TanksBiyani Group of Colleges

Concept & Copyright :

Biyani Shikshan SamitiSector-3, Vidhyadhar Nagar,

Jaipur-302 023 (Rajasthan)

Ph : 0141-2338371, 2338591-95 Fax : 0141-2338007E-mail : [email protected]

Website :www.gurukpo.com; www.biyanicolleges.org

Edition : 2012

Leaser Type Setted by :Biyani College Printing Department

While every effort is taken to avoid errors or omissions in this Publication, any mistake or

omission that may have crept in is not intentional. It may be taken note of that neither thepublisher nor the author will be responsible for any damage or loss of any kind arising toanyone in any manner on account of such errors and omissions.


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Tourism Marketing 3

Preface

I am glad to present this book, especially designed to serve the needs of thestudents. The book has been written keeping in mind the general weakness inunderstanding the fundamental concepts of the topics. The book is self-explanatory andadopts the Teach Yourself style. It is based on question-answer pattern. The languageof book is quite easy and understandable based on scientific approach.

Any further improvement in the contents of the book by making corrections,omission and inclusion is keen to be achieved based on suggestions from the readers

for which the author shall be obliged.I acknowledge special thanks to Mr. Rajeev Biyani, Chairman& Dr. Sanjay Biyani,

Director (Acad.) Biyani Group of Colleges, who are the backbones and main conceptprovider and also have been constant source of motivation throughout this endeavour.They played an active role in coordinating the various stages of this endeavour andspearheaded the publishing work.

I look forward to receiving valuable suggestions from professors of variouseducational institutions, other faculty members and students for improvement of thequality of the book. The reader may feel free to send in their comments and suggestionsto the under mentioned address.

Bethcy


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SyllabusUnit 1:

Introduction: Meaning and Definition of tourism, Purpose of tour, Distinction betweentourist and visitor, role of tourism, Travel and tourism in the 21stcentury, Trends andFuture prospects of tourism, Role and functions of RTDC, ITDC and Department oftourism.

Unit 2:

Conceptual Framework and Type of Tourism: Meaning of travellers, Types of tourism:Domestic, regional, intra-regional and international tourism, cultural, adventure, sports,social, wedding, medical, coastal and beach, pilgrimage, wildlife, Linkages andinterdependence between domestic and international tourism.

Unit 3:

Marketing of Tourism: Meaning and Definition of Tourism Marketing, Need andImportance, Marketing Mix, Marketing Environment, Trends in Marketing, Marketing

Communication, Tourist Market Segmentation.

Unit 4:

Seven Ps of Tourism Marketing: Product, Price, Promotion, Place, People, Process andPhysical Evidence

Unit 5:

Tourism in India: Growth of Tourism in India, Benefits from Tourism, Barriers toGrowth, Tourist Activities, Tourism Policy of India, Prospects and Challenges of

Tourism Marketing, Comparison of Indian Tourism with International Tourism(Medical, Cultural, Religion, Historical and Natural Perspectives)


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Tourism Marketing 5

Content

S.No Chapter Name1 Introduction

2 Conceptual Framework and Type of Tourism

3 Marketing of Tourism

4 Seven Ps of Tourism Marketing

5 Tourism in India

6 Key Terms


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Unit 1

Introduction

Q1: Explain the meaning and purpose of tourism?A1: Travelling to different uncontaminated or undistributed places with the sole

objective of admiring, enjoying and studying the natural beauty around alongwith its historical and cultural aspects is termed as tourism. According to WorldTourism Organization, tourism comprises the activities of persons travelling toand staying in places outside their usual environment for not more than one

consecutive year for leisure, business and other purposes.In the recent years, tourism has contributed immensely towards economicgrowth. The problem of unemployment across the country has also been solvedto a large extent with the onset of the tourism industry. India being a countrywith diverse cultural and geographical features, has contributed much more tothe growth of tourism industry.The concept of tourism originated primarily in the Sanskrit literature and threeterms can be derived out of that. They are as follows:Tirthatan: It is basically a religious visit which involves going to places ofreligious importance.

Paryatana: It refers to going out and visiting places for the purpose of gainingknowledge and for pleasure.Deshatana: It is an activity involving moving out of the country for economicgains.

Purpose of Tour:1.

People basically undertake tour for the purpose of entertainment and leisure.

2. Business related tours provide way for gaining better insight in different

areas.

3. Travelling to different places helps understand the basic culture and heritage

of the particular region or country.

4. Provides opportunity for meeting people with varied backgrounds, culture,

language, religion etc.

5. To get a flavour of the distinct and tasty cuisines of different countries.


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Tourism Marketing 7

Q2: What is the role of tourism in the overall development of the economy?A2: Tourism is a one of the fastest growing industry and is also recognized as the

smokeless industry across the world. It serves as the channel for regular incomein an economy and is also an indicator for foreseeing the process of economicgrowth and development and also a source of cultural assimilation in variouscountries. There are many developed countries that are bestowed with vastamount of material artefacts, cultural heritage and lifestyles involving fairs andfestivals that act as a great source of revenue generation for the tourism industry.After Information technology, tourism sector is considered to be the secondlargest business areas that has posed a consistent growth year on year for the last

few decades and helps hold on to substantial foreign exchange amount for thecountry yielding to its growth and thus the growth of tourism.The growth of tourism is largely depends on how the country positions andmarkets its attractions and different destinations. Wherever this is ensured andexecuted in the right manner has resulted in the growth of tourism and thus thesuccess for the industry is obvious.Domestic tourism has also become a significant part of the tourism sector.Domestic tourists have gained greater significance in the market. A researchconducted in 2003 indicates that there were more domestic tourists visitingvarious destinations within the country compared to international tourists and

experts suggest this trend in tourism is said to continue till this day.One significant shift that domestic tourism brings is that the urban populationwill reach out to the rural areas of the country and thus increasing spend in theunderdeveloped parts of the country creating opportunities of redistribution ofwealth and economic development. This in turn also offers employmentopportunities and creates a sense of attachment in the rural population. It alsogenerates awareness if ones own country with regard to its environment andculture.

Q3: What are the trends and future prospects of the tourism industry in India?

A3: As one of the largest and fastest growing industry, tourism has increasinglyacted as a source of employment, income and wealth generation in manycountries. International tourism brings in the Lions share of export earnings andforeign exchange receipts as compared to any other industry.


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But apart from providing considerable benefits for many regions, communitiesand countries, the rapid expansion of tourism industry has posed a threat to theenvironment as well as well as the socio cultural factors, environmentaldegradation has become a major problem for regions rich in tourism as thereforethere is an increasing need for promoting substantial development so as tomaximize socio-economic benefits and minimize environmental impacts.Tourism has achieved the status of the most remarkable phenomena in terms ofsocio economic factors in the 21stcentury. Earlier it was considered as an activityrelatively enjoyed by a small group of people who were well-off. It graduallygrew into a massive phenomenon especially after the 2ndworld war. Now it hasattained a stage where it has reached to a large number of people across theworld and also proved as a significant source of employment.

Countries are giving more priority to international tourism than to domestictourism. Domestic tourism accounts for 80% of the various tourist activities but itonly accounts for the redistribution of the national income regionally. On theother hand, international tourism acts as the biggest source of foreign exchangereceipts. Research indicate that earnings from foreign exchange accounts formore value as compared to the export value of motor vehicle, petroleumproducts, telecommunications or any other product or serviceHowever the 11thSeptember terrorist attacks in New York in USA has posed athreat to the tourism industry as the tourism market across the globe fell by asignificant percentage even to the level of threatening the existence of the

industry. Particularly the attacks had major impacts on business travel, airtransport and long haul travel. It was estimated that there was a 15% drop intravel reservations worldwide. Despite of the industry slowdown not all sectorsof the tourism industry were affected. E.g. luxury travel and air travel wereaffected but this significantly increased the number of people using other modesof transportation like road and rail transportation. This indicated that peoplewere still travelling now mostly by avoiding air transport. People did reduce thenumber of leisure travel but the amount of business travel continued to theconsistent over the years and eventually people travelling for leisure also pickedup over a period of time and thus brought the tourism industry back to its

growth trends.Even though the economic downturn had an impact on the tourism industry andresulted in low income generation but despite of all these odds in past years, it isestimated that in the longer run there will be significant growth in the tourismindustry with special focus on international tourism. The reason can be


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Tourism Marketing 9

attributed to the discretionary growth in earnings, improvement in standard ofliving, decreasing travel costs, improvement and expansions of various modes oftransportation, increase in leisure as well as other factors.The world is slowly turning into global village where the jobs are done notnecessarily in the country where the final goods are consumed but really atplaces where the expertise lies in building the product for final consumption. ForE.g. we will find car consumers across the world but the manufacturing is largelydone in technological advanced countries like Japan and Germany. This not justmeans that the exports and imports of goods but it also results in a lot of businesstravels. Another example is India which is considered to be the technology hubof the world. This has attracted a lot global IT based frontend and backend workto come to India also resulting in a lot of people travelling back and forth

between the consumer country (e.g. USA, Europe) and supplier country (India,China).Long term forecasts have been made by the world tourism organisation whichasserts that there will be an increase in the number of international arrivals and itis expected to reach the 1.6 billion mark by the year 2020.

Q4: Explain the roles and functions of RTDC?A4: Rajasthan Tourism Development Corporation is a company owned fully by the

Rajasthan Government. The company has its headquarters at Jaipur and is

registered under the companies Act 1956.Role:The role of RTDC is to grant the customers the opportunity to experience thebeauty and charm of the various exotic destinations of Rajasthan. It provides theprivilege to understand and discover more about Rajasthan.Functions:

1. RTDC plays a vital role in developing, executing and scheming projects foraccelerating and promoting tourism in the state.2. Tourism gives rise to various motels, cafeterias and bars. The management ofthese numerous restaurants and other such setups is also one of the major

functions of RTDC.3. To develop and organize various package tours, entertainment, shopping etcfor the customers in order to provide customised services to them.4. With established extensive network of marketing, the organization helpspromote tourism at both national and international levels.


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Q5: Explain the roles and functions of ITDC?A5: The India Tourism Development Corporation is a government of India

undertaking which came into being in October 1966.Role:

The India Tourism Development Corporation has played a pioneer role in theprogress of the tourism industry. It has helped in developing, promoting andexpanding the concept of tourism in the country.Functions:1. One of the main functions is the construction, management and taking over ofthe various travellers restaurants, beach resorts and market hotels.2. Providing different kinds of services arising out of tourism like entertainment,

transport and other conventional services.3. Production and distribution of the publicity materials to the tourists.4. Providing consultancy and management services within the country as well asabroad.5. Providing value for money solutions that are innovative so as to cater to theneeds of the tourism development.

Q6: Explain the roles and functions of the Department of Tourism?A6: The department of tourism is the apex body involved in formulating various

national programmes and policies related to tourism. It also coordinates the

activities of various agencies of the central Government, State Government andother private sectors for promoting and developing tourism in India. The UnionMinister for Tourism is the head of the department and the Minister of State forTourism supports the same.Functions:1. It takes care of all matters related to policy which includes manpowerdevelopment, promotion and marketing, development policies, incentives etc.2. Planning and co-ordinating with various departments, ministries and StateGovernments.3. Regulating the set standards and guidelines

4. Issue and implementation of guidelines related to product and infrastructuredevelopment.5. Setting up of guidelines and standards for human resource development.6. Creating strategies for marketing and publicity.7. Monitoring, researching, analyzing and evaluating different areas and aspects.


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8. Maintaining co-operation at the international level.9. Co-ordination of budget and other matters related to it.


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CASE STUDY

Study on availability of tourism services in Rajasthan with the view of sustainableLong Term Growth

Key Facts about Rajasthan Tourism

Among all the states in India, the state of Rajasthan has emerged as the primedestination for international and domestic tourists. Except a sea-beach and snow-cladmountains, it offers everything to the tourists. The tourism products of Rajasthan have

even become internationally famous such as palace on wheels, heritage hotels, camelssafaris, and wild life sanctuaries/national parks.This industry in Rajasthan is also one of the most flourishing industries in the state. Thenumbers of tourists arriving in Rajasthan in 2010 alone were over 26 crores, out ofwhich 12 lakhs (~10%) tourists were foreigners. Considering, the 2010 statistics, tourismaccounts for roughly 8% of Rajasthan's total GDP.

Business CaseA study was conducted to assess the supply of tourist facilities to support the growingdemand of services because of the growth in tourism in the state. This study wasconducted because the desert ecosystem is fragile and continuously increasing number

of tourists arrivals have resulted in environmental issues and there was challenge interms of how the locals perceived the growth in tourism.

Outcomes of Research

The immediate outcome of the study was that Rajasthan was not well prepared for theincreasing number of tourist arrivals. The increase in tourists was not resulting inincrease in tourism services. The top under prepared cities that came out of the analysiswere Ajmer (Including Pushkar), Jaipur, Mount Abu and Udaipur. These 4 citiesapparently also hosted the maximum number of tourists visiting Rajasthan. Roughly30% of tourists visiting Rajasthan were visiting these 4 states with Ajmer and Pushkar

contributing to roughly 50% of this share.

Key RecommendationThe key recommendations made basis the research was to continuously invest inbuilding Quality infrastructure and amenities with focus on the targeted 4 cities.


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The new services were built with focus on making sure that the amenities wereAccessible to Tourists and were built to meet real needs of the tourists and not just as anactivity per say. During the design phase there was attention given to the fact that theamenities be built closer to where tourists want them and that they are accessible byRoad and Rails.To build quality accommodation facilities RTDC is partnering with privateorganisations to build quality accommodation services for visitors and especially forforeign tourists. While planning for the accommodation services there was high focuson Ajmer/Pushkar Districts since they were the most underdeveloped to cater togrowing tourism followed by Mount Abu.Building the infrastructure will also ensure that there is more than enough employmentopportunity related within the states and cities which should positively improve the

perception of locals about growth of tourism in the state. Moreover the Governmentand RTDC will have to substantially invest in marketing of Rajasthan tourism, whichwill not only result in continuous growth of tourism in state but will also improve thebrand of RTDC among locals.

Questions:Q1) Describe the impact of awareness and research in Tourism management?

Q2) Do you agree with the view of the researcher that, there was a need to developinfrastructure since the city was seeing growth in tourism even without the

investment? Please share your responses with detailed elaborations basis longterm vision for the state?

Q3) The research team indicated that there is a need to market RTDC as a randrecognized across the country? Basis your understanding of Marketing inTourism please elaborate what steps could RTDC take and detail eachrecommendations with how it will help RTDC to grow its brand image?


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Multiple Choice Questions

1. Tourism is:

a. Travel for leisure

b. Travel for business purpose

c. Travel for religious purpose

d. Travel for leisure, business as well as other purposes.

2. Tourism is a major creator of jobs in the world. Approximately what

percentage of the global employment is represented by tourism?

a.

2%b. 8%

c. 20%

d. 50%

3. Purpose of tour is for:

a. Entertainment

b. Gaining Knowledge

c. Understanding culture

d.

All of the above

4. Tourism accounts for more than 10% of the worlds GDP. What does GDP

stands for?

a. Gross Demand Profile

b. Gross Domestic Profile

c. Gross Domestic Product

d. General Domestic Product

5.

Domestic Tourism is:a. Travelling in a country for a day

b. Travelling to far off places.

c. Travelling to outside countries for six months.


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d. Travelling within the country.

6. Which of the following statements is correct?

a. The majority of tourism in the world is international

b. The majority of tourism in the world is domestic.

c. Domestic tourism is a minority pursuit.

d. International tourism accounts for more than 50% of all travel in the

world.

7. The greatest source of foreign exchange is:

a.

Domestic Tourismb. Regional Tourism

c. International Tourism

d. Intra-Regional Tourism

8. RTDC stands for:

a. Rajasthan Trade Development Corporation

b. Rajasthan Tourism Development Corporation

c. Rajasthan Tourism Development Company

d.

Rajasthan Tour Development Company

9. ITDC stands for:

a. International Trade Development Corporation

b. India Tourism Development Corporation

c. India Trade Development Corporation

d. India Tour Development Company


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such elements that has played a pivotal role in shaping their way of life. Culturaltourism has gained profound interest in India as it is a country having a greatpast with great traditions. Therefore any tourism in India has some culturalaspect and that is why it is termed as cultural tourism. A considerable impact ofculture can be sensed by any foreigner who visits India.

6. Adventure Tourism:This kind of tourism is also gaining popularity because of its opportunity forexploring and discovering different areas. Here the traveller gets the opportunityfor expecting the unexpected by travelling to remote or exotic or even hostileareas. It gives the participants an experience outside their comfort zone. Avariety of activities can be included in adventure tourism like trekking,

mountaineering, bungee jumping, rafting, mountain biking and so on.

7. Sports Tourism:

Sports tourism is popular among the sports lovers which involves travelling toplaces for watching various sporting events. These sporting events can be CricketWorld Cup, Football World Cup, Olympics, and Formula 1 Grand Prix etc. It isestimated that sports tourism is expected to grow at a rate of 6% in the comingnext five to six years.

8. Social Tourism:

Social tourism is a complex and diverse phenomena which includes tourism forfamilies, workers, associations, for promoting social cohesion, personalitydevelopment or for any non profit purpose. It gives basic right to all personsinvolved in it irrespective of their variant situations and helps promote theirsocialization and cultural development.

9. Wedding Tourism:With the increasing interest of foreigners in the grand wedding functionsorganized in the country, wedding tourism is gaining importance. Thedistinctive religious ceremonies and celebrations that take place during wedding

helps unleash the rich cultural heritage of India. It provides the participants afirsthand experience of the various preparations done by both the parties forwedding. It helps in exploring the hidden facets of Indian wedding at the sametime enjoying the hospitality offered during these occasions.


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10. Medical Tourism:There can be two facets of medical travel or medical tourism. The first refers topeople who travel across international borders for obtaining better health care.The second indicates travel by the healthcare professionals to various places forimparting and delivering healthcare services. Services typically required bytravellers include complex surgeries like joint replacement, dental surgery,cardiac surgery etc. Medical tourism has been identified as a national industry byover 50 countries. However, there may be differences in the measures of qualityacross the globe.

11. Costal and Beach Tourism:This section of tourism refers to travelling to places rich in coastal zones and

offshore coastal waters. This is also a rapidly growing part of the tourismindustry as a significant part of the population of tourists is interested in visitingthe coasts and beaches.

12. Pilgrimage Tourism:With the growing spiritual awakening among people, pilgrimage tourism hasalso grown by leaps and bounds. This basically involves travel to certain sacredplaces for pilgrimage. Such pilgrimage holidays are perfect solutions for thepurification of mind, body and soul. The secularism of our country and thediverse religious patterns followed gives immense importance to pilgrimage

tourism.

13. Wildlife Tourism:Wildlife tourism is broadly related to wildlife and involves travel to destinationsfor observing the local fauna. Exploration of marine life and bird watching alsoforms a part of wildlife tourism. The growing interest in wildlife has furtherenhanced the potential for growth within this sector of the tourism industry.


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CASE STUDY

Tourism in Adverse EnvironmentThe popularity of tourism is increasing in extreme environments. This can be bettertermed as adventure tourism and the number of people involved in it has increaseddrastically in the past years. The reason behind is that people these days have becomemore adventurous and are happy in taking risks. Some other reasons are:

Extreme environments are ideal locations for trekking, river rafting, snorkelling,

jeep tours etc.

People are more interested in doing something different and unusual on

holidays.Best of sceneries and wildlife can be seen in such places.

People now have more disposable income to visit and spend at extreme

locations.

Adventure sports are gaining popularity through television programmes and

advertisements.

Easier and quicker access to places to these places through improvements in

transportation.

But Tourism in these extreme environments can also be damaging due to the fragilenature of these environments. Increased tourists activities lead to cutting of trees whichin turn destroy the habitats. Also deforestation leads to flooding and soil erosion.Antarctica is such an extreme environment where increased tourism in the past fewyears has caused considerable damage to the continent. Tourists have trampled planetsand have distributed wildlife. Litter dropped into water and fuel spilled from the shipshas caused damage to the molluscs and fishes feeding there.Here comes the role of Eco-Tourism which is beneficial to overcome these adverseimpacts of tourism and protect the environment. This basically involves conservationand protection of environment by the local organisations and local people residing inthese places.

Questions:

Q1) How can adventure tourism be promoted in the extremity of environment?Q2) How can Eco-Tourism overcome the setbacks in adventure tourism?


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Multiple Choice Questions1. Regional tourism is:

a. Travel from one region to the another

b. Travel within a region

c. Travel from one country to another

d. Travel within a country

2. Adventure tourism is:

a.

Travel to desert placesb. Travel to hilly areas

c. Travel to remote, extreme and adventurous areas

d. Travel to mountain places.

3. Sports tourism is:

a. Travelling to watch sporting events.

b. Travelling for leisure.

c. Travelling to play sports

d.

Travelling to gain sports knowledge.

4. One of the forms of adventure or tourism in extreme environment is:

a. Visit to museums

b. Mountain Biking

c. Visit to restaurants and bars

d. Bird watching.

5. Pilgrimage tourism helps in:

a.

Purification of mindb. Purification of outer body parts

c. Purification of inner parts

d. Purification of mind, body and soul


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6.

Find the correct statementa. The majority of international tourism is by car.

b. Sea travel is the most common transport mode for leisure tourism.

c. Most tourists travel by air.

d. Surface transport is more popular than air transport.

7. As per the tourist definition, what is the maximum allowable length of stay in

any particular destination before you cease to be counted as a tourist?

a. 6 Months

b.

One yearc. One day

d. One month

8. Which of the following best describes the concept of leisure?

a. Free time.

b. A feeling of time pressure.

c. An attitude of being free to choose.

d. A waste time.


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Unit 3

Marketing of Tourism

Q1: Explain the meaning of Tourism Marketing?A1: Tourism marketing can be described as a process where both marketers and

tourists enter into an agreement for exchanging certain benefits and thesebenefits are evaluated by both the parties beforehand. Tourism marketing can

also be described as a managerial process which includes the activities ofplanning, organising, directing and controlling of marketing responsibilities.

Q2: Explain the need of Tourism Marketing?A2: The following points illustrate the need of tourism marketing:

1) Raising awareness of the consumers about the product of the service is

extremely important. Tourism marketing helps in bringing the attention if the

consumers towards the different aspects of the tourism product.

2) It helps in motivating the consumers by tapping into his wants. Effective

tourism marketing helps convince the customers to make use of the product

or service.

3) It helps in promoting the image of a particular region or country. If done in

an effective way, it can even manipulate the view that tourists have regarding

a country and alter their perceptions and persuade them to visit them.

4) Hospitality is one of the major areas of the tourism industry. Consumers

while selecting tourist destinations make sure that they provide high quality

hospitality. This can again be ensured by tourism marketing which helps

portray the standard of hospitality expected by them.

Q3: What do you understand by the term Marketing Mix?

A3: Marketing Mix can be considered as a combination or mix of tactics used to

effectively market a target audience. It can also be defined as the combination of

efforts, elements and tools used to achieve the marketing objectives. It is very


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essential for the businesses to provide the right offers to the right customers with

the right prizes and at the right time and marketing mix is the key to it. It helpsin responding positively to the external environment that is highly uncertain as

well as uncontrollable.

Q4: Give a brief explanation of marketing environment in the context of tourism

industry?

A4: Tourism is an industry that is highly susceptible to the external forces and any

time mishaps like wars, terrorist attacks and natural calamities can break out.

This will create a visible and immediate impact on the flow of tourists. Therefore,

an in-depth study of the marketing environment is extremely essential to addressthese issues and maintain the consistency in business.

Tourism marketing can be considered as open systems consisting of a number of

inter dependent entities. The tourism marketing environment can be classified

into the following.

1) Internal Environment: It refers to the core system and is controllable by

the firm. It is the particular organizations responsibility to alter and adapt

to the changing requirements of the external environment. E.g. Indianairlines started apex and discounted fares with the entry of other private

and low cost carriers in order to adapt to the changing environment.

2) External macro Environment: It is considered to be the nearest marketing

environment that directly affects the tourism marketing activities. It

includes the following

a. Intermediaries: They are known as middle men who are utilized by

marketers to reach to wider market places. They serve as a link

between the firm and the tourists. They are also termed as agents

and if they acquire a dominant position and take control of themarkets, the principals approach will have to be changed

accordingly.


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b. Suppliers: tourism product is a mix of various services like

transport, accommodation etc which are procured from differentsuppliers. If any change is observed in the quality, price and

availability of these inputs the product and its marketing will also

change automatically.

c. Competitors: a companys strength and weakness can be decided

by its competitors. It forces the firm to bring changes in its

marketing approach. The competitors may be similar fields, related

fields or sometimes unrelated ones thus suitable strategies need to

be devised to face such competition.

d.

Interest Groups: The tourism activity many times creates problemsfor culture, ecology and society. So it is the duty of the interest

groups to address these issues and ask for promoting eco tourism.

e. Tourists: Marketing strategy is largely decided by the consumers or

tourists as it all starts with their needs. Therefore any change in the

attitudes, profile and behaviour of the consumers will have an

impact on marketing for example, with the increasing popularity of

international education, student tourism is increasing

3)

Macro Environment:The larger environment where the tourism activitytakes place is termed as macro environment. The changes that occur have

a direct impact on tourism or the impact is through the micro

environment. It includes the following

a. Political Environment: Tourism Marketing can be influenced by

the political environment which includes pressure groups, rules

and regulations, policies and legislations.

b.

Economic environment:Any economic activity gets influenced bythe economic environment of a country. The important

developments in a countrys economy such as growth of new

sectors, growth of overall economy, easy availability of foreign


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exchange, tax structure and inflation affects the tourism industry

and its marketing.

c. Social environment: The buying patterns of the tourists and

societies response to tourism can be judged by the social

environment. Some of its major elements are group behaviour,

changing mindsets of people, increasing role of women,

demography and life style changes.

d. Technological environment: technology has brought drastic

changes in the tourism business. With faster transportationtechnologies, tourists can easily move to far off places. With the

onset of online distribution systems and internet, payment and

distribution mechanism has become easier.

e. Natural environment: Natural resources and climate are

considered as key resources of tourism industry which needs to be

managed effectively. Tourism industry has given rise to problems

of deforestation, inequitable usage of resources and urban

problems. Thus, it is a need of tourism marketing to promotenature friendly practises.

Q5: How is Market Segmentation done in the tourism industry?

A11: According to Victor T.C. Middleton, Market segmentation is the process whereby

producers organise their knowledge of customer groups and select for particular

attention, those whos needs and wants they are best able to supply with their

products.

Hence market segmentation involves dividing the prospective markets into

easily identifiable groups.Market segmentation is essential in tourism industry because all tourists are

different with different wants and desires. Tourist market segmentation can be

done on the following grounds.


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1.

Geographic Factors: tourism is an activity which involves Millions ofpeople from different international boundaries. As a result, their needs,

attitudes and desires also differ as per their geographic regions. These

varied needs of tourists coming from different geographic regions must be

identified and then segmented into homogeneous groups.

2.

Demographic Profiles: This is also a vital factor for the development of

tourism product or service. This involves segmenting the market on the

basis of age, income, sex, lifestyle, family size, religion, education,

nationality and so on... The wants and preferences of the consumers aremostly associated with these demographic profiles.

3.

Psychographic Grounds:This refers to dividing the groups according to

their lifestyles, social status and especially personality characteristics. In

personality traits, there may be people for whom money is not a constraint

and their interest is to visit new and adventurous places every time.

Another group could be people who wish to spend by visiting repeated

places.

4.

Behavioural Grounds: Segmentation is also done on the basis of

behaviour of participants.

The various behavioural variables used in tourism market segmentation are:1.

Occasion for Travel: Tourist market can be segmented on the basis of

occasion used by the participants for travelling. For instance, they can be

segmented as leisure/holiday market, business tourist market, adventure

tourist market, visiting friends and relations market, heritage tourism

market and so on.

2.

Benefit Derivation: This refers to segmentation done on the basis of

different benefits identified by the customers. Kotler has given a better

classification of segmentation on the basis of benefits. This includes the

following:


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a.

Quality Buyers: For quality buyers, the product image is their

priority and cost is not at all a problem. They strive to draw theirbenefits from the image of the product.

b.

Service Buyers: This segment looks for product that gives best

value for money and provides a good service.

c.

Economy Buyers:This segment is more concerned with the cost of

the product and would always find ways to keep it low.

There is a further classification given by Kotler on the basis of differentbehaviouristic attitudes. It includes the following:

1.

Hard Core Loyals: This segment is extremely loyal to a particular firm and

would never think of switching to other organizations.2.

Soft Core Loyals:This segment may think of keeping one or two alternatives

for their future reference.

3.

Shifting Loyals:This segment of people gradually gives favour to any one

organization or product over the other.

4.

Switchers: This segment of people has no loyalty and keeps on switching

from one organization to another.

3.

Associated Characteristics: There can be other associated characteristics

besides benefits that can be used for segmenting the markets. They are:a.

User Status:This involves market segmentation on the basis of visits

made by the tourists like past visitor, first time visitor, repeat visitor,

potential visitor etc.

b.

Usage Rate: This is segmentation on the basis of frequent usage of

services.

c.

Loyalty Status: This segment consists of loyal people who are not

affected by the various allurements to shift to other service or product.

4.

Buyer Readiness Stage:This is a very important stage to be studied by the

marketers as it helps them to launch their product at the right time. For e.g. If

special packages for families have to be launched, then it should be at a time


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when they are having a vacation. That would be the readiness stage and they

would be able to make use of the service.

5.

Attitudes: Degree of enthusiasm is also an essential factor in buying a

product or service. Tourists must be classified on the basis of enthusiasm,

hostile or indifferent, positive attitude etc.

6.

Price Factors:On the basis of price, tourism market can be segmented as high

spenders, low spenders and moderate spenders.

Apart from these, there can be other variables that can be used for segmentingthe tourist market. These include the distance travelled, duration of trip, time of

travel, travel for religious purposes, organization of trips etc.

Q6: What is Marketing Communication in the context of tourism industry?

A6: The tourism industry has played a major role in contributing to the worlds

economy. The industry is expected to grow even more in the years ahead due to

its market impact on balance of payment, employment and economic stability for

both developed and developing countries.

The economic as well as non economic benefits offered by the tourism industryin forcing the tourist marketers of various nations to attract more tourists to their

countries. It is important for the tourist marketing managers to understand the

travellers perception so as to ensure and understand that the tourism product is

accepted and recognized by them. In order to achieve all this, the marketing

managers needs to spend considerable and quality time in marketing

communication and promotion.

Pickton and Broderick has defined marketing communication as a conversation

between the brand and its audience and it is the collective term for all thecommunication functions used in marketing a product or service.


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CASE STUDYTourism in Madhya PradeshOf late Madhya Pradesh was not considered as a hotspot tourism destination. This doesnot imply that the state is lacking in cultural heritage. On the contrary, its culture isvery much colourful and vibrant and is carved out by the contribution of different tribalcommunities. The arts and crafts of the state provide a clear illustration of the tribal artform as well as the traditions of the people. A good amalgamation of religion can beobserved which includes the Hindus, Christians, Jains, Muslims, Sikhs and Buddhists.Music and dance forms also encompass the rich heritage of the state. The cuisine of the

state is basically hot and spicy and has a small touch of Gujrati and Rajasthani dishes.The culture of Madhya Pradesh is enriched by fairs and festivals celebrated allthroughout the year.Inspite of such charming culture, tourism failed to get a stand in the state. So, variousefforts were made to boost tourism in the state. The main objectives included:

To motivate people to visit Madhya Pradesh.

To raise knowledge and awareness about the rich culture and hotspots for

tourists.

To initiate conversation regarding tourism in the state.

The state Government started making use of different platforms for the tourismpromotion which included promotion and knowledge sharing through Face book, youtube and Flickr. This was followed by the identification of the target group. 75% of thepeople were identified in the age group of 13-25 and the strength of the males wasfound twice the strength of the females. Target group was also identified on the basis ofbehavioural patterns which included outdoor and photography enthusiasts and travelenthusiastsMarketing was done by delivering content on the internet through images, wall posts,questions and videos. Many positive responses were received which included:

80-90%feedback in positive ways

Effective resolution of queries.Increased viewers on You Tube, Flickr etc.

Flickr interactions rose to more than 800.

Post views generated were more than 1.9 million.


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Questions:1. Explain how marketing communication promoted the growth of Madhya

Pradesh tourism?

2. How helpful is market segmentation in tourism development. Explain in

reference to case.


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Multiple Choice Questions1. Tourism marketing is:

a. An emotional process

b. An international process

c. A managerial process

d. An economic process

2. Marketing Mix is:

a.

Combination of various marketing tacticsb. Mix of target customer groups

c. Combination of different prices

d. Mix of different promotional techniques

3. Marketing environment in tourism industry involves:

a. Only internal environment

b. Only external macro environment

c. Both internal and external macro environment

d.

Internal, external macro environment and macro environment.

4. Market segmentation in tourism industry refers to:

a. Segmentation of the target audience into identifiable groups.

b. Segmentation of various services

c. Segmentation of audience only on the basis of age

d. Segmentation of the audience only on the basis of religion.

5. Market communication is used for:

a.

Promotion of tourism productb. Pricing of tourism product

c. Identification of target group

d. Identification of tourist preferences.


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6.

What does the acronym TSA stand for?a. Tourist Satellite Account

b. Tourism System Account

c. Travellers Security Association

d. Tourism Satellite Assessment

7. What are travel motivators?

a. The inner urge that initiates tourism demand.

b. Mental impression.

c.

An artificial view of the world.d. A negative reaction.

8. What does the word perception mean?

a. A negative reaction.

b. Travel motivation.

c. An artificial view of the world.

d. Mental impression


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Unit 4

Seven Ps of Tourism Marketing

Q1: Explain in detail the Seven Ps of Tourism Marketing?A1: Marketing the tourism products effectively is a very difficult task and different

from other products because whatever is sold is not a tangible product but theconsumption of an experience. Therefore, a perfect marketing mix is essential toachieve the objectives of tourism marketing. It includes the following:

1.

Product:Product is the offer given by the marketers to satisfy the needs

and wants of the customers. It includes the variety of the product and

assortment, features, quality, brand name, style, warranties and

guaranties etc. Marketing can be successful only when the distinguishing

features of the product or service is communicated to the customer

effectively. A tourism product has two components namely attributes

which includes transport, rooms and conference facilities. Another

component is benefits which mean whatever the customer wants to

achieve by making use of the product such as learning, relaxation and

exploration.

2.

Price:The monitory value of any product is termed as price. It is paid by

the buyer to the seller and includes discounts, credit terms, allowances,

payment period etc. A number of considerations need to be made while

pricing a tourism product or service.

a. The actual cost involved in providing the product which includes

time of staff, commissions, overhead costs like water, electricity etc.

b. Understanding industry standards which involve knowing what is

being charged by other establishments for similar products and

what the market will sustain.

c. Understanding the profit market after determining all types of

costs.


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d. Taking into considerations the standards and image of product like

luxury or budget accommodation.e.

Ensuring value of money by providing quality products worth its

value.

3.

Promotions:promotion refers to the different tools and methods devised

to provide product information to the customers in order to persuade

them to make a purchase. A combination of different methods is used to

yield better results which include personal selling, advertising, sales

promotion and public relations. It is very important to keep certain

considerations in mind while selecting tools of communication for tourismproducts. They are

a. The type of communication channel that will best reach the target

audience.

b. The objectives of communications

c. The most cost effective method of communication

4.

Place: It reflects to the distribution of products to the consumers which

involved product movement from sellers to buyers as well to differentstorage locations for making them available at the right and convenient

time. In tourism management, it includes creation of facilities closer to

tourists so that they can purchase the tours. Two categories are of

distribution methods are used in tourism marketing and they are

a)

Direct Distribution : In this it is the companys sole responsibility

to take the products to the market

b)

Indirect Distribution: In this type of distribution less control isexercised by the company. The charge is handed over to some local

authority for tourism and it becomes their responsibility to take

bookings as well as putting some potential customers in the direct


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contact with the company. Typically a service charge can levied for

the same.

5.

People:The human element involved in the service experience is termed as

people. The quality of services provided largely depends on the people

employed in the organisation. Tourism is an industry where service forms

the major part of the product offerings. Therefore it is highly essential that

the employees dealing with customers must do excellent service delivery at

all times. In order to achieve this, it is needed to boost staff professionalism

through proper staff training and employee rewards and recognition system.

6.

Process:The process involved in any service delivery decides the satisfaction

level of the customers. It involves the task schedules, procedures,

mechanisms and activities through which a service or product is delivered to

the customer. When it comes to tourism many businesses are involved in

running the end to end process which involves administration, planning &

strategising, training, recruitment, purchasing and distribution and service

delivery. It must be ensured that there is a planned and effective

implementation of the various processes for the smooth running of

operations. For e.g.: In a hotel industry, effective front and back officecommunication is required to ensure timely delivery, high quality and higher

overall customer satisfaction.

7.

Physical Evidence: Physical evidence helps in creating tangibility for the

intangible products. It helps in portraying a better image through physical

pressure like decor, buildings, uniforms etc. At the same time compatibility

with the product image must also be ensured for creating this evidence.

In Tourism the physical evidence refers to the tangible attributes of theseoperations. Portraying such tangible attributes of the products helps in

conveying attractive and positive hints to the potential customers regarding

the product quality. For e.g.: If any shuttle service is being run, then it must


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be ensured that the vehicle must be clean at all times. Such quality and

attractiveness of decor, tidiness of surroundings, effective layout ofestablishment, and quality of promotional material are extremely important

in generating positive outlook in mind of tourists towards the organisation.

CASE STUDY

Development of Tourism with Focus on Spiritual Tourists

Context to Case: The largest contributors to domestic tourism for a particular region inIndia were Religious Tourists. A Lot of People visited this destination for religiousreasons and not necessarily for leisure tourism or business tourism.

Key Facts: More than 70% of the domestic Tourists were visiting for religious tourism.20% of the Tourism revenue generated in the state was from religious tourism. Out oftotal 14 locations, 3 locations contributed to 33% of all tourists visited in the state.

Goal / Mission Statement:

The Tourism board was assigned with the task to grow religious tourism in the regionand leverage tourists to also pursue leisure tourism in the region.

Key Challenges that needed to be addresseda. Loss of authenticity due to encroachment: Unplanned visitor and illegal

encroachments are growing in the vicinity of these sites. Encroachment on the

walkway disturbs the pedestrian movement.

b. Unregulated visitor behaviour: Overcrowding and unregulated tourist

behaviour seriously hampers the visitor circulation at some of the temple

precincts. These sites do not have a basic visitor management system in placeand Lack of adequate manpower to regulate the mass of visitors especially on

weekends and holidays.


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Key Development Strategies initiated1.

Infrastructure Development:

a. Developed excellent Road Connectivity between Major Cities of the state

and the religious tourists destinations

b. Developing Utility Infrastructure by providing toilets, waiting

shed/pavilion, cafeteria, clean water supply, street furniture for the

comfort of tourists.

c. Parking space and vehicular movements at temple sites developed around

and within temple facility and Proper signage were built to orient the

visitors efficiently by augmenting signage system at vantage points of the

location.

d. Single point of Information and interpretation centre developed for

servicing tourists to ensure that dont feel lost or not helped. This would

also provide visitors a synoptic depiction of the area, exhibits on flora and

fauna etc. It will also act as a documentation centre for spiritual

researchers.

e. Provision of a range of accommodation units such as luxury resorts,

budget hotels and camping tents catering to varied customer segments.

2. Enhancing The Core Appeal Of The Destination: To enhance the spiritual

experience of the tourists, Expos and pavilions were built alongside religious

destinations to familiarize the visitors with the history of the temples, its

importance and its relevance to the present society to stimulate an inquiring

mind about the profound philosophical subjects on India's source books of

wisdom. The entire process of tourism development was focused to revolve

around this core appeal

3.

Private Sector ParticipationThe Tourism Policy of the Government laid special emphasis on maximum

participation of the private sector in making Investments in tourism projects. It

provides tangible livelihood options to local people such as hotel personnel,

guides, porters, watchmen, maintenance workers and other service providers.


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The local community members are also involved in managing small business

enterprises like cafeteria, souvenir shops, travel and transport services, craftshops etc.

4.

Developing Team: New Talent was recruited to lead the new initiatives and they

along with the existing staff were trained on Tourism services and were educated

on gaining higher revenues by increasing customer delight.

5. Building the Local Tourism as a recognized Brand: Marketing and advertising

efforts were made on destination awareness through extensive media campaign

targeting high-spending tourists both domestic and international. Linkages of thesurrounding destinations around the pilgrimage were drawn and advertised

resulting in people staying longer to visit the near destinations. These Marketing

initiatives were undertaken through the following media sources

a. A brand Salience was created by endorsing a celebrity figure to be

associated with the Tourism and thus creating a tourism brand name

along a punch line. This helped people to associate with the Brand

b. Promote e-marketing of the destination through a dedicated website and

other travel portals.

c.

Develop co-operative marketing partnerships with specialized touroperators and travel agents.

Key Outcomes of the Initiatives: New Infrastructure and Effective TourismManagement attracted a lot of Domestic tourists and also aided the growth ofinternational Tourism. Number of domestic Tourists Grew by 60% & revenue generatedfrom Tourism Industry grew by 1.5 Times in the space of Three Years

QuestionsQ1) Identify the 7Ps of Marketing and identify how these have been used most

extensively the above Case?


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Q2) Certain steps were taken by the Tourism Board to increase awareness of thetourism destinations. Please identify any 2 more additional marketing activitiesthat the tourism board could have undertaken to further enhance Brand Buildingand elaborate on your identified steps.

Q3) Identify and elaborate on any additional initiatives that the Board could haveundertaken while building infrastructure to further enhance spending andgrowth of tourism.


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1) What are the two components of a product?

a. Attributes and benefits

b. Warranties and guaranties

c. Quality and brand name

d. Style and features

2) Price can be termed as:

a. Monitory value of a product.

b. Value paid by seller to buyer.

c. Profit made by any establishment.

d. Overhead costs like water, electricity etc.

3. Promotion in tourism refers to:

a. Tools used to market tourism product.

b. Methods used for customer satisfaction.

c. Methods used for quality improvement.

d.

Research and development of new products.

4. Indirect distribution refers to:

a. Distribution of product by the company.

b. Distribution of product by some local authorities.

c. Distribution by international organizations.

d. Distribution of products by other outside organizations.

5. The purpose of business is to:

a.

Attract new customersb. Maximise short term profit.

c. Boost short term sales.

d. Create and maintain profitable customers.


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6. The two main industries that comprise the activities that we call tourism are:

a.

Hospitality and travel industriesb. Computer and internet industries.

c. Fashion and accessories industries.

d. Furniture and home improvement industries

7. Which of the following are not considered part of the hospitality service

industry?

a. Hotels and motels.

b. Car rental companies.

c.

Travel agents and tour operators.d. Advertising agencies.

8. All the following statements are true, except:

a. If a product falls short of customer expectations, customers are

dissatisfied.

b. Care must be taken by the marketers to set the right level of expectations.

c. Cost includes both monetary and non-monetary costs.

d. Marketers have no control of customers expectations.


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a new policy on tourism was drafted in accordance with the Governments

economic policies. The policy recognises the role of the State and CentralGovernment as well as private and public enterprises in developing tourism. A

need for the role and involvement of local bodies, Panchayati Raj institutions,

local youth and other non-governmental organizations has also been recognised

for the creation and development of tourism facilities. The year 1966 saw the

major development in the tourism sector with the coming up of the India

Tourism Development Corporation for promoting India as a recognised tourist

destination.

Also the Tourism Finance Corporation came into existence in 1989 for financingdifferent tourism related projects. As tourism industry remains incomplete

without hotel and catering services, a number of institutions came up in

connection to that. This included 21 Hotel Management and Catering

Technology Institutions run by the Government and 14 Food Craft Institutions.

Apart from this, there are various prestigious institutions involved in the growth

of tourism in India which includes Ministry of Tourism having 21 field offices

within the country and 18 offices abroad, National Council for Hotel

Management and Catering Technology, Indian Institute of Tourism and Travel

Management, Indian Institute of Skiing and Mountaineering as well as theNational Institute of Water Sports.

Some other initiatives taken by the Government for boosting tourism are as follows:

1. Granting of export house status to the tourism industry.

2. Incentives in the form of income tax exemptions, reduced import duty and

interest subsidy in order to promote private investment.

3. Up to 51% approval of direct investment of foreign equity.

4. Non-resident Indian investment up to 100%.

5.

Easy legislation regarding grant of approval to tour operators, travelAgents and tourist transport operators.


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Q2: What are the potential barriers to the growth of tourism in India?A2: Although India is doing well in the tourism market, it has failed to compete

effectively with countries like Malaysia, Thailand, Singapore, China, Hong Kongetc which are far ahead in the tourism field. Some of the major barriers to thegrowth of tourism in India are:

1.

Inadequate Infrastructure: The greatest bottleneck in the growth of

tourism is the inadequacy of infrastructure which involves less carrying

capacity by road, air and railways, inadequate comfortable and clean

lodging facilities at affordable prices, shortage of trained tourist guides

and tourist amenities at major tourist attractions, inadequate entry points

etc.

2.

Budgetary Support: It has been observed that there is inadequacy ofresources for improving the infrastructural facilities. Tourism sector has

always been lacking budgetary support because of pressing demand from

other sectors. A better co-operation between trade and the Government

agencies is required. Government should try to reduce luxury taxes on

hotels, road taxes etc so as to bring down the prices of the tourism

product. Private sector investments must be given importance for the

development of tourism.

3.

Trained Personnel: Tourism being a service industry, service excellence

generated by trained personnel brings in a lot of difference. One of themajor issues that the tourism industry of India is facing is the shortage of

trained personnel. Tourists mainly depend upon guides, travel agents etc.

But statistics have shown that, trained professionals, to cater to the needs

of the tourists had been inadequate. Therefore, it is extremely essential for

the Government to encourage and develop different training facilities so

that the tourism objectives can be achieved.

4.

Quality Research: India is lacking in quality research which is also a

major constraint in the growth of tourism in the country. If importance is

given to quality research input, much better strategies can be devised for

marketing tourism products.


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5.

State of Health Tourism: Lack of proper and quality services offered by

the Indian hospitals acts as a hurdle in the growth of tourism. As a resultpast years have seen a sharp decline in health tourism.

6.

Site Maintenance: Maintenance of the tourist attractions in India is a

serious handicap. The increasing pressure of visitors has almost damaged

the priceless heritage of the country and the fund required for

maintenance and restoration is limited.

7.

Cheating of Tourists: This is a major constraint in India in the way for

development. The travel agents and hoteliers, who are supposed to be

supportive to the tourists, harass and cheat especially the foreign tourists.

This brings in a bad image for the country and paralyses the growth oftourism in the country. Therefore, the problem needs attention and

rectification.

Q3: Throw light on the Tourism Policy of India?A3: The tourism policy was announced by the Government of India in the year 1982.

After years of improvement over this, a new Draft National Tourism Policy cameinto existence which pledges to make travel and tourism a crucial instrument forpoverty alleviation, human development and employment generation. Some of

its features are:1.

The Mission: The main mission is the promotion of sustainable tourism

and promoting the image of India as a country having a glorious past, a

vivacious present and a bright future. It aims at making the stay of foreign

tourists in the country, a memorable event, so that they are forced to make

repeated visits.

2.

Peoples Participation: This is being encouraged under the policy which

includes participation of Panchayati Raj Institutions, co-operatives, local

bodies, enterprising local youth and non-governmental organizations in

tourism development. The Government encourages a constructive

partnership between the private and public sectors through all means for

consistent growth of tourism.

3.

Governments Role:The role of Government in promotion of tourism has

been recognised primarily in the policy. This is because tourism is a multi


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sectoral activity which gets impacted by the other sectors of the economy.

Governments specific role comprises of providing infrastructural facilitiesincluding zoning arrangements and local planning, rationalization of

taxes, safety and security of tourists, compatibility of tourism

development with environment, research and preparation, facilitation and

formulation of different marketing strategies.

4.

Private Sector: The role of private sector has also been given importance

in the policy. The private sector needs to consider investment in the

tourism industry from a long perspective and ensure creation of required

facilities like accommodation, restaurants, shopping complexes,

entertainment facilities etc. Also, the private operator role has beenrecognised in other non core activities at major stations, airports, interstate

bus terminus such as luggage transportation, maintenance and

cleanliness, vehicle parking facilities etc for increasing the efficiency and

profitability.

5.

Integrated Development of Tourist Destinations: Development of new

tourist destinations and increasing the various facilities at existing

destinations also forms a major part of the draft policy.

6.

Tourism Economic Zones: Creation of such zones with private

participation has been encouraged in the policy. These zones will haveeasy connectivity from both domestic and international destinations.

7.

Tourist Circuits and Special Tourism Areas: 25 travel circuits and

destinations have been identified and various areas have been identified

as special tourism areas like Bekal Beach, Sindhudurg, and Puri-Konark

etc. for integrated development.

8.

Areas of Special Interest: Some areas have been identified by the

Government as areas of special interest for development of tourism. These

include the Himalayan Region, North Eastern States and Union

Territories. This is basically for achieving an overall development of theseregions.

9.

Sustainable Development: Government has ensured sustainable

development of regions through appropriate planning instruments,


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regulations, guidelines and their enforcement. The objective of the policy

is also to evolve specific guidelines and policies for the development ofadventure tourism, ecotourism etc.

10.

Promotion and Marketing: A well laid out promotion and marketing plan

has also been worked out as a part of the policy in order to achieve the

overall tourism objectives.

11.

Diversification of Tourism Products: The policy aims at diversifying the

tourism products in order to reach to a larger section of people. The

options include beach tourism, science tourism, health tourism, cruise

tourism and so on.

12.

Professional Excellence: The policy aims at creating professionalexcellence by strengthening human resources development institutions.

This includes setting up of Advanced Institute of Hotel Management and

Culinary Institute as well as improvements in other existing training

institutions.

13.

Information Technology: The Draft Policy asserts the importance of

making use of advance information technology to foster the growth of

tourism sector.

14.

Safety and Security: This is given primary importance and suitable

legislations will be enacted with the co-operation of the Central and StateGovernments for the protection and safety of tourists.

15.

International Co-operation: The policy aims at fostering partnership with

all international agencies and countries and strengthening tourism

promotion through bilateral and multilateral agreements.

Q4: What are the benefits derived from Tourism?A4: The benefits derived are mentioned as under:

1.

Economic Benefits: Economic benefits can be in direct or indirect

form. Direct benefits include generation of employment income andforeign exchange which brings improvement in the standard of living

of the local community and helps in the regional and national

development. Government revenues generated through taxation on


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tourism can be helpful in developing community as well as

infrastructural facilities.Indirectly, tourism paves the way for the development of other

economic sectors like agriculture, construction, fisheries, handicrafts

and manufacturing. Improvement in transportation is also a major

socio-economic benefit that helps serve regional, community and

national needs. Tourism also helps provide an opportunity for

emancipation of women in traditional societies through training and

development.

2.

Preservation and Conservation of Cultural Heritage: Tourism helpspreserve the cultural heritage in the following ways:

a. Tourism helps generate income for the conservation of various

historic and archaeological sites. The revenue generated can also

be utilized for archaeological research, thereby strengthening

the tourism industry.

b. It helps in revitalizing and conservation of traditional arts,

handicrafts, music, dance, customs and ceremonies, drama etc.

c. It leads to conservation of certain significant natural area that

would have been otherwise allowed to deteriorate ecologically.For e.g. Marine conservation is receiving greater attention as a

result of increased tourist attraction.

3.

Renewal of Cultural Pride: Tourism helps generate a kind of cultural

awareness. A sense of pride seems to be reinforced or renewed by the

residents when tourists appreciate about the country and its cultural

heritage. In a country, where we have a vast mix of various cultures,

the cultural identity of different minority groups can be maintained

through regional tourism.


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Q5: What are the Challenges of Tourism Marketing?A5: Tourism being a service industry, often faces more marketing challenges. This

often calls for additional creativity for successful marketing of services. Some ofthe challenges are as follows:

1.

Marketing Intangibles: The marketer does not have the advantage of

demonstrating the physical characteristics of a product but an effective

explanation of an intangible product is required. It would be difficult for

the prospect o determine the value of services in relation to price.

2.

Developing Price: When it comes to tourism marketing, it becomes a

difficult task to generate the element of trust in the prospective customers.

The marketer must appear trustworthy while communicating with the

customers and posses effective skills in order to convince the customers.

3.

Extra Competition: Competition is also a major challenge as service

providing companies are striving hard to outshine others and gain

competitive advantage in the market.

4.

Emphasize on Service instead of Features:Tourism marketers have the

challenge of emphasizing upon the customer service aspect of whatever

they are selling and not its features. This would greatly depend upon the

extra professional skill of the marketer.

5.

Creating a Need:The creation of need to make use of a particular service

by the customer is also a great challenge. The tourism marketer has to

make the customer feel that the service they are undertaking is actually

their need.


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CASE STUDYImproving the Tourists Experience

Serbia is among Europes most attractive tourist destinations and a lot of tourists acrossthe world would travel to the city to witness its beautiful and historically richarchitecture and monuments. Bulks of International tourists that arrive in the city comefrom USA. The city was facing issues with managing the tourism as most of it wasbeing run on its own without any proper management. Serbian Tourism associationdecided to track their success metrics for 2 years and realized that on an average there

were roughly 93000 tourists visiting the city every month and on an average everytourists would say in the city for 2 days before he/she would travel back.These statistics were extremely exciting but the city also realized that this number wasdeclining every month and this was a cause of concern for the authorities. Soon acommittee was set to perform a root cause analysis of the declining trend in tourismand was tasked to come up with key recommendations for improvement.The committee took several steps to understand the current situation but none of themwere helping to get to the actual cause. They eventually surveyed the tourists who werevisiting them and also reached out to tourists who had visited them to fill up onlinesurvey form which would enable them understand the key cause of concern.Some of the main deltas and positive points that were highlighted in the survey were:Positive Points

Serbia was rich in natural beauty which attracted a lot of first comers.

Serbia being easily accessible by the tourist within Europe meant that people

would be able to commute between the main cities and Serbia easily.

Deltas Identified were

Tourists specially people who travel more often identified that Serbia doesnt

have a culture of tourist service. Most of the tourists identified that they had

one or more incidents while during their stay in Serbia which they felt

offended about but they also said that this could be because of culturaldifferences between the two countries.

Tourists clearly identified that they did not feel homelike in Serbia and thus

they would rather prefer to visit a new location than to come back to Serbia.


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Tourist also identified that Serbia doesnt have quality infrastructure to

service them. E.g. Recreation halls, Good Hotels and Restaurants.

The results of the survey immediately highlighted that Serbia was definitely a soughtafter tourists destination because of it natural beauty but the focus had to be to increasecustomer experience for Tourists visiting Serbia so that they could plan to visit Serbiamore often and simultaneously also spread the news about Serbia so that new touristsalso visit.Once there was an agreement on the potential issues that the city tourism was facing,the next task in hand for the committee was to bring forward key recommendations toimprove on its current state and bring Serbian tourism back to its growth path.There were some recommendations that were presented by the Committee in front ofthe city which were immediately accepted and approved for implementation alongapproval for required budget for implementation.Their Key recommendations were

A. Training and Development: Committee recommended that the Tourist

guides needs to be trained by the authority and only certified Tourists

guides were to work with the tourists. The tourist guides were given

Tourism Serving Certification licenses to operate and this was strictly

regulated and monitored. There was another training opportunity

identified and that was to train everyone who was in customer facing jobsand they were to be trained on cultural etiquettes. Committee also

recommended that every employee or business owner who was to

eventually interact with customers needed to undergo this training.

B. Developing and Managing Infrastructure: The city developed community

centres, Parks, recreation grounds/Halls, Kids Zone and other amenities

for servicing tourists. Hotels and restaurants were to undergo strict

procedures to receive Internal Certification of Service Quality licenses.

Every privately owned institute in Serbia had to have basic infrastructureavailable with them to be able to service any tourists visiting them. All the

tourists entering Serbia were educated on the standards so as to enable

them to make best judgement.


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There were several other initiatives undertaken like marketing activities, evaluation ofservice quality, language aid etc.All of these efforts put together aided Serbia Tourism to come back on its growth path.They developed a method to measure success and that feedback scores from visitingtourists. They would now track if the tourist were happy with their visit, if they had anyspecific areas of concern, whether they will plan to come back again and if the touristwould recommend Serbia as a preferred tourist destination among their peers /friendsand influence groups.

Questions

1: Please suggest if focusing on marketing activities would have further helped growtourism in Serbia in this situation. Please base your judgement with logical reasoning.2 : Assuming that there were tourism seasons impacting the count of visitors duringcertain times of the year then What could have Serbia further done to attract repeattourists and to best utilize available resources during non peak Months?


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1) The tourism campaign launched in India for the promotion of tourism is named

as:

a. Fabulous India

b. Inconceivable India

c. Incredible India

d. Unbelievable India

2) Common interest tourism includes:

a.

Business Tourism

b. Visiting friends and relatives

c. Leisure Tourism

d. Conference Tourism

3) Long haul tourism refers to journeys more than:

a. 500 kilometres

b. 1000 kilometres

c. 3000 kilometres

d.

2000 kilometres

4) Name the statistics that calculate the number of tourists travelling to a particular

destination at a given time?

a. Statistics of tourist characteristics

b. Volume Statistics

c. Resource Statistics

d. Expenditure Statistics.

5)

The code of ethics for tourism to be adhered globally was drawn by:

a. World Tourism Organization

b. World Trade Organization

c. World Travel and Tourism Council


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d. World Travel Organization.

6) Travel propensity is considered a measure of:

a. The ratio of day trips to overnight visits

b. The percentage of population engaged in tourism.

c. The tourism market share

d. Travel frequency of a population.

7) Wanderlust refers to:

a. Desire for sunshine

b.

Curiosity for experiencing different destinations.c. Desire for a better climate.

d. Desire for rest

8) Tourism planning ensures:

a. Flow of benefits to a destination

b. Increase in negative impact

c. Increase in conflicts between residents and tourists

d. Tourism will be disadvantaged


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KEY TERMS

Economic Development:Economic Development is a comprehensive term that refers to

progressive changes in a countrys socio-economic structure. It ensures the

development of economic wealth for the well-being of its residents.

Social integration: Social integration can be defined as a principled and dynamic

process where members participate in a conversation to maintain peaceful socialrelations. Social integration can never be forced or coerced.

Intangibles:It is an abstract concept which refers to anything that cannot be touched or

is immaterial.

Sustainable Development: Sustainable development refers to a pattern of economic

development which involves effective utilization of resources to meet the human wants

while conserving the environment. It is a long term perspective aimed at meeting not

only the present but the future needs as well.

Bilateral and Multilateral Agreements: Bilateral agreement refers to the mutual

agreement or contract made between two parties or countries regarding any issue.

Multilateral agreement involves more than two parties or countries.

Tourism:Tourism is an activity which involves travelling by people to different placesfor the purpose of recreation, pleasure, leisure, business and so on.

Domestic Tourism: Domestic tourism relates to travelling to places within theboundaries of a particular country.

International Tourism: International tourism refers to travelling to far off placesusually outside the resident country.


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RTDC: RTDC stands for Rajasthan Tourism Development Corporation which isconsistently involved in the promotion of tourism in the Rajasthan state.

ITDC: ITDC stands for India Tourism Development Corporation and its unction is theoverall development of tourism in the country.

Foreigner:Foreigner is considered to be any person who is not a resident or citizen ofany particular country. He is regarded as an alien when he goes to other country for anyreason.

Business: Business is any activity which involves the trading of services, goods or bothto the consumers. Privately owned businesses are run with the sole aim of earning

profit whereas state owned businesses are run with non-profit motive.

Trekking: Any long adventurous journey undertaken on foot to visit and enjoydifferent and unusual places is termed as trekking. It is generally done at places wherecommon modes of transportation are not available.

Rafting: Rafting can be considered as an outdoor recreational activity in which aninflatable raft is used to navigate a river or other water bodies

Pilgrimage: It can be considered as a spiritual journey to any location according to a

persons belief or faith.

Tourism Marketing: It is a process involved in co-ordinated and systematicimplementation of business policy by private or state undertakings for satisfying theneeds of identifiable customer groups and in getting a profitable return.

Marketing Environment: It refers to the environment that surrounds an organizationand impacts its objectives and operations. It can be classified as internal, external macroand macro environment.

Marketing Mix:Marketing mix refers to various combinations of tactics or tricks usedto market a product so as to achieve the marketing objectives. In the context of tourism,marketing mix includes product, price, place, promotion, people, process and physicalevidence.


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Brand: Brand refers to any feature like the symbol, design or name of a particularproduct or service that helps in distinguishing it from other products in the market.

Balance of Payment:Balance of payment is basically a record which involves a list ofthe various transactions made between different countries. Balance of payment can bepositive or negative in nature. If there is a negative balance of payment, it shows thatmore money has flowed out of the country as compared to coming in.

Marketing:Marketing is social process where organizations and individuals create andexchange value with others for obtaining what they need and want.

Discount:It refers to proportionate deduction made from list price or regular price to

facilitate prompt payment.

Credit Terms: These are the negotiated terms that a seller offers to the buyer and whichcontrols the maximum time for repayment, total monthly amount, early payment andlate payment.

Overhead Costs:All types of costs shown on the income statement apart

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