Tourism Industry

RESEARCH PROJECT
On
HIMACHAL PRADESH TOURISM
“Tourist Satisfaction on Himachal Pradesh Tourism”

& Himachal tourism industry analysis
Submitted in partial fulfillment of the requirements of
Post Graduate Degree of MBA
by
Virender singh
(2008-20010)
Under the guidance of

Mr.Shashi kapoor
(Faculty UBS Ludhiana)
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY REGIONAL CENTER , LUDHIANA
Date…………
CERTIFICATE
To be certified that Virender Singh has successfully completed Project

Study entitled “tourist satisfaction of Himachal Pradesh tourism “under
my guidance. It is his original work, and is fit for evaluation in partial
fulfillment for the requirement of the Two Year (Full-Time) Post Graduate
Degree in Management
Virender Singh Mr. Shashi Kapoor
Faculty UBS Ludhiana

ACKNOWLEDGEMENT
The satisfaction and joy that accompany the completion of this task is
incomplete without mentioning the people who made it possible. And so, I
would like to thank all those who have supported and guided me to
successfully complete this project.
I would like to extend my hearty gratitude to my project guide Mr. Shashi

kapoor for sparing his valuable time and guiding me throughout the project,
giving me insights and details at every step. I would also like to thanks all
the faculty members of the UBS Ludhiana and also hearty gratitude for the
HPTDC Department for giving there valuable time and there guidelines
throughout the project.
Virender Singh,
20/08 (2008-2010)
University Business School, PURC, Ludhiana
TABLE OF CONTENTS
CHAPTER I……………………………………………………………...1
Intoduction……………………………………………………………..1
Importance……………………………………………………………...4
Current scenario of India……………………………………………… 5
Type of tourism…………………………………………………………7
1. Heritage Tourism…………………………………………………8
2 Leisure And Recreation Tour……………………………………9
3 Business and Incentive travel……………………………………9
4 Adventure and holiday Tourism…………………………………10
5 Wildlife tourism……………………………………………………11
6 Pilgrimage Tourism………………………………………………12
7 Medical Tourism…………………………………………………13
8 Eco Tourism……………………………………………………..14
Advantage of tourism…………………………………………………15
CHAPTER II
The Tourism Marketing Mix…………………………………………16
1 The Product Mix…………………………………………………16
2 The Promotional Mix……………………………………………19
3 The Price Mix…………………………………………………….20
4 The Place Mix……………………………………………………….21
Extended Marketing Mix………………………………………………..24
1 The People…………………………………………………………..24
2 The Process…………………………………………………………30
3 The Physical Evidence……………………………………………..32
CHAPTER III
Quality dimension in tourism……………………………………………33
CHAPTER IV
Introduction to Himachal tourism……………………………………….36

SWOT Analysis of Himachal tourism…………………...……………38
Analysis by using Porter five force model……………………………42
CHAPTER V
Tourist satisfaction……………………………………………………..50
Research methodology…………………………………………….50
Study region
Objective
Type of Research
Research Method
Literature Review………………………………………………….53
Data Analysis……………………………………………………..57
Conclusion………………………………………………………………66
Bibliography……………………………………………………………68
Annexure……………………………………………………………….69
Questioner
CHAPTER I
INTRODUCTION
Within the Asia-Pacific region, the Indian sub-continent is well poised to

take advantage of the boom in the tourism sector.
Tourism is a very complex industry due to its multiple activities that satisfies
the need of the tourist. Tourism includes transportation, accommodation,
food, catering, tourist attraction as well as organizers like tour operators and
travel agents. Moreover, a tour consists of different requirements of different
people and it is not a homogeneous product.
UNIVERSITY BUSINESS SCHOOL,
PURC Ludhiana[Type text] Page 1

Tourism is a fast growing economic activity in many countries around the
world and plays an important role in the economic and technological
development of nations. The tourism is undergoing a sea change with the
revolutions in communication and information technology. Everybody in the
tourism industry will have to change and rediscover its place in newly
defined value chain. The role and the service offerings will undergo a big
change in the present cyber world. Therefore in the new millennium, most of
the countries including India are spending millions of dollars for the
revamping of the existing facilities or the creation of new ones.
Tourism has emerged as one of the world’s most important activities. It is the
world’s largest export industry. According to the World Tourism
Organization, about 663 million tourists traveled internationally in 1999 and
spent about US$ 453 billion. The figures indicate that tourism has certainly
become a major social phenomenon of the modern society with enormous
economic consequences. Its important as an instrument for economic
development and employment generation, particularly in remote and
backward areas, has been now well recognized the world over.
Tourism is also one of the biggest employment generating industries in

India, especially through the multiplier effect, with a capacity to absorb an
additional investment to the tune of $10 billion. According to PATA (Pacific
Asia Travel) tourism directly or indirectly drives more than 10% of the
world’s employment today.

Some of the tourism concepts are as follows:
“Tourism denotes the temporary, short-term movement of people to

destination outside the place where they normally live and work and their
activities during their stay at these destinations.”
“Tourism is the totality of the relationship and phenomenon arising from the
travel and stay of strangers, provided the stay does not imply the
establishment of a permanent residence and is not connected with the
remunerated activities.”
“Tourism is an activity involving a complex mixture of material and

psychological elements. The materials are accommodation, the attractions
and entertainment available. The psychological factors include a wide
spectrum of attitudes and expectations.”
In view of the aforesaid viewpoints of different experts, the following points

emerge regarding tourism:
• Tourism is a temporary and short-term movement of people.
• Tourism is the totality of relationship.
• Tourism is an activity involving a complex mixture of material and

psychological elements.
• Tourism is the activity concerned with the utilization of leisure hours.
• Tourism is a composite industry consisting of various segments.

IMPORTANCE
Tourism companies play a great role in the economy of the country like
INDIA. Government is making many efforts to boost the tourism activities.
Infrastructural development is given utmost importance in the recent
BUDGET so that more and more foreign tourist will be attracted. Following
points clearly shows that tourism sector is of very much importance and
helps major role in the development of economy.
 It is India’s second largest foreign exchange earning activity after

Gems & Jewellery.
 It is also world’s largest EXPORT industry.
 It is largest employment generating industry in India.
 There is high rate of contribution of tourism towards GDP.
 It also helps to increase the activities of other industries like

Transportation, Communication, Hotels, etc.

CURRENT SENARIO IN INDIA
India is a democracy at its best with more than 1000 million people steering
the path of progress. This vast land with its enormous diversity of history,
people, culture and human life, makes for a product mix that can take in
almost the entire world. The rich beauty of its ancient monuments, the beat
and rhythm of its folk and classical dances, its colorful crowded bazaars, the
grandeur of its snow-capped mountain tops, the quiet back waters and
beautiful beaches and above all its friendly and charming people make India
a land of tourist paradise. It is also a secular country with a heritage of an all
encompassing ancient culture and cosmopolitan tinge. Despite these
favorable factors, the international tourist traffic to the country still
continues to be comparatively less though there has been considerable
growth over the years and it has emerged as one of the largest foreign
exchange earners of the country.
Tourism is presently the third largest export industry in India - the first two
being gem and jewelers and readymade garments. The foreign exchange
earnings from tourism is estimated to be about Rs. 7400 crores as against
Rs. 7.7 crores in 1951.
The most beneficial impact of tourism is its capacity to generate large scale
employment opportunities, particularly in remote and backward areas. The
direct employment in the sector during 1994-95 was about 7.8 million
persons accounting for about 2.4% of the total labour force. The labour-
capital ratio per million rupee of investment at 1985-86 prices in the hotel
and restaurant sector is 89 jobs as against 44.7 jobs in the case of agriculture

and 12.6 jobs in the case of manufacturing industries. In the case of tourism,
after combining the relevant individual segments. The ratio becomes 47.5
jobs and is still higher than most other segments. It is thus clear that tourism
can play a major role in resolving the problem of large scale unemployment
in the country provided it is developed on the desired lines with major inputs
and initiatives from the Central Government.
A third impact of tourism, which is of particular significance to India, is its

contribution to national integration. Over 100 million domestic tourists
visiting different parts of the country every year return with a better
understanding of the cultural diversity of people living in different regions
and carry with them a feeling of friendship and peace.

TYPES OF TOURISM
All types of tourism in India have registered phenomenal growth in the last
decade ever since the Indian government decided to boost revenues from the
tourism sector by projecting India as the ultimate tourist spot.
The reason why India has been doing well in all types of tourism in India is
that India has always been known for its hospitality, uniqueness, and charm
– attributes that have been attracting foreign travelers to India in hordes. The
Indian government, in order to boost tourism of various kinds in India, has
set up the Ministry of Tourism and Culture. This ministry recently launched
a campaign called ‘Incredible India!’ in order to encourage different types of
tourism in India.
The result was that in 2004, foreign tourists spent around US$ 15.4 billion
during their trips to India. Being a country with tremendous diversity, India
has a lot to offer in terms of tourism and related activities. The diversity that
India is famous for ensures that there is something to do for all tourists in
India, no matter what their interests.

1. HERITAGE TOURISM:
This is a new kind of tourism that has come up in recent times. India
is known for its rich cultural heritage and an element of mysticism,
which is why tourists come to India to experience it for themselves.
The concept of heritage tourism came up to aid & facilitate the
curious guests attempt to get to know India’s great traditions. It was
realized that the historic homes could be maintained only with their
appropriate reuse. The Palaces of Maharajas set the trend by becoming
five star hotels. The main charm is the individual attention and
personalized services. The homes are modernized to meet the needs of
today’s International traveler, with adjoining bathrooms, running hot
and cold water, modern plumbing, even perhaps a swimming pool.

This kind of tourism was developed mostly for the international
tourists who wanted to get the feel of traditional India. The various
fairs and festivals that tourists can visit in India are the Pushkar fair,
Taj Mahotsav, and Suraj Kund mela.
2. LEISURE AND RECREATIONAL TOURS:
It is taken purely sightseeing and pleasure. The intention behind this is

to stay away from crowd and from daily routine. India has become an
ideal place for conference and convention center. A lot of motivation
is given to cities like Mumbai, Delhi etc for holding international
conferences and seminars.
3. BUSINESS AND INCENTIVE TRAVEL:
Business travelers often overlap the holiday makers; the only

difference is that it is not attracted to tourist centers of resort but to the
center of trade and commerce. They demand for accommodation,
secretarial services, meeting, conference etc. with less emphasis on
recreational services like pubs, health clubs etc.

4 ADVENTURE AND HOLIDAY TOURISM:
As a kind of tourism in India, adventure tourism has recently grown in

India. This involves exploration of remote areas and exotic locales and
engaging in various activities. India’s vast geographical diversity
provides a vast potential for adventure tourism. All tastes are catered
to and there is something for everyone. From the gentlest to the fast
placed, for the beginners to the experts. Besides this the prices here
are lower as compared to international standards. It basically includes
the activities like Trekking, Rock climbing, Water-rafting, and Scuba
etc. For adventure tourism in India, tourists prefer to go for trekking to
places like Ladakh, Sikkim, and Himalaya. Himachal Pradesh and
Jammu and Kashmir are popular for the skiing facilities they offer.
Whitewater rafting is also catching on in India and tourists flock to

places such as Uttranchal, Assam, and Arunachal Pradesh for this
adrenalin-packed activity.
5 WILDLIFE TOURISM:
India has a rich forest cover which has some beautiful and exotic
species of wildlife – some of which that are even endangered and very
rare. This has boosted wildlife tourism in India. India is a vast country
with geographical diversity from Himalayas to Kanyakumari, its
landscapes, volcanic rocks of the Deccan Plateau etc. the Sundar
Bans, marshy lands etc is the habitat of 350 species of mammals, 2100
kinds of birds both local and migratory, 350 species of reptiles and
countless of insects. India currently has 80 national parks and 441
santuries some of them with excellent viewing facility for the visitors.
It would be amazing to see lion in its own habitat.

6 PILGRIMAGE TOURISM:
India is famous for its temples and that is the reason that among the
different kinds of tourism in India, pilgrimage tourism is increasing
most rapidly it is the major segment of growth for local employment
and economic development. Temples and tourism go hand in hand
more than 50% of 10 million domestic people visit these temples.
India has the best temples from Char Dham to Trupati; one of best
managed temples is Vaishno-Devi. The government has identified 17
pilgrim places for developing the purpose of tourism. India attracts a
large number of tourists from South East followers of Buddhism and
Saranath plays host for them. . The various places for tourists to visit
in India for pilgrimage are Vaishno Devi, Golden temple, Char Dham,
and Mathura Vrindavan.

4. MEDICAL TOURISM:
Tourists from all over the world have been thronging India to avail
themselves of cost-effective but superior quality healthcare in terms of
surgical procedures and general medical attention. There are several
medical institutes in the country that cater to foreign patients and
impart top-quality healthcare at a fraction of what it would have cost
in developed nations such as USA and UK. It is expected that medical
tourism in India will hold a value around US$ 2 billion by 2012. The
city of Chennai attracts around 45% of medical tourists from foreign
countries.

5. ECO TOURISM:
Among the types of tourism in India, ecotourism have grown recently.

Ecotourism entails the sustainable preservation of a naturally endowed
area or region. This is becoming more and more significant for the
ecological development of all regions that have tourist value. For
ecotourism in India, tourists can go to places such as Kaziranga
National Park, Gir National Park, and Kanha National Park.

ADVANTAGES OF TOURISM
There are a number of benefits of tourism for both the tourist and the
host destination. On a large scale it offers a good alternative to some
more destructive industries for generating income both on nationally
and privately.
The tourism industry encompasses many different areas, so it also

creates jobs in many different areas. With tourism come hotels,
restaurants, car rental agencies, tour companies, service stations,
souvenir shops, sports equipment rentals, and much more. All of this
creates many different levels of employment for people in a given
community.
In many places the introduction and development of tourism allows

local people an opportunity for economic and educational growth that
would not otherwise be available. In addition, it allows both the
tourist and the local community a chance to experience other cultures,
which broadens understanding.
If properly used, tourism generated income can be tremendously

beneficial to the host country and its local communities. Tourism
generated income can be used on a national and local level to better
education, improve infrastructure, to fund conservation efforts, and to
promote more responsible tourism

CHAPTER II
THE TOURISM MARKETING MIX
The marketing mix refers to the blend of ideas, concepts and features which
marketing management put together to best appeal to their target market
segments. Each target segment will have a separate marketing mix, tailored
to meet the specific needs of consumers in the individual segment
THE PRODUCT MIX
The product here refers to the tourism service offering. Although service
products are essentially intangible, there are certain physical characteristics
which consumers will assess in their evaluation of the product choice. These
are:
• Attractiveness of the offering in terms of physical features, suitability

of climate etc,
• The facilities available, and the associated levels of quality and

service,
• Accessibility in terms of ease of getting there for the potential

consumer - is there adequate air services, road and other transport
considerations?
Package tour products will be broken down into different types to suit the
identified needs of consumers. Typically, these will fall into the categories of
escorted and unescorted tours, and group tour bookings. Today’s package
tours cater for varying tastes, offering levels of refinement to suit both the

“cheap and cheerful” budget tourist, and the seasoned traveler seeking more
exotic and exclusive services.
The tourism product should evolve over time to reflect changes and
developments in the tourism market place. This is essential for successful
marketing which depends in the first instance on satisfying consumer needs
and wants to achieve organizational success.
The idea that service products are intangible is an important one, but
increasingly firms are trying to make their offering more tangible, thereby
increasing their recognition amongst the target buying groups, and
enhancing the value of the offering. Physical details such as hotel
furnishings are replicated throughout certain chains so that the service
offering has a strong, easily recognized physical identity which appeals to
the security needs of many travelers, and encourages a feeling of being at
home in the hotel. Tangible gifts such as toiletries, flight bags, even bath-
robes, bearing the company logo or brand are another way of making
services more tangible to the consumer.
Branding plays a very important role in tourism marketing. Car rental firms,
hotel chains and airlines in particular employ tremendous effort to ensure
that their name is widely recognized and synonymous with quality, value or
some other characteristic. Travel agents and tour operators depend on
reputation to a large extent, and so it is imperative that they have a strong,
recognizable identity.
Usually the main reason for trying to build brand loyalty is to encourage
repeat business. If consumer preference can be built up for a particular

brand, then the opportunities for repeat business are high. The tourist who
always stays with Hilton and rents a car from Hertz will do so whether in
Bangkok or London.

THE PROMOTIONAL MIX
The aims of promotion fall into three main categories: to inform, to remind
and to persuade. It will always be necessary to inform prospective
consumers about new products and services, but other issues may also need
this type of communication to consumers; new uses, price changes,
information to build consumer confidence and to reduce fears, full
descriptions of service offerings and image-building are examples.It is
vitally important to recognize that promotion, or marketing communications
generally, may not always be aimed at the potential consumer or end-user of
the product or service. In many business areas it is necessary to design
promotional programmers aimed at channel customers to complement end-
user promotions.
Hotel owners and airlines will need to promote their services to tour
operators as well as promoting their service to end users and independent
travelers. Similarly, tour operators will want to ensure that travel agents sell
their services in a positive manner, and will therefore want to advertise to the
agents the benefits of selling their tours, whilst advertising totally different
sets of benefits to the end user. This type of promotion is referred to as ‘into
the pipeline’ promotion. The crucial task is to assess accurately the needs
and wants of intermediaries, as opposed to actual consumers and design
promotional messages accordingly.

There are a number of promotional tools available to the tourism marketing
manager, which can be combined to create effective promotional
programmes. Sales promotion plays a very important role as does
advertising. Visual media are perhaps the only way to advertise tourism
destinations properly. Whatever means are used, it is important to focus on
the following:
• Clearly identified segments
• A unique selling proposition
• Well defined target audience
• Creative use of media and media scheduling to reach audiences
• Monitoring and evaluation of promotional effectiveness.
THE PRICE MIX
Pricing in tourism is a fairly complex issue because the price eventually paid
by the consumer may be made up from the prices charged by various
independent service providers in the case of, say, a package tour. Variations
in the level of demand cause further complication in tourism pricing,
particularly due to seasonality.
Providers of tourism products and services will almost always be faced by

high levels of fixed costs, leading to variants of cost-plus pricing or return-
on-investments as key determinants of pricing levels. It is also important,
however, to have a clear understanding of factors affecting price sensitivity,

and to include pricing tactics which exploit such sensitivities fully. For
example, it may be possible to differentiate service levels and offer higher
priced ‘value-added’ services, as in business-class air travel. Similarly,
seasonal demand variations should be considered in price setting.
THE PLACE MIX
Offering of service has a far reaching impact on the organizational

prosperity. This draws our attention on the processing of services by the
different categories of personnel involved in the process. A sound
distribution system is found essential to improve the quality of services or to
bridge over the gap between the services-promised and services-offered. The
distributors thus occupy a place of outstanding significance. The normal
eyes fail in receiving the historical and cultural monuments and the travel
guys engaged in the process or the travel agents classify the same. In the
tourism industry, the distribution problem is considered with the
transmission of information about the services to the concerned users. As
and when the bookings are made the information regarding conformation
and cancellation become essential and a sound distribution makes it
possible. We can’t deny the fact that with the use of sophisticated
information technologies by almost all the tourist organizations, the task is
simplified considerably. The information of computers, sales desk terminals
and central reservation system has made the task easier. These are a number
of factors instrumental in making the distribution process effective and
productive. It is pertinent that the tourist’s professionals are well aware of
the variables influencing the functional style of distributors or the
intermediaries working as tour operators, transport operators and the travel

agents. It is essential to make clear that the transport operators and tour
operators act as wholesaler whereas the travel agents act as the retailer.
The tourism industry is a multi-segment industry where accommodation,

attraction, transportation, communication are found important. The product
of these services includes air, sea, road, rail carriers, hotels and other forms
of tourist accommodation. In addition, the facilities like catering,
amusement, skiing, shopping etc. add attractions to the product. These
services reach the ultimate users through tour operators and travel agents.
The instrumentality of transport operators, tour operators and travel gents
determines the processing of services.
The term chain of distribution denotes the method through which the
services reach to the distribution. The middlemen are the link and if the link
is strong, the producers succeed in raising the influx of tourists. The
middlemen are the tour operators and the transport operators who buy
services like hotel rooms, seats in the aircrafts, railways, arrange chartered
flights and sell the same either to the travel agents (retailers) or even directly
to the tourists. The tour operators are also called the producers of a new
product. The travel agents buy the services at the request of their clients and
provide a convenient network of sales outlets catering to the needs of a local
catchments area. In the figure we find the distribution channel for the
tourism industry which focuses on the different middlemen engaged in the
process of distributing the services. The services are generated by both the
public as well as the private sector. The services are supposed to be
standardized where the middlemen make it sure that the promised services
would be made available to the users without making any distortion. Of

course, we find possibilities of distortion at different points by the different
service generating organizations but all of them need to bridge over the gap.
Supportive Services Private Supportive Services Private

Producers
Sector Sector
Carriers Accommo Attraction National Tourist

Guide Services
dation Organisations (NTOs)
Travel Insurance
Regional Tourist
Travel Finance Air Hotel Stately Organisations, Resort,
Travel Press Transport Motel Home, Publicity Offices,
Marketing Support Rail Chalets Monument Port Services,
Guide and Time Table Transport Villas Activity Visa and Passport Offices,
Publication Road Holiday Centres, Education
Training Post Services Transport Camp Theme and
Theme Parks Training
Parks Catering.
Catering
Tour
Operations
Travel
Agents
Tourists

EXTENDED MARKETING MIX
PEOPLE
We can’t deny the fact that sophisticated technologies have been successful
in accelerating the pace of development. We also with this view that new
generation of information technologies have simplified the task of decision
makers. At the same time we have also accept the fact that, the sophisticated
technologies can’t deliver goods o the development process if the employees
operating and maintaining these technologies are not of world class.
Whatever the inventions and innovations we find today are the result of our
dedication, perfection and commitment. These facts make it clear that
technologies need due support of human resources who invent, innovate, and
develop technologies. It is against this background that the marketing
experts have been found making strong advocacy in favour of treating
people as an independent sub mix of the marketing mix.
Like other industries, the tourism industry depends substantially on the

management of human resources. We are all aware of the fact that tourism
industry is an amalgam of different industries and therefore all the
supporting industries need to assign due weightage to the management of
people who bear the responsibility of accelerating the productivity of
technologies used in the process. The tourism industry can’t work efficiently
if the travel agents, tour operators and travel guides lack world class
professional excellence. Of course, the offices of the travel agents depend
fantastically upon the new generation of computers and internet services but
after all we find employees, staff contributing significantly to the process.

The travel guides need professional excellence since the projection of a
positive image regarding destination in particular requires their due
cooperation failing which even the world class services offered by the travel
agents are found meaningless. The tour operator also needs to manage
human resources efficiently.
Travel Agents: Travel agents from the retail sector of the distribution chain,
buying travel services at the request of their clients and providing a
convenient network of sales outlets which cater to the needs of the local
catchments area. Normally, they don’t charge any fee from the clients since
they get commission from the principal for each sale they negotiate. In a few
cases, we also find them acting as wholesalers and in that case he/she is
supposed to be specialists in putting together tour offerings marketed to the
public through a network of retail agents or the airlines. As and when they
act as a retailer, we find a direct deal with the clients/customers. He
represents or acts as an agent for airlines, steamships, railways, hotels, car
rental firms or so. He also designs a package tour for customers by
assembling in pre-paid and pre-arranged packages. Thus the functional
responsibilities before the travel agents make it clear that they are required
to be professionally sound to manage their business in a right fashion. Since
they make available to the tourists, the necessary information, it is pertinent
that information management of the offices of travel agency is promoted by
technologies and efficient, submissive, personally-committed employees
perform the task. The receptionists working there, the computer
professionals at the working desk, the doorman entertaining the guests or
clients are required to work efficiently. The computer and super-computers,

the internet and intranet, the fax and e-mail would hardly serve the guests if
employees operating and maintaining them are not sound. This makes it
clear that the travel agents bear the responsibility of managing technologies
and managing the personnel who operate these technologies.

Travel Guides:
There are a number of points where we need the services of tourist’s guides.
The places having historic importance, cultural bias can’t be perceived by
ordinary persons in a right gashion unless quality tourist’s guides narrate.
This makes it essential that in the tourism industry, the tourists organization
assign due weightage to the management of travel guides. In the distribution
of tourism products, we can’t under-estimate the services of travel guides.
The success agency of travel agency is siezably influenced by the
instrumentality of travel guides. If they act and behave well, the tourists are
motivated and the travel business gains the momentum. If they misbehave
with the tourists even the quality services of agency carry no meaning. It is
against this background that while managing people for the tourism industry,
we need to assign due weightage to the development of the potentials of
guides. The modern marketing is found full of complications and
uniqueness. The tourists are sophisticated, the tourist’s sites are
sophisticated, they have high expectations and these things would be proved
to be unproductive, if the tourist’s guides are inefficient. This makes a strong
advocacy in favour of making available to the industry quality tourists
guides.
• Patient is considered to be the most important aspect for a travel

guide. They should have the capacity to adjust with the adverse
conditions. If they are agitated, the tourists can’t get satisfaction even
if the destination is attractive.

• Sense of humour is another consideration for a successful travel
guide. It is the sense of humour that activates the process of
motivation. If the travel guides are humorous, the tourists would not
feel monotony. This would simplify the task of making the tour
memorable.
• Tact is found essential for transforming the occasional tourists into

habitual tourists if he/she is tactful, the tourists would be found
satisfied. This draws our attention on the art of managing the odds.
• Knowledge draws our attention on the on the information bank of the

travel guides. He/She should have in-depth information regarding
destination and its connecting services. The historical monuments,
modern paintings, cultural heritages are found insignificant to the
general tourists unless the travel guides narrate to them facts and
realities in the plain words.
• Language focuses our attention on the communicative ability of the

travel guides. He/She should be competent enough to speak different
languages frequently. This is essential to bridge over the
communication gap. In this context, we need to divert our attention on
Body-language. It is not to be forgotten that the travel in a number of
cases can add attractions to their excellence, if they are familiar with
the body language of the concerned tourists.
• Leadership is an essential criterion for an ideal travel guide. He/She

should have the quality of leading a team of tourists so that whatever

deliberations are made throw a positive impact on the behavioral
profile of the tourists.
• Personal Commitment is found essential to improve the quality of a

travel guide. This gravitates our attention on performance-orientation.
These attributes make an individual an ideal travel guide and the

professionals institutes wile developing travel guides need to assign due
weightage to the aforesaid properties.

PROCESS:
The importance of process management is that it assures service

availability and consistent quality. Without sound process
management, balancing service demand with service supply is
extremely difficult. Service cannot be inventoried; therefore, it
becomes essential to find out ways and means to handle peak load to
optimize different customer needs with varied expertise levels within
the service organization.
In marketing management, operation management has been

recognized as an integral function. In manufacturing sector, for
example, logistics in distribution are vital to satisfy customer needs.
Similarly, in service sector, where there is no tangible product, the
operation management is vital to deliver satisfaction because here the
operation management would decide how the process of service
delivery would function or in other words, the interactive experience
that would deliver the service benefits to the consumers.
Shoptalk gave a much simplified version and described the ‘process’

in three stages. First a process can be broken down in logical steps to
facilitate analysis and control. Second, there are more than one
available option of processes in which output may differ. Finally, each
system includes the concept of deviation or tolerance standards in
recognition that the processes are ‘real time’ phenomena that do not
conform perfectly to any model or description but function within a
norm.

One can observe how changes in complexity and divergence influence
their market position. For managers in service industries, taking a
structural approach can help increase their control over some of the
critical elements of the service system management. Therefore for
marketers in service industries, process design may be a tool that can
substantially increase their impact and role in marketing their services.
All these services are inter linked and hence follow a process firstly as
an international destination is chosen the booking is done with
complete details on the booking form regarding meals, rooms etc and
then the same is passed to the ticketing counter to block the seats after
which this the passport and visas are checked or processed and then
given to the operation department to send the details to the foreign
agents to process further bookings regarding booking of rooms and
sightseeing.

PHYSICAL EVIDENCE:
Glynn Shostack once observed, “A physical object is self defining; a service

is not” and therefore the making task in service industries is “defining for the
service what the service cannot define for itself.”
Though a customer cannot see a service, but definitely he can see various
tangible clues of the service offer like facilities, communication material,
objects, employees, other customers, price etc. On the basis of his
perceptions on the tangible clues, the customer makes the purchase decision.
These clues might be both intended and unintended ones and therefore,
managing evidence is integral to the service marketing mix. Shostack even
observed that the management of evidence comes first for service marketers.
The argument here is that the physical environment, facilities and

atmosphere; give enough physical evidence to help shape customer
perception. Many service marketers have neglected this aspect while the
others gave due emphasis to issues like exterior of buildings, office
furniture, layout, colour of interiors, and even carry-bags, tickets, cash
memos, labels etc. The advocators of public relations have eve been coined a
specific term called ‘corporate identity’ and suggested that such tools can
create a visual identity that the public as customers can recognize. The
corporate identity media can successfully contribute towards the marketing
objectives provided they are attractive, distinctive and memorable.

CHAPTER VI
QUALITY DIMENSIONS IN TOURISM
It refers to the process quality as judged by the consumers during a

service delivery and the quality of output judged after a service is
performed.
Christian Gronroos has presented a new paradigm to explain how a

customer perceives service quality. According to him service quality
can be divided into two quality dimensions Technical and Functional.
Technical quality means what of service i.e. what is offered to the

customer. The functional quality dimensions addresses the issue of
‘how’ service is delivered to the customer.
Functional quality of a service is influenced by attitude, behavior,

service mindedness, appearance, accessibility, courtesy, empathy etc
of the service provider. When technical qualities in a service sector is
almost the same, functional quality may be the right kind of
instrument for garnering customer preference over the other. It may
turn out to be not only a tool of brand differentiation and positioning
but also a potent advantage.
Berry, Parasuram and Zeithaml conducted an extensive in service

quality and identified 10 criteria used by consumers in evaluating
service quality as shown in the figure below:

DIMENSIONS AND DEFINITION EXAMPLES OF QUALITY
REALISED BY CUSTOMERS
Tangibles: Appearance of physical facilities, equipment, personnel

and communication materials.
• Are the bank’s facilities attractive?
• Is my stock broker dressed appropriately?
Reliability: Ability to perform the promised service dependably and

accurately.
• When a loan officer says they will call me back in 15 minutes,

does she do so?
• Does the stockbroker follow my exact instructions to buy or

sell?
Responsiveness: Willingness to help customers and provide prompt

service
• When there is a problem with my bank statement, does the bank

resolve the problem quickly?
• Is my stockbroker willing to answer my questions?
Competence: Possession of the required skills and knowledge to

perform the service.
• Is the bank teller able to process my transaction without

fumbling around?

• Does my brokerage firm have the research capabilities to
accurately track market development?
Courtesy: Politeness, respect, consideration and friendliness of

contact personnel.
• Does the bank teller have pleasant demeanor?
• Does my broker refrain from being rude when I ask a question?
Creditability: Trustworthiness, believability, honesty of the service

provider.
• Does the bank have a good reputation?
• Does my broker refrain from pressuring me to buy?
Security: Freedom from danger, risk or doubt.
• Is it safe for me to use the bank’s automatic teller machines?
• Does my brokerage firm know where my stock certificate is?
Access: Approachability and ease of contact.
• How easy if it for me to talk to senior bank officials when I

have a problem?
• Is it easy to get through to my broker over the telephone?
CHAPTER V
Introduction to Himachal tourism

Tourism is one of the fastest growing industries in the world. The number of
tourists worldwide has been registering phenomenal growth and it is
expected that this number would shortly touch 1.5 billion.
Tourism contributes about 11% of the world workforce and 10.2% of the
global gross domestic product. The dynamic growth of this industry is
evident from the fact a new job is added to the sector every 2.5 second. This
pattern and dynamic character of the Sector necessitates the policy to adapt
to the changing environment. Policies are products of time and
circumstances, available resources and technologies and most importantly,
the needs of the stakeholders.
Nature has best owed Himachal Pradesh with unique beauty and
splendor with its lush green valleys, snow covered Himalayan ranges, a
serene, peaceful, hospitable and comfortable environment ,smiling people
and a rich cultural heritage - which tourists would be hard put to find
elsewhere.
Being in the lap or Himalayas this fact becomes its natural and unique
USP with global appeal. The outer fringe of Himachal is formed by the
Shiwalik hills, which are characterized by shallow valleys and dense scrub
forests. The mid ranges have the majestic Himalayan cedar and the spruces
-followed by alpine meadows that intersperse themselves with the snow clad
peaks of the Greater Himalaya.
Tourism, as we understand it today, in Himachal Pradesh, received

recognition only in the 19th century, when the British established their chain

of hill stations. Earlier, Himachal had been a destination for pilgrims only. A
fillip to tourism was administered when British declared Shimla as summer
capital of India in 1864. Post independence and up -gradation as fledged
State in the year 1971 led to more investment in the infrastructure sector
leading to opening up of the state. However the biggest explosion in tourism
occurred in the mid 80s and 90s with the Kashmir problem when the number
of hotels and hotel rooms increased within this period from 350 to present
1710 and 6300 to 36000 respectively with its concomitant chaos and
haphazard growth which the State would have done well without. With the
wisdom of hind sight the State is now more equipped to deal with the
problems of yesteryears and this document attempts to address those very
problems.
During the year 2004, the tourist arrivals in the state were 6.5 million
which is roughly equivalent to the population of the State.( 2.04 lacs were
foreigners).In terms of numbers therefore the State has done more than
expected. The challenge now is to attract quality tourists and increase the
stay of the tourists in the State .We also need to think globally as even the
domestic tourists today have a choice unlike in the past. By focusing on
quality tourist the State Government also aims at promoting sustainable
tourism and encouraging the private sector to develop tourism related
infrastructure in the State – without disturbing the existing ecology and
environment.
In order to increase the duration of the stay of the visitors/tourists, a

special emphasis is being placed on the development of activity-based

tourism and opening up new sub destinations. To promote tourism in the
countryside and to lesser-known areas, appropriate infrastructure will be
developed within available resources. Himachal was earlier known only for
the summer season. Efforts are being made to break the seasonality factor
and tourism products have been diversified to attract the tourists in other
seasons too. Now Himachal is known as “A Destination for All Seasons and
All Reasons.”
Tourism contributes nearly 8% of the State Domestic Product which is
roughly the same as horticulture sector. With careful planning and
infrastructural development, the Policy proposes to increase it to 15% by the
year 2020.
Himachal Tourism - A SWOT Analysis

An analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT):
STRENGTHS:
1. One of the rare places in the world offering five distinct seasons, thus
having potential to attract tourist inflow round the year;
2. Political and Social stability;
3. Recognized as a peaceful and hospitable State;
4. Salubrious climate;
5. Pollution free environment;
6. Offers a rare conglomerate of eco-tourism, pilgrimage, adventure, culture,
heritage, leisure, wilderness etc.;

7. Fairly good infrastructure;
8. High literacy;
9. Rich history and heritage that has something to offer to all. Its Buddhist
monasteries, which are of thousand years of old, ancient temples, churches
and cemeteries;
10. Special package of incentives for setting up of tourism units;
11. Strong political will to promote tourism;
WEAKNESSES:
1. Negligible air and rail link in the State;
2. Inadequate flow of foreign tourists;
3. Non-disbursal of tourists round the year, putting severe strains on civic
infrastructure during the peak season;
4. Lack of trained tourist guides at important tourist places and historical
tourist sites;
5. Saturation at the established tourist’s destinations;
6. No new major tourist’s destination has come up recently;
7. Lack of adequate parking places at important tourist places;
8. Poor marketing of the State abroad and inadequate marketing within the
country;
9. Very little budget;
10. Problem of land acquisition;
11. Problem of conversion of forest land;
OPPORTUNITIES:

1. Strong potential for activity based tourism such as white water rafting,
Para-gliding, trekking, mountaineering, water sports, mountain biking, Car
Rallies etc.;
2. A strong base for heritage tourism to attract persons from all walks of
society and religious beliefs;
3. To develop an ideal destination for nature lovers by promoting eco-
tourism;
4. Create synergy between heritage and pilgrimage tourism;
5. Development of wetlands of the State to attract nature lovers especially
bird watchers;
6. Promote the State as an Open University and learning centre in
mythology, anthropology and ornithology etc.;
7. Position it as an ideal destination for the film industry;
8. Himachal has something to offer to persons of all ages, groups, beliefs
and interests. There is unlimited scope for development of varied tourist
packages;
9. Himachal can become one of the leading adventure destinations in the
world;
10. Promote wilderness tourism for lovers and seekers of nature, peace and
quiet.
11. Create new destinations in yet unexplored but beautiful areas. This
would also ease the burden on established tourist destinations.
THREATS:

1. Tremendous strain leading to collapse, at times, of civic amenities at
leading tourist destinations during the season;
2. Haphazard growth & construction threatening the environment, especially
at the leading tourist destinations;
3. An alarming growth of concrete structures creating a disharmony with the
local environment;
4. Unscrupulous commercialization of tourism could erode the social and
cultural values;
5. Aggressive competition amongst the leading tourists States and a strong
promotion of tourism by other States;
6. Lack of coordinated strategy by the different Government Departments;
7. A large increase in volume and limited increase in value;
8. Poor garbage/ waste disposal posing threat to the environment.
ANALYSIS USING PORTER’S MODEL

An analysis was done using the Porter’s five forces model, concentrating
mainly on the customers. The five forces, according to Michael Porter,
which every industry must take care of, are as follows:
• Customers
• Competition
• Suppliers
• Substitutes
• New entrants
(A) Customers
Customers are the most important force to any industry. The industry exists
because of them. The industry must therefore try to achieve maximum
customer satisfaction. But today’s customer is far more difficult to please
and even more so in the tourism industry, it being a service. Today’s
customers have more options to choose from, they are more knowledgeable,
more information is available to them, and so on. Hence it is necessary that
their needs and preferences are understood so that the tourism industry in
Himachal can understand as to where it stands in providing satisfaction to
the tourists. This very analysis has been done with the help of a
questionnaire.
The findings of the study indicated the following with particular reference to
Himachal Pradesh.
• Holidaying is the most common purpose of visit to Himachal Pradesh. This
is a fact that must be leveraged to accrue benefits. People who came for
religious purposes were mostly from nearby places in North India.

• Hotels are the most used means of accommodation used by tourists while
there are few takers for camping and guest houses.
• The average duration of stay was found to 5 days which is not too long nor
too short. Himachal should find means to elongate the stay by providing the
necessary offerings.
• Most of the tourists used bus for reaching Himachal Pradesh. Railways and
airways must be provided to facilitate convenience to the tourists in reaching
Himachal.
• Word of mouth was found to be the most effective method of
communication in influencing the tourist to choose Himachal as a tourist
destination. Other mediums of information also should be used effectively to
get across the required message.
• Holidaying in Himachal is done generally with the company of one’s
family and relatives. Visiting with friends is also an option. Therefore group
travel is more preferred in this region.
• Tourist traffic is concentrated to few places like Shimla, Kulu, Manali, etc.
A large portion of Himachal is yet to be explored.
• Satisfaction of tourists was found to be concentrated on some variables like
scenery, climate, etc. They were not very satisfied with the prices, shopping
facilities, water, etc. The various satisfaction variables could be classified
under the following factors or components as follows:
Infrastructural factors:
• Accommodation
• Transport

• Accessibility
• Shopping facilities
• Informative
2. Services and Safety factors:
• Catering
• Entertainment
• Local people
• Safety
3. Necessities:
• Food
• Water
• Amenities
4. Cost related factors:
• Prices
• Value for money
5. Natural or unique factors:
• Scenery
• Climate
• Overall satisfaction.
It can be noticed that overall satisfaction is clubbed with variables like
scenery and climate thus suggesting that a tourist’s satisfaction depends
largely on a place’s unique offerings. Here satisfaction of a tourist was
related to the prime offerings of Himachal i.e. scenery and climate
infrastructural factors, service factors, necessities, cost factors and natural or
unique factors.

• Packaged tours have been used by a very small number of tourists. The
satisfaction gained in using them are not so significantly different from not
using them. But there were factors like catering, food, etc which were more
satisfactory for those who had used a packaged tour.
• Most of the people felt that Himachal Pradesh had the potential of
becoming one of the world’s top tourist destination. Their opinion was based
on the fact that Himachal has the natural beauty and climate and if the other
facilities could be improved then it certainly could become a top destination.
• People’s expectations in Himachal were generally met with but they
depend on the presence of necessities and infrastructural facilities.
• Himachal is compared more attractive than similar places in India by most
people but it is equally or not so attractive when compared to places abroad.
• Inconveniences faced by the tourists:
• Many respondents did not mention any inconveniences, but those that were
mentioned were quite common to most of the respondents. Some of the
inconveniences faced were:
• Lack of transport facilities
• Water shortage in summer months
• Bad and zig-zag roads
• High population concentrated in certain places
• Expensive (especially in the peak periods)
• High bus fares
• Lack of proper information available to tourists
• Land slides
• Locals and coolies occasionally taking advantage of tourists

• Lack of shopping facilities catering to the upper segment
• No diverse culinary (ex: difficult to find catering of South Indian food)
Some of these inconveniences faced may be due to natural factors but most
are due to lack of proper infrastructural facilities and necessities, which can
be avoided if proper care is taken and planning is done.
• Suggestions from the tourists:
The suggestions were in direct relation to inconveniences faced. Some of
them were:
 Provision of required information in tourism centers
 Clean and maintain the environment in certain places
 Improve roads and transport facilities
 Shopping complexes
 Provision for hot water
 More coverage in the media
 More parking space
 Diverse culinary must be available
 Presence of hotels for the lower segment in peak months
 Non-exploitation by locals
 Should be well connected and accessible
 More entertainment facilities for tourists
All the above information is very valuable as it directly provides the
attitudes, behavior, needs, wants, preferences, etc of the tourists, which are
very helpful in building marketing strategies to encourage tourism.
(B) Competition
Himachal faces various levels of competition in the tourism industry. Within
India itself there is competition from other hill stations like:
• Darjeeling

• Nilgiris ( Ooty, Kodaikanal)
• Uttaranchal
• Jammu & Kashmir
It also faces competition at a higher level from other tourist spots in India
like:
• Goa
• Kerala
• Rajasthan
At the international mountain tourism level there are big players like:
• Switzerland
• New Zealand
• Alaska
To counteract these various levels of competition, Himachal must find ways
to differentiate itself from others with its unique offerings and position itself
uniquely in the minds of the people. For this it must build a unique selling
proposition (USP). To match international competition it must first
benchmark itself with them.
(C) Suppliers
Suppliers in the tourism indicate all the service providers like:
• Airline industry
• Railways
• Travel agents
• Locals
• Hotel industry
• Government

Service, unlike a product, has different characteristics like intangibility,
inseparability, variability, perishability, etc. To manage these, the use of the
following “3 P’s” will come in handy-
• Physical evidence
• People
• Place
(D) Substitutes
The substitutes to Himachal tourism are any other options that a person
would like to do on a holiday like:
• Religious gatherings is gaining ground
• Internet
• Television
• Video games
• Parks
These substitutes although do not directly effect tourism, they can still be a
deterrent to it. Instead of traveling to far off distances for a holiday, today’s
man finds easy entertainment from the above. Also the concept of an annual
holiday is yet to catch up in India. They must therefore be used to one’s own
advantage by making them available at the tourist spots.
(E) New Entrants
Each state in India is now beginning to realize the potential of tourism and
thus are uniquely positioning themselves like:
• Temples in Tamil Nadu

• Wild life in Assam
• Ayurveda in Kerala
Also there are indirect threats from other entertainments like:
• Theme parks
• Shopping malls
• Internet
Himachal must too build a USP to gain an edge over others and leverage its
unique offerings to its own advantage. The internet can be used to its
advantage for advertising and communication.
CHAPTER VI
Tourist satisfaction
"Satisfying the customer is a race without finish."
Geography is an indispensable subject for tourism, became it gives an

overall picture of a tourist place by its site, situation, climate and other
aspects.
To assess the level of satisfaction of tourists it is necessary to know the
views of tourists about various facilities provided to them at the destination.

Here, the tourist and residents of the destination can play a major role in this
regards because mostly these two parties frequently come into contact.
Good conduct of both these parties increases the popularity of the
destination.
Study Region- Shimla , originally called Simla, is the capital city
of Himachal Pradesh. In 1864, Shimla was declared the summer capital of
the British Raj in India. A popular tourist destination, Shimla is often
referred to as the "Queen of Hills" (a term coined by the British). Located in
the north-west Himalayas at an altitude of 2,128 metres (6,982 ft), the city
of Shimla, draped in forests of pine, rhododendron, and oak, experiences
pleasant summers and cold, snowy winters. The city is famous for its
buildings styled in tudorbethan and neo-gothic architecture dating from
the colonial era. Shimla is connected to the city of Kalka by one of the
longest narrow gauge railway routes still operating in India[2], the Kalka-
Shimla Railway. Shimla is approximately 115 km (71.4 miles)
from Chandigarh, the nearest major city, and 365 km (226.8 miles)
from New Delhi, the national capital. The city is named after the goddess
Shyamala Devi, an incarnation of the Hindu Goddess Kali.
Shimla is located in the north-western ranges of the Himalayas. At an
average altitude of 2397.59 meters (7866.10 ft) above mean sea level, the
city is spread on a ridge and its seven spurs. The city stretches nearly
9.2 km from east to west.[11] The highest point in Shimla, at 2454 meters
(8051 ft), is the Jakhoo hill. Shimla is a Zone IV (High Damage Risk Zone)
per the Earthquake hazard zoning of India. Weak construction techniques
and increasing population pose a serious threat to the already earthquake

prone region. There are no bodies of water near the main city and the
closest river, Sutlej, is about 21 km (13 miles) away. Other rivers that flow
through the Shimla district, although further from the city, are Giri, and
Pabbar (both are tributaries of Yamuna). The green belt in Shimla planning
area is spread over 414 hectares (1023 acres). The main forests in and
around the city are that
of pine, deodar, oak and rhododendron. Environmental degradation due to
the increasing number of tourists every year without the infrastructure to
support them has resulted in Shimla losing its popular appeal as
an ecotourism spot. Another rising concern in the region are the frequent
number of landslides that often take place after heavy rains.
In shimla tourism is a growing industry. In this town a tremendous
growth in the volume of tourist and overall tourist activity have taken place.
In recent, there has been manifold expansion of infrastructural and
recreational facilities in the town, but these facilities could not keep pace
with the taste and preference of modern day tourist. It is essential that the
tourist resort become more and more popular and is able to attract an ever
increasing no. of tourist.
Objective-
 The main objective of the study is to assess the level of
satisfaction of tourist and to identify the area requiring special
attention
Resaerch Problem

 To determine the Customer loyalty status and what makes them to
satisfy over our Service.
 To determine the Satisfaction level and what makes it to be more
effective.
Type Of Research
Exploratory Research -
Its primary objective is to find provision of

insight into and comprehension of the problem situation confronting
the researcher.
RESEARCH METHOD
 Survey Method-
A structured questionnaire is given to a sample of a

population and designed to elicit specific information from
respondents.
 Structured data collection-
Use of formal questionnaire that present question in a

prearranged order.
Sampling Technique
 Convenience Sampling-

 Sample is selected on convenience basis, like whichever customers ,
we have taken him/her as our sample.
 Sample unit- 100 Customers
 Sources of Data- Primary & Secondary Data
Literature review
Tourist satisfaction
Tourist choice behavior is one of the most needed studies by many
tourist managers. Tourists take into account the various factors in terms
of facilities, local attractions etc, before choosing their destination.
Local attractions, accessibility, facilities are some of the factors that
generate tourist flow to a particular location. Absence of any of these
facilities may deter the tourists from travelling to enjoy the attractions
of India. There are many foreign studies which analyze the foreign
tourist destination in order to form a policy for decision making of
tourist destination in the country. Hunt in 1975 has analysed the image
of tourists as well as their behavioral perceptions. Some studies have

found out the attractiveness of a tourist destination on the basis of
attribute analysis of a destination. One should take into account the total
ideas, impressions and beliefs a tourist has of the tourist destination.
Many factors measuring customer satisfaction is an integral part of
the effort that improves a product’s / service quality which results
in a country’s competitive advantage. Many researchers analysed on

customer satisfaction which results in repeat visit, and favorable word-

of-mouth publicity.The theory of consumer behavior for a service sector
points out that customers’ buying behavior and levels of satisfaction are
influenced by the customer’s background, characteristics and external
stimuli. Customer’s satisfaction is influenced by the availability of
various customer services; the quality of customer service has become a
major concern of all business. Failure to pay attention to influential
attributes in choice intention may result in a customer’s negative
evaluation, and may lead to unfavourable word-of-mouth.
TOURIST DESTINATION
Researches on tourist destination by many researchers have
focused on the relationship between satisfaction of the customer as
well as the quality of their various services. Services have various
features like intangibility, inseparability, variability and perishability.
An attractiveness of a tourist destination can be viewed as consisting
of unique local features, cultural attributes, natural resources,
infrastructure, services and others .The tourism product can be analyzed
in terms of attraction, facilities and accessibility for the purpose of

finding out its attractiveness. Attractions are the major factors, which
ensure the flow of international tourists to a specific place. The tourist
facilities are those elements in tourist product, which
do not normally themselves provide the motivation for tourist flows.
But the absence of these facilities may deter the tourists from travelling

to enjoy the attractions. Accessibility relates to the mode of
transportation to the destination chosen by tourist and is best interpreted
in terms of time and cost to reach the destination. Some researchers
analyzed the attractiveness of a tourist destination on the basis of
attribute analysis of a destination.
Methodology
The methodology adopted for the present work is as below. Here an
attempt is made to assess the level of satisfaction of the tourist by noting
their views regarding the various facilities. For that purpose, six important
factors were selected which influence the level of satisfaction. To conduct a
sample survey a questionnaire was prepared and filled up by tourist a few
tourists were interviewed. About 100 tourists at the period of winter season
were asked to mention their views about the facilities by stating excellent,
good, satisfactory and unsatisfactory. These views were converted into
numerical values suet as 8 to 10 for excellent, 6 to 8 for good, 4 to 6 for
satisfactory and 0 to 4 for unsatisfactory. The factor wise level of
satisfaction is calculated and tabulated. The factor wise average values
are calculated. These average values see then utilized to calculate
satisfaction index. Following formula is used for calculation of satisfaction
index
Mi x Ni
Sti = ∑

N
Where,
Sti = Satisfaction index for ith factor
Mi = Numerical values for the particular level of
satisfaction for the Ith factor.

Ni = Number of respondents deriving the particular level of
satisfaction for the Ith factor.

N = Total number of respondents for that factor for all level of
satisfaction.
Finally ranks are given to these satisfaction indices.
Data analysis
During the survey the information regarding the number of tourists,
sex-wise classification of tourists, their nationality, purpose to visit,
expenditure incurred on transport, food and beverages, accommodation,
entertainment and shopping etc. Besides this, their reactions about the
existing facilities and suggestions for improvement therein were also
gathered from the tourists. The data so collected and its analysis and results
etc. are presented in this report.
Nationality-wise distribution of tourists

Out of total 100 tourists surveyed 82 were Domestic and 18 were
International.
Nationality-wise distribution of tourists
Nationality No. of Tourists Percentage

1. 2. 3.
1. Domestic 82 82
2. International 18 18
Total 100 100
Sex-wise distribution of tourists

Out of total tourists surveyed 63% were male and 37% were female.
The flow of male tourists was comparatively less then the females.
Sex-wise distribution of tourists
Sex-wise No. of Tourists Percentage

1. 2. 3.
1. Male 63 63
2. Female 37 37
Total 100 100

Age-wise distribution of the tourists
Total tourists in the age group of 18-22 is 9%and between 23-30 is 36%
tourist , in the age group of 31-40 there are 24% tourist and 16%tourist
areabove age of 50. So it was seen that most of the tourist are the age group
of 23-30.
Age-wise distribution of the tourists
Age years No. of Tourists Percentage

1. 2. 3.
1. 18-22 9 9%
2. 23-30 36 36%
3. 31-40 24 24%
4. 41-50 15 15%
5.>50 16 16%
Total 100 100%
Marital status-wise distribution of tourists

The table below gives the marital status-wise distribution of
domestic/International visiting Shimla. The table reveals that the percentage
of un-married tourists is 44% to total tourists and 56% are married tourists.

Marital status-wise distribution of tourists
Marital status Domestic Inter- Total Percentage

national tourists
1. 2. 3. 4. 5.
1. Married 46 10 56 56
2. Un-married 36 8 44 44
Total 82 18 100 100
Educational qualification-wise distribution of tourists

The information as gathered from the tourists parties surveyed shoes that
educational qualification is12%undergraduate4 3% graduate, 28% post-
graduate, and 17% others subjects.
Educational qualification-wise distribution of tourists

Educational No. of Tourists Percentage
Qualification
1. 2. 3.
1. UnderGraduate 12 12%
2 Graduate 43 43%
3. P.G 28 28%
4. Others 17 17%
Total 100 100
Main motive/purpose of visit

Tourists visit different places with different purposes. The information
about the purpose of visit collected from the sample tourists has been shown
in the table below:
Distribution of main motive/purpose of visit
Purpose of Visit No. of Tourists Percentage

1. 2. 3.
1. Tourism & 76 76
Entertainment
2. Business 4 4
3. Educational Trip 2 2
4. VFR * 12 12
5. Any Other 6 6

Total 100 100
* Visiting with friends & relatives.
Factorwise Level of Satisfaction
Level of satisfaction is a state of mind. Six important factors which influence

the level of satisfaction are identified as could be seen from the Table I. To
conduct a sample survey a questionnaire was prepared and filled up by
tourists. The tourists were asked to indicate the level of satisfaction they
derived in respect of each factor by stating excellent, good, satisfactory and
unsatisfactory. Factorwise level of the tourist is assessed by collection the
information given by them (see Table I) The category wise percentage
reveals that the facilities provided at Shimla are noted excellent (19.5%),
good (29.5%), satisfactory (32.5%) and unsatisfactory (19.5%). Therefore
the level of satisfaction of the tourist is high. Only 19.5% tourist told that
facilities are not satisfactory.
Factorwise Average Values of Satisfaction

Factorwise average values are calculated. For that purpose the tourist
were asked to assign points (out of maximum 10) for the particular level of
satisfaction they derived from each factor. To ensure uniformity a forced
distribution of points was adopted for convenience. Namely 8 to 10 for
excellent, 6 to 8 for good, 4 to 6 for satisfactory and 0 to 4 points for
unsatisfactory. The average values for the different level of satisfaction for
the different factors are given in table see table 2

Table 1
Sr no Factor Excellent Good Satisfied unsatisfied total
1 Accommodation 18 12 62 18 100
2 Transportation 14 46 25 15 100
3 Recreation 38 25 17 20 100
4 Parking 08 24 35 33 100
5 Food &drinking 12 23 42 23 100
water
6 Shopping 37 41 14 08 100
facilities
Average(%) 19.5 29.5 32.5 19.5 100
Tabel 2
Factor wise average of satisfaction(Mi)
Sr No Factor Numerical Numerical Numerical Numerical
value for value for value for value for
excellent good satisfied unsatisfied
1 Accommodation 9.07 6 4.75 2.08
2 Transportation 8.59 6.38 4.25 2.09
3 Recreation 9.92 7.51 5.72 2.75

4 Parking 8 6.17 4 2.11
5 Food&drinking 8.52 7.20 5.20 2.25
water
6 Shopping 9.80 8 5.89 2.35
facilities
These average values are the utilized to calculate satisfaction

indices. The ranks are given to these factors which indicate the priority of
the factors.
Table 3
Satisfaction index
Sr No Factor Satisfaction index Rank
1 Accommodation 4.77 5
2 Transportation 5.21 4
3 Recreation 7.17 2
4 Parking 4.22 6
5 Food&drinking 5.38 3
water
6 Shopping facilities 7.93 1
From the above table it is observed that the satisfaction index for
accommodation works out as 4.77, for transportation 5.21, for Recreation
7.17 for parking 4.22, for food and drinking water 5.38, for shopping
facility 7.91 These satisfaction indices are weighted by given ranks to these
factors (see Table III).

It is observed that shopping facility received rank 1st. It is known from
the study that purchasing of items of various varieties is found on large scale
by tourist. Though the shopping facility received first rank there is a habit of
duel pricing system and bar- gaining is common.
Recreation received rank Second Tourism and recreation is very
intimately related concepts. It is known from the study that in shimla the
recreational activities most enjoyed by tourists are visits to picnic spots,
horse riding etc. Food and Drinking water received third rank. The level of
satisfaction of the tourists is high on this count but during the survey period
it is found that the sanitary conditions apart from quality of food were poor.
Availability of good quality drinking water has been one of the problems.
It is common experience that in summers the supply of clean potable
water falls short for below the demand. The variety and quality of food
served by the restaurants in the town is also not up to the satisfaction of
tourists.
Transportation received the fourth rank means with relatively medium
contribution to the level of satisfaction. Shimla is well connected by road to
other parts of Himachal. There is a very heavy rush of tourists most of the
time.
During peak tourist season, the transport services come under strain. This
may cause transport problems to and from connecting station.
Accommodation facilities received fifth rank because the accommodation

facilities are not satisfactory. Most of the tourists adjust their
accommodation on lodging but the condition of the lodge is filthy and
unhygienic. Sanitation facilities are unsatisfied. . Some tourists complained
that they are taking high charges and not providing facilities due to high
stain on accommodation facilities during season. The problem facing
accommodation establishment is due to the fluctuation in demand. This
problem is especially acute during season time. A flood of tourist enters the
city causing demand for accommodation and thereby creating a shortage of
accommodation. Rise in demand prompts to exploitation.
Parking facilities received sixth rank because parking facilities are not
sufficient during summer. Some roads are narrow designed for a limited
traffic and also creates parking difficulties.
Conclusion
Shimla has many places of tourist interest. In order to mass attractive and
friendly environment for tourism, it is essential to provide various facilities
provided to them and also to find out some important causes for
dissatisfaction and areas requiring special attention.
The level of satisfaction of the tourist by noting their views about the
facilities provided to them is assessed. The factorwise satisfaction index is
calculated reveals the fact that in general the tourists are satisfied with the
existing facilities at Shimla.
Still is worthwhile to identify the areas requiring special attention. It is
send already that there is a general dissatisfaction about accommodation
and parking facilities. In Shimla, the recreational activities most enjoyed by

tourists are visits to picnic spots, horse riding. The scope of recreational
facilities reeds to be expanded as the present places of recreation becomes
over crowded during peak season.
During peak season, it is a common complaint that the hotel industry
provides inadequate facilities as compared to the rates charged.
The variety and quality of the food served by the restaurants in the town
is also not upto the satisfaction of a large section of tourists.
In addition to these problems some problems of environmental concern
also arise due to overcrowding waste disposal and noise pollution by
vehicles.
BIBLIOGRAPHY
 Bhatt S.S. and P.N. Seth. An Introduction to Travel and Tourism,

Sterling Publications 1993.

 Kotler Philip. Marketing for Hospitality and Tourism. Pearson
Education Pte. Ltd. 2003.
 S.M Jha. Services Marketing. Himalaya Publishing House
 www.himachal.nic.in (Official website of Himachal Pradesh
Govt.)
 https://app.stb.gov.sg/asp/index.asp (Website of Singapore Tourism
Board)
 www.hptdc.nic.in (Website of HP Tourism Development
Corporation)
 www.google.com
 Wikipedia
QUESTIONNAIRE FOR
VISITORS
Part A General

1. Your native country/state/Place .............................................................
Domestic International
2. Gender
Male Female
3. Age
41.50 23-30 31-40
41-50 >50
4. Marital Status
Married Unmarried
5 Education Qualifications
Under Graduate Graduate Post Graduate
Others
6 Main motive/purpose of your visit

Tourism&entertainment Business Educational trip
Visiting with friends&relatives Any Other
7 Visiting with
Friends Family Relatives
Alone
Part B Evaluation
1. Transport within the centre
Excellent -1, Good -2, Satisfactory-3, Poor- 4

2. Parking facility
Excellent -1, Good -2, Satisfactory-3, Poor-

4
3. Accommodation

4
4. Recreation

4
5. Food Quality & Drinking water

4
6 Shopping facilities
Excellent -1, Good -2, Satisfactory-3, Poor- 4

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RESEARCH PROJECT

“Tourist Satisfaction on Himachal Pradesh Tourism”

Post Graduate Degree of MBA

Under the guidance of

To be certified that Virender Singh has successfully completed Project

Virender Singh Mr. Shashi Kapoor

Faculty UBS Ludhiana

I would like to extend my hearty gratitude to my project guide Mr. Shashi

Introduction to Himachal tourism……………………………………….36

Within the Asia-Pacific region, the Indian sub-continent is well poised to

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Tourism is also one of the biggest employment generating industries in

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“Tourism denotes the temporary, short-term movement of people to

“Tourism is an activity involving a complex mixture of material and

In view of the aforesaid viewpoints of different experts, the following points

• Tourism is a temporary and short-term movement of people.

• Tourism is the totality of relationship.

• Tourism is an activity involving a complex mixture of material and

• Tourism is the activity concerned with the utilization of leisure hours.

• Tourism is a composite industry consisting of various segments.

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 It is India’s second largest foreign exchange earning activity after

 It is also world’s largest EXPORT industry.

 It is largest employment generating industry in India.

 There is high rate of contribution of tourism towards GDP.

 It also helps to increase the activities of other industries like

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A third impact of tourism, which is of particular significance to India, is its

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2. LEISURE AND RECREATIONAL TOURS:

It is taken purely sightseeing and pleasure. The intention behind this is

3. BUSINESS AND INCENTIVE TRAVEL:

Business travelers often overlap the holiday makers; the only

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As a kind of tourism in India, adventure tourism has recently grown in

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Among the types of tourism in India, ecotourism have grown recently.

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The tourism industry encompasses many different areas, so it also

In many places the introduction and development of tourism allows

If properly used, tourism generated income can be tremendously