Organisation Study at Kerala State Tourism Corporation

ORGANISATION STUDY AT KERALA STATE TOURISM CORPORATION
CHAPTER 1
INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM
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1.1. INTRODUCTION
Organization study is the systematic learning process about an organization to
understand the different roles of each member in the organization. The different role
such as interpersonal roles, decisional roles and informational roles are evaluated and
how its effects the functions of the organization are analyzed. The organization study
is also an effort towards understanding the policies, structure and methodologies
adopted by an organization. It also helps to have a clear understanding on various
practical applications of the theories which we learned in the text book. Like all
modern sciences organization study seeks to predict, control and explain.
An organization is a social arrangement which pursues collective goals, which

controls its own performance and which has a boundary separating it from its
environment. Organization is the association formed by a group at people who see
that there are benefits available from working together towards some common goal.
Organizational study refers to the study of organization as a whole and setting

adequate knowledge with various departments. It is also an effort towards
understanding the policies, structure and methodology adopted by an organization.
Organization study helps to have a clear understanding on various practical
applications of the theories which we learned in the text books. Like all modern
sciences organizational study seeks to predict, control and explain.
Organization study is useful in getting the quality and performance of the

company. It will help to conduct a detailed study on the structure of the functional
areas of the organization. It also helps to identify the strength and weakness of the
organization and also helps to find out the area where the organization should
improve.
The organization study under taken as a part of curriculum was done at the
“KERALA TOURISM DEVELOPMENT CORPORATION” at Trivandrum. This
study aims at having a better understanding of organization structure and functions of
various departments. The main purpose of this study is to critically analyze the
overall performance of the organization using different analytical tools.
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1.2. OBJECTIVES OF THE STUDY
 To understand the actual working condition in the organization.
 To evaluate the overall performance of the organization in promoting the

tourism industry in Kerala.
 To know about organizational structure.
 To understand the functions of different departments in the organization.
 To get familiarization with the policies and procedures of the organization.
 To analyze the strengths, weaknesses, opportunities and threats of the

organization
1.3. METHODOLOGY
The research design is descriptive. Primary and secondary data were collected
through different means
1.3.1. PRIMARY DATA

Primary data was collected through interview with executives of the firm and
discussion with the staff and by observing the organisation’s day-to-day functions.
1.3.2. SECONDARY DATA
Secondary data was collected from the following sources:-
 Data collected from catalogues, broachers, internet etc.
 Data collected from company website
 Data collected from annual report
 Data collected from books, journals, magazines.
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1.4. SCOPE OF THE STUDY

The study was undertaken to get a clear-cut idea regarding the functioning of the
organization. The study is useful in assessing the quality and performance of the
organization. The study covers the entire functioning of the organization, the activities
of different departments, the co-ordination among the departments etc. Also the study
helps in bridging the gap between theory and practice of management.
1.5. LIMITATION OF THE STUDY
 Limited time was a major constraint. As the time allotted for the study was
only one month, detailed study was not possible.
 Since the managers of different departments were engaged in various projects,

the collection of data through interviews was a bit difficult.
 Employees were not able to spend time due to their work load.
 Due to the busy schedule of officials, only limited data can be collected.
1.6. CHAPTERISATION
Chapter 1- Introduction, Objectives of the study, Methodology, Scope of the

Study,
Limitations, Chapterisation.
Chapter 2- Industry Profile
Chapter 3 - Company Profile, History, Strategic Intent
Chapter 4 - Organisational Structure and Department structures,
Products.
Chapter 5 - Analysis
Chapter 6 - Finding, conclusion, and Suggestions
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CHAPTER 2
INDUSTRY PROFILE
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2.1. TOURISM INDUSTRY

Tourism as an industry has been flourishing and growing since time
immemorial, but it has been in the last few decades that specific attention has started
to be given to this smokeless industry because of the huge return from this in the
form of foreign exchange and other means. Tourism has emerged as an important as
well as organized industry which scattered its benefits over large segments of the
population. Tourism is vital for many countries due to the huge investment in their
goods and services and the opportunity for employment in the service industries
associated with tourism. These service industries include transportation services such
as cruise ships and taxis, accommodation such as hotels and entertainment venues
and other hospitality services such as resorts.
Tourism has become a popular global leisure activity. Tourism is travelling

for predominantly recreational or leisure purposes or the provision of services to
support this leisure travel. In a true sense, the term tourism is a phenomenon of the
post second world war period when the word ‘Tour’ entered into the common usage,
especially in the English language. Tourism involves travelling to relatively
undisturbed or uncontaminated natural areas with the specific objects of studying,
admiring and enjoying the scenery and its wild flora and fauna, as well as other
existing cultural and historical aspects. These include places of archaeological and
historical importance, pilgrimage centres, sanctuaries, national parks, hill resorts and
sea beaches, etc.
The World Tourism Organization defines tourists as people who "travel to

and stay in places outside their usual environment for not more than one consecutive
year for leisure, business and other purposes not related to the exercise of an activity
remunerated from within the place visited". Tourism, however, is a temporary and
short-term movement of people which is outside the place where the so called
tourists live, work and stay. It is the sum total of the processes, activities, outcomes
arising from the interactions among the tourists, tourism suppliers, governments,
host communities, universities, community colleges and non-governmental
organisations, in the process of attracting, transporting, hosting and managing
tourists and other visitors.
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2.2. MODERN TOURISM
Modern tourism is an instrument of human education. The role of mass tourism is

increasing. It is day by day growing as an instrument of education and of collective and
individual culture. It finds out the value of mankind’s labor. It also helps to know more of
one’s own country and its historic traditions and its historic cultural values. It widens the
knowledge of other people habits, their way of life and many other things causing love and
affection for humanity. Tourism creates better understanding among the people. It fosters
greater awareness of the rich heritage of various cultures. So tourism is of indispensable
value for human education. Due to the immense value of tourism United Nations Educational
School and Cultural Organization has regarded tourism as a basic instrument of education.
Tourism is today’s largest single item in world trade, helps in its hold on tremendous
economic development, side-by-side, increasing economic growth and prosperity. It also
makes amity between different people of the world, socially and culturally and fosters to one
another beliefs and tolerance towards other custom.
Tourism gives a direct knowledge and contract with the great achievement of human
mind. So tourism, while developing many industries, builds friendship and enlarges
understanding among nations. Tourism is a chance of through which we can promote
knowledge and understanding the prospectus of establishing the foundation of a world
community.
The world tourism organization is string hard to help and assist its more than 100
members from states to consider tourism and its problems in it and find out one of the most
significant expressions of modern civilization.
2.3. GLOBAL TOURISM

The travel and tourism industry is one of the world’s largest industries with a global
economic contribution (direct, indirect and induced) of over 7.6 trillion U.S. dollars in 2016.
The direct economic impact of the industry, including accommodation, transportation,
entertainment and attractions, was approximately 2.3 trillion U.S. dollars that year. A number
of countries, such as France and the United States, are consistently popular tourism
destinations, but other, less well-known countries are quickly emerging in order to reap the
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economic benefits of the industry. Worldwide, the tourism industry has experienced
steady growth almost every year. International tourist arrivals increased from 528 million in
2005 to 1.19 billion in 2015. Figures were forecasted to exceed 1.8 billion by 2030. Each
year, Europe receives the most international tourist arrivals. It also produces the most
travellers: with approximately 607 million outbound tourists in 2015.
In 2015, global international tourism revenue reached approximately 1.26 trillion U.S.
dollars, having almost doubled since 2005. That year, China had the largest international
tourism expenditure, followed by the United States and Germany. The leading city in
international visitor spending was Dubai, where tourists spent more than 31.3 billion U.S.
dollars in 2016. In 2017, there were 1.323 billion international tourist arrivals worldwide,
with a growth of 6.8% as compared to 2016. The top 10 international tourism destinations in
2017 were:
Change Change
International International
(2016 (2015
tourist tourist
Rank Destination to to
arrivals arrivals
2017) 2016)
(2017)[2] (2016)[2]
(%) (%)
1 France 86.9 million 82.7 million 5.1 2.1
2 Spain 81.8 million 75.3 million 8.6 10.5
United
3 - 75.9 million - 2.1
States
4 China 60.7 million 59.3 million 2.5 4.2
5 Italy 58.3 million 52.4 million 11.2 3.2
6 Mexico 39.3 million 35.1 million 12.0 9.3
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Change Change
International International
(2016 (2015
tourist tourist
Rank Destination to to
arrivals arrivals
2017) 2016)
(2017)[2] (2016)[2]
(%) (%)
United
7 37.7 million 35.8 million 5.1 4.0
Kingdom
8 Turkey 37.6 million 30.3 million 24.1 23.3
9 Germany 37.5 million 35.6 million 5.2 1.8
10 Thailand 35.4 million 32.6 million 8.6 8.9
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2.4. INDIAN TOURISM INDUSTRY
India attracted about 4 million foreign tourists in 2006 that spent US$8.9 billion. The
tourism industry in India generated about US$ 100 billion in 2008 and that is expected to
increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism
is the nodal agency for the development and promotion of Tourism in India. It maintains the
Incredible India campaign.
India is one of the popular tourist destinations in Asia. Bounded by the Himalayan
ranges in the north, and surrounded on three sides by water (the Arabian Sea, Bay of Bengal,
and the Indian Ocean), with a long history and diverse culture, India offers a wide array of
places to see and things to do. In 2004, foreign tourists visiting India spent US$ 15.4 billion -
the ninth highest in the world. India is also ranked among the top 3 adventure tourism
destinations.
Tourism industry in India is on a great boom at the moment. It is India's third largest
export industry after Readymade Garments, Gems &Jewelers. India has tremendous potential
to become a major global tourist destination and Indian tourism industry is exploiting this
potential to the hilt. Travel and tourism industry is the second highest foreign exchange
earner for India, and the government has given travel & tourism organizations export house
status.
The buoyancy in the Indian tourism industry can be attributed to several factors.
Firstly, the tremendous growth of Indian economy has resulted in more disposable income in
the hands of middle class, thereby prompting increasingly large number of people to spend
money on vacations abroad or at home. Secondly, India is a booming IT hub and more and
more people are coming to India on business trips. Thirdly, aggressive advertising campaign
"Incredible India" by Tourism Ministry has played a major role in changing the image of
India from that of the land of snake charmers to a hot and happening place and has sparked
renewed interest among foreign travelers.
Travel & tourism industry's contribution to Indian industry is immense. Tourism is

one of the main foreign exchange earners and contributes to the economy indirectly through
its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and
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construction. Tourism industry also provides employment to millions of people in India both
directly and indirectly through its linkage with other sectors of the economy.
According to an estimate total direct employment in the tourism sector is around 20

million.Travel and tourism industry in India is marked by considerable government presence.
Each state has a tourism corporation, which runs a chain of hotels/ rest houses and operates
package tours, while the Central Government runs the India Tourism Development
Corporation.
In the year 2002, the Government of India announced a New Tourism Policy to give
boost to the tourism sector. The policy is built around the 7-S Mantra of Swaagat (welcome),
Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security), Sahyog (cooperation),
Sanrachnaa (infrastructure) and Safaai (cleanliness).
Medical Technology used to be differentiator between India and the West. This gap
has long been bridged since the best hospitals in India now offer the same equipment and
techniques as their counterparts around the world.
The main demand for medical tourism is generated from the 20 million Indians who
live abroad, through a growing number of foreigners also are keen on speedy and inexpensive
treatment. They are influenced by two facts: one that India now has many private hospitals
that the world class and two, that there is one strength that Indian doctors in abundance it is
experience, owing to India’s prodigious population, its doctors treat twice the number of
patients in comparison to doctors in the West, Even more reassuring is the fact that many of
them have studied and practiced medicine abroad.
Between 1996 and 2017, the number of foreign patients seeking treatment in India as
people took to the idea of receiving treatment or diagnosis in with a holiday included. West
Asia for example has avoided the US and Europe for medical treatment after the 9/11
terrorists attacks opting for India instead. Also value added service such as transfers from the
airport, special food for foreigners and translators for patients who cannot speak English and
buoyed travel for the same reason.
Apart from this, government has taken several other measures for the promotion of
tourism. A multi-pronged approach has been adopted, which includes new mechanism for
speedy implementation of tourism projects, development of integrated tourism circuits and
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rural destinations, special capacity building in the unorganized hospitality sector and new
marketing strategy. The outlook for travel industry in India looks extremely bright. India as a
tourism destination is the toast of the world at the moment.
2.5. KERALA TOURISM INDUSTRY
Kerala, a state situated on the tropical Malabar Coast of south-western India is one of
the most popular tourist destinations in the country. Named as one of the ten paradises of the
world by the national Geographic Traveller, Kerala is famous especially for its ecotourism
initiatives. Its culture and traditions, coupled with its varied demography, has made Kerala
one of the most popular tourist destinations in the world. Growing at a rate of 13.31%, the
tourism industry is a major contributor to the State’s economy.
Until the early 1980’s, Kerala was a hitherto unknown destination, with most tourism
circuits concentrated around the north of the country. Aggressive marketing campaigns
launched by the Kerala Tourism Development Corporation- the government agency that
oversees tourism prospects of the state-laid the foundation for the growth of the tourism
industry. In the decades that followed, Kerala Tourism was able to transform itself into one of
the niche holiday destinations in India. The tag line Kerala- God’s own Country was adopted
in its tourism promotions and became synonymous with the State.
Today, Kerala Tourism is global super brand and regarded as one of the destinations
with the highest brand recall. In 2006, Kerala attracted 8.5 million tourists- an increase of
23.68% in foreign tourist arrivals compared to the previous year, thus making it one of the
fastest growing tourism destinations in the world.
2.5.1. MAJOR ATTRACTIONS

Popular attractions in the state include the beaches at Kovalam, Cherai and Varkala; the
hill stations of Munnar, Nelliampathi, Ponmudi and Wayanad; and national parks and
wildlife sanctuaries at Periyar and Eravikulam National Park.
 BEACHES
Flanked on the western coast by the Arabian Sea, Kerala has a long coastline
of 580 Km (360.39 miles); all of which is virtually dotted with sandy beaches.
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Kovalam beach near Thiruvananthapuram was among the first beaches in Kerala to
attract tourists. Rediscovered by back-packers and tan-seekers in the sixties and
followed by hordes of hippies in the seventies, Kovalam is today the most visited
tourist destination in the state.
Other popularity visited beaches in the state include those at Alappuzha beach,
Nattika beach (Thrissur), Vadanappilly beach (Thrissur), Cherai beach, Kappad,
Marari beach, Fort Kochi and Varkala. The Muzhappilangad beach at Kannur is the
only drive- in beach in India.
 BACK WATERS
The backwaters in Kerala are a chain of brackish lagoons and lakes lying
parallel to the Arabian Sea coast (known as the Malabar Coast). Kettuvallam (Kerala
House boats) in the back waters are one of the prominent tourist attractions in Kerala.
Alleppy, known as the “Venice of the East” has a large network of canals that
meander through the town. The Vallam kali (the snake Boat Race) held every year in
August is a major sporting attraction.
The backwater network includes five large lakes (including Ashtamudi kayal
and Vembanad kayal) linked by 1500 Km of canals, both manmade and natural, fed
by 38 rivers, and extending virtually the entire length of Kerala state. The backwaters
were formed by the action of waves and shore currents creating low barrier islands
across the mouth of the many rivers flowing down from the Western Ghats range.
 HILL STATIONS
Eastern Kerala consists of land encroached upon by the Western Ghats; the region
thus includes high mountains, gorges, and deep-cut valleys. The wildest lands are
covered with dense forests, while other regions lie under tea and coffee plantations
(established mainly in the 19th and 20th centuries) or other forms of cultivation. The
Western Ghats rises on average to 1500 m elevations above sea level. Certain peaks
may reach to 2500m. Popular hill stations in the region include Devikulam, Munnar,
Nelliyampathi, Peermade, Ponmudi, Vagamon, Wayanadan Kottancherry Hills.
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 WILD LIFE
Most of Kerala, whose native habitat consists of wet evergreen rainforests at

lower elevations and highland deciduous and semi- evergreen forests in the east, is
subjected to a humid tropical climate. However, significant variations in terrain and
elevation have resulted in land whose biodiversity registers as among the world’s
most significant. Most of Kerala’s significantly bio-diverse tracts of wilderness lie in
the evergreen forests of its easternmost districts.
Kerala also hosts two of the world’s Ramsar convention-listed wetlands: Lake
Sasthamkotta and the Vembanad- Kol wetlands are noted as being wetlands of
international importance. There are also numerous protected conservation areas,
including 1455.4 Km2 of the vast Nilgiri Biosphere Reserve. In turn, the forests play
host to such major fauna as Asian elephant, Bengal Tiger, Leopard, Nilgiri Tahr, and
Grizzled Giant Squirrel. Most remote preserves, including Silent Valley National
Park in the Kundali Hills, harbour endangered species such as Lion-tailed Macaque,
India Sloth Bear, and Gaur. More common species include Indian Porcupine, Chital,
Sambar, Grey Langur, Flying Squirrel, Swamp Lynx, Boar, a variety of catarrhine
Old-World monkey species, Grey Wolf, common Palm Civet.
Silent Valley national park in Palakkad is home to the largest population of

lion- tailed Macaque. They are among the world’s rarest and most threatened
primates.
 AYURVEDA
Medical tourism, promoted by traditional systems of medicine like

Ayurveda and siddha are widely popular in the state, and draws increasing
number of tourists. A combination of many factors has led to the increase in
popularity of medical tourism: high costs of healthcare in industrialized nations,
ease and affordability of international travel, improving technology and
standards of care.
However, rampant recent growth in this sector has made the government
apprehensive. The government is now considering introduction of a grading system
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which would grade hospitals and clinics, thus helping tourists in selecting one for
their treatments.
 CULTURE
Kerala’s culture is mainly Dravidian in origin, deriving from a greater Tamil

heritage region known as Tamilakam. Later, Kerala’s culture was elaborated on
through centuries of contact with overseas cultures. Native performing arts include
Koodiyattom, kathakali and from its offshoot Kerala natanam, Koothu (akin to stand-
up comedy), Mohiniaattam (“dance of the enchantress’), Thullal, Padayani, and
Theyyam. Other arts are more religion and tribal- themed. These include Chavittu
nadakam, Oppana, which combines dance, rhythmic hand clapping, and Ishal
vocalizations. However, many of these art forms largely play to tourists or at youth
festivals, and are not as popular among most ordinary Keralites. These people look to
more contemporary art and performance styles, including those employing mimicry
and parody. Additionally, a substantial Malayalam film industry effectively competes
against both Bollywood and Hollywood.
Several ancient ritualized arts are Keralite in origin; these include

Kalaripayattu and payattu. Among the world’s oldest martial arts, oral tradition
attributes kalaripayattu’s emergence to Parasurama. Other ritual arts include
Theyyam and Poorakkali.
In respect of Fine arts, the State has an abounding tradition of both ancient and
contemporary art and artists. The traditional Kerala murals are found in ancient
temples, churches and palace across the state. These paintings, mostly dating back
between the 9th to 12th centuries AD, display a distinct style, and a colour code which
is predominantly ochre and green.
2.6. HOTEL INDUSTRY OVERVIEW

A hotel is an establishment that provides paid lodging on a short-term basis. The
provision of basic accommodation, in times past, consisting only of a room with a bed, a
cupboard, a small table and a washstand has largely been replaced by rooms
with modern facilities, including en-suite bathrooms and air conditioning or climate control.
Additional common features found in hotel rooms are a telephone, an alarm clock, a
television, a safe, a mini-bar with snack foods and drinks, and facilities for making tea and
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coffee. Luxury features include bathrobes and slippers, a pillow menu, twin-sink vanities, and
Jacuzzi bathtubs. Larger hotels may provide additional guest facilities such as a restaurant,
swimming pool, fitness center, business center, childcare, conference facilities and social
function services. Hotel rooms are usually numbered (or named in some smaller hotels
and B&Bs- Bed and Breakfasts) to allow guests to identify their room. Some hotels offer
meals as part of a room and board arrangement. In the United Kingdom, a hotel is required by
law to serve food and drinks to all guests within certain stated hours. In Japan, capsule
hotels provide a minimized amount of room space and shared facilities.
2.6.1. HISTORY OF HOTEL INDUSTRY
A summary of key events in the history of the industry would include the following:
While the practice of renting space to travellers stretches back to antiquity, what
could be considered the modern concept of a hotel derives from 1794, when the City Hotel
opened in New York City. While the practice of renting space was not new, the City Hotel
was purported to be the first building devoted exclusively to hotel operations. For its time,
the building was quite large and possessed 73 rooms. Similar operations soon appeared in
such nearby cities as Baltimore, Boston and Philadelphia. Interestingly, New York City’s first
skyscraper was a hotel - the six story-A Delphi Hotel.
Hotels took a distinct step up in style and class when the Tremont House opened in
Boston in 1829. This hotel was considered by many to be the beginning of what was
regarded as first class service. With 170 rooms, the Tremont House was a large facility. In
addition, the hotel offered features which, for the time, were amazing. Private single and
double rooms were available, which offered not only privacy, but also security. In addition
to water pitchers and a washing bowl, free soap was provided in each room. The Tremont
House offered French cuisine and, reportedly, was the first hotel to have a Bellboy.
In the 1920’s, hotel building entered a boom phase and many famous hotels were
opened, including the Waldorf Astoria, New York’s Hotel Pennsylvania, and the Chicago
Hilton and Towers, which was originally named the Stevens.
Motels began to replace roadside cabins as use of the automobile spread throughout
society. Offering clean rooms with adjacent parking, motels enjoyed great popularity with the
travelling public.
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In the 1950’s and 1960’s, the practice of franchising appeared within the industry.
Franchising enabled entrepreneurs to expand their operations without the use of substantial
capital.
For much of their history, hotels were owned and operated by individuals. However,
as franchises and chains began to appear, individually owned hotels found themselves
increasingly at a competitive disadvantage. By the 1960’s, independent prospects began to
improve as the result referral organizations such as Quality Courts, Best Western, Master
Host and Best Eastern.
From the 1980’s forward, mergers and acquisitions became common within the
industry, and brands become hotly traded commodities.
2.7. HOSPITALITY AND TOURISM
In recent years, the term hospitality has become increasingly popular and may be
interpreted in a number of ways whether it is commercial or industrial and public services.
There are several components in the tourism industry, for example, food and
beverages, lodging, place of attractions, and transportation. All three components are related
to the hospitality. Each of the components has the connection to each other. So, in order to
make sure that the customer will feel satisfied using the tourism services we have to ensure
that the customer felt satisfied using each of the components. We need hospitality applied in
the food and beverages, so as customer will fell well treated during their lunch, dinner or
others. We also need hospitality applied in the transportation provider so as customer or
passenger will feel comfortable during their journey. Other tourism components also need the
hospitality. Thus, it show us how hospitality very important to the tourism industry.
What we provide in the tourism industry is the intangible product. Customers will
never feel or experiencing the product offered unless they have bought it. So, when they buy
the services offered we must provide them with the best services so as they will feel
comfortable using our services. All the services provided such as, guest greeting, and provide
the clean and tidy room, showing the facilities provided an others are types of hospitality. For
example when the guest checking in the hotel, we cannot simply just give them the room key
and let the guest looking for their room without any assistance. This is not called as
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hospitality. Hospitality is more than that; we have to be friendly, courteous, helpful, and so
forth.
Finally, the importance of hospitality is to encourage the repetition guest or customer. In the
tourism industry, people are not just looking at the facilities or price offered but also looking
at the services provided. If they felt satisfied with their previous experience using the service
they might come again besides promote the services to others. This situation will generate the
revenue for the company. Company did not need to work hard to promote their services.
They just have to concern with the services provided to customer and must fulfil the
customers’ expectation. This is more valuable rather than we just provide the best facilities
but with the worst services. Tourism related company must emphasize on hospitality in order
to success.
2.8. HOTEL INDUSTRY IN INDIA
Over the last decade and half the mad rush to India for business opportunities has
intensified and elevated room rates and occupancy levels in India. The successful growth
story of 'Hotel Industry in India' seconds only to China in Asia Pacific. The Hotel Industry is
inextricably linked to the tourism industry and the growth in the Indian tourism industry has
fuelled the growth of Indian hotel industry. The thriving economy and increased business
opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost
airlines and the associated price wars have given domestic tourists a host of options.
The hotel industry in India is going through an interesting phase. The industry has a capacity
of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last
year and at the current rate, the demand will soar to 10 million by 2010 – to accommodate
350 million domestic travellers. The hotels of India have a shortage of 150,000 rooms
fuelling hotel room rates across India. With tremendous pull of opportunity, India has
become a destination for hotel chains looking for growth. Due to such a huge potential
available in this segment, several global hotel chains like the Hilton, Accor, Marriott
International, Berggren Hotels, Cabana Hotels, Premier Travel Inn (PTI), InterContinental
Hotels group and Hampshire among others have all announced major investment plans for
the country. The Government's move to declare hotel and tourism industry as a high priority
sector with a provision for 100 per cent foreign direct investment (FDI) has also provided a
further impetus in attracting investments in to this industry. It is estimated that the hospitality
sector is likely to see US$ 11.41 billion rise in the next two years, with around 40
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international hotel brands making their presence known in the country by 2011.
Simultaneously, international hotel asset management companies are also likely to enter
India. Already, US-based HVS International has firmed up plans to enter India, and industry
players believe others like Ashford Hospitality Trust and IFA Hotels & Resorts among others
are likely to follow suit.
One of the major reasons for the increase in demand for hotel rooms in the country is
the boom in the overall economy and high growth in sectors like information technology,
telecom, retail and real estate. Rising stock market and new business opportunities are also
attracting hordes of foreign investors and international corporate travellers to look for
business opportunities in the country. Also India has been ranked as the fourth most preferred
travel destination and with Lonely Planet selecting the country among the top five
destinations from 167 countries; India has finally made its mark on the world travel map.
2.9. CLASSIFICATION OF HOTELS
Classification is based on many criteria. The hotel industry is so vast that many hotels
do not fit into single well defined category. Industry can be classified in various ways, based
on location, size of property etc. The main hotel chains of India are: The Taj Group of Hotels,
the Oberon Group and ITC Welcome group.
Some of the international chains are Hyatt, Marriott, and Le Meriden etc. These
properties have also come up in India now.
2.9.1. BASED ON LOCATION
 City Centre: Generally located in the heart of city within a short distance from
business centre, shopping arcade. Rates are normally high due to their location
advantages. They have high traffic on weekdays and the occupancy is generally
high. Example: Taj Mahal, Mumbai
 Motels: They are located primarily on highways, they provide lodging to highway
travellersand provide ample parking space. The length of stay is usually overnight.
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 Suburban hotels: They are located in suburban areas, it generally have high
traffic on weekend. It is ideal for budget travellers. In this type of hotel rates are
moderately low.
 Airport hotels: These hotels are set up near by the airport. They have transit guest
who stay over between flights.
 Resort hotels: They are also termed as health resort or beach hill resort and so
depending on their position and location. They cater a person who wants to relax,
enjoy themselves at hill station. Most resort work to full capacity during peak season.
Sales and revenue fluctuate from season to season.
 Floating hotels: As name implies these hotels are established on luxury liners or
ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally
small and all furniture is fixed down. It has long stay guest.
 Boatels: A house boat hotels is referred as boatels. The shikaras of Kashmir and
kettuvallam of Kerala are houseboats in India which offers luxurious
accommodation to travellers.
 Rotes: These novel variants are hotel on wheel. Our very own "palace on wheels"
and "Deccan Odyssey" is trains providing a luxurious hotel atmosphere. Their
interior is done like hotel room. They are normally used by small group of
travellers.
2.9.2. BASED ON SIZE OF PROPERTY

The main yardstick for the categorization of hotel is by size the number of
rooms available in the hotel.
 Small hotel: hotel with 100 rooms and less may be termed as small hotels.
 Medium sized hotel: hotel which has 100-300 rooms is known as medium sized
hotel.
 Large hotels: hotel which have more than 300 rooms are termed as large hotels.
 Mega hotels: are those hotels with more than 1000 rooms.
 Chain hotels: these are the groups that have hotels in many numbers of locations
in India and international venues.
2.9.3. BASED ON THE LEVEL OF SERVICE
Hotels may be classified into economy, and luxury hotels on the basis of the level of
service they offer.
20
 Economy/ Budget hotels: These hotels meet the basic need of the guest by providing
comfortable and clean room for a comfortable stay.
 Mid-market hotels: It is suite hotel that offers small living room with appropriate
furniture and small bed room with king sized bed.
 Luxury hotels: These offer world class service providing restaurant and lounges,
concierge service, meeting rooms, dining facilities. Bath linen is provided to the
guest and is replaced accordingly. These guest rooms contains furnishing, artwork
etc. prime market for these hotels are celebrities, business executives and high
ranking political figures. Example: Hyatt Regency, New Delhi.
2.9.4. BASED ON THE LENGTH OF STAY

Hotel can be classified into transient, residential and semi residential hotels depending
on the stay of a guest.
 Transient Hotel: These are the hotel where guest stays for a day or even less,
they are usually five star hotels. The occupancy rate is usually very high. These
hotels are situated near airport.
 Residential hotels: These are the hotel where guest can stay for a minimum
period of one month and up to a year. The rent can be paid on monthly or
quarterly basis. They provide sitting room, bed room and kitchenette.
 Semi residential hotels: These hotels incorporate features of both transient and
residential hotels.
2.9.5. BASED ON THEME

Depending on theme hotel may be classified into Heritage hotels, Emotes,
Boutique hotels and Spas.
 Heritage hotel: In this hotel, a guest is graciously welcomed, offered room that
have their own history, serve traditional cuisine and are entertained by folk artist.
These hotels put their best efforts to give the glimpse of their region. Example: Jai
Mahal palace in Jaipur.
 Ecotels: these are environment friendly hotels these hotel use ecofriendly items in
the room. Example: Orchid Mumbai is Asia first and most popular five star ecotel.
21
 Boutique hotels: This hotel provides exceptional accommodation, furniture in a

themed and stylish manner and caters to corporate travellers. Example: In India
the park Bangalore is a boutique hotel.
 Spas: is a resort which provide therapeutic bath and massage along with other
features of luxury hotels in India Ananda spa in Himalaya are the most popular
Spa.
2.9.6. BASED ON TARGET MARKET
 Commercial hotel: They are situated in the heart of the city in busy commercial
areas so as to get good and high business. They cater mostly businessmen.
 Convention hotels: These hotels have large convention complex and cater to
people attending a convention, conference. Example: Le Meriden, Cochin, is a
hotel with largest convention centre in south India.
 Resort hotels: These leisure hotels are mainly for vacationers who want to relax
and enjoy with their family. The occupancy varies as per season. The atmosphere
is more relaxed. These are spread out in vast areas so many resorts have solar
powered carts for the transport of guest.
 Suite hotels: These hotel offer rooms that may include compact kitchenette. They
cater to people who are relocating act as like lawyers, executives who are away
from home for a long business stay.
 Casino hotels: Hotel with predominantly gambling facilities comes under this
category, they have guest room and food and operation too. These hotels tend to
cater leisure and vacation travellers. Gambling activities at some casino hotels
operate 24 hours a day and 365 days a year.
2.9.7. EARNINGS FOR HOSPITALITY HOTEL INDUSTRY

Hotel Industry gets Revenue through
 Providing rooms
 Providing Banquet Halls
 Restaurants
It gets additional revenue for
 Telephone call services
22
 Laundry services
 Travel services
 Internet services
 Spa, Ayurvedic and beauty treatments
2.9.8. DEPARTMENT OF HOTELS THAT ARE AVAILABLE FOR
GUEST 24 X 7
 Hotel industry kitchen/ food production department
 Hotel industry engineering department
 Hotel industry Front desk department
 Hotel industry Housekeeping department
 Hotel industry Food & Beverage Service department
 Hotel industry Gym/ Health Club/ Sports department
 Hotel industry Parking/ Shops department
Hotel Industry Kitchen/ Food Production: Kitchen & food production is a department of
hotel that is responsible for food. Even hotels having Coffee Shop provides 24 hour services
to the guest.
Hotel Industry Engineering: - If any problems come up in rooms like bulb fuse, A/C not
functioning, then the Hotel Engineers are contacted. They are also available 24 hours.
Hotel Industry Front desk: - Front desk gives the first impression on guests, if a guest likes
this section, only then he will go for other options like restaurant, laundry, etc. Front desk
consists of young and energetic staff that is always (24 x 7) there to help guests. They are
also responsible for Business Centre, Internet Access. This department is also responsible for
making C-Form for Foreigner Clients, providing safety lockers to the guest, taking
reservation by telephone, E-Mails, and Fax from the guests. Also providing guests Foreign
Exchange Services.
Hotel Industry Housekeeping: - Housekeeping is available 24 X 7 for guest, making their
bedroom, bathroom, etc. Providing guest Laundry services also do day to day room cleaning
for guests.
Hotel Industry Food & Beverage Service: - They include providing guest the services
whether in rooms, Restaurants or Banquets, or in Conference rooms.
Hotel Industry Travel Desk: - They are responsible for arranging day to day travels for the
guest. They also book tickets for the guests, and also provide them information for
sightseeing.
23
Gym/ Health Club/ Sports: - Medium and large hotels provide Gyms, Swimming Pool,
Health Club, Beauty Parlor, Saloon, games like Billiards, Pool, etc. and other such facilities
to their guests. Most of the Hotels provide these facilities complimentary with the rooms.
Parking/ Shops: - Few Star hotels provide big parking space, shops in the restaurant itself
for the guests ‘convenience.
24
CHAPTER 3
COMPANY PROFILE
25
3.1. INTRODUCTION
Tourism was declared as an industry in Kerala way back in 1986, effective marketing
and promotional measures were undertaken by different agencies and organisations to attract
tourists and to highlight Kerala as a distinct destination. With this aim, on 1st April 1966 a
concern named Kerala Tourism Development Corporation (KTDC) came into existence.
The Corporation is concentrating on innovative tourism and high standard service and
various well researched tour packages with a good measure of action, excitement and
adventure. With an array of prime properties set in the finest spots of Kerala’s theme
destinations, KTDC presents exotic ways to experience the State with its perfection.
Designed to give a feeling of the heritage of hospitality, the Kerala Tourism

Development Corporation is offering a spectacular view of the State’s natural splendour and
the tastes of its spicy richness with a subtle blend of traditional and luxurious properties. The
largest hotel chain in Kerala, KTDC has over sixty properties across the state which includes
a range of luxury and budget hotels as well as Yatri Nivasses and motels to make tourist stay
an exciting experience. Almost all these exclusive properties are set in exotic theme locales
across the State and all the properties have multi cuisine restaurants, bars and cafeterias.
Apart from the exclusive array of day tours and holidays packages the Central
Reservation Cell of KTDC takes care of tourists onward journey reservations and bookings
in selected hotels across India. Kerala Tourism Development Corporation thereby plays a
significant role in the development of tourism in the State. A large number of foreign as well
as domestic tourists are catered by KTDC every year and the tourists approved the services
rendered to them by the corporation.
3.2. HISTORICAL BACKGROUND
Kerala Tourism Development Corporation, fully owned Government Company

head quartered at Thiruvanathapuram in the state of Kerala, has a history of gradual
development and advancement throughout the 44 years of its existence. KTDC is focusing
on tourism related infrastructure and is opening a chain of hotels and transport network for
tourist in Kerala. The company was incorporated on 29th December 1965 by the name
26
‘Kerala Tourism and Handicraft Corporation Private Limited’ with an authorised capital of
Rupees One crore.
The company was registered as a private limited company and commenced its
business on first April 1966 with three hotels namely Aranya Nivas, Lake Palace and
Kovalam complex which have been handed over by the Government of Kerala as capital.
On 15th July 1970 the corporation was reorganised with the name ‘Kerala Tourism
Development Corporation (KTDC)’.
The State’s premier destination developer, Kerala Tourism Development

Corporation is registered under the Companies Act 1956. At the time of its incorporation
the company was in possession with the corporate office in Thiruvananthapuram and the
three regional offices at Trivandrum in the south-region, Kochi in the central-region and
Kannur in the north-region of the State. At present the corporation has 71 units which
include nine premium hotels, eight budgeted hotels, 14 tamarind easy hotels, 12 motels,
three restaurants, eighteen restaurants cum beer parlours, one Central Reservation Cell
(CRC), three Tourist Reservation Centre (TRC), two travel divisions and one shopping
complex. Corporation has memberships in prestigious international and national
organisations such as World Tourism Organisation (WTO), Travel Agents Association of
India (TAAI), Federation of Hotel and Restaurant Association of India (FHRAI), and
Indian Association of Tour Operators (IATO). Recently KTDC established a subsidiary
company called Tourist Resort Kerala Limited (TRKL) for forming joint venture with
leading players in the tourism industry.
The autonomous body undertaken by the Government of Kerala to provide services

to the tourists coming in the State, KTDC has a wide range of services for tourists such as
accommodation, transportations, sightseeing facilities, vending vehicles and hotels, and
reservation facilities, conducted and package tours etc. Official host of God’s Own Country
is the slogan of KTDC, which offers all excellent easy ways to knowledge of Kerala and
gains several awards and recognitions for its hospitality and generosity. The properties of
KTDC ranging from luxury hotels to budget hotels and motels, Yatri Nivases and
restaurants, KTDC aptly qualifies as the official host to ‘God’s Own Country’. The
premium p roperties of this largest chain in the state are located in the most picturesque
theme destinations of Kerala and give a different ambience of their places especially the
Royal Palaces as the island of Kochi, Lake Palace and Arya Nivas in the jungles of
27
Thekkady, Hotel Samudra waterscapes as the Vambanad Lake and Tea County at Munnar
etc. KTDC also offers Ayurveda Centres, Cultural entertainment and the best of Kerala’s
cuisine at its major establishments.
The most reliable tour operator and travel agent of Kerala Government, KTDC
offers comprehensive holiday package - exclusive escapades offers holiday packages and
conducted tours that are set in the premium properties of KTDC. As a pioneering tourism
development corporation, KTDC has also introduced innovative concepts like Insured
Holiday and Rail Holidays, which provide a complete experience of Kerala. Its service is
now able to give the travellers all information regarding ticketing, visa facilitations,
national and international air ticketing and several striking tour packages.
Kerala Tourism Development Corporation is actively involved in building up basic

infrastructure needed for the development of tourism in the State. It has a diversity of
hotels from the most luxurious to the most economical and from small motel to world-class
resorts which provide something for every taste and budget. The company is engaged in
renovating all its major hotels like Mascot Hotel, Arya Nivas, Lake Palace Hotel Samudra
etc. located at different destinations of the State. KTDC operates pilgrim’s shelter at
Sabarimala every year and full-fledged restaurants at Pamba to serve lakhs of pilgrims.
The Amusement Park at Veli Tourist Village commissioned recently is an important feature
of the tourist spot. Neeraja the floating restaurant at Veli, Kettuvallams (houseboats) of the
Tharavaadu style at Kumarakam Tourist Complex and other very attractive speed boats
and cruise boats are innovative facilities provided by KTDC for tourists recently.
KTDC regularly conducts food festivals in the occasions of Onam, Christmas, Eid
etc. mainly at Mascot Hotel, Thiruvananthapuram and occasionally in other centres across
the state. The corporation is a regular participant in National and International fair like
International Trade fair held at Pragathi Maidan, New Delhi, International Tourism Borse
(ITB) Berlin, World Travel Mart (WTM) London and ATM Dubai etc. KTDC has
implemented a year-long umbrella package campaign called ‘Visit Kerala Year 2009’ for
non-resident Ke ralites from January 20th, 2009 with the aim of wooing more domestic
tourists to the state by focusing on Tier-II cities.
28
3.3. VISION
Following are the vision statements of KTDC
 To expand its service base to more and more emerging areas and in developing new
tourist destinations in the State.

 To increase Foreign Exchange and Domestic contribution.

 To increase the Employment Opportunity (direct & indirect)

3.4. MISSION

“To develop infrastructure and quality accommodation options in the State and thereby
promoting tourism as a whole in Kerala”
3.5. STRATEGIC INTENTS
Being one of the chief promoters of tourism in Kerala, KTDC has been accepted
the following as the strategic intents of the organisation. These strategic intents are acting
as interlinks between the vision, mission and strategic and established objectives of the
Corporation.
 To elevate tourism as the economic and employment priority of the State by using
tourism as the vehicle of growth for physical, social and economic development of
the State.

 To promote sustainable tourism development with focus on Conservation and
Preservation of Heritage through participation of Panchayathi Raj Institutions.

 To ensure quality services in all areas of tourism in the form of regulation,
classification and monitoring.

 To develop infrastructure through private sector and private-public partnership,
with government acting as a facilitator and catalyst.

 To develop and promote tourism products with continuous focus on backwaters,
Ayurveda, performing arts, pilgrim centres, cuisines and eco-tourism. While
29
promoting Ayurveda, the value of naturopathy herbal medicines and tribal

medicines will also be given due importance.
 To concentrate on development of basic infrastructure by co-ordinating all line
departments.
 To create sufficient quality human resources in the field of tourism within the State
and strengthen the institutional mechanism.

 To enact proper legislation to sustain the industry and to regulate tourism activities
through Government, industry and PRI collaboration.

 To explore and develop new markets for Kerala Tourism products at both domestic
and international levels.

 To conserve and preserve the unique cultural heritage of the State.

 To ensure the safety and security of tourists.
3.6. OBJECTIVES
KTDC has been established by the Government of Kerala to promote tourism in the
state. Along with this prime objective the corporation is taking into consideration the
following objectives also.
 Take over and manage existing hotels and sell, construct, purchase, acquire, lease,
take on lease, run and maintain hotels, motels, restaurants, canteens, cafeterias,
travellers’ lodges for the purpose of boarding, lodging and stay of tourists.

 To organise conducted tours and tour packages in order to generate income to the
State.

 To provide entertainment facilities to tourists by way of cultural shows, dances,
music concerts, cabarets, ballets, film shows, sports and games etc.

 To provide transport facilities to tourists.
30
 Provide shopping facilities to tourists, and establish and manage shops, including
duty-free shops to promote handloom and handicraft products.

 To study the marketing strategies and to understand the market segment.

 To find out the influence criteria of the marketing towards the hotel.
 To understand the relevant technologies and are to perform the tasks necessary to
meet the development objectives.

 To understand the Marketing/ Sales including contacts in the industry (prospectus,
distribution channels, media) familiarity with advertising and promotion, personal
selling capabilities, general management skills and a history of profit and loss
responsibilities.
3.7. SHARE CAPITAL

The corporation was incorporated with an authorised share capital of Rs. One crore
divided into One Lakh equity shares of Rs. 100/- each. With the expansion in the volume
of business, the share capital base has also been increased. At present the authorized share
capital of the corporation is Rs.50 crore and the paid up capital is 49.7 crore. The proposal
to enhance the authorized capital to Rs.75 crore is under approval with the government.
The shares of the corporation are held by the Governor of Kerala (4979483 shares of
Rs.100/- each) and the Secretary of Tourism (One share of Rs.100).
31
CHAPTER 4
ORGANISATION STRUCTURE
32
4.1. INTRODUCTION
The official host to God’s own country, Kerala Tourism Development
Corporation brings its extensive understanding of Kerala to offer the most
comprehensive tourism network in the State from reservation to transit, houseboat
cruises to heritage tours, motels to information centres, holiday packages to nice
holidays, spice tours to worldwide safaris and more. In order to make the
organisation functioning smoothly, KTDC has built a very conformable functional
organisational structure.
KTDC is divided into Centralised and Decentralised units. The centralised
units are controlled by the three regional offices of North, South and Central zones
of the State located at Calicut, Thiruvananthapuram and Kochi respectively. Under
the Central Reservation Cell there are four Tourist Reservation Centres functioning
at Thiruvananthapuram, Kochi, Chennai and Delhi. The Decentralised units consist
of large number of units such as luxury hotels, premium hotels, budgeted hotels,
motels etc. These independently functioning units have their own administrative and
office personnel to look after the day to day operations. They utilise allocated funds
for the day to day commercial functions of the units concerned.
The Working Structure of Kerala Tourism Development Corporation consists
of mainly seven departments which can be viewed in the form of an organisational
chart as shown in the figure 4.1 and the detailed Organisational Structure has been
shown in figure 4.2.
33
Figure 4.1: Organisational Chart of KTDC
CHAIRMAN
Board of Directors
Managing Director
Secretary&
Finance Controller
Commercial Accounts & Engineering System

Finance Analysis
Department Department
Department Department
Marketing Personnel Training

Departmen Departmen Departmen
Source: KTDC, official records.
The Chairman, who is a nominee of the Government, stands at the top of the
management hierarchy of Kerala Tourism Development Corporation. One among
the Board of Directors will be elected as the Managing Director to look after the
activities and functions of each departments of the Corporation. KTDC consists of
seven Functional departments such as Commercial Department, Marketing
Department, Personnel Department, Accounts and Finance Department,
Engineering Department, Training Department and System Analysis Department.
Figure 4.2 gives a diagrammatic view of the functional departments of the
Corporation.
34
Figure 4.2: Organisational Structure of KTDC
35
4.2. FUNCTIONAL DEPARTMENTS
In order to make the organisation functioning smoothly and effectively,

KTDC has been divided into different functional departments which consist of
Commercial, Marketing, Personnel, Engineering, Accounts & Finance, Training and
System & Networking departments. A brief description about the each department
follows.
4.2.1 COMMERCIAL DEPARTMENT
Figure 4.3: Commercial Department Structure
Commercial Department
Commercial Manager 1 Commercial Manager 2
Office
Regional Regional
Manager Manager
Premium
Hotels
Regional
Manager
Budget
Hotels
Others
Superintendent
Staff
Source: KTDC, official records
36
One among the departments of supreme importance, Commercial Department

consists of two Commercial Managers, three Regional Managers, Superintendent
and other staff members. Commercial Manager 1 controls the decentralised units
and Commercial Manager 2 controls the centralised units. Beyond the three
Regional Offices, the travel and tour section also comes under the Commercial
Manager 2. The travel and tour section is in charge of purchasing vehicles including
lease and hire purchase, maintenance and repair of boats and other vehicles etc.
Figure 4.3 shows the departmental structure of Commercial Department.
4.2.1.1. FUNCTIONS OF COMMERCIAL DEPARTMENT
 Central Purchase: Commercial Department makes the purchase of the

cutlery, crockery, grocery etc for the units of KTDC. Quality and price are
the two standards taken for the purchase of materials.
 General Correspondence of the Units: Commercial Department looks after

the functioning of the units. The commercial department controls and
coordinates the functioning of the units.
 Keeping of Documents: The department keeps the files regarding the

payment details which include payment of land tax, building tax etc. of the
units.
 Development and Renovation of Units: Commercial Department provides

necessary suggestions for the development of the Units. The department
conducts inspection regarding the performance of the units as well as to
avoid malpractices within the units.
 Customer Support Services: The Department gives necessary support to the
customers in case of credit purchase, advance booking etc.
 The Function includes: Assists the Corporation in planning materials and
services, and serves an information centre on material knowledge relating to
price and source of supply and delivery made.
37
4.2.2. MARKETING DEPARTMENT
The Marketing Department concerned with the marketing efforts of the final
product market oriented activities is necessary in today’s competitive world.
Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods and services to create exchanges that
satisfy individual and organisational goals. The main function of marketing is
managing relationships in an organisation, with outside vendors, and the consumer.
Without marketing there is no consumer and without the consumer there is no use
for the product or service the company is producing.
Tourism Marketing comprises fact finding, data gathering analysis and

promote ensuring and facilitating sales, selection of marketing, planning,
(distribution), co-ordination, control and evaluation (marketing, planning and
audit), developing professionally sound personnel8. Marketing department of Kerala
Tourism Development Corporation is putting their integral effort to satisfy tourists
and also transforming the potential tourists into actual customers. The Department
deals with direct selling, organising national and international travel tour fairs,
printing and distribution of various tariff, hospitality, handling customer
complaints, promotion, advertising, publicity, telemarketing etc. The structure of
the marketing department can be depicted as shown in figure 4.4
4.2.3.1. OBJECTIVES
 To satisfy the customer needs and wants through creating and exchanging
services.
 To develop and retain the customers.
4.2.3.2FUNCTIONS
 Analysing customer complaints and to take preventive action against

recurrence of similar complaints.
 Informing the customers about the services and products offered by KTDC
through various means and thereby promoting the business through press
release, tour fest etc.
38
 Developing new tour packages and renovating existing packages in accordance

with the customer preferences.
 Collecting information and facts, and analysing the information.
 Undertaking intensive and additional promotional efforts to attract maximum
customers to the organisation
Figure 4.4: Structure of Marketing Department
Manager Marketing
Deputy Manager
Marketing
Other Staff
Manager - Central
Reservation Cell
TRC TRC TRC TRC

TVM Cochin Chennai New Delhi
39
4.2.4. PERSONNEL DEPARTMENT
Personnel and Administrative Department is responsible for ensuring the

maximum utilisation of the available human resources to achieve the organisational
objectives as well as carrier goal of the employees. In KTDC there are 606
permanent staff, 800 contract employees and 532 trainees. Employees recruited as
trainees are usually taken for a period of 6 months, which may be extended for one
or two terms if required. As the main business of KTDC is hotels, which is mainly
of seasonal nature, the organisation employs casual labours on daily wage to meet
the urgent requirements. The figure 4.5 shows the organisation of the employees in
the Personnel Department of Kerala Tourism Development Corporation.
4.2.4.1. FUNCTIONS
The functions of the Personnel Department consists of recruitment, selection,

probation, termination and reversion, seniority, termination of services, retirement
from services, allowances, holidays, working hours, leave, dispensary action,
recovery of damages, industrial relations and trade union matters, and training and
development programmes etc.
Subject to the provisions in the Articles of Association, recruitment to

services of the Corporation shall ordinarily be made by direct appointments,
promotions, deputation from other services. Selection of candidates for
appointment to posts under the Corporation shall be made by the Staff Selection
Committee of the Board constituted for the purpose. The Corporation have the right
to terminate the service of any employee by discharge, dismissal, retirement and
retrenchment. The Personnel & Administrative department solves the dispute
occurring in the organisation. They render legal advice on matters referred from
various other department of the Corporation on subject to varying from recruitment
and other service matters to commercial transaction. The department organises
various training and development programmes for both new and existing employees
in the Corporation with the co-operation of the training department.
40
Figure 4.5: Personnel Department Structure
Personnel Officer
Deputy Manager
Personnel
Senior
Superintendent
(Administration)
Junior Junior
Superintendent (HR) Superintendent (P&A)
Senior Office Senior Office

Assistant Assistant
Office Assistant Office Assistant
41
4.2.5. ACCOUNTS AND FINANCE DEPARTMENT
Finance and secretarial sections of KTDC comes under the control of

company secretary. He has to perform financial as well as the secretarial functions.
In the absence of MD, Company Secretary is the appellate body. He has to attend
the meeting on behalf of the company and has to control and coordinate the
functioning of all units. Financial functions like fund raising and fund allocation is
done by this section. The preparation of final accounts and other major accounts are
approved by the company secretary.
The Accounting Department deals with the maintenance of records relating

to the financial dealings of KTDC such as the computation of salary and
maintenance of accounts of the units etc. Accounting in the commercial
organisation represents writing of financial transactions of the enterprise in a
chronological order under the double entry system of book-keeping in an accrual
basis.
The centralised and decentralised units sent the income and expenditure
statements and the other necessary accounts to the head office. After coordinating
the necessary accounts, the head office prepares the consolidated accounts for
financial control and uniform collection of the sales analysis statement, sundry
debtors’ statement, and advance received statements are used for management and
budgetary control.
4.2.5.1. FUNCTIONS
 Preparation of advanced capital budgets and budgets for each unit.
 Preparation and maintenance of accounts.
 Preparation of capital budget on the request of the units for capital addition
based on future programme for development.
 Records all details regarding the purchase of goods and its payments.
 Monitoring internal audit system.
 Budget and budgetary control.
42
 Maintenance of payroll.
 Statutory audit.
 Recording of receipts and payments made to casual labourers/ trainees,

contractual payments, payment of goods, sales tax/luxury tax, service tax etc.
 Recording of transactions regarding purchase of assets.
Figure 4.6: Structure of Accounts Department
Secretary& Finance
Controller
Chief Accounts
Officer
Accounts Officer
Superintendent of
Accounts
Senior Accountant
Accountants
Other Staff
Source: KTDC
43
4.2.6. TRAINING DEPARTMENT
The Training Department of Kerala Tourism Development Corporation came

to existence in August 2007, as the Corporation was given special attention to
improve productivity of the human resources. The Training Department is headed
by the Manager for Training. The strategic planning of this department is to
improve productivity and increase profit. Training and development programmes
are given to all employees of KTDC in order to improve their technical and
behavioural skills.
Types of training provided by the training department of KTDC consist of On

the Job Training and Off the Job Training. On the job training is the most effective
but least expensive method as the trainee learns by experience and making him
highly competent. Job Instruction Training is the main on the job training adopted
by KTDC. Off the Job Training consists of lectures or verbal presentation of
information by an instructor to a large audience.
Figure 4.7: Structure of Training Department
Manager Training
Faculties
Other Staff
Members
4.2.7. ENGINEERING DEPARTMENT
The Engineering Department of KTDC headed by Chief Corporation

Engineer. The department undertakes all the construction and maintenance
activities of the corporation. It mainly deals with the construction of new hotels,
projects etc. The maintenance of existing buildings and properties are also done by
the Engineering Department. The organisational structure of the Engineering
Department is cited in Figure 4.8
44
Figure 4.8: Structure of Engineering Department
Chief Corporation
Engineer
Project Engineer 1 Project Engineer 2 Project Engineer 3

(Civil) (Mechanical) (Electrical)
Deputy Manager
(Mechanical)
Engineers Electrician
Overseers Maintenance Staff
The land required for the construction of hotels and other properties is mainly
KTDC undertaken by acquisition. The government provides the land for the
construction of the units. KTDC appoints external architects for construction works.
The necessary materials required for construction are usually purchased by giving
tenders in newspapers.
The Engineering Department of Kerala Tourism Development Corporation is

mainly divided into three sections, they are
 Civil Engineering Section
 Mechanical Engineering Section
 Electrical Engineering Section
45
4.2.7.1. CIVIL ENGINEERING WING
The Civil Engineering section of Engineering Department of KTDC deals with:
 Construction of plans for the new projects
 Prepares plans for the extension of the existing units
 Up gradation of the existing units
 Maintenance of the existing units
4.2.7.2. MECHANICAL WING
The Mechanical Wing of the Engineering Department does the repairing

works of the lifts, air conditioners, piping works etc. The repairs of the automobiles
and boats are done by this wing and they have to check frequently the working
conditions and functioning of the above said.
4.2.7.3. ELECTRICAL WING
The Electrical section deals with all the electrical works in co-ordination with
the mechanical wing.
4.2.8. SYSTEMS AND NETWORKING DEPARTMENT
The Systems and Networking division of Kerala Tourism Development

Corporation is in charge of controlling and co-ordinating the entire systems and
networking functions of KTDC office, its hotels and other units. The entire systems
coming under KTDC hotels have been linked with the Centralised Server at the
Headquarters, which helps to rectify the software complaints. The computerised
system also helps in collecting the Sales data; identify the changing demand of both
customer as well as market and also the necessary of new technologies.
4.2.8.1. FUNCTIONS
The functions of Systems and Networking Department of KTDC include:
 Purchasing of Hotel Management Hardware and Software.
46
 To make hand with the Government Projects like e-commerce and IT projects.
 Controlling the entire System activities of KTDC.
 Supplying necessary hardware and software for various departments.
 Maintenance of the systems and accessories of the corporation
4.3. PRODUCT PROFILE
Since its incorporation in 1966, KTDC has been playing a key role in the
development and expansion of Kerala’s tourism infrastructure in accordance with
the government policies. Functioning as a commercial arm of the Ministry of
Tourism, KTDC has been acting as a catalyst in the promotion of tourism by
opening up new destinations and creating tourist infrastructure in the remote regions
where the private sector has been shy of investing.
KTDC has played a pioneering and catalytic role in the growth of tourism in
the state of Kerala. Unique in its concept, the Corporation has more than met
demands of a catalyst in tourism development while achieving and maintaining
profitability. The corporation’s major contributions have been in the field of
infrastructure development and tourism promotional efforts. Broadly we can say
that KTDC can take the credit for conceptualising the Kerala Tourism Products, as
it stands today and for relentlessly breaking new ground. Its endeavour to open
exotic new destinations which is hitherto unknown on the international travel circuit
and to charter unknown avenues of tourism activity like adventure tourism before
introducing them in an acceptable form both to the national and international levels.
The autonomous body under the Kerala Tourism Department, KTDC

promotes tourism in the state and provides necessary services to the tourists coming
to Kerala. KTDC undertakes the establishment of Tourist Information Centres
staffed with specially trained employees at the different parts of the state and
actively participating in building hotels and wayside amenities required for the
development of tourism in the state. The development of tourist related products,
development of wayside facilities, and the conservation of nature, history, heritage,
and culture are some of the services of the corporation.
47
KTDC provides a wide range of services for the tourists which include:
 Hotels and Motels
 Transportation Facilities
 Vehicles on Rent
 Wayside Amenities
 Restaurants and Beer Parlours
 Conducted Tours/ Holyday Packages
 Tour Packages
 Central Reservation Cell
 Entertainment Activities
 Handlooms and Handicrafts
 Consultation Services etc.
4.3.1. HOTELS AND MOTELS
The first and foremost operation of KTDC is building and maintaining hotels
and motels to provide accommodation facilities to tourists. In order to give a feel of
the heritage of hospitality and a spectacular view of natural splendour, KTDC -
largest hotel chain in Kerala offers a subtle blend of the traditional and luxurious
hotels and resorts to the travellers coming to Kerala. Almost all these exclusive
properties are set in exotic and enchanting locales across the state. The hotels of
KTDC include the range most luxurious hotels and budget hotels as well as Yatri
Nivases and motels to make tourists’ stay an exciting experience. The following are
some of the major hotels of KTDC
Mascot Hotel, Trivandrum: Mascot Hotel, located in the heart of Trivandrum

city, the capital of Kerala, is the oldest Star Hotel of KTDC, built during World
War 1 to house the officers of the Royal British Army. It now stands as a historical
edifice polished over time to cater to the tourists or business travellers with all the
comforts of a luxury hotel. Mascot turns on its lucky charm with the beauty of its
48
past and the comfort of its present, and what with its accessibility to the Capital
City, Mascot Hotel is indeed the idyllic spot to plan a grant retreat.
Highlights: are 66 rooms, Board Room, Wi-Fi facility, Coffee shop, Restaurant,
Banquet & Conference halls, Bar, Swimming pool, Ayurvedic centre, Health club,
Travel assistance, car hire, laundry, Doctor on call, Currency exchange etc.
Hotel Samudra, Kovalam: Samudra - means Ocean- is the perfect seaside gate
way, located in the middle of three palm-fringed coves in the world-renowned
Kovalam beach, which is an all-time favourite across the world. Its wide gamut of
complimentary amenities and perfect holiday ambience has won Hotel Samudra the
national award for the best property in its category in South India.
Highlights: the hotel includes 62 deluxe rooms, 2 suites with sea facing balconies,
Restaurant, Coffee shop, Beep Parlour, Ayurvedic centre, Swimming pool, Pool
side bar, In-house movies, Handicrafts emporium, travel assistance, car hire,
laundry, doctor on call, currency exchange, etc
Water Scapes, Kumarakom: Water Scapes is one of the famous Ethnic Backwater
resorts of Kerala situated at Kumarakom surrounded by the scenic Lake Vembanad.
Kumarakom is a holiday planner’s paradise, nestled in the mangrove woods
surrounded the lake is Waterscapes.
Highlights: The resort highlighted with 40 water front cottages, swimming pool,
restaurant, beer parlour, Ayurvedic centre, car hire, currency exchange, laundry,
Amphitheatre, etc.
Aranya Nivas, Thekkady: A Deep inside the dense, green wood, perched on the
banks of the Periyer Lake is Aranya Nivas or the Sylvan Abode. Aranya Nivas is a
wildlife resort with three star facilities. This quaint structure in the colonial style is
the only property in India set in the heart of a game reserve and is the perfect venue
for a relaxed corporate meet or business conference.
Highlights: It has 30 rooms, suites, swimming pool, restaurant, beer parlour,

handicrafts emporium, in-house movie, travel assistance, car hire, laundry, doctor
on call, currency exchange, etc.
49
Tea County, Munnar: Of course the Tea County is the experience the serenity of
the haloed hill stations with a viewpoint that is quite simply spectacular. The
erstwhile summer retreat of the British, the Tea County is now the perfect heaven
for honeymooners and tourists.
Highlights: The Tea County offers 43 rooms, health club, conference hall, Wi-Fi
facility, Board room, Ayurvedic herbal body toning parlour, Restaurant with
dancing floor, Beer parlour, indoor games, Para-gliding and Trekking arrangements,
car-hire, laundry, Doctor on call, currency exchange, day tours etc.
Bolgatty Palace, Kochi: The Bolgatty Palace, built by a Dutch trader in 1774 at
Cochin, was once the summer palace of the Dutch Governor. It stands proud in all
its resplendent glory and is now a heritage hotel maintained by KTDC. Incidentally,
the Bolgatty palace happens to be the oldest existing Dutch palaces outside the
Netherlands.
Highlights: 4 Palace suites with balcony, Recreation room with billiards, chess and
cards, Library, Lawn, Boat jetty, Angling, hammocks and hanging cots, Health
club, Mini bar, Boat Cruises, Internet Browsing etc.
Bolgatty Island Resort, Kochi: A modern luxury island resort located in the
Bolgatty Island in Kochi which is one a stone throw away distance from the heart of
the city ‘Marine Drive’. The hotel is set in the pristine green acres of the island
surrounded by Vembanad Lake.
Highlights: 24 deluxe rooms with balcony,6 lake front cottages, Restaurant, Beer
Parlour, Swimming Pool, Ayurvedic centre, Conference hall, Golf course with nine
holes, Large lawn for banquets, Health club, Boat Cruises, Internet Browsing etc.
Lake Palace, Thekkady: The Lake Palace offers unlimited peace and tranquillity,
interrupted only by the twitter of birds, a cry in the wild or the excitement of
spotting wildlife though the windows.
Highlights: 6 Palatial deluxe rooms, In-house movies, Restaurant, Car hire,

Laundry, Doctor on call, Currency exchange.
50
Apart from the luxurious star and deluxe hotels, KTDC also operates budget hotels,
Tamarind Easy hotels and motels for tourists almost all locales across the state. The
list of such budget hotels, Tamarind Easy hotels and motels are given in table 4.1,
4.2 and 4.3 respectively.
Table 4.1: KTDC Budget Hotels
Sl. No Name of the Hotel Location

01 Hotel Chaithram Thiruvananthapuram
02 Periyar House Thekkady
03 Pearl Spot Thannermukkam, Alapuzha
04 Hotel Nandanam Guruvayoor
05 Mangalaya Guruvayoor
06 Garden House Malampuzha
07 Pepper Grove Sultan Bathery
08 Malabar Mansion Kozhikode
Table 4.2: KTDC Tamarind Easy Hotel

01 Tamarind Easy Hotel Neyyardam
02 Tamarind Easy Hotel Asramam (Kollam)
03 Tamarind Easy Hotel Alapuzha
04 Tamarind Easy Hotel Changanacherry
05 Tamarind Easy Hotel Peerumedu
06 Tamarind Easy Hotel Kalady- Ernakulam
07 Tamarind Easy Hotel Thrissur
08 Tamarind Easy Hotel Guruvayoor
09 Tamarind Easy Hotel Mannarkad
10 Tamarind Easy Hotel Kondotty- Malappuram
11 Tamarind Easy Hotel Nilambr
12 Tamarind Easy Hotel Thirunelli – Wayanad
13 Tamarind Easy Hotel Kannur
14 Tamarind Easy Hotel Parasinikadavu, Mangattuparambu
51
Table 4.3: KTDC Motels
01 Motel Aaram Kottarakara – Kollam

02 Motel Aaram Punaloor – Kollam
03 Motel Aaram Palaruvi – Kollam
04 Motel Aaram Kayamkulam – Allapuzha
05 Motel Aaram Allapuzha
06 Motel Aaram Vaikom – Kottayam
07 Motel Aaram Kumarakom – Kottayam
08 Motel Aaram Athirapally – Thrissur
09 Motel Aaram Erumayoor – Palakkad
10 Motel Aaram Kuttipuram – Malappuram
11 Motel Aaram Vadakara – Kozhikode
12 Motel Aaram Mangattuparambu – Kannur
4.3.2. RESTAURANTS AND BEER PARLOURS
KTDC runs restaurants and restaurant cum beer parlours to give an

opportunity to taste the Kerala’s Cuisine. The cuisine of Kerala is as distinctive as
its cultural life. It is influenced by its long coastline, flavoured by the all-pervasive
coconut, enriched with exotic fruits, vegetables and seafood and is garnished to
perfection with the distinctive redolence of spices. The restaurants of KTDC also
provide Chinese, Arabian and North- Indian dishes. Most of the hotels of KTDC
are attached with restaurants and beer parlours. The table 4.4 shows the list of
major restaurants and the table 4.5 shows the restaurant cum beer parlours of Kerala
Tourism Development Corporation.
Table 4.4: KTDC Restaurants
Sl. No Name of Restaurant Location

01 KTDC Restaurant Museum – Thiruvananthapuram
02 KTDC Restaurant Velli – Thiruvananthapuram
03 Anantha Restaurant New Delhi
52
Table 4.5: KTDC Restaurants cum Beer Parlours
Sl.
Name Location District
No
01 R.B.P* Karamana Thiruvananthapuram
02 R.B.P Statue Thiruvananthapuram
03 R.B.P Peyad Thiruvananthapuram
04 R.B.P Kazhakuttam Thiruvananthapuram
05 R.B.P Varkala Thiruvananthapuram
06 R.B.P Attingal Thiruvananthapuram
07 R.B.P Pullikkada Kollam
08 R.B.P Haripad Alapuzha
09 R.B.P Karukachal Kottayam
10 R.B.P Muvattupuzha Ernakulam
11 R.B.P Kalady Ernakulam
12 R.B.P Kanjikode Palakkad
13 R.B.P Koghingapara Palakkad
14 R.B.P Changaramkulam Malappuram
15 R.B.P Koyilandi Kozhikode
16 R.B.P Ramanattukara Kozhikode
17 R.B.P Payyanoor Kannur
18 R.B.P Kangangad Kasarkode
Source: KTDC, official records.
*R.B.P – Restaurant cum Beer Parlour
4.3.3. CONDUCTED TOURS
The tourists reception centres of KTDC organises Conducted Tours to the

most of the major attractive destinations of the State. The conducted tours includes
half day and full day sightseeing trips to local places, half day and full day boat
cruises and trekking and mountaineering to the nearby places to the reception
centres..
53
4.3.4. TOUR PACKAGES
The most reliable tour operator and travel agent of Kerala Government, KTDC
offers comprehensive Tour Packages- exclusive escapades offers holiday packages
and conducted tours that are set in the premium properties of KTDC. As a pioneering
tourism development corporation, KTDC has also introduced innovative concepts
like Insured Holiday and Rail Holidays, which provide a complete experience of
Kerala.
4.3.5. KTDC’S TOURISM PACKAGES FOR NRKS
A novel tourism promotion effort by the KTDC Hotels and Resorts is

regarding non-resident Keralites (NRKs) who are spending their holidays in Kerala.
KTDC would soon launch holiday packages to suit the requirements of NRKs,
which would enable them to visit tourist destinations in Kerala. The packages have
been conceived by including accommodation, food and travel. The packages would
be available from June 1st to September 30th at the premium properties of KTDC
located in Kovalam, Kumarakom, Thekkady, Munnar and Kochi. The packages
would be of five to seven days’ duration and at reasonable rates. Ayurveda treatment
would also be part of the packages.
Besides the packages meant for premium properties, KTDC would also offer
NRKs with holiday packages to visit its Tamarind and Budget properties. These
packages would also give opportunities to visit nearby tourist destinations, pilgrim
centres and wildlife sanctuaries and also to go for boating wherever available.
4.3.6. ENTERTAINMENT ACTIVITIES
KTDC has a remarkable job in the field of tourism entertainment. The

corporation continued its endeavour to provide glimpse of Kerala culture and
heritage by organising special programmes during the festival seasons throughout
the State. Several cultural shows, Kathakali, Theyyam, Mohiniyatam,
Thiruvathirakali, other folk dances and music, martial arts like Kalaripayattu etc.
were organised during the festivals of Onam, Eid, Christmas and during national
and international conferences.
54
4.3.7. HANDLOOM AND HANDCRAFTS

Kerala Tourism Development Corporation offers a variety of handmade
domestic products namely Kerala Handlooms, Handicrafts and antiques of
guaranteed quality to the domestic as well as foreign tourists at the reasonable price.
The corporation takes special efforts to promote handloom and handicraft products
through its various units and establishes handicraft shops at its major hotels and
units.
4.3.8. CONSULTATION SERVICES

The corporation has several consultancy services through its various like
travel divisions and engineering department to share with state government and
other working for the improvement of the tourism environment. This service
envisages total consultancy, beginning from research to feasibility studies, to
execution of entire project, for building hotels, hotel management, transport works,
entertainments and publicity including advertising design and print jobs as well as
audio visual aids like displays, slide presentations and film.
4.3.9. KTDC’S CONTRIBUTION TO TOURISTS INFLOWS IN

THE STATE (Survey Result)
Based on the present study the investigator conducted a simple random sample
survey, with a structured questionnaire consists of only 5 items (tourist’s gender,
nationality, purpose of visit, mode of the tour, facilitator of the tour package), in
order to ascertain the Corporation’s contribution to tourists arrivals in the state by
means of tour packages. The survey was administered in three different phases on
2279 samples selected randomly from almost the major tourist destinations in the
state. The data thus collected are presented in the following tables (table 4.6 to 4.9).
Table 4.6: Gender wise Classification of Domestic and Foreign Tourists Arrivals
Gender Male Female Total
Type of Tourist No. % No. % No. %
Foreign Tourists 246 55.66 196 44.34 442 19.39

Domestic
1041 56.67 796 43.33 1837 80.61
Tourists
Total 1287 56.47% 992 43.53% 2279 100
55
Table 4.7: Tourists Classification according to Purpose of Visit

Valid Cumulative
Purpose Frequency Percent
% %
Leisure 1598 70.12 70.12 70.12
Pilgrimage 189 08.29 08.29 78.41
Business 169 07.42 07.42 85.82
Visiting friends& relatives 170 07.46 07.46 93.29
Official 128 05.62 05.62 98.91
Others 25 01.10 01.10 100.00
Total 2279 100 100 100
Source: Sample survey data
Table 4.8: Classification of Tourists Arrivals According to Mode of Tour

Domestic
Foreign Tourist Total
Mode Tourist
No. % No. % No. %
Package Tours 360 79.82 91 20.18 451 19.79%

Self Guided Tours 859 79.32 224 20.68 1083 47.52%
Others 618 82.95 127 17.05 745 32.69%
Total 1837 80.61 442 19.39 2279 100%

Table 4.9: KTDC’s Contribution to Tourist Arrivals through Tour Packages
Domestic Foreign Total

Facilitator
Tourist Tourist No. of Tourist Percentage
KTDC 38 11 49 10.86%
Others 322 80 402 89.14%
Total 360 91 451 100%
The sample size of the survey was represented by 1287 males and 992
females, and 1837 Indian tourists and 442 foreign tourists (table 4.10). The table
4.11 shows that more than 70% of the tourists were visited Kerala for the purpose
of leisure.
56
It can be intelligible from the above tables that tour packages play a vital role
in attracting both the tourists, i.e. domestic and foreign, to the state. The result shows
that tour packages contribute about 20% (451 out of 2279) to the total tourist arrivals
in the state, among them, the contribution of the Corporation is 11 (.86 is rounded as
1) out of 100 (49 out of 451 consisting of 38 domestic and 11 foreign tourists).
57
CHAPTER 5
ANALYSES
58
5.1. SWOT ANALYSIS

In order to understand the strengths, weakness and opportunities of the
Corporation, its structure, overall operations and marketing functions of the
Corporation, it seem paramount important to have SWOT Analysis. The following are
the major strengths, weaknesses, opportunities and threats of the organisation
identified through the analysis.
STRENGTHS:
 The largest hotels and resorts networks in the State.

 The official host to the God’s own country.

 The first Government agency to promote tourism in the State.

 45 years experience in tourism promotional efforts and tourism
infrastructural developments in the State.

 Very good reputation.

 Worldwide recognition.

 High quality Tourism Products.

 Strong brand positioning (Global super brand).

 Good range of quality visitor attractions offering a multitude of different
tourism experiences and environments.

 Good customer satisfaction ratings.

 It has over 70 units located across the length and width of the state.

 Large number of quality and attractive tour packages and conducted tours.

 Rich cultural heritage and tradition.

 High repeat visitation and customer retention.

 Good communication links giving access to a large catchment area.

 Tremendous government and political support.

 Public support and acceptance.

 Systematically organised, attractive, informative and user friendly website.

 Supported with a dedicated team of employees by which the goals of the
organisation can easily be achieved.
59

 Large number of tourism information centres and tourist reception centres.

 Well structured and well equipped high tech central reservation cell.

 Posses highly skilled and professional managers at top level.

 Large number of massage centres and houseboat accommodation
facilitations.

 Scientific and systematic organisation of the employees on a well designed
organisational structure
 Local community cooperative, hospitable, kind, tourist-friendly and
perceived with warmth and welcome.

 Professionally skilled marketing personnel with a strong front-line sales
team.

 Well established distribution network with worldwide coverage.

 Aggressive online and website marketing.

 KTDC contributes 11.9% to the inflow tourists in the state through tour
packages.
WEAKNESSES:
 Lack of adequate number of professionally and technically skilled
manpower.

 Lack of proper planning and implementation of projects and plans.

 Unaffordable pricing strategies for common man.

 Differential pricing strategies and price discrimination.

 Absence of clear and well defined policies.

 Inadequate infrastructure for matching the expectations.

 Lack of clarity in quality matters.

 Lack of vision and mission connectivity.

 Organisation does not follow a professional management system and hence
efficient decision-making is not easily possible.

 Proper channel of communication is not maintained within the organisation.

 Absence of public relations department and officer (PRO) in the organisation
structure.

60
 Marketing efforts undertaken by the Corporation seems to be insufficient at

International level.

 Improper maintenance of funds may impair the functioning of the
Corporation.

 The centralised attitude of the superiors inside the organisation.

 Employees feel that the work is mechanical and monotonous.

 Lack of trained personnel in information centres.

 Insufficiency of the scientific tourism development.

 Poor tourism promotional strategies and techniques.

 Limited number of tour packages to attract international tourists.

 Level of customer care and professionalism need improvement.

 Lack of serviced accommodation at highest quality level; i.e. five star hotel
accommodation.

 Insufficient funds for tourism promotion and infrastructure developments.
OPPORTUNITIES:
 Tourism is one of the fastest growing industries in the world with new
products in its arson, which is becoming more and more popular and entering
into new and existing markets by offering new opportunities.

 The awareness and attitude of people towards tourism is very much
conductive to the growth of the tourism industry in the State and
development of the Corporation.

 The State’s special features like high literacy rate, high life expectancy, high
position in human development index etc. offers sufficient opportunities for
the development of KTDC.

 Vast and untapped potential on heritage tourism, backwater tourism, beach
tourism, eco-friendly tourism, health tourism, farm tourism and pilgrimage
tourism etc.

 Brand image of God’s Own Country for achieving the targeted high spending
tourists.

 Tourism policy issued by the state provides opportunities for the
development of the corporation by inviting private investments which may
result in the rapid growth of the industry.

61
 The Corporation has well-qualified and experienced human resources which

can be effectively utilised for tapping the opportunities.

 The promotion of eco-tourism, farm tourism, hill station tourism, Ayurveda
tourism and backwater tourism.

 The existence of available areas for investments.

 The ability of the Corporation to appeal to the various market segments by
providing accommodation, packages, products and services in order to
compete effectively with other organisations.

 Growing interest in local distinctiveness, packages, accommodation and
attractions, which have not become over-developed.

 The competitiveness of the Corporation in terms of value based quality
delivered for the price paid by the visitor; and the marketing effectiveness in
attracting visitors to the products and services offered by the Corporation.

 Partnerships with private industry, government and stakeholders.

 Development of the new infrastructures and wayside amenities.

 Increasing opportunities for Ayurveda Packages.

 Opportunities for restaurants and beer parlours.

 Transportation facilities by improved air connectivity with the introduction
of low-cost airlines.

 Development of activity based tourism.

 Development of more five star hotels and other forms of accommodation.
THREATS:
 Competition from the private sector.

 Various social organisations do not support tourism development due to the
fear that it will disturb the environmental balance and cultural heritage of the
State.

 Existence of unethical traders and unlicensed agencies in and around tourism
centres.

 Undesirable attitude of public towards tourism.

 Exploitation of natural resources, environmental pollution, ecological
hazards and cultural degradation etc.

62
 Changes in the economic policies by the Government adversely affect the

tourism industry in the State.

 Customs, culture and tradition of tourists.

 Seasonal changes and demands.

 Unplanned growth.

 Environmental pollution caused by backwater tourism.

 Quality concerns in health tourism services especially Ayurveda packages.

 Product development pattern in the recent past are against the principles of
sustainable tourism development.

 Political instability, safety and security situation.

 Lack of resources compared with some competing private agencies.

 Failure to keep abreast of IT developments in marketing communications.

 Relying on government input and funding.

 Government involvement in the development of new plans and projects.
63
5.2. PESTEL ANALYSIS

Various Political, Economical, Social, Technological, Environmental, Legal
factors affecting the organization are as follows:
POLITICAL FACTORS
 The company is subjected to the budget, accounting of audit, controls as
applicable to government activities.
 Depending on the various governments, they need to change their policies.
ECONOMIC FACTORS
 Lack of sufficient fund prevents them to develop their infrastructure and

giving advertisement to various Medias.
 Some time they have to reduce the tariff rate at a level in which profit
level is minimum, to stay in competition.
SOCIAL FACTORS
 Customer focused and loyalty.

 Tariff must set keeping customers in mind.
 Providing a culturally environment will attract the customers.
TECHNOLOGICAL FACTORS
 Centralized online reservation helps the customer to book their rooms

from their home itself.
 Online reservation helps the company to get more attracted towards
customers.
 It helps the people to know about the rooms interior and other
infrastructure.
64
ENVIRONMENTAL FACTORS
 For creating new infrastructure, concern of the people must be taken into
account.
 Out senses play an important role in tourism.
LEGAL FACTORS
 Legal factors affected the quality of the work life of employees since being a
public concern lot of legal factors must be considered.
 Low attrition and turnover of employees, being a government organization the
attrition rate is very less due to the job security provided.
65
CHAPTER 6
FINDINGS, CONCLUSION AND
SUGGESTIONS

66
6.1. INTRODUCTION
The present chapter is an attempt to summarize the major findings of the
study. The findings are summarized on the basis of prime aspects covered under the
objectives of the study. On the basis of the findings of the study an attempt is also
made to make a few suggestions for improving both service delivery performance of
the public sector tourism organisations in Kerala and the performance of tourists as
responsible customers of tourism.
As the people element constitutes an important dimension in the management
of tourism services in its role both as performer and as customer, the present study,
focusing on the service people in public sector tourism agencies in Kerala and tourists
at their service delivery end, has been attempted. Realizing the research gap from the
survey of literature on empirical studies conducted in this field, the study has been
under taken with the main objectives of analysing the approach of the public sector
tourism agencies in developing the performances of service people and tourists and
also to assess the perceived performance of both these people groups in the tourism
delivery system in Kerala.
The present study is empirical in nature and has used both primary and
secondary data. The prime data source constitutes a sample survey of service people
and tourists by administering structured interview schedules.
The study has adopted a multi stage technique for selecting samples. Five of
the 14 districts in Kerala, have been selected by giving representation to all the three
zones namely southern, northern and central. Five premium or high end hotels and
five non premium hotels promoted by KTDC among their seventeen hotels located in
the popular tourism spots in these districts have been selected for the survey.
Similarly all the fourteen Tourist Information Offices (TIOs) of the DoT, GoK
located in these five districts also have been taken in the sample survey. In the survey,
375 tourists apportioned between domestic and foreign in the ratio of 2:1 and 80
service people with a share of hotel receptionists, restaurant waiters, and official
tourist information staff in the ratio of 3:3:2 have been included. Sample of tourists
and service people have been selected on the basis of convenient and random basis
respectively by giving representation to all the districts selected.

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6.2. THE MAJOR FINDINGS

The major findings of the study are summarized under the following heads.
(A) PROFILE OF SERVICE PEOPLE
(i) Domination of male and youth is evident in the service people segment of
tourism industry. 76.2 per cent of the sample group constitutes male and almost
same proportion (73.9%) represent less than 40 years of age. Moreover, two-third
of service people are married.
(ii) Basic education is prescribed by the public sector tourism agencies for their
service people. 70 per cent of service people surveyed in the study has gained
education in tourism/hospitality. However, service people holding higher level of
education in this discipline is relatively low (20%).
(iii) With regard to proficiency in language, 96.2 per cent of service people included
in the study can communicate in English and 33.8 per cent can communicate in
Hindi. But only a nominal number of service people (2.5%) have the ability to
communicate in foreign languages other than English.
(iv) Income status of the service people in public sector tourism agencies is
found not much promising. More than three-fourth of service people have
monthly income of less than Rs 15,000 only.
(v) When the experience of service people is analyzed, 57.5 per cent of
respondents are found having less than 10 years of experience in serving
tourists.
(vi) Majority of service people (51.2%) included in the study openly stated
their association with the trade unions. 46.15 per cent of 39 persons who
have no association with trade unions is constituted by permanent and
contract people.

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(B) PROFILE OF TOURISTS
(i) While analyzing demographic profile of the tourists, gender difference is visible
in the distribution of both domestic and foreign tourists who have visited Kerala
during the survey period. Category wise data shows that 72.8 per cent of foreign
and 69.6 per cent of domestic tourists in the sample are male tourists.
(ii) With respect of age wise distribution of tourists, middle aged group (35-59 years)
constitutes the prime share among both domestic and foreign tourists consisting
of 53 per cent and 46 per cent respectively. The representation of older people is
comparatively more (18.4%) among foreign tourists as compared to domestic
tourists (11.6%).
(iii) Representation from business and professional segments is comparatively more

among the tourists visiting Kerala. The study finds parity on this in the case of
both foreign (40%) and domestic tourists (41.6%).
(iv) Europe (58.4%) is the major source in generating foreign tourists to Kerala. The
tourists from Asia and North America are 15.2 per cent each and those from
Australia are 11.2 per cent. In respect of domestic tourists 25.2 per cent included
in the survey are from Kerala itself while 54 per cent are from other South Indian
States and the remaining 20.8 per cent are from rest of India.
(v) With regard to the income profile, 83.2 per cent of the foreign tourists have a
monthly income less than 20,000 USDs. In the case of domestic tourists 95.6 per
cent have a monthly income of less than Rs.50, 000.
(vi) Tourists included in the sample have relatively a higher level of education. The
proportions of different educational groups among foreign tourists are found to
be graduates (18.4%), postgraduates (30.4%), professionals (12%) and
technically qualified persons (17.6%). For domestic tourists these proportions are
66.4 per cent, 9.6 per cent, 7.2 per cent and 7.6 per cent respectively.

69
(vii) While analyzing the tour variables, it is observed from the survey that relatives
and friends constitute the major source of information about tourism products in
Kerala for both foreign (92.8%) and domestic tourists (90.4%).The private travel
publications are another major source of information for 92 per cent of foreign
tourists and 66.4 per cent of domestic tourists. The percentage of tourists
depending on public sector agencies and Kerala tourism websites for tourism
information is less as compared to the other sources.
(viii) The majority of foreign (80.8%) and domestic (83.2%) tourists included in the
sample are visiting Kerala as a part of their leisure or pleasure trips. The
remaining are mainly for special interest tourism which is found comparatively
more popular among foreign tourists (17.6%) as compared to the domestic
tourists (10.8%).
(x) In the study foreign tourists travelling with their family members or relatives
consist of 73.6 per cent of sample. Such proportion in respect of domestic tourists
is 65.2 per cent. Moreover, 91.2 per cent of foreign and 90.8 per cent of domestic
tourists are independent tourists.
(xi) It is understood from the study that Kerala has not yet become an exclusive
tourist centre for tourists especially among foreigners. 94.4 per cent of foreign
tourists paid their visits to Kerala along with their visit to other parts of India;
while 53.2 per cent of domestic tourists have visited other States of India along
with their tour in Kerala.
(C) DEVELOPING PERFORMANCE OF THE SERVICE PEOPLE

The practices of public sector tourism agencies of Kerala for the performance
development of their service people are analysed in the study from the perceptive of
service people under three dimensions namely
(a) Satisfaction of service people on select performance development variables
(b) Level of confidence of service people in their own skills and (c) the key motivator
of skill development.

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(a) SATISFACTION OF SERVICE PEOPLE ON SELECT PERFORMANCE

DEVELOPMENT VARIABLES
In order to assess the satisfaction of service people on the performance
development of their service people, the study has first identified ten variables namely
recruitment, functional skill development, social skill development, working hours,
compensation, recognition of good service, team work, grievance handling,
infrastructural support and the functioning of trade union. The selection of these
variables has been made under the frame work of detailed review of literature.
(i) On investigating the level of satisfaction of service people on the practices of

public sector tourism agencies of Kerala for the performance development of
their service people, it is found that service people are not having high
satisfaction with eight of the ten variables selected. Even though the Binomial
test administered for this purpose has found the difference between observed
distribution of sample and hypothysed distribution of the same statistically
significant at one percent level in respect of five variables namely compensation,
working hours, team work, grievance handling and the functioning of trade
union, the level of satisfaction of service people has found high only in the case
of working hours (78%) and team work (65%).
(ii) Gender wise analysis of variables selected, excluding the working hours and team
work (majority having high satisfaction) shows that in none of the cases the
majority of female have high satisfaction; while the majority of their counterpart
are having high satisfaction on variables namely recognition of services and
infrastructural support. In respect of both of these variables, when male has high
level of satisfaction with 50.8 per cent and 52.5 per cent respectively, the
proportion of female respondents having this opinion is only 42.1 per cent for
recognition of services and 31.6 per cent for infrastructural support. In respect of
grievance handling though the majority of both gender groups are having low to
moderate satisfaction the proportion of females (31.6%) having low level
satisfaction is very much greater than the proportion of their counterpart (3.3%).
Inferential analysis also confirms the statistical significance of group wise
difference in respect of the variables namely recognition of good service,
grievance handling and infrastructural support.

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(iii) Employment status wise data shows that the contract people are found more
satisfied with many of the variables compared to other service people groups.
Their level of satisfaction with three variables namely compensation, grievance
handling and functioning of trade union are not high. With regard to working
hours and compensation 78.4 per cent and 59.5 per cent respectively of
permanent people are highly satisfied. Variables namely working hours,
recognition of good service, team work, and infrastructural support the trainees
are holding positive view. Chi-Square analysis confirms the association between
employment status and satisfaction of service people towards seven variables
namely recruitment, functional skill development, social skill development,
compensation, recognition of good service, team work, and infrastructural
support.
(iv) Service category wise analysis indicates a cross sectional variation among the
service people groups in terms of their level of satisfaction as to the variables
selected. On considering their response towards eight measures (excluding
working hours and team work commended earlier), the study has obtained
positive reply (high satisfaction) from majority of people on functional skill
development and recognition of good service from reception group, on functional
skill and social skill development from restaurant group and on compensation
and infrastructural support from information group. Their level of satisfaction on
the remaining variables has been found low to moderate. Statistical significance
of such group wise variation is evident in respect of variables namely
recruitment, functional skill development, social skill development,
infrastructural support and functioning of trade union.
(b) CONFIDENCE OF SERVICE PEOPLE IN THEIR OWN SKILLS

An enquiry into the level of confidence in their own skills reveals that 76.2 per
cent of service people are having high level of confidence on their skills. An almost a
similar percentage of people belonging to both gender groups and various service
category groups under the study have expressed their opinion at this scale. But
employment status wise analysis reveals a disagreement among people groups. When
majority of contract and permanent people perceive their level of confidence in own

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skills as high, majority of trainees has an opposite view. Chi-Square test results
validate such difference of opinion among employment status groups.
(c) KEY MOTIVATOR IN SKILL DEVELOPMENT

In respect of functional skill development, organisation is the key motivator
for 53.7 per cent of service people. 57.4 per cent of male and almost 70 per cent of
permanent and contract people perceive so. A similar observation is made by
receptionists and restaurant waiters. But when most of trainee category (47.6%)
perceives the role of supervisor is the key factor in generating motivation for
functional skill development, two-third of information service people prefers self
motivation to any other factors in this regard. The inferential analysis with the Chi-
Square test reveals that the respondents’ opinion on the key motivator in their
functional skill development is associated with service categories and their
employment status.
Regarding social skill development, 50 per cent of service people perceive they
are self motivated. This trend is found among both gender groups with almost same
proportion and also among people having the employment status of trainees (71.4%).
85 per cent of information staff also shares a similar view. But more than 50 per cent
of permanent and contract service people consider the organisation as the key
motivator in this regard. 50 per cent of receptionists and 46.7 per cent of restaurant
waiters also perceive this view. In this case also the Chi-Square test results validate
such difference of opinion across employment status and service category groups.
(D) MEASURES FOR DEVELOPING PERFORMANCE OF

TOURISTS
The perceptions of service people and tourist groups on the practice of
eighteen selected measures by the State level public sector tourism agencies in
developing the performance of tourists visiting Kerala have been collected on a five
point scale. These measures focusing on three different dimensions namely ‘usage of
tourism resources’, ‘tourist safety’ and ‘conserving environment’ have been
inferentially analysed with Binomial test and Mann-Whitney U Test.

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(a) MEASURES TOWARDS USAGE OF TOURISM RESOURCES

The perceptions of people groups on the select five measures towards usage of
tourism resources indicate that when more than half of the service people perceive the
public sector agencies adopt the practicing of two measures namely ‘educating
tourists on tourism resources at TIOs’ (68.7%) and providing ‘signboards at
destinations’ (58.7%) at a high or very high level; in respect of other three cases
namely ‘motivate constructive dealings among tourists’ (55%), ‘motivation for early
tour arrangements’ (42.5%) and ‘system of collecting feedback’ (48.8%), relatively
larger proportion of service people view the extent of practice as ‘very low’ and
‘low’. But majority of both categories of tourists perceive all the selected measures as
low to moderate. When the study analyses the overall perception score of the people
groups with regard to these measures, each of the people group perceives the extent of
public sector practices at a low to moderate.
Binomial test confirms the statistical validity of these descriptive results.
Inferential results produced by Mann-Whitney U test have proved the cross sectional
variations in perceptions in terms of difference in mean scores. On clubbing the
inferential results with the descriptive analysis of perception of people groups, it is
rational to conclude that foreign tourists perceive the level of public sector tourism
agencies in practicing measures towards the usage of tourism resources by the tourist
groups, at a rate lower than that of the other people groups.
(b) MEASURES TOWARDS TOURIST SAFETY

With regard to measures towards tourist safety, majority of the service
people perceive all the measures except ‘safety guidelines at tour sites by
executives’ at low to moderate. On account of this, their overall perception
falls in the scale of low to moderate (2.75). But on considering the tourists’
opinions, both categories of tourists perceive all the measures at low to
moderate.
The Binomial test results justify these descriptive results. Pair wise
comparison by Mann-Whitney U test reveals that there is significant difference in
perceptions between foreign and domestic tourists and between the foreign tourists
and service people with regard to measures towards tourist safety. On examining all

74
these results it can be concluded that, the foreign tourists, rate the tourists’ safety
measures of the tourism agencies at low scale in relation to the perception rating of
other people groups.
(c) MEASURES TOWARDS CONSERVING ENVIRONMENT

When the study analyses measures towards conserving environment, atleast 50
per cent of sample service people perceive that the public sector tourism agencies
have only moderate or below level of practice of all the six measures selected.
Majority of both foreign and domestic tourists have also expressed this opinion.
Therefore, irrespective of groups, the overall perception of people towards the
measures for conserving environment is found to be at low to moderate level.
The intra group analysis of perceptions of different people groups corroborate that
none of people group chosen for the study perceive the extent of public sector
practice in developing performance of tourists with the selected measures for
conserving environment as high. Further the inter group comparison of the perception
of people groups in this regard with Mann-Whitney U test reveals that there is
significant difference in mean perceptions between foreign and domestic tourists and
between foreign tourists and service people. Thus, descriptive analysis supported by
empirical results lead to a logical conclusion that the foreign tourists, like other two
cases, perceive the practice of the public sector tourism agencies in developing
performance of tourists with measures conserving environment at a level
comparatively lower than that positioned by other people groups in the study.
(E) PERFORMANCE OF SERVICE PEOPLE IN TOURISM

SERVICES DELIVERY
Performance of three groups of service people has been evaluated separately from
their own perspective and also from the perspective of tourists. For this two set of
factors or attributes have been identified-vocational attributes and behavioural
attributes-through a multivariate analysis frame work i.e. exploratory factor analysis.
(a) VOCATIONAL ATTRIBUTES
Basic job skill, communication in language known to tourists, positive body
gestures while interacting and personal hygiene and grooming constitute vocational

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attributes for the study. Analysis reveals only a low to moderate level of satisfaction
by both foreign and domestic tourists with the ability of all three groups of service
people to communicate in languages known to tourists. But their response has been
found highly positive with respect to personal hygiene of service people groups. Self
perception of service people towards these variables have also been found exactly
same as that of tourists. When basic job skill of people working in TIOs has been
perceived as not high by both tourist groups, domestic tourists’ response as to positive
body gestures of people in restaurants and TIOs while interacting have also been
found at the same scale. When self analysis of their basic job skill by majority of
people serving at reception and restaurant is found at low to moderate level, their
rating in respect of positive body gestures is seen at high scale. From the descriptive
statistics it is evident that the degree of tourists’ satisfaction is the highest in respect
of reception services and the least in respect of tourist information services.
Statistical evidence for the difference in satisfaction level of tourist groups
towards various service delivery centres is provided by Kruskal-Wallis H test.
Further, while the Mann-Whitney U test confirms the difference of opinions between
service people and domestic tourists in all the cases; the same result in comparison of
opinions between foreign tourists and service people is obtained in respect of
reception and tourist information services. Similarly, it is also found from the overall
analysis that when people working at restaurants and TIOs overrate their services at a
scale higher than that done by the tourists, the reverse result is visible in respect of
hotel reception service.
(b) BEHAVIOURAL ATTRIBUTES

Factor named behavioural attributes comprise of six attributes namely
politeness in dealings, sincerity in solving tourists’ problems, patience in
understanding tourist needs, willingness to help beyond service limit, un biased
service, and sense of humour in dealings. Opinions of tourists have been found low to
moderate in respect of three attributes of service people, namely ‘willingness to help
beyond service limit’, ‘unbiased service’, and ‘sense of humour in dealings’. Atleast
50 per cent of service people in each category of service also have this feeling.
Moreover, domestic tourists have appraised all the six variables of behaviour
component of tourism information service people as low to moderate. In respect of all

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other cases under consideration the perception of people groups has been found highly
positive. The difference of opinions of tourist groups as to behavioural attributes in
services delivered across the categories is statistically validated by inferential test
results. The results also reveal that the service people, irrespective of category they
belong to, rate their services at a level higher than those perceived by tourist groups.
The gap in perceptions among all pairs of people groups under consideration is
substantiated statistically in respect of tourism information service. The test results
also provide empirical evidence for the divergent opinions between domestic tourists
and each of the other two service people groups. Similarly, it is also statistically
validated that except in the case of restaurant service as rated by domestic tourists, in
all other cases both tourist groups have only a lower level of satisfaction on
behavioural attributes of service people as compared to vocational attributes.
(F) PERFORMANCE OF TOURISTS IN TOURISM

Study has analysed the performance of tourists in tourism with three
dimensional variables namely: activities towards tour preparation, activities towards
self benefit/safety during their trip and activities towards environmental conservation
during their tour. The opinions on eighteen tourist actions under these three variables
have been collected and analysed with descriptive and inferential statistics.
(a) TOUR PREPARATION ACTIVITIES

The performance of tourists in tour preparation in the study covers three
activities namely,’ seek information on Kerala through print media’, ‘seek
information on Kerala through electronic media’ and ‘advance booking of services’.
An earnest effort has been taken to analyse the perceptions of different people groups
individually and on a cross sectional basis.
Domestic tourists’ involvement in tour preparation activities is perceived as low
to moderate by the majority of service people groups. Self perception of tourist
group is also found the same in this regard. When measures taken by the foreign
tourists in connection with their tour preparations is perceived high by the service
people, except in respect of the ‘seek information on Kerala through print media’, the
analysis of perception of tourist group found it low to moderate in respect of activities
‘seek information on Kerala through print media’ and, ‘seek information on Kerala

77
through electronic media’. Binomial test results validate the performance in tour
preparation activities high for both domestic and foreign tourists from the perception
of service people and the performance of domestic tourists only low to moderate from
their own perception. Again, Mann-Whitney-U test gives proof for the statistically
significant difference between foreign and domestic tourists in their tour
preparation activities from the perspective of service people.
(b) SELF BENEFIT/SAFETY ACTIVITIES DURING TOUR

The study has identified nine activities taken by tourists for ensuring own
safety/benefit namely ‘adhere to the directions of tour site officials, ‘consider the
signboards at destinations’, ‘avoid disturbing other tourists’, ‘precautions at aqua tour
centers’, ‘avail the services of approved guides’, ‘constructive dealings with other
tourists’, ‘obey the police officials at tour spots’, ‘depend TIOs during trip’ and ‘give
feedback on services’.
The analysis of tourists’ performance in activities towards this measure has
found uniformity in respect of all activities except give feedback on services’. Among
these, the positive response from the part of both tourists is revealed in respect of four
activities namely ‘adhere the directions of tour site officials, ‘consider the signboards
at destinations’, ‘avoid disturbing other tourists’ and ‘obey the police officials at tour
spots’. In respect of ‘give feedback on services’ also the perception of foreign tourists
is found as high.
When service people have perceived the performance of foreign tourists as
high for all activities selected except ‘precautions at aqua tour centers’ and
‘constructive dealings with other tourists’, their perception towards the performance
of domestic tourists is at that scale only in respect of three activities namely ‘depend
TIOs during trip’, ‘constructive dealings with other tourists’ and ‘obey the police
officials at tour spots’. The overall perception of each people group towards this
aspect is measured as above moderate and the same has been validated by binomial
test results. However, pair wise analysis of test results has revealed statistically
significant difference in performance between the two tourist groups both from their
own perspectives and from the perspective of service people.

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(c) ENVIRONMENTAL CONSERVATION ACTIVITIES

Tourists’ responsible performance in conserving environment is assessed in
terms of six activities namely ‘conservation of natural resources’, ‘avoid smoking and
consuming alcohol at public places’, ‘dropping litter in bins’, ‘cooperation to enforce
plastic ban’, ‘self reporting infectious diseases’, and ‘respect local culture and
natives’. Descriptive results of analysis indicate evenness in perceptions of both the
tourist groups towards their performance with positive rating (high) on four of the six
activities considered. With respect to ‘self reporting infectious diseases’ and ‘avoid
smoking and consuming alcohol at public places’, the analysis traces negative opinion
(low to moderate) by all the three people groups. Service people’s perception towards
initiatives of the domestic tourists in conserving environment is found low to
moderate in respect of all the variables identified, when their perception towards
foreign tourists is matching with the self rating of that group. Low to moderate level
of performance of domestic tourists and high level performance of foreign tourists as
perceived by service people are reinforced by the binomial test results. Such
difference in performance of two tourist groups is again revalidated by Mann-
Whitney-U test results.
6.3. SUGGESTIONS AND CONCLUSION

Based on the findings on the analysis of survey data and on the basis of
observations the study proposes some specific suggestions, which may help the
authorities and policymakers of Kerala tourism to make the tourism market in the
State more growth oriented.
(A) SUGGESTIONS TO IMPROVE THE PERFORMANCE OF

SERVICE PEOPLE
Following suggestions are made to improve the performance of service people
in public sector tourism agencies in Kerala.
(a)REDESIGN RECRUITMENT POLICIES

The study reveals that majority of people serving tourists in public sector
tourism agencies are not having high satisfaction with the present system of recruiting
people to the organisation. So it is the need of the time to redesign the recruitment

79
policies. Minimum graduation along with successful completion of courses or

programmes imparting skills in the relevant area can be suggested for the recruitment
of restaurant people (waiters) and hotel receptionists. Graduation in tourism or
equivalent degree can be stipulated as the minimum qualification for the selection for
the post of tourist information assistant. Recruitment policy pursued for hiring staff
for premium category hotels can be segregated from budget hotels, as clients of such
hotels may expect relatively superior level of services. Therefore, more skilled and
experienced people may be selected and deployed in premium hotels. As proficiency
in English and other foreign and national languages is an integral part of service
skills, due weightage may be given to this aspect while recruiting service people.
(b)IMPROVE THE TRAINING FACILITIES

As the level of both vocational and behavioural attributes of the service people
working at different functional centres is not much high, some care has to be taken by
the tourism agencies for improved service delivery at the giving end. The DoT and
KTDC can impart orientation training (off the job) to all the new recruits before their
placement in the job. The periodical training to the people involved in tourism
services can make delivery of their services better. The KTDC can explore the
possibility of establishing a separate Institute of Hospitality and Tourism
Management (IHTM) as done by ITDC to carve out the best human capital fit for the
tourism sector of Kerala.
(c)REVISE COMPENSATION PACKAGES

Service people particularly trainees and contract people in public sector
tourism agencies have only low to moderate level of satisfaction with the monetary
compensation from their organisations. Moreover, on comparing their compensation
with that of similar jobs, it seems to be unattractive. So for improved work morale,
the revision of monetary packages of service people under different employment
status may be considered in a time bound manner by analysing the opinions of each
group of service people.
Apart from the monetary packages, KTDC and tourism department may look
at the possibility of providing travel within India as an incentive, once in a stipulated
period, to all of their employees irrespective of employment status and service

80
category during the off tourism season. Similarly, to motivate non managerial
employees of KTDC, the subsidized canteen at their organisation may be facilitated
with coupons for a stipulated sum on monthly basis. KTDC can also appeal the
tourists to deposit the tips, if any they wish to give, in the ‘tip collection box ‘to be
fixed in each hotel property. The amount so pooled annually from all hotel properties
may be used for taking health insurance policy on all the operational service people of
KTDC hotels with a tie up with any general insurance company.
(d)RECOGNIZE GOOD SERVICES

As a recognition for the good service of people delivering direct service in
public sector tourism agencies in Kerala, the State Tourism Department can introduce
awards like ‘Best Public Servant Award in Tourism’.
(e)HOLD PERIODICAL MEETINGS TO REDRESS GRIEVANCES

Public sector tourism agencies may be pursued to hold unit level periodical
meetings of category wise operational staff to make a review of the work environment
and to redress the employee grievances cropping up.
(f)ENHANCE QUALITY OF THE INFRASTRUCTURE AT WORK

STATIONS
The Department of Tourism and KTDC should allocate more funds to enhance
the quality of infrastructural supports including information tools to improve the
performance of service people in delivering services.
(B) TO MAKE THE TOURISTS MORE RESPONSIBLE

PERFORMER
The following suggestions are made to improve the performance of tourists
to make them more responsible towards the tourism industry in Kerala.
(a) SET UP TOURIST FACILITATION CENTRES

With the aim of motivating and supporting tourists for the responsible use of
tourism resources in the State, the tourist information offices under the tourism
department may be elevated to ‘Kerala Tourism Facilitation Centres’ (KTFC) having

81
superior infrastructure and manpower. Such centres can be opened at all major
locations within and outside the State to educate, guide and also to provide necessary
support facilities to tourists on all days round the clock.
(b) OFFER SERVICES OF ACCREDITED TOURIST GUIDES

The department of tourism has also to take steps to create a pool of
government accredited tourist guides for which, every year, the department can train
and accredit a fixed number of selected youth having degree or diplomas in tourism
with the support of tourism education institutes like KITTS. These accredited tourist
guides have to be imparted training for a stipulated period during every tourism off
season with stipend. Thereafter, a directory of tourist guide can be prepared, and
published in print tourism promotional materials as well as on the internet. The
services of these approved guides may be made available to tourists through the
KTFCs on a payment basis.
(c) IMPROVE THE FEEDBACK SYSTEM

The department of tourism has to improve the system of collecting feedback
from tourists visiting Kerala. All the public sector agencies involved in tourism
delivery have to motivate tourists to give their feed back during or after their visit
either online or offline.
(d)BUILD UP THE TOURISTS’ SECURITY

To strengthen the security, guidance and support for tourists, the government
can consider forming a separate force called ‘Tourism Protection Force’ (TPF) with
the financial support of Central government. A stipulated number of youth having
degree or diploma in tourism and with necessary physical fitness may be recruited and
trained as the members of this force. The service of TPF is to be made available in
major tourists centres of the State. The proposed TPF can be an effective substitute to
the present tourism police system. The DoT, GoK in collaboration with other public
sector agencies, local bodies and private agencies can take initiative to provide life
saving measures to tourists at aqua tourist spots.

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(e)Distribute Brochure in Multiple Languages

The department of tourism may prepare attractive educational print brochures
in English, Malayalam and Hindi and also an e-brochure in English which can explain
the details of tourism resources available in Kerala and also embrace the
performances indispensable from the part of tourists as responsible customers of
Kerala tourism industry. Such print materials may be provided to tourists visiting
TIOs or other public sector tourism agencies in Kerala.
(f) Provide Road and Site Indications

The department of tourism, GoK in collaboration with other public sector
agencies, and local bodies can take initiative to fix proper signboards at all identified
tourist destinations in Kerala and also to provide the road indications with distance
towards tourism spots.
(g)Give Direction and Support for Environmental Conservation

The department of tourism, GoK can fix adequate number of litterbins at all
identified tourism spots in Kerala and also to fix boards and hoardings which convey
the messages for environmental conservations alongside the roads leading to the
tourist destinations in the forest and other ecologically sensitive tourism areas.
Similarly the department may exhibit visual displays/ films at all important cities for
making the tourists more conscious of environmental protection.
(h)Offer Incentives for Advance Booking

Public sector tourism agencies can motivate tourists to book various facilities
and services marketed by them in advance by offering price incentives for the same.

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6.4. CONCLUSION
In the globalised scenario, since tourism is widely recognised as one of the
most vibrant, growing and economically useful activities in the world,
competitions among the global players of tourism related service industries are
unavoidable. Competition is increasing day by day since more and more countries
seek to attract tourists and more companies and organisations become involved in
the highly skilled business of transporting, accommodating, sightseeing of
attractions and catering for tourists. In order to get a big market share different
travel companies and tourism organisations were adopted various innovative as
well as competitive tourism marketing methods. The concept of tour package is
one among such innovative marketing methods adopted by several organisations
across the globe. At present it has become a major contributing factor to the
growth of tourism in India as well as worldwide. The increasing growth of tourist
inflows in Kerala is also greatly influenced by the tour packages conducted by
Kerala Tourism Development Corporation and other different tourism
organisations in the state. It can be intelligible from the survey results of this study
that tourism organisations in Kerala contribute 19.79 percent of the total inflow of
tourist in the State by way of tour packages. Among them 11 out of 100 is
contributed by KTDC alone.
Kerala, the ‘God’s Own Country’, is exuberantly res ourceful with

beaches, backwaters, rivers, hill stations, vegetations, wildlife, holy places,
historical monuments, architecture, arts and culture, folk-lore, festivals,
Kalaripayattu (the martial art), Kettuvalums (houseboats) cruise, Ayurveda, yoga
and meditations, Kerala cuisine etc., These abounding resources made the state as
one of the most attractive destinations in Asia and capable to develop and market
varied attractive tour packages in order to approximate more and more tourists to
the state. Kerala Tourism Development Corporation (KTDC), the government
agency to promote tourism in the State, has been engaged in conducting many
attractive tour packages, readymade as well as tailor made, along with other
tourism promotional activities such as construction of hotels, motels, resorts and
wayside amenities; developing and marketing conducted tours; maintaining hi-
tech central reservation cell; and conducting fairs, festivals exhibitions etc to
promote tourism in the so called state ‘God’s Own Country’.

84
Even though KTDC does not have a public relations department or public
relation officer it has a very systematic organisational structure to undertake
tourism promotional efforts and marketing functions in the State. The organisation
structure analysis shows that marketing department is capable enough to formulate
and implement the marketing strategies for varied tour packages in accordance
with vision, mission and strategic objectives of the organisation. The marketing
mix and the marketing strategies analysis reveal that KTDC has been adopted
‘quality growth model’ as the overall marketing strategy for tour packages. The
other strategies have been adopted by the Corporation include differentiation and
diversification (undifferentiated) strategies, high price and differential pricing
strategies, bypassing (direct marketing) and co-operation (use of intermediaries)
strategies, and promotional strategies at regional, national and international levels.
The Corporation has been adopted undifferentiated (diversification)

strategy for its varied packages since it is developing and marketing such packages
by considering the common interests, taste and expectations of every tourist/
market segment. Similarly, the differentiated strategy is adopted to allure a
particular segment of tourist especially foreigners who have specially interested in
beach and backwater tours and Ayurveda packages. Although it has often adopted
differential or demand oriented pricing strategy, KTDC generally practices high
price strategy since it is more concerned in maintaining the quality of tour
packages and tourism products. This strategy often staves off the common people
from the Corporation and thus attracts only upper class tourists. It is evident from
the satisfaction survey result that 77.8% of the tourists approaching KTDC for its
packages are from higher income groups.
KTDC has a strong base for undertaking direct marketing efforts and a
world-wide distribution network of intermediaries for tour packages and other
products. Hence, it has given equal prominence to both bypassing (direct
marketing) and cooperation strategies for distribution. The promotional tools and
techniques include conducting road shows, fairs, exhibitions and grand festivals at
regional and national levels; advertisements in print and electronic medias, own
websites and other internet sources; participation in national and international fairs
and exhibitions; traditional promotional tools such as brochures, booklets,

85
pamphlets etc; data base marketing techniques; and CD ROMs, production of

tourism films, video clips, use of mobile technology through SMSs, MMSs etc.
Although KTDC has undertaken several positively aggressive promotional efforts
and strategies at national and international levels, the survey result shows that
Word of mouth’ is the most effective technique because 35.9% of the tourist came
to know about KTDC’s tour packages through friends and relatives. The
marketing agents and intermediaries (29.3%) and KTDC’s own website (18%)
also play a crucial role in disseminating information about KTDC’s tour packages
among the tourists.
The result of the tourist satisfaction survey shows that 82.34 % were
satisfied, 3.59% were dissatisfied and 14.07% have no opinion with the quality of
packages offered by the Corporation. Although the Mann-Whitney test of
statistical analysis shows a significant difference between the satisfaction levels of
foreign and domestic tourists, the mean scores of the attributes and dimensions
show that both the tourists were almost satisfied with the packages. They were
neither satisfied nor dissatisfied with only one dimension, i.e. shopping
arrangements. The factor analysis with principal component method and multiple
regression analysis extracted four major factors which explain about 94% of total
variation of tourists overall satisfaction and thus determine the quality of tour
packages. Such factors include Facilities and comfort (factor 1), Communication
(factor 2), Transportation and price (factor 3), and Attractions (factor 4).
However, it can be concluded from the overall analyses and evaluations

that KTDC has adopted different well structured marketing strategies and
techniques for tour packages in Kerala along with the ‘Quality Growth Model’ as
the overall strategy. The Corporation has a scientific organisational structure with
a red-blooded marketing department in order to carry out marketing functions and
promotional efforts. But the organisation structure does not consists a public
relations department or public relations officer which is very import for a
commercial organisation like KTDC for the effective marketing of tour packages
and other tourism services or products. It is evident from the results of the
satisfaction survey that the tour packages offered by the organisation possess
much better quality; hence almost all the tourists were satisfied with the quality of
packages. Similarly it can be interpreted from the differences in satisfaction levels

86
of domestic and foreign tourists that KTDC has offered low quality packages for
Indian tourists as compare to the packages offered to foreign tourists. The result of
statistical analyses also shows four major factors that are very import in
determining the overall satisfaction of tourist and the quality of tour packages.
Therefore, this study suggested that the Corporation should be given special focus
on these factors to improve the quality of its varied tour packages and should give
special care for improving the shopping arrangements dimension (variable), since
majority of the tourists were dissatisfied or have no opinion on this dimension. It
is also suggested that KTDC should follow societal marketing principles in
formulating and implementing different marketing policies and strategies,
especially pricing and promotional strategies, for tour packages.

87
7. BIBLIOGRAPHY
BOOK REFERENCE
 Uma Sekaran (2006), Research Methods for Business: A Skill Building

Approach, New Delhi: John Wiley & Sons, Inc.
 Aswathappa K (2005), Human resource and Personnel Management, New
Delhi: Tata McGraw Hill.
 Gupta C B (2006), Human Resource Management, New Delhi: Sultan Chand
& sons.
 Jha S M (2004), Services Marketing, Mumbai: Himalaya Publishing House.
WEBSITE
 www.ktdc. Com
 www.keralatourism.com

88

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ORGANISATION STUDY AT KERALA STATE TOURISM CORPORATION

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

An organization is a social arrangement which pursues collective goals, which

Organizational study refers to the study of organization as a whole and setting

Organization study is useful in getting the quality and performance of the

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

1.2. OBJECTIVES OF THE STUDY

 To understand the actual working condition in the organization.

 To evaluate the overall performance of the organization in promoting the

 To know about organizational structure.

 To understand the functions of different departments in the organization.

 To get familiarization with the policies and procedures of the organization.

 To analyze the strengths, weaknesses, opportunities and threats of the

1.3.1. PRIMARY DATA

1.3.2. SECONDARY DATA

Secondary data was collected from the following sources:-

 Data collected from catalogues, broachers, internet etc.

 Data collected from company website

 Data collected from annual report

 Data collected from books, journals, magazines.

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

1.4. SCOPE OF THE STUDY

1.5. LIMITATION OF THE STUDY

 Since the managers of different departments were engaged in various projects,

Chapter 1- Introduction, Objectives of the study, Methodology, Scope of the

Chapter 3 - Company Profile, History, Strategic Intent

Chapter 4 - Organisational Structure and Department structures,

Chapter 6 - Finding, conclusion, and Suggestions

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

2.1. TOURISM INDUSTRY

Tourism has become a popular global leisure activity. Tourism is travelling

The World Tourism Organization defines tourists as people who "travel to

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

2.2. MODERN TOURISM

Modern tourism is an instrument of human education. The role of mass tourism is

2.3. GLOBAL TOURISM

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

1 France 86.9 million 82.7 million 5.1 2.1

2 Spain 81.8 million 75.3 million 8.6 10.5

4 China 60.7 million 59.3 million 2.5 4.2

5 Italy 58.3 million 52.4 million 11.2 3.2

6 Mexico 39.3 million 35.1 million 12.0 9.3

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

8 Turkey 37.6 million 30.3 million 24.1 23.3

9 Germany 37.5 million 35.6 million 5.2 1.8

10 Thailand 35.4 million 32.6 million 8.6 8.9

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

2.4. INDIAN TOURISM INDUSTRY

Travel & tourism industry's contribution to Indian industry is immense. Tourism is

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

According to an estimate total direct employment in the tourism sector is around 20

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

2.5. KERALA TOURISM INDUSTRY

2.5.1. MAJOR ATTRACTIONS

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

Most of Kerala, whose native habitat consists of wet evergreen rainforests at

Silent Valley national park in Palakkad is home to the largest population of

Medical tourism, promoted by traditional systems of medicine like

INSTITUTE OF MANAGEMENT KERALA, KARIAVATTOM

Kerala’s culture is mainly Dravidian in origin, deriving from a greater Tamil