AJAI.K.G SM Zephdyut Module - V PDF

Tourism
 Tourism comprises the activities of persons travelling

to and staying in places outside their usual
environment for not more than one consecutive year
for leisure, business and other purposes.
(WTO, 1992 – subsequently ratified by the UN

Statistical Commission)
Tourism…
The UN definition pulls together the three main
elements of travel and tourism:
1. Visitor activity is concerned only with aspects of life

outside normal routines of work and social
commitments, and outside the location of those
routines.
2. The activity necessitates travel and, in nearly every

case, some form of transport to the destination.
Tourism…
 Specific destinations are the focus for a range of
activities and a range of facilities required to support
those activities.
 Such activities and facilities have a combination of

economic, social and physical environmental impacts
that are the basis for tourism policy and visitor
management programmes.
 Five important points are stressed in relation to the

definition:
Tourism…
 There is nothing in it that restricts the total market
to overnight stays; it includes same day visits.
 There is nothing in it that restricts the total market

to travel for leisure or pleasure.
 It includes travel for business, social, religious,

educational, sports and most other purposes,
 provided that the destination of travel is outside the

usual routines and places of residence and work.
Tourism…
 All tourism includes an element of travel but all travel
is not tourism.
 The definition excludes all routine commuter travel

and purely local travel, such as to neighborhood
shops, schools or hospitals.
 Travel and tourism absorbs large elements of

individual leisure time and encompasses many
recreational activities,
Tourism…
 but it is not synonymous with either because the bulk
of all leisure and recreation takes place in or around
the home.
 All travel and tourism trips are temporary

movements;
 the bulk of the total market comprises trips of no

more than a few hours‟ or nights‟ duration.
Five main Sectors of the Travel and
Tourism Industry
Sectors of the Travel and
Tourism Industry
 Each of these comprises several subsectors, all of
which are increasingly concerned with marketing
activities, both in the design of their products and the
management of demand.
 It can be seen that some of the subsectors are fully

commercial and operated for profit,
 some are operated commercially for purposes other

than profit and
 some are in the public sector and operated mainly on
a non commercial basis.
8 Ps in Tourism Marketing
Product:
 The product is the collection of services that have

features and benefits.
 Standard features and benefits include, for example

the normal amenities of a hotel room.
 Good marketing adds special features, such as free

breakfasts or free Internet.
8 Ps in Tourism Marketing…
Price:
 The price has to match the product, but good

marketing makes the price seem more attractive.
 The operator can either add features to the product

and keep the price the same or give a discount for
the same features.
 Place: refers to the location where the customer
buys the collection of services.
 Ideally, the operator who sends out the promotion

uses it to encourage the potential customer to visit
the operator's location and complete the purchase.
 With the convenience of online payments, the

operator may find that the best strategy is to direct
potential customers to an attractive website where
they can complete the purchase.
Promotion:
 The promotion gives details of the product and the

price.
 The key characteristics of travel marketing strategy

are the method of communicating the information,
the content of the promotion and the cost to the
operator.
 The promotion has a target market, and the method

and content of the promotion has to appeal to the
people who it reaches.
 The price the members of the target market are
willing to pay has to cover the cost of the promotion.
People:
 Since the product is a collection of services, the

people who provide the services are a key to the
success of the transaction.
 It also plays a vital role in quality control, personal

selling, and employee morale.
Process:
 The process include, trip planning and anticipation,
travel to the site/area.
 The trip planning packages include, maps, attractions,
on site, information regarding lodging, food, quality
souvenirs and mementoes.
 Travel information, preparation of itineraries, liaison
with providers of services,
 planning and costing tours, ticketing, provision of
foreign currency and insurance.
Productivity and Quality:
 The quality is assessed by time taken for a service,

the promptness of the service, reliability and so on.
Physical Evidence:
 It is basically depends on travel experience stay and

comfort.
 That is, seats comfort while travelling, ambience,

layout, design of the resort, etc.
Initiatives for Promoting
Tourism in India
 Improvement in the immigration system at the
airports to facilitate easier and less time consuming
custom checks, etc., for tourists.
 Simplification of the visa system.
 More foreign currency changing facilities in both

hotels and other accommodation.
 Investments in facilities existing at Airports and bring

them up to excellent international Standards.
Tourism in India…
 Air conditioned coaches of the most modern type for
foreign tourists.
 That is, the department of tourism may be allowed

the facility of importing such coaches to strengthen
their existing fleet and coach standards.
 Introduction of the Air Taxi Service with a wide

coverage.
 The import of Aircraft for this purpose is to be

considered.
Tourism in India…
 More number of trains with excellent facilities in the
Southern, Eastern and Western Region may be
introduced.
 Relaxation of visiting restrictions in Northern and

Eastern region of the country,
 so the tourists can visit Gangtok, Meghalaya, Assam

and Manipur more easily.
Tourism in India…
 Incentives for new hotels to be given to interested
parties for setting up hotels in rural areas, hilly areas,
place of pilgrimage and new areas identified as
suitable for tourism.
 Emphasis is placed on opening budget hotels.
 Paying guest accommodation is proposed to be

developed to supplement the hotel accommodation
which caters to low budget economy tourists.
Importance of Tourism
Marketing
 Marketing helps to create new customers by offering
to satisfy their needs and aims primarily at customer
satisfaction.
 Their crucial role is in promoting distinct destination

prints citing cultural, social scenically important,
historical and entertainment oriented places.
 What the traveler needs on his travel is a hygienic

and a good place to sleep,
Marketing…
 safe, clean place to eat moderately priced good food
and
 a comfortable mode of travel be it by train, bus or

plane.
 Merchandising becomes more effective under tourism

marketing management because,
 management view their tasks as that of supplying

want satisfaction rather than creating demand for its
products among the customers.
Marketing…
 Selling a holiday is „selling dreams‟.
 The way to win the customer‟s heart is through the

peripheral services provided along with the core
product.
 Thus, a tourism product is quite a complex one,

including the destination, airline seat, hotel room,
occasional tangible products, etc.
 Attractive package tours, competitive airfare attract

more and more tourists day by day, therefore, both
the industries are expanding rapidly.
Indian Tourism and Hospitality
Industry
 Total contribution by travel and tourism sector to
India‟s GDP is expected to increase from Rs 15.24
trillion (US$ 234.03 billion) in 2017 to Rs 32.05
trillion (US$ 492.21 billion) in 2028.
 India was ranked 7th among 184 countries in terms

of travel & tourism‟s total contribution to GDP in
2017.
 During May 2019, arrivals through e-tourist visa

increased by 21.70 per cent year-on-year to 1.23
million.
Indian Tourism and Hospitality
Industry…
 As of 2017-18, 81.1 million people are employed in
the tourism sector in India which was 12.38 per cent
of total employment in the country.
 The Government of India has set a target of 20

million foreign tourist arrivals (FTAs) by 2020 and
double the foreign exchange earnings as well.
 The launch of several branding and marketing

initiatives by the Government of India such as
„Incredible India‟ and „Athiti Devo Bhava‟ has provided
a focused impetus to growth.
Financial Services in India
 India has a diversified financial sector undergoing
rapid expansion, both in terms of strong growth of
existing financial services firms and new entities
entering the market.
 The sector comprises commercial banks,
 insurance companies,
Financial Services in India…
 non-banking financial companies,
 co-operatives,
 pension funds,
 mutual funds and
 other smaller financial entities.

 The banking regulator has allowed new entities such
as payments banks to be created recently thereby
adding to the types of entities operating in the sector.
 The financial sector in India is predominantly a

banking sector with commercial banks accounting for
more than 64 per cent of the total assets held by the
financial system.
 The Mutual Fund (MF) industry in India has seen rapid

growth in Assets Under Management (AUM).
 Total AUM of the industry stood at Rs 23.80 trillion
(US$ 340.48 billion) between April 2018-February
2019.
 Another crucial component of India‟s financial
industry is the insurance industry.
 The insurance industry has been expanding at a fast
pace.
 The total first year premium of life insurance
companies reached Rs 214,673 crore (US$ 30.72
billion) during FY19.
Communication and
Information Services
 The Information and Communication Technology
(ICT) sector contributes over 13 percent to the
country‟s Gross Domestic Product (GDP) and
 India‟s digital economy generates about $200 billion

of economic value annually from business process
management (IT-BPM),
 e-commerce,
Communication and
Information Services…
 domestic electronics manufacturing,
 digital payments,
 digital communication services (including telecom),

etc.
 By 2025, India is expected to have an overall digital

economy of about $800 billion.
 According to KPMG, the market size of the India‟s

ICT industry is currently estimated at $180 billion
and projected to grow to $350 billion by 2025.
Communication Services in India
Postal Services:
 The Postal Services are the oldest, cheapest and very

popular means of communication.
 The Postal Department was started in 1854.
 The postal network in India is the largest in the

whole world with 1.5 lakh post offices.
 Postal department is offering so many services like:

Communication Services in India…
 Inland letters and envelops within the country and
through aerogramme to other countries,
 Registered post, Speed post, Money order,
 Goods can be sent through parcel or value payable

post (V.P.P.),
 Money Transfer from foreign countries,
 Parcel Service and Corporate Money Order,

 Post Office Saving Bank facilities,
 Postal life insurance,
 Collection of Income Tax returns,
 Collection and distribution of Telephone bills,
 Monthly Pension scheme,
 Term Deposits and sale of National Saving

Certificates facilities etc.
 India Post Payments Bank has rolled out Aadhaar
Enabled Payment System (AePS) Services.
 With the launch of AePS services, India Post Payments

Bank (IPPB) has now become the single largest
platform in the country,
 for providing interoperable banking services to

customers of 'ANY BANK' by leveraging the last mile
unprecedented reach of the Postal network.
Telecommunications:
 It establishes direct link between two parties located
at different places and at any time.
 Telephone Regulatory Authority of India (TRAI) has
been established to regulate tariff and competition in
the telecommunication section.
 India is currently the world‟s second largest
telecommunications market with a subscriber base of
1.20 billion and has registered strong growth in the
past decade and half.
 The Indian mobile economy is growing rapidly and
will contribute substantially to India‟s Gross Domestic
Product (GDP),
 according to report prepared by GSM Association

(GSMA) in collaboration with the Boston Consulting
Group (BCG).
 As of January 2019, India has witnessed a 165 per

cent growth in app downloads in the past two years.
Courier Services:
 The courier services means the services rendered by

private companies or firms for sending and delivery
of letters, parcels and packets to the addressee.
 Courier services work as private mini post offices.
 They accept envelops, parcels and packets from the

sender and charge commission and
 issue receipts certifying that the received article will

be delivered to the addressee.
Electronic Method:
 Fax: it is an electronic method of sending recorded

messages in the form of letters, handbills, statements
and files etc.
 It can be used throughout the day and night from any

corner of the globe.
 E-mail: it is a way to communicate people all over
the world throughout the day and night without
waiting the receiver to wake up and making himself
present.
 It can send messages to hundreds of people in a few

minutes.
 It can also send files, photos or even video clips.

Internet Service:
 We can get required information directly through

computers by opening the site.
 The required information can be downloaded any

time.
 We have to install an internet connection.
 With 604.21 million internet subscribers, as of

December 2018, India ranks as the world‟s second
largest market in terms of total internet users.
 Moreover, in 2017, India surpassed USA to become
the second largest market in terms of number of app
downloads.
 The country remained as the world‟s fastest growing

market for Google Play downloads in the second and
third quarter of 2018.
 Over the next five years, rise in mobile phone

penetration and decline in data costs will add 500
million new internet users in India, creating
opportunities for new businesses.
Radio and Television:
 They provide us the latest information in the shape of

news and advertisements and
 also a source of entertainment for us.
 Today the myriad channels, shows and free telecasts

by Indian and foreign companies have made India a
global hub.
 Now private FM channels in different languages are

competing with AIR.
 The dish TV changed the quality of broadcasts an
omnibus platform for all TV and radio channels.
 With Prime Minister Narendra Modi starting

his Mann ki Baat on AIR it created a convergence of
radio,TV – all TV channels, and dish.
 The 34th Mann ki Baat broadcast in end July proved

that even official broadcasts can boost listening,
viewership and ratings of all media, yes even of
newspapers.
Professional Services
 Professional services are occupations in the tertiary
sector of the economy requiring special training in
the arts or sciences.
 Some professional services require holding

professional licenses such
as architects, accountants, engineers, doctors
and lawyers.
 Other professional services involve providing

specialist business support to businesses of all sizes
and in all sectors;
Professional Services…
 this can include tax advice, supporting a company
with accounting, IT services or providing management
advice.
 Four types of professional service firms are:
 Classic PSFs (e.g. law and accounting firms):

characterized by a high knowledge intensity, a
professionalized workforce, and low capital intensity.
 Professional campuses (e.g. hospitals): characterized

by a high knowledge intensity, a professionalized
workforce, and high capital intensity
 Neo-PSFs (e.g. management consultants):
characterized by a high knowledge intensity and a low
capital intensity.
 Technology developers (e.g. R&D firms, biotechs):

characterized by a high knowledge intensity and a
high capital intensity.
 Professional services can be provided by sole

proprietors, partnerships or corporations.
 A person providing the service can often be
described as a consultant.
 Businesses in other industries, such as banks and

retailers, can employ individuals or teams to offer
professional services for their customers.
 The marketing and selection of professional service

providers may depend on factors such as skill,
knowledge, experience, reputation, capacity, ethics,
and creativity.
 Large corporations may have a
formal procurement process for engaging professional
services.
 Prices for services, even within the same field, may

vary greatly.
 Professional service providers may offer fixed rates
for specific work, charge in relation to the number or
seniority of people engaged, or
 charge in relation to the success or profit generated
by the project.
 Prices for services, even within the same field, may
vary greatly.
 Professional service providers may offer fixed rates

for specific work,
 charge in relation to the number or seniority of

people engaged, or
 charge in relation to the success or profit generated

by the project.
Health Care Industry
 The Indian healthcare sector is expected to reach
US$ 280 billion by 2020.
 The sector is expected to generate 40 million jobs in
India by 2030.
 11,00,000 jobs are expected to be created from
Ayushman Bharat, the National Health Protection
Scheme.
 As of June 12, 2019, number of sub centres reached
168,418 and number of Primary Health Centres
(PHCs) increased to 33,476.
Health Care Industry…
 The hospital industry in India stood at Rs 4 trillion
(US$ 61.79 billion) in FY17 and is expected to reach
Rs 8.6 trillion (US$ 132.84 billion) by FY22.
 The private sector has emerged as a vibrant force in

India's healthcare industry, lending it both national
and international repute.
 It accounts for almost 74 per cent of the country‟s

total healthcare expenditure.
Health Care Industry…
 Telemedicine is a fast emerging trend in India; major
hospitals (Apollo, AIIMS, and Narayana Hrudayalaya)
have adopted telemedicine services and entered into
a number of public private partnerships (PPP).
 Further, presence of world class hospitals and skilled

medical professionals has strengthened India‟s
position as a preferred destination for medical
tourism.
Consulting Industry In India
 The Indian consulting industry has seen a substantial
growth, not only in terms of size, but also in terms of
the service offerings.
 Due to constantly increasing demand, the industry is

estimated to grow at a compounded annual growth
rate of 30 percent to become a Rs 27,000 crores
industry by 2020,
 as per the reports of The Associated Chambers of

Commerce and Industry of India (Assocham).
Consulting Industry In India…
 Due to the involuntary reduction in workforce, many
organizations lack the technological, strategic and
project management abilities to handle market and
technical changes in the ever growing market.
 Therefore, currently, the business world desperately

needs consulting assistance.
 It is projected that by the next three years, there

would be more than 2.2 lakh people getting
employment in almost 10,000 consultancy firms
across the nation.
 The major strengths of Indian consulting
organizations include professional competence,
 low cost structure,
 diverse capabilities,
 high adaptability and
 quick learning capability of Indian consultants.

 The major weaknesses of Indian consulting
organizations, which has hindered the export growth
of consulting sector in the country, are
 low quality assurance,
 low local presence overseas,
 low equity base,
 lack of market intelligence, and
 low level of R&D.

Information Technology Industry
 Information Technology Industry is one of the fastest
growing industries in the country.
 The Indian IT industry comprises of software industry

and information technology enabled services (ITES),
which even includes business process outsourcing
(BPO) industry.
 IT industry in the country has played a major role in

placing India on the international map.
Information Technology Industry…
 Indian IT & ITeS companies have set up over 1,000
global delivery centres in about 80 countries across
the world.
 India has become the digital capabilities hub of the

world with around 75 per cent of global digital talent
present in the country.
 The computer software and hardware sector in India

attracted cumulative Foreign Direct Investment (FDI)
inflows worth US$ 37.23 billion between April 2000
and March 2019 and,
Information Technology Industry…
 ranks second in inflow of FDI, as per data released by
the Department for Promotion of Industry and
Internal Trade (DPIIT).
 The government has identified Information

Technology as one of 12 champion service sectors
for which an action plan is being developed.
 Also, the government has set up a Rs 5,000 crore

(US$ 745.82 million) fund for realizing the potential
of these champion service sectors.
Educational Services
 India holds an important place in the global education
industry.
 India has one of the largest networks of higher

education institutions in the world.
 India is known worldwide as an important

contributor in the global education industry.
 Indian Higher Education is 3rd largest in the world

after US and China with over 35 million students
enrolled and 850 universities.
Educational Services…
 Marketing of education is gaining momentum with the
entry of private institutions, change in people's
attitude towards education and
 the changing scope for the different courses being

offered.
 The technological changes and shrinking global
boundaries have increased the significance of
marketing for education services.
 The education service can be described as a high
contact, consumer and people based service.
Educational Services…
 With the changes in customer education and the job
market, the market for unconventional courses is
increasing.
 So no marketer can afford to ignore these markets.
 As the education service is intangible, inseparable and

perishable, certain implications exist for marketing.
 And service quality is not consistent for all

customers, or even a single customer at all times.
 So the marketers' job becomes tough.

Social Marketing
 Is the use of marketing theory, skills and practices to
achieve social change.
 It is the primary goal of achieving social good.
 Traditional commercial marketing aims are primarily

financial, though they can have positive social effects
as well.
 While social marketing would promote general

health, rise awareness and induce changes in
behaviour of the public at large.
Social Marketing…
 Social marketing by nonprofit or government
organizations promotes a cause, such as say no to
drugs or exercise more and eat better etc.
 Some notable social marketing successes are:
 Oral rehydration therapy in Honduras and India

significantly decreased deaths from diarrhea in
children under five.
 Social marketers created booths in marketplaces

where Ugandan midwives sold contraceptives at
affordable prices.
Social Marketing…
 The pulse polio campaign of the Government of India
has dramatically reduced the number of polio affected
children in the Country.
 Population Communication Services created and

promoted two extremely popular songs in Latin
America, “Stop” and “When We Are Together”, to
help young women “say no”. etc.
Social Marketing…
 Different kinds of organizations conduct social
marketing in our Country, they include:
 Government Departments,
 Autonomous Institutions,
 Foundations created by political parties,
 Corporations,
 Religious groups,
 Non government organizations etc.

References
 Harsh V. Varma – Services Marketing – Text & Cases – 2nd Ed. –
Pearson
 K. Rama Mohana Rao. Services Marketing, 2013. – 2nd Ed. – Pearson
 Ramaswamy, Namakumari. Marketing Management – Indian Context.
Global Perspective. 2018. – 6th Ed. – SAGE
 Christopher Lovelock, JochenWirtz, Jayanta Chatterjee – Services
Marketing: People,Technology, Strategy – 8th Ed. – Pearson
 Marie J. Bitner, Valarie A. Zeithaml – Services Marketing – Tata
McGraw Hill
 Helen Woodruffe – Services Marketing – Longmen Group
 Adrian Payne – The Essence of Services Marketing – Prentice Hall
India.
MACFAST
Thank You and

All The Very Best…
Dr. Ajai Krishnan G

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Tourism

 Tourism comprises the activities of persons travelling

(WTO, 1992 – subsequently ratified by the UN

1. Visitor activity is concerned only with aspects of life

2. The activity necessitates travel and, in nearly every

 Such activities and facilities have a combination of

 Five important points are stressed in relation to the

 There is nothing in it that restricts the total market

 It includes travel for business, social, religious,

 provided that the destination of travel is outside the

 The definition excludes all routine commuter travel

 Travel and tourism absorbs large elements of

 All travel and tourism trips are temporary

 the bulk of the total market comprises trips of no

 It can be seen that some of the subsectors are fully

 some are operated commercially for purposes other

 The product is the collection of services that have

 Standard features and benefits include, for example

 Good marketing adds special features, such as free

 The price has to match the product, but good

 The operator can either add features to the product

 Ideally, the operator who sends out the promotion

 With the convenience of online payments, the

 The promotion gives details of the product and the

 The key characteristics of travel marketing strategy

 The promotion has a target market, and the method

 Since the product is a collection of services, the

 It also plays a vital role in quality control, personal

 The quality is assessed by time taken for a service,

 It is basically depends on travel experience stay and

 That is, seats comfort while travelling, ambience,

 Simplification of the visa system.

 More foreign currency changing facilities in both

 Investments in facilities existing at Airports and bring

 That is, the department of tourism may be allowed

 Introduction of the Air Taxi Service with a wide

 The import of Aircraft for this purpose is to be

 Relaxation of visiting restrictions in Northern and

 so the tourists can visit Gangtok, Meghalaya, Assam

 Emphasis is placed on opening budget hotels.

 Paying guest accommodation is proposed to be

 Their crucial role is in promoting distinct destination

 What the traveler needs on his travel is a hygienic

 a comfortable mode of travel be it by train, bus or

 Merchandising becomes more effective under tourism

 management view their tasks as that of supplying

 The way to win the customer‟s heart is through the

 Thus, a tourism product is quite a complex one,

 Attractive package tours, competitive airfare attract

 India was ranked 7th among 184 countries in terms

 During May 2019, arrivals through e-tourist visa

 The Government of India has set a target of 20

 The launch of several branding and marketing

 The sector comprises commercial banks,

 mutual funds and

 other smaller financial entities.

 The financial sector in India is predominantly a

 The Mutual Fund (MF) industry in India has seen rapid

 India‟s digital economy generates about $200 billion

 digital communication services (including telecom),

 By 2025, India is expected to have an overall digital

 According to KPMG, the market size of the India‟s

 The Postal Services are the oldest, cheapest and very