TOURISM INDUSTRY IN INDIA

SUBMITTED BY:
PARUL TANDON PIYUSH GROVER PRATISHTHA BHALLA PRIYANKA SAROHA PUNEET ARORA (033) (034) (035) (036) (037)

WHAT IS TOURISM?
Tourism is travel for recreational or leisure purposes as

well as for business purposes.

Tourism is the temporary, short-term movement of

people to destination outside the places where they normally live and work.
Tourism industry is all businesses that cater to the needs

of the traveling public.

TOURISM INDUSTRY
Segments in the Tourism Industry

Tourism Industry Hospitality Lodging Operation Retail (Shopping) Stores Transportation Services

Destination (Activity) Sites

Food & Beverage Operations

Tourism industry is

third largest retail industry following automotive & food stores nations largest service industry one of the nations largest employers

INDIAN TRAVEL GUIDE

28.8% 25.3% 24.6%

21.8 %

Are travelling for business purposes.

Attending a group conference or meeting.

Are on vacation.

are traveling for other reasons (for example, personal, family, or special event)

Source: Hotel Operations Management, Hayes/Ninemeier

KEY SERVICES TOURISM PLAYERS MUST PROVIDE

Accommodation facilities

Catering services

Customer demand-driven packages

Transportation facilities

Hospitality

Economical

GOVERNMENT INITIATIVES
Government has taken many initiatives to promote tourism in India. These include:
INCREDIBLE INDIA campaign

ATITHI DEVO BHAVA

Various infrastructure and building initiatives Promotes Religious Tourism like Buddhist Accolades.

MAJOR PLAYERS
Make My Trip.com

SOTC (Kuoni Travel India Pvt. Ltd)

Cox and Kings India Limited Yatra.com

Thomas Cook

SkyLink Travels Club Mahindra

MAKE MY TRIP

Customer Segments in Indian Travel Market

Indian Travel Market International Travelers

Domestic Travelers

Inbound Travelers (Inbound Market)

Outbound Travelers ( more than 6 millions)

Holiday & Sightseeing

Business Travelers

Conference attendance

Visiting friends & Relatives (VFRs)

Students

Marketing mix for services

makemytrips promotion
MMT offers travel insurance and Business Lounges in

India and overseas for all travelers MMT provides valuable shopping discount booklets MMT provides pick up and drop services for all air travelers. Promoting services with strategic alliances with brands like Coke, Sify.com, Maruti Udyog and Nokia etc.

makemytrips people
An essential ingredient to any service provision is the use of

appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. MMT Staffs have the appropriate interpersonal skills, aptitude, and service knowledge to provide the service that consumers are paying for. Most trusted name in the industry, MakeMyTrip's spectacular success is in no small part due to the unblinking vision of its senior management team and the dedication of its employees. MakeMyTrip employs over 700 Trippers from the travel, tourism, hospitality and technology industries.

makemytrips process
The process mix constitutes the overall procedure

involved in using the services offered by the MMT. A process should be such that the customer is easily able to understand and easy to follow. The smaller and simpler the procedure, the better the process, and the customer will be more satisfied. It Refers to the systems used to assist the organization in delivering the service.
.

mmts Business model & operations

Online Interface With MMT
Makemytrip.com Interface Real Time Airline Booking Customer

Offline (after sales) Interface

MMT Sales (CSRs) MMT Ticketing

Hotel Reservation System

Car Rental interface

Fed Ex

Customer Airlines
Consolidators

MMT Operation

MMT Sales

Web Site Content

Car Rental

Hotels

Tour Operation

Net Carrots

makemytrips physical eveidence

Physical evidence is the overall layout of the place i.e.

how the entire MMT office has been designed. Physical evidence refers to all those factors that help make the process much easier and smoother.

Situation Analysis of Travel Market using 4C Framework

NRI population in U.S and U.K is increasing Consumer life is changing People need service in less time. Indian people are price sensitive Corporate tie-up Global giant companys in this field like Travelocity ,Orbit, Priceline and Expedia. Most of Airlines encouraging direct online purchasing

Customer

Competitors

USD 1.5 billion NRI

market world wide Outbound traveling increased by 30 % In India Inbound and Outbound travel market growing 20 % annually.

Context

Company

Deep Kalra is the found the make my trip.com as a Private equity, with investmen of 0.4millionUSD. MMT operates as a Two separate entities Make my trip India and Make my trip inc.

mmts marketing Strategy

Customer focus with

mmts target Market

More than 14 million

operational efficiency and customer intimacy.

NRI Population in U.S., Europe and Asia. More than 9 million Indians customers travel abroad. International and Domestic Holiday packages increasing

mmts advertising & Communication Strategy

MMTs advertising and communication strategy on

three pillars--1. Convenience of 24/7 service 2. Reliability 3. Competitive Pricing Promoting services with strategic alliances with brands like Coke, Sify.com, Maruti Udyog, Nokia etc.

mmts positioning
MMT position as a single portal for all travel and

accommodation needs. Its appeal reliable travel booking with Excellency. MMT aims to position itself total provider solution with convenience as key drive its strategy to attain the cost leadership which will help is to sustain growing competition in the future. Being the entrant and cost leader the company will able to achieve sustainable advantage.

MAKEMYTRIP VALUES
Passion for Winning Respect for People Excellence

Empowerment

MMTs Values

Customer Centricity

Fun@Work

Integrity Accountability

Teamwork

Innovation

Review and Control Strategy

All calls are recorded & periodically examine to

improve the quality output of customer care executives. Each web chatting and emails are saved in MMTs system for constant monitoring of the service quality give to the customer. MMT from a dedicated set of executive to service sophisticated corporate and general sales business.

mmts contingency strategy

MMT anticipates periodic analysis on customers

behavior and critical market strategy. It will to help new marketing, sales and new products. To improve the operational efficiency and technological advancement MMT has plan to invest money.

SOTC (Kuoni Travel India Pvt Ltd.)

ABOUT

Established in 1949 in Mumbai

By 1968, it became one of the top 10 travel agents in

Mumbai Breakthrough in 1981, when they published their first ad in a newspaper In 1996, it was acquired by Kuoni world travels

PRODUCT
Group tours for individuals

Indian tours
Special interest tours World famous tours

SOTC Sports tour

SOTC Trade fairs SOTC Corporates

PRICE
Psychological pricing

Value for money

Perceived value pricing Cost plus pricing

No hidden clauses

PROMOTION
Conventional media channels: print media, tie ups

with tourism boards, travel fairs Holiday bazaars: Singapore bazaar and Malaysia bazaar Special packages Quarterly brochure: Lets go Word of mouth, personal selling, telemarketing Exhibitions/Trade Fairs

PLACE
Online

Holiday world outlets

Sales agents Home delivery

PHYSICAL EVIDENCE

Brochures, photos Pens, files, caps etc. Facilities like flat beds Ambience of hotels Experience

PEOPLE
FOR EMPLOYEES
Employee value proposition

Management development programs for executives

Focuses on training Potential development centers

FOR CUSTOMERS
Detailed and true itinerary Contingency plan Quick refund system

Feedback form

PROCESS
Provision of travel information

Preparation of itinerates
liaisons with providers of services Planning and costing tours

Ticketing
Provision of currency and insurance

GAPS
In case of evening flights, they need lunch which is

not provided Inadequate response to customers No single tour guide Difficulty in coordinating with channel members Language barriers Feedback is not lad focus upon

Cox and kings- and overview

Cox & Kings is the longest established travel company in

the world, established in 1758 by Richard Cox "Cox & Kings" -Amongst the oldest travel brand Recognised both locally as well as globally One of Indias largest travel and tour operator Pan-India presence with 255 touch points in 164 locations A global player, with presence in 20 countries including India spread across all continents "One Stop Shop" for all travel needs Leisure, Corporate, Forex and Visa processing services Proven growth track record both organically and inorganically 4Y CAGR (FY06 FY10) -Revenues~59%; EBIDTA ~88% &PAT~74%

7 Ps ANALYSIS

FOX AND KINGS INDIA- PRODUCT LINE OUTBOUND INBOUND DOMESTIC

offer large no of destinations under duniya dekho ( group tours) and flexihols (FIT tours) brand.
Caters to both subsidiaries as well as other tour operators. Renowned for tour specialties for Indian tours

marketing products under brand bharat dekho caters to both subsidiaries religious pilgrimage tours, Exclusive products as well as other tour operators. Renowned for tour specialties forholidays, spa holidays, train education tours, activity Indian tours vacations
Offers customized solutions for corporate clients. Continued relationship with corporate clientele helps to cross sell

BUSINESS TRAVEL
FOREX

One of the first travel companies to be licensed as the Authorised Dealer

 Presence in 20 countries globally including India Subsidiaries in UK, Australia, New Zealand, Japan, US, UAE, Hong Kong, Greece, Germany and Singapore Branch offices in Moscow (Russia),Maldives and Tahiti Representative offices in Spain, Sweden, Germany, Italy, France, Taiwan, South America and South Africa. IN INDIA One of Indias largest travel and tour operator Pan-India presence with 255 touch points in 164 locations

PLACE

Promotion
Frequent advertisement on television Banners and hoardings Sponsoring various events Advertisement on leading newspapers Flyers ,Roadside promotional Activities. Release Travel guides Release Year calendars

price
Targeting lower middle

class to high class Flexi pricing options Psychological pricing Regular discount offers Seasonal pricing

People
Highly qualified Interpersonal skills Service knowledge people Industry experience It focuses on training as an internal

process of the knowledge sharing. Potential development centers

Physical Evidence
Brochures, photos, calendars Pens, files, caps, gifts etc. Facilities like flat beds, conferencing facilities Ambience of hotels

Process
Online

booking(www.coxandkings.co.in) Tele- booking (toll free no 18002090400) Cox and kings outlets

COMPARISON

 Despite having so many similarities in terms of the

services offered, promotional and pricing strategies, employee training and development etc, the three companies also have some points of differences which will be discussed in the following slides.

Make My Trip The youngest amongst the three, was founded in the year 2000.

SOTC Founded in 1949, was acquired by the Kuoni Travel group in 1996.

Cox & Kings The oldest travel company, was founded in 1758.

It has over 20 offices across India while 2 offices outside India.

It has a wide distribution network of 130 sales outlets(also includes the franchisees) and 3500 travel agents across India
The Kuoni group has been the most preferred travel company globally for the past many years with it also winning numerous prestigious global awards in successions.

It has 12 fully owned offices in India with a strong global presence in all major countries.
Is a well known and reputed travel brand with great global presence.

Market Leader in India in terms of the market share which is around 49%.

Make My Trip
Has the highest growth rate in terms of revenue and popularity and has also been forecasted to grow at a phenomenal growth rate in the next couple of years

SOTC
Limited growth rate in the Indian context. The forecasts indicate a better growth rate in the next couple of years in terms of the revenue.

Cox & Kings

An avg growth rate in the Indian market and the forecasts seem to indicate similar growth rate.

Leads the Indian online travel booking market.

Is the world leader in Has strong global as well terms of the revenues and as Indian presence and quality of its services brand awareness. worldwide.

POSITIVE IMPACTS OF TOURISM

Improvement in local life through better infrastructure

leading to better healthcare, education, sports and entertainment facilities. Generates revenue for the tourist spot. Brings in employment as tourism increases at a particular place. Helps in conservation of historical sites. Gives good chance for leisure and entertainment in this busy, work-driven world.

NEGATIVE IMPACTS OF TOURISM

Local industries might be hindered due to excessive

imported goods being brought. Tourism may bring in anti social and illegal activities in the local areas. There may be language barriers making it very difficult for foreigners to communicate efficiently. The employment so brought may be seasonal. Excessive rush of tourists may cause environmental hazards to the flora and fauna.

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