Tourism In India - Incredible India 2

Incredible India 2 Revised Marketing Strategy Presentation

Tourism Industry Statistics • Tourism is one of the world’s fastest growing industries. • Tourism industry is estimated to earn around US$3.5tr worldwide • Consumer spends around 5-10% of total spending in a year

Tourism Industry Statistics (India) • India’s share of total market is pittance 0.51% • However, average duration of stay is one of the highest – 27 days for non-package tourist – 14 days for package tourist

• Third largest export industry after gems and jeweller and garments • Foreign exchange earnings are around US$3.2bn • It is the highest foreign exchange earner if we consider the fact that the net value addition in Gems and Jewellery is 30% whereas in Tourism it is more than 90%

Tourists Arrivals and Receipts Worldwide

S.L.E.P.T. Analysis •

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Social: Tourism was looked upon as a destruction of the social fabric of a place. But some places like Kerala and Rajasthan have kept balance between their own culture and demand of international tourists and thus have profited handsomely Legal: – Tax – Foreign Investment – Eco-tourism policies and guidelines

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Economic: – High spending power of International Tourists – Increase in demand for better hotels – Air Travel increase

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Political: – Tourism industry is based on Government support and cannot sustain without it. – The main attraction: the vast heritage of India is entirely under Govt. Through ASI – Policy change has a huge impact on the industry – Political turmoil in the country also leads to the decrease in the tourists

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Technology: – It plays a major part in the promotion of a place – Better communication by far reaching areas – Better transportation leads to people visiting many places

SWOT Analysis •

Strengths: – – – – –

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Geographical Diversity – Desert, Mountains, Forests and Beaches Cultural Diversity Wealth of archaeological sites and historic monuments Manpower costs are low World class hotels present

Weaknesses:

– Lack of adequate infrastructure – Xenophobic attitude among certain sections – No proper marketing tools used

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Opportunities:

– Proactive role of govt. in framing proper policies – Allowing entry of more multinational companies – Growth of Domestic Tourism

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Threats: – Economic Conditions of the other countries – Political turbulence in Kashmir, Gujarat – Aggressive strategies approached by other countries for tourism

Segmentation • The most important base for segmentation is the Lifestyle as travelling decisions can be greatly influenced by the same. • Other factors such as Level of Income, Availability of leisure time, etc. are secondary.

Segmentation (Contd.) BASE OF SEGMENTATION Holiday

Demand Geography Psychography

Demography

Socio-economic Purpose

Age

CATEGORIES Mass market Popular market Individual market Primary Secondary Opportunity International On the basis of regions, cities, etc. Lifestyle Personality motive Knowledge Age Sex Religion Rich, Poor Rural, Urban Literate, Illiterate Business Travel Cultural Tourism Common Interest Convention Teens Youth Seniors

Targeting • Mass Market: – Consists of Vacationists that travel in large groups – They prefer all-inclusive tours – Generally Conservative

• Popular Market: – Smaller Groups going for inclusive or semi-inclusive tours – Groups include pensioners, retired people

• Individual Market: – Consists of Chairmen, Sr. Executives, people on business visits.

• As lifestyle changes, preferences might change

Players in the Industry

Total Product Concept Theme Tours Customized Holiday

Special interest Tours Tour Guides

Hotels

Accessibility

Time Sharing

Specialt y Food

Destinati on/Tour Package

Theme Hotels Safety

Basic Transporta tion Multilingual Guides Souveniers Professional Experts Multi-Cuisine

Medical Insurance

Marketing Process

Marketing of Tourism • Product Mix – – – – – –

Attractions Accomodation Restaurants Transportation Recreation Shopping

• Price Mix – Set prices in line with the quality of service offered – Pricing decisions are influenced by external and internal factors

• Promotion Mix – Advertising – Publicity – Sales Promotion – WoM Promotion

• Place Mix – It is concentrated on two things – Availability and Accessibility – Selling through travel agents or direct selling – Transportation plays key role