Introduction to tourism industry

Presented By: Dinesh Kr Divya MD
Guruprasad P Harshita K
Hulas G

INTRODUCTION
Tourism Industry is primarily:
 Service-oriented
 People-based industry, in a largely seasonal
business providing a wide range of services to
‘tourists’, often on 24X7 basis.

INTRODUCTION
It is unique because:
 It is not a single, definable industry, instead it is
made up of businesses and organizations
 Belonging to various other industries and sectors
 The interplay of all of these (businesses and
organizations), when properly aligned, gives rise to
Tourism Industry’s ultimate product - ‘the travel
experience’.

STRUCTURE
A large part of tourism industry is a combination of:
 Hospitality (a combination of businesses related to
accommodation and dining)
 Travel Industry (businesses providing transportation
services (to tourists) through different modes).

Components of Services in
Tourism industry

COMPONENTS
 Accommodation (Hotels & Motels, Camps, Guest
House, Bed and Breakfast, House Boats, Resorts.)
 Attractions (Natural, Cultural, Educational,
Monuments, Events, Medical, Social, Professional)
 Tour Operators (Incoming, Outgoing, Cruises, Day
tours and sight seeing, Adventure Tours, Religious
Tours, Educational tours)

COMPONENTS
 Business Tourism (Incentive, Meeting, Events,
Exploring New Possibilities, Meeting Organizers,
Event Organizers, Conference Organizers)
 Carriers (Airlines, Roadways, Railways, Ships,
Cruises, Rent-a-cars and other vehicle hiring,
Local transportation)

COMPONENTS
 Retail Services (Art and Crafts, Garments,
Souvenir, Books, Medicine, Luggage, All other
retail shops used by tourists)
 Dining (At hotels , Local Restaurants, Roadside
joints, Cafeterias, All retail counters serving food
and beverages)

COMPONENTS
 Distribution, Coordination and Facilitating
Services (Government Agencies, Packaging agents,
Guides, Tour Managers, Tour Wholesalers, Holiday
Sellers, Industry Associations, Machinery and
equipment hiring and leasing)
 Other Support Services (Insurance (travel, life,
medical, luggage, Recreational services, Banking
Services, Communication Services)

Product
 The tourism product differs from other
products due to the wide range it covers,
including such areas as
accommodations, transportation, food,
recreation and attractions.
 Often the product includes intangibles
such as history, culture and natural
beauty.

Place
 Travel agents
 Tour operators
 Tour wholesalers

Price
 A quality tourism experience at a fair
price is what the customer is looking for
in most cases.
 Pricing should be based upon clear-cut
goals and objectives.

Promotion
 Generally information kits, web sites, advertising,
personal selling, sales promotion, travel shows, and
public relations are used for promotions.
 Tourist information centre is the latest tool used
 Participation with state, regional and local tourism
offices and associations.

Process
 The tourism product often includes a variety of
attractions, facilities and services, therefore
process must also take on several different
forms.

Physical Evidence
 Finding a special place in the market for the
product to differentiate from your competitors.
1. Identify a set of possible competitive
advantages upon which to build a position.
2. Select the right competitive advantage.
3. Effective communication and delivery of
the chosen position to a selected target market.

People
 The people who sell and service your product are an
extremely important part of tourism marketing. Friendly
personal service and trained employees can make or break a
tourism business.
 What the customers say after they depart can thrust your
business forward or send it into a downward spiral.

India’s Incredible
Marketing Campaign

CHALLENGES
CHALLENGES TO
INDIAN TOURISM
INDUSTRY
INDUSTRY
SPECIFIC
SECTOR
SPECIFIC
INDIA
SPECIFIC

CHALLENGES
1. Sector Specific Challenges :
Being a part of the service sector, Tourism Industry faces the
below mentioned challenges posed by the sector itself :
 High Exit Barrier; Difficulty in trial - hard to
escape from the consequences of a poor choice of service
and service provider, prerequisite to have a good ‘product’
to achieve sustainable sales
 Word-Of-Mouth (WOM) - the choice of destination is
affected by WOM publicity

CHALLENGES
2. Industry Specific Challenges:
Certain challenges exist along with the industry around the
globe
 Highly infectious industry - Tourism Industry is very sensitive
to environmental changes and it gets affected by them and
reacts very fast to them.
 High Social Cost - Tourism takes a toll on the resources
(especially natural resources)
 Intermediary Conflicts

CHALLENGES
3. India Specific Challenges
Some challenges facing Indian Tourism Industry are
uniquely
India specific, like
 Sensitizing the diverse Human Resources
 Collapsing Hotel Infrastructure
 High Operating Costs
 Transportation Chaos
 Manpower woes

Strategies to enhance the Marketing
of Services in Tourism & Travel
Industry

STRATEGIES
 The planning framework of Indian Tourism Industry
can be redesigned
 Effective Market Research to ‘Understand Tourists’
 Restructuring ‘Organization Structure’ and
‘Planning Framework’
 Public Private Partnership is critical for enhancing
competitiveness

STRATEGIES
 Effective destination management through encouraging
business operators for adopting higher standards.
 Sensitize the Community for sustainable
competitiveness
 Effective deployment of ‘Human Resources’
 ‘Private-Public Partnership’ for development of world
class academic, training and development infrastructure
can be a remedy

Introduction to tourism industry

Introduction to tourism industry

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Introduction to tourism industry