INDUSTRY ANALYSISON

TOURISM INDUSTRY

SUBMITTED BY: GAYATHRI

Tourism Industry…Travel for

Recreational, leisure or business purposes.

Popular Global Leisure activity

Major source of income for many countries

Tourism Industry ClassificationsMedical Tourism

Wild life Tourism

Adventure Tourism

Pilgrimage Tourism

Eco tourism

Top 5 Travel Companies in India

Top 5 Key Players in Indian Tourism Industry

Market share of the key players

MICHAEL E PORTERBorn on 1947

Professor in Harvard Business School.

Introduced Porter’s 5 Forces Model.

Written 18 books & over 125 articles.

Porter’s 5 Forces Model

Threat of New EntranceThreat of new entrance in

tourism industry is Medium to High

Major determinants of the market environment can be changed by new entrants.

Online Channels are growing rapid at rate.

Govt. Regulations

Threat of Existing RivalryOrganized players would barely

have 40-50% of market place.

Most of organized players are present in metros & mini-metros

As the growth of tourism industry is growing faster the threat of existing rivalry is Medium to High.

Bargaining Power of BuyersBargaining power of buyers is

Medium to High.

Switching costs for buyers is not high as Brand Loyalty is low.

Better facilities are available in other countries.

Luxury segment is brand conscious to and willing to pay a premium for great experience and service quality

Bargaining Power of SuppliersPower of suppliers in Indian

tourism industry includes airlines, hotels, transportations, travel agency etc.

The bargaining power depends on the product which are supplied by suppliers. Thus bargaining power is Medium to Low.

Threat of SubstitutesAlternative products which gives

competition are less.

Other entertainment purposes like amusement parks, creation of relaxation within boundaries.

Therefore threat of substitute is Medium to Low.

Industry AttractivenessTourism brings in large amounts of

income in payment of goods & services.

According to World Tourism Organization estimates, India will lead in South Asia with 8.9 million arrivals by 2020.

India has been emerged as the 2nd fastest growing(8.8%) tourism economy in the world over 2005-14 according to the World Travel & Tourism.

SUMMARYThreat of New Entrants – Medium to

High.

Threat of existing Rivalry- Medium to High.

Bargaining power of Buyers – Medium to High.

Bargaining power of Suppliers – Medium to Low.

Threat of Substitutes – Medium to Low.

THANKYOU…