tourism marketing india 2

8/15/2019 Tourism Marketing India 2

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INTRODUCTION

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INTRODUCTION

From Gandhi to the Ganges, Bollywood to the Taj Mahal, India is a land of mystique,

contrasts and contradictions. While it aeals to the romantic imagination, it is a

country where tourism has huge otential to !e unleashed. The means to achie"e this

goal is tourism mar#eting in India.

The mission of tourism mar#eting in India should !e to romote India as a desired

destination to the tra"eler, not simly as an attracti"e "acation !ut as an e$erience to

cherish.

From the earliest historical eriods, tra"el has !een a fascinating acti"ity for eole all

o"er the world, !e it for e$loration, trade or leasure. %owadays, tra"el has !ecome a

way of life. &wing to industrial de"eloment, e"olution in transortation and rise in

disosa!le income, the urge to tra"el has !ecome irresisti!le. More so in the face of

increasing glo!ali'ation.

Tourism is a human acti"ity of great significance. It in"ol"es a temorary !rea# from

normal routine to engage with e$eriences that contrasts with e"eryday life, with the

mundane. &"er the years, the definition of tourism has undergone a change along with

the historical changes. (ccording to )im'i#er and *raf tourism is + the sum of the

phenomena and relationships arising from the travel and stay of non–residents, in so

far as it does not lead to permanent residence and is not connected to any earning

activity”.

With the increasing growth of tourism and its associated oortunities, the concet of

marketing tourism in India assumes a lot of significance.


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In ma#ing an attemt to e$lore the otential of mar#eting tourism in India, the reort

focuses on the analysis of the Indian tourism sector while drawing arallels from other

arts of the world. ( few mar#eting strategies to mar#et tourism in India ha"e !een

discussed. The reort also discusses inno"ati"e aroaches to mar#eting tourism li#e

rural tourism mar#eting.

The scoe of the reort includes go"ernmental role, international organi'ations, tyes

of tourism India can romote and oortunities as well as the challenges associated

with them.

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THE INDIAN SCENARIO


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THE INDIAN SCENARIO

Tourism has major otential for India at our stage of transformation and de"eloment.

It uts equal "alue on our untouched natural resources and culture. (s India oened her

gates towards a more oen economy, tourism has e"ol"ed into a highly structured

industry with the otential to earn immense re"enues. Being in the ser"ices industry, it

offers high "alue/added mar#ets with considera!le returns on in"estments. Tourism has

a multilier effect on eole in"ol"ed in hositality, transortation, tra"el agencies,

rorietors of tourist !usiness and entrereneurs suorting the tourism industry.

Indias tourism industry has also recorded henomenal growth. The rate of international

arri"als in India in recent years has !een to the tune of a!out 1 la#h arri"als er year.

The unrecedented growth in tourism in India has made it the second largest foreign

exchange earner. This is not surrising since India ossesses a whole range of

attractions normally sought !y tourists and which includes natural attractions li#e

landscaes, scenic !eauty, mountains, wildlife, !eaches, major ri"ers and manmade

attractions such as monuments, forts, alaces and ha"elis. )owe"er, in glo!al terms,

insite of such attractions, tourist arri"als in India are a mere !"# of the $orld

arri%als. 2eceits are similarly low, just a !&# of the $orld recei'ts. We are still

quite far from the target of 30 la#h tourist arri"als er year.

(ost 'o'ular destination

Ra)asthan has emerged in the last decade as one of the fa"orite tourist destinations for

domestic and foreign tourists ali#e.

The state recei"es 400,000 foreign tourists and 5,000,000 domestic tourists e"ery year.

The world famous 6golden triangle6, comrising Delhi, Agra and *ai'ur, has ut

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8aiur on the world tourism ma. (lmost 40 ercent of foreign tourists "isiting India

"isit these laces. 2ajasthan has registered record tourist arri"als in the first half of

-007 of o"er 700,000 foreign tourists and 3.3 million domestic "isitors. This has

effecti"ely meant a 4 ercent rise in foreign tourists and ercent increase in

domestic "isitors to the state o"er the re"ious year.

9ome additional statistics are resented !elow in order to reinforce the fact that Indian

tourism is one major sector to loo# out for in"estors and entrereneurs ali#e.

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+I(ITATION O, STUD-

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+I(ITATIONS O, STUD-

• The data is not a"aila!le on the net :statistical;.

• The questionnaires made were artificially filled.

• The customers showed fa#e resonse.

• There was no originality.

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CASE STUD-


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The world of lanes, shis and hotels is changing, and its safe to say that it has !een

going through a slight !it of an uhill clim!. First came the GF=, where consumers

tightened urse strings and #et "acationing to a wee#end away at >os farm. Then

came the emergence of online sites that comared rices, offered great deals and

changed the whole industry ? tra"el agents were no longer a tourism ro"iders

gateway to consumers, the internet was@

(s the industry looed online as a #ey communication tool to reach consumers, !rands

!egan in"esting in integrated camaigns that included a range of media channels.

(s Aa"id Brown, managing director of AAB 9ydney :the agency !ehind the new

Theres %othing Ci#e (ustralia camaign; saidD 9elling a country as di"erse as

(ustralia to the rest of the world is not just a!out creating one ad or one camaign

anymoreE our goal is to creati"e a latform that is strong and fle$i!le enough to host a

num!er of different camaigns and mar#eting initiati"esE

Coo#ing at the se"en tourism case studies we ha"e here, it seems li#e other #ey layers

in the tourism mar#et are following suit, and gaining huge rewards from this

di"ersification.

From >& =ruises i>ad a that saw o"er -000 downloads in just one month to

Mir"ac hotels a jum in online re"enue of o"er 00H than#s to effecti"e 9& ? while

digital was one of root causes that demanded a change in mar#eting strategies, it is also

ro"ing to !e a !reath of fresh air for the tourism economy.

This case study discusses the inno"ati"e (tithi Ae"o Bha"ah :(AB; rogram initiated

!y the Ministry of Tourism :MoT; in India. This rogram was launched in -003 with

the o!jecti"e of de"eloing tourism in India as art of MoTJs JIncredi!le India@J

camaign.

Though the JIncredi!le India@J camaign was successful in increasing the num!er of

tourists, the e$erience of tourists in India left much to !e desired due to the

incon"enience caused !y "arious touts, guides, and tour oerators.

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The (AB rogram was targeted at "arious sta#eholders such as ta$i dri"ers, tourist

guides, small tourist oerators, and the general u!lic.

Mar#eting Management =ase 9tudies K =ase 9tudy in Management, &erations,

9trategies, Mar#eting Management, =ase 9tudies

It aimed to change their attitude and !eha"ior toward foreign tourists !y stressing on

the asect that a guest has !een held in high esteem in India since ancient times. This

case study discusses the #ey comonents of the (AB rogram and the stes ta#en !y

the MoT to roll out the (AB rogram. The case study also co"ers the mass media social

awareness camaigns that were initiated !y the MoT as art of the (AB rogram.

Issues.

This case will hel the learner to

L nderstand the issues and constraints faced !y a u!lic sector

organi'ationNgo"ernmental organi'ation in lanning and imlementing an inno"ati"e

rogram

L nderstand the issues in Tourism :destination; de"eloment and mar#eting and how

the Indian Tourism ministry addressed these issues

L nderstand the issues in social mar#eting and how the Indian Tourism ministry

formulated and imlemented an inno"ati"e social awareness rogram

L nderstand the challenges faced !y a u!lic sector organi'ationNgo"ernmental

organi'ation in sustaining an inno"ati"e rogram

This case is intended for use in Master in >u!lic 9ector Management :M>9M; le"el

rograms as art of the >u!lic 9ector Inno"ation course. This case can also !e

effecti"ely used as art of the 9er"ices Mar#eting, Tourism Mar#eting and 9ocial

Mar#eting, Mar#eting =ommunication courses. The case can also !e effecti"ely used in

Faculty Ae"eloment >rograms and JTrain the TrainerJ rograms.

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&"er the years, tourism has emerged as a major segment of Indian economy

contri!uting significantly to the foreign e$change earnings which ha"e increased from

2s. - crores in 157/53 to more than 2s.0000 crores !y -00. In the year -000, 3

million tourists "isited India. The highest num!er of foreign tourists i.e. 7H "isited

India for leasure, -3H for !usiness and H for meeting friends and relati"es. The

tourists !elow the age of 0 years are redominantly leasure see#ers. The ride of

lace continues to !e the Golden Triangle i.e. Aelhi, (gra, 8aiur circuit.

IndiaJs "isi!ility on the world tourist ma has just got !etter. The World Tra"el and

Tourism =ouncil :WTT=; selected %ew Aelhi to host its fifth Glo!al Tra"el and

Tourism 9ummit in (ril -003.

India has the otential to !ecome the num!er one tourist destination in the world with

the demand gro$ing at 2!2 'er cent 'er annum, the WTT= has redicted. In India,

the 3o%ernment s'ending on tourism is 3rd in the world at 0.1 er cent. =hina

sends .< of its !udget on tourism and rates fifth in recei"ing the largest tourist

arri"als :.- million; after France, .9., 9ain and Italy.

HOS4ITA+IT- SECTOR

With the surt in tourism, it is only natural that Indian hositality is witnessing a !oom.

arlier, to Indian comanies were restricted to the major towns and cities. But today

the scenario has changed. The to comanies are setting u hotels in smaller towns and

cities. 9e"eral foreign chains ha"e entered the Indian mar#et. The result is that the

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quality of ser"ice has imro"ed. The o"erseas layers ha"e !rought in efficient systems

and ser"ice standards from uroe and the 9. =ometition has forced Indian hotel

grous to imro"e their standards.

9ome of the recent ex'ansions announced !y the major layers are listed !elowD

The ITC 5elcomgrou' has in"ested 2s ,300 crore and will further in"est 2s

,000/,300 crore with thrust on suer delu$e lu$ury roerties in the #ey metros.

The +eela 4alaces and Resorts lans to in"est o"er 2s 100 crore in three more

hotels in daiur, =hennai and )ydera!ad.

The 3rand 3rou' of Hotels has announced a 2s ,000 crore e$ansion ta#ing its

resence to 3 from the current se"en.

5A-S TO (AR6ET TOURIS(

India recei"es three million foreign tourists a year while a small country li#e Thailand,

with much more limited geograhic and historical attraction, recei"es more than three

times that num!er and they lan to dou!le it to -0 million tourists in the ne$t decade.


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tourists than %eal does, esecially now that %eal is in trou!le, !ut %eal is much

!etter organi'ed for tre##ers and mountain/lo"ers than ttaranchal or )imachal

>radesh.

The 8aanese and =hinese will willingly do the Buddhist circuit in much greater

num!ers, if we can organi'e a leasant e$erience for them in Bihar. Then, our colonial

history resents its own oortunities.

Fortunately, we as a nation ha"e !ecome confident enough in our own standing and

achie"ements that we can rise a!o"e anti/colonial feelings and tal# a!out the colonial

eriod without inhi!itions or resentment.

(lthough the Mughals colonised India and e"en con"erted our eole to their religion

four centuries ago, today we ta#e ride in showing tourists monuments li#e the Taj

Mahal as the ride of India.

With the assage of time, the same is haening to the monuments and cities !uilt !y

our uroean colonisers // the >ortuguese, the Autch, the French, and the British.

For a uroean tourist it is often more interesting to see remnants of the ad"enturers

from their own countries. "en for the (mericans, it is easier to relate to such sites as

most of them are descendants of uroeans.

Fortunately, we ha"e se"eral such monuments and sites !earing witness to the history

of our uroean colonisers. We should use them to mar#et our country.

Cets ta#e the case of >ondicherry. It has se"eral French remnants, including the use of

the French language. In France schoolchildren are still taught a!out the French emire

in India, which consisted of >ondicherry, Mahe, *arai##al, and =handannagar.

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In the hositality and tourism industry, 6ac#aging6 is the rocess of com!ining two or

more related and comlementary offerings into a single/rice offering. ( ac#age may

include a wide "ariety of ser"ices such as lodging, meals, entrance fees to attractions,

entertainment, transortation costs :air, auto, train, ca! or !us;, guide ser"ices, or other

similar acti"ities.

>ac#aging can also create a "ariety of !enefits for articiating !usinesses.

5h7 4ackages Are 4o'ular9

Tra"el ac#ages ha"e !ecome increasingly oular o"er the years. They are attracti"e

!ecause they !enefit !oth the customer and articiating !usinessesP ac#aging

ro"ides con"enience and "alue to the customer, and added re"enue for articiating

!usinesses.

Benefits to the Customer:

>ac#aging can !e an effecti"e mar#eting tool to ro"ide se"eral customer !enefits.

These may includeD

(!ility to !udget for tris. >ac#ages include most of the comonents a customer

must ay for during a tri. The customer ays at one time and has a good idea of the

triJs total cost.

Increased con"enience. Tris can !e time consuming and difficult to arrange.

9e"eral telehone calls and letters may !e required to arrange for tic#ets,

accommodations, reser"ations, and other comonents of a tri.

Greater economy. Businesses that ac#age can frequently urchase tic#ets, meals,

and other ac#age comonents at wholesale rices.

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>oular rograms and acti"ities. Oisitors and tra"elers are often unfamiliar with

many of the acti"ities and attractions in an areaD a ac#age can hel customers find

them easily.

9eciali'ed interests. >ac#aging ro"ides a unique oortunity to design

comonents of a ac#age for seciali'ed interests.

>ac#aging can !e used !y !usinesses to hel imro"e rofita!ility and !uild

customer "olume.

9mooth !usiness atterns. se ac#aging during low demand eriods to add

attracti"e features to the !usinessJs ser"ice or roduct, thus generating additional

!usiness.

8oint mar#eting oortunities. >ac#aging can allow the !usiness to reduce

mar#eting costs or start a new rogram one could not normally afford !y joining

with one or more !usinesses to conduct a mar#eting or ad"ertising rogram.

Imro"ed target mar#eting. >ac#aging can !e an effecti"e tool to tailor tourism and

tra"el roducts for secific target mar#ets.

Greater holiday wee#end !usiness. >ac#aging can !e used to highlight secial

holiday wee#ends !y de"eloing ser"ices aroriate to the theme of the wee#end.

nique recurring e"ents. Businesses can create their own e"ents that can occur

throughout the year. "ents could !e tournaments such as chess or !ridge or crime

re/enactments that let guests do the detecti"e wor#.


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2edirected traffic to lesser/#nown attractions. Airecting "isitors to often o"erloo#ed

attractions can hel in two waysD hea"ily "isited attractions may !e offered some

relief, while newly disco"ered attractions may thri"e and roser.

Items to Consider in Developing a Package:

Before de"eloing a tourism ac#aging rogram, the !usiness should de"ise a

mar#eting lan through ractical mar#eting research. The !usiness owner should as#

himNherself the following questionsD

(re you willing to do mar#et research to determine who your customers are and

what they wantQ

What are the otential attractions, !usinesses, or mar#eting ser"ice firms that could

ro"ide a art of the ac#ageQ

What are otential mar#eting and romotional networ#s that will hel sread the

word a!out your roductQ

Will the hysical aearance and ser"ice s#ills of your !usiness match the target

audienceQ

Aoes your !usiness ha"e the a!ility to manage and ser"ice the customers you

generate through your ac#aging rogramQ

(re you reared for a ris#Q Because you will !e including customer ser"ice

acti"ities that are not under your direct control, you will !e required to de"elo

formal, written agreements !etween the cooerating !usinesses.

Elements of a Successful Package:

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Include attractions or demand generators.

>ro"ide "alue to the customer.

Be well lanned and coordinated.

&ffer consistent quality and comati!ility among elements.

>ro"ide a distincti"e customer !enefit.

=o"er all the details.

Generate a rofit.

Rural Tourism. Strategies for Marketing Rural Tourism in India

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India, traditionally, has !een a long haul tourist destination and ro"ision of rural

tourist destinations in its !as#et of destinations will go a long way in showcasing and

mar#eting India in a !etter ersecti"e. Further, tourism can also !e sold as ost/

con"ention destination not only for the con"entions held in India !ut also for

neigh!ouring countries.

(s tourism !ecomes esta!lished as an economic acti"ity, mar#eting strategies

concentrate on increasing the "olume of tourists. This, at times, creates a host of

unforeseen consequences. Thus, it is necessary that the o!jecti"es of tourism

de"eloment in relation to a region, city or :a rural area; leisure sot !e clearly stated.

In fact, the de"elomental role of mar#eting has to !e #et in mind while mar#eting

regions, cities or leisure sots:a rural area;. This de"elomental role is to !e further

strengthened !y socially resonsi!le mar#eting.

When it comes to cities and leisure sotsNheritage sites / articularly in the rural areas,

mar#eting !ecomes a major ro!lem. This is !ecause the local !odies are either not

aware a!out the de"elomental role of tourism or are constrained !y their own olitics

or lac# of funds. Before we go further in dealing with these asects it must !e noted

that in the mar#eting of a destination :region, city or leisure sots; we should consider

the following asectsD

(ttractions / li#e romotion of rural tourism around a heritage site

Infrastructure :accommodation, cuisine, hygiene, clean water :!asic amenities etc.;

(ccessi!ility :roads, means of transortation;/I gather should not !e too far from

railhead or airortD -/-N- hr.

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=arrying caacity of the destination,

n"ironmental issues :>ollution, co/fragility, etc.;

9afety, law and order situation :for !oth the local oulation as well as tourists;,

etc.

In India we find different destinations in different stages of what is termed as the

'roduct life c7cle! For e$amle, a region li#e Goa, a city li#e 9himla or a leisure sot

li#e the Bad#al Ca#e ha"e reached a maturity le"el. They no more require romotion

and ha"e similarly e$hausted their carrying caacity :infrastructural, en"ironmental or

social imacts;. Their ro!lem on the contrary is of retaining their image, chec#ing the

decline and doing away with the negati"e imacts of tourism. In mar#eting jargon what

they require is internal mar#eting, roduct imro"ement, chec#ing the decline, roer

maintenance, etc.

&n the contrary loo# at a region li#e *umaun which is struggling hard to romote its

attractions in different cities :other than %ainital; and rural areas and de"elo its

tourism roducts. If roer questions are not osed and answered, the lanners and

de"eloers !lindly imitate outside concets and models of de"eloment without ta#ing

into consideration the local needs, customs, attitudes and constraints. In such a situation

the destination may not ta#e off at all or the entire de"elomental in"estment may go

waste. The questions to !e answered and the issues to !e resol"ed would !e many !ut

we ta#e a few here for considerationD

. What tye of attractions :nature, ad"enture or cultural etc.; within the region ha"e to

!e de"eloed into tourism ac#agesQ

-. Whether these attractions ha"e to !e ac#aged and romoted as a mi$ or as searate

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attractionsQ

. Ao we ha"e a mar#et for themQ

7. What tye of infrastructure is to !e createdQ

3. Is the local oulation receti"e to tourismQ

4. If the destination is highly seasonal, should huge in"estments !e made or :we; one

should de"elo alternate and su!sidiary accommodationQ

5. )ow to ensure that the ecology and en"ironment at the destination are not damaged

!y tourismQ


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%ot necessarily though romoting "egetarianism can also !e a 9>

n"ironment friendly

Freshness in food ingredients when rocured locally / may !e organically culti"ated

Cocal crafts and cottage industry can ro"ide unique shoing e$erience

:ine$ensi"e;

For in"estors also, romotion of rural tourism in"estment could !ring in higher returns

on comarati"ely low in"estments.

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,ACTS AND ,INDIN3

Indian Tra"el Tourism Total Aemand Indian T T Total Aemand

:110 constant 9R !illion; :cum. real growth, H;

Indian M#t 9hare of 9.(sia Total Aemand 9.(sia T T Total Aemand

:cum. real growth, H;

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Indian M#t 9hare of World Total Aemand World T T Total Aemand

:cum. real growth, H;

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CONC+USION

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CONC+USION

The Tenth 3/year lan :-00-/-005; of the go"ernment treats tourism as a major engine

of economic growth and emloyment generation. nder the >lan, total resources of

2s-1 !illion were allocated towards tourism. Gi"en the strong emhasis of the

go"ernment on the romotion of tourism and imro"ement of the tourist infrastructure

and the "ast untaed otential of India as a tourist destination, there is little dou!t that

future rosects for Indian tourism are !right.

Tourism is erhas the most under rated sector in India which can !e great dri"er of

economic growth in and generate millions of jo!s as well. India is a country with the

highest otential as far as the tourism sector is concerned.

)owe"er, the challenge is to effecti"ely mar#et tourism in India and le"erage on the

otentials of the sector. The mar#eters ha"e to get their mar#eting fundamentals in

lace to caitali'e on this romising sector. There are lessons to !e learnt form effecti"e

tourism mar#eting efforts !y Indian states li#e *erala as well as foreign countries li#e

Malaysia, France and )ong *ong. These learnings ha"e to imlemented with the

suort of the go"ernment and the determination of entrereneurs to turn India into a

great tourist destination as ma#e tourism one of the most effecti"e dri"ers of the Indian

economy.

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:I:+IO3RA4H-

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:I:+IO3RA4H-

www.indiadata.com

www.tourismstats.com

www.world/tourism.org

www.sa!re/holdings.com

www.hotels.com

www.e$ediainc.com

www.indiatourism.com

www.wi#iedia.org

www.incredi!leindia.org

International Tourism Management/9agar >u!lications

conomic Times
http://www.indiadata.com/http://www.tourismstats.com/http://www.world-tourism.org/http://www.sabre-holdings.com/http://www.hotels.com/http://www.expediainc.com/http://www.indiatourism.com/http://www.wikipedia.org/http://www.incredibleindia.org/http://www.indiadata.com/http://www.tourismstats.com/http://www.world-tourism.org/http://www.sabre-holdings.com/http://www.hotels.com/http://www.expediainc.com/http://www.indiatourism.com/http://www.wikipedia.org/http://www.incredibleindia.org/

tourism marketing india 2

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