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IIMK Part VI – Tourism Marketing and Promotion IIML

Conference on Tourism in India – Challenges Ahead, 15-17 May 2008, IIMK 219

Number of Tourists On the Bases of occupation

48%

48%

4%

Businessman

Employee

Housewife

No. of Tourists Between Different Education

Groups

48%

52%

UG

PG

Table 2: Distribution of sample units by education

Education Number of sample tourists

UG 48

PG 52

Total 100

Table 3: Distribution of sample units by sex

Sex Number of sample tourists

Male 68

Female 32

Total 100

Number of Tourists On The Bases of Sex

68%

32%

Male

Female

Table 4: Distribution of sample units by occupation

Occupation Number of sample tourists

Businessman 48

Employee 48

Housewife 04

Total 100

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Table 5: Distribution of sample units by Social Status

Social Status Number of sample tourists Percent

OC 33 66.0

BC 17 34.0

Total 50 100

Number of TouristsOn The Bases of Social Status

66%

34%

OC

BC

Table 6: Distribution of sample units by nature of Motivators to tourism

Perception of touristsS.No. Motivators of Tourism

Yes No

Total

1. Increase in income 88 12 100

2. Leisure 96 4 100

3. Propensity to Pleasure 100 0 100

4. More occasions for Social Gathering 76 24 100

5. Influence of Western Culture 30 70 100

6. Promotion in Employment 44 56 100

7. Cost effective transport system 82 18 100

8. Time saving transport system 100 0 100

Increase in income

88%

12%

Motivators

Non-Motivators

Leisure

96%

4%

Motivators

Non-Motivators

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Propensity to Pleasure

100%

0%Motivators

Non-Motivators

More occasions for Social Gathering

76%

24%

Motivators

Non-Motivators

Influence of Western Culture

30%

70%

Motivators

Non-Motivators

Promotion in Employment

44%

56%

Motivators

Non-Motivators

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Cost effective transport system

82%

18%

Motivators

Non-Motivators

Time saving transport system

100%

0%

Motivators

Non-Motivators

Table 7: The perceptions of tourists towards tours with reference to age

Perception of tourists TotalPerception towards

packages tours 25-35Yrs 36-45Yrs Above 45 Yrs

NO NOS 4 14 18

% 19.0% 73.7% 36.0%

YES NOS 17 5 2 32

% 81.0% 26.2% 100% 64.0%

TOTAL NOS 21 19 10 50

% 100% 100% 100% 100%Chi-sq=19.955(a)

FindingsThe major findings of the study are given below:

1. The distribution of sample units by age shows that a majority of sample tourists (80%) belong to the

age of less than 45 years (refer table1).

2. The distribution of sample units by educational status explains that the sample base is predominant

with educational status of post graduation level (refer table-2).3. The gender wise distribution of sample units reveals that the number of male tourists exceeds the

female sample tourists (refer table-3)4. The occupation of sample units is largely distributed between business (48%) and employees (48%)

(refer table-4)5. The distribution of sample units by social status demonstrates that a majority of sample tourists belong

to forward community (66%) followed by sample units who belong to backward community (34%)

(refer table-5)6. An analysis of motivators of tourism indicates that the propensity to pleasure and time saving transport

system have been found to be the most driving motivator of tourism (110%) followed by leisure (96%)

and increase in income (88%) on the order. The least influencing motivators of tourism have been

found to be the influence of western culture and promotion in employment (refer table-6)

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7. The rejection of null hypothesis (level of significance =5 percent and with df=2) about the cross

relationship between age and preference towards tours indicates that these two variables are said to be

statistically dependent variables (refer table-7)8. The relationship between educational status and preferences towards tours is said to be statistically

dependent variables.

9.

A study of the cross relationship between sex of tourists, their preferences towards tours and testing thenull hypothesis that these two variables are statistically independent (level of significance=5 percentand df=1) reveals that the null hypothesis is rejected. It implies that the age of tourists influence their

preferences towards tours.

10. The rejection of null hypothesis (level of significance =5percent and df=1) with regards to the

relationship between the variable namely occupational status of the tourists and their preferencestowards tours, establishes the fact that these two variables are statistically dependent.

11. The relationship between the social status of tourists and their preference towards tours and tests of the

null hypothesis has proved that these two variables are statistically independent.12. The coefficient of correlation has been estimated and found it to be significant at 0.01 level (2- tailed)

between preferences towards tours and educational status (0.447), sex (0.514), and occupational status

(0.443) of tourists respectively.

Marketing Strategies:

As tourism is a highly compettive industry; the traveler has a wide range of choices and looks for goodvalue for money. The lack of quality infrastructure, uncompetitive rates, indifferent or poor product quality,

difficulty in getting access to information on travel and tourist destinations, untrained service providers

have an enormously negative effect on the competitiveness of the tourism product. For all these it isnecessary for tourism industry to formulate marketing strategies which should include the overall business

objectives, an assessment of the market environment; a business/community profile market identification

(segmentation), the marketing objectives for each segment; the best combination of the 4 Ps (product, price, place, promotion) for each segment; an implementation plan the marketing budget and a method for

evaluation and change. Some of the strategies that tourism industry adopts are:

1. Procurement: Tourism sector needs to understand how procurement decisions are made. This includesidentifying what types of tour operators, tour agents and guides are required and when and how

companies can access procurement opportunities, how to gather procurement data developing and open

procurement process.2. Skilled Man Power: Tourism has taken initiative to markets beyond the metros to foster skilled

manpower. The rapidly growing tourism sector in India is faced with an acute shortage of talent.

Hence, tourism sector is focused at developing talent by grooming entry-level candidates and

enhancing skills of existing professionals. For this, they provide training to the manpower related to both tourism and non tourism sector.

3. Product Differentiation: Services are sold both as final service product and as intermediate inputs. It is

the major differentiating factor for the tourism. Since a tourist are spending lot of money for leisure so

they are interested to gain benefit from the service they are getting thus it becomes necessary for the

tourism industry to differentiate its service from the others. Informational forums and educationalworkshops will help identify market-ready or near market-ready products. In the long term, it is

necessary for the tourism industry to develop new product. This does not mean that tourist industry

will have to abandon their current programs, but it will require them to continually improve their

existing programs and introduce new programming or organize new events to draw tourists. Decisionson what facilities, programs and services to provide should be based on the needs and desires of the

target market(s). They should not be based on the preferences of the owner/manager or necessarily on

what the competition is providing. Recognize that a tourism experience includes five elements: trip planning and anticipation; travel to the site/area; the experience at the site; travel back home; and

recollection. Businesses should look for ways to enhance the quality of the overall experience during

all phases of the trip. This could be accomplished by providing trip-planning packages, which include

maps, attractions on route and on site, and information regarding lodging, food and quality souvenirsand mementos. Tourism businesses should also view their service/product in generic terms. Thinking

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of products/services in this manner helps focus more attention on the experiences desired by customers

and also the facilities, programs and services that will produce those experiences.

4. Strengthen distribution: Distribution is the key to the quality of service. Tourism had made great progress in the distribution of services. Strengthen distribution provide comprehensive services and the

solution to the customers.

5.

Proper Communication: Communication internal and external must be far-reaching and speedy. Goodcommunication is vital in tourism. Tourism can retain existing customers, attract new customer,increase brand awareness, built business, reduce their perceived risk and gain the trust of their

customers through promotional campaigns. The marketers should promote by means of appropriate

media (radio, television, print) aimed at specific markets. They need to develop and maintain websites

specific to tourism.6. Follow-ups and Feedbacks: Follow-up and feedback should be taken care in the tourism sector and

with the growing competition; the customer satisfaction should be given utmost priority. After

execution of service, the service providers (tourism industry) should attain the feedback of the servicehe has rendered so that any improvement required in the future can be attended too.

7. Create a coordinating body for tourism development: Many times stakeholders are unclear as to who

is, or should be, responsible for tourism development. A number of stakeholders feel the state

government should take the lead; some feel responsibility for tourism development should be left to

Indian government; others feel it should be a shared effort. The lack of a defined coordinating body

inhibits information sharing and development. It is necessary that there should be a support thatinvolves the variety of stakeholders in the development of tourism within a state. In order to create a

heritage for tourism, a defined body is required to oversee marketing and development, which should

include the professional and community-based cultural community, education, tourism and non-tourism business sectors.

8. Interaction between tourism and non-tourism business sectors: Currently, there is limited formal

interaction, understanding and appreciation among the tourism and non-tourism business sectors liketransportation (airlines, railways and roadways), hotels and restaurants. In addition, tourism industries

are not aware of the funding, services and other resources available to them. Forums or educational/

informational sessions are needed to assist in developing better understanding.

9. Enhance local awareness of offerings: The majority of tourists to India are visiting friends or relativeswho live here. The local population has an important role to play in ensuring the events, facilities and

attractions in the country that are promoted to these tourists. Currently, there is a perception amongst

stakeholders that residents lack awareness or have negative perceptions of what is available in thecountry. One aspect of the tourism marketing campaign should be aimed at enhancing pride,appreciation and awareness of India’s cultural offerings, locally, in order to ensure residents participate

in promoting Indian attributes to visitors.

10. Develop new partnerships and packages for tourism: Increased understanding will generateappreciation and interest in collaborative activity that can benefit all parties involved. Partnerships

should be encouraged between hoteliers, restaurants, retailers and cultural groups. New packages such

as museum tours coupled with meals at local establishments, theatre packages with

accommodations/meals and a package of festival tickets are just some of the possibilities.

11. Conduct research specific to the tourism sector: Research should include quantitative information suchas attendance, origin of respondents, spending patterns and demographics, as well as qualitative

information such as visitor satisfaction, accessibility and programming desires. This results in assisting

the development of presentations that can be made to non-tourism sectors. In addition, it results in

informed decision-making on operating, program and capital funding, infrastructure improvements andtourism initiatives to grow.

12. Enhance funding for tourism development: With the evolution of the tourism strategy, there is an

opportunity to diversify and expand funding. Though it is not easy to determine how much newfunding might be needed in the long term, however, the majority of stakeholders feels strongly that

infrastructure and tourism marketing require more stable and sustained funding in the future.

13. Location and Accessibility: Too many tourism businesses and communities fail to recognize their role

in improving travel to and from their areas. They focus instead on servicing the customer once theyarrive at the site/community. A bad experience getting to or leaving a tourism site can adversely affect

a person's travel experience. Ways to help prevent this include:

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(1) Providing directions and maps;

(2) Providing estimates of travel time and distances from different market areas;

(3) recommending direct and scenic travel routes;(4) Identifying attractions and support facilities along different travel routes; and

(5) informing potential customers of alternative travel methods to the area such as airlines and

railroads.Potential businesses should also carefully assess alternative locations for:(1) Distance and accessibility to target markets;

(2) Location of competitors with respect to target markets;

(3) Modes of travel serving the area; and

(4) Other attractions and activities that might induce travel to the area.14. Pricing: When setting prices it is important to take into consideration all of the following:

(1) Business and target market objectives;

(2) The full cost of producing, delivering and promoting the product;(3) The willingness of the target market to pay for the service

(4) Prices charged by competitors offering a similar product/service to the same target market(s);

(5) The availability and prices of substitute products/services (for example, campgrounds, motels, and

bed and breakfast are all substitutes for lodging);

(6) The possibility of stimulating high profit products/services (such as boats) by offering related

services (such as maintenance) at or below cost. When establishing prices, tourism businessesshould give attention to pricing strategies which may encourage off season and non-peak period

sales, longer stays, group business, and the sale of package plans (combination of room, meals,

and recreational facilities).15. Quality Control: A quality control program which focuses on improving both the technical quality (the

standards associated with what the customer receives) and the functional quality (the standards

associated with how the customer receives the service) should be carried on from time to time.

Conclusion

There is a wide scope for underdeveloped countries like India to promote tourism. If India overcomes the

challenges by enriching its present strategies, it will emerge as a best tourist spot and will yield maximum

foreign exchange to our country. A world-class destination requires professional planning to preventhaphazard, uncontrolled growth, strict architectural controls, and infrastructure. It requires improvement of

entry points and appropriate facilitation services. It is necessary that India should balance between security

considerations and the need for tourism development. Training programmes are required not only for hotel

managers but also for tourist guides, taxi-drivers, staff at eating places, porters etc., as the manner in which

they conduct themselves affects the tourist’s experience of the country. Important do’s and dont’s in termsof a code of ethics need to be inculcated among the service providers. So as to conclude the ‘marketing

mantra’ for the Department of Tourism is to position India as a global brand to take advantage of the

burgeoning global travel and trade and the vast untapped potential of India as a destination.

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218 225+Bhawna+Jaiswal