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Topic: Marketing mix of Indian travel and tourism industry

International School Of Informatics And Management




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I take this opportunity to thank my guide Mrs. Sumedha shandilya Madam who apart from being a constant source of inspiration and encouragement also provided me with her timely help and scholarly ideas in giving final shape to this report. I also thank the college library and Computer lab of I.S.I.M. which provided me many books, round the clock internet facility to satisfy my thirst of knowledge related to my subject matter. I also express my heartily gratitude to all my friends for their kind support. It was due to their valuable guidance and support that helped me to complete the report with a lot of learning.



The tourism and recreation industry is increasingly recognized as an important economic, environmental and social force, which can bring both benefit and adversity. A key element of a successful tourism industry is the ability to recognize and deal with change across a wide range of behavioral and technological factors and the way they interact.

THE NEW TOURISM AND LEISURE ENVIRONMENT Old Old travel travel patterns patterns Established Established destinations destinations Old Old products products Fragmented Fragmented tourism tourism industry industry Passive Passive consumers consumers Mass Mass markets markets Mass Mass marketing marketing

New New travel travel patterns patterns Emerging Emerging destinations destinations New New products products Economic Economic development development tool tool Involved Involved participants participants Speciality Speciality markets markets Direct Direct customer customer communications communications



India has vast bounties of nature Majestic mountains, beautiful beaches, wonderful wildlife and enchanting bird sanctuaries. It has great treasures of art, architecture and philosophical thought It has 572 nature endowed areas 89 national parks 483 wildlife sanctuaries 3606 protected monuments



The Indian tourism industry is built on the backbone of Government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry; the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government. The major reason as to why the tourist visits India is for the vast and rich heritage that the country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges a high rates of taxes on the luxury and the star category hotels and this has always been a cause of disagreement between the hotel associations and the Government.


The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world.

Since India is concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has lead to the tourism boom the world over and India has been no exception.


Tourism was always looked upon as something that always leads to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the risk of that places loosing its identity. Those places that have been able to strike a balance between their own culture and the demands of the international tourist have profited handsomely. The examples are Kerala and Rajasthan. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them. Even people themselves have started travelling. In addition, tourism as a form of recreation has really caught on. People are willing to travel to a place that is out of way and exotic. When previously travelling on a holiday meant going to a hill stations and beach, now people are willing to go in for adventure tourism as well as visit places that cannot be really be called hospitable.


Technology although does not seem to be a major influence at the first glance, still it plays a major part in the promotion of a place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Better technology in the field of communication with cheaper costs have seen many remote and inaccessible areas of the country get connected to the rest of the world . This connectivity has made these places visible to the world. Better communication means access to media. Similarly better transportation facilities have lead to a dramatic increase in the number of tourists visiting any particular place. The presence of an airport and the availability of frequent flights are a great convenience to any traveller.




India's geographical location. A culmination of deserts, forests, mountains, and beaches. Diversity of culture i.e. a blend of various civilizations and their traditions. A wealth of archeological sites and historical monuments.

Lack of adequate infrastructure. A xenophobic attitude among certain sections of people. No proper marketing of India's tourism abroad. Foreigners still think of India as a land of snake charmers.


More proactive role from the government of India in terms of framing policies. Allowing entry of more multinational companies into the country giving us a global perspective. Growth of domestic tourism.

Economic conditions and political turmoil in other countries affects tourism. Aggressive strategies adopted by other countries like Australia, Singapore in promoting tourism.

COMPOSITION OF TOURISM INDUSTRY Major industries that support tourism industry are depicted in the diagram below. These facilities decide the status of a place in a tourist's portfolio. They on one hand attract tourists to a particular destination and on the other act as a major demotivating factor if they are unable to fulfill the expectations of the visitors.






A three-point plan may be considered to realize the full potential of tourism. In a word the strategy for effectively tackling the cause of tourism is AIM.


Within the community there must be awareness of the potential of tourism and its role as an instrument for promoting economic development and social change. The tourist must also have the satisfaction of being welcomed and getting satisfaction on all points of popular contact in the host country.


The industry's own perception and suggestions must be sharply focused highlighting the special needs of the international and domestic traveler by providing adequate transport, accommodation and other backup facilities.


Apart from creating awareness at home it is required to create awareness abroad i.e. what India was like (its 5000 year old heritage), what India is like (liberalization and globalization) and what India will be like in the future (envision - preferred destination). We should concentrate on research and identify source markets. The bottom line is to work out a coordinated action plan for all the three components of AIM.



The government is the most important player in this industry and all the other players have to follow the lead taken by it. However, the actions of the government have not been proactive. Rather it has been late in rising to the opportunity that the tourism industry offers. There are not enough incentives been offered to the other players like Hotels and the travel agencies. The government should be taking the lead and attracting the industry to places that have vast tourist potential but have still not fully developed. There are various restrictions in areas like Sikkim and the Northeast that should be relaxed so that more people can visit those places.

Delayed or absence of connectivity to different locations, lack of proper accommodation facilities, bad roads and no communication facilities are some of the factors that are stopping people from visiting many places. Unless the infrastructure is properly developed, a large majority of tourists will give the country a skip.


The lack of security that is faced by a lot of tourist is also a major cause for concern. There have been many instances where tourist have been physically assaulted, robbed and sexually harassed. Any such incident reflects badly on the country and creates a negative image


The image of the country has taken a long time for the change from the old image of the land of snake charmers. There are many places where the image of India is one of poverty, superstition, and diseases. One of the main reasons why tourist do not visit the country has been the fear of been infected by some exotic disease. The case of Plague in Surat in 1994 led to a decrease of 36% in arrival of foreign tourists in India All these misconceptions unless addresses immediately will create a problem for the growth of the industry.


Travel and tourism is a Consumer based industry. In some cases, when there is a tie-up between travel operators & accommodation industry the end user in this case is also a consumer, the travel agent acts as an intermediary.


Most Goods

Most Services

Travel & tourism consists of


both tangible & intangible factors. Tangible being the TRAVEL & TOURISM destination & intangible factors like experience, feel etc., hence in the service product continuum the travel & tourism comes in between the credence & search qualities i.e. experience qualities. In Travel & tourism, the destination is the product which is tangible & efforts made by tour operators in offering the tour package i.e. accommodation, entertainment, is the intangible element. Both the elements are equally important in travel & tourism.



High contact: In travel & tourism the people or consumers are in direct
contact with the people providing the service. The work starting from destination enquiry, selection, booking, ticketing, etc. everything has a human touch to it. Even now people providing such service sit with their customer to make them decide on their spots. This industry is progressing towards medium contact as now-a-days, some jobs such as ticketing & hotel reservations are done through internet & using modern technologies.

EXPERTISE: Professionalised: a service is said to be professional if the service

requires a professional procedure & established code of conduct & affiliation with government body. Travel & tourism ministry of travel & tourism.

PROFIT ORIENTED SERVICE: Commercial service.

Travel & tourism is profit-oriented service. It has commercial transactions as it is profit earning industry and not social working.



The tourism product which is mainly destination (tangible) can only be experienced (intangible). The panoramic view of the location (destination), travel to the destination, the accommodation & facility as well as entertainment at the destination all forms the tourism product. Thus tourism is a composite product combination of attraction, facilities & transportation. Each of these components has it is own significance in the product mix & in absence of even one single component, the product mix is incomplete.

Attraction of the destination, include: Natural site: Beach resorts, hill stations. Places of historical interest: Monuments, archeological sites and
museums. Events: Trade fair, musical festival, games, etc. Cultural attractions: History & folklore, theatre, religion, arts, etc. The facilities compliment attraction. These make it possible for the tourist to stay & enjoy the attraction. Accommodation: Hotel, hostel, campsites. Food: Restaurants, cafes, bars. Local transport: Taxis, coaches. Recreational facilities: Entertainment, sport activity, shopping facilities. Accessibility is the means by which the tourists arrive at the location as without the transportation facility the attraction is of no use. Infrastructure: Roads, rail, airport, etc. Equipment: Speed & size of the vehicle. With increasing number of destination, travel methods & choice of accommodation, the firm offers these products in the form of package tours to facilitate consumers to choose from the combinations. These package tours cater to varying tastes, economy, attitudes & the need for exclusive service. The idea that service products are intangible is an important one, but increasingly firms are trying to make their offering more tangible, and thereby increasing their recognition amongst the target-buying group.

Tangible gifts such as toiletries, flight bags, even bath robes bearing the companies logo or brand name. Eg. Lufthansa & jet airways provide customers with the earphones or headphones, toys, magazines etc. which helps in giving a tangible aspect to service provided. Branding plays a very important role in tourism marketing. Hotel chains, airlines, & travel operators in particular employ tremendous efforts to ensure that their name is widely recognized & synonymous with quality, value etc. Product positioning helps in identifying the images & perceptions of the tourist products as well as tourists organizations, which match the needs of the tourist customers.

Pricing of the tourist product is a complex matter because of its composite nature. Geographical location of the destination effects pricing decisions. Other factors like seasonality & varying demand cannot be overruled. The objective of pricing of any firm is to fetch a target market share, to prevent competition, and to take care of the price elasticity of demand. Prices in travel & tourism are operated in 2-levels. First level contributing to marketing strategy, which concerns with the product positioning, value for money, etc. the second level corresponds to the marketing operation or tactics where the prices are manipulated to match current demand and competition.

Other methods of setting up pricing in travel & tourism:

Cost based pricing: for a business or service in the long run, the average prices charged must be sufficient to cover fixed cost & variable costs and also assure a reasonable return on investment. Demand based pricing: the strength of demand for a product or what the market will bear is evident in the pricing behavior of many leisure industries. Moreover, demand based pricing will suit, as tourism is greatly affected by seasonal characteristics. At peak times many leisure facilities have excess demand, tourism firms use high price as a tactic.

Competition based pricing: it sets the upper limit within which the prices must be set. Prices outside this limit sets off an elastic demand reaction as consumer switch to competing products. In case of new tourism product, if the strategic objective is market penetration, then prices must be set very competitive to attract more potential customers. In the case of niche marketing the prices should portray this aspect complimented with additional benefits of service offer.

Infrastructural facilities, transportation, communication are important for the development of a tourist centre. The major decision that the tourism marketer takes regarding distribution is relating to the channel choice and channel members. The two major functions performed by the distribution system in tourism marketing are: To extend the number of points of sale or access away from the location at which services are performed or delivered. To facilitate the purchase of service in advance. The middleman may be a tour operator, who is the wholesalers, who buy tourism products in bulk and make them available to travel agents who are retailers. The range of tourist products which are bought by the tour operators are airline seats, hotel accommodation, bus for local sight seeing, etc. They may also sell directly to customers.


Following diagram shows the channel of distribution in tourism industry

Tourism product



Tour operator

Travel agent




Creation of awareness is an important factor in the formulation of marketing mix for the tourism industry. The aim of promotion fall into three main categories: To inform To remind and To persuade It will always be necessary to inform prospective customers about new products and services, new uses, price changes, information to build consumer confidence and to reduce fears, full descriptions of service offerings, image building (of destinations) etc. Some of the important aspects of advertising are Advertising and sales promotion- these activities are very effective when supplemented by publicity and personal selling. Advertising messages range from subtly attractive visual messages and symbols designed to appeal and stimulate travel desires and needs, to simple sales announcements drawing attention to specific product offers. Most travel and tourism advertising is aimed at consumer or the travel trade aiming specifically on a tourist product but large organizations like airlines and hotel groups also buy media space to communicate the name and image of the organization as a whole. Public relations and publicity- This include regular articles and photographs of the tour attraction, use of TV, radio holiday program and travel journalists to promote editorial comments. Word of mouth- research shows that about 80% of the tourists visited different places on the persuasion of their friends and relatives and also their own judgement. This indicates word-of-mouth promotion is an important tool in tourism marketing. Incentives - Incentives to agents, customers and sales force are also given to induce immediate response like-price cuts, discount vouchers to use certain facilities in the location, free gifts, price draws etc.

Brochures- these are provided by the tour operators to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the image and positioning of the product and organizations.

New concept in promotion-PIPELINE PROMOTION

Hotel owners and airlines need to promote their services to tour operators who are in effect wholesalers of travel services and products as well as promoting their service to end users and independent travellers. Similarly tour operators will want to ensure that travel agents sell their services in a positive manner and will therefore want to advertise to the agents the benefits of EVIDENCE selling their tours whilst advertising a totally different set of PHYSICAL benefits to the end user.

The tourist spot, which is an experience for the customer, is tangibilised with the help of tangible items like Comfortable seats while travelling, ambience, layout, and design of the resort, natural service-scape etc. The sign posts that indicate directions, route maps, information regarding rules and regulations of the tourist spot and the sign regarding the public utilities like toilets, telephone booth. Printed matter such as brochures also play a important role in the development of tourism. As the product in tourism is intangible, there is a need to describe fully the product, which is done by providing an elaborate brochure which slows how different elements of the program are carefully planned to include all necessary information to make a holiday comfortable.

The brochure is a product at the point of purchase; it establishes

expectation of quality value for money, product image and status, which must be matched when the product is delivered.

The operation process of the tourism firm depends on the size of the tourism firm. The sequential steps involved in the delivery of the tourist product are: Provision of travel information: the information regarding the travel is provided at a convenient location where the potential tourist seeks clarifications about his proposed tour. Preparation of itineraries: it is a composition of series of operations that are required to plan a tour. Liaison with providers of services: before any form of travel is sold over the counter to a customer, contracts have to be entered with the providers of various services including transportation companies, hotel accommodation, coaches for local sight-seeing etc. Planning and costing tours: once the contracts and arrangement are entered into then comes the task of planning and costing the tour, this will depend on the tour selected as well as individual requirements. Ticketing: the computerized reservation system has in recent years revolutionized the reservation system for both air & rail travel. Provision of foreign currency & insurance: in case of foreign travel the final task is to provide foreign currency as well as insurance.


6. PEOPLE: Tourism is highly people oriented industry. People here serve as both input as well as output. As input, people work as drivers, hotel managers, waiters, travel agents etc. People after visiting destinations become output (tourists ) for the industry. Input people are most important from marketing point of view. Output people (tourists) being from heterogeneous socioeconomic, religious and cultural backgrounds have diverse needs, wants, tastes and attitudes. It depends on the dedication of the service people (input) how efficiently they can cater to the needs of tourists. Examples of input people are The airline and transportation crews interact with the customers while travelling. The resort or hotel representatives cater to the needs of the tourist when they reach the destination. The tourist guides who interact with the tourist while visiting various places. These contact personnel must be trained well on interpersonal skills as well as product knowledge. A satisfied tourist is the most powerful marketing tool. Hence, at the outset while planning marketing efforts the organization must ensure that it has well trained and qualified service people.

Packaging plays a very important role in attracting the attention the prospective customers towards the service in Travel and Tourism. The packaging includes all the elements offered in a tour package by the tour

operator. It includes the kind of destination chosen, booking of the tickets, mode of transport, company, the Hotel, Accommodation, etc. Example- the tour packages designed by Thomas Cook are one of the exclusive packages offered amongst other tour operators because of the above mentioned attributes. Hence people prefer their packages to a great extent and remain loyal to it.



Internal marketing Enabling promises

External marketing Making promises



Interactive marketing Keeping promises



Total Product Concept
Future Augmented

Formal Core product


Core product

The benefit

basic An experience providing an insight into a different culture, tradition and lifestyle. Comfort during the tour; instruction manual provided for better understanding of the places of visit; brand name eg. Kerala known as Gods own country; quality assurance


The expected

and TQM eg. Kerala has quality assurance and TQM implemented for all its products (backwater life and habitats and traditional houseboats), services and facilities. This implies it has complete cleanliness in its surroundings and eco-tourism is also assured. Providing the tourist with guide cassettes and also an interpreter to increase interactivity and understanding. Eg tours to historical and archeological sites requires elucidation, which can be ensured through the mentioned means; serving multi-purpose tourism, i.e. forming a chain of destination, circuit theme by cuddling different states. Eg 1 educational circuit, business circuit, pilgrimage circuit, beach circuit Kerala backwaters, Goa , TamilNadu. Eg 2 - Rendezvous

In addition Augmented to expected benefit the


with Maharashtra and the Mughals. Beyond the An experience through which a tourist gets physically usual, serendipity (pleasant surprise) invigorated, mentally rejuvenated, culturally enriched and spiritually elevated. Eg The New Rajasthan Gift: Palace On Air. British Airways will convert its 70-seater Boeing into a flying palace with all possible luxuries flavoured with the Rajasthani ambience. Tourists (who will be treated as

Kings) will tour Rajasthan in Limousines (one for each) and will have personal assistants Darbaris to take care of every need.

Services: A Game of Promises


Tourism Department of India

Internal marketing Enabling promises

External marketing Making promises

States Interactive marketing Keeping promises


India a land of ancient External marketing:

The Tourism Department of India makes promises to the tourists about the varied destination products benefits and experiences using different media internet, travel & tour shows, advertisements in newspapers, road shows, etc. This creates awareness for the tourist (domestic & foreign) and he is inveigled by it. culture, heritage and civilization with majestic mountains, beautiful beaches, wonderful wildlife, enchanting bird sanctuaries and satiated with great treasures of art, architecture and philosophical thought.

Kerala Gods own country

Only Indian state to win award in PATA (Pacific Asia Travel Association) Tourist attractions beaches, hill stations, forests, waterfalls, plantations, tropical islands, ayurvedic health centres and historic monuments. Standardization & quality assurance is stressed and TQM implemented for all products, services and facilities.


The customers are the tourists (domestic as well as foreign) who tour various destinations with different purpose

Internal marketing:
The Tourism Department has to consider many factors to ensure that individual states (providers) are able to keep the promises (meet the expectations of tourist) made by them. This means the Tourism Department enables promises by performing different activities and committing plans. To meet the promises, it is necessary for the GOI to enable the Tourism Department by the following facilities: Infrastructure: The infrastructural problems relating to water, electricity, road, clean accommodation, healthy and pleasant environment near the tourists sites should be completely eliminated. Taxes: The tax structure should be reformed. India is the highest taxed country for tourist. The rates of luxury tax, expenditure tax, leisure tax, service tax should be slashed drastically. At many places there are as many as 23 taxes levied on a hotel. The taxes make the destinations expensive and uncompetitive in the long run. Regulations: Specific regulations should be passed to avoid cities being encroached, water bodies polluted and monuments being surrounded by slums, stray cattle, beggars and touts. Disjointed approach: There is lack of co-operation between ministries tourism, civil aviation, external affairs, culture and urban development. Effective linkages have to established between them


The positive steps taken towards tourism development are The Union Budget for tourism has doubled its investment from Rs. 100 crores to Rs. 200 crores. The Government has also approved a raise in promotional expenditure To serve multi purpose tourism, every state is cuddled together to form a chain of destination theme. Infrastructure up gradation Formation of Trade Promotion Council

Ajanta Ellora Cave Complex 2 kilometres from the caves, an elegant tourist centre, with modern amenities and proper parking facilities is being constructed. A shopping centre and an interpretationcum-information centre is also coming up.

Interactivity marketing:
Finally, the individual states have to keep the promises made by the Department of Tourism. This is the place where all aspects of quality or the lack of it is perceived by the tourist. The entire tour could be termed as futile even if little discomfort is experienced by the tourist during transportation, accommodation or sight seeing. The providers (state authorities for tourism) have to take every

care to avoid such occurrence. They are assuring this by improvising on the following facilities: Efficient transport system for tourist when they are for a tour within the state High quality hotels with first-rate service provided by them. Professional guides placed at educational sites historical places, archeological sites, art galleries, etc

Airports are the primary infrastructure facility that a country has to offer to the international tourists. It would be surprising to note that renowned tourists destinations like Jaipur and Goa do not have an international airport.


Foreign guests, who constitute more than 60% of the tourists destined for these cities, currently have to travel via Mumbai, unless they are ready to charter a flight. This makes things cumbersome and time consuming, thus discouraging many time conscious tourists from visiting these places. Similar is the case of cities like Agra, Udaipur and Varanasi where foreign tourists account for approximately 50% of the total tourists arrival.


Core product

The basic benefit

Transportation ,serving food drinks ,staff



Airline is the most preferred Inefficiency of the timely domestic Formal The expected Cleanliness, mode of transportation by the airlines- there are number of polite cancelled and foreign tourists as the instances offlights, flight being convenience provided by the or delayed. courteous behavior, safety airlines is higher. Lack of basic facilities at the Augmented addition The savings in time In that this to the airport. Comfortable seats, mode of transport expected offers is Government does not allow the benefit smiling employees, on par immense. capacity of existing airports to with international increase private and foreign operators are not given clearances standards to operate in the country. Future Beyond the usual, Welcome flowers, OPPORTUNITIES THREATS serendipity (pleasant managers word of thanks, As the tourism industry expands airlines (Airshows India to and surprise) Domestic entertainment the airline industry is also in for a Indian Airlines) face major delight and surprise the boom. competition from other Development and up gradation of transnational airlines. travelers on the flight the present airports India's geographic location makes it an ideal location to serve as a 30 link between the East and the West.


Services: A Game of Promises

Mohit Sen, 28, a textile trader, has been a frequent flier on Jet Airways, ever since he took over the reins of the family business five years ago. He calls it a smarter alternative to the domestic carrier. More so in the last couple of years. Without elaborating, he says that flying Jet today is much better experience compared to a couple of years ago. Though he cant pinpoint any particular reason, hes a satisfied customer. There are obviously many more like Sen.

Service triangle analysis:

Jet Airways :
From small beginnings in 1993 ,today the airline carries around 17,000 passengers daily on a fleet of 36 aircraft nine Boeing 737s and seven ATR 52-500s to 44 destinations around India. This growth has happened because of service quality, which began as a part of Jets mission statement, and is now being reinforced at every stage. The airline, has received several awards for its service performance, and was recently awarded Qimpro gold standard for quality. Quality, for Jet Airways, means quality for both internal and external customers. What appears okay on the surface may not be so when one looks closer. And for the past three years, the airline has been on a mission to redefine the quality standards it had set for itself. The current quality standards, their measurement and procedures are a by product of Jets mission statement. It is the quality of its service that distinguishes it from other airlines.

Its sole objective is customer satisfaction and be one step ahead to provide the best. It wants to be perceived as a world class airline. Though it would have been enough for the airline to merely try and be better than its main rival Indian airlines, it consciously benchmarks itself with the best in the world KLM, Emirates and Singapore Airlines, among others.

Managing moments of truth at Jet Airways:

At the core of the Jet quality focus are standards backed by quality processes: there are norms laid out for all areas of customer experience, from reservation to check in, departure, in flight services, arrival and post flight. Whenever there is negative customer feedback, or there are in- house service detractors, the feedback is mapped against set process to check where the non-compliance happened. This is then remedied by

communication and training where needed. If the processes are complied with and there is still customer dissatisfaction, or where standards are loose cross functioning teams are set up to tighten them and redraw the processes. Underpinning the whole system is the foolproof way in which Jet monitors quality. It happens at three levels: Formal customer feedback through Service Monitor Questionnaire Internal feedback and critical comments from detractors Direct quality audits at periodic intervals. A jet airways For example, at Mumbai airport, service quality is physically verified from 4.30 am to 10 pm by two people working shifts. Their job is to move X-rays to passenger queues and other areas of customer interaction to check for problem areas and take correctives. The overall quality is audited at the six metro airports every quarter, and twice a year at airports with four flights a day. For the remaining airports, audits are done on an ad hoc basis. audit at periodic interval .It has a system in place for auditing service on a continuous basis. Plans are a foot to increase the frequency of audits to iron out quality discrepancies between various airports. The audits tend to be detailed, for example, when check in counters are audited, the audit checks at least 26 parameters for compliance with and signage, and going to staff grooming, greeting passengers by name, and the total time taken to process passengers waiting in a queue. In a service industry, quality is subjective and that has to be improved upon constantly. A number of different departments have to mesh together and service delivery has to live up to perceived customer expectation. And an airline only flies passengers, while the rest of the countless functions are outsourced. At Jet the service quality wing steps in to figure out problem areas before they become major customer irritants. They take the role of a critical customer .Its a case of challenging the organization and the environment. Quality cannot be checked in a service industry, the departments have to know the standards.

Gap analysis:
Flawless quality all the time is also a near impossibility in the service industry. There is always a gap between what a customer expects and what can be delivered .The trick, though, is to keep the gap as narrow as possible, so that the gap between customer perception and the companys perception about what needs to be delivered is constantly narrowed. Three years ago, the quality department adopted a gap analysis model to analyze quality of service issues at different levels. With two vice presidents overseeing the exercise, about five departments came under the quality/service purview. These included airport service, in-flight service, catering, marketing and sales.

The gap analysis is done from the points of view of both the customer (the user) and the airline (the provider). It takes into account both the internal customer (people within the organization) and the external customer (the traveler). With role playing exercises Jet identified the expectations gap that exists between customer and provider, and those that could crop up in future. This helped the quality department chart out the service quality specifications to aid service delivery. The largest gap not expectedly lies between customer expectations and management perceptions about these expectations(see gap 1 in chart).The key to narrowing this gap lies in reducing four others: the gap between management perceptions of customer expectations and service quality specifications (gap 2),the difference between these specifications and actual service delivery (gap 3), the effective communication of this service delivery to customers (gap 4), and the difference between what customers expect and what they perceive they are getting (gap 5).

Action taken:
To make the job simpler, Jet decided to tackle the entire service cycle both on the ground and in flight. The ground rules meant involving people at every stage, right from the time a traveler enters the airport to fly Jet till he disembarks. It includes reservations and tele check in, city

side ticketing, baggage screening, queue management and right down to arrival lounge. The logic was simple: if you focused on the small things, the big things came right. While the Jet Airways business model talks about the requisites for safe flying a modern generation aircraft, young fleet (average age: 30 yrs), wider coverage of India; it also harps on up gradation and innovation of products and services and understanding customer needs. Just how small are the issues could get was evident from how Jet decided that fingerprints should not be seen on the cabin overhead storage flap. There werent really any complaints about this, but Jets quality cell, consisting of 11 people, decided it could do without shabby imprints. So today, when the 10 cleaners get on board after every flight turnaround, they have one more job to do. Jet claims to be the only Indian carrier that deepcleans the cabins after every flight. These small things count when we see it in the context of heightening competition in the airline industry. Little wonder then that Jet is trying to leverage its brand equity hinged on quality and on time performance. In recent months, it has focused on two things-the visible aspect of inflight service and the quality of its product, its purchasing habits and quality of consumable service served on board. All this to ensure a defect free product. Priced at the premium end, Jet is currently undercut on fares by Indian Airlines. This means Jet has to offer value in other areas to make up for the price disadvantaged.

Food above all: Food was one area the Airline decided it could not afford to lose out on. To provide a first class meal the business traveler on Jet had been getting plated service for quite some time on. This meant that instead of the earlier pre packaged meal, which had the main course and the dessert on the tray, he now gets his two (break fast) to three courses (lunch and dinner) dressed in perfection in Noritake crockery. Until six months ago, Jet used crockery sourced from a local manufacturer. The Indian customer has traveled a lot and is familiar with foreign airlines. This meant providing international standards on a domestic airline. But customer satisfaction also means

attending to customers on the ground. Thus, Jet has adopted a system of having a floor walker, now re-designated queue manager, to keep an eye on how customers are served at the airport. The floor walker monitors the entire gamut of services ranging from attitude of staff, appearance of counters and assistance with baggage and queue management. Employees say that it is an organizational self assessment. It is done to see how the staff perceives itself. This was one lesson learnt from discreet observation at the counters. For example: A passenger was late in catching his flight. When he reached the security gate huffing and puffing, a polite Jet Airways official informed him that he had missed flight. Now, airline officials are taught to smile and be polite to passenger. In this case, however, a smile was inappropriate since a passenger missing his flight would be irritated by excessive smiling when the need was for empathetic listening. This feedback from Jet staffer was useful in helping counter staff realize that you need different strokes for different people at different times. Soft issues like the example above sometimes make a difference to the customer. But just in case anything has been missed, Jet makes it appoint to seek feedbacks regularly from the passengers. From the beginning, Jet has been offering Service Monitor Questionnaires (SMQ) for passengers to fill out during the flight. Passengers were asked to rate Jet on topics ranging from accessibility at the airport to cabin crew behavior, food and the overall experience of flying Jet. In the beginning as there was no pressure to get consumer feedback the staff didnt take it seriously. Today these questionnaires are mandatory on every flight. Not only is the staff encouraged to proactively distribute the forms, it is also announced on the overhead speakers .In March; Jet received 38,000 responses; a year ago it was less than half that number. Jet uses these SMQs to raise the quality bar. If they get 60% excellent rating in one area, the crew is asked to get 70% the next time. It is through the assiduous monitoring of customer feedback and complaints that Jet keeps setting itself a moving target for improvements.



Packaged tour which includes travel guidance, Core product The basic benefit planning, pricing, accommodation, local travel and sight seeing Insurance, airport pick-ups, foreign exchange Formal The expected assistance (Raj Travels), airline ticketing, safe travel guide, branding the product for easy identity. Eg SOTC, Cox & Kings, etc


Payment option travel now, pay later (on the basis of bank affiliations), tourism on credit card (Raj Travels); premium offers special package deals; guarantees in case of Augmented In addition to the expected benefit cancellation of flights, tour failures, bad weather, etc; loyalty schemes; weather reports of different countries, with month wise maximum, minimum temperature, humidity and rain; recommended tours for every age group and interests; take away gifts (souvenirs) - at Beyond the the end of every tour Make your own package (customized


usual, serendipity (pleasant surprise)

packages); free photo sessions; video shooting of the entire trip by the tour operators; incentives with every tour package, one more, at half the price.

The Service Triangle analysis:

Example: Raj Travels External marketing:
This tour operator promises the customers through advertisements in newspapers, handbills and pamphlets, internet sites to offer the finest quality product with a premium price. Raj Travels claims to be the First and Pioneer to operate tours to Australia and Mauritius

It also takes active and prominent interest in formation of TAFI (Travel Agents Federation of India) and now their CMD is also the President of TAFI. Raj Travels is a holder of Top Agents Awards from many airlines such as British Airways, Lufthansa, Singapore Airlines and Amadeus. It also conducts US and UK VISA seminar at Mumbai, Ahmedabad and Pune for students. Customers: Customers include individuals, couples, families, groups (small and big)

Internal marketing:
Raj Travels takes efforts to assure that the providers Tour guides, Tour Directors and Tour Managers are professionals and well trained so that they help the company to keep the promises. It imparts training to its providers so that the best is passed on to the customers. Training is given in the fields of: Inter-personal communication, Motivation, Handling crisis, etc. Also, all the required documents and important items are made available to the tour directors to ensure a comfy tour. They have based their cooks at the hotels (in Europe and South Africa) to cook the delicious Indian meals and serve right in the hotels restaurant under great ambience and atmosphere. Thus the tour operator enables promises hoping that these would be enough for successful transactions.

Interactive marketing:
The providers (tour guides) of Raj travels are the most important people as they are in constant and direct contact with the tourist. The tourist will have the perception of high quality if the experience with tour guide, manager and director is of the highest quality. These tour directors ensure that at all places the customer experiences delight by coordinating all the activities and events and giving least distress to him.

Hotels form one of the most important support service that affect the arrival of tourist to a country. The major players in the industry are Indian Hotels Company Ltd (IHCL) operating under the Taj brand, the Oberoi, Oriental Hotels, Hotel Leela Venture and the Ashoka chain of hotels, owned and operated by the Indian Tourism Development Corporation (ITDC).




STRENGTH A very wide variety of hotels is present in the country that can fulfill the demand of the tourists. There are international players in the market such as Taj and Oberoi. Thus, the needs of the international tourists travelers are seen to while they are on a visit to India. Manpower costs in the Indian hotel industry is one of the lowest in the world. This provides better margins for Indian hotel industry. India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists. OPPORTUNITIES Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months. In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0.4% of the global figures.

WEAKNESSES .The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. The hotel industry in India is heavily staffed. Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for international hotel companies. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%. Only 58,000 hotel rooms are available in India today, which is less than the Bangkok hotel capacity. THREATS Guesthouses replace the hotels. This is a growing trend in the west and is now catching up in India also, thus diverting the hotel traffic. Political turbulence in the area reduces tourist traffic and thus the business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war. The economic conditions of a country have a direct impact on the earnings in hotel industry. It can seen that the present economic slowdown in India has led to a 51.6% fall in the industry average net profits for the second quarter of the current financial year, 2000..

The Hotel Products


The basic benefit

Serving rooms, food, kitchen and staff Cleanliness, timely


The expected

service, polite and courteous behavior, menu availability, music. Sparkling floors,


In addition to the expected benefit

ambience, smiling employees, music of choice, Welcome flowers, welcome drink,, Cookies in the room, managers word of


Beyond the usual, serendipity (pleasant surprise)

thanks, giving surprise parties to the guest and delight the guest. The emphasis is on relationship marketing.

The Customers of Hotel industry


The customers are the users of the services in the hotel industry. These users belong to different categories visiting hotels with diverse aims and objectives. Thus, it becomes very important for the hotel marketer to be aware of these different categories and also to know which categories of users form their major potential customer group. The users of the hotels can be categorized as follows:
Users of Hotels



Tourists Political Students Representatives Officials Trade Trade Representatives Representatives Sportsmen Political Tourists Representatives Cultural Film Stars Representatives Medical Officials representatives Film Stars The users of the hotel come from different regions and segments and with Sportsmen Medical different culture and attitude. The hotel marketer has to keep in view the variations in these categories and make best representatives of the strategies to satisfy


Le Royal Meridian, Mumbai


External marketing:
the hotel promises through its advertisements in business magazines and tourism sites to offer an unparalleled luxurious experience. It also claims to have standards of finest European hotels with unadulterated luxury. Customers: the profile of guests at Le Royal Meridian is Corporate, Individual travelers, Airline crew and layovers.

Internal marketing:
the hotel has efficient human resource practices to assure that the employees (providers) are satisfied and help the hotel to keep the promises. Empowerment: the management empowers each and every employee to impart him with the authority to make decisions. This gives the employees a sense of belonging and boosts his morale. Training and development: in the induction and orientation the employee is introduced to each department and their functions. Integration of all the departments with the employees department is explained. Standard operations procedure: each department and employee is instructed with and trained to perform a standard operations procedure to maintain the quality of service. Job rotation: each employee gets an experience to work in all the departments by regular job rotation. This reduces the fatigue caused due to monotonous working and brings a new energy and enthusiasm in the employee. Rewards: the best employee of the month is rewarded who is selected on the basis of feedback from guests, head of the department, etc. Interactive marketing: the hotel has no signages in the entire property and instead there are employees stationed at an equitable distance to escort the guest. This provides an opportunity to know more about a guests likes and preferences. Besides, the employees are assigned the job of being acquainted with the guests profile before his arrival and wear name badges to encourage personalized interaction .This often delights the guest and makes him feel special.

Interactive marketing:
the hotel has no signages in the entire property and instead there are employees stationed at an equitable distance to escort the guest. This provides an opportunity to know more about a guests likes and preferences. Besides, the employees are assigned the job of being acquainted with the guests profile before his arrival and wear name badges to encourage personalized interaction .This often delights the guest and makes him feel special


While discussing the overall marketing strategies and challenges to the hospitality and tourism in India, some measures can be suggested which if applied, could stimulate economic growth not only in this industry but also for India's economy as a whole. The most significant factors affecting hospitality and tourism in India are: Infrastructure management; Government policies; Workforce issues and education in hospitality and tourism Strategies for growth; Crisis management; The management of destinations in India and the deployment of online techniques for marketing.


Newspapers: Times of India Hindustan times Magazines: India today Discover india Refrence Books: 1.Philip kotler marketing management 2.Batra, Rajeev, Myers, John G, Aaker, David A, Advertising Management Web: