COVER PAGE OF PROJECT REPORT

TITLE OF PROJECT REPORT

ROLE OF INTERNET TECHNOLOGY IN

TOURISM MARKETING

Under the supervision of

-------------------------------(supervisor,s name )

PROJECT REPORT SUBMITTED TO

INDIRA GANDHI NATIONAL OPEN UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF

BACHELOR OF TOURISM STUDIES

STUDENT NAME
ENROLLMENT NUMBER
STUDY CENTRE
REGIONAL CENTRE

ROLE OF INTERNET TECHNOLOGY IN

TOURISM MARKETING
UNDER THE SUPERVISION OF MS. SUVIDHA KHANNA

PROJECT REPORT SUBMITTED TO

INDIRA GANDHI NATIONAL OPEN UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF

BACHELOR OF TOURISM STUDIES

STUDENT NAME
ENROLLMENT NUMBER
STUDY CENTRE
REGIONAL CENTRE

INDEX

CHAPTER ONE
INTRODUCTION.
CHAPTER TWO
1.

1.

TOURISM MARKETING THROUGH INTERNET.

(a). THE CURRENT STATEOF E-COMMERCE
IN TOURISM BUSINESS.
(b). ROLE OF INTERNET IN PROVIDING
MARKETING INTELLIGENCE.
INTERNET MARKETING ADVANTAGE FOR
SMALL BUSINESSES.
(d). ROLE OF INTERNET IN DESTINATION
MARKETING.
(e). ROLE OF INTERNET AS A MULTI-MEDIA TOOL
IN EFFECTING SALES.
(f). ROLE OF INTERNET IN TOURISM DISTRIBUTION.

(g). USE OF INTERNET IN TOURISM MARKETING

BY DIFFERENT COUNTRIES.
(h). HOW DIFFERENT STATES OF INDIAN UNION ARE
USING INTERNET FOR TOURISM MARKETING.
(i). USE OF INTERNET TOURISM MARKETING BY

INTERNATIONAL AND DOMESTIC HOTEL CHAINS

AND BY HERITAGE HOTELS.
(j). USE OF INTERNET TOURISM MARKETING BY
TRAVELAGENTS AND TOUR OPERATORS.
(k). USE OF SEARCH ENGINES IN TOURISM
MARKETING ON THE INTERNET.

CHAPTER THREE 1. A STUDY OF THE DESTINATION

BASED TOURISM WEBSITES IN PROMOTING
JAMMU AS A DESTINATION. CHAPTER FOUR
1.

OBJECTIVES AND RESEARCH METHODOLOGY

(a). BRIEF INTRODUCTION OF THE TOPIC.
(b). OBJECTIVES.
. RESEARCH METHODOLOGY

CHAPTER FIVE
1.

SUGGESTIONS AND CONCLUSION

BIBLIOGRAPHY

CHAPTER ONE

ROLE OF INTERNET TECHNOLOGY IN TOURISM MARKETING

INTRODUCTION:

Internet marketing is the new paradigm shift in tourism

marketing. Focusing on the recent decades we see that all
major technological breakthroughs have impacted the world
of marketing in different ways. Consequently new approaches
have had to be designed at every level. As an example the
invention of television forced such changes. The major

portion of the marketing revenue shifted from the radio to the

television. Now as contrasted to the earlier era, the visual
content assumed primary importance in commercials beamed
on television. The introduction of technologically superior
television sets and multi-channel cable services brought forth
further changes

in the

content and presentation

of

commercials, as the voice content can be easily muted and

channel surfing between channels by television viewers is
rampant. Therefore intelligent marketers have had to make
definite changes which can help them retain their share of
eyeballs.
Similarly the introduction and wide use of computers and
internet across all horizontal and vertical sections of civil
society and corporate world has created earth shaking changes
in the world of marketing.

And when we speak of tourism marketing through internet

then we realize that, the tourism product because of its special

features can be sold very well through internet and that
tourism marketing is inherently compatible with internet
usage. In the following paragraphs the researcher will try to
find out how the world of tourism marketing is adapting to
internet usage.

CHAPTER TWO
TOURISM MARKETING THROUGH INTERNET: -

Now the researcher will examine some of the key issues

related to the marketing of tourism on the internet. The main
features of the internet as an effective and efficient marketing
medium include its addressability, interactivity, flexibility, and
accessibility and its role in improving customer service and

reducing costs. Tourism products have unique characteristics

that make them perfect to be marketed through the internet.

(a). The current stateof e-commerce on tourism business and

The likely future scenario.

Regarding the future of tourism marketing there appears to be

little doubt that the internet will permeate into every aspect of
tourism business and every area of marketing activities.
Indeed it is likely to become the dominant platform and
instrument of tourism promotion and distribution in five years
time. This is based on the researchers belief that internet
marketing has now survived its infancy and transition from
introduction to growth stage is happening as more and more

people and organizations are recognizing its unique and great

potential for marketing. The increasing power of computers,
the falling costs, the higher level of computer literacy and web
skills will make web surfing a necessity in everyday life to an
increasingly large population especially in the developed
world. In the developing world also particularly in the
countries of India and China internet usage is increasing
exponentially every year. Technological constraints will also
be overcome in the next few years with quality broadband
access via optical fiber or satellites to improve web access,
development of constantly improving firewalls, encryption
and digital signature technologies will enhance security, the
development of more sophisticated search engines and the
worldwide use of wireless application protocol technology
(WAP) linking mobiles to the internet will extend the range of
services available to the public. At the same time
governments,

are

increasingly

facilitating

e-commerce

through providing incentives to small businesses, facilitating

infrastructure development and establishing the regulatory
framework which supports and protects all parties involved.

The researcher holds the view that the key to the future
growth and improvement in internet tourism marketing lies in
tourism organizations. The market conditions and web
technologies are improving and the legal and social
environment is starting to take shape, it is up to tourism
organizations to seize and exploit the opportunities created by
such changes to its full potential. Therefore the question is
how tourism organizations can take advantage of the changes
and opportunities brought about by the internet. Offering a
prescription is not necessary since different tourism
businesses have different resources and operate in different
settings. Three issues are important to be considered for
changing the mentality of tourism organizations to prepare for

a new virtual business environment.

To market tourism products successfully on the internet, a
tourism organization must first of all have a strategic vision
whereby it can fully comprehend the changing market space,
from physical to virtual and the underlying forces shaping this
new marketing space. The internet has altered forever the
tourism marketing system and its environment, and no
tourism business can escape its impact. Tourism organizations
should become engaged in internet and embrace net
commerce to find more opportunities and those who still
pretend that internet is a bad dream may not exist for long.
Whether a organization likes it or not internet is here and it is
going to dominate tourism marketing. Andy Grove, the
chairman of Intel has been widely quoted as saying
companies will be internet companies or they wont be
companies at all.

Internet must not be treated as just a promotion aid or

distribution device but should be seen as a major force in
itself that profoundly changes the way tourist business is
conducted. Marketers will reconstitute those processes by
which they identify, communicate, and deliver customer
value. They will need to improve their skills in managing
individual customers and allies. Tourism marketers will have
to change their business paradigm and marketing practices to
suit the new internet era.

As the net alters critical success factors in many businesses,

tourism organizations must use it effectively to create new
competitive advantages. Some tour operators in Europe lost
control of distribution through vertical integration with travel
agencies in the last decade, but with emerging web-based
online sales companies, control of how they let the product be
distributed rests with them. In responding to threats from

airlines direct sale, the major global Distribution Systems

have been using the internet to develop web-based GDSs and
to diversify their product lines. Clearly, tourism organizations
have to adopt a technology management policy that will assist
their competitive strategy and leverage the business
environment to their advantage. Strategic internet partnerships
or alliances, especially those between tourism companies, and
tourism and IT companies also create a lot of increased value
for the partners.

Tourism includes all the elements a destination has to offer to

tourists

including

the

social,

cultural

and

physical

environments as well as the touristic components of tourism

supply including the board and lodging facilities and other
travel related services. In the tourism destination marketing,
the tourist looks at the holiday as a complete experience but it
is sold in the market palace in bits as beds, meals, tours, seats

etc. by a plethora of independent suppliers. So it is here that

the multimedia and quickly navigable content of a destination
on the internet can give him an idea of the complete
experience available.

(b). Role of internet in providing marketing intelligence.

More than automating online business transaction it can

informate in that it provides a vast amount of information
which was previously unavailable. Marketing is essentially an
information dispensing exercise which links and organization
to the external environment in which it operates. The internet
is an invaluable source of low-cost but up to date marketing
intelligence which can be a source of information (for
example details of customers) and other web sites ( for
information on competitive situations, market conditions, and
the general environment). The internet is extremely useful in
building a customer database. With the use of proper software

such as Aarums software web-trak ( and even with simple

means such as cookies, web forms, and email feedback) it is
easy to gather systematic information of people who visited
the companys website. This information can be used to
identify prospects, understand customer needs and customize
resources to give greater levels of service to customers. The
online transaction histories can be the primary marketing
resource of tourism companies, determining what kind of
travel products they can deliver, what market segments they
serve and the value of each customer to the firm.

Through many web sites, a company can get valuable

information about market demand, supply, competition, and
economic,

demographic,

legislation

and

technological

changes in the domestic and international markets. Web sites

of government agencies, media companies, and non-profit
organizations usually provide large amount of information

free on general issues; while commercial sites can be accessed

to know about new technologies, best business practices and
industry initiatives. Scanning competitors home pages helps
companies to track competitors marketing strategies and
tactics. From a hotel chains web sites one can easily locate
information about chains main business activities, financial
performance, new hotel openings and investment plans, etc.

. Internet marketing advantage for small businesses.

Tourism industry is also polarized in that on the one hand,

there are a few multinational airlines, tour operators, hotel
chains and theme parks; on the other hand there are millions
of small businesses, especially in travel retailing, tour guiding,
hotel and catering sectors. For the small tourism enterprises,
the web is probably the first effective and feasible medium for
them to carry out professional marketing function beyond the
basic sales operations. The net has opened the door for small

businesses with little capital to reach a worldwide market.

Open access results in lower entry barriers so that virtually
anyone can both access and provide services on the net. The
net also re-defines economies of scale, allowing small firms to
achieve low unit costs of operating in markets. In the
hospitality sector the small firms could also have more costeffective marketing through the destinations web site. For this
reason some scholars have praised the internet as a marketers
dream as it allows companies of different sizes to compete on
more equal terms. Nevertheless it must be noted that net
provides a level playing field for companies of all sizes only
at the point of entry that is to establish a web presence
because the development of a fully functional marketing and
sales site and especially the promotion of the site to increase
visitor numbers requires huge investments.
(d). Role of internet in destination marketing.

In destination marketing it would be effective for a destination

to develop a sustainable electronic infrastructure that is

capable of establishing a comprehensive and multi-lingual
website. This would provide potential tourists with up to date
information from a variety of sources, about the destination in
all aspects of tourism tourist attractions, transportation,
accommodation, tour operators and leisure facilities as well
as the background of its people, culture, history, economy and
climate. The master destination database can be integrated
through hyperlinks with individual websites and with a suite
of applications which enable tourists to pick and mix their
own holiday packages. As such a mega-site could be the
portal or the home page of other relevant sites in a
destination, it will be a great deal easier for the destination to
establish itself in the already crowded web-space. From this
first stop of call, a visitor can search for all the information as
to whether to visit the destination, what facilities to use and
arrange

for

reservations

and

transactions

online.

In

comparison, with the traditional media, in order to get the

relevant information a tourist often needs to go to a travel
agency to get a brochure, to a bookshop to get a guide book,
and may also contact the destinations national tourist office to
get some more information. While the printed literature the
tourist gets is often outdated a properly constructed and
maintained

website

can

provide

right-to-the-minute

information.

(e). Role of internet as a multi-media tool in

Effecting sales.

Tourism industry is information intensive and information is

often dubbed the life-blood or cement of the industry which
holds together the different producers within the travel
industry- airlines, tour operators, car rentals, cruise lines and
other supplies. In few other areas are the generation gathering,
processing, application and communication of information as

important as they are for travel and tourism industry. The

perishability of tourism products and the often erratic tourist
demand make the task of balancing tourism supply and
demand more difficult than for any other sector. This is
probably why tourism became one of the first industries to
widely apply IT and conduct electronic commerce from the
1960s in the form of computerized reservations and global
distribution systems (GDSs).

A virtually unlimited amount of information can be stored at a

web site and an unlimited number of users can retrieve it at
any time from anywhere in the world. The web not only
provides information it provides it from a much wider range
of sources; while in the past tourists were almost exclusively
dependent upon representations and descriptions by the travel
trade. The web can support a much greater variety of formats
from text to photos, graphs, audio and video clips, whereas in

the past, tourists primarily relied on the printed broachers as

the limited copies of the videos of a destination were only
available with major travel agents. The web based electronic
brochure can also facilitate the complex process of choosing
among hundreds of computer generated selections from backend databases linked to web-servers whereas printed
broachers are usually arranged and indexed one by one, often
by destination. Through internet a prospective tourist can also
test drive a prospective holiday by viewing real time scenes
through cameras placed in hotels, clubs, restaurants, scenic
spots and other sites in the destination and downloadable clips
can also show episodes and scenes of festivals, art
performances and service delivery to facilitate tourists in
comparison and evaluation of intangible services, the quality
of which he can assess in advance.
(f). Role of internet in tourism distribution.

In the 1960s the CRSs and the GDSs had only improved the

information communication between tourist businesses,

originally between airlines and travel agents and they were
expensive both to the tourism producer and retailer. Moreover
the systems were incompatible with each other and switch
companies such as THISCO (The hotel industry switching
company) was needed to connect hotels with all the major
GDSs to facilitate room reservations. With the effective use
of Internet these problems are now addressed effectively and
cheaply. Having realized the tremendous potential of the
internet GDS companies have already started developing and
improving new web based systems to change the whole
tourism distribution landscape in the near future. For example,
Amadeus launched Amadeus pro web in Jan 2000, which is a
browser based reservation tool allowing travel agents trade
worldwide without a dedicated communications line and at a
greatly reduced cost. In fact, with this system any internet user
can become an online travel agent within a week.

The cost of setting up a promotional web site (i.e. without

booking facilities) is relatively low. An average computer
user, given a proper software package, such as Microsoft
Frontpage can build a basic site in days. The marginal cost of
adding an extra web page to the site is negligible. The more
comprehensive and powerful web sites, such as a destination
site offers complete information - a virtual multimedia
brochure to include thousands of product offerings, and a site
which integrates information, reservation and transaction, will
cost more and take longer to develop. As compared to the tens
of millions of dollars spent by airlines, tour operators, and
hotel chains on TV and magazine ads the web is a low cost
medium for promotion. The simple web presence, by allowing
customers to find answers to their inquiries themselves can
also help to reduce telephone charges based on toll free
numbers.

The Internet also has a great potential for saving distribution

costs. Distribution, the selling and marketing of tickets, is one
of the biggest cost items in the airline industry. Airlines webbased ticket sale operations can at least eliminate the travel
agents commission. Internet based supply chain management
can also save procurement costs for businesses.
(g). Use of internet in tourism marketing by different
Countries.

Now the researcher will find out how the various countries
have put up a web presence at the national level. Indias
national tourism office has put up a website called
www.incredibleindia.com, to promote its incredibleIndia
campaign to get foreign tourists to visit India. It is a good
portal though not an exhaustive one. On its home page it
promotes tours of north India, Goa , Kerela Taj Mahal etc. On
united states front we find the www.ustourism.com with the
map of U.S. functioning as the homepage and the 50 states

working as hyperlinks. An excellent portal. On the united

Europe front we have the www.Eurotourism.com an excellent
portal which as homepage has a list of all European countries
and a map of Europe it is filled with hyperlinks to individual
countries and regions and then links to all facilities grouped
under

hotel/inn,

restaurant,

activity/adventure,

hostel/backpacking and many other. For Africa we have

www.southafricatourism.net and www.africatourism.com. The
south Africa tourism site is divided into international visitors,
local travelers, travel trade and business tourism. There are
also descriptions about and hyperlinks to the various wildlife
parks of the region. A section shows this week in South Africa
and highlights events. The homepage shows video clips of life
in cities of South Africa. The Africa tourism website promotes
safaris overland tours and self drives. The scene in Asia is
different there is no united marketing effort. There is a
www.tourism-asia.net with hyperlinks for Singapore, Hong

Kong, Maldives, China and South East Asia. There is also the
www.asean-tourism.com which promotes Brunei, Cambodia,
Indonesia Laos, Malaysia, Myanmar, Philippines, Singapore,
Thailand and Vietnam. As regards China the China national
tourist office has a official website called www.cnto.org which
on its home page has China Visa, Tour operator locator, mice
tourism, travel info tips etc. A separate window provides
hyperlinks

to

all

its

cities.

Another

site

www.travelchinaguide.com provides just the links to and

information of a number of Chinese cities and all the tourist
attractions the respective cities possess. Regarding Japan the
national tourism office of Japan has a website called
www.jnto.go.jp. This is a truly multi-lingual site offered in
Japanese, English, French, Duestch, Portuguese and Greek.
This site is different in separate windows it informs about
travel professionals, local websites, PDF files of brochures of
Japan, Japan tourist photo library, attractions of Japan, History

and Culture. A section called latest topics highlights different

articles dealing with tourist attractions in Japan, new
immigration procedures, train seat reservations, tourist
information centers and all new relevant developments. It
constantly uptodated with to-the-minute information. As
regards Australia www.austailia.com is their official tourism
site. It includes sections such as explore by maps, getting
around, holiday ideas, finding a travel agent, whats on. A
section deals with events. A section invites tourists to visit the
great barrier reef and goes on about its unspoilt qualities.
Lastly a section gives travel information on getting there,
visas and climate.
(h). Use of internet by the different states of the republic of
India for tourism marketing.

Now the researcher will find out how the states of the Indian
union are marketing their tourism products on the internet.
Surfing the internet extensively the researcher found that

practically every state of the union and every union territory

in India have dedicated tourism web sites sponsored by the
government. Many of the states which have a roaring tourism
business like J&K, Rajasthan, Kerela, uttranchal, and
Himachal pradesh are also served by private web sites
detailing the charms of the respective state. As a
representative also of the websites of the rest of the states of
the union the researcher will focus on the websites pertaining
to these high value tourism states. First of all the official
website

of

the

tourism

department

of

J&K

is

www.jktourism.org. On one side hyperlinks lead to the subsections on Jammu, Kashmir and Ladakh on the other side
charms of the many seasons in the state are delineated. A
section below provides links to Gulmarg-asias winter sports
destination,

international

rafting

competition-kashmir,

memoirs of recent visitors, shrines and monuments in

Kashmir, tourism book review and tourism departments

special schemes. Himachal pradeshs official tourism website

www.himachaltourism.nic.in is better structured and provides
all relevant hyperlinks on the homepage itself. It informs
about history, access, tourist destinations, travel tips, lakes ,
heritage wildlife, religious tourism, eco tourism, adventure
tourism, trek routes, camping, picture gallery, fairs &
festivals, guides for essentiality certificates, home stay
scheme-2008 and it also provides online HRTC bus ticket
reservations. There is also a special link showing Govt.
authorized secure online hotel reservation system. Email-id
of the tourism deptt. Of Himachal pradesha as well as an
online toll free number has been provided. The website of the
tourism

department

of

Rajasthan

i.e.

www.rajasthantourism.gov.in promotes the state of Rajasthan

as a whole. It praises the contrasts of its landscape and its
splendid architecture and describes it as the safest state in
India in terms of law and order. A section provides links to

fairs

&

festivals.

Another

section

works

with

accommodations. Hyperlinks provide links to sections

informing about all cities and tourist spots in the state. A good
point is that hyperlinks giving contact details of all the
important officers of DOT and RTDC have been provided.
Separate hyperlinks provide links with palace on wheels,
sound& lightshow- Chittorgarh, and tour programmes has
been planned. The official tourism website of the kerela govt.
www.kerelatourism.org is also a well planned site. Hyperlinks
have been aesthetically placed on the site. The site has a
simple homepage without any flashy overtones. It provides
sections on travel info, tour packages and ayurveda and
highlights kerela beaches, waterfalls, wildlife,houseboats and
the hill stations of kerela. All the rest of the tourism websites
of Indian states are patterned similarly.

(i). Use of internet tourism marketing by international and

Domestic hotel chains and by heritage hotels.

If we focus on the international and domestic hotel chains in

India we find that they have got a very good web presence
with reservation and booking facilities. These hotel chains
have got a formidable web presence: - the ambassador group
of hotels, Best Western group of hotels, Oberoi group of
hotels, Casino hotels, Clarks group of hotels, ITC
welcomegroup hotels, Holiday Inn group of hotels, ITDC
hotels, Jaypee group of hotels, K Raheja group of hotels, Man
Singh group of hotels, Taj group of hotels and Tulip star group
of hotels. All of them provide room reservation facilities over
the internet and can arrange all that is requested by the guest
via the web.

Heritage hotels of India are another exclusive category in

themselves. They have also used the web to position
themselves strategically in the internet hospitality industry

space. Prominent among them are Umaid Bhawan palaceJodhpur, Noor us sabah palace Bhopal, Bassi fortchittorgarh,
Ramgarh

Neemrana

fort

palace-Neemrana/Rajasthan,

Bunglows-Ramgarh,

Piramal

haveli-

jhinjunu/Rajasthan, Udaipure Lake palace- udaipur, Udai

Bilas palace-Dungarpur in rajasthan, Raj Mahal Palace-Jaipur.
These heritage hotels are all old havelis or palaces of the
Maharajas or rich merchants of old and have an old world
charm. These heritage properties have also established a
noticeable presence on the web.

(j). Use of Internet tourism marketing by travel agents

And tour operators.

A internet search on travel agents and tour operators in India

shows 333,000 results. It shows the extent of internet
penetration into the world of tourism marketing in India. It is

however lesser than say USA which for same key words
shows 3,220,000 results. However India is still a developing
country and computer usage and Internet penetration have a
long way to go before reaching saturation point.

A very popular site nowadays in India and used extensively

for travel booking is www.yatra.com. It facilitates domestic
travel, international travel helps make reservations on hotels,
arrange holidays, arrange car rentals, and provides bookings
on flights through its site. It is also into corporate travel
planning and execution. It is a complete example of what a
modern Indian travel agency should aspire to be.

(k). Use of search engines in tourism marketing on internet.

A new and interesting development in internet tourism

marketing is the creation of internet search engines dedicated
to tourism. And most of them are still at the development
stage. And the few ones that have been developed cater to

only a designated country or a state. For example

www.uptake.com is a search engine dedicated to the tourism
market in USA. Using this search engine you can search for
any tourism related facility in United States of America. There
is another tourism related search engine dedicated to U.K. But
there is nothing like this still for the tourism market in India.

CHAPTER THREE

ROLE OF DESTINATION BASED TOURISM WEBSITES

IN PROMOTING JAMMU AS A DESTINATION.

Destination based tourism websites can be said to be those

which specifically seek to promote a particular destination as
a tourism attraction. When we study the internet for
destination based tourism websites which have been created

for the specific purpose of promoting Jammu as a tourism

destination we can access many sites. But it is distressing to
note that there is no specific website which has been put up
for the specific purpose of promoting tourism in Jammu only.
There are many websites which promote Jammu by default.
Among them mention may be made of wwwjktourism.org,
www.jammuandkashmir.nic.in,

www.jktourism.in,

www.maavaishnodevi.org/help_desk_dir_tourism,

and

www.holidayiq.com/destinations/jammu. There are many

more sites but these are the prominent ones. Among all these
sites I found the site www.jktourism.org to be most
informative. It has all the required information on Jammu and
the attractions of Jammu. It provides a complete list of
accommodation alternatives i.e. all classes of hotels with
room tariffs and telephone nos, dak bunglows and
dharmshalas etc. It provides complete information on
restaurants in the city and the cuisine they provide and all the

general and particular information that may be required. It is

by far the best website so far as the tourism promotion of
Jammu is concerned. Other websites which come close are
www.jammuandkashmir.nic.in

and

www.kashmirtourism.com . They also give good information

but they are neither as aesthetic or as detailed.
Among websites created by service providers the most
informative

regarding

the

Jammu

region

is

www.holidayiq.com/destinations/Jammu and provides all

details of the region. In addition it provides customer reviews
of trips to Jammu and it is a good site for getting information
regarding Jammu. The site www.maavaishnodevi.com also
gives information regarding Jammu but it is very limited as its
focus is the holy pilgrimage in Katra.
As regards a Jammu specific destination based tourism
website which has been singly or jointly been put up by the
service providers themselves it is yet to materialize.

CHAPTER FOUR

OBJECTIVES AND RESEARCH METHODOLOGY

(a). A brief introduction of the topic: -

Advances in technology have

always impacted all the activities in the world and all the
departments of life and marketing can be no exception.

That is because the tourism product that is being sold is

intangible in nature or let us say that it is an experience that is
being sold and the prospective tourist himself or herself is a
part of this experience.
Therefore in this situation the use of internet with all its
advantages can be really beneficial for marketing tourism
products. Especially as the internet can also be used as a
Multimedia tool, its effectiveness is greatly increased as the
prospective tourist through the use of sound bytes, and video
clips can be given a feel of his future experience which is
being promoted. It is these aspects of the internet in relation to
tourism marketing which are being studied in this project
work.

OBJECTIVES: - The

1.

objectives of the study will be

To study how the internet is being currently used for

tourism marketing by the various constituents of the
tourism industry.

2.

To study the role of destination based tourism websites in

Promoting Jammu as a destination by service providers.

RESEARCH METHODOLOGY:1.

Collection of primary data:- from internet surfing of a

varied
Cross-section of websites relevant from a tourism point
of
View.

2.

Collection of secondary data: - from reports relating to

Tourism marketing on internet which have been
published
Online and relevant articles in newspapers, magazines
etc.
CHAPTER FIVE

CONCLUSION AND SUGGESTIONS.

Thus in the preceding paragraphs the researcher has tried to

find out the impact of internet on the tourism industry in India

and internationally. The researcher has tried to find out the

compatibility of internet marketing with tourism and has
analyzed the scenario internationally and on the internet. In
India the researcher focused on the constituents of the tourism
industry and how they were leveraging the world wide web
for their advantage. From his research the researcher is
convinced that internet marketing is going to be the dominant
marketing technique in the industry a few years down the line
and the businesses which dont adapt to internet marketing are
only going to put themselves in a difficult position. Hence the
industry should go out to create a strong internet presence but
they should also synergies their efforts appropriately as that
would keep the long term returns coming.

The researcher is offering a few suggestions to help tourism

companies use the internet for marketing in a better manner.
1.

Strategic Vision.: - The management of all tourism

Companies Should have a long term strategy for

using

the

internet

and

make

investments

accordingly.
2.

Constant updating:- It is important to constantly keep

Track of technological developments in the overall
Scenario and to keep abreast of the changes.

3. Ready to use databases: - To use the net effectively

Ready to use databases for all aspects of the business
Should be possessed by all enterprises.
4. Development of India specific search engine:- To
Accelerate the development of e-tourism in India it
Is worthwhile to develop a India specific search
Engine for tourism industry, and industry will itself
Have to generate resources and take action in this
Regard.
5.

Facilitation by government: - If through technological

Development better encryption technology and
more secure sites become available and the
Government

Legally validates digital signatures, then tourism

marketing through internet can become much more
widespread in India.

BIBLIOGRAPHY
1.

WEBSITES
i). www.Destinationmanagementsystem.com
ii) wwwhotels-online/internetconstraints/html
iii) www.tourisminternetmarketing.com
iv) www.tourismkeys.ca/blog
v) www.jensthraenhart.com/cblog
vi) www.forimmediaterelease.net/pm
vii)www.isoc.org/inet

viii)www.acroglobal.com
ix) www.netstarter.com.au/internet-tourism
x) www.queticointernetmarketing.com
2. TOURISM WEBSITES OF VARIOUS COUNTRIES.
3. TOURISM WEBSITES OF STATES OF REPUBLIC
OF INDIA.
4. TOURISM WEBSITES OF TRAVEL AGENTS AND
TOUR OPERATORS.
5. TOURISM WEBSITES OF VARIOUS HOTEL
CHAINS, HERITAGE HOTELS AND AIRLINES,
TOURIST TRANSPORT PROVIDERS AND
OTHER SERVICE PROVIDERS.

ROLE OF INTERNET TECHNOLOGY IN TOURISM MARKETING

OBJECTIVES: 1. To study how the internet is being currently used for tourism marketing by the various

constituents of the tourism industry.

2.

To study the effectiveness of tourism marketing through internet.

INTRODUCTION: - Internet marketing is the new paradigm shift in tourism marketing.

Focusing on the recent decades we see that all major technological breakthroughs have
impacted the world of marketing in different ways. Consequently new approaches have had
to be designed at every level. As an example the invention of television forced such changes.
The major portion of the marketing revenue shifted from the radio to the television. Now as
contrasted to the earlier era, the visual content assumed primary importance in commercials
beamed on television. The introduction of technologically superior television sets and multichannel cable services brought forth further changes in the content and presentation of
commercials, as the voice content can be easily muted and channel surfing between channels
by television viewers is rampant. Therefore intelligent marketers have had to make definite
changes which can help them retain their share of eyeballs.

Similarly the introduction and wide use of computers and internet across all
horizontal and vertical sections of civil society and corporate world has created
earth shaking changes in the world of marketing.
And when we speak of tourism marketing through internet then we realize that,
the tourism product because of its special features can be sold very well through
internet and that tourism marketing is inherently compatible with internet usage.
In the following paragraphs the researcher will try to find out how the world of
tourism marketing is adapting to internet usage.

TOURISM MARKETING THROUGH INTERNET:

Now the researcher will examine some of the key issues related to the marketing of tourism
on the internet. The main features of the internet as an effective and efficient marketing
medium include its addressability, interactivity, flexibility, and accessibility and its role in
improving customer service and reducing costs. Tourism products have unique characteristics
that make them perfect to be marketed through the internet

Regarding the future of tourism marketing there appears to be little doubt that
the internet will permeate into every aspect of tourism business and every area
of marketing activities. Indeed it is likely to become the dominant platform and
instrument of tourism promotion and distribution in five years time. This is
based on the researchers belief that internet marketing has now survived its

infancy and transition from introduction to growth stage is happening as more

and more people and organizations are recognizing its unique and great
potential for marketing. The increasing power of computers, the falling costs,
the higher level of computer literacy and web skills will make web surfing a
necessity in everyday life to an increasingly large population especially in the
developed world. In the developing world also particularly in the countries of
India and China internet usage is increasing exponentially every year.
Technological constraints will also be overcome in the next few years with
quality broadband access via optical fiber or satellites to improve web access,
development of constantly improving firewalls, encryption and digital signature
technologies will enhance security, the development of more sophisticated
search engines and the worldwide use of wireless application protocol
technology (WAP) linking mobiles to the internet will extend the range of
services available to the public. At the same time governments, are increasingly
facilitating e-commerce through providing incentives to small businesses,
facilitating infrastructure development and establishing the regulatory
framework which supports and protects all parties involved.
The researcher holds the view that the key to the future growth and
improvement in internet tourism marketing lies in tourism organizations. The
market conditions and web technologies are improving and the legal and social
environment is starting to take shape, it is up to tourism organizations to seize
and exploit the opportunities created by such changes to its full potential.
Therefore the question is how tourism organizations can take advantage of the
changes and opportunities brought about by the internet. Offering a prescription
is not necessary since different tourism businesses have different resources and
operate in different settings. Three issues are important to be considered for
changing the mentality of tourism organizations to prepare for a new virtual
business environment.
To market tourism products successfully on the internet, a tourism organization must first of
all have a strategic vision whereby it can fully comprehend the changing market space, from
physical to virtual and the underlying forces shaping this new marketing space. The internet
has altered forever the tourism marketing system and its environment, and no tourism
business can escape its impact. Tourism organizations should become engaged in internet and
embrace net commerce to find more opportunities and those who still pretend that internet is
a bad dream may not exist for long. Whether a organization likes it or not internet is here and
it is going to dominate tourism marketing. Andy Grove, the chairman of Intel has been widely
quoted as saying companies will be internet companies or they wont be companies at all.

Internet must not be treated as just a promotion aid or distribution device but
should be seen as a major force in itself that profoundly changes the way tourist
business is conducted. Marketers will reconstitute those processes by which
they identify, communicate, and deliver customer value. They will need to
improve their skills in managing individual customers and allies. Tourism

marketers will have to change their business paradigm and marketing practices
to suit the new internet era.
As the net alters critical success factors in many businesses, tourism
organizations must use it effectively to create new competitive advantages.
Some tour operators in Europe lost control of distribution through vertical
integration with travel agencies in the last decade, but with emerging web-based
online sales companies, control of how they let the product be distributed rests
with them. In responding to threats from airlines direct sale, the major global
Distribution Systems have been using the internet to develop web-based GDSs
and to diversify their product lines. Clearly, tourism organizations have to adopt
a technology management policy that will assist their competitive strategy and
leverage the business environment to their advantage. Strategic internet
partnerships or alliances, especially those between tourism companies, and
tourism and IT companies also create a lot of increased value for the partners.
Tourism includes all the elements a destination has to offer to tourists including
the social, cultural and physical environments as well as the touristic
components of tourism supply including the board and lodging facilities and
other travel related services. In the tourism destination marketing, the tourist
looks at the holiday as a complete experience but it is sold in the market palace
in bits as beds, meals, tours, seats etc. by a plethora of independent suppliers. So
it is here that the multimedia and quickly navigable content of a destination on
the internet can give him an idea of the complete experience available.
More than automating online business transaction it can informate in that it
provides a vast amount of information which was previously unavailable.
Marketing is essentially an information dispensing exercise which links and
organization to the external environment in which it operates. The internet is an
invaluable source of low-cost but up to date marketing intelligence which can
be a source of information (for example details of customers) and other web
sites ( for information on competitive situations, market conditions, and the
general environment). The internet is extremely useful in building a customer
database. With the use of proper software such as Aarums software web-trak
( and even with simple means such as cookies, web forms, and email feedback)
it is easy to gather systematic information of people who visited the companys
website. This information can be used to identify prospects, understand
customer needs and customize resources to give greater levels of service to
customers. The online transaction histories can be the primary marketing
resource of tourism companies, determining what kind of travel products they
can deliver, what market segments they serve and the value of each customer to
the firm.

Through many web sites, a company can get valuable information about market
demand, supply, competition, and economic, demographic, legislation and
technological changes in the domestic and international markets. Web sites of
government agencies, media companies, and non-profit organizations usually
provide large amount of information free on general issues; while commercial
sites can be accessed to know about new technologies, best business practices
and industry initiatives. Scanning competitors home pages helps companies to
track competitors marketing strategies and tactics. From a hotel chains web
sites one can easily locate information about chains main business activities,
financial performance, new hotel openings and investment plans, etc.
Tourism industry is also polarized in that on the one hand, there are a few
multinational airlines, tour operators, hotel chains and theme parks; on the other
hand there are millions of small businesses, especially in travel retailing, tour
guiding, hotel and catering sectors. For the small tourism enterprises, the web is
probably the first effective and feasible medium for them to carry out
professional marketing function beyond the basic sales operations. The net has
opened the door for small businesses with little capital to reach a worldwide
market. Open access results in lower entry barriers so that virtually anyone can
both access and provide services on the net. The net also re-defines economies
of scale, allowing small firms to achieve low unit costs of operating in markets.
In the hospitality sector the small firms could also have more cost-effective
marketing through the destinations web site. For this reason some scholars have
praised the internet as a marketers dream as it allows companies of different
sizes to compete on more equal terms. Nevertheless it must be noted that net
provides a level playing field for companies of all sizes only at the point of
entry that is to establish a web presence because the development of a fully
functional marketing and sales site and especially the promotion of the site to
increase visitor numbers requires huge investments.
In destination marketing it would be effective for a destination to develop a
sustainable electronic infrastructure that is capable of establishing a
comprehensive and multi-lingual website. This would provide potential tourists
with up to date information from a variety of sources, about the destination in
all aspects of tourism tourist attractions, transportation, accommodation, tour
operators and leisure facilities as well as the background of its people, culture,
history, economy and climate. The master destination database can be integrated
through hyperlinks with individual websites and with a suite of applications
which enable tourists to pick and mix their own holiday packages. As such a
mega-site could be the portal or the home page of other relevant sites in a
destination, it will be a great deal easier for the destination to establish itself in
the already crowded web-space. From this first stop of call, a visitor can search
for all the information as to whether to visit the destination, what facilities to

use and arrange for reservations and transactions online. In comparison, with
the traditional media, in order to get the relevant information a tourist often
needs to go to a travel agency to get a brochure, to a bookshop to get a guide
book, and may also contact the destinations national tourist office to get some
more information. While the printed literature the tourist gets is often outdated a
properly constructed and maintained website can provide right-to-the-minute
information.
Tourism industry is information intensive and information is often dubbed the
life-blood or cement of the industry which holds together the different producers
within the travel industry- airlines, tour operators, car rentals, cruise lines and
other supplies. In few other areas are the generation gathering, processing,
application and communication of information as important as they are for
travel and tourism industry. The perishability of tourism products and the often
erratic tourist demand make the task of balancing tourism supply and demand
more difficult than for any other sector. This is probably why tourism became
one of the first industries to widely apply IT and conduct electronic commerce
from the 1960s in the form of computerized reservations and global distribution
systems (GDSs).
A virtually unlimited amount of information can be stored at a web site and an
unlimited number of users can retrieve it at any time from anywhere in the
world. The web not only provides information it provides it from a much wider
range of sources; while in the past tourists were almost exclusively dependent
upon representations and descriptions by the travel trade. The web can support a
much greater variety of formats from text to photos, graphs, audio and video
clips, whereas in the past, tourists primarily relied on the printed broachers as
the limited copies of the videos of a destination were only available with major
travel agents. The web based electronic brochure can also facilitate the complex
process of choosing among hundreds of computer generated selections from
back-end databases linked to web-servers whereas printed broachers are usually
arranged and indexed one by one, often by destination. Through internet a
prospective tourist can also test drive a prospective holiday by viewing real
time scenes through cameras placed in hotels, clubs, restaurants, scenic spots
and other sites in the destination and downloadable clips can also show episodes
and scenes of festivals, art performances and service delivery to facilitate
tourists in comparison and evaluation of intangible services, the quality of
which he can assess in advance.
In the 1960s the CRSs and the GDSs had only improved the information
communication between tourist businesses, originally between airlines and
travel agents and they were expensive both to the tourism producer and retailer.
Moreover the systems were incompatible with each other and switch

companies such as THISCO (The hotel industry switching company) was

needed to connect hotels with all the major GDSs to facilitate room
reservations. With the effective use of Internet these problems are now
addressed effectively and cheaply. Having realized the tremendous potential of
the internet GDS companies have already started developing and improving
new web based systems to change the whole tourism distribution landscape in
the near future. For example, Amadeus launched Amadeus pro web in Jan 2000,
which is a browser based reservation tool allowing travel agents trade
worldwide without a dedicated communications line and at a greatly reduced
cost. In fact, with this system any internet user can become an online travel
agent within a week.
The cost of setting up a promotional web site (i.e. without booking facilities) is
relatively low. An average computer user, given a proper software package, such
as Microsoft Frontpage can build a basic site in days. The marginal cost of
adding an extra web page to the site is negligible. The more comprehensive and
powerful web sites, such as a destination site offers complete information - a
virtual multimedia brochure to include thousands of product offerings, and a site
which integrates information, reservation and transaction, will cost more and
take longer to develop. As compared to the tens of millions of dollars spent by
airlines, tour operators, and hotel chains on TV and magazine ads the web is a
low cost medium for promotion. The simple web presence, by allowing
customers to find answers to their inquiries themselves can also help to reduce
telephone charges based on toll free numbers.
The Internet also has a great potential for saving distribution costs. Distribution,
the selling and marketing of tickets, is one of the biggest cost items in the airline
industry. Airlines web-based ticket sale operations can at least eliminate the
travel agents commission. Internet based supply chain management can also
save procurement costs for businesses.
Now the researcher will find out how the various countries have put up a web
presence at the national level. Indias national tourism office has put up a
website called www.incredibleindia.com, to promote its incredibleIndia
campaign to get foreign tourists to visit India. It is a good portal though not an
exhaustive one. On its home page it promotes tours of north India, Goa , Kerela
Taj Mahal etc. On united states front we find the www.ustourism.com with the
map of U.S. functioning as the homepage and the 50 states working as
hyperlinks. An excellent portal. On the united Europe front we have the
www.Eurotourism.com an excellent portal which as homepage has a list of all
European countries and a map of Europe it is filled with hyperlinks to
individual countries and regions and then links to all facilities grouped under

hotel/inn, restaurant, activity/adventure, hostel/backpacking and many other.

For Africa we have www.southafricatourism.net and www.africatourism.com.
The south Africa tourism site is divided into international visitors, local
travelers, travel trade and business tourism. There are also descriptions about
and hyperlinks to the various wildlife parks of the region. A section shows this
week in South Africa and highlights events. The homepage shows video clips of
life in cities of South Africa. The Africa tourism website promotes safaris
overland tours and self drives. The scene in Asia is different there is no united
marketing effort. There is a www.tourism-asia.net with hyperlinks for
Singapore, Hong Kong, Maldives, China and South East Asia. There is also the
www.asean-tourism.com which promotes Brunei, Cambodia, Indonesia Laos,
Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. As regards
China the China national tourist office has a official website called
www.cnto.org which on its home page has China Visa, Tour operator locator,
mice tourism, travel info tips etc. A separate window provides hyperlinks to all
its cities. Another site www.travelchinaguide.com provides just the links to and
information of a number of Chinese cities and all the tourist attractions the
respective cities possess. Regarding Japan the national tourism office of Japan
has a website called www.jnto.go.jp. This is a truly multi-lingual site offered in
Japanese, English, French, Duestch, Portuguese and Greek. This site is different
in separate windows it informs about travel professionals, local websites, PDF
files of brochures of Japan, Japan tourist photo library, attractions of Japan,
History and Culture. A section called latest topics highlights different articles
dealing with tourist attractions in Japan, new immigration procedures, train seat
reservations, tourist information centers and all new relevant developments. It
constantly uptodated with to-the-minute information. As regards Australia
www.austailia.com is their official tourism site. It includes sections such as
explore by maps, getting around, holiday ideas, finding a travel agent, whats
on. A section deals with events. A section invites tourists to visit the great
barrier reef and goes on about its unspoilt qualities. Lastly a section gives travel
information on getting there, visas and climate.
Now the researcher will find out how the states of the Indian union are
marketing their tourism products on the internet. Surfing the internet
extensively the researcher found that practically every state of the union and
every union territory in India have dedicated tourism web sites sponsored by the
government. Many of the states which have a roaring tourism business like
J&K, Rajasthan, Kerela, uttranchal, and Himachal pradesh are also served by
private web sites detailing the charms of the respective state. As a representative
also of the websites of the rest of the states of the union the researcher will
focus on the websites pertaining to these high value tourism states. First of all
the official website of the tourism department of J&K is www.jktourism.org. On

one side hyperlinks lead to the sub-sections on Jammu, Kashmir and Ladakh on
the other side charms of the many seasons in the state are delineated. A section
below provides links to Gulmarg-asias winter sports destination, international
rafting competition-kashmir, memoirs of recent visitors, shrines and monuments
in Kashmir, tourism book review and tourism departments special schemes.
Himachal pradeshs official tourism website www.himachaltourism.nic.in is
better structured and provides all relevant hyperlinks on the homepage itself. It
informs about history, access, tourist destinations, travel tips, lakes , heritage
wildlife, religious tourism, eco tourism, adventure tourism, trek routes,
camping, picture gallery, fairs & festivals, guides for essentiality certificates,
home stay scheme-2008 and it also provides online HRTC bus ticket
reservations. There is also a special link showing Govt. authorized secure
online hotel reservation system. Email-id of the tourism deptt. Of Himachal
pradesha as well as an online toll free number has been provided. The website
of the tourism department of Rajasthan i.e. www.rajasthantourism.gov.in
promotes the state of Rajasthan as a whole. It praises the contrasts of its
landscape and its splendid architecture and describes it as the safest state in
India in terms of law and order. A section provides links to fairs & festivals.
Another section works with accommodations. Hyperlinks provide links to
sections informing about all cities and tourist spots in the state. A good point is
that hyperlinks giving contact details of all the important officers of DOT and
RTDC have been provided. Separate hyperlinks provide links with palace on
wheels, sound& lightshow- Chittorgarh, and tour programmes has been
planned. The official tourism website of the kerela govt. www.kerelatourism.org
is also a well planned site. Hyperlinks have been aesthetically placed on the site.
The site has a simple homepage without any flashy overtones. It provides
sections on travel info, tour packages and ayurveda and highlights kerela
beaches, waterfalls, wildlife,houseboats and the hill stations of kerela. All the
rest of the tourism websites of Indian states are patterned similarly.
If we focus on the international and domestic hotel chains in India we find that
they have got a very good web presence with reservation and booking facilities.
These hotel chains have got a formidable web presence: - the ambassador group
of hotels, Best Western group of hotels, Oberoi group of hotels, Casino hotels,
Clarks group of hotels, ITC welcomegroup hotels, Holiday Inn group of hotels,
ITDC hotels, Jaypee group of hotels, K Raheja group of hotels, Man Singh
group of hotels, Taj group of hotels and Tulip star group of hotels. All of them
provide room reservation facilities over the internet and can arrange all that is
requested by the guest via the web.
Heritage hotels of India are another exclusive category in themselves. They
have also used the web to position themselves strategically in the internet
hospitality industry space. Prominent among them are Umaid Bhawan palace-

Jodhpur, Noor us sabah palace Bhopal, Bassi fort- chittorgarh, Neemrana fort
palace-Neemrana/Rajasthan, Ramgarh Bunglows-Ramgarh, Piramal havelijhinjunu/Rajasthan, Udaipure Lake palace- udaipur, Udai Bilas palaceDungarpur in rajasthan, Raj Mahal Palace-Jaipur. These heritage hotels are all
old havelis or palaces of the Maharajas or rich merchants of old and have an old
world charm. These heritage properties have also established a noticeable
presence on the web.
A internet search on travel agents and tour operators in India shows 333,000
results. It shows the extent of internet penetration into the world of tourism
marketing in India. It is however lesser than say USA which for same key words
shows 3,220,000 results. However India is still a developing country and
computer usage and Internet penetration have a long way to go before reaching
saturation point.
A very popular site nowadays in India and used extensively for travel booking is
www.yatra.com. It facilitates domestic travel, international travel helps make
reservations on hotels, arrange holidays, arrange car rentals, and provides
bookings on flights through its site. It is also into corporate travel planning and
execution. It is a complete example of what a modern Indian travel agency
should aspire to be.
A new and interesting development in internet tourism marketing is the creation
of internet search engines dedicated to tourism. And most of them are still at the
development stage. And the few ones that have been developed cater to only a
designated country or a state. For example www.uptake.com is a search engine
dedicated to the tourism market in USA. Using this search engine you can
search for any tourism related facility in United States of America. There is
another tourism related search engine dedicated to U.K. But there is nothing like
this still for the tourism market in India.
Thus in the preceding paragraphs the researcher has tried to find out the impact
of internet on the tourism industry in India and internationally. The researcher
has tried to find out the compatibility of internet marketing with tourism and has
analyzed the scenario internationally and on the internet. In India the researcher
focused on the constituents of the tourism industry and how they were
leveraging the world wide web for their advantage. From his research the
researcher is convinced that internet marketing is going to be the dominant
marketing technique in the industry a few years down the line and the
businesses which dont adapt to internet marketing are only going to put
themselves in a difficult position. Hence the industry should go out to create a
strong internet presence but they should also synergies their efforts
appropriately as that would keep the long term returns coming.