Growth Drivers

Increased inbound tourist arrivals Increased business travel due to growing economy Favorable Government Policies

Growth Drivers
Rising domestic leisure travel High demand for quality rooms Increased medical tourism

Inbound tourist arrivals

Foreign tourist arrivals (FTAs) in India have increased as India continues to be a favoured tourist destination for leisure, as well as business travel. FTAs have increased at a CAGR of 8.1 per cent between 2004 and 2009.

Top 10 countries for FTA in India

Percentage share of States in India

Foreign Exchange Earning from Tourism in India

GDP

Employment

Role of Travel Agencies

Pts to be included : 1) 2) 3) 4) 5) Act as middlemen Facilitating transactions Fix a rack rate which includes their comission Tie ups etc Corporate tie Ups

Other Travel agencies

Hotels

Tie Ups

Airlines

Local Authorities

Shreenathji Holidays Catering to Dubai Only

Caters exclusively to retail travel agents Exclusive tie up with DTCM ( Dubai Tourism Govt Body ) Enjoys a virtual monopoly in dubai market for Indian clients.

Govt. policy Promoting tourism in a big way in dubai Tax free ( so ppl set up businesses there and hence regular visits) Vision : No. 1 tourist hub by 2015 and hence tie ups with Shreenathji Easy Visa for tourists DTCM gives them annual funds for promotional activities and also helps them get discounts from hotels etc.

Places

Reasons of just catering to Dubai

Weddings Commercial Purpose ( Business visits ) Exhibitons Shopping Just 2.5 hrs from India

Pricing

Season

Off Season

Peak Season

Months

May to Sept

Remaining Months

Package Rate

RS. 20K

Rs. 26K

Marketing Strategies

Off Season
Kids get to for free ( Under 14 ) 2 Kids with 2 adults get to go free ( a Dubai govt initiative) Tie up with Atlantis which gives a room for $ 400 during offseason and $ 700 during peak season

Peak Season
Book the room 6 months in advance getting in a discount of 14.14% Create Awareness about the packages amongst the clients mainly through fliers Tie ups with Radio city where in their advertisements cum in radio FM

Surprise gifts, discounts etc

Impact of foreign Exchange on travel Agencies

1. 2. 3. 4. 1. 2. 3. Foreign exchange is an important component for travel agencies with O/S operations All the foreign exchange transactions are routed via a bank Bank charges its own commission while facilitating a transaction based on following factors: Rate charged by other bankers Currency in which payment has to be made/ received Awareness of the agency Volume of the transaction Agencies can pass on the cost to the O/S party in the following conditions: Agency is in a better bargaining position O/S party is not aware / price sensitive Amount is fixed in INR (Invoice value)

Outflow of Money from India

Scenario 1 : Indian Party Bears the Banking cost
IBR : Rs. 44.8/ USD Rs. 4500000
Travel Agency in India Banker of the agency

USD 100000

Deposit Bank Rate : Rs. 45/USD

Banker of the overseas party (say Hotel)

This 20 paise/ Dollar has to be borne by travel agency in India

Scenario 2 : O/S party Bears the Banking cost

IBR : Rs. 44.8/USD Travel Agency in India Rs. 4480000 Deposit Banker of the agency USD 99555

Banker of the overseas party (say Hotel)

This 20 paise/ Dollar has to be borne by O/S Party

Bank Rate : Rs. 45/USD

Drawbacks
direct income= Total Expenditure Leakages Leakage= taxes, profits, and wages that are paid outside the destination spot About 80% of travellers' expenditures go to the airlines, hotels and other international companies, and not to local businesses or workers. Smaller trickle-down effect on local economies

Leakage

Solution
Training :Devising local training programmes and establishing educational projects. One should train the local people instead of foreigners to become guides due to their knowledge of the area and resources. Local Inputs:To constrain foreign exchange leakage, those responsible for the tourism projects should ensure that local inputs are purchased for their projects. A proper examination of local resources available will be beneficial for both the industry and the local residents. Loans on interests:The industry should also promote and support local communities to start tourism-related businesses and grant access to low interest loans. Legal Contracts:Empowerment of residents at tourist destinations by providing written and legally binding contracts between local people and tourism investors