Service Industry- TOURISM-

 

 Service Industry- TOURISM-

 a Tourism Industry may be defined as a group or cluster of small firms which deals in providing attractive and affordable holiday packages to its customers, either within a state, country or at international level.

 Its boom time for India’s tourism and hospitality sector.

A 5,000 year history , culture ,religion and alternative medicine fascinate both budget and luxury travelers alike.

The focus of the industries on the “Atithi Devo Bhavah”campaign, targeted at the inbound foreign tourists in the country. Translated literally this means “Guest is God”.

  Perishability:

the products/services in the tourism industry are consumed as they are produced.

 Inconsistency: products of the tourism industry always differ.

Even the same hotel room in the same week with the same weather can be perceived differently due to the mode of the chef.

 Investment and immobility: talking about hotels and other accommodations there is usually a big capital lockup in the assets.

  People oriented:

tourism industry entirely depends on people. The interaction between the staff and customers determines perceived product quality.

 Inseparability: most travel products are first sold and produced and consumed at same time.

This is an aspect which clearly set tourism apart from tangible products.

 Intangibility: tourism products are intangible.

 Inflexibility: travel products are fairly inflexible In terms of fluctuation

 Imitaility: offers and products by tourism industry are easy to copy.

 Incredible India –

Under this program the govt create promotes India through various integrated marketing programs.

Atithie Devo Bhava – Under this program the govt create awareness among Indian people who come in contact with the tourist.

Various Infrastructure building initiatives.

Encourage religious tourism.

 STRENGTHS

• Pleasant Weather .

• Ideal Geographical location.

• Good Image of the Company.

• Good Hospitality.

 Lack of proper Marketing & Advertisement.

• Dependency on Third Party.

• Lack of adequate Infrastructural support.

• Funds constraining the development of region.

 The concept of holiday is gaining popularity in India among various classes of people.

Increased disposable incomes of the Indian middle class. Adventure sports & trekking.

Eco-tourism is gaining popularity.

 

 Stiff Competition among various Tourism Industry.

Environmental factors also impose a threat.

Exploration of new tourist spots and hubs.

 

• It lay emphasis on the use of complex and sophisticated technology in order to promote and market tourism industry.

• The use of mass media, internet, magazines and presentations so as to advertise the company.

• Providing customers with easy payment facility via online and use of credit cards and wi-fi facility on the go, easy recharge of mobile phones etc.

 

India’s GDP will exceed Italy’s in 2020, France’s in 2020 Germany’s in 2025 and Japan’s in 2035 Goldman Sachs Projections (US 2003 $ Billion)

According to World Tourism Organization estimates, India will lead in South Asia with 8.9 million arrivals by 2020

India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the world over 2005-14 according to the World Travel & Tourism council.

• It includes those factors which have to be followed strictly by law (both; the customer & the tourism department).

• Issues related to conservation of Environmental laws and regulations, issue of tourist visas to international customers, holding of license by the tourism company , rules & regulations etc.

  Tourism in India is the largest service industry, with a contribution of 6.23% to the National GDP and 8.78% of the total employment in India.

 India witnesses more than 17.9 million annual foreign tourist arrivals and 740 million domestic tourism visits.

The tourism industry in India generated about 100 US$ billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

 In the year 2010, 17.9 million foreign tourists visited India. Majority of foreign tourists come from USA and UK.

Tourism creates jobs for local people.

 It also increases the income of other businesses that supply the tourism industry.

Tourism is important to the economy of both rich and poor countries e.g. tourism in France generated 35 million euros In 2006 and 2 million jobs.

Poorer countries tend to be more dependant on income from tourism than richer ones.

 Health tourism

 Sports tourism

 Educational tourism

 Beach tourism

 Backwater tourism

 Leisure tourism

 Adventure tourism