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Consumer behaviour is known as the study of individuals, groups, or
organizations and all the activities associated with the purchase, use and disposal
of goods and services, including the consumer's mental, emotional and
behavioural responses that precede or follow these activities. It is a highly
important issue for all marketing activities which have the purpose to promote
and sell tourism products.
The tourism consumer behaviour can be defined as the ensemble of its acts,
attitudes and decisions regarding choosing, buying and consuming tourism
products and services, and also its post-consuming reactions.
Classifying the traveller’s decision process from a micro-perspective requires a
more discriminating approach. A novel tourist product and/or an inexperienced
tourist are likely to entail a process called extensive problem solving. In order to
arrive at a travel decision the tourist runs through a sequel of perceptual and
learning steps. On becoming aware of the new travel options he actively searches
for information, develops his choice criteria, sets up an overall attitude towards
the range of alternatives, establishes a preference for a particular tour operator
etc. A decision process known as limited problem solving alleviates the
traveller’s endeavour in avoiding conflict and coming to a conclusion. A
satisfactory amount of product knowledge and firmly established choice criteria
help in shortening the information-seeking period and reducing the decision time.
Preferences are stable and the main question is whether the favourite alternative
is still available. Loyalty vis- a-vis a tour operator, an agency, a resort/hotel or an
airline is quite common in travel behaviour. Conversely, impulse buying, another
type of consumer decision process is a rare phenomenon in travel and tourism.
Tourism we see is the origin from the Sanskrit literature.
It has given us three terms derived from the root word 'ATANA ' means 'Going
out'.
The three terms are:
Trirthatana
Paryatana
Deshatana
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Figure 1.1 Gangotri Figure 1.2 Yamunotri Figure 1.3 Kedarnath
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Deshatana: Going out of the country for economic and intellectual
gain.For example: For job. studies etc.
In simple words Tourism is act of travel for the three purposes Leisure, Pleasure
and Business. According to the World Tourism organization:
''Tourism comprises the activities of the person traveling and staying in the places
outside their usual environment for not more than one consecutive year for
leisure, business and other purpose".
The Usual environment is intended to exclude trip with in the place of residence,
work or education and daily shopping and other day to day activities.
TOURIST ATTRACTIONS
Tourist attractions have become an observable fact of our times. Tourist attraction
is a physical or cultural feature of a particular place that individual travellers or
tourists perceive as capable of meeting one or more of their specific leisure-
related needs. Attractions and the behaviours associated with them are one of the
most complex and highly structured universal codes co-creating modern
communities. Consumer requirements and the innovativeness of tourism
organizers have led to change and evolution on the tourist attraction market,
which have led in turn to this sector becoming more diversified. Tourist
attractions are dynamically changing in terms of form, location, style and scale.
There has been an up-trend in tourism over the last few decades. Tourists have a
wide range of budgets and tastes, and a wide variety of resorts and hotels have
developed to cater for them. Some people prefer simple beach vacations, while
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others want more specialised holidays, quieter resorts, family-oriented holidays
or niche market targeted destination hotels. The developments in technology and
transport infrastructure, such as jumbo jets, low-cost airlines and more accessible
airports have made many types of tourism more affordable. The WHO estimated
in 2009 that there are around half a million people on board aircraft at any given
time. There have also been changes in lifestyle, for example some retirement-age
people sustain year round tourism. This is facilitated by internet sales of tourist
services. Some sites have now started to offer dynamic packaging, in which an
inclusive price is quoted for a tailor-made package requested by the customer
upon impulse.
Travel motivations arise from social, personal, and cultural circumstances, or that
tourist motivations come from a "sum of factors" described in the chart.
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INDIAN TOURISM
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Travel and Tourism industry is still one of the largest single businesses in world
commerce and its importance is widely recognized.
The tourism industry is now one of the largest sectors earning foreign exchange.
In the face of many benefits, many countries have started assigning due weight
age to the tourism industry in their national development agenda.
Tourism is an industry that operates on a massively broad scale: it embraces
activities ranging from the smallest sea-side hotel; to air-lines, multi-national
hotel chains and major international tour operators. Originally, non-traditional
industries such as tourism emerged as a solution to strike a balance between
ecology and industry
Tourism is one of the world's fastest growing industries at present and
holds the status of the world's no. 1 industry.
Spending on tourism amounts to 5%-10% of total consumer, spending in a
year worldwide.
The tourism industry as a whole is presently estimated to earn over US$
3.5 trillion worldwide.
India's share of the total market is a pittance at 0.51%. The non- tourist
countries like Malaysia and Indonesia get much more tourists than India.
India's share of the total market is a pittance at 0.51%. The non- tourist
countries like Malaysia and Indonesia get much more tourists than India.
The Tourism industry's foreign exchange earnings in India are around $3.2
billion. Tourism is the highest foreign exchange earner if we consider the
fact that net value addition in Gems and jewellery is less than 30 %
whereas, in tourism it is more than 90%.
As per the Travel and Tourism Competitiveness Report 2018 by the World
Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd
overall, moving up three places on the list of the world's attractive destinations.
It is ranked the 14th best tourist destination for its natural resources and 24th for
its cultural resources, with many World Heritage sites, both natural and cultural,
rich fauna, and strong creative industries in the country. India also bagged 37th
rank for its air transport network. The India travel and tourism industry ranked
5th in the long- term (10-year) growth and is expected to be the second largest
employer in the world by 2020.
India has been ranked the "Best Country Brand for value-for-money" in the
Country Brand Index (CBI) survey conducted by Future Brand, a leading global
brand consultancy. India also claimed the second place in CBI's "best country
brand for history", as well as appears among the top 5 in the best country brand
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for authenticity and art & culture, and the fourth best new country for business.
India made it to the list of "rising stars" or the countries that are likely to become
major tourist destinations in the next five years, led by the United Arab Emirates,
China, and Vietnam.
3. Cultural and other festivals & events: Cultural, religious or other type
of events keep taking place everywhere in the world. There are many such
recurring events or festivals or gatherings which attract countless
enthusiastic tourists and travellers from across the world. In India in
February 2019 was the Kumbh Mela which saw around 20 million people
attend it and take a holy dip at the confluence of three holy rivers: the
Ganga, Yamuna and Saraswati in the city of Allahabad in India.
4. Sports and recreational sector and activities: People travel around the
world to attend various sports events or activities at different famous
places. People to cities famous for their winters and snow for sports like
skiing.
5. Tourism and travel trade services: This is the core services sector of
tourism industry. This sector covers organizations which provide various
travel and tourism services like complete tour packages, travel &
transportation bookings, hotel reservations, destination search and
bookings, etc.
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6. Transportation sector: Transportation sector is the very base and means
of tourism. Covering air, water, road and railways, transport sectors
provides the means to travel to various destinations.
8. Food & Beverages industry: Food & Beverages sector plays a very
unique role in tourism. Just like hotels & accommodation, tourists also
need the wide ranging services of food & beverages industry. This is not
just limited to the hotels tourists stay in. Restaurants, takeaways, etc. also
play an important part here.
Food & beverages are also one of the attractions of a place and a type of
tourism. Food tourism is one of the types of travel where people travel to
places which have famous local food and flavours.
9. The MICE sector: The MICE sector is a wide industry in itself that draws
various visitors from across the globe. People travel to attend business,
professional and other type of events. There are so many different types of
events happening all over the world in different cities every day. This
sector boosts the whole tourism industry and is also one its important
segment.
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Adventure tourism, in general, is defined as the type of tourism that encourages
an individual to come out of his/her comfort zone by engaging in thrilling
physical, natural or cultural activities.
In the recent years, Adventure tourism in India has shown a phenomenal growth.
Exploring various exotic places and trying out adventurous activities like
trekking, rock climbing, kayaking, paragliding and much more are part of
adventure tourism.
The most exotic and adventurous destinations identified by The Ministry of
Tourism in India include Ladakh, Himachal Pradesh, Assam, Arunachal Pradesh,
Kerala, and Jammu and Kashmir.
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Figure 1.11 Wildlife Tourism
Medical Tourism Package
The medical tourism in India, for the past few years, has gained the attention of
the people around the world. The ancient medical science — Ayurveda and other
alternative medical practices which are recognised as highly effective for several
chronic diseases, are now attracting people from every nook and corner of the
globe due to the cost effectiveness and success rate.
The favourite destination for medical tourism in India is Kerala which offers
Ayurveda as well as Allopathy packages.
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The major reason that attracts tourists to India is the traditional temple
architecture, art forms and rituals performed. Varanasi is the major hub for all the
devotees to explore the Hindu history and rituals. Sabarimala in Kerala is also a
well-known destination among pilgrim travellers.
Other pilgrimages in India like Meenakshi temple, Golden temple, Sun temple,
Jagannath temple are the famous Hindu pilgrim center while churches like Santa
Cruz Cathedral Basilica, Basilica of Bom Jesus, Velankanni Church and mosques
like Atala Mosque, Makkah Masjid, Palayam Juma Mosque are also famous
pilgrim centers amongst Christians and Muslims respectively.
The communal harmony in India is also a thing that needs to be commented.
Pilgrim packages can be chosen based to your religious beliefs.
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Figure 1.14 Eco Tourism
Cultural Tourism Package
The social richness of the country draws the visitors from every corner of the
world to witness sheer celebrations. Grand monuments delineating structural
brightness of past time alongside the throbbing ethnicity makes India stand apart
from the rest of the world.
The cultural tour packages offered here gives you a comprehensive exploration
of the different shades of Indian culture. This package will bring a tourist close
to colorful facets of Indian traditions and architecture.
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So do you wish to escape from the bustling city boulevards to relaxed waterways?
Cruise tourism is one of the fastest and dynamically growing sector of the tourism
industry in India.
Cruise tourism permits tourists to explore beautiful riverside villages, undisturbed
sacred islands and sights that will captivate and intrigue their senses.
The major hub for cruise tourism in India is Kerala. There are also other
destination like Mumbai, Goa, and Chennai which offers cruise tourism.
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Figure 1.17 Wellness Tourism
Family Tourism Package
Spending time with family is always the best feeling. And nothing can be better
if that family trip destination is one of the places in India.
The family tourism in India offers all kind of activities like visiting the cultural
destinations, a cruise ride, enjoying the scenic beauty of eco-tourism places,
experiencing the wildlife and getting high on adventure tourism.
Any place in India can be visited with your family because of its “the guest is
equivalent to God” code of conduct and its colorful places.
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opportunity to have fun, to get to know each other more and have a good start to
a lovely and romantic married life.
If you want your honeymoon destination to have the right mix of adventure,
sightseeing, beholding natural vistas etc, then pack your bags to India.
The Scotland of India- Coorg, the God’s own country — Kerala, hushed and
isolated Lakshadweep islands, or lively and exuberant Goa, India is the perfect
destination to spend a time with the most important person in someone’s life.
The honeymoon package in India can vary according to the destination you pick
amongst the states in India.
You can book from any of these packages when you plan on visiting India. From
heritage sites to offbeat destinations, you can hunt down the history and culture
of India.
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As an uncertainty in customer demand leverages this issue, hotels and travel
agencies tend to overbook available rooms and seats. Finding an alternative
product for the customer and living with the consequences of overbooking is
statistically more economical.
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 mood
of the chef. It is always about the experience that the customer makes. Rational
product attributes like price, nights of stay, and additional services can only be
compared to a minor degree. It is challenging to deal with the customer perception
of the product (the perceived quality) as it is highly affected by numerous
uninfluenceable aspects such as weather, construction sites, other customers etc.
Hence, the product is very inconsistent and cannot be standardized.
Investment and immobility
Talking about hotels and other accommodations there is usually a big capital
lockup in the assets. Hotels have furniture, restaurants, TV-sets, laundry-service,
pools, and saunas etc. – invested capital that has to pay off.
And that’s not all – all those investments are attached to one locality which means
that those tourism companies are to a huge extent dependent on the attractiveness
of the region, the country, its surroundings and so forth.
People-oriented
The tourism industry builds entirely upon people. The interaction between the
staff and the customer determines the perceived product quality. Unlike tangible
products where the customer buys certain features, production quality, durability
etc. the holiday quality results from personal interactions starting with the
information and booking process over the stay up to the journey home.
Intangibility
Tourism products are intangible. A night in a hotel, a day in a ski-resort, the calm
flight with the nice attendant, and the smiling tour-guide taking you to the peak
of an alpine mountain – all this cannot be touched. Tourism is all about the time
spent and the experience made. The products sold by tourism companies either
can’t be reproduced or reused. Nor can the feeling of consumption be captured to
its full extent.
Inflexibility
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Travel products are fairly inflexible in terms of fluctuation. Hotels cannot change
their capacities quickly enough to react on spontaneous fluctuations in demand.
Hence, such companies try to balance between high and low demands, so that it’s
not too much of a pain for the company when restaurant tables remain empty and
for customers when there are no more tables available.
Classification
Tourism may be classified into the following types.
1. Inbound International Tourism:
It means visiting to a country by non-resident of that country.
3. Internal Tourism:
It means visiting by residents of a country to their own country,
4. Domestic Tourism:
It consists of inbound international tourism plus internal tourism.
5. National Tourism:
It consists of internal tourism plus outbound international tourism.
Company profile
About The Company:
YAADIGO NETWORKS is one stop travel house; exploring the world can be
one of the most rewarding experiences in life. However, planning a trip can be
extremely frustrating especially when one doesn't know where to start. The
company understand travel needs of all and deliver the best through meticulous
planning.
Traveling with YAADIGO is all about escaping the ordinary to truly appreciate
the extraordinary. lt's about bringing people together or taking them away, about
discovering the world or getting lost in it.
YAADIGO brings together a highly trained team of individuals with over two
decades of experience in the travel industry. A team which has the confidence
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and the expertise to handle the most complex and challenging tasks they are faced
with.
YAADIGO is a travel agency of repute established in the year 2010, with a
professional outlook in the competitive world of today.
They have numerous certificates of accreditation awarded by all the major airline
carriers such as Swiss Air, British Airways, Cathay Pacific and Air India. They
are recognized by the Department of Tourism, Government of India and are
members of:
-International Air Transport Association (IATA)
-Pacific Asia Travel Association (PATA)
-American Society of Travel Agents (ASTA)
-Indian Association of Tour Operators (IATO)
-Travel Agents Association of India (TAAI)
Services of the company includes:
Domestic and International Air Travel:
The company operates Group Tours in all divisions i.e. Outbound, Inbound
and Domestic. Each tour is different in the number of days and
destinations. All the tours are pre-planned i.e. the dates of departures and
arrivals are fixed in advance for all the tours.
Inbound Group Tours are operated by the company, they organize for
accommodation, air travel, coach, car, guides and excursions for foreign
tourists travelling in groups from the size of 15 to 45 persons on a pre-
booked itinerary. They cater to these varied demands arising from clients
outside India. Some of these tours handled by them are theme led tours like
gardens of the world, natural history, art treasures, etc.
Under FITs they provide customized holidays which have flexibility and
are designed to suit the customer needs unlike group tours which are
standard in nature. They believe this product though complex has good
demand and requires better planning and execution to meet individual
needs. They have experience in handling complex requests associated with
FITs and have a unique internet program that allows and facilitates
complex itinerary planning and booking capability.
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Leisure travel is increasingly being used as an incentive tool by many
organizations to convey appreciation for recognizing achievers. It has dual
benefits, one by providing a holiday that enables an executive to unwind
and recharge and the other serving as a reward for excellence that inspires
the team. . Their incentive division works closely with the client to
tailor-make a program best suited to his needs and budgets.
The incentive division amongst other services assists in selection of a
destination, providing a choice of airlines using the most economical route
and complete logistic support on ground. Such programs are organized
within India for foreign clients or domestic clients or overseas for a
domestic client.
They cater to all aspects of conference organizing, business meetings,
event management, seminars, exhibitions, product launches and incentives.
Every event is designed to meet specific requirements right from the pre-
event preparations, during the event itself and through to post-event
settlements. Their expertise in this segment with extensive planning and
considerable research ensures that their customers have the most
comprehensive travel experience.
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Chapter – II
Literature Review
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“Consumer behaviour is the study of individuals, groups, or organizations and the
processes they use to select, secure, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society [1]. Consumer behaviour has been always of great
interest to marketers. The knowledge of consumer behaviour helps the marketer
to understand how consumers think, feel and select from alternatives like
products, brands and the like and how the consumers are influenced by their
environment, the reference groups, family, and salespersons and so on. A
consumer’s buying behaviour is influenced by cultural, social, personal and
psychological factors. Most of these factors are uncontrollable and beyond the
hands of marketers but they have to be considered while trying to understand the
complex behaviour of the consumers. Consumer is the study “of the processes
involved when individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experiences to satisfy needs and desires”. In the marketing
context, the term „consumer ‟ refers not only to the act of purchase itself, but also
to patterns of aggregate buying which include pre-purchase and post-purchase
activities. Pre-purchase activity might consist of the growing awareness of a need
or want, and a search for and evaluation of information about the products and
brands that might satisfy it. Post-purchase activities include the evaluation of the
purchased item in use and the reduction of any anxiety which accompanies the
purchase of expensive and infrequently-bought items. Each of these has
implications for purchase and repurchase and they are amenable in differing
degrees to marketer influence [2].
Consumer behaviour about decision making is difficult to define and is a system
of short cuts and rule of thumb which is unpredictable. The short cuts in decision
making vary from person to person and focusing on the past experience of
consumers [3]. A central question in consumer behaviour research is how
consumers make purchase decisions. Most discussions of purchase decision
making assume a high-involvement, rational process, although several authors
have distinguished a variety of other forms of purchase behaviour
[4].Intangibility is one of the most important characteristics of services, they do
not have a physical dimension. Often services are described using tangible nouns
but this obscures the fundamental nature of the service which remains intangible.
The performance of most services is supported by tangibles the essence of what
is purchased is a performance, therefore as it is the process of delivering a service
which comprises the product. The implication of this argument is that consumers
cannot see, touch, hear, taste or smell a service they can only experience the
performance of it. The second characteristic of services is the inseparability of
the production and consumption aspects of the transaction. The service is a
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performance, in real time, in which the consumer cooperates with the provider.
The degree of this involvement is dependent upon the extent to which the service
is people-based or equipment-based. The inference of this distinction is that
people based services tend to be less standardized than equipment-based services
or goods producing activities. Goods are produced, sold and then consumed,
whereas services are sold and then produced and consumed simultaneously. The
inseparability of the role of service provider and consumer also refers to the lack
of standardization since the consumer can alter both the way in which the service
is delivered, as well as what is delivered, which has important implications for
the process of evaluation [5]. As tourism industry sectors concerned, consumer
trust was largely examined in hospitality sectors, especially in hotels and
restaurants. Consumer trust in tourism and hospitality was operated at micro level
and even contended that consumer trust can only be operated through individual
actions. Trust comes from individuals’ perceptions of characteristics of
organizations/people, and individuals hold the keys to understand factors
influencing consumer trust in a mutual relationship. As such, consumer trust in
the literature is called “reported” or “perceived” trust, since it measured by asking
respondents to report the presence or absence of trust toward the certain object.
However, it is worth noting that the development of customer trust varies
according to the trusting targets, organizations or human beings [6].Given the
economic stimulation effects of the tourism industry and the social and
environmental problems which emerge with tourism development, governments
in different countries have become increasingly involved in tourism
administration and have also assumed the roles of legislator, coordinator, planner,
entrepreneur, promotion actor, researcher, and public interest protector. The
macroeconomic and political environments were identified to be the main forces
which have determined the roles and degree of involvement of government in the
tourism sector. For example, noted that the more important tourism is to
economic development or economic recovery, the more support government will
give to the tourism industry [7]
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Chapter – III
Research Methodology
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Objectives of the study:
Research Objective:
Study the Consumer Behaviour with regards to Travel and Tourism in India.
Research Problem:
Sampling Size: 84
The information which was seeking from them was to predict how modernize
their way of travelling is. They were asked,
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Have much familiar they are with online travel assistance options?
How they like to travel more?
Is India a favourable destination?
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Chapter – IV
Data Analysis and Interpretation
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Marketing mix with tourism industry
Product
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Product is the combination of tangible and intangible elements. The tourism
product, which is mainly the destination, can only be experienced .The views of
the location travel to the destination, the accommodation and facility as well as
the entertainment at the destination all form the tourism product. Thus it is a
composite product combination of attraction, facilities and transportation. Each
of these components has ·its own significance in the product mix and in the
absence of even single components, the product mix is incomplete.
Price
Pricing of the tourist product is a complex matter because of its composite nature.
Geographical location of the destination affects the pricing decision. At the same
time, seasonality factor and varying demand cannot be overruled. The objective
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of pricing in any other firms is to fetch a target market share, to prevent
competition, and to take care of the price elasticity of demand.
A very important way, in which the travel and tourism business responded to their
highly complex pricing circumstances, is to operate at two levels. The first level
corresponds with the marketing strategy, which concerns with the product
positioning, value for the money, long run return on investments etc. The second
level corresponds to the marketing operations or tactics where the prices are
manipulated to match the current demand and competition.
Place
The range of tourist products, which are bought by the tour operators are airline
seats, hotel acconm1odation , bus for local sightseeing, etc. they may also sell
directly to customers. The latest mode of reaching the tourist is through Internet.
Ticket booking can also be done through the Internet and payment is made with
credit card.
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Promotion
Advertising and sales promotion activities in tourism can be very effective when
supplemented by publicity and personal selling. Advertising messages may range
from subtly attractive visual messages and symbols designed to appeal and
stimulate travel desire and needs to simple sales announcements drawing
attention to specific product offers.
People
It plays a most important part in tourism. In people, local people are very
important, that how they treat tourist. The travel agents, guides, staff of travel
companies, sales staff, etc., are also the people. Other sectors also like Railways,
Air, etc. is included in people. Normally a tourist assures a tourism quality like
hotels.
The personnel who attend to the needs of the tourists form an essential ingredient
in tourism marketing. The sales personnel are responsible for dealing with the
customer behind the counter. The airline and transportation crew interact with
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customers while traveling. The resort or hotel representatives enter to the needs
of the tourist when they reach the destination.
The tourist guides, who interact with the customers at the tourist location, all form
the people element in tourism marketing. These contract persons must be trained
on interpersonal skills as well as knowledge of the product. In the tourism
industry the travel agents and the travel guides are the two most important people
who speak a lot about the industry. Hence it is imperative that they have to be at
their best at all times. Travel guides especially, are expected to have a lot of
patience, good sense of humor, tact to transform the occasional tourists into
habitual ones, thorough knowledge of the places, linguistic skills etc.
Process
The operation process of the tourism firm will depend on the size of the tourism
firm. The sequential steps involved in the delivery of the tourist products are:
Planning and costing tours ---- Once the contracts and arrangements
are entered into, then the task of planning and costing the tour, this
will depend on the tour selected as well as individual requirements.
Physical Evidence
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The tourist attraction, which is expensive for the customer must be tangibilize
with the help of tangible items like, comfortable seats while traveling, layout, and
design of the resort, natural service scope, 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 also
form a part of the physical evidence.
Printed matters such as brochures also play an 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 shows
how different elements of the programs are carefully planned to include all
necessary information to make holiday establishes expectation of quality value
for money, product image and status, which must be matched when the product
is delivered.
Market Segmentation
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Though there are a number of bases for segmentation of tourists, one of the most
important is lifestyle. Traveling decisions are fantastically influenced by
changing lifestyles. They are also affected by other factors such as level of
income, availability of leisure time, etc.
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Table 4.2 Basis of Segmentation
The mass market consists of vacationists that travel in large groups and
prefer all- inclusive tours. They are generally conservative.
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Strengths
India is not only a vast country but also a beautiful country with
world famous natural locations, which attracts .lots of foreign tourist
every day. India bas all types of seasons at the same time because of
its tropical nature, as you will find the climate hot, humid, cold and
warm all at the same time in different locations. Also its location is
not very out of reach but easy to travel, as there are many modes of
transport to reach here.
Weaknesses
It is a major drawback. It is not the case of less money but the money is
not being utilized in the right places and in the right manner. The
airlines in India, for example, are inefficient and do not provide basic
facilities at airports. The road condition in India is very bad.
This is among the people who do not like the foreigners and their entry
into the Indian Cultures as they feel that they will change the Indian
Culture and attitude and replace it with foreign culture.
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and this has proved very costly as foreigners still think of Indians as
illiterates and narrow-minded.
Opportunities
This is going to develop and build the confidence in the minds of the
foreigners who would like to explore India.
Indian tourism will only develop if the roots are strong. So if the Indians
themselves travel around India the foreigners will feel confident to
come to India. For e.g.: Thomas Cook says "Travel Now, Pay Later."
Affordable traveling at leisure, plenty of job opportunities.
Threats
As a result of this people are afraid to venture outside their own homes
for fear of terrorist attacks and threats to their lives.
There are hardly any tourists who confidently come to India and if the
other countries offer better packages and places then there is no reason
why the tourists should visit India.
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toning up infrastructure and then getting down to marketing the product in a
pragmatic and result oriented manner. All segments of the tourism trade should
get together and hammer out a strategy taking into account the ground realities
and demands of the future.
India is the 8th largest country in terms of contribution to travel & tourism GDP.
The sector generated USD 247.3 billion (INR 16.91 trillion) in 2018, growing
6.7% during the year and accounting for 9.2% of the total economy. The country
is largest market in South Asia and has been the key driver for growth of the
sector in the region. In 2019, the sector expected to grow by 8.5% to contribute
INR 18.34 trillion to the economy and account for 9.3% of the GDP. Further by
2029, it is forecast to grow at 6.7% p.a. to reach INR 35 trillion and taking its
share to 9.6% of GDP.
The country has seen significant jump in the Travel & Tourism Competitiveness
ranking by the World Economic Forum, rising from 65th position in 2013 to 40th
in 2017 making India one the most improved nations. India excels on parameters
such as natural resources (24th), cultural resources and business travel (9th) and
price competitiveness (10th). Further, e-Visa initiative has helped India climb up
14 places in the International Openness parameter to 55th position. Certain other
parameters, although have seen improvement, which negatively impact India’s
rank are business environment (89th), health and hygiene (104th), ICT readiness
(112th), safety and security (114th), human resources and labour market (87th)
and tourist service infrastructure (110th).
India has also emerged a tourism powerhouse in WTTC Travel & Tourism Power
and Performance Report 2018. India has been ranked 3rd in Travel & Tourism
Countries Power Ranking which are based on 4 key indicators: total travel &
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tourism GDP, foreign visitor spending (visitor exports), domestic spending, and
travel & tourism capital investment.
The sector has also emerged as 3rd largest foreign exchange earner for the
country11. In 2018, Foreign Exchange Earnings (FEE) from tourism stood at
USD 28.9 billion (INR 1.97 trillion) which accounted for 5.4% of the total
exports. The contribution is further expected to increase by 6.8% in 2019 and rise
by 5.6% p.a. by 2029 to reach INR 3.63 trillion. However, India ranks 14th in
terms of absolute FEE and 122nd in terms of share of visitor exports in total
export. India is also the 3rd largest globally in terms of investment in travel &
tourism with an investment of USD 45.7 billion (INR 3.12 trillion) in 2018,
accounting for 5.9% of national investment. This is expected to increase by 9.4%
in 2019 to INR 3.42 trillion, and further rise by 7.4% p.a. till 2029, taking the
share in national investment to 6.1%
The Indian tourism sector is likely to grow at 6.7% per annum to reach INR 35
trillion with 9.6% of GDP, according to the Yes Bank-FICCI report titled, ‘India
Inbound Tourism: Unlocking the Opportunities’ released at the inaugural of the
Great Indian Travel Bazaar (GITB) in Jaipur on April 28.
The growth in Indian travel and tourism sector has largely been driven by
domestic tourists, and foreign tourists still account for a limited share as
compared to some of the top-ranking countries. In this regard, the report suggests
that the government needs to achieve its ambitious target of 1% foreign tourist
arrivals by 2020 and increase it to 2% by 2025.
The report enlists that the sector generated USD 247.3 billion (INR 16.91 trillion)
in 2018, with a growth of 6.7% and accounting for 9.2% of the total economy.
Currently, it is the 8th largest country in terms of contribution to travel and
tourism GDP and the largest market in South Asia.
Moreover, the reported has suggested the below measures across multiple fronts
to make India a tourism Superpower.
40
2. Creation of National Tourism Authority & Advisory Council
The report further highlights that the tourism sector generated 26.7 million jobs
in 2018. By 2029, the sector is expected to provide employment to nearly 53
million people, directly and indirectly. Foreign Tourist Arrivals (FTAs) crossed
10 million in 2017 and the growth trend is expected to continue. Consumption by
domestic tourists remains the key strength of the sector in India, much stronger
than the global average. Growing disposable income, increase in new millennial
tourists, new travel destinations as well as new themes of tourism will further
propel the growth.
FICCI-Yes Bank report also states that the systematic growth, maintenance and
sustainable development of tourism destinations as well as focus on promoting
the emerging avenues of tourism will be essential towards unlocking its true
potential.
The growth in Indian travel and tourism sector has largely been driven by
domestic tourists. Foreign tourists still account for a limited share as compared to
some of the top-ranking countries. The government intends to achieve the
41
ambitious target of 1% foreign tourist arrivals in world’s international tourist
arrivals by 2020 and increase it to 2% by 2025.
Going forward, there is a greater need for the Government and private sector to
collaborate towards thematic development of the destinations, skilling of local
communities and the conceptualisation and implementation of developmental
initiatives for the sector.
Foreign Tourist Arrivals from India’s top 10 source countries (excluding citizens
of Bangladesh) grew at a CAGR of 5.24% during 2013-17 with the US and the
UK being the two largest source markets. Australia was the market where India
witnessed highest CAGR of 10.31% followed by Malaysia during 2013-17.
Russia reported the strongest growth in 2017, with 22.46% growth over the
previous year and 2.78 lakhs tourist arrivals, followed by Australia at 10.43%.
Among the top 10 markets, China was the only market that witnessed marginal
dip of tourist arrivals over the previous year indicating a need to adopt focused
strategy to tap this important market which accounts for one fifth of tourism
receipts worldwide with US$ 258 billion in 201713. For instance, Australia has
developed China 2020 strategic plan to boost inbound tourist arrivals from China
through various interventions14. Australia further entered into an Open Skies
agreement with China to boost air capacity between the countries.
42
1. How often do you travel outstation?
10
36
Once in a year
21
Once in 6 months
Once in 3 months
Every month
Every week
13
20
INTERPRETATION
Out of sample size of 84 people, 36% of people travel once in a year, only 20%
people travel once in 6 months, whereas only 13% people travel once in 3 months,
21% of people travel every month and only 10% people travel every week.
43
2. How do you plan your trip?
47 By yourself
Through a travel agent
53
INTERPRETATION
About 47% of people responded that they travel by themselves, whereas the other
53% of people responded that they travel through a travel agent.
44
3. What is the main purpose of your travel?
6
5
Family vacation
18
Adventure
Business
Health
57
Religious
14
INTERPRETATION
When asked about the purpose of trips they make, 57% people responded that it’s
mostly family vacations, other 14% answered that its adventure while 18% said
that they do it for the business point of view. The other 5% and 6% people defined
their purpose as health and religious.
45
4. Where do you go most often?
24
Hill stations
Beaches
50 Deserts
13
INTERPRETATION
About 50% of people commented that their most preferred destination are hill
stations, for 24% people its commercially busy places, for 13% it’s deserts. While
for 8% and 5% it’s historically significant places and beaches.
46
5. Do you travel internationally or domestically?
24
International
Domestic
Both
10
66
INTERPRETATION
Out of the sample collected, 66% people prefer international people, while 24%
people prefer both international as well as domestic & rest 10% domestic only.
47
6. With whom, do you travel most often?
21
Family
2
Friends
Colleagues
59 Alone
18
INTERPRETATION
About 58% of people prefer making visits with family members. While 21% like
to travel alone, 18% travel with friends, and only 2% with colleagues.
48
7. Where do you like to stay?
11
Expensive hotels
25
Economy hotels
Resorts
64
INTERPRETATION
49
8. What is generally the length of the trip?
11
28
13
1-2 days
3-5 days
A week
A fortnight
A month
18
30
INTERPRETATION
Out of the sample size of 84, about 28% of people stay for 1-2 days, closely
followed by 30% going for 3-5 days, 18% staying for a week with 13% staying
for a fortnight and 11% for a month or so.
50
9. Do you think India is favourable destination for the tourist?
33
Yes
No
67
INTERPRETATION
The majority with 67% of the respondents often think that India is favourable
destination for the tourists whereas, 33% of the respondents think that India is not
favourable destination for tourists.
51
10. Have you used any online travelling website?
27
Yes
No
73
INTERPRETATION
Out of 84 respondents, 73% of people responded that they have used online
travelling websites for their travel whereas, 27% of people responded that they
don’t use any online travelling websites for their travel.
52
Chapter – V
Conclusion and Findings
53
Through this project we came to know about the current scenario of tourism
industry in India with respect to the world. We also came to know about
Yaadigo Networks, it`s brands, how Yaadigo Networks uses the 7P`s of
marketing and how it segmented the market. This project analyses the SWOT of
Yaadigo Networks. In spite of having so many strengths, Yaadigo Networks
also have so many weaknesses like shortage of branches and offices across
India, ineffective customer services & lack of marketing. In order to avoid any
inconvenience to its customers, it should open new branches, more effective
online ticket booking facilities and focus on small cities and towns.
From this research it is clear that, most of the tourists prefer India as the tourism
destination to spend their holiday time and among these people think twice to
choose India as the tourism place in terms of their financial position. Few aspects
like tickets and total expenses to spend in India are considered while making their
decision and from the findings it is clear that almost half of the respondents
interviewed consider these aspects before visiting India. When the tourists are
asked regarding the distance consideration, most of them replied that distance is
not at all a factor when they are planning for a holiday trip and they always look
for the hospitality and surviving conditions in India. Reputation of the country
also plays an important role against the consumer behavior and it is proved from
the findings as most of the tourists prefer India as the level of reputation in
attracting the tourists is on the top level and also the accommodation provided in
India is at corporate level. Cultural attraction also plays a vital role in attracting
the tourists from different countries and from the findings it is clear that all most
all the respondents interviewed prefer India as the culture and the activities at the
tourism spots are excellent in nature and thus it can be understood that culture
plays an important role in estimating the consumer behavior towards tourism.
Apart from these core aspects, the key issues like security and safety also plays
54
an important role in estimating the consumer behaviour towards tourism and from
the analysis of the findings it is clear that, most of the tourists think a while about
their safety as India is prone to frequent terrorist attacks and thus in aspects, India
is losing ample customers against their tourism.
From the overall analysis it is clear that consumer behaviour against the tourism
is mainly affected by the factors like safety, cost of trip and the cultural attractions
at the tourism destination and when these aspects are related to India, it has
provided the maximum to the tourists and need to improve and refine the policies
against safety measures for the tourists in future.
55
Chapter – VI
Suggestions and Recommendations
56
Tourism is service industry and the quality of service makes all the different
between competing destinations. A comprehensive human resource development
programme should be a key element of future policy. Such programme of human
resource development should also cover orientation of the staff at airports,
customer's facilitator, and guides etc. on continuous bases.
Future tourist choice will be guided by various factors that create an image
about the country and particularly state. Issues of environment and ecological
preservation, human right violation, drug abuse, child sex abuses etc. will be
important factors in such decision process.
57
Chapter – VII
Bibliography
58
[1]. A. Abdul Brosekhan, C. Muthu Velayutham.Consumer Buying
Behaviour – A Literature Review. IOSR Journal of Business and
Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668,
PP 08- 16.
[4]. Mark Gabbott & Gillian Hogg (1994) Consumer behaviour and
services: A review, Journal of Marketing Management, 10:4, 311-324.
[5]. Liang Wang, Rob Law, Kam Hung, Basak Denizci Guillet.
“Consumer trust in tourism and hospitality: A review of the
literature”. Journal of Hospitality and Tourism Management 21 (2014)
1-9.
en.wikipedia.org/wiki/Tourism_in_India
www.yaadigo.in
59
ANNEXURE
QUESTIONNARE
Personal Information
Name:
Gender:
Occupation:
E-mail ID:
Country:
a) Once in a Year
b) Once in 6 Months
c) Once in 3 Months
d) Every Month
e) Every Week
a) By Yourself
a) Family Vacation
b) Adventures
60
c) Business
d) Health
e) Religious
a) Hill Stations
b) Beaches
c) Deserts
a) International
b) Domestic
c) Both
a) Family
b) Friends
c) Colleagues
d) Alone
a) Expensive Hotels
61
b) Economy Hotels
c) Resorts
a) 1-2 days
b) 3-5 days
c) A week
d) A fortnight
e) A month
a) Yes
b) No
a) Yes
b) No
62