25.marketing strategies tourism industry (2)

Tourism Industry

In India, industry growing at the rate of 15 to 20%.

By Dec 2012, estimates that India’s forexearnings from foreign tourists will cross $ 12 billion.

Government allowed 51% foreign equity in hotel industry.

India – rated as top 5 tourist destinations in the world.

Understand the product-customer relationship.

Tourism Products – attractions people expect to experience away from home.

Strategy developed in relation to target segment of market

Service – people dependent Customer perception crucial.

Market penetration Create a differential advantage in pricing or

promotion or both Find out a package for a specific need

segment Reach new classes of tourists

Size of Segment Marketing strategies of competitors Different tour packages offered to customers

– eg. 3 nights, 2 days stay in Singapore & Malaysia.

- a package tour for schools / colleges

Carlson Wagonlit followed this model. Thomas Cook adopted the in plant service

model. Employee of Thomas Cook shall be available at

the client site for the whole day and will take care of all travel arrangements of all employees.

Titan, Novell, Texas Instruments are the clients of Thomas Cook.

Thomas Cook also opens dedicated branches where there is scope for business.

New Product Development Value addition for customers Source of Service Differentiation NPD process – Feedback survey, exploration

survey

Be near the customer and grow the business. Recruit experienced staff and train them On the job training + training with the help of

external consultants

Competition Increase in overheads Opportunities also increasing Main focus on corporate travel. Now leisure travel market in India expected

to grow between 13 – 15%

No advertisements

Simply improve customer service

Increasing levels of disposable income

Satellite TV – increase of western influence

Society transforming from a conservative (savings mindset) to consumeristic (spend money) mindset

Corporates offering foreign travel to best sales persons

Look at leisure travel management too

Advertisement about new package tours –media advertisements

Revise marketing budget

Complete range of travel services Customer Service Wide network International operations Employee empowerment Close contact with corporate world Strong shareholder support

Higher overheads Lack of marketing competence No personalised relationship with individual

traveller Small network within India

Higher growth rate of leisure travel Rising affluence of Indian middle class Holiday abroad – status symbol Overlap between corporate and leisure travel More money More leisure time Need for greater Work-life balance

Entry of other MNC services Lateral competition from Timeshare resorts Low cost operators in unorganised sector Generic competition Cost cutting in organisations

Core businesses – leisure travel, forex, business travel, card products

Opened offices in Sri Lanka, Mauritius (SAARC) region

“ CLICKS & BRICKS” – business model in which a company integrates both offline (bricks) and online (clicks) presence, additionally telephone support.

Thomas Cook started a new internet services division.

Destination guides, Maps, travel tips, weather.

Also, a study abroad guide Travellers choose from a range of holidays,

tours, cruises, weekend packages and special airfares.

Services can be purchased on line. Customers have a choice of 60000 hotels world wide

Travellers cheques, currency notes, drafts, forex – all these can be ordered online for home delivery, along with travel insurance that can be made available on line.

24 x 7 call center at Chembur, highly technology intensive.

Video Conferencing facilities too.

What strategies should Thomas Cook adopt to become market leader ?

What are the opportunities available ? How can they exploit opportunities in

growing leisure travel business in India ? Is advertising only in print media, the right approach.

Compare the pros and cons of advertising versus direct sales.