Sita Tours And Travels Tourism Essay

Sita Tours And spark offs touristry EssayThe touristry Industry is a flourishing wholly everyplace the military personnel. The scenario of the tourism industry is ever changing it is always in a state of flux. Tourism Industry in India is experiencing a high period of gain and has change over the years however there is still a lot of scope for improvement and expansion. It is fast becoming an important player in the planetary commercialise. It is in like manner proven that tourism is the industry that contributes most to the Indian GDP, employment and conflicting exchange reserves. The tourism industry proves to be the back-bone of different allied sectors for example, hospitality, transport, handicrafts, and so on match to WTTC, in 2011, India has been ranked 1st in direct sh atomic number 18 to employment by dint of die and tourism and 2nd in total contribution with monetary value of 24974900 jobs and 39351900 respectively. Also in terms of GDP, India ranks 11th i n direct contribution and 12th in total contribution2. The Indian organisation has invested a substantial amount in infrastructure development to enkindle tourism for the country after sensing the importance in the GDP contribution. This labor has been successful to an extent in increasing the arrival of foreigners in the last decade. The Incredible India campaign was also a contributing factor to the increase in tourism. The campaign helped create a colorful and diverse image of India in the minds of extend enthusiasts all over the world. It has directly led to an increase in the occupy among tourists and created interest generally around the world.WTTC ( domain Travel and tourism Council) ranked India 4thin terms of move and tourism investment with a total of $ 26.7 one zillion million million3. Also (in Asia), after China, India stands second. In 2006, 4 million international tourists visited India and spent US $ 8.9 bn4. In 2011 (Jan-June), the total Foreign touring car Arrivals (FTAs) in India was 2.92 million and foreign exchange revenues stood at US$ 78.11 billion which is up 14.2%5. As a matter of fact, in spite of a negative growth stride of -2.2% in 2008-096, Foreign Tourist Arrivals increased considerably which registered a growth rate of 8.1% in 2009-107, despite the world recession, Indian tourism showed a positive growth. According to World Travel and Tourism Council, India will be a tourism hot spot between the years 2009 -2018 which will show maximum growth rate during this period.Nowhere in the world is found, much(prenominal) a beauty, different and diversified climate, flora, fauna, religions, languages, dialects, dressing patterns, life style and rituals, like India.8Domestic tourism is also in truth huge in the GDP contribution in the country. There is still a lot of scope in promoting the tourism in umteen spells of the country. Since tourism is seasonal, it is slightly difficult for the Tourism Department, Government of Indi a. It is Indias middle class that has promoted the tourism in the country. The increase in disposal income among this class of concourse has contributed to rise in tourism within the country. Consequently, they spend most of their disposable income on travelling. In 2009, there were 669.02 million domestic tourists which comprised ab push through 18.8% of the total tourists in the country. The Indians going abroad is also increasing at a growth rate of 12.28 % per annum.Scope of TourismAccording to the past trends, India has seen to contribute 0.5% to the global tourism industry. There is still a lot of scope for businesses to tap the market. India has a very diverse geography, culture, food, monuments and a cryptic past. The Incredible India campaign was promoted in nightclub to attract dissimilar interests from tourists all over the globe in the varied types of tourism that has a scope for development and promotion. In recent times, Pilgrimage and medical examination Tourism be one of the most popular among the foreign tourists. Medical tourism is currently growing at around 30% per annum. The other types of tourism areAdventure Tourism unfilled TourismEco TourismCultural TourismWildlife TourismHighway TourismHeritage TourismRail TourismRural TourismAn Indian Background chairman of the company, in 1956 established the first office in New Delhi, India. Company wanted to take the benefits of the sacred beliefs attached with their companys name SITA in India. It is still associated with high quality and brand. In 2000, Kuoni Travel Holding, a Switzerland based tourism firm acquired the 100 % stake of SITA World Travel India (Ltd.) and it became Indias largest travel company as Kuoni Travel India Ltd. Now, SITA World Travel is an Inbound Division of the Kuoni Travel India Ltd. And It is handling incoming international tourist to India from all over the world through a network of 30 offices in the region including associate offices in Sri Lanka and Nepal. SITA earned its reputation by giving world class services to its clients travelers, tour operators and the corporate houses. Also it has spareized itself by providing personalized service and close working relationship with its customers around the world.Factors which affect travel destination selection9Things to do and seeSafety and securityOverall image of the holiday destinationTourist facilities and infrastructureEase of obtaining VisasSWOT divulgelineStrengthMass market product with small profit margin and economic of scale to create profit even though demographics and changing consumer trends discipline academyProviding customized packaged toursPersonalized customer supportOnline booking of packagesOffices in major cities of IndiaWeaknessPeople expectation has changed but their packaged tour has not changedPrice of hotel is rising no solution between cutting slim margin and rising price to customersLimited only to main destination spots, postulate to cover more groundPro per feedback system not in placeOpportunityPeople go on holiday more than forwardTravelers want exotic destinations or short city breaksIncrease in number of tourists because of upcoming sports eventGovernment lending support as part of Incredible India campaignIncrease in disposable incomeThreatsHeavy Price competitionPeople wait till last minute for bargaining uprising hotel rates all over the worldGeneral economic slowdown and terrorist attacksLocally established travelling companiesPEST AnalysisPoliticalThe strongest reason of tourists see India is its rich and vast cultural heritage which is under the control of Archaeological Survey of India. So any changes in policy have a very major impact on the tourism industry. Political instability in many states also hinders the tourism opportunities. E.g. north east is still out of coverage of SITA travels because of this very reason. Although the government is now taking up various measures like stepping up vigilance in major tou rist destinations in order to promote India as a safe tourist destination.EconomicThis industry thrives on the spending power of the people. The spending power is increasing in the country as well as all over the world. This increase in the spending power has left a good amount of idle cash in hand. This has led to a tourism boom and more and more people are now coming into the country with more cash and better affordability. amicableTourism is seen as something that will ultimately lead to the destruction of the social fabric. It is perceived that more the number of people travelling into a place, the more is the fortune of the place to lose its identity. But apart from that people have now started perceiving tourism as a form of recreation. They are now more impulsive to go for packages like adventure tourism to Leh and Lakshadweep.TechnologyAlthough it is does not seem to be great factor but it plays a major role. Better technology has resulted in connecting many remote and un explored areas. On the same terms online booking and transportation facilities provided by SITA travels have increased their number of clients.PORTERs Five Forces mannikinThreat of New EntrantsAs the search cost has been reduced due to the advent of internet it opens up the market for potential entrants, thereby increasing the theory of a new company joining the market as the entry barrier has been reduced.Rivalry among Existing Firm within the IndustryThe major competitors of SITA Travels in India are Kesari Tours, Cox Kings India LtdAs the number of companies is increasing due to the advent of internet and the competition is increasing because of geographical expansion of markets and the reduction of entry barrier, thereby raising the rivalry and indeed increasing the discount. big businessman of SupplierEntry barrier reduction and increased competition results in the increase of the power of supplier.Power of BuyerReduction in switching costs has increased the bargaining powe r of the buyer.Price has become an important criterion as people now can compare products and gain knowledge about them.Threat of SubstitutesCompetitors offer similar type of products and services.SegmentationTourism (Inbound and Outbound tourism)Segmentation types Psychographic segmentation (Class), behavioural segmentation (User status First time, Regular, Potential). SITA is a large segment market addressing the customer needs of the international tourists.TargetingInternational Tourism Initially tourists from the States are targeted, as SITA has stronger links with USA (Origin). Later they focused on other international markets like UK, Japan and Hong Kong. They have started a magazine called INDRAMA. This magazine portrays the rich tourist literature there by attracting foreign tourists to India). The idea of Heritage village further helped them to become a better tourism facilities provider. Inbound and outbound tourists are the tourist types of International tourism.Market g rowth of inbound and out bound touristsOutbound market The primary target market segment is out bound tourism.Overall Market The total market size of the out bound tourism in 2010 is 12 million. It is expected to cross 20 million by 2015 and 50mn by 2020 (Source UNWTO) more than 6.29 million tourists visited India in 2011. The total revenues of the out bound travel market is $14bn in 201010. The Indian outbound travel market has grown from 3.7 million in 1997 to 9.8 million international departures in 2007 the pace of growth has accelerated since 2004 at an average annual growth rate of over 16%11Inbound marketOverall Market share The total market size of inbound tourism is 6.18 millionwith a growth rate of 8.9%.The total revenues generated rounds off to US$ 16.691 billion.Competitive Intensity The major competitors of SITA Travels in India are Kesari Tours, Cox Kings India Ltd which has more share than SITA while the others are Thomas fixate India Ltd, Karnataka State Tourism Dev elopment, Mercury Travels Ltd, Raj Travels Tours Ltd, D Pauls Travel Tours, Sachin Travels and Goa Tourism Development.High budget Customers The program Affordable India targets the High budget segment tourists who come to Indian subcontinent. This program provides value added services to high budget travelers in order to customize destinations which were luxurious and affordable12Positioning strategiesIndias first Leisure travel brand(Luxury segment) (Jan 2006)Tourist Safety with SITA (Mumbai) ( 2006)Indias Destination management service provider ( June 2006)Indias tourist destination for Business travel (Kuoni Business travel) (Feb 2007)Tourism education (Kuoni honorary society) (May 2007)Young achievers Out tally , Outdoor school trips ( 2009-2010)Perfect moments with Kuoni (2011-2012). This program covers 3 packages The world is mine Romantic escapes undiscovered destinationUniform service Accommodation, updating tourism infrastructure, travel related equipments same in all t he offices to maintain uniform serviceEnpact ( 2011- 2012 Kuoni Academy Pioneers to introduce a new teaching methodologyOut of the ordinary bicycle tours for everyone (2012) ( Targeting individuals and small groups)Responsible tourism ( 2012) ( Thru CSR activities)Indian travel brand which is focused on the luxury segment, Incentive, Trade Fair tours and SportsTourism DepartmentsIn order to visualize the tourists demand of visiting various places, SITA has tie ups with local agencies. The services offered by the local agencies are meeting passengers on arrival/ departure, arranging local visit and transport. SITA is maintaining a wide agency network to handle inbound and out bound tourism. The tourism department in SITA is divided in to two sectors as beneathInbound toursThis is the main foreign exchange earnings department of SITA. The marketing for this segment is done through various ways as belowBrochure Tours Marketing in the form of brochures ( Tour plans in brochure)Tailor made tours Customers design their tourSpecial interest tours Organized by companies and other agenciesConferences and conventions Arranging travel, registration facilities, accommodation arrangements, conference facilities, entertainment and leisure activities.Out bound toursThis is one of the fast growing tourism segment markets in India. Indians are the target customers in this segment. With an increase in the income level of the people, they are showing interest in visiting other countries. The tourist destination for the Indians is primarily USA and Europe13Indian out bound travel market is 3.7 mn in 1997. Currently it is 13mn (2011-2012)Estimated $28billion revenue in the year 2020.Fastest growing out bound market in the world in terms of numbers (After china)SITA Out bound tourism marketingMajor sources of marketing are through brochures and advertisements in the newspapersOut bound division of SITA received TAAI travel award for 201114.MARKETING MIXPRODUCT (Services Brand)W hile planning the market offering, SITAs marketers focused on five elements that constitute its customers value hierarchyCore ProductsDestinations are the core products offered by any tour operator. Those offered by SITA are classified intoInbound Leisure SITAs major portion of foreign exchange is earned by this group. These destinations are designed to focus on leisure while travelling. Apart from must-do destinations these embarrass trig tours such as Cultural and Heritage Tours, Trekking and mountaineering Tours, Wildlife holidays, wellness and spa holidays, etc.Individual Travel SITA has maintained an unparalleled expertise in customizing travel packages for foreign tourists or working professional expecting a well-tailored itinerary which optimizes their time and ensures that all arrangements are in order.Incentive Travel Handled by Distant Frontiers knowing for large companies to motivate or stimulate their employeesBriefs are taken from each group, tailored to suit their ne eds and surpass their expectations by offering them special events planned exclusively for each travel groupPost-trip follow-up approach to stay in touch with the customer and ensure a re-visitMain destinations accommodateIndiaNepalSri LankaBhutanM.I.C.E. Meetings Incentives Conferences ExhibitionsSITA is a member ofThe International Congress and Convention Association (ICCA) a worldwide body that handles all types of International Meetings and ExhibitionsThe India Convention Promotion Bureau (ICPB)The purchase order of Incentive Travel Executives (SITE)ChartersLeading player in India with the largest number of charters to Goa and TrivandrumHandles leading charter operations from the UK, Germany, Russia, Poland, and various CIS countries.CruisesMajor players in Cochin, Chennai, Goa, and MumbaiShore Excursions- Regular sight-seeing tripsoverland Tours- Designed to explore the deep interiors of IndiaAdventures Camel Safaris, cycling, trekking, scuba-diving, rafting, biking, mou ntaineering holidays designed especially for intrepid travelersBasic ProductsTransportGround transportationFlight reservationsTrain reservationsAccommodation cultivation cuisinesSpecial arrangements- Like Womens Group, Senior Citizens Tours, etcConferences and Events- In collaboration with MICEGround assistanceMeet Greet servicesTour GuidesTour EscortsExpected ProductsThese are spick-and-span services for corporate clients likeSeat availabilityon needed timeAccurate informationQuick check-in for the senior management entropy about various package and routes to a particular destinationEfficient customer support systemAugmented ProductsThese are the products that distinguish SITA from others. These may include special facilities like Wi-Fi availability throughout the journey, tele-checking, laptops on request, customized meals, etc.Potential ProductsSITA plans to come-up with underwater tourism very soon.PLACESITA has its own branches situated throughout India hence are easily acce ssible. The customer can either go to the Tour office or plan a tour online. Hence strategic locations are very important for SITA.North India Agra, Delhi, Jaipur, Gurgaon, Varanasi, UdaipurSouth India Bangalore, Chennai, Cochin, Trivandrum, HyderabadWest India Mumbai, GoaPROMOTIONThe promotional strategies employed by SITA travels areAdvertisingPublicitySales promotionsPersonalized products such as Flight bags, wallets, Foreign Exchange and covers of passport, etcWord-of-mouth PromotionCredibility The high magnitude of this is due to high credibility of SITAs channel, especially in the eyeball of the potential tourists.Sensitivity The qualities of services they promise are world-class and client-orientedApproach The marketers hold off their eyes open identify the opinion leaders Special facilities for them to keep stimulating and creating demandPersonal SellingExhibitions- State and national tour packages, cruises, holiday financing, hotels, educational excursions, etcE-Marketin gTwitterLinkedIn- http//www.linkedin.com/company/155449Facebook- http//www.facebook.com/SITAWorldToursCSR Activities- Responsible TourismSpiti Initiative- To build a Solar Bath for a Buddhist nunnery in SpitiChild Protection- Carries out workshops to protect children in rural and semi-urban parts of the country. Also offers training to children in various educational fields.Literacy India Program- Has an independent paper recycling unit where women work to earn their living.Bihar Flood Relief- Using its transportation system, it worked closely with Goonj to dispatch necessities to the flood affected areas in BiharLets Go Green- Implemented across all offices through posters and Green Utility trays.Creative Alliance Network- promotes responsible tourism practices amongst the businesses that benefit from Rajasthans rich cultural environment. citizenryEmployeesWell versed with the latest technologies in travel managementWell trained to handle difficult customersExtensive training progr ams- SITA Travel Tourism AcademyTraining on courses conducted by WATA, PATAHigh credence quality viaGood work place designJob DesignOther CustomersCaters to customers from diverse backgrounds by offering First class, Deluxe, or Luxury preferencesSITA Travels Online supportUnique Tours and value-added servicesPersonalized customer supportBibliographyWorld Tourism Organization and the European Travel Commission. (2009). Retrieved from http//publications.unwto.org/sites/all/files/pdf/090616_indian_outbound_travel_excerpt.pdfIndian Tourism Department. (2010). Retrieved from http//tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/2010.pdfKuoni. (2011, December). Retrieved from http//www.kuoniindia.com/press-2011.aspSITA World Tours. (2012, January 20). Retrieved from http//www.sitatours.com/press/sitaaffordablerelease%20012611.pdfEconomyWatch. (2010, June 30). Economy Watch. Retrieved from http//www.economywatch.com/business-and-economy/tourism-industry.htmlMol, A. (n. d.). Preserve Articles. Retrieved from http//www.preservearticles.com/201103084425/essay-on-tourism-industry-in-india.htmlOlivia Ruggles-Brise, E. A. (2012). World Travel Tourism Council. Retrieved from http//www.wttc.org/site_media/uploads/downloads/nepal2012.pdfProf. Manjula Chaudhary, D. S. (2011, August). Indian Institute of Tourism Travel Management. Retrieved from IITTM website http//www.iittm.org/doc/IITTM_ITC_Report-2011-rev..pdfReshma S Kulkarni, S. S. (2011, November 26). The Hindu. Retrieved from http//www.thehindu.com/life-and-style/travel/article2659391.ece?homepage=true