MARKETING STRATEGIES OF TOUR PACKAGES IN KERALA - A CASE STUDY OF KERALA TOURISM DEVELOPMENT CORPORATION (KTDC) KERALA
THESIS
Submitted for the Award of the Degree of Doctor of Philosophy
In COMMERCE
By MUSHTHAQ AHAMMED K
Under the Supervision of Prof. S. HUSAIN ASHRAF Ph.D.
DEPARTMENT OF COMMERCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA)
2010
to my loving family
Declaration
I, Mushthaq Ahammed K, do hereby declare that the Ph.D. thesis entitled “Marketing Strategies of Tour Packages in Kerala – A Case Study of Kerala Tourism Development Corporation (KTDC) Kerala” submitted for the award of the degree of Doctor of Philosophy in Commerce is based on my research work and the thesis has not formed the basis for the award of any other degree or diploma.
Aligarh (Mushthaq Ahammed K ) 4th December, 2010
Phone: External: 91-571-2702661 Internal: 3010/3505/3506 Prof. S. HUSAIN ASHRAF Department of Commerce Ph.D. ALIGARH MUSLIM UNIVERSITY Aligarh- 202002 (U.P.) INDIA
Date : ………………….
CertificCertificateateateate
This is to certify that Mr. Mushthaq Ahammed K has completed
his Ph.D. thesis entitled “Marketing Strategies of Tour Packages in
Kerala - A Case Study of Kerala Tourism Development Corporation (KTDC) Kerala” under my supervision. To the best of my knowledge and
belief, the work is of original in nature and is suitable for submission for the
award of the degree of Doctor of Philosophy (Ph.D.) at the Aligarh Muslim
University, Aligarh, India.
(S. Husain Ashraf )
------Residence : Taj Akber, Diggi Road, Aligarh 202002 Phone: 91- 571- 2703989 Email: [email protected] PREFACE
As tourism is the fastest growing industry in the world, it has become one among the world’s most competitive industries. The competition is increasing day by day since more and more countries seek to attract tourists and more companies and organisations become involved in the highly skilled business of transporting, accommodating and catering for tourists. Just as any other products tourism too needs to be marketed persistently, as it is an industry in which the customer still has an immense variety of choices. Tourism organisations are adopting newer methods, techniques and strategies for marking tourist destinations and the products and services associated with tourism.
The concept of tour package is one among such innovative marketing methods adopted by several organisations across the globe. At present it has become a major contributing factor to the growth of tourism industry in India as well as worldwide. The increasing growth of tourist inflows in Kerala is also significantly influenced by the tour packages conducted by the travel agents, tour operators and other government and private tourism organisations such as Kerala Tourism Development Corporation (KTDC) etc. Tourist surveys and studies in Kerala brought into light that about 14-20% of the tourist inflows in the state are through tour packages offered by such organisations and agencies.
KTDC, the government agency to undertake tourism promotional efforts in Kerala, has been designing and developing varied tour packages and other tourism products in order to identify and market all the beautiful spots and destinations in the state. Even though the Corporation has undertaken several marketing and promotional effort in the state, much of Kerala’s enchanting tourist places and spots are still remain unexposed to the nature lovers. KTDC, hence, should be very vigilant in formulating and implementing tourism marketing plans, policies and strategies for its varied tourist products and services in order to accomplish the stated objectives. The plans, policies and strategies thus formulated would be helpful to take the state to the pinnacle of socio-economic development. Through this study, therefore, the researcher made an earnest attempt to investigate the marketing strategies adopted by the Corporation for its varied tour packages offered in Kerala State.
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For giving the study a systematic and articulate outlook, it is divided into seven chapters. The first chapter consists of the introductory background, statement of the problem, review of literature, objectives and hypotheses, methodology and design of the study. The second chapter explores the concepts and philosophies of marketing strategies of tourism products and tour packages by different scholars and outlines the different marketing strategies which can be applicable for tour packages. Chapter 3rd consists of two sections. Section first analyses and discusses the performance of Kerala tourism industry with regard to the tourist inflows and generation of income from tourism in the State. While the latter section analyses the resource potential of Kerala tourism industry with special focus on the attraction dimension. Chapter four analyses and sketches out the organisational structure and overall operations of Kerala Tourism Development Corporation with special focus on the marketing function and operations. It also estimates KTDC’s contribution to tourist inflows in the state by way of tour packages with the help of a simple random sample survey. Fifth chapter focuses on the marketing strategies of tour packages in Kerala state with special reference to Kerala Tourism Development Corporation. It analyses and evaluates the various strategies adopted by KTDC for marketing tour packages Chapter six analyses empirically the satisfaction levels of tourists both domestic and foreign. It presents the results of various statistical analyses in the form of tables and figures. The last chapter highlights the major findings of the study in a summarised form and put forward important suggestions based on the major findings. The last part of the thesis contains bibliography and appendices which include two set of questionnaires administered to tourists and the details of the conducted tours and tour packages offered by the Corporation.
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ACKNOWLEDGEMENT
In the name of Almighty Allah, the Cherisher and Sustainer of the world who taught us the use of pen. I prostrate in obedience with all my humility before the Almighty who blessed me with strength to embark upon this task of keeping in realms of facts and events.
I greatly rejoice to express emphatically with profound sense of gratitude and highest veneration to my reverend supervisor Prof. (Dr.) S. Husain AshrafAshraf, Department of Commerce, Aligarh Muslim University, Aligarh. His skillful guidance, constructive criticism, magnificent devotion and incessant encouragement have been the perennial source of inspiration from the inception to the completion of this study. I am grateful to him for his intellectual generosity and prudent suggestions without which the thesis would not have seen its present form.
I do wish to express with sound perception of esteem my sincere thanks to Prof. Sibgathullah Farooqi, Dean, Faculty of Commerce and Prof. Badar Alam IqbalIqbal, Chairman, Department of Commerce, AMU for their persistent encouragement, valuable guidance and providing me adequate facilities to complete this work in time. Special thanks are due to Prof. Ziaddin Khairoowala, former dean, and my beloved teacher Prof. Nawab Ali Khan for their sagacious and illuminative advices, which enriched the content of this research report.
I am awfully obliged to Dr. Vinod Kumar, Associate professor, MES Mampad College (University of Calicut, Kerala), Dr. Noushadali P.M, Chairman Department of Library and information Science, Dr. Saseeb Athar, Assistant Professor, Department of Statistics, and Mr. C.M Joseph Benzy, Deputy Manager (Marketing), KTDC for their priceless assistance, support and brainwave in furnishing the input material to accomplish this study. I place on record my unreserved and sincere gratitude to the staff of Department of Tourism, Government of Kerala; Department of Tourism, Government of India; Kerala Tourism Development Corporation (KTDC); District Tourism Promotion Councils; KTDC Hotels & Resorts; and University of Calicut.
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Sincere gratitude is also due to the tourists who honestly cooperated in conducting the surveys and the authors whose works helped me in enriching my thesis.
I will never forgive myself if I fail to express my inexplicable gratitude to my parents, elder brother and other family members for their constant support and encouragement. They always showered their blessings on me and acted as a pillar of strength at each and every movement in my life. I am equally thankful to my parents- in-laws for their prayers and blessings and for being a source of inspiration.
Mere words are not enough to express my feelings of indebtedness and appreciation to my wife Francila for her unabridged support and encouragement without which my dream could not be materialized. My daughter Isha Azmin needs special citation for her forbearance, unconditional love and affection which gave me the required zeal to finish the work in time.
All of my friends need special praise for their large hearted, gracious, jovial and fun- loving attitude towards me during the entire course of this study. Mohammed Musthafa K, Shibu K. M, Salahudeen E and Jafer Iqbal need special mention for their timely help in carrying out this study. There are numerous other names which I am unable to pen down because of limited space. I hope this is understood that while there is no limitation of feelings for gratitude, there are some in finding words to express them.
I am also thankful to the staff at the Department of Commerce. However, I have no words to express my gratitude to the staff at the departmental library and computer lab.
Last but not the least I put on record, my special thanks and appreciation to UGC for taking care of my financial needs during the strenuous years of this study.
((( Mushthaq Ahammed K ))) Aligarh 4th December, 2010
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TABLE OF CONTENTS
Chapter Content Page No.
Preface i - ii Acknowledgement iii- iv Table of Content v - ix List of Tables x- xi List of Figures xii - xiii Abbreviations/ Acronyms xiv - xv
Chapter Introductory Background, Research Design and 01- 41 1 Framework of the Study
1.1 Introduction 1 1.1.1 Global Tourism Industry 2 1.1.2 Indian Tourism Industry 4 1.1.3 Kerala Tourism Industry in Nut Shell 7 1.2 Background of the Study 9 1.3 Statement of the Problem 10 1.4 Review of Related Literature 11 1.4.1 International Scenario 12 1.4.2 Studies in Indian Scenario 19 1.4.3 Studies in Kerala Scenario 27 1.5 Research Gap 28 1.6 Need and Significance of the Study 29 1.7 Scope of the Study 29 1.8 Objectives of the Study 30 1.9 Hypotheses of the Study 31 1.10 Methodology of the Study 32 1.10.1 Research Approach 32 1.10.2 Sources of Data 32 1.10.3 Data Collection Methods 33 1.10.4 Tools for Data Collection 34 1.10. Sample Design 34 1.10.6 Data Analysis 34 1.11 Limitations and Delimitations of the Study 35 1.12 Design of the Study 36 References 39
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Chapter Marketing Strategies of Tour Packages: Concepts 42-85 2 and Philosophies 2.1 The Concept of Marketing 42 2.2 Service Marketing 46 2.3 Tourism Marketing 48 2.3.1 Defining Tourism Marketing 48 2.3.2 Tourism Marketing Process 50 2.3.3 Objectives of Tourism Marketing 52 2.3.4 Rules for Successful Tourism Marketing 53 2.4 Tourism Marketing Triangle 56 2.5 Tourism Marketing Planning 58 2.6 Tourism Marketing Strategy 61 2.6.1 Strategy: As a Concept 61 2.6.2 Marketing strategy 63 2.6.3 Tourism Marketing Strategy 63 2.6.4 Tourism Marketing Mix 64 2.7 Marketing Strategies of Tour Packages 68 2.7.1 Tour Packages: Conceptual Analysis 68 2.7.2 Evolution of the Concept 69 2.7.3 Types of Tour Packages 69 2.7.4 Steps in Developing tour Packages 71 2.8 Marketing of Tour Package 73 2.8.1 Marketing Plan for Tour Packages 74 2.8.2 Tools and Techniques for Marketing Package 76 2.9 Steps in Determining Marketing Strategy 76 2.10 Marketing Strategies for Tour Packages 80 2.10.1 Go for Growth Sector 80 2.10.2 Specialize 80 2.10.3 Develop a Vigorous New Product Policy 80 2.10.4 Concentrate on Building a Brand Name 81 2.10.5 Tap an Undiscovered Goldmine 81 2.10.6 Renovate a Decaying Product 81 2.10.7 Turn Clients from Ciphers into Human Beings 81 2.10.8 Go for Quality 81 2.10.9 Offer the Widest Possible Product Range 82 2.10.10 Push and Pull Strategy 82 2.10.11 Generic Strategy Models 82 2.11 Conclusion 83 Reference 84
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Chapter Performance and Resource Potential of Kerala 86- 126 3 Tourism Industry 3.1 Introduction 86
3.2 Kerala as a State 86 3.3 Kerala: Myth, Legend and Chronicle 87 3.4 Kerala as a Tourist Destination 88 3.5 Kerala Tourism Industry 91 3.6 Performance of Kerala Tourism Industry 91 3.6.1 Foreign Tourists Arrivals (2001-2008) 93 3.6.2 Domestic Tourist Arrivals 95 3.6.3 Tourist Arrival in Kerala: 1996 to 2008 98 3.6.4 Earnings from Tourism in Kerala 100 3.6.5 Awards and Recognitions 102 3.6.6 Chief Promoters of Tourism in the State 103 3.7 Resources Potential of Kerala Tourism Industry 105 3.7.1 Beach Tourism 105 3.7.2 Backwaters 106 3.7.3 Wildlife Tourism 106 3.7.4 Hill Stations and Mountains 107 3.7.5 Pilgrimage Tourism 107 3.7.6 Monument Tourism 108 3.7.7 Waterfalls 109 3.7.8 Parks and Gardens 109 3.7.9 Rivers and Dams 110 3.7.10 Eco Tourism 110 3.7.11 Adventure Tourism 111 3.7.12 Sports Tourism 111 3.7.13 Village Tourism 111 3.7.14 Farm Tourism 112 3.7.15 Institutional Tourism 112 3.8 The Unique Experiences and Resources 113 3.8.1 Ayurveda - Harmony of Body, Mind and Soul 113 3.8.2 Houseboat Cruises 114 3.8.3 Kerala Cuisine 114 3.8.4 Commercial Centres 115 3.8.5 Shopping 115 3.8.6 Performing Arts 116 3.8.7 Festivals and Fairs 117 3.9 Conclusion 118 References 126
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Working Structure and Overall Operations of Chapter Kerala Tourism Development Corporation 127- 162 4 (KTDC): A SWOT Analysis 4.1 Historical Background 128
4.2 Vision 130 4.3 Mission 130 4.4 Strategic Intents 131 4.5 Objectives 132 4.6 Share Capital 132 4.7 Working Structure 133 4.7.1 Functional Departments 136 4.7.2 Commercial Department 136 4.7.3 Marketing Department 137 4.7.4 Personnel Department 139 4.7.5 Accounts and Finance Department 141 4.7.6 Training Department 143 4.7.7 Engineering Department 143 4.7.8 Systems and Networking Department 145 4.8 Overall Operations of KTDC 146 4.8.1 Hotels and Motels 147 4.8.2 Restaurants and Beer Parlours 151 4.8.3 Conducted Tours 153 4.8.4 Tour Packages 153 4.8.5 KTDC tourism packages for NRKs 153 4.8.6 Entertainment Activities 154 4.8.7 Handloom and Handcrafts 154 4.8.8 Consultation Services 154 4.9 KTDC’s Contribution to Tourists Inflows 155 4.10 SWOT Analysis 157 4.11 Tenability of Hypotheses and Conclusion 160 References 162 Marketing Strategies of Tour Packages in Kerala Chapter with Special Reference to KTDC: Analysis and 163- 199 5 Evaluation
5.1 Marketing Mix Perspective Analysis of Tour 164 Packages 5.1.1 Product Perspective Analysis 164 5.1.2 Price Perspective Analysis 168 5.1.3 Place/ Distribution Perspective Analysis 171
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5.1.4 Promotion Perspective Analysis 174 5.1.5 People Perspective Analysis 177 5.1.6 Process Perspective Analysis 180 5.1.7 Physical Evidence Perspective Analysis 183 5.2 Marketing Strategies of Tour Packages of KTDC: Analysis and Evaluation 185 5.2.1 Product/ Consumer Oriented Approach 185 5.2.2 Price/ Competitor Oriented Approach 189 5.2.3 Distribution/ Trade Oriented Approach 192 5.2.4 Promotion/ Communication Oriented Approach 194 5.3 Tenability of Hypothesis and Conclusion 197 Reference 199 Chapter Tourist Satisfaction with KTDC’s Tour Packages: 200- 219 6 An Empirical Analysis
6.1 Demographic and Travel Behavioural Profile of
Respondents 201 6.2 Mean Scores of Attributes 204 6.3 Tourist Overall Satisfaction 208 6.4 Major Satisfaction Determinants of Tour Package 209 6.4.1 Factor Analysis 209 6.4.2 Multiple Regression Analysis 212 6.5 Testing of Hypothesis 214 6.6 Tenability of Hypothesis and Conclusion 219 Chapter Findings, Suggestions and Conclusion 220- 234 7 Summary of Findings 220
Suggestions 225 Conclusion 230 Directions for future researches 234 Bibliography 235 -247 Appendices 248-263 Appendix 1: Tourist Satisfaction Questionnaire 248 Appendix 2 : Survey of Tourists Inflows (Questi..) 252 Appendix 3: Details of Conducted 253 Appendix 3: Details of Tour Packages 258
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LIST OF TABLES
Table No. Content Page No.
Table 3.1 : Month-wise arrivals of tourist during the year 2008 92 Table 3.2 : District-wise arrival of tourists during the year 2008 93 Table 3.3 : Foreign Tourists Arrivals from 2001 to 2008 94 Table 3.4 : Domestic Tourists Arrivals from 2001 to 2008 96 Table 3.5 : Total Tourists Arrival to Kerala from 1996 to 2008 98 Table 3.5 : Earnings from Tourism from 2001 to 2007 100 Table 3.7 : Foreign Exchange Earnings from 1996 to 2007 101 Table 4.1 : KTDC Budget Hotels 150 Table 4.2 : KTDC Tamarind Easy Hotel 150 Table 4.3 : KTDC Motels 151 Table 4.4 : KTDC Restaurants 152 Table 4.5 : KTDC Restaurants cum Beer Parlours 152 Table 4.6 : Gender wise Classification of Domestic and Foreign Tourists Arrivals 155 Table 4.7 : Tourists Classification according to Purpose of Visit 155 Table 4.8 : Classification of Tourists Arrivals According to 156 Mode of Tour Table 4.9 : KTDC’s Contribution to Tourist Arrivals through 156 Tour Packages Table 6.1 : Nationality wise Distribution of Samples 201 Table 6.2 : Gender Wise Distribution of Sample 202 Table 6.3 : Gender and Nationality wise Cross Tabulation of 202 Sample Distribution Table 6.4 : Age Group Wise Distribution of Samples 202 Table 6.5 : Occupation wise Distribution of Samples 202 Table 6.6 : Income wise Distribution of Samples 203 Table 6.7 : Sample Classification on the basis of Travel 203 Companion Table 6.8 : Sample Classification on the basis of Type of 203 Package
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Table 6.9 : Sample Classification on the basis of Major Source 204 of Information Table 6.10 : Mean Scores of Satisfaction Determinant Attributes 205 Table 6.11 : Mean Scores of 12 Dimensions of Tour Packages 207 Table 6.12 : Mean Scores of the Overall Satisfaction of Tourists 208 Table 6.13 : Satisfaction Level of Tourists 208 Table 6.14 : Communalities of the Dimensions 210 Table 6.15 : Total Variance Explained 210 Table 6.16 : Factor Matrix 211 Table 6.17 : Model Summaries Multiple Regression 212 Table 6.18 : Analysis of Variance 213 Table 6.19 : Regression Coefficients 213 Table 6.20 : Test Statistics (Mann-Whitney Test) 214 Table 6.21 : Domestic Tourists’ Satisfaction Level (mean Scores) 215 on Various Attributes Table 6.22 : Foreign Tourists’ Satisfaction Level (mean scores) 217 on Various Attributes
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ABBREVIATIONS & ACRONYMS APTDC : Andhra Pradesh Tourism Development Corporation ATM : Arabian Travel Mart CAGR : Compound Annual Growth Rate CD ROM : Compact Disc Read Only Memory CIT : Critical Incident Technique CRC : Central Reservation Cell DMOs : Destination Marketing Organisations DTPC : District Tourism Promotional Council FHRAI : Federation of Hotel and Restaurant Association of India FTAs : Foreign Tourists Arrivals FITUR : International Tourism Trade Fair (Spain) GDP : Gross Domestic Product GPT : Group Package Tour GTDC : Goa Tourism Development Corporation Ha. : Alternative Hypothesis HKTA : Hong Kong Tourist Association Ho. : Null Hypothesis HR : Human Resources IATO : Indian Association of Tour Operators ILTM : International Luxury Travel Mart INR : Indian Rupees IT : Information Technology ITB : International Tourism Borse ITDC : Indian Tourism Development Corporation JBIC : Japanese Bank of International Cooperation KTDC : Kerala Tourism Development Corporation MD : Managing Director MMS : Multimedia Service NRKs : Non-Resident Keralites
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P&A : Personnel and Administrative PPS : Painless Pain in Services PRO : Public Relations Officer or Department RBP : Restaurant cum Beer Parlour Rs : Rupees SMS : Short Message Service SPSS : Statistical Packages for Social Sciences Researches SWOT : Strengths Weakness Opportunities and Threats TAAI : Travel Agent Association of India TRC : Tourist Reception Centre TRKL : Tourist Resort Kerala Limited TTI/G : Travel Trade Italia TVM : Trivandrum/ Thiruvananthapuram UAE : United Arab Emirates UK : United Kingdom UNWTO : United Nations World Tourism Organisation US$ : US Dollar USA : United States of America UTDB : Uttaranchal Tourism Development Board WTM : World Travel Mart WTO : World Tourism Organisation WTTC : World Travel and Tourism Council www : World Wide Web
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ABSTRACT
In the modern age tourism has become a popular global leisure, recreational and pleasure seeking activity. It involves travelling to attractive destinations and exotic natural areas with the specific objects of studying, admiring and enjoying the scenery and its wild flora and fauna, as well as other existing cultural and historical aspects. Tourism has emerged as an important as well as organized industry which scattered its benefits over large segments of population. It is vital for many countries due to the huge investment in their goods and services and the opportunity for employment in the service industries associated with tourism. Recently this smokeless industry has become a leading one in the service sector at the global level as well as a major provider of employment and a significant generator of foreign exchange at the national level.
In its modern form, since the end of the Second World War, tourism had grown into one of the world’s largest industries with a growth rate in excess of 5% per annum over the past twenty years. Being the most rapidly expanding industry, tourism is contributing over 10.4% to global GDP and generating employment for 231 million people. International tourists’ arrivals worldwide registered over 922 million with a growth of 2% in 2008 as compared to 6.7% in 2007. As per UNWTO estimates, worldwide receipts from international tourism were US$ 944 billion in 2008. It shows an increase of US$ 88 billion in 2008 over the US$ 856 billion in 2007. During the period between 1996 and 2008, international tourists’ arrivals worldwide grew at an average annual rate of 6.8%. During the twelve -year period from 1996 to 2008, the Asia and Pacific region was second only to the Middle East in outperforming the rest of the world, with growth in tourist arrivals averaging 7.66% per year and Europe remained the top regional tourist destination.
India is one of the most popular destinations in the Asia-Pacific Region. Tourism industry in India is on a great boom at the moment. It is India’s third largest export industry after readymade garments, gems and jewellery. Travel and tourism industry is the second largest foreign exchange earner for the country. In 2008, foreign tourists visiting India spent US$ 11.75 billion with an annual growth rate of
1 9.5% - the 23 rd highest in the world and 6 th in Asia Pacific region. The number of foreign tourists’ arrivals in India during 2008 increased to 5.37 million as compared to 5.08 million in 2007. The growth rate in Foreign Tourist Arrivals in 2008 was 5.6% against the 14.3% in 2007. The number of domestic tourist visits in India during 2008 was 10.87 million as compared to 527 million in 2007, with a growth rate of 11.1%.
Kerala’s contribution to Indian tourism industry is immense. Kerala is one of the main foreign exchange earners in the country and contributes much to the Indian economy. Kerala as already set an example by attracting health conscious tourists and has clearly emerged in generating maximum from medical tourism especially through Ayurveda .
Kerala has always been a favourite destination for the foreign as well as domestic tourists. Her beauty is so bewitching that tourists would love to visit frequently with this enchanting piece of land. Tourism has emerged as one of the few economic alternatives to develop the State’s economy. In Kerala, it has been recognized as an important sector for the development on account of its potential for generating income and employment. In the context of poor prospects of the manufacturing sector and the severe threats facing agricultural and traditional sectors and the uncertainties facing expatriate employment in the Gulf, tourism is considered as one of the sectors, which can drive Kerala economy to take the state to the pinnacle of socio-economical development.
Realising the importance of tourism in stimulating the economic development of the state, the government of Kerala declared tourism as an industry in 1986. At present, tourism is Kerala’s booming industry and one of the fastest growing, high income and employment-generating sector. The number of foreign and domestic tourist arrivals to Kerala during the year 2008 is 5.99 lacs and 75.91 lacs respectively. It shows an increase of 16.11% in foreign tourists and 14.28% in domestic tourists over the previous year. In district-wise arrivals of foreign tourists, Wayanad district shows the highest variation of 37.75% over 2007. But in case of domestic tourist arrivals Alapuzha district shows the highest variation of 37.47%.
2 Foreign exchange earnings for the year 2007 is Rs.2641crores, which is recorded a growth of 32.82% over the previous year and the total revenue from tourism in 2007 is Rs.11433crores. Alongside of these statistics is the human factor, tourism accounts for about 10 lacs in total employment generated in Kerala. The tourism industry invests approximately Rs.1,000 crores per year in Kerala.
The foregoing tourist statistics indicate a tremendous growth in tourism sector day by day at state, national and international levels. The principle causes of this rapid growth of tourism industry in the course of recent decades can be summed up as economic, social and technological in nature. Moreover, the innovative marketing methods like ‘Tour Packages’ contributed a vital element to the unexpected growth of tourism industry worldwide. At present it has become a major contributing factor to the growth of tourism in India as well as worldwide. The increasing growth of tourist inflows in Kerala is also greatly influenced by the tour packages conducted by Kerala Tourism Development Corporation (KTDC) and other different tourism organisations in the state. Tourist surveys and studies in Kerala revealed that about 14 to 20% of the tourist inflows in the State are by means of tour packages offered by different tourism organisations and agencies. Among these organisations and agencies KTDC stands at the forefront.
KTDC, the government agency came into existence on 1 st April 1966 to oversee the tourism prospects in Kerala, has played a very significant role in identifying and marketing the tourism potentials of the state by different means. The Corporation is concentrating on innovative tourism products and high standard service with a good measure of action, excitement and adventure. With an array of prime properties set in the finest spots of Kerala’s theme destinations, KTDC presents exotic ways to experience the State with its perfection and to give a feeling of the heritage of hospitality. It is offering a spectacular view of the State’s natural splendour and the tastes of its spicy richness with a subtle blend of traditional and luxurious properties. The Corporation is very vigilant in organising conducted tours; providing accommodation, food, transportation, entertainment and consultation services facilities; and maintaining Ayurvedic massage centres, Vehicles on rent, wayside amenities, restaurants and beer Parlours, Handlooms and Handicrafts
3 Shops etc. KTDC has been actively engaged in designing and marketing various well researched tour packages all over the state and maintaining a high tech reservation system to beckon tourists to the enchanting piece of land popularly known as ‘God’s Own Country’.
In the globalised era, tourism organisations are highly involved in the business of developing and marketing varied attractive tour and holiday packages. The recognition of new destinations, creation of new facilities and the increasing tourism promotion and marketing efforts by the tourist organisations through package tours have greatly influenced the tourist flows at national as well as international levels. Being the government’s largest commercial agency in Kerala to oversee the State’s tourism prospects, KTDC should be very thoughtful in formulating and implementing tourism marketing plans, policies and strategies for its varied tourist products and services in order to accomplish the stated objectives. The plans, policies and strategies thus formulated would be helpful to take the state to the highest of socio-economic development. Therefore, through this study the researcher made an earnest attempt to investigate the marketing strategies adopted by the Corporation for its varied tour packages offered in Kerala State.
The present study entitled ‘ Marketing Strategies of Tour Packages in Kerala - A Case Study of Kerala Tourism Development Corporation (KTDC) Kerala ’ was an analytical evaluation of the marketing strategies of tour packages in Kerala state with special reference to Kerala Tourism Development Corporation. The study analysed and evaluated the performance and resource potential of Kerala tourism industry, the working structure and overall operations of Kerala Tourism Development Corporation, the Corporation’s contribution to tourist inflows in the state by way of tour packages, and the strategies adopted by the Organisation for marketing its varied tour packages in the state. The study also looked into the satisfaction levels of tourists with the tour packages offered by the Corporation and evaluated whether, there exists any significant difference between the satisfaction level of domestic and foreign tourist.
4 In order to identify the research gap more than 50 international as well as national level studies and other related research literatures were reviewed, which include research publications, published and unpublished doctorial thesis, articles, journals, books etc. From this comprehensive literature review it peters out that the studies in international as well as national scenarios have covered almost all possible aspects of tourism marketing except tour packages’ marketing strategies. Moreover, the studies made in Kerala tourism marketing are very few in analytical framework and the researcher could not find even a single study on KTDC’s marketing strategies and its tour packages. Therefore, the present study differs from the earlier studies which cover almost all the aspects of tourism marketing at international or national level only, made an earnest attempt to trace out the Marketing strategies of tour packages in Kerala with special reference to Kerala Tourism Development Corporation.
In regard to the research gap, need and significance, and scope of the present study, the following important objectives were pursued to analyse the marketing strategies of tour packages in Kerala State.
1) To analyse the performance and resource potential with special focus on the attraction dimension of Kerala tourism industry.
2) To examine the working structure and overall operations of Kerala Tourism Development Corporation with special preference to marketing operations.
3) To estimate KTDC’s contribution to tourists inflows in the State by way of tour packages by conducting a simple random sample survey.
4) To analyse and evaluate the marketing strategies of tour packages in Kerala state with special reference to KTDC.
5) To understand the satisfaction levels of both domestic and foreign tourists with the tour packages offered by KTDC in Kerala state.
In accordance with the important objectives, appropriate and relevant null hypotheses were formulated. The hypotheses were tested by collecting and
5 analysing both primary and secondary data with the help of a sound research methodology. As a secondary source, the data compiled by Departments of tourism - Government India and Kerala, Kerala Tourism Development Corporation, Indian Tourism Development Corporation, Kerala Directorate of Economics and Statistics and various other state and central agencies have been used to draw the relevant conclusions for the study. Various news papers, magazines, journals, survey reports, broachers, booklets, books, published and unpublished research works, and tourism related literature published by various organisations have been also used as source of secondary data.
In order to collect primary data the investigator organised interview with the directors, Marketing Manager, Deputy Marketing Manager and other important managerial level officials of KTDC. Further he conducted two sample surveys by using two different set of questionnaires. The first survey was administered in three different phases on 2279 randomly selected samples, in order to understand KTDC’s contribution to tourist inflows in the state by way of tour packages. The purpose of the second survey was to analyse the satisfaction levels of both the tourists, domestic and foreign, with the tour packages offered by the Corporation by collecting information from a purposive random sample group of 334 consist of 234 domestic and 100 foreign tourists.
Since the study was descriptive in nature both qualitative as well as quantitative data were used. The data in qualitative nature, i.e. marketing strategies of tour packages and KTDC’s working structure and overall operations, were analysed through marketing mix perspective, different marketing approaches (strategy) and SWOT analyses. But different statistical tools such as frequencies, simple averages, Standard Deviation, Percentage Comparisons, Factor Analysis with Principle Component Method and Multiple Regression Analysis were used for analysing the data in quantitative nature. The Mann Whitney Test (Non-parametric statistical test, due to lack of normality in data collected) was used to identify whether there exists any significant difference between the satisfaction levels of domestic and foreign tourist.
6 In order to present the study in its logical order it has been divided into seven chapters. The First Chapter consists of the introductory background, statement of the problem, need and significance, objectives and hypotheses, research methodology and design of the study. It also presents a review of the various studies made by different scholars in the relevant field in a summative way. Chapter Second discusses the concept of marketing in general and tourism marketing particular. It explores the concepts and philosophies of marketing strategies of tourism products and tour packages by different scholars and describes the different marketing strategies which can be applicable for tour packages.
Chapter Third consists of two sections. Section first analysis and presents the performance of Kerala tourism industry with regard to tourist inflows and generation of income from tourism in the State with facts and figures by using tables, diagrams and graphs. While the latter section analysis the resource potential of Kerala tourism industry with special reference to the attraction dimension. Chapter Fourth analyses and sketches out the working structure and overall operations of Kerala Tourism Development Corporation with special focus on the marketing operations and functions through a SWOT analysis. This Chapter also analyses the Corporations contribution to the tourist inflows in the state by way of tour packages with the help of a simple random sample survey.
Chapter Fifth “Marketing Strategies of Tour Packages in Kerala with Special Reference to KTDC: Analysis and Evaluation” makes an earnest attempt to analyse and evaluate the various strategies adopted by KTDC for marketing its varied tour packages in the State through the tourism marketing mix perspective analysis and by adopting different marketing approaches (strategies) analysis. Chapter Six exclusively dedicated to analyse empirically the satisfaction levels of both domestic and foreign tourists. The chapter presents the results of various statistical analyses in the form of tables and figures and tests whether there exists significant difference between the satisfaction levels of domestic and foreign tourists.
The last chapter i.e. seventh highlights the important findings of the study in a summarised form and put forward important suggestions based on the major
7 findings. At the end the investigator draws conclusions in the light of these findings and gives directions for future researches.
The major findings of the study are:
1. The tourist arrivals in the state show an increasing trend since 1996 with an average growth rate of 6% per year, which include 12.04% in foreign tourists’ arrivals and 5.04% in domestic tourists’ as well. 2. The statistics of foreign exchange earnings from tourism in the State also show a rapid growth since 2002 with an average growth rate of 30.75% per year. 3. Tour packages play a very significant role in tourist inflows in the state. This can be proved from the random sample survey that travel agents and tour operators in Kerala contribute 19.79% of the total tourist inflows in the State through tour packages. Among them 11 out of 100 is contributed by KTDC offered tour packages alone. 4. Kerala Tourism Development Corporation has a systematically organised working structure and outlook, which shows the hierarchy of positions and their relationships in terms of authority and responsibility, to carry out the tourism promotional efforts and marketing operations in the State. 5. The greatest limitation identified from the working structure and overall operation analysis is that the Corporation does not have a public relations department or officer which is very important for a commercial organisation like KTDC for carrying out the tourism marketing operations and promotional efforts. 6. It found from the product mix analysis that KTDC has given only little space for adventure, sports, pilgrimage and wildlife tour packages compared to other nature and heritage based packages such as beach, backwater, Ayurveda etc. 7. It is found from the marketing strategies analysis that KTDC has adopted different strategies in different contexts and times for marketing its different tour packages in Kerala State. 8. KTDC has been adopted ‘quality growth model ’ as the overall strategy for marketing its varied tour packages. The other strategies include differentiated (diversification) and undifferentiated (specialisation) strategies; higher pricing,
8 differential pricing and demand oriented pricing strategies; bypassing (direct marketing) and co-operative and collaborative (use of intermediary) strategies; and regional, national and international level promotional strategies. 9. Since KTDC is more concerned about the quality matters, it generally practices high price strategy for its tour packages. This policy very often staves off the common people in attracting to the Corporation. 10. The major promotional strategy adopted by KTDC for marketing tourism products and tour packages within and outside the country is the slogan ‘Official Host to God’s Own Country’. 11. Other important promotional tools and techniques adopted by Corporation are advertising, publicity, road shows, exhibitions, grand tourism festivals, use of internet and websites marketing, mobile technology in the form of MMSs, SMSs, multimedia technology, participation in national and international fairs and festivals, global super brand positioning, use of brochures, booklets, leaflets, pamphlets and tour itineraries, production of tourism films, CD ROMs, SMSs, MMSs etc. 12. The tourist satisfaction survey revealed that ‘Word of mouth’ is the most effective strategy for promoting tour packages in the state because 35.9% of the tourist came to know about KTDC’s tour packages through their friends and relatives. 13. The results of tourists satisfaction survey revealed that 82.34 percent of the total tourists were satisfied with quality of the tour packages offered by KTDC, among them 22.16 percentage were highly satisfied. But the numbers of tourists who were dissatisfied is 12 (3.59%) and the tourists who have no opinion (neither satisfied or dissatisfied) about the tour packages is 43 (14.07%) 14. Factor analysis with Principal Component Method shows that the 4 factors i.e. Facilities and Comfort, Communication, Transportation & Pricing and Attractions are the major quality and satisfaction determinants of the tour packages in Kerala. 15. Multiple regression analysis shows that about 94% of the variation of tourist’ overall satisfaction was explained by the four factors identified through the
9 factor analysis such as Facilities & Comfort, Communication, Transportation & Price and Attraction. 16. The study found that there is significant difference between the satisfaction level of domestic and foreign tourists. The satisfaction levels show that 91% (9% have no opinion) of foreign tourists and 78.63% of domestic tourists were satisfied with the tour packages offered by KTDC. But in case of domestic tourists 16.24% were at break even and 5.13% were dissatisfied.
The following are the important suggestions
1. The Corporation have to develop a comprehensive master plan which must be based on a long term basis and should be based on carefully carved out facts as regarding the visitor motivations, their needs, requirements, satisfaction levels and forecast in terms of numbers etc. and it must take into account all the market forces and must be developed in a way so that it is cohesion with the overall developmental plans and strategies. 2. It is clear from the survey data that more than 77% of customers of the Corporation are belonging to higher income groups. This means that KTDC is mainly concerned about the needs and expectations of upper class tourist but less concerned about the lower income groups. Hence, in order to attract the common people to the Organisation, it should give special focus in developing and marketing budget packages by considering needs and expectations of the lower income group tourists also. 3. In order to establish a good relationship with tourists and the local community and ensure the participation of local people in tourism related activities, the Corporation should modify the organisation structure by adding a public relations department or by creating a public relation officer’s position 4. KTDC should use ‘word of mouth marketing’ strategy effectively. This can be done by sending monthly newsletter to the customers who enjoyed beauty of Kerala and subscribed opt-in email. Design the newsletter with photos and small description of latest photos of major events, cultural festivals etc. There is a possibility that people who visited Kerala may refer it to their friends or relatives about Kerala Tourism.
10 5. KTDC should realise the importance of front-line sales force. The front-line employees can be the most valuable sales team. This is because they establish the first contact with the customer. 6. Proper care should be taken to get tourists feedback about the execution of the tour package or service, because it will be helpful to ascertain the satisfaction levels of tourists and thus to make required modifications and improvements in the future. 7. There should be frequency in advertising and publicity. Because the frequency is more important than variety in placing advertising. People viewing the advertisement should develop Top of Mind Awareness (TOMA). 8. Adopt a strong customer orientation which includes regular research and assessment of their needs, wants, expectations and attitudes. 9. The survey shows that majority of the tourists were dissatisfied with the shopping arrangements dimension of the tour packages. Therefore, appropriate measures and arrangements should be taken to minimise the inconveniences and difficulties and make shopping an exotic experience in future trips. 10. Tourism has taken initiative to markets beyond the metros to foster skilled manpower. The rapidly growing tourism sector in Kerala is faced with an acute shortage of talent. Hence, KTDC should be focused at developing talent by grooming entry-level candidates and enhancing skills of existing professionals in the Organisation which will help to improve the quality of different tourism products and packages. 11. For many destinations and packages tourists and local peoples’ attitude and behaviour often fall into the category of tourist experiences or products, since tourist may be attracted by the culture and hospitality of the resident population. Hence, the importance of fostering local residents’ sensitivity and awareness is to be stressed by organising tourism awareness programmes and campaigns, because inappropriate behaviour of such people can reduce the quality of products or packages. 12. The Corporation should follow the societal marketing principles in formulating strategies for marketing tourism products in the State. Because the strategies
11 often adopted by the Organisation are not in tune with principles of societal marketing.
However, it can be highlighted from the overall analyses and evaluations of the study that KTDC has adopted different well structured marketing strategies and techniques for tour packages in Kerala along with the ‘Quality Growth Model’ as the overall strategy. The Corporation has a scientific organisational structure with a red-blooded marketing department in order to carry out marketing functions and promotional efforts. But the organisation structure does not consists a public relations department or public relations officer which is very important for a commercial organisation like KTDC for the effective marketing of tour packages and other tourism products or services. It is evident from the results of the satisfaction survey that the tour packages offered by the organisation possess much better quality; hence almost all the tourists were satisfied with the quality of packages offered. Similarly it can be interpreted from the differences in satisfaction levels of domestic and foreign tourists that KTDC has offered low quality packages for Indian tourists as compare to the packages offered to foreign tourists. The result of statistical analyses shows four major factors that are very import in determining the overall satisfaction of tourist and the quality of tour packages. Therefore, this study suggested that the Corporation should be given special focus on these factors to improve the quality of its varied tour packages and should give special care for improving the shopping arrangements dimension (variable), since majority of the tourists were dissatisfied or have no opinion on this dimension. It is also suggested that KTDC should follow societal marketing principles in formulating and implementing different marketing policies and strategies, especially in pricing and promotional strategies, for tour packages.
12 CHAPTER - 1 Introductory Background, Research Design and Framework of the Study
1.1 Introduction
Tourism as an industry has been flourishing and growing since time immemorial, but it has been in the last few decades that specific attention has started to be given to this smokeless industry because of the huge return from this in the form of foreign exchange and other means. Tourism has emerged as an important as well as organized industry which scattered its benefits over large segments of the population. Tourism is vital for many countries due to the huge investment in their goods and services and the opportunity for employment in the service industries associated with tourism. These service industries include transportation services such as cruise ships and taxis, accommodation such as hotels and entertainment venues and other hospitality services such as resorts. 1
Tourism has become a popular global leisure activity. Tourism is travelling for predominantly recreational or leisure purposes or the provision of services to support this leisure travel.2 In a true sense, the term tourism is a phenomenon of the post second world war period when the word ‘Tour’ entered into the common usage, especially in the English language. 3 Tourism involves travelling to relatively undisturbed or uncontaminated natural areas with the specific objects of studying, admiring and enjoying the scenery and its wild flora and fauna, as well as other existing cultural and historical aspects. These include places of archaeological and historical importance, pilgrimage centres, sanctuaries, national parks, hill resorts and sea beaches, etc. 4
The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited". Tourism, however, is a temporary and short-term movement of people which is outside the place where the so called tourists live, work and stay. It is the sum total of the processes, activities, outcomes arising from the interactions among tourists, tourism suppliers, governments, host communities, universities, community colleges and non-governmental organisations, in the process of attracting, transporting, hosting and managing tourists and other visitors 5.
1.1.1 Global Tourism Industry
Tourism is widely recognised as one of the most vibrant, growing and economically useful activities in the world having cultural and social ramifications. In its modern form, since the end of the Second World War, tourism had grown into one of the world’s largest industries with a growth rate in excess of 5 percent per annum over the past twenty years. Being the most rapidly expanding industry tourism is contributing over 10.4 percent to global GDP and generating employment for 231 million people. Since, tourism has become a popular global leisure activity, in 2008, there were over 922 million international tourists’ arrivals, with a growth of 2 percent as compared to 2007. But it was 904 million in 2007, with a growth rate of 6.7 percent. As per UNWTO estimates, worldwide receipts from international tourism were US$ 944 billion in 2008. It shows an increase of US$ 87 billion in 2008 over the US$ 856 billion in 2007 6.
Tourism is a leading industry in the service sector at the global level as well as a major provider of jobs and a significant generator of foreign exchange at the national level. During the period between 1996 and 2008, international tourists’ arrivals worldwide grew at an average annual rate of 6.8 per cent. In 1996, there were 572.4 million tourists and in 2008, there were 922 million tourists. During the twelve-year period from 1996 to 2008, the Asian and Pacific region was second only to the Middle East in outperforming the rest of the world, with growth in tourist arrivals averaging 7.66 percent per year. The global market of the Asian and Pacific region increased from 15.7 per cent in 1996 to 20 per cent in 2008. Europe remained the top regional tourist destination in the world 7.
During the ten-year period of fast growth in tourist arrivals, several factors contributed to the strong performance in most of Asian and Pacific region. These
2 factors included rising levels of disposable income; improvements in transportation facilities and the introduction of low-cost airline services; easier access from traditional source markets and the emergence of new source markets, such as China and India. Moreover, the creation of new market niches such as cultural tourism, ecotourism and adventure tourism has made the tourism industry more diversified.
Tourism contributes significantly, both directly and indirectly, to the creation of employment. In 2006, the tourism economy (direct plus indirect contribution) provided jobs for about 140 million people in the selected sub regions and countries of the Asian and Pacific region, representing an average of 8.9 per cent of total employment.
WTTC (World Travel and Tourism Council) is firmly committed to realising the industry’s potential for growth and ensuring maximum and sustainable benefits for everyone involved. Tourism as one of the industries which generates the most employment, Travel and Tourism needs the complete understanding and support of governments and international organisations in order to realise its full potential for the benefit of all. Worldwide Travel and Tourism is expected to grow at a level of 4% per year over the next ten years, creating an opportunity for every country in the world to be part of this process and to share the benefits.
Tourism is vital for many countries, due to the income generated by the consumption of goods and services by tourists, the taxes levied on business in the tourism industry, and the opportunity for employment in the service industries associated with tourism. Tourism is sensitive to the world economic and political conditions. It can occur on a large scale where the great majority of people enjoy some prosperity and security. Tourism and holiday making on global as well as national scale is a manifestation of prosperity and peace. The trend in the growth of international tourism continues since the mid- 1960s. The growth continues to be determined by the living standards in the developed countries. The enormous expansion of tourism has thus taken place, primarily in the advanced industrialised countries, where tourism has become a part of life style and consumption pattern of
3 most people. These countries are both the main tourism generating and tourism receiving areas.
The basic causes of this rapid growth of demand for tourism in the highly developed industrialised countries are economic, social and technological in nature. Rising per capita income leading to higher purchasing power and an increase in discretionary income have made tourism accessible to a large majority of people. The social causes of the rapid growth of tourism are linked with new attitudes towards travel and leisure. The impact of the modern transport technology, especially in aviation field has brought about a completely new meaning to tourism.
Tourism today presents an unparallel challenge to the economics of the developing world. The rewards to be gained are immense both financial and socio-economic. The importance of tourism lays on large sectors of public life and economy. The contribution of tourism to the economy exceeds that of other sectors in several countries, to the extent that it appears as one of the essential elements in the trade balance. Tourism is frequently a rapidly expanding sector and its future trends and importance that are impossible to predict. The economic implications, especially of International Tourism are immense. A tourist, who spends money he has earned at home on tourism in another country, is in fact, ‘importing’ tourism and the country being visited ‘exporting’ it.
1.1.2 Indian Tourism Industry
India is one of the most popular destinations in Asia, bounded by the Himalayan ranges in the north, and surrounded on three sides by water (the Arabian Sea, Bay of Bangal, and the Indian Ocean), with a long history and diverse culture. India offers a wide array of places to see and things to do. India is also ranked among the top 3 adventure tourism destinations Asia Pacific Region.
Tourism industry in India is on a great boom at the moment. It is India’s third largest export industry after Readymade Garments, Gems and Jewellery. India has tremendous potential to become a major global tourist destination and Indian tourism industry is exploiting this potential to the hilt. Travel and tourism industry
4 is the second largest foreign exchange earner for the country, and the government has given travel and tourism organizations export house status. In 2008, foreign tourists visiting India spent US$ 11.75 billion with an annual growth rate of 9.5% – the 23 rd highest in the world and 6 th in Asia Pacific region. The number of foreign tourists’ arrivals in India during 2008 increased to 5.37 million as compared to 5.08 million in 2007. The growth rate in FTAs during 2008 over 2007 was 5.6% as compared to 14.3% during 2007 over 2006. The number of domestic tourist visits in India during 2008 was 10.87 million as compared to 527 million in 2007, with a growth rate of 11.1% 8.
India is often referred to as a legendary country and mysterious destination for foreign travellers and tourists, moreover, India has the right tourism potential and attractions to captivate all types of tourists whether it is adventurous tour, cultural exploration, pilgrimages, visit to beautiful beaches or scene mountains, resorts etc. India’s travel and tourism industry is one of the most profitable industries in the country, and also credited with contributing a substantial amount of foreign exchange. According to the Travel and Tourism Competitiveness Report 2009 brought out by World Economic Forum, India is ranked 11 th in the Asia-Pacific region and 62 nd overall in a list of 133 assessed countries in 2008, up three places since 2007. This is illustrated by the fact that during 2006, four million tourists visited India and spent US$ 8.9 billion.
Several reasons are cited for the growth and prosperity of India’s travel and tourism industry. Economic growth has added millions annually to the ranks of India’s middle class, a group that is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2008, and much of that is being spent on travel. Foreign tourists spend more in India than almost any other country worldwide. Tourists’ arrivals are projected to increase by over 22% per year till 2010, with a 33% increase in foreign exchange earnings recorded in 2004. India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities. It is expected that the number of tourists visiting India for the purpose of medical treatment will reach one Million by 2012, representing a CAGR of 28.09% from 2007 onwards 9.
5 Kerala has already set an example by attracting health conscious tourists and has clearly emerged in generating maximum from medical tourism. However, it is time to move beyond Ayurveda and other alternatives medical therapies, to high level, specialized treatment like transplantation of vital organs, cancer treatment, neuro surgery, cardiac surgery and much more.
Travel and tourism industry’s contribution to Indian industry is immense. Tourism is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in Indian both directly and indirectly through its linkage with other sectors of the economy. According to an estimate total direct employment in the tourism sector is around 20 million.
The buoyancy in the Indian tourism industry can be attributed to several factors. Firstly, the tremendous growth of Indian economy has resulted in more disposable income in the hands of middle class, thereby prompting increasingly large number of people to spend money on vacations abroad or at home. Secondly, India is a booming IT hub and more and more people are coming to India on business trips. Thirdly, aggressive advertising campaign “Incredible India” by Tourism Ministry has played a major role in changing the image of India from that of the land of snake charmers to a hot and happening place and has sparked renewed interest among foreign travellers.
Travel and tourism industry in India is marked by considerable government presence. Each state has a tourism corporation, which runs a chain of hotels/ rest houses and operates package tours, while the central government runs the Indian Tourism Development Corporation (ITDC).
In the year 2002, the Government of India announced a New Tourism Policy to give boost to the tourism sector. The policy is built around the 7-S Mantra of Swaagat (welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshhaa (security), Sahyog (co-operation), Sanrachnaa (infrastructure) and Safaai (cleanliness).
6 The government of India has taken several measures for the promotion of tourism in the country. A multi-pronged approach has been adopted, which includes new mechanism for speed implementation of tourism projects, development of integrated tourism circuits and rural destinations, special capacity building in the unorganized hospitality sector and new marketing strategy.
The outlook of the tourism industry in India looks extremely bright. India as a tourism destination is the toast of the world at the moment. Conde Nast ranked India amongst the top 10 tourist destinations. JBIC ranked her as the fifth most attractive investment destination. Besides, India is probably the only country that offers various categories of tourism. These include historical tourism, adventure tourism, medical tourism (ayurveda and other forms of Indian medications), eco tourism, cultural tourism, rural tourism, religious/ pilgrimage tourism, spiritual tourism, and beach tourism etc.
1.1.3 Kerala Tourism Industry in Nutshell
Kerala has always been a favourite destination for the foreign as well as domestic tourists. Her beauty is so bewitching that tourists would love to frequently visit this enchanting piece of land. Natural beauty, clean air and primordial greenery amidst the vast expanse of water and sky, typifies the state of Kerala. The enigmatic strip of land is replete with endless miles of placid backwater that adds to its marine beauty. The slopes of the Western Ghats are a perfect rundown of rare flora and fauna and the fragrance of its coffee blossoms waft in the air round the year. Unique art forms, temple festivals, long line of caparisoned elephants and the breathing fireworks are something which can be seen in Kerala alone. Since ancient times the nature-rich land of Kerala has played host to travellers and traders from all over the world. Even today, its people live up their long-cherished dictum adithi devo bhava – our guest is our god.
In Kerala, tourism has emerged as one of the few economic alternatives to develop the state’s economy. It has been recognized as an important sector for the development on account of its potential for generating income and employment. In the context of poor prospects of the manufacturing sector and the severe threats
7 facing agricultural and traditional sectors and the uncertainties facing expatriate employment in the Gulf, tourism is considered as one of the sectors, which can drive Kerala economy to take the state to the pinnacle of socio-economical development.
Realising the importance of tourism in stimulating the economic development of the state, the government of Kerala declared tourism as an industry in 1986. At present, tourism is Kerala’s booming industry and one of the fastest growing, high income and employment-generating sector. The number of foreign and domestic tourist arrivals to Kerala during the year 2008 is 5.99 lacs and 75.91 lacs respectively. It shows an increase of 16.11% in foreign tourists and 14.28% in domestic tourists over the previous year. Foreign exchange earnings for the year 2007 is Rs.2,641crores, which is recorded a growth of 32.82% over the previous year and the total revenue from tourism in 2007 is Rs.11,433crores. Alongside of these statistics is the human factor, tourism accounts for about 10 lacs in total employment generated in Kerala 10 .
The principle causes of rapid growth of tourism industry in the course of recent decades can be summed up as economic, social, and technological in nature. Rising per-capita income, coupled with increasing prosperity had given higher purchasing power and standard of living and increase in discretionary income to a majority of people have made tourism and travel accessible to almost all segments of the people. On the other hand, social causes can be linked with the favourably changing attitudes of people towards leisure and travel industry. And the technological causes can be associated with the advancements made in modernising transport and communication system. The impact of the modern transport technology, especially in the aviation field has brought about a completely new meaning to tourism. The technological developments have made it possible to travel even to remote destinations.
In addition to economic, social and technological causes, the innovative marketing methods like the “Tour Packages” contributed a vital element to the unexpected growth of the tourism industry. In the globalisation era tourism organisations are
8 highly involved in business of developing and marketing varied attractive tour packages and holiday packages. The recognition of new destinations, creation of new facilities and the increasing tourism promotion and marketing efforts by the tourist organisations through package tours have greatly influenced the tourist flows at national as well as international levels. Tourist surveys and studies in Kerala revealed that about 14-20 % of the tourist inflows in the state 11 are through tour packages offered by different tourism organisations and travel agents including Kerala Tourism Development Corporation (KTDC).
1.2 Background of the Study
As tourism is the fastest growing industry in the world, it became one among the world’s most competitive industries. The competition is increasing day by day since more and more countries seek to attract tourists and more companies and organisations become involved in the highly skilled business of transporting, accommodating and catering for tourists. Just as any other products tourism too needs to be marketed, as it is an industry in which the customer still has an immense variety of choices. There are a number of destinations competing with each other to get a bigger and bigger share of the tourist market. Tourism organisations are adopting newer methods, techniques and strategies for marking such destinations. Tour package is one of such simplest and newer method for marketing tourist destinations.
Constant efforts are on to promote Kerala as a tourist destination and marketing strategies are being evolved along with new and exciting tourism products and tour packages. The state department of tourism along with private entrepreneurs is taking steps to promote tourism in the state and to improve the facilities and infrastructure at places with tourism potential. Kerala Tourism Development Corporation (KTDC), the government agency that oversees tourism prospects of the state. The Corporation plays a very significant role in satisfying the needs of tourists by way of tour packages and other tourism products, and thereby marketing the tourist destinations in the state very effectively. In Kerala, KTDC is very vigilant in conducting Tour Packages, conducted tours, providing accommodation,
9 food and transport facilities, maintaining Ayurvedic massage centres, vehicle on rent etc.
But the most unfortunate side of Kerala tourism marketing is that the state has simply failed to identify and market all the beautiful spots. Much of Kerala’s enchanting places still remain unexposed to the nature lovers. Kerala, hence, has to develop well designed marketing strategies and plans in marketing such spots and places by organising tour packages and developing other types of tourism products in the state. The present study, therefore, is an earnest attempt to analyse and identify the marketing strategies of tour packages in Kerala with special reference to Kerala Tourism Development Corporation.
1.3 Statement of the Problem
In the scenario of globalisation, competition among the global players of tourism related service industries are unavoidable. Again, the global village concept has considerably increased the expectations of the people from all spheres. In such a situation only organisations capable of creating a competitive edge can continue their achievements. Despite its enchanting tourist locales, rich heritage and culture, unique art forms, besides famed temples, Kerala had remained low key on tourism promotion for decades. But, in 1986, Kerala government officially declared tourism as an industry. The new initiatives and globally acceptable practices in the tourism sector enabled the state to bag good number of national as well as international awards and recognitions. The department of tourism and the Kerala Tourism Development Corporation (KTDC) played a very significant role in identifying and marketing tourism potentials of the state. KTDC, the government agency, promotes and conducts tour packages all over the state and maintains a high tech reservation system to beckon tourists to the enchanting piece of land.
Kerala offers variety of experiences to the tourist. Tourism needs variety and Kerala has varied tourism products which satisfy the needs and expectations of almost every class of visitors. But, despite of various resources and potentials of satisfying the needs and motives of almost every class of visitor, the state of Kerala have not been able to develop well designed marketing strategies for attracting
10 more and more tourists, particularly international tourists, to the state. Therefore, the present study “Marketing Strategies of Tour Packages in Kerala – A Case Study of Kerala Tourism Development Corporation (KTDC), Kerala ” aimed to study the marketing strategies of tour packages in the state with special reference to Kerala Tourism Development Corporation.
By this study the investigator analysed and evaluated the marketing strategies adopted by Kerala Tourism Development Corporation for its varied tour packages in the state. The study evaluated the performance and resource potential of Kerala tourism industry and examined the working structure and overall operations of the Corporation with regard to its marketing operations and functions, and its contribution to the inflow of tourists in the state by way of tour packages. The study also analysed the satisfaction levels of both domestic and foreign tourists with the tour packages offered by the Corporation.
1.4 Review of Related Literature
There are a number of industries that plays a pivotal role in the socio-economic development of any nation. Tourism is one of such industries which is being increasingly recognized as one the major industries that can creditably transform the socio-economic condition of nations. Tourism emerged as the largest global industry in 20 th century and is projected to grow even faster. Its increasing importance has lead to efforts for its planned development due to which it has caught the attention of researchers and scholars from various disciplines such as management, commerce, economics, geography, sociology and history. As a result a number studies have been conducted in the various dimensions of tourism with different and demarcating approaches in both Indian and international scenarios. In Indian tourism industry is on its growth stage and studies have been conducted almost all dimensions of tourism marketing. But there have been very few studies conducted on Kerala tourism marketing especially on tour packages.
However, in order to comprehend the present study to its logical conclusion the studies conducted in tourism and tourism marketing at international and national level deserve attention. Hence it is herby presented an overview of such studies
11 conducted abroad as well as India in a chronological order by classifying them into International Scenario, Indian Scenario and Kerala Scenario.
1.4.1 Studies in International Scenario
Michael Chiam, Geoffrey Soutar and Alvin Yeo’s (2009) analytical study “Online and Off-line Travel Packages Preferences: A Conjoint Analysis” examines the impacts of a number of elements such as price, package characteristics, travel agents and a seal of approval in online and off-line environments by using conjoint analysis. The findings of the study reveal that price had the biggest impact, although travel agent and airline reputation and trustworthiness also impacted on people’s preferences. The study reveals that there were no significant differences in the attributes’ impacts in the online and off-line environments on the travel package preferences 12 .
Stan Karanasios and Stephen Burgess’s (2008) research article “Tourism and Internet Adoption: A Developing World Perspective” provides a new perspective of the realities faced by small tourism enterprises in the developing world. By giving well-recognised value for the Internet in tourism, the article sought to identify how entrepreneurs mitigate Internet adoption obstacles such as the inadequate and unreliable telecommunications infrastructure, the cost of the technology, and a lack of knowledge and skills that characterise developing nations. For this purpose the author was performed a qualitative study on small tourism enterprises in rural and metropolitan areas of Malaysia and Ecuador. The study found that entrepreneurs established ways to overcome obstacles, with some applying quite innovative solutions. It helps to understand the role of entrepreneurs in innovation adoption and improve knowledge of Internet appropriation among small tourism enterprises in developing nations 13 .
Elena Matei and Tamara Simon’s (2008) research paper “India in Romania’s Travel Packages – An Analysis” examines in detail that India penetrates with difficulty in Romania’s tourism market even the country possessing strong cultural heritage, icon attractions and central image in global marketing. The study reviewed several researches into the interaction between Romanian tour operating
12 companies with India’s travel packages via internet. It also analyses the demand pattern and suppliers’ practice, as well as the recognition of importance in understanding of how they function. Moreover the study defines and ranges India’s destinations in conventional views of tour operators as providers and tourists’ expectations advantages and disadvantages of both segments which deal with marketing practices and policies 14 .
Youcheng Wang’s (2008) paper “Web-based Destination Marketing Systems: Assessing the Critical Factors for Management and Implementation” evaluates the critical factors of the Web-based Destination Marketing System used by Destination Marketing Organisations in USA on the following five areas: website function design, website promotion, Website performance measurement, Web- marketing impact assessment and organisation technology environment and presents the report in a interesting way 15 .
Baiba Savri ņa, Dainora Grundey and Kristine Berzina’s (2008) article “Cooperation – The Form of Sustainable Tourism Industry in Latvia” invites reader’s attention to build networks and partnerships amongst the market players of tourism industry in Latvia. The researchers define cooperation through the article as a process, which manifests in all fields of business operations. This article lists out the ways and forms of cooperation that are of choice for every entrepreneur-formal and informal, vertical and horizontal, centralised and decentralised and others. This work evaluates all the benefits and contributions of cooperation and suggests when to choose to compete and when to cooperate 16 .
Goi Chai Lee and Chieng Fyrene Yew Leh’s (2008) paper published on the title “An Attractiveness of Sarawaka as Ecotourism Destination: An Overview of Natural-Based Market Segment” reviews the ecotourism initiatives in Sarawak to enhance the understanding of ecotourism and initiate more thorough investigations. The reviews of ecotourism in Sarawak are based on three main factors such as natural and cultural attractions; educational and learning experience; and environment, economic and socio-cultural and sustainability. The paper presents the review in a very systematic way 17 .
13 Ljiljana Stankovic and Jelena Petrovic’s (2007) study on “Marketing of Tourism Destination of Nis” considers necessary application of marketing in the development of tourist destination offers. Special attention has been paid to the application and development of integral marketing with the aim to create and successfully manage a brand of a tourist destination with special consideration given to the city of Nis 18 .
Arabi. U (2007) in his article “On-Line Tourism Services in Developing Countries: Need for Website Marketing Infrastructure” explains the need to maintain and increase competitiveness of online tourism through the development of websites marketing in developing countries. It analyses the objectives such as the inter relationship between tourism and internet technology, strategies towards E-Tourism environment, destination marketing organisation(DMOs) for E-Tourism, website marketing development for E-Tourism promotion and intra regional and regional E - Tourism strategies. The article recommends that the promotion of e-tourism and innovations, development of website markets and its management is very much essential in most of the developing countries to make tourism industry more profitable 19 .
Joaquin Alegre Maria Sard’s (2006) working paper titled “Tour Operators’ Price Strategies in the Balearic Islands” analyses the package tours’ price strategies of tour operators by taking samples from British and German tour operators. The paper shows the existence of persistent differences in the mean prices from tour operators, as well as price distributions with different dispersion and shape among tour operators and markets. The time variation of these distributions seems to be linked to the market situation and structure. Although the paper is presented as an empirical investigation, the results are interpreted in the context of theoretical literature on price dispersion 20 .
David Bowie and Jui Chi Chang’s (2005) research paper “Tourist satisfaction: A View from a Mixed International Guided Package Tour” seeks to identify the variables that are related to customer satisfaction during a guided package tour service encounter, including the role of the tour leader and the service performance
14 by suppliers. Data were gathered through participant observation during a mixed nationality tour of Scandinavian destinations. Expectations, customer on-tour attitude and behaviour and equity were identified as affecting customer satisfaction during the service encounter. The findings of the study indicate that the tour leader is a significant determinant psychologically, spiritually and practically in influencing the success of the tour packages. The result contributes to a better knowledge for the tour operator of tourism satisfaction in the international market for guided package tours 21 .
Jacqueline M. Hamilton, David J. Maddison and Richard S. J. Tol (2005) in their research work titled “Effects of climate change on international tourism” present a simulation model of the flow of tourists between 207 countries. The study used to analyse the impact of climate change on international tourism and it found that with climate change, preferred destinations would shift to higher latitudes and altitudes. Tourists from temperate climates would spend more holidays in their home countries. As such tourists currently dominate the international tourism market; climate change would decrease worldwide tourism. Nevertheless, its effects are small compared to the baseline projections of population and economic growth 22 .
Masazumi Okano and Wong Heung Wah’s (2004) publication titled “Hong Kong Guided Tour: Contexts of Tourism Image Construction before 1997” made an good opinion with the guided tours that were produced by two types of institutions, namely the Hong Kong Tourist Association (HKTA) and the Hong Kong tour operators that catered for Japanese package tourists. The comparative study aims at revealing how important particular institutional context are in shaping the processes of image production in tourism. The paper concluded that various particular contexts have helped to shape the forms and characters of the tours, upon which the particular institutional structure of the tour producers and the personal aspects of the tour guide, have played a major role in the process 23 .
Stephan Haroutunian, Pandelis Mitsis and Panos Pashardes’s (2004) article titled “Using Brochure Information for the Hedonic Analysis of Holiday Packages”
15 investigates the extent to which hedonic analysis based on information drawn from the brochures of tour operators can be useful in explaining price variation between holiday packages. Using the quality characteristics of holiday packages in the Mediterranean drawn from the brochures issued by two major British tour operators, its finding is that hedonic analysis can give misleading results when the heterogeneity in the effects of these characteristics is ignored. The article illustrates this point using two possible causes of heterogeneity in the effects of quality characteristics and the policy implications of the empirical findings are discussed in detail 24 .
Kotler Philip, Bowen John and Makens Janes (2004) have written an interesting book on “Marketing for Hospitality and Tourism” which adopts a novel approach that makes it readable and easily understandable. Each chapter is supported by real life examples and the whole book revolves around case studies. It touches all those areas, which are in some way related to marketing. It emphasises that the aim of marketing is to create and deliver superior customer value and satisfaction. While quoting Professor Stephen Bernet, the book advocates that it should be really difficult to identify the marketing department in a tourist enterprise, as aim of each and every employee associated with the enterprise should be to bring maximum customer satisfaction, that is, everyone in the organisation should embrace marketing as a business philosophy. The book has been written in accordance with the present times and brings out a new and innovative marketing concept called “Societal Marketing Concept”. It further elaborates that in travel and tourism marketing functions through three different mediums namely, internal marketing, external marketing and interactive marketing. A separate section has been devoted to “electronic Marketing” and at the end each chapter is supported by addresses from the ‘world wide web” (www) 25 .
Kuo-Ching Wang, An-Tien Hsiehb and Wen-Yu Chen’s (2002) study titled “Is the tour leader an effective endorser for group package tour brochures?” adopts an epistemological perspective towards extending the limited research on the impact of tour leaders used in advertising as endorsers. A rigorous experimental design was employed; nine experimental groups were included, in total, 844 student subjects
16 participated in the study. The results showed that tour leaders as endorsers for group package tour brochures had a more positive advertising effectiveness than the traditional brochure design. Implications for managers and scholars are discussed and suggestions for the direction of future study and practice are also provided 26 .
Nancy Chesworth’s (2000) article titled “Value and Uses of Study Tours: A Glorified Vacation or a Valid Learning Experience?” has observed that to be a true professional in the tourism industry one must know what it is to be a tourist. This study looks at the student study tour as a means to enabling students to better understand tourists and tourism, and the impact of the tour on the student's life and learning. The discussion which follows the presentation of the ideas focused on benefits to students and professors participating in study tours, potential markets for study tours to Canada, the need for policies to ensure predictable administration and the need for study tours to incorporate a degree rigour consistent with that of other courses 27 .
Kuo-Ching Wang, An-Tien Hsieh and Tzung-Cheng Huan’s (2000) study “Critical service features in group package tour: An exploratory research” conducts exploratory analysis to identify the critical service features of the group package tour (GPT). Sample data come from the customer lists offered by a large wholesale travel agency. Data were collected from both customers and employees using critical incident technique (CIT). After the data collection, a rigorous categorization exercise was conducted. The study also discusses the implications for future systematic investigation, model development, and makes recommendations for tour operators 28 .
Andreas M. Riege and Chad Perry’s (1998) article ‘National Marketing Strategies in International Travel and Tourism’ focuses on how national travel and tourism authorities can market a country as a tourist destination, with particular reference to the marketing of Australia and New Zealand to target market in Germany and the United Kingdom. The study has given little research emphasise on marketing and distribution strategies that may be applied by travel and tourism
17 organisations, airlines and intermediaries to market a tourist destination successfully in overseas markets 29 .
Peter Nijkamp’s (1998) investigative article “Tourism, Marketing and Telecommunication- A Road towards Regional Development” starting from the concept of a global tourist village, highlights the rapidly increasing role of international tourism in sustainable development. The article argues that a balance has to be found between economic growth and ecological preservation of tourist areas. The level of tourist expenditures is to be evaluated against the social costs of the sector concerned. It explains some numerical results on a meta-analytical experiment on tourist income multipliers in various tourist areas 30 .
Cooper Chris et al (1993) have created a niche for themselves among the great scholars of tourism through their book “Tourism – Principles and Practices”. The book is divided into four parts. The 1 st part deals with the demand of tourism and includes concepts, definitions, consumer behaviour, various determinants and demand pattern. The 2 nd part deals with tourist destination and includes supply patterns, carrying capacity and above all the impacts of tourism. Third part deals with the role of government organisations in the development of tourism and the last part of the book is about tourism marketing. It gives a detailed account of tourism marketing, its history, planning, marketing mix and lastly the future of tourism 31 .
David Foster’s study on “Measuring Customer Satisfaction in the Tourism Industry” seeks to outline the way in which customer satisfaction has been measured in the Australian tourism industry and the means by which this could be developed further to provide a measure of satisfaction with Australia as a destination. . This paper also outlines some examples of the ways in which these measures have been undertaken at the enterprise level and the accreditation framework within which these are often established. It also proposes the idea that it may be useful to extend satisfaction measurement from a focus on the enterprise to that of the destination. This is a much more complex task at the individual
18 enterprise level but may be worth the effort as destinations compete for market share 32 .
Wahab Saleh et al’s (1976) “Tourism Marketing” is a pioneering work, organised and conceptually arranged in accordance with the demands of tourism as an industry that needs special marketing techniques different from other forms of industry. It states with the principles of general marketing and compares them with tourism marketing bringing out the difference between the two in clear and conspicuous terms. It gives a clear idea about tourism markets and the information system needed for successful accomplishment of objectives. A good thought has been provided to tourism marketing research that includes forecasting, planning and strategy 33 .
1.4.2 Studies in Indian Scenario
Kanwal Kapil and Sheeba Kapil’s (2009) paper titled “Incredible India – Building the Country as a Tourism Brand” gives an overview of the ‘Incredible India’ campaign undertaken by the Government of India to promote tourism in India. It highlights the measures taken by the Tourism Department in various countries across the world to promote ‘Brand India’. The success of this brand can be attributed as Digital Success since the major means of communication of this brand has been the Internet. The paper shows the need of a tourism brand arose, how was it communicated through the digital channel and how was it revamped with changing needs of the modern tourist. Yet despite all this, much smaller countries like Malaysia, Thailand, Singapore and Hong Kong get more tourist than India 34 .
Nirmala De Abreu’s (2008) analytical study titled “Sustainable Tourism in India with Special Reference to Goa” evaluates the performance of Indian tourism industry by analysing the promotional efforts undertaken by state of Goa. The study gives suggestions to improve the tourism industry in Goa and to make it more sustainable. The investigator put forth that tourism has an important place in the economy of Goa, but this has to be carried out in a very systematic manner. The study concluded by saying that only when the Government and the local people
19 come together to undertake promotional activities, which has been framed in a vigorous manner, tourism will be a boon else it will be a burden to the tiny beautiful state of Goa 35 .
Vaishali Goel and Bhavna Jaiswal’s (2008) research paper “Impact of Socio- Demographic Factors and Marketing Strategies on Tourism Industry in India” seeks to provide insights into how socio-demographic factors can complement tourism industry and how various marketing strategies help them to retain the customers. The findings of this empirical study shows that middle age, highly educated, business and service class, males and even married couples frequently avail the services of tourism industry. The study concluded with the hope that various marketing strategies will be helpful in future to convert challenges into opportunities 36 .
Dainora Grundey’s (2008) article “Managing Sustainable Tourism in Lithuania: Dream or reality?” reviews the theoretical conception of sustainable tourism development and different points of views into it. Principles of sustainable development, forms of sustainability are discussed in detail. Sustainable concept’s influence on tourism is also analyzed in the article in detail 37 .
Ashok Pathak and Krishna Kumar (2008) in their research paper titled “Adequacy and Effectiveness of Indian Tourism Websites for International Tourism in India” undertaken to evaluate the adequacy and effectiveness of the official websites of various tourism development corporations of India. The websites have been evaluated based on the variety of information, online accommodation, travel booking and other facilities and services offered by the websites. The study reveals startling inadequacies and gaps in the websites that need to be bridged. Given so many inadequacies observed during the study, the investigators finds it difficult to measure effectiveness of the websites as they were not very sure whether the objective of the websites really was to promote tourism potential of India amongst international tourists. The study highlights the need to manage international tourism with a lot more clarity and focus if India wants to benefit from potential of International Tourism. The main finding of the study is
20 that tourism websites are not just an online channel for providing information about tourism potential in India but also an electronic platform for generating desired tourism business. 38 .
Ravichandran K’s (2008) study on “Travellers’ Perceptions on Travel Service Providers in an Electronic Environment” specifically analyses the perception of travellers on traditional intermediaries and the internet facilitations for marketing travel and tourism. The research conducted to seek an insight on the perception of travellers particularly on the issue of disintermediation in the industry. It aims at assessing how travellers perceive the traditional travel intermediaries in the electronic environment. The study reveals the similarities as well as differences between the main categories of travellers such as the tourists, business travellers and additionally those who visited for other purposes 39 .
Tarannum Husain’s (2007) Ph.D. thesis titled “Promotional Strategies of Tourism Industry in Uttaranchal, State of India” gives a historical account of tourism and its development in the state. It sketches out the role of Uttaranchal Tourism Development Board (UTDB) in promoting tourism in the State. The study cites a brief outline of strategic planning for promoting tourism in Uttaranchal. The investigator suggests that in order to make tourism as an all season as well as purpose activity in the state of Uttaranchal, it is necessary to develop as well as promote adventure tourism, sport tourism, wild life tourism, in addition to pilgrimage tourism 40 .
Anil Sarin (2007) in the article “Contemporary Issues in Service Marketing” explains the concept of service marketing by highlighting the social dimensions of the service sector in Indian context. It discusses the recent trends and issues in service marketing and the concept of painless pain in services (PPS). The article suggests ways to diagnose and treat painless pain of the consumers. It incorporates changing customer behaviour in marketing strategies of different classes of service marketing 41 .
Bhaskar Rao’s (2007) study on “Tourists Perception towards Package Tours” intents to examine the perception of tourists, domestic as well as international,
21 towards package tours. The study identifies the motivators of tourism and the relationship between the socio-demographic factors of tourists and their preference towards package tours. It finds the propensity of pleasure of a tourist in package tour and considered it as the most important motivator of tourism. According to Rao package tour is a comprehensive programme arranged by a single institution which takes care of the interests of tourists in terms of accessibility, amenities, attractions, accommodation and activity 42 .
Taxpayer Services Directorate , Canada Revenue Agency (2007) has published paper on “Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases” which explains the phenomenon of package tours, its operations and rebate for package tours with special reference to foreign conventions and non resident exhibitor purchases 43 .
Sheeba Rani, D.M.’s (2007) research publication titled “Marketing of Tourism Services – A Case Study on A.P. Tourism (A.P.T.D.C. Ltd.), Visakhapatnam” analyses the marketing strategies and promotional techniques of Andre Pradesh Tourism Development Corporation Ltd. The study identified the important tourists’ places in Visakhapatnam, its marketing plan and strategy and sales promotion measures. It brought into light that ‘word of mouth’ communication is very effective because more than 50% of tourists come to know about Andhra Pradesh tourism through friends 44 .
Ganesan. G, and K Chandrasekar Rao’s (2006) research article “Performance of Tamil Nadu Tourism Industry” aims to analyse the performance of tourism industry and commercial and economic implications of the tourism industry in Tamil Nadu. The study emphasised that the flow of both domestic and foreign tourists to the state has increased sustainably. There is an increase in the income of the Tamil Nadu Tourism Development Corporation and the foreign exchange earnings through the tourism industry. The study pointed out that the Tamil Nadu Tourism Industry has contributed much to the development of the other allied industries particularly hotel and transport industries of the state 45 .
22 Fazili, Asif Iqbal’s (2006) PhD thesis entitled “A study of Marketing Strategies of Potential Tourism Products in Jammu and Kashmir” ascertains the position of the tourism industry in the state of Jammu and Kashmir. It looks into the all aspects of trade with special emphasises on marketing strategy adopting seven ‘P’s of marketing mix as variables. It is an explicit analysis of the facts that how tourism industry has evolved in this state, what new techniques have been used and developed to strengthen tourism and how far success has been achieved. It gives an insight into the tourists’ products and resourceful potentials of tourism market of the state 46 .
Selvan, V (2006) tries to look into the scope of marketing for medical tourism in India through her study on “Medical Tourism- the Next Big Opportunity to Prosperity”. The study analyses the role of private hospitals in promoting medical tourism and the impact of local health care centres on the medical tourism prospective business proposition. The author feels that the Indian healthcare industry should work more closely with the industry chambers and various government departments to spread the awareness and remove the hurdles particularly those pertaining to travel and legal formalities. The study strongly recommended to work towards getting accreditation for various hospitals to build perception of quality among the foreign tourists 47 .
Raina A K and Agarwal S K’s (2005) book titled “The Essence of Tourism Development, Dynamics, Philosophy and Strategies” is thought provoking. The central aspect of the book revolves around planning, promotion, strategies and human resource development. It takes note of the sustainable pattern of tourism development through studies on travel motivations, financial viability and effectiveness of tourism and its socio economic impacts. The last chapter makes an analysis of the future of tourism and its growth aspects. It identifies all those constraints, if, which not removed have the potential to harm the industry considerably 48 .
Renganathan. R’s (2004) article “Positioning Tourism Destination to Gain a Competitive Advantage” looks into the different parts of the positioning process
23 and applies it to the case of positioning destinations to visitors. The article advocates that the most effective tool in tourism marketing is positioning which evaluates a distinctive place in the minds of potential customers. It discusses the vital role played by positioning in tourism marketing and presents various approaches to positioning a tourism destination. By considering the plethora of activities in tourism, the author suggests tourism requires professionalism in major decisions and it is governed by excellence 49 .
Filipe Rodrigues e Melo and Huger. S.S’s (2004) research publication “Factors Influencing Performance of Goa Tourism Development Corporation (GTDC): A Multiple Regression Analysis” identifies the factors that determine the level of significance of the tourists satisfaction in regard to the services offered by GTDC via Accommodation, River Cruise Tours, and Package Tours. The Multiple Regression Analysis shows that the overall impression of the hotel depends upon the impression about the staff, room services and amenities in the bathroom. It demonstrates the entertainments provided during the river cruise. The result of the study pertaining to the package tours exhibited that the tourists were pleased with the time duration, entertainment provided and sightseeing trips conducted during the package tour programme 50 .
Prafulla Chandra Mohanty’s (2004) research paper titled “Marketing of Tourism Services in India. A Study with Special Reference to Orissa” is a trial to study the state of marketing of tourism services in India, the state of foreign and domestic tourists and the related trend, the share of India in the world tourism business, the employment opportunities rendered by this industry along with the availability of different infrastructural facilities like hotel, transportation etc. The paper ventilates some of the problems of Indian tourism market and suggests some improvements 51 .
Ashraf S. Hussain’s (2003) book titled “Strategic Tourism Management” reflects the significance of strategic management in the context of tourism industry. It made a thorough analysis of the concepts Business policy, strategic management, tourism policy and strategy. It incorporates all those principles that are mandatory in the policy making process and correlates them with the phenomenon of tourism 52 .
24 Minhaj Iqbal Ahmed’s (2002) Ph.D thesis entitled “Tourism Development in Agra – A Critical Analysis of Marketing Strategies” describes the historical background of tourism and its development in India with special reference to Agra. It makes an analysis of the state of tourism in Agra, and makes an assessment of the fact that why the home of one of the wonders of the world, Taj Mahal, are nowhere to be seen on the world tourism map in terms of numbers. It gives an account of the marketing strategies adopted for the promotion of tourism in Agra but lacks comprehensive data such as tourist arrival, income creation effects and overall impact of tourism on social-economic development of Agra 53 .
Subramanium Prem’s research article titled “Planning for Tomorrow’s Visitor” castigates the attitude of that the Indian tourism industry adopts for its growth and development. He argues that very often a tourist attraction is being looked after by more than one agency each working at loggerheads with one another. While quoting Mckinsey reports he adds that Indian organisation are good in strategy but lacking in execution. He further elaborate that for growth and development to take place, change is a must. Changes incorporated to enhance the visitor experience must be made bearing in mind the expectation of the visitors of tomorrow who are likely to be more demanding than the visitors of yesterday.
Seth Pran Nath’s (1997) book “Successful Tourism Management” analyses in chapters about tourism, its fundamentals, history, impacts, planning and role played by the state for its development. There is a section on tourism geography that connotes a relationship between tourists generating regions and destination areas. Last chapter has been dedicated to India as a destination signifying its tourist products in all their manifestations 54 .
Bhatia AK’s (1996) book titled “Tourism Developments and Principles and Practices” is a modest effort to explain the tourism phenomenon. It explores the import concepts in tourism, what makes tourism possible and how tourism is an important factor in the prosperity of any nation. An attempt has been made to piece together facts relevant to the early history and development of tourism. It includes subjects such as elements of tourism; tourism psychology and motivation for travel,
25 cultural tourism and social tourism; how tourism is planned, organised, developed, and promoted; tourism research and benefits of tourism. The book also included chapters as international tourism organisation, accommodation, and travel agent and transportation. Later in the book, a comprehensive glossary of tourist and travel terms, a list of tourists trade, journals and periodicals and publications of international organisations have been provided 55 .
Jha A M (1995) in his book “Tourism Marketing” discusses the aspects of tourism industry in the Indian context. The book argues about the fact that why is tourism marketing necessary and how it can be made possible and applicable in India. It explains the Users’ behavioural profit and follows it with tourism product planning, development and research. This is further followed by market segmentation and marketing strategy, which has been described on the basis of 4 ‘P’s parameters of marketing mix, that is product, price, place and promotion 56 .
Bhatia AK (1991) explains the tourism concept in detail throughout his book “International Tourism Fundamentals and Practices”. It sets out a systematic frame work to explain the global aspects of tourism industry in its various manifestations with special emphasis to marketing. Starting from the historical perspectives of tourism to its evolution as one of the largest global industry, the book touches all those gestations that are in some way correlates with the phenomenon of tourism. It tries to cover the nature, structure and organisation of the global tourist industry and its image on various economic, social and cultural aspects of nations 57 .
Sudhir H. Kale, Roger P. Mcintyre and Katherine M. Weir’s (1987) study on “Marketing Overseas Tour Packages to the Youth Segment: An Empirical Analysis” examines the travel preferences of the youth segment and compares these preferences to representative tour offerings targeted to the 18 to 35 age group. The study concluded that the current emphasis on the activities component in a tour package for the youth segment is misplaced; potential travellers in this age group place a higher value on free time, flexibility, exposure to the local culture, and the opportunity to visit scenic attractions 58 .
26 1.4.3 Studies in Kerala Scenario
Sanil Subhash Chandra Bose (2009) published a scholarly article on “ Kerala Tourism Marketing Strategies & Recommendations”. Through this article the investigator makes a comparative study of the marketing strategies adopted by Kerala tourism and Goa tourism for backwaters and beaches in both the states. The study further analysis the strengths, weaknesses and opportunities of Kerala tourism industry through a SWOT analysis. Then it put forward necessary recommendations required for further improvements. But the study has not been elucidated any marketing strategies adopted for backwater tourism in the State 59 .
Ajims P Mohammed and Jagathyraj VP’s (2008) paper on “Challenges Faced by Kerala Tourism Industry” is a comprehensive study covering the whole Kerala state. It requires extensive travelling in all the districts of Kerala in order to collect primary data. The researchers made a humble attempt to bring into light the problems, weaknesses, short comings and plain realities associated with the management of tourism industry in Kerala 60 .
Siby Zacharias, James Manalel, M.C. Jose and Afsal Salam (2008) made an attempt through the article “Backwater Tourism in Kerala: Challenges and Opportunities” to find out the effect of backwater tourism on the environment and the use of Kettuvallom by tourists arriving at backwaters of Kerala. The study is based on the primary data, derived through sample survey using pre-tested structured instrument. The sample designs were based on random sampling. The study finds ample evidence to conclude that there is an adverse effect of backwater tourism on environment, and house boats (Kettuvallom) are the integral part of backwater tourism 61 .
Santosh. P. Thampi’s (2005) conducted a study on the “Ecotourism in Kerala, India: Lessons from the Eco-Development Project in Periyar Tiger Reserve” to evaluate the ecotourism project at the Periyar Tiger Reserve at Thekkady in Kerala. The study analyses the project, India-Eco-Development, undertaken by the Ministry of Environment to promote local community participation in forest management in the state. A brief account of Ecotourism initiatives in the Periyar Tiger Reserve and
27 a review of the project, based on the principles of Ecotourism are included in this work 62 .
Antony Joseph, (2004) in his study on “Problems and Prospects of Pilgrim Tourism with Special Reference to Sabari Pilgrimage” focuses on the keenly felt problems, major as well as minor, associated with Sabari Pilgrimage during the Manadala season. The paper systematically tries to analyse the problems faced by the pilgrims, and to study the level of satisfaction regarding various facilities provided at Erumely and Sabarimala . And also takes into consideration the variations among the pilgrims on the basis of domicile. The study recommended that, as Sabari pilgrimage is an important source of income from tourism to Kerala, the Government should take adequate measures to solve the problems discussed so as to provide a warm welcome to the pilgrim tourists to the God’s own country 63 .
1.5 Research Gap
From the foregoing comprehensive literature review it peters out that the studies in international as well as national scenarios have covered almost all possible aspects of tourism marketing but the studies made on Kerala tourism marketing are very few in analytical framework. There is still a gap for studying the various issues on Kerala tourism marketing which have not been covered by authors of Kerala based studies. It has been observed that most of the studies are concerned with eco- tourism initiatives, pilgrim tourism, backwater tourism or present state of tourism industry in the state. Moreover, the researcher could not identify even a single study on KTDC’s marketing strategies and its tour packages. The present study differs from the earlier studies which cover almost all aspects of tourism marketing at international or national level only, but this made an earnest attempt to trace out the marketing strategies of tour packages in Kerala with special reference to Kerala Tourism Development Corporation.
28 1.6 Need and Significance of the Study
Tourism has emerged as one of the few economic alternatives to develop the state’s economy. It has been recognized as an important sector for the development on account of its potential for generating income and employment. In the context of poor prospects of the manufacturing sector and the severe threats facing agricultural and traditional sectors and the uncertainties facing expatriate employment in the Gulf, tourism is considered as one of the sectors, which can drive Kerala economy to take the state to the pinnacle of socio-economical development. Therefore, a planned and strategic approach to travel and tourism has become an urgent requirement for the socio-economic development of the state. Still the government of Kerala, its agencies and other private sector groups are actively engaged in the promotion of tourism in the state, they failed to identify and market all the potential tourism products of the state and to attract more and more tourists (international and domestic) to the enchanting state of India. The present study “Marketing Strategies of Tour Packages in Kerala- A Case Study of Kerala Tourism Development Corporation (KTDC), Kerala” would be significant to all parties who have engaged in tourism marketing and promotional activities, both government and private.
The study will be a model for similar researches in the field of tourism marketing in future. It will help in improving the image of Kerala as an important tourist destination of the country. The study can be considered as a model in planning tourism related marketing activities for tour operators and agencies. Tourism planners and policy makers will get an insight into the tourism promotional activities of the Kerala and the present position of the state. Moreover, this will be a helping guide to KTDC to understand its marketing activities, promotional efforts and overall operations.
1.7 Scope of the Study
The study on the Marketing strategies of tour packages in Kerala with special reference to Kerala Tourism Development Corporation would cover the marketing and promotional strategies undertaken by the organisation for its tour packages. It
29 analysed and evaluated the satisfaction of tourists with the services of KTDC. The study tackled the entire tourism marketing activities of the state in the light of the activities undertaken by the Kerala Tourism Development Corporation in marketing the tourism products in the state. By this investigation the researcher focussed to review the marketing aspect of Kerala tourism, to evaluate the performance and resource potential of Kerala tourism industry, to examine the working structure and overall operation of KTDC, to identify KTDC’s contribution to tourists arrivals in the state by way of tour packages, to analyse the marketing strategies of tour packages in Kerala with special reference to KTDC, and to understand the satisfaction level of tourists with the tour packages offered by the Corporation.
1.8 Objectives of the Study
By identifying the research gap, need and significance, and scope of the present study, the following objectives have been pursued to analyse the marketing strategies of tour packages in Kerala.
1) To analyse the performance and resource potential with special preference to attraction dimension of Kerala tourism industry.
2) To examine the working structure and overall operations of Kerala Tourism Development Corporation with special focus on marketing functions and operations.
3) To estimate KTDC’s contribution to tourists inflows in the State by way of tour packages by conducting a simple random sample survey.
4) To analyse and evaluate the marketing strategies of tour packages in Kerala state with special reference to KTDC.
5) To understand the satisfaction levels of both domestic and foreign tourists with the tour packages offered by KTDC in Kerala state.
6) To incorporate necessary recommendations to improve the overall performance of Kerala Tourism Development Corporation (KTDC).
30 1.9 Hypotheses of the Study
In order to fulfil and achieve the stated objectives of the research the study has been made on the basis of certain hypotheses. The hypotheses of the study were formulated according to the need and significance, importance, and objectives of the study. The study has taken into consideration the following null and alternative hypotheses.
Hypothesis: 1 Ho: The working structure and overall operations of Kerala Tourism Development Corporation (KTDC) is unsystematic to realise the objectives of tourism marketing. Ha: The working structure and overall operations of Kerala Tourism Development Corporation is systematic to realise the objectives of tourism marketing.
Hypothesis: 2 Ho: KTDC’s contribution to tourist inflows in the state of Kerala by way of tour packages is insignificant. Ha: KTDC’s contribution to tourist inflows in the state of Kerala by way of tour packages is significant.
Hypothesis: 3 Ho: KTDC has vague marketing strategies for its varied tour packages offered in Kerala. Ha: KTDC has clear and well structured marketing strategies for its varied tour packages offered in Kerala.
Hypothesis: 4 Ho: There is no significant difference between the satisfaction levels of domestic and foreign tourists with the tour packages in Kerala offered by KTDC. Ha: There exists significant difference between the satisfaction levels of domestic and foreign tourists with the tour packages in Kerala offered by KTDC.
31 1.10 Methodology of the Study
The research methodology discusses the research methods available for the study and what is applicable for it to use. Likewise, it presents how the research is implemented and how it comes up with pertinent findings.
1.10.1 Research Approach
The descriptive method of research proves appropriate in the type of data needed for this study. The method consists of gathering, presenting, and analyzing qualitative as well as quantitative data necessary to suggest solutions for the present problem. The descriptive method of research is appropriate for investigating the existing condition of the topic that is the marketing strategies of tour packages in Kerala with special reference to KTDC. The method also provides for the identification of the causes, factors, and other issues regarding the topic in hand. Thus, the descriptive method is appropriate in this study as it could materialize the gathering of evidences for the purpose of suggesting solutions to the problems raised in this study.
1.10.2 Sources of Data
Since the study was conducted in descriptive style both secondary and primary data were used.
Secondary Source: The present study has been based on both primary as well as secondary data. However, due to the nature of the topic and certain limitations the researcher has been forced to use secondary data in the most parts of the study. The data compiled by Department of tourism, Government of Kerala; Kerala Tourism Development Corporation; Department of tourism, Government of India; Indian Tourism Development Corporation, Kerala Directorate of Economics and Statistics and various other state and central agencies were used to draw the relevant conclusions for the study. In addition to these, information collected from various news papers, magazines, journals, survey reports, brochures, booklets, books, published as well as unpublished research works, and tourism related literature published by various organisations were used as source of secondary data.
32 Moreover, relevant data from various tourism- related websites has also been utilized at certain places.
Primary Source: In order to ensure reliability and validity and to give more satisfaction to the above mentioned information, the investigator has collected additional data directly from the tourists and the officials and staff at KTDC. Data regarding the tourist satisfaction with the quality of the tour packages offered by KTDC in Kerala and the Corporation’s contribution to the tourists inflows in the state by way of tour packages were collected with the help of two set of questionnaires.
1.10.3 Data Collection Methods
The secondary data required were collected both from published and unpublished sources. For collecting the primary information for the present study the following methods were adopted.
Interview: In order to collect relevant information regarding the working structure, overall operations and the marketing strategies for tour packages of Kerala Tourism Development Corporation, the investigator conducted structured and instructed interview with the Managing Director, Marketing Manager, Deputy Marketing Manager and other important managerial level officials within the Organisation. Beyond these, informal discussions were conducted with various officials of KTDC.
Surveys: Two sample surveys were conducted for collecting data directly from tourists with the help of questionnaires. Survey first based on simple random sample method was administered in three different phases to understand KTDC’s contribution to tourist inflows in the State and the results were discussed in the 4 th chapter of this study. The purpose of the second survey was to ascertain the satisfaction levels of both domestic and foreign tourists with the tour packages in Kerala State offered by KTDC.
33 1.10.4 Tools for Data Collection
Questionnaires: Two sets of questionnaires were used to collect the required data directly from tourists. The questionnaire for the first survey included 6 multiple type items and the results were discussed in 4th chapter of this study. The purpose of the 1 st set of questionnaire was to collect data about the tourist arrivals in the state of Kerala by means of tour packages. The second survey was administered with a set of questionnaire having two sections consisting of demographic information and 49 statements (attributes) relating to the quality of tour packages. The questions were developed to fit within the 12 dimensions that determine the quality of tour packages, viz. Attractions, Accommodation, Transportation, Entertainment, Food and Refreshment, Shopping arrangements, Staff response, Price, Safety and Security, Communication, Booking, and Managerial efficiency. The responses were measured on a 5 point Likert scale by indicating 1 for ‘strongly disagree’ and 5 for ‘strongly agree’. Both the set of questionnaires are appended in the last pages of this thesis under the head appendices.
1.10.5 Sample Design
Simple random sampling technique was adopted for the first survey. The number of samples was 2279 which consists of 1837 domestic tourists and 442 foreign tourists. The number of male and female tourists were 1287 and 992 respectively.
For the second survey, to collect information about tourist satisfaction, purposive sampling technique was adopted. A total of 393 structured questionnaires were distributed among the selected samples, of these 41 were not returned and 19 were discarded since they were partly filled. Among the 334 final sample size the representation of domestic and foreign tourists were 234 and 100 respectively.
1.10.6 Data Analysis
The data collected from primary as well as secondary sources were analysed and interpreted and on the basis of which conclusions were drawn. For analysing the data in quantitative nature SPSS (16.version) software was used by adopting the following statistical tools.
34 • Simple averages or arithmetic mean, standard deviation and percentage comparisons were used to understand tourist satisfaction levels and the contribution of KTDC to tourist inflow in the State by way of tour packages. • Factor Analysis with Principle Component Method and Multiple Regression analysis were used to identify the major satisfaction and quality determinants (factors) of tour packages. • Mann Whitney Test (Non-parametric statistical analysis, used since the data collected does not possess normality) was adopted to determine whether there exists any significant difference between the satisfaction level of domestic and foreign tourists.
Since the study based on qualitative data as well, the analysis of such information is carried out through the following:
• SWOT analysis was used to analyse the working structure and overall operations of KTDC with special focus on marketing function on the basis of its Strengths, Weaknesses, Opportunities and Threats. • Strategic Analysis on the basis of 7 ‘P’s of Tourism Marketing Mix concept; and analysis based on different marketing approaches (strategies): By these two analytical methods the marketing strategies of KTDC for tour packages were analysed and evaluated.
1.11 Limitations and Delimitations of the Study
Though, the study is comprehensive and systematic exploration into the marketing strategies of tourism, it may place certain restrictions on the conclusions and their application to other situations. The following are such important limitations and delimitations of the present study.
1) The study mainly based itself on the information obtained from secondary sources i.e. the data compiled by Department of tourism, Government of Kerala, Kerala Tourism Development Corporation, Indian Tourism Development Corporation, Kerala Directorate of Economics and Statistics etc.
35 The study, therefore, is a representative of the realities, facts and figures, analysed and discussed, and conclusions derived on their basis only. 2) Since the study has focussed only on the marketing strategy aspects of tour packages and tourists satisfaction; it may not be applicable to the other dimensions of tourism marketing. 3) The unavailability of adequate literature and data regarding the Kerala tourism made it difficult to incorporate all the necessary information in this study. 4) As the study is conducted exclusively in state of Kerala, the conclusions drawn may not be universal to the all states of India and other parts of the world. 5) The detailed tourism statistics in Kerala are available only up to the year 2007, beyond this only the highlights are available for 2008; the study could not be included detailed tourist statistics beyond the year 2007 even the study extends up to March 2010.
1.12 Design of the Study
For presenting the study in an elaborative, comprehensive and right perspective, the layout of the study has been arranged into relevant and appropriate chapters.
Chapter 1: Introductory Background, Research Design and Frame Work of the Study.
The first chapter gives a brief account of tourism perspectives at international, national and state levels. It introduces the problem, sets objectives and hypotheses, and indicates the design and methodology employed. The chapter also presents the research gap, need and significance, scope, and limitations and delimitations. The researcher also opts to summarise the findings and conclusions of the various studies made by different scholars in the relevant field in a critical manner.
Chapter 2: Marketing Strategies of Tour Packages: Concepts and Philosophies.
Chapter second discusses the concept of marketing in general and marketing of tourism particular. It explores the concepts and philosophies of marketing strategies of tourism products and tour packages by different scholars and outlines the different marketing strategies which can be applicable for tour packages.
36 Chapter 3: Performance and resource potential of Kerala Tourism Industry
This chapter consists of two sections. The section first analyses and discusses the performance of Kerala tourism industry with regard to the tourist inflows and generation of income from tourism in the State. The latter section analyses the resource potential of Kerala tourism with special focus on the attraction dimension and presents a description on major tourism resources in the State.
Chapter 4: Working Structure and Overall Operations of Kerala Tourism Development Corporation.
The fourth chapter of the thesis sketches out the organisational structure and overall operations of the Kerala Tourism Development Corporation with special focus on marketing operations. It also estimates KTDC’s share in tourist’s arrivals in the State by means of tour packages with the help of a simple random sample survey. Latter a SWOT analysis was carried out in order to identify the strengths, weaknesses, opportunities and threats of KTDC in marketing tour packages and other tourism products.
Chapter 5: Marketing Strategies of Tour Packages in Kerala with special reference to KTDC: Analysis and Evaluation.
This chapter focuses on the marketing strategies of tour packages in Kerala state with special reference to Kerala Tourism Development Corporation. It analyses and evaluates the various strategies adopted by KTDC for marketing tour packages in Kerala. The chapter is based on a thorough analytical review of all the strategies involved and uses the 7 ‘P’s of tourism marketing mix and different marketing approaches for analysing the marketing strategies adopted.
Chapter 6: Tourist Satisfaction With KTDC’s Tour Packages: An Empirical Analysis.
Chapter six exclusively dedicated to analyse and evaluate empirically the satisfaction levels of tourists both domestic and foreign. It presents the results of various statistical analyses in the form of tables and figures.
37 Chapter 7: Summary of finding, Suggestions and Conclusion
The last chapter highlights the major findings of the study in a summarised form and put forward important suggestions based on the major findings. At the end the investigator draws conclusions in the light of these findings.
38 References
1. Vaishali, G., & Jaiswal, B. (2008). Impact of socio-demographic factors and marketing strategies on tourism industry in India . Paper presented in The Conference on Tourism in India. Calicut: Indian Institute of Management. 2. Husain, T. (2007). Promotional strategies of tourism industry in Uttaranchal, State of India . Doctorial Dissertation, Jamia Milliya Islamic University, New Delhi. 3. Jha, S.M (1997). Tourism marketing . New Delhi: Himalaya, p.3. 4. Mohanty, P. C. (2004). Marketing of tourism services in India a study with special reference to Orissa. Orissa Review, p. 8-10. 5. Weaver, D & Laura, L. (2006). Tourism management. (3 rd ed) New Delhi: Wiley, p.3 6. Marketing Division. (2008) India tourism statistics. Ministry of Tourism; Government of India.p. 57-68 . 7. Ibid. 8. Ibid., p. 7-56 9. Ibid., p. 7-56 10. Department of Tourism. (2007). Kerala tourism statistics . Trivandrum: Government of Kerala. 11. Ibid., p.150 12. Michael, C., et al. (2009). Online and off-line travel packages preferences: A conjoint analysis. International journal of tourism research, 11, 31-40. www.interscience.wiley.com 13. Karanasios, S., & Burgess, B. (2008). Tourism and internet adoption: A developing world perspective. International Journal of Tourism Research, No. 10. Pp. 169- 182. www.interscience.wiley.com 14. Matei, E., & Simon, T. (2008). India in Romania’s travel packages – an analysis. South Asian Journal of Tourism and Heritage, 1, 1. Pp. 32 -38. 15. Wang, Y. (2008). Web-based destination marketing systems: Assessing the critical factors for management and implementation. International Journal of Tourism Research , 10. 55- 70. www.interscience.wiley.com 16. Savri ņa, B., Dainora, G., & Berzina, K. (2008). Cooperation–the form of sustainable tourism industry in Latvia. Technology and Economic Development. Baltic Journal on Sustainability , 14 (2). Pp. 151-161. DOI-10. 3846/1392- 8619- 2008, 14, 151-161 17. Savri ņa, B., Dainora, G., & Berzina, K. (2008). Cooperation–the form of sustainable tourism industry in Latvia. Technology and Economic Development. Baltic Journal on Sustainability , 14 (2). Pp. 151-161. DOI-10. 3846/1392- 8619- 2008, 14, 151-161 18. Ljiljana, S., & Petrovic, J. (2007). Marketing of tourism destination of Nis. Facta University, series. Economics and organisation , 4, 1,. 9-20. 19. Arabi, U. (2007). On-Line tourism services in developing countries: Need for website marketing infrastructure. Indian journal of marketing, Pp. 25-38 & 46. 20. Joaquin, A. & Maria, S. (2006). Tour operators’ price strategies in the Balearic Islands . Working paper. 21. Bowie, B., & Chang, J. C. (2005). Tourist satisfaction: A view from a mixed international guided package tour. Journal of Vacation Marketing , 2, 4. 303-322. 22. Hamilton, J. M., David, J. M. & Richard, S. J. T. (2005 October). Effects of climate change on international tourism. Climate research , 29, 245-254. 23. Masazumi, O., & Wah, W. H. (2004). Hong Kong guided tour: Contexts of tourism image construction before 1997. Taiwan Journal of Anthropology ,2, 2 115-153.
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24. Haroutunian, S., Pandelis, M., & Pashardes, P. (2004). Using brochure information for the Hedonic analysis of holiday packages. Economic Policy Paper, University of Cyprus. 25. Kotler, P., John, B., & James, M. (2004). Marketing for hospitality and tourism. Singapore: Pearson Education. 26. Wang, K. C., Hsiehb, A. T., & Chen, W. Y. (2002). Is the tour leader an effective endorser for group package tour brochures? Pegamon tourism management , 23. 489-498. 27. Chesworth, N. (2000). Value and uses of study tours: A glorified vacation or a valid learning experience? Travel and Tourism Research Association . White house- Canada. 17-19. 28. Wang, K. C., Hsieh, A. T., & Huan, T. C. (2000). Critical service features in group package tour: An exploratory research. Tourism Management , 21 177-189. www.dsevier.com/locate/tourman 29. Andreas, M. R., & Perry, C. (1998). National marketing strategies in international travel and tourism. European Journal of Marketing , 34, 11/12, 2000, pp. 1290- 1304. www.emerald-librarry.com 30. Nijkamp, P. (1998). Tourism, marketing and telecommunication- a road towards regional development. Serie Research Memoranda , 28. 31. Cooper, C et al. (1993). Tourism principles and practices . London: Pitman 32. Foster, F. (2001) Measuring customer satisfaction in the tourism industry. Paper presented at National Research Conference on Quality Management, RMIT University. 33. Wahab, S., Crompton, L. J., & Rothfield. (1979). Tourism marketing. London: Tourism International Press. 34. Kanwal, K., & Sheeba, Ka. (2009). Incredible India – building the country as a tourism brand. BVIMR Management Edge , 2, 1, p.48-53. 35. Nirmala, D. A. (2008). Sustainable tourism in India with special reference to Goa . A pictorial view of tourism. 36. Vaishali, G., & Jaiswal, B. (2008). Impact of socio-demographic factors and marketing strategies on tourism industry in India . Paper presented at Conference on tourism in India- challenges ahead , Calicut: IIMK. 37. Grundey. D. (2008). Managing sustainable tourism in Lithuania: dream or reality? technological and economic development. Baltic Journal on Sustainability , 14, 2 pp.118-129. 38. Pathak, A., & Kumar, K. (2008). Adequacy and effectiveness of Indian tourism websites for international tourism in India. Paper presented at Conference on tourism in India- challenges ahead , Calicut: IIMK. 39. Ravichandran, K. (2008). Travellers’ perceptions on travel service providers in an electronic environment. Indian Journal of Marketing , pp. 21-28 & 41. 40. Tarannum, H. (2007). Promotional Strategies of tourism industry in Uttaranchal, State of India . Doctorial Dissertation, Jamiya Millia Islamic University, Delhi. 41. Sarin, A. (2007). Contemporary issues in service marketing. Indian Journal of Marketing , 37, 10. Pp. 40-44. 42. Rao, B. (2007). Tourists perception towards package tours. Indian Journal of Marketing . 34, 4, 28-31. 43. Taxpayer Services Directorate Report. (2007). Rebate for tour packages, foreign conventions, and non-resident exhibitor purchases. Canada Revenue Agency. 44. Rani, S. D. M. (2007). Marketing of tourism services – a case study on A.P. tourism (A.P.T.D.C. Ltd.), Visakhapatnam. Indian journal of marketing . pp. 32-39.
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45. Ganesan, G. & Chandrasekar, R. K. (2006). Performance of Tamilnadu tourism industry. Indian Journal of Marketing , 35, 6, Pp. 3-9 & 38. 46. Fazili, A. I. (2006). A study of marketing strategies of potential tourism products in Jammu and Kashmir. Unpublished doctorial thesis, Aligarh Muslim University, Aligarh. 47. Selvan, V. (2006). Medical tourism- the next big opportunity to prosperity. Indian Journal of Marketing, 36, 2.12-14. 48. Raina, A. K., & Agarwal, S. K. (2005). The essence of tourism development, dynamics, philosophy and strategies. New Delhi: Sarup and sons. 49. Renganathan, R.(2004). Positioning tourism destination to gain a competitive advantage. Indian Journal of Marketing , 34, 9, 6-10. 50. Filipe, R. M., & Huger, S.S. (2004). Factors influencing performance of Goa Tourism Development Corporation (GTDC): A multiple regression analysis. Indian Journal Marketing, 34, 9, 11-15. 51. Mohanty, P. C. (2004). Marketing of tourism services in India: A study with special reference to Orissa. Orissa Review , Orissa: I&PR Deptt. Govt. of Orissa, Pp. 8-10. 52. Ashraf, S. H. (2003). Strategic Tourism Management. New Delhi: Century. 53. Minhaj, I. A. (2002). Tourism development in Agra – a critical analysis of marketing strategies . Unpublished Doctorial Dissertation, Aligarh Muslim University, Aligarh. 54. Nath, S. P. (1997) Successful tourism Management: Fundamentals of Tourism . New Delhi: Sterling. 55. Bhatia, A. K. (1996). Tourism developments, principles and practices. New Delhi: Sterling. 56. Jha, S. M. (1997). Tourism Marketing. New Delhi: Himalaya. 57. Bhatia, A. K. (1991). International tourism fundamentals and practices . New Delhi: Sterling. 58. Sudhir, H. K., Roger, P. M., & Katherine, M. W. (1987). Marketing overseas tour packages to the youth segment: An empirical analysis. Journal of Travel Research , 25, 4, 20-24 (1987) DOI: 10.1177/004728758702500404) 59. http://www.iamaceo.comkeralatourism 2009 60. Ajims, P. M. & Jagathyraj, V. P. (2008). Challenges faced by Kerala tourism industry. Paper presented at Conference on Tourism in India- Challenges Ahead , Calicut: IIMK. 61. Zacharias, Z., Manalel, J., Jose, M. C., & Salam, S. (2008). Backwater tourism in Kerala: challenges and opportunities. Paper presented at Conference on tourism in India- challenges ahead . Calicut: IIMK. 62. Thampi, P. S. (2005). Ecotourism in Kerala, India: Lessons from the eco- development project in Periyar Tiger Reserve. Ecoclub.com. E. paper, Nr.13. 63. Joseph, A. (2004). Problems and prospects of pilgrim tourism with special reference to Sabari Pilgrimage. Indian Journal of Marketing .34, 8, Pp. 26- 28.
41 CHAPTER - 2 Marketing Strategies of Tour Packages: Concepts and Philosophies
The previous chapter discusses the introductory background, research design and frame work of the present study. It also gives an account of the findings and conclusions of the various studies made by different scholars in the relevant field in a very precise manner. The present chapter is exclusively devoted for making a conceptual exposition of marketing and to explore the concepts and philosophies of Marketing Strategies of tour packages.
As tourism is the fastest growing industry in the world, it became one among the world’s most competitive industries. The competition is increasing day by day since more and more countries seek to attract tourists and more companies and organisations become involved in the highly skilled business of transporting, accommodating and catering for tourists. Just as any other products tourism too needs to be marketed, as it is an industry in which the customers still have an immense variety of choices and also varied motivations for travel. There are a number of destinations and tour companies competing with each other to get a bigger and bigger share of the market. It is, therefore, necessary to have a good knowledge of general marketing principles before approaching marketing in tourism.
2.1 The Concept of Marketing
The ultimate purpose of production is the satisfaction of human needs and wants. Production of goods and services become meaningless, unless they are distributed to ultimate consumers. The goods and services should be transferred to consumers at a time when they need them. Consumers can satisfy their needs and wants only when goods or services reach in their hands at the time of their demand. Marketing helps in doing so. Thus marketing makes goods and services more useful to the society by getting them where they are wanted and by supplying them to those people who want them. It is in this sense that marketing means all activities involved in the creation of place, time and possession utilities. 1 Place utility is created by transferring the goods and services from the place of production to the place where they are needed. Time utility is created by making goods and services available to consumers at a time when they are needed. And the possession utility is created by transferring the ownership and possession of goods and services from the manufacturer to the consumer. Marketing, therefore, is concerned with all activities which are involved in the process of transferring goods from the point of production to the point of consumption.
In the modern market, customer is the king and he is the centre of all marketing activities. The aim of marketing is to know and understand the customer and his needs and wants. Hence, marketing is the process of formulating and implementing strategies and policies to satisfy the needs and wants of customers to maximise profit. According to Kotler, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others. 2 Thus, marketing is a human activity directed at satisfying needs and wants through exchange process. 3 It is concerned with exchange relationships in which the parties to the exchange are seeking to maximise their personal satisfaction.
Marketing is practically a blueprint on how to operate the business successfully. This is how a management policy that concentrates on the customer to ascertain his needs, even influence these needs, and to satisfy them in a profitable way.
The concept of marketing has been growing multi-dimensionally and multi- disciplinary. Moreover, marketing has permeated into each and every functional aspects of the business. All these have contributed to the confusion that is prevailing now on precisely defining the term marketing. Therefore, in order to have better understanding of the concept marking, the following definitions deserve attention.
The American marketing Association defines marketing as “the process of planning and executing the conception, pricing, promotion and distribution of ideas,
43 goods and services to create exchange and satisfy individual and organisational objectives”.4
The British Institute of Marketing defines “marketing is the management function which organises and directs all those business activities involved in assessing and converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final customer or user so as to achieve the profit target or other objectives set by the company” 5
The Institute of marketing has defined marketing as “the creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them. It coordinates the resources of production and distribution of goods and services; determines and directs the nature and scale of the total effort required to sell profitably the maximum production to the ultimate user.” 6
Theodore Levitt defines “marketing focuses on the need of the buyer, selling focuses on the need of the seller. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the need of the customer by means of the product and a whole cluster of things associated with creating delivering and finally consuming it”. 7
William H Kaven defines “marketing is the business process by which the existing and potential demand for goods and services is determined, cultivated, and then supplied by the seller. The process includes the efforts of all functional areas of the seller working in concert to produce at the right, tome and place the service or product that meets the market’s demand and the marketers profit goals”. 8
David Weaver and Laura Lawton defined “marketing involves the interaction and interrelationships among consumers and producers of goods and services, through which ideas, products, services and values are created and exchanged for the mutual benefit of both groups” 9
Salah Wahab defines “Marketing is continuous process which shapes and conditions all enterprises activities to achieve the established objectives through consumer satisfaction”. 10
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Michael J. Baker defines “marketing is an enigma. At the same time it is both simple and complex, straightforward and intricate a philosophy or state of mind and a dynamic business function; it is new and it is as old as time itself” 11
Xavier M. J. says “Marketing simply means that a company should understand the needs and wants of people and satisfy them. One need not be an expert in marking to understand this simple and powerful concept”. 12
William H. Kaven defines marketing as “the business process by which the existing and potential demand for goods and services is determined, cultivated and then supplied by the seller. The process includes the efforts of all the functional areas of the seller working in concert to produce at the right price, time and place the service or product that meets the market’s demand and the marketer’s profit goal”.13
Kotler defines as “the marketing concept holds that the key to achieving organisational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors” 14
Kotler further defines Marketing Management as the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organisational objectives. 15
An analytical view of the above definitions reveals that marketing is basically associated with: • exploration, identification and analysis of consumer needs and wants, • prediction of customer behaviour, • converting customer needs and wants into effective demand • consumer satisfaction is preponderant as it is the gate to the profit goal, • creation or modification of the product or service to match such needs and wants, • development of a strategy that satisfies both customer needs and business objectives and thereby widens the scope for reciprocal interaction, as a
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result a strong relationship between the customer and seller can be developed, and • Moving the products to the final consumer or user so as to achieve the objectives set by the organisation.
Therefore, the essence of the marketing concept is that organisations achieve objectives by satisfying customers. 16 With competition a fundamental aspect of market-driven economies, the marketing perspective asserts that the key to achieving organisational goals is for organisations to determine the needs and wants of target markets and to deliver the desired satisfaction more efficiently and effectively than competitors. 17 In its simplest form marketing is a philosophy of doing business which puts the potential customers at the centre of organisational strategy by saying that “if we don’t have any customers then we don’t have any business. So it is the best interests to build up good relationship with them that helps to know the customer and to understand needs, wants, desires, preferences and demands.
2.2 Services Marketing
Marketing is often defined in terms of both products and services. Due to two reasons marketing executives and academicians generally focus their attention on products; first, in the industrial society products have determined the standard of living and secondly, the services can be marketed in much the same way as products. Therefore, in marketing concept focus has been on marketing of products rather than services. However, the situation has been changed a great deal and in the post industrial society, the service sector has grown rapidly and services are deciding quality of life. Products can satisfy mainly physiological needs but to satisfy the social and psychological needs services are required. Hence, it has been forced to design and formulate strategies for marketing services.
A service is defined as any ‘activity that one party can offer to another which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product’.18 Although the theory of marketing has been argued to have universal value, in the sense that the same core
46 concerns and principles apply whatever the nature of business, it is widely accepted that there exist certain differences in marketing approaches for products and services. 19 According to Rathwell Marketing is not concerned solely with tangible goods, it also plays a similar role in connection with the distribution of services. 20
The service marketing activities are fundamentally different from the marketing of goods. This holds true even though the service sector interfaces with goods such as debit cards, ATMs, duty free merchandise etc., and notwithstanding the fact that many important marketing principles are equally applicable to both goods and services. In general, the key marketing characteristics that distinguish services from goods are; intangibility, inseparability, variability, and perishability. 21
a) Intangibility: In contrast to physical products and goods, services have intangibility, they cannot be directly seen, tasted, felt or heard prior to their purchase and consumption. Furthermore, customers usually have only a receipt, a souvenir or other memorabilia such as photographs in evidence that they actually had that experience.
b) Inseparability: services are characterised by inseparability, meaning that production and consumption take place simultaneously and in the same place. This is demonstrated by the flight of a passenger abroad an aeroplane or by a guest’s occupation of a hotel room. Because the consumers and producers of these products are in frequent contact, the nature of these interactions has a major important on customer satisfaction levels.
c) Variability: Tourism services have a high level of variability, meaning that each producer –consumer interaction is a unique experience that is influenced by a large number of often unpredictable human element factors. These include the mood and expectations of each participant at the particular time during which the service encounter takes place.
d) Perishability: Services cannot be produced and stored in advance for consumption in the future. Because production and consumption are simultaneous process. Empty air-car seats, for example, are a permanent loss for ever as that cannot be recouped in the next time.
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2.3 Tourism Marketing
Tourism is a very complex industry because of its multi-faceted activities which together produce the tourist product. It is also because of various sub-sectors such as, lodging, transporting, entertaining, etc. that are in themselves complete industries, if considered independently. Its complexity furthermore, lies in the fact that tourism promotion in its various forms has to be directed at large numbers of people in various lands of different socio-economic structures, having different needs, tastes, attitudes, expectations and behaviour patterns. It is only efficient marketing strategy that will help to understand people’s taste and preference for travel and, hence the need for tourism marketing.22
As tourism is a mere service, no serious difference is there from any other service belonging to the tertiary sector. Tourism marketing can follow the same principles of general and services marketing because they are customer oriented. Thus, the important decisions in the marketing concept are customer oriented where the tourist organisations think and plan in terms of the benefits sold rather than the product. When it aligns the concept of marketing in the tourism business, it is known as tourism marketing.
2.3.1 Defining Tourism Marketing
Tourism marketing is defined in a number of ways a few among them are given below as they seem to be important.
According to Krippendorf, marketing in tourism means “systematic and coordinated execution of business policy by tourist undertaking whether private or state owned at local, regional, national or international level to achieve the optimal satisfaction of the needs of identifiable consumer groups, and in doing so to achieve an appropriate return.” 23
Salah Wahab and others defined tourism marketing as “the management process through which the National Tourist Organisations and/or tourist enterprises identify their selected tourists, actual and potential, communicate with them to ascertain and influence their wishes, needs, motivations, likes and dislikes, on local, regional
48 national and international levels, and to formulate and adapt their tourist products accordingly in the view of achieving optimal tourist satisfaction thereby fulfilling their objectives.” 24
In the view of Burkart and Medlik “tourism marketing activities are systematic and co-ordinated efforts extended by National Tour Organisation and/or tourist enterprises or international, national and local levels to optimise the satisfaction of tourist groups and individuals in view of sustained tourism growth.” 25
Lumsdon suggests that “tourism marketing is the managerial process of anticipating and satisfying existing and potential visitor wants more effectively than competitive suppliers or destinations. The management of exchange is driven by profit, community again, or both; either way long-term success depends on a satisfactory interaction between consumer and supplier. It also means securing environmental and societal needs as well as core consumer satisfaction. They can no longer be regarded as mutually exclusive. 26
In the WTO seminar, held at Ottawa in 1975 , defined tourism marketing as a management philosophy, which in light of tourist demand makes it possible through research, forecasting and selection to place tourism products on the market most in line with the organisations purpose for the greatest benefit. 27
Bhatia, A.K . defines tourism marketing through his book International Tourism Management as “systematic and coordinated efforts exerted by the national tourist organisations and/ or the tourist enterprises at international, national and local levels to optimise the satisfaction of tourists, groups and individuals, in view of the sustained tourism growth.” 28
In view of the aforementioned definitions, tourism marketing emerges the following points:
• It consists of identifying potential and actual consumers (tourists) and to know their needs, wants, desires, preferences, and demands to satisfy them in a decent way. • Achieving the objectives through tourists’ optimum satisfaction.
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• An integrated effort to satisfy tourists by making available to them the best possible and desired services. • A strategy to transform the potential tourists to actual tourists. • It helps to generate demand and expand market. • Ensures the coordination of all stakeholders with each other in order to achieve maximum benefits and the optimum utilisation of the best resources available. • Makes possible efforts to harmony between the social interest and the interaction of tourist organisations. • It involves in promoting business and feeing the organisation necessary information for framing and revamping the marketing decisions.
2.3.2 Tourism Marketing Process
The tourism marketing process involves several steps that can describe briefly as follows.29
The first step in the tourism marketing process is to carry out a Corporate Environmental Analysis , which implies that a company should decide its vision, mission, goals and objectives. The goals are determined after conducting an objective study of the current economic and market environment, whereby, the company examines its strength and weaknesses in relation to the existing competition. It must also study the threats as well the opportunities of the business to be carried out.
The second step will be to identify the customers, who will buy the products, where they live, what they want, what are their needs, etc. These can be identified by conducting a Market Research, which implies that it is the systematic collection of information about the customers, competitor and product by the organisation to formulate important decisions about its policies and objectives. A tourist product cannot be used by everyone, and many people cannot afford it. Therefore, marketer must understand very well about his product, its customers and the competitor’s products through a market research.
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The third step is to look for the type of customers to be focussed. Are the customers in a particular age group? Are they professionals? Are they interested in adventure tourism or looking for cultural experience? And, who can be afforded the product? This is called Market Segmentation . It is the process of through which an organisation is able to identify the group/groups of customers to whom the product will appeal. There are a number of ways to segment the tourist market, on the basis of age, profession, interests, sex, etc. The organisation, therefore, will focus its promotional efforts on the segment identified.
The fourth step is the Development of Product . The organisation develops the product to suit each segment of the customers. The product must meet the needs and wants of the customer in the targeted segment.
Pricing is the fifth step. The organisation must price the product attractively to interest the customers. The price should be affordable to customers we seek.
Next step is Distribution. Where does the organisation sell the product, in which area and through what kind of sales network? The product should be easily accessible to enable potential customers to buy it.
The last but most important part of the marketing process is to make sure that potential customers know about the product. It is called Promotion , which includes every aspect –mass-media, advertising, public relations, press releases, direct mail, etc., to draw the attention of customers to the product.
In diagrammatic terms, the marketing process looks like the following (figure 2.1).
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Figure 2.1: Steps in Tourism Marketing Process
Marketing Process
Financial and Corporate Analysis Analysis of Current Economic Environment Planning Establishment of Goals
Market Research
Market Segmentation
Product Development
Pricing
Distribution (Place)
Promotion Source: Pran Nath Seta, (1997). Successful Tourism Management. Sterling, p.276
2.3.3 Objectives of Tourism Marketing
No organisation or human activity can be imagined without well defined objectives. Marketing, therefore, as a management policy, has to be guided by well formulated objectives. But setting up these objectives is not an easy task as they differ from one field to another. Likewise, marketing objectives will differ depending on the stage of tourist development of a country, its tourist products, its tourist organisations and management. 30
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According to Barker and Anshen the noted marketing experts, the end of all marketing activities is the satisfaction of human wants. From this statement it can be interpreted that the main objective of tourism marketing is the satisfaction of tourists. If an organisation succeeds in satisfying the tourist, the established objective of that organisation can be realised without much efforts and the expansion of market becomes natural. Following may be the multi-faceted objectives of tourism marketing.
a. To satisfy the customers or tourists, as it is the basic philosophy of tourism marketing and it is the heart of tourism industry. b. To make optimal utilisation of the available resources resulting operational efficiency. c. To maximise profit in the long run as it is the core strategy of the organisation. d. Balanced tourist growth and reinforcement of the economic impact of tourism by correlating the supply position with that of the demand position. e. To have competitive advantage and attaining market leadership. f. Security and balance in the social and economic development plan. g. As tourism inflow has a direct relationship with the image of destination, another important objective of tourism marketing is projection of fair tourist image.
2.3.4 Rules for Successful Tourism Marketing
Tourism is an important economic activity because it brings foreign exchange. It continues to be a fast growing sector and is typically included among the top three industries in India. In addition, tourism provides a “front-door” to non-tourism economic development efforts such as business recruitment. Roger Brooks, recognized expert in tourism marketing spoke about rules for success at the 2004 Wisconsin Governor’s Conference on Tourism in Green Bay. Below is presented a summary of his keynote address titled 15 Immutable Rules of Successful Tourism .31
53 a. Success Begins With a Good Plan: Creating a Tourism Development and Marketing Plan is the first rule for successful tourism. The plan should include several details like product development, upgrades and improvements, repositioning and/or branding, attractions and events, visitor amenities and services, marketing and public relations, public/private partnerships, recruitment, funding and budgets, and organizational responsibilities. The plan should integrate existing comprehensive plans and economic development and Main Street efforts. b. Importance of Front-line Sales: The front-line employees can be the most valuable sales team. This is because they establish the first contact with the customer. The front-line employees should be knowledgeable about the community and should promote other stores, attractions and amenities to visitors to keep them in the area longer. c. Critical Mass: In order to attract and keep visitors in the community, there must be several retail and dining establishments within walking distance. Shopping and dining in a pedestrian setting is one of the top activities for visitors. An average rule of thumb for rural communities is to have nine retail stores and four dining/treats establishments within two or three blocks. d. Turn Negatives Into Positives: Almost every community and attraction has its challenges. Think creatively on how to convert these negatives into positives. That can then attract people to the area using clever promotional tactics. e. Be Unique: In order to be successful, it must be worth the trip. A visitor must be able to differentiate the firm from the competition and it must strive to be creative and set itself apart from others. Being unique will make a visitor travel the extra distance. f. Telling Stories: Museums and interpretive centres should always tell stories, not just display artefacts. Stories can keep visitors in the area longer, which means additional spending. Visitors also remember stories, and captivating stories are told and passed on to others. More people pick destinations by word of mouth than any other method.
54 g. Four-Time Rule: People are willing to travel a distance if anybody offers something that appeal to them. There should be enough for visitors to see and do in the area. In general, it should be able to keep visitors busy four times longer than it took them to get there. h. Marketing vs. Product Development: Before market the community, make sure it is appealing to customers. If the product is not of great quality, then the marketing efforts are wasted. Product development should always be a top priority, and it never ends. Having a good mix of product development and marketing is also important. i. Selling the Experience: Always sell the experience associated with an activity and not the place. If it is using pictures in the marketing campaign, avoid using scenic images. Scenery lasts in the mind for only a few moments. Instead, use images of people laughing and having fun. Viewers are more likely to remember images that include people’s emotions. j. Branding: Even at the community level, branding is critical for success in tourism. Branding is much more than just a logo; it is what sets apart from the competition, it is the image and the value. Do not try to be “all things to all people.” k. Wow Photography: Nothing sells tourism like great photography. Photographs used for tourism purposes should have a “wow” appeal in the viewer and should make the viewer want to go to the place depicted. As mentioned earlier, it is trying to sell an experience and the photos should evoke emotion in the viewer. Photography should be the key element in brochures, public relation efforts, and especially on the web. l. Close the Sale: Most communities and attractions spend a significant amount of money on advertising. The primary “call to action” in advertising is to get the potential customer to call and get a brochure, or for them to visit the web site. If this is the case, the brochure and web site should be good enough to close the sale. Otherwise, the advertising effort is largely wasted. Pay attention to certain small details while advertising.
55 m. Public Relations: Even though it needs both, publicity is much more important than advertising. Implementing a professional public relations campaign can have several benefits: it will build brand, improve the image, increase credibility and will provide a greater return on investment than advertising alone. Public relation is how to build the brand and advertising is how to maintain the position. Studies show that for every Re.1 invested into a public relations campaign, you get Rs.3 in return. n. Effective Web Sites: The Internet is by far the number one resource for planning travel and vacations. If there is a tourism related web site, can the potential customers find it easily on the Web? How does the web site compare with the competition? Make the online experience interactive for the customer and remember to promote attractions, not just the place or the organization. o. Frequency in Advertising: Frequency is more important than variety in placing advertising. People viewing the advertisement should develop Top of Mind Awareness (TOMA).
2.4 Tourism Marketing Triangle
Tourism as being a service industry almost all the service marketing methods, techniques, models and approaches newly employed can be adopted for tourism marketing as well. Tourism marketing triangle is one of such newly added approach in tourism marketing, which says that tourism marketing can be carried out through three different but interrelated approaches namely the traditional external marketing, internal marketing and interactive marketing 32 .
Figure 2.2, illustrates the relationship of these three interrelated approaches in simple way. The tourism marketing triangle shows the three interlinked groups that work together to develop, promote, and deliver services. These key players – the company, the tourists, and the providers- are labelled on the points of the triangle. Between these three points there are three types of marketing that must be successfully carried out to succeed. For tourism and hospitality industry all these three types of marketing activities are essential for building and maintaining relationships.
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Figure 2.2: Tourism Marketing Triangle Company
Internal Marketing External Marketing (Enabling Promises) (Making Promises)
Interactive Marketing Service Providers (Keeping Promises) Customers Source : Zeithaml, V.A. and Bitner, M.J.(2000) Service Marketing: Integrating Customer Focus across the Firm.
2.4.1 External Marketing
External marketing is the traditional marketing activities through which a company makes promises to its customers regarding what they can expect and how it can be delivered etc. Beyond the traditional marketing activities, external marketing takes into consider other factors such as the tourisms cape and the process itself help to establish customer expectations.
2.4.2 Interactive Marketing
Interactive marketing means that perceived service quality depends heavily on the quality of the buyer-seller (organisation and consumer) interaction during the service encounter. Interactive marketing occurs, by keeping promises in the ‘moment of truth’ when the customer interacts with the organisation and the service is produced and consumed. From the customers’ point of view, the most vivid impression of service occurs in the service encounter or the moment of truth. It is in these encounters that customers receive a snapshot of the organisation’s service quality, and each encounter contributes to the customer’s overall satisfaction and willingness to do business with the organisation again. But in tourism marketing service quality depends on the both the service deliverer and the quality of service delivered.
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2.4.3 Internal Marketing
Internal Marketing means that the organisation must be effectively trained and motivated its customer contacts employees and all the supporting service people to work as team so as to provide customer satisfaction. Internal marketing takes place through the enabling of promises. Promises are easy to make, but unless providers are recruited, trained, provided with tools and appropriate internal system, and rewarded for good service, the promises may not be kept. Therefore, it is the job of marketers to get everyone in the organisation to practice marketing.
2.5 Tourism Marketing Planning
The marketing planning undoubtedly provides a sense of direction, organisational leadership and an agreed framework for the conduct of tourism business in the ever changing and competitive market environment.33 Although, in recent decades tourism has become an industry and has been on a continued growth trajectory, the growing uncertainties in the world of tourism industry such as unpredictable market behaviours, greater regionalisation, market shifts and changing consumer priorities, and economic slowdowns requires a greater need for tourism marketing planning. Tourism industry is experiencing pressures of consolidation, concentration and integration which necessitate the need for a greater scrutiny of market environments and to have a detailed marketing planning.
According to Cooper et al (1998) the most important activity of marketing management is planning that provides a common structure and focus for all of the organisations in marketing activities such as: 34
• Provides clear directions to the marketing operations based on a systematic, written approach to planning and action. • Co-ordinates the resources of the organisation. • Sets targets against which progress can be measured. • Minimises risk through analysis of the internal and external environment. • Examines the various ways of targeting different market segments.
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• Provides a record of the organisation’s marketing policies and plans • Thinks about the long-term business objectives so that the organisation plans to be in the best position to achieve its future aims.
In addition to the above said contributions, Drummod and Ensor (1999) state that marketing planning requires consistency, integration, communication, motivation and control. 35 Consistency is important because it provides a common base to work from; the overall decision-making process should be enhanced. Likewise, integration should engender co-ordination of the marketing mix elements of the plan and ideally serve as a catalyst for synergy among the individual components of the mix. The plan should also be communicated to both external and internal stakeholder groups in generating a sense of ownership among the stakeholders, and finally, some form of control is the criteria by which success is to be determined and defined. These points are also emphasised by Cooper et al, and who argue that the marketing plan requires control over the changes that have to be made.
2.5.1 Tourism Marketing Planning Process
The tourism marketing planning process can be subdivided into three key sections such as corporate strategic or situational analysis, development of the marketing strategic options, and the implementation, evaluation and control of strategic choices established. The first section of the marketing planning process involves the situational or corporate environmental analysis, which discusses the corporate vision, mission and goals; make a detailed analysis of the external and internal environment of the market through market audit; conduct the business situation analysis through the SWOT (strength, weakness, opportunities and threat) analysis and PEST (political, economical, social and technological) analysis to create the objectives; development of marketing mix strategies, its implementation, evaluation and control. Then the second section purely talks about the marketing strategies- what are the different approaches to formulate marketing strategies, what are the different marketing strategies suited for tourism organisations etc. The figure 2.3 will illustrate vividly the process of marketing planning.
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Figure 2.3: Marketing Planning Process
Situational Analysis
• Environmental • Consumer • Company Analysis Analysis (Extnl) Analysis • Market Analysis • Marketing Mix • Customer • Competitor Analysis Analysis (Intrnl) Analysis
• Opportunities • Strengths • Threats • Weaknesses • Trends
• Vision • Mission
Alternative Strategic • Values Options • Objectives • Planning Gap
Marketing Strategy Formulation
• Implement and Evaluate • Review Plans if Necessary
Source: Xavier, M.J, (1999). Strategic Marketing. Response Books, p. 318
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2.6 Tourism Marketing Strategy
2.6.1 Strategy: As a Concept
The word strategy is a term related to warfare. The appropriate application of ‘strategy’ is a plan to win a war. But in the business world, it refers to plans relating to marketing, financing, and manufacturing operations and their efforts to win the biggest possible share of the targeted market. The field of strategic planning is much wider. It deals with the adjustment of controllable factors like production, physical distribution, promotion and pricing within the environment of uncontrollable factors such as competition, economic situation, legal barriers, interference of different behaviors and scientific and technological differentiation.
The term strategy is derived from the Greek word “strategos” which means generalship i.e. the actual direction of military force, as distinct from the policy governing its deployment. 36 Therefore, the word strategy means the act of the general i.e. how to make a plan for most effective action. However, in business parlance there is no definite meaning assigned to strategy. It is often used to mean a number of things. The concept of strategy has been defined differently by many experts, important among them are given below.
Alfred D. Chandler (1962) defines strategy as “The determination of the basic long term goals and objectives of an enterprise and the adoption of the course of action and allocation of the resources necessary for carrying out their goal” 37
This definition by chandler refers to three main aspects:- • Determination of long term goals and objectives. • Adoption of course of actions to achieve these objectives. • Allocation of necessary recourses for the adoption of these courses.
In the words of Kenneth Andrews , strategy means “The pattern of objectives, purposes, goals, and the major policies and plans for achieving these goals, stated in such a way so as to define what business the company is in or is to be and kind of company it is or is to be” 38
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Andrews defined strategy in business context, which states the current and desired future position of the company and the objectives purposes, goals, major policies and plans required for taking the company from the present position to the position where its aim is.
Igor Anosaff (1965) , a contemporary of Andrews explained the concept of strategy as “the common thread between the organizational activities and product markets as above that defines the essential nature of business that organization was planned to be in future” 39 The definition according to Anosaff, laid emphasis again on current and future of business, with an addition that this definition has included diverse organizational activities including products and markets.
William F. Glueck (1972) gives a brief definition for strategy that “A unified compression is given and integrated plan designed to assure that the basic objectives of the enterprise are achieved” 40 This statement lays down emphasis on the following points: • Unified plan: this refers to all parts of organization joined together to achieve one aim. • Comprehensive Plan: this means every aspect of the enterprise is covered while laying out plan. • Integrated Plan: i.e. all parts of the plan are compatible with each other.
Arthur Sharplin (1965)
Sharplin defines strategy as “a plan or course of action which is of vital, pervasive or continuing importance to the organization as a whole”. 41
It is observed that there are as many definitions of strategy as there are experts. However, the approaches of different authors have changed from time to time. Thus there is no single definition, which can be compiled by combining the definitions given by different authors. However, there are some elements, which are important for studying the concept of strategy. In the light of the above definitions the concept of strategy can be analysed as: 42
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• It is a plan or course of action or set of decision rules for making a pattern or creating a common thread. • This pattern should be related to organizations activities whichever derived from policies, objectives, and goals. • Concerned with pursuing those activities which move an organization from its current position to a desired future state. • Concentrate with the recourses necessary for implementing a plan or following a course of action.
2.6.2 Marketing strategy
Marketing strategy is a process that can allow an organization to concentrate its limited resources for the greatest opportunities available to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centred on the key concept that customer satisfaction is the main goal of marketing. A marketing strategy can serve as the foundation of a marketing plan which contains a set of specific actions required to successfully implement a marketing strategy.
A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives which have measurable results. It is possible to write a tactical marketing plan without a sound and well-considered marketing strategy, but without a sound marketing strategy a marketing plan has no foundation. A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.
2.6.3 Tourism Marketing Strategy
The most important objective of any tourist enterprise is to achieve maximum return to stakeholders. This will depend on a properly conceived marketing plan and strategy. In tourism marketing planning process it has been vividly described. Through the market segmentation process appropriate targets are identified and
63 analysed. The marketing strategies attempt to penetrate and persuade the target markets through the marketing mix element namely promotion. Similarly the buying decisions of customers will be greatly influenced by certain elements of marketing mix which include product, price, place and promotion.
2.6.4 Tourism Marketing Mix
Marketing strategies consists of a mixture of ingredients that has been called the marketing mix. Marketing strategies for tourism products can be formulated by analysing the elements in the marketing mix, which includes product, price, place and promotion. But various researchers commented that this 4 Ps concept of marketing mix developed by McCarthy in 1978 is insufficient for tourism marketing. As a result in 1981 Boomi and Bitner adopted a 7 Ps concept for marketing tourism. They added three more variables namely physical evidence, people and process. 43 The particular combination of the tourism marketing mix used by any organisation needs to offer it a competitive edge or differential advantage in the target market segment. This means that the marketer is creating something unique that the potential customer will recognise and value, and something that is distinguishable from competition. The edge or advantage may be created mainly through one element of the mix, or through a combination of them. Each of the 7 Ps in tourism marketing mix are discussed below.
2.6.4.1 Product
In marketing or consumer centric-perspective, the product is an amalgam of benefits, utilities, and satisfaction. This is particularly sensitive in the tourism marketing context; where the consumer is buying into seem-less experience in which no boundaries are obvious to them between their accommodation, transportation and overall holiday experience. Hence, the formulation of a sound product strategy is, of course, a challenging task before the tourist organisations. The product strategy involves quite a range of things that have a bearing effect on the buying decisions of the tourist, which includes products range, product mix, quality of product, product level, brand name, new product design and development and launching of the new product.
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2.6.4.2 Price
As far as the tourism products are concerned, the pricing decision strategy becoming more critical due to the increasing complexity of tourist markets and the high degree of product intangibility often reduces the number of alternatives basis for comparison by customers. The pricing of tourism products also have to take into account the complexity created by seasonality of demand and the inherent perishability of the product. Therefore, when it comes to determining the pricing strategy to be adopted, a number of options exist. The key approaches to pricing in the tourism industry are: a. Cost-plus pricing b. Marginal pricing c. Demand based (differential) pricing d. Price skimming e. Penetration pricing f. Product line (port-folio) pricing g. Business to business (supplier) pricing
2.6.4.3 Place (Distribution)
In the tourism context the place or distribution element of marketing mix means the routes of exchange through which a tourist accesses, books, confirms, and pays for a product or package. The two most common form of intermediary in the tourism industry are the tour operator and the travel agent. The tour operators bring together the essential components of a holiday and make those holiday products available through various out lets of distribution like traditional retail travel agents. In determining the most suitable strategy with respect to distribution, certain factors need to be considered. These include:
a. The nature and particular characteristics of the market. b. The commitment of resources necessary to implement the strategy. c. The nature and intensity of competitor activity. d. The balance to be achieved between cost and control e. The overall portfolio of distribution channels used by the organisation with regard to number, type, cost and potential.
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In tourism marketing, the two main strategic choices exist. The former is to adopt an intensive, selective or exclusive distribution strategy regarding outlet types and numbers, while the latter is to adopt a push or pull strategy which is fundamental to all tourism related organisations. A push strategy focuses on distribution outlets, urging them to sell to the tourist, while a pull strategy is directed at generating tourism demand and then sucked through the appropriate distribution outlets.
2.6.4.4 Promotion
Among the elements of the marketing mix, it is the role played by promotion that has been instrumental to the growth of modern mass tourism. As with all elements of the marketing mix, however, integration with these elements is imperative for success. The same will be in the case of marketing communications, which represents the promotional elements of the marketing mix. Therefore, when it comes to selecting the most appropriate strategy or techniques to convey the desired massage and induce a response from target markets, a variety of choices are at the disposal of tourism marketers, which include
• Advertising • Personal selling • Public relations • Sales promotions • Direct marketing • Database marketing
2.6.4.5 People
The people element of marketing mix is significant because it contributes most to the variability of the tourism products from a service encounter context. This applies to interaction and relationships between tourists, employees of tourism organisations, and the host community at destination level. The interactions and relationships between these three key people group will impact significantly on the level of product satisfaction experienced by the visitor. So the marketing mix needs a through behavioural analysis with impetus on training, commitments, discretion and appearance of these three groups of people.
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2.6.4.5 Process
In addition to people, the process element is frequently instrumental in the final delivery of the service encounter. Other essential components of the value chain such as booking system, payment system, queue management and visitor-flow techniques and the area of interpretation are examples for the process component of marketing mix in tourism context. In most instances of the tourism marketing the process element of the marketing mix is involved. Instrumental to the effective delivery of the tourism product encounter, marketers required to make strategies to identify these incidents critical in engendering a positive experience outcome for tourists.
2.6.4.7 Physical Evidence
The final element of the extended marketing mix advocated by Boom and Binter is represented by physical evidence. In many aspects of tourism, the physical environment is a core component of the tourism product. Due to the intangible nature of tourism products, the physical evidence aspect of the marketing mix is more important to influence purchasing. The physical evidence is significant because of the under lying principle of simultaneous provision and consumption.
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2.7 Marketing Strategies of Tour Packages
For the effective marketing of tourism products, it is essential that different segments of products are managed in tune with the changing habits and desires of users. This may be helpful in offering and marketing a package holiday product or package tour. The marketing of package tour is the major contributing factor to the growth of tourism industry. Therefore, a good knowledge about Package Tours will be helpful to formulate most suited strategies for marketing the same.
2.7.1 Tour Packages: Conceptual Analysis
When any one thinks of a tourist destination mainly three things will come into his mind namely attractions of the destination, accessibility to the destination and the facilities or services available at the destination. Thus a tourist visit involves various elements such as travel, accommodation, transportation, attractions, facilities, catering etc. If these components are perceived and combined by a tour operator it is known as Tour Package. Therefore, a tour package is the total tourism product which is planned, organised, combined and sold as an inclusive tour at a set price to tourists by tour operators.
According to Betsy Fay (1990) “A tour package is a combination of travel elements prepared for an individual/ or a group of traveller by a tour operator”.
Holloway (1992) States that “A tour package is a total tourism products as it generally consists of transport from the generating area to the destination, accommodation at the destination and possibly some other recreational or business tourist services”.
Gregory (1985) points out that “a tour package is advertised journey including specific features, arranged and promoted with tour literature by a tour operator and paid for in full by the tourists before starting on the tour” 44 .
From the above definitions it can be understand that the concept of tour package consists the following
• It is an arranged and advertised Journey with special features.
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• It is the combination of the elements of tourism such as accommodation, attractions, accessibility and amenities. • It is prepared for an individual or a group of travellers by a tour operator. • A tour package sells at a set price to tourists by tour operators.
2.7.2 Evolution of the Concept Tour Package
Although, the origin of the modern concept of tour package is quite difficult to trace out, yet it would be pertinent to adduce that the creation of transportation facilities in various countries thousand years back and the use of water (sea) transport by British, Greece, Romans, Phoenicians, etc. had a profound impact on the concept of a tour package. Beyond this, the well planned trips by Romans, Phoenicians, and Europeans for pilgrimage, adventure, pleasure, and navigation during different eras, must have been the motivational forces at the rear of the development of ‘Grand Tour Concept’. This paved the way for the development of tour packages in different centuries in different forms.
The term package tour was in use in 1600s. The first inclusive travel was organised by Thomas Bennett in 1821. In 1850, he set up a business as Tour Operator and developed first individual tourist itinerary. But the concept of tour package was used for the first time in its distinguished sense by Thomas Cook in 1855. Mr. Cook was a man of vision who put together all ingredients of a tour package and sold it as an ‘Inclusive Tour’ to the tourists. Thus, the evolution of the concept of ‘Tour Package’ is mainly accredited to Thomas Cook for his imagination, innovation, ideas and care he took in planning, organising and marketing tour packages.
2.7.3 Types of Tour Packages
The tour packages can be broadly classified into the following categories
2.7.3.1 Independent Package Tours
This type of tours is prepared to the individuals or to a particular traveller’s specification. In such types, a traveller is free and independent to select any combination of the elements and any destination for his journey. The cost of the
69 package will depends on the type of tour, the selection of hotel, the departure date and optional activities.
2.7.3.2 Hosted Package Tours
This type of package utilises services of a representative, called a host, at each destination. The tour representative is available at specified times every day to provide travel advice and assistance. A hosted tour may involve several steps or a single destination and it provides travellers with the advent of a pre-arranged trip and the services of a personal advisor at destinations. 45
2.7.3.3 Escorted Package Tours
It is also known as conducted tour. Basically this type of tour package includes the services of an escort or manager. The clients travel together in manageable groups and may be accompanied by their escort on all or parts of the itinerary.
2.7.3.4 Inclusive Tours
The tour ingredients purchased, combined and sold as a package at an inclusive price to tourist by a tour operator is called as an inclusive tour. It is an advertised tour package which includes travel and other ground arrangements such as accommodation, transport facilities, sightseeing etc. at group rates. This makes the inclusive tour less expensive than an independent tour. It is a prepaid and well planned tour covering all components of a package tour.
2.7.3.5 Business Tours
Although, a business tour is significantly different from all other tour packages, the pleasure seeking element cannot be separated from the business tours. Because business men travel for various reasons and the destinations are not chosen by them. This type of packages include a wide range of activities such as venues for business meetings/ conferences, accommodation, transportation, secretarial services, conference equipments, local sightseeing and other facilities.
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2.7.4 Steps in Designing and Developing Tour Packages
Since the scope, pattern, structure and size of tour operation have been increased in manifold, at present tour operators are faced with intense pressure in competition and also to design and develop tour packages to meet the requirements of the consumer. Thus the process of planning and developing tour packages to satisfy tourists can be conceived at a series of stages, start with market research and ends with actual operation of a tour. The process of developing and planning of tour package is presented in figure 2.4 (next page).
2.7.4.1 Market and Destination Research
The first step in the process of the development of a tour package is to conduct a market and destination analysis, which includes the analysis and identification of the key elements associated with that particular market and destination where the company promoting a package tour. Generally, it finds difficulties in arranging all the things and elements for all people with different needs and wants, and likes and dislikes. Therefore, it is necessary to carry out a market research not only on the tours that seem to fit those people’s areas of interest and specialisation, but also on the potential markets relating to those areas.
2.7.4.2 Developing a Tour Itinerary
The second step in developing a tour package involves working out an effective Tour Itinerary, which is a summarised plan of programmes for a tour package designed to identify the point of origin, destinations to be visited, en route points, accommodation, transportation, sightseeing, and other services. In addition to these, it presents the sequence of various tour ingredients and provides essential information such as assembling point, departure point, date of departure and arrival, duration of tour, destinations and other optional activities.
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Figure 2 .4: Process of Developing a Tour Package
Tour Operator
Market and Destination Research
Developing Tour Itinerary
Negotiation with Vendors
Costing& Pricing
Appointment of
Administrative Staff
Marketing Process
Operation and Execution
Post Tour Management
Source: Kamra Krishnan, K. & Chand Mohinder (2002) Basics of tourism. Kanishka
2.7.4.3 Negotiations
Once the itinerary is finalised, the next step is to negotiate with prospective vendors. The tour planner works with many vendors depending upon the nature and size of the package. The major among them are airlines, lodging companies, transport operators, ground operators, and sightseeing vendors.
2.7.4.4 Costing of Tour Package
Costing of a package tour includes the determination of the monetary value of a tour package. Cost of package tour means the total expenses incurred to change the shape of a particular ingredient into a package tour. Since, a tour company does not
72 manufacture a tourism product itself rather it assembles or purchases individual components from the various vendors to form a tour package, the cost of the tour can be determined as per clients or markets requirements or organisations strategies.
2.7.4.5 Pricing of the Package
After determining the cost of a tour package, tour operator analyses exchange rates, estimates future selling price and finalises the price of a particular package. The tour price is not solely determined in terms of the cost but on the basis of expected rate of return, market share, competitors’ price etc. There are different approaches to fix the price of package tour such as total cost and marginal cost method, breakeven pricing, rate of return pricing, skimming, penetration, going rate, differential etc.
2.8 Marketing of Tour Package
The most important and central aspect of any marketing processes/activities or theories is to identify the different customer needs and satisfy his wants and needs. So it is the tour marketing which applies much more sophisticated strategies to know what the tourist want and how can satisfy his needs by means of the services rendered with planning, preparing, and experiencing his travel or packages.
Since the nature and types of tour packages offered by tour operators are different, the tour package marketing is significantly different from the marketing of other tourism products. In the tour industry the marketing strategies that are effective and profitable for mass tour operators, may be substantially different than the strategies adopted by tour vendors or specialists. Therefore, it has become imperative for a tour operator to analyse logically what has been beneficial or productive for him in comparison to the other tour companies having the same tour packages/ destinations. It seems sensible to develop and adopt a well structured and systematic marketing plan for marketing of tour packages.
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2.8.1 Marketing Plan for Tour Packages
The central aspect of a tour marketing plan is the organisational objectives. Since, a tour marketing plan provides a clear understanding of what the tour operator wants to achieve through marketing efforts, it is important as the tour company is concerned to have a clear understating about its products and markets before developing a marketing plan.
The tour marketing plan is normally a short term plan which guides the tour operator for a particular period of time, usually one to three years. It provides a clear direction of the tour marketing operations based upon a systematic approach to planning and action. It also coordinates the resources of the tour company to achieve the set targets. Recognising the importance of tour marketing, tour operator develops the required mechanism to build effective tour marketing strategies. 46 The figure 2.5 makes it clear that how the marketing planning process will function and ensure that marketing activities match the resources, time requirements and objectives of the tour company.
In the tour marketing planning process, perhaps the most complicated problem is connected with the formulation of marketing strategies. Because the working effect of an appropriate strategy may directly related to the nature and type of the tour, such as which strategy is most beneficent for inbound tours or outbound tours or incentive tours. This is based on the ability of the package to provide a substantial return on investment. After identifying the marketing strategies, tour operator develops annual media plan, advertising plan, sales plan, direct mail plan, telemarketing plan etc.
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Figure 2.5: Developing Tour Marketing Plan
Tour Operator
Corporate Objectives and Goals
Market Research
Tour Marketing Objectives • Sales Volume • Profit Contribution • Target Market
Projected Tour Marketing Budget
Strategies for Inbound, Outbound, & Domestic Tours • New Products • Existing Products • Diversification
Developing and Designing Plans
• Public Relations
• Media
• Advertising
• Annual Sales
• Evaluate Impacts • Review if Necessary
Measure and Control
Source: Kamra Krishnan, K. & Chand Mohinder (2002) Basics of tourism. Kanishka, New Delhi
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2.8.2 Tools and Techniques for Marketing Tour Packages
There exists a plenty of tools, strategies and techniques for marketing tour packages such as tour brochures, advertisements, direct mail, sales promotion, public relations, personal selling, tour literatures, exhibitions, travel marts, films and video clips, telemarketing, conferences and debates etc.
2.8.2.1 Tour Brochure
A tour brochure is the most vital marketing tool for tour packages, which contains comprehensive information to persuade and motivate holiday makers to buy tourist products/ services. Since tourism is an intangible product which cannot be presented by the prospective consumers prior to the purchase, the brochure becomes the important channel of informing a customer about the product and motivating him to buy the product.
A tour brochure consists of detailed information about the destinations including cruises, bus tour, charter vacations, etc with photographs. The cover page of a tour brochure shows the title, captions, theme, tour code, date, name of the company etc. and the inside flaps highlights the tour features, a brief itinerary, mode of transport, type of accommodation, payments, unique appeal of destinations, payment conditions, insurance, currency, documents required etc.
2.9 Steps in Determining a Marketing Strategy for Tour Packages
The following are the key steps in deciding a marketing strategy suited for tourist products.
1. Identify the market segment at which the strategy is aimed 2. Find out what the segment likes, and is like (define the tourist’ profile and align product profile with it) 3. Find out what influences the segment most (determine the buying-decision factors which impel that segment to buy, and their relative importance). 4. Recognize that there are generally two clients, not one, and cater for both. 5. Align the element of marketing mix with the client’s buying-decision factors.
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6. Decide a pricing policy, bearing in mind the factors which influence it. 47
2.9.1 Identification of the Market Segment to which the Strategy is aimed
The first and vital step in determining a suitable marketing strategy for a tourist product is identifying a market segment. The key elements or the variables that define the market segment are:
• The country and region of origin from where most tourists are expected • Expected tourist’s social status/ class, educational background, and lifestyle. • After-tax disposable income of the expected class of tourists. • Availability of average time for holidaying, and month or season planning to visit. • Number of expected tourist, their marital status and family size. • Tourist’s stage in life cycle. • Special interest motivators of the segment. • Likes, dislikes and other psychological characteristics. • Tourist-product preferences. 48
But, to a considerable extent it is within the seller’s power to decide which segment he wishes to attract and which segment he wants to demote.
2.9.2 Find out what the segment likes, and is like.
If the organisation, for whom the marketing strategies is to be determined, has been once identified its market segment, the next logical step it should follow, must involve the creation of the tourist products in accordance with the needs, requirements, and likes and dislikes of the identified market segment. After finding out the characteristics of client’s market segment, it must be aligned the clients profile with that of the product of the firm.
2.9.3 Find out what influence the segment most.
The next step in determining the marketing strategy is to find out the important influences of the market-segment on the buying decisions of the tourists. The
77 following are the most determinant buying-decision factors which impel that segment to buy, and their relative importance.
• Price in relation to expected satisfaction. • Quality of product in regard to tourist’s definition of quality. • Image of the product among the tourist. • Sales persuasion- effectiveness on the segment • Customer service- influence of customer services on the buying decisions of the segment. • Product availability – whether the customer is ready to accept an alternative product, if that particular is not available. • Factors other than the above mentioned also may influence on the buying decisions of the segment. 49
2.9.4 Recognize that there are generally two clients, not one, and catering for both
Next step in determining the marketing strategy is the recognition of at least two types of clients with the emphasis on the fact that the marketer must take care to treat and cater both the clients. The motivations and approaches of the clients in both groups may differ, and sometimes are opposed, but the classical nature of a good marketing strategy, despite of the differences and difficulties, is to cater both the group successfully. And when they are visualising about the marketing policies and segment, the organisation must think of the segments within both classes of client.
2.9.5 Align the element of marketing mix with the client’s buying-decision factors
The fifth step in the determination of a successful tourism marketing strategy is the alignment of the elements of marketing mix with the client’s buying decision factors. It means that in accordance with the relative importance of the factors attached with the client’s buying decision influences the corresponding elements of the marketing mix. Therefore, the relative importance of the elements of marketing mix must be studied in relation to the clients buying profile. As far as the clients
78 buying is concerned, this will help in identifying the irrelevant or the less important elements of marketing mix and to give less importance to such irrelevant elements. Hence, the elements of marketing mix must be accordance with the importance to the clients buying decisions.
2.9.6 Decide a pricing policy/strategy bearing in mind the factors which influence it
As the ultimate objective of a business is be to maximise total profit or contribution, pricing decisions play a vital role in generating profit. Therefore, the sixth and last step in the development of a marketing strategy is the determination of a suitable pricing policy, bearing in mind all those factors which influence it. One of such factors which have a greater influence on pricing decisions is volume sensitivity. Volume sensitivity denotes that profits are very sensitive to volume of sales, i.e. a decrease in sales volume may decrease the profit enormously or sometimes it may lead to loss stage. 50
The important pricing strategies which can be applied to tourism products are: optimum pricing policies, penetration pricing strategy, differential pricing policy, skimming price policy, dual pricing, cost leader pricing, and capital turnover pricing.
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2.10 Marketing Strategies for Tour Packages
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fulfill the market needs and to reach marketing objectives. A good marketing strategy should integrate an organization's marketing goals, policies, and tactics into a cohesive whole. Hence, every business organizations should be engaged in establishing marketing strategies suitable to their products and making alterations or new strategies in accordance with the changes in time, situation, environment and products etc. As the marketing situation once quite forever never repeat itself again as it was. Therefore, it is imperative to develop marketing strategies based on the environmental situations and the inputs gathered and in the light of the best available information. But there are certain classical marketing strategies which are worth exploring. Important among them are: 51
2.10.1 Go for Growth Sector
In this type of marketing strategy the efforts are made to pinpoint the growth sectors and concentrate on those products that have potential to grow more compared to other products. Answer to the questions, such as, who has the money, and who will have more of it in future? Should it sell to youth; or workers through trade unions and working-men’s clubs? help to identify the growth sector and the products to be concentrated for making profit through the satisfaction of tourists.
2.10.2 Specialize
Through this type of marketing strategies the organisation or agency gives special attention to a particular segment of the market or product to serve customers in a better way. For example, an organisation specialising in sports tourism can attract only those people who have interested in sports tourism and can take special care of them. Specialisation helps the agency to become an expert in a particular segment of the market and can satisfy customers by providing better services to them.
2.10.3 Develop a Vigorous New Product Policy
The strategy ‘Develop a Vigorous New Product Policy’ recommends developing a new tourist product that has the potential to attract tourist. There is nothing to
80 prevent even a small organisation with limited resources from developing its own tourist products and attractions. But the product should be fit within their background.
2.10.4 Concentrate on Building a Brand Name
This type of marketing strategy suggests taking efforts that can help in establishing of a good name for the product in the market. The brand name with a good image attracts the tourist to choose that particular product and its pull effect is very great. Cox and King has build a very good image and brand among across the world.
2.10.5 Tap an Undiscovered Goldmine
The various or alternative uses of a particular products can be popularised through this type of marketing strategy. In such marketing strategies the marketing manager takes efforts to promote the alternative uses of the same product.
2.10.6 Renovate a Decaying Product
Through this type of marketing strategies the organisation rejuvenate the existing products in market or re-invent the past product with certain modifications. Old palaces of emperors and other historical buildings can be renovated and can be used for good quality hotels.
2.10.7 Turn Clients from Ciphers into Human Beings
This type of marketing strategy concentrated on relationship marketing where a relationship can be developed with the client by keeping him in touch with the organisation. Sending a Christmas card, Birthday card or New Year card to the past clients, which helps keep the relationship for a long?
2.10.8 Go for Quality
The emphasis of this type of marketing strategy is given to the quality of the tourist product. Here the most important thing is the quality and no compromise at all, then considers all other elements.
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2.10.9 Offer the Widest Possible Product Range
Through this type of marketing strategy the agency or organisation focuses to offer a widest possible range of verity products to the concentrated market segment and diversifies as far as they can. This will help in attracting various interested or motivated group of tourists to the organisation. People go to Thomas Cook’s not only because of the venerable name, but they will find a tour for almost every tourist destination.
2.10.10 Push and Pull Strategy
In the push marketing strategy or trade-oriented approach most of the marketing efforts are will fall on the channels of distribution, who will be encouraged – morally and financially- by the seller to push the products through to the customers.
But in a pull or consumer oriented strategy or approach, less will be spent on the distribution organisation, and more on sending the message directly to the consumer, who will be encouraged to pull the product through the channels of distribution by demanding it from them. In the first case, there will be discounts for wholesalers, in the second case there will be big advertising campaigns 52 .
2.10.11 Generic Strategy Models
Michael Porter (1980) developed a thesis that a firm’s profitability and competitiveness were determined by the characteristics of its industry and the firm’s position within in the industry. By using his framework to analyse industry structure, he developed the following three generic strategies for firms 53 . a. Overall Cost Leadership, b. Differentiation, and c. Focus. And any other strategy followed by firms are classified as ‘Getting Stuck in the Middle’ a. Cost Leadership
Through this type of strategy a firm sets out to become the low-cost producer in the industry. The sources of cost advantage are varied and depend on the structure of
82 the industry and they may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials etc. b. Product Differentiation
In a differentiation strategy a firm seeks to be unique within the industry with some dimensions that are widely valued by buyers. The firm selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs and the firm is rewarded for uniqueness with a premium price. Here the firm creating a customer perception that its product is superior to those of competitors so that a premium price can be charged. c. Market Focus
This model strategy rests on the choice of a narrow competitive scope within an industry. The firm selects a segment or group of segments in the industry and tailors its strategy to serve them better to the exclusion of others. By optimising its strategy for the target segments, the firm seeks to achieve a competitive advantage in its target segment even though it does not possess a competitive advantage overall.
2.11 Conclusion
This chapter is exclusively dedicated to review the concepts and philosophies of marketing strategies of tour packages. It tries to analyses the concept of marketing in general and tourism marketing in particular with special focus to marketing strategies. The chapter sketches out the different approaches and steps to formulate marketing strategies for tour packages and describes various marketing strategies which can be applied to marketing package tours.
However, from the above conceptual analysis and discussions it is clear that tour packages may have different marketing strategies. The possible strategies among them are discussed briefly in the last few pages of this chapter.
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References
1. Varshney, R. L., & Gupta, S. L. (2005 ). Marketing management – text and cases: An Indian perspective (3 rd revi. ed.) New Delhi: Sulthan Chand, p.6. 2. Kotler, P. & Armstrong, G. (2005) . Principles of marketing . New Delhi: Prentice Hall of India, p.6. 3. Gupta, C.B., & Nair, R, N. (2008). Marketing management. New Delhi: Sulthan Chands, p. 1.5. 4. Gilligan, C & Wilson, R. M. S. (2003). Strategic marketing planning. Oxford: Butterworth- Heinemann, p.3 5. Wahab, S. et al. (1976) Tourism marketing: A destination oriented programme for the marketing of international tourism . London: Tourism International, p 21 6. Bhatia, A. K. (2008). International tourism management. New Delhi: Sterling, p. 155. 7. Theodore, L. (1962). Innovations in marketing . New York: McGrew Hill, p. 5. 8. Ibid., p. 5. 9. Weaver, D., & Laura, L. (2006). Tourism management (3 rd ed.) Wiley Australia, p 203. 10. Wahab, S. et al. (1976). Tourism marketing - A destination oriented programme for the marketing of international tourism. London: Tourism International Press, p. 20 11. Baker, M. J. (1985) Marketing strategy and management. Macmillion Education, p.15. 12. Xavier, M. J. (1999). Strategic marketing – A guide for developing sustainable competitive advantage . New Delhi: Response Books, p. 23 13. Coffiman. (1970) Marketing for a full house. Cornel University, p-5. 14. Middleton, V. T. C. (2001). Marketing in travel and tourism (3 rd ed.). Oxford: Butterworth-Heinemann, P.23. 15. Kotler, P. et al. (2004). Marketing for hospitality and tourism. Singapore: Pearson Education, p-22. 16. Houston, F. S. (1986). The marketing concept: What it is and what it is not. Journal of Marketing, 50, 2, 81-87. 17. Fyall, A., & Brain, G. (2006). Tourism marketing: A collaborative approach . New Delhi: Viva Books, p.19. 18. Kotler, P., et al (2005). Marketing management. New Delhi: Prentice Hall of India, p. 87. 19. McDonald, M., & Payne, A. (1996). Marketing planning for services. Oxford: Butterworth- Heinemann. 20. Rathwell, J. M. (1974). Marketing in the service sector. Cambridge: Winthrop publishers. 21. Kotler, P., et al. (2003) Marketing management. Prentice Hall of India, p.204. 22. Bhatia, A. K. (2008). International tourism management. New Delhi: Sterling, p. 156. 23. Krippendorf, J. (1971) Marketing et tourism. Herber Lang: Berne, p.46. Quoted from Wahab Salah et al, (1976) Tourism marketing - Tourism International Press, p. 24 24. Wahab, S., et al. (1976). Tourism marketing - Tourism International Press, p. 24 25. Burkart, A. J., & Medlik, S. (1988). Tourism –past present and future , p.195. 26. Fyall, A., & Garrod, B. (2006). Tourism marketing: A collaborative approach . Viva Books, p.43. 27. Fazili, A. I. (2006). A study of marketing strategy of potential tourism products in Jammu and Kashmir. Unpublished Doctorial Thesis, Aligarh Muslim University, Aligarh, p.63.
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28. Bhatia, A. K. (2008). International tourism management. New Delhi: Sterling, p. 156. 29. Seth Pran Nath. (1997). Successful tourism management . New Delhi: Sterling, 2, p.275. 30. Wahab, S., et al. (1976) Tourism marketing - Tourism International Press, p. 25. 31. Roger, B., & Maury, F. The 25 Immutable Rules of Successful Tourism. Presented at Wisconsin Governor’s Conference on Tourism , Green Bay. 32. Zeithaml, V. A., & Bitner, M. J. (2000). Service marketing: Integrating customer focus across the firm . New York: McGraw-Hill, p.16. 33. Fyall, A., & Brain, B. (2006). Tourism marketing: A collaborative approach . Viva Books, p.49. 34. Ibid., p.51 35. Ibid., p.51 36. Kasim, A. (1995). Business policy . New Delhi: Tata Mc Graw Hill, p.16 37. Chandler, A. D. (1962). Strategy structure – chapters in History of American Enterprise . Cambridge: Man MIT Press, p.13. 38. Andrews, K. R. (1973). The concept of corporate strategy . Homewood: Jones Irwin, p.28. 39. Ansoff, I. H. (1965). Corporate strategy . New York: McGraw Hill, 1965, p. 31 40. Glueck, W. F. (1976). Business policy – strategy formulation and management action. New York: Mc Graw Hill, p.36. 41. Sharpin, A. (1985). Strategic management . New York: Mc Graw Hill, p.6 42. Kasim, A. (1995). Business Policy. New Delhi: Tata Mc Graw Hill, p.16 43. Fyall, A., & Brain, G. (2006). Tourism marketing: A collaborative approach . Viva Books, p.106 44. Kamra, K. K. & Chand, M. (2002). Basics of tourism . New Delhi: Kanishka, p. 174 45. Nagi, J. (1997). Travel agency and tour operation. New Delhi: Kanishka, p.369 46. Kamra, K, K., & Chand, M. (2002). Basics of tourism . New Delhi: Kanishka, p. 191 47. Wahab, S. et al. (1976) Tourism marketing - Tourism International Press, p.157- 160 48. Ibid., p.157 49. Ibid., p.159 50. Ibid., p.160 51. Ibid., p.164 52. Ibid., p.164 53. Xavier, M. J. (1999). Marketiing in the new millennium. Vikas publishers, p. 105
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CHAPTER - 3 Performance and Resource Potential of Kerala Tourism Industry 3.1 Introduction
The present chapter consists of two sections. The first section discusses the performance of Kerala Tourism Industry in terms of tourist inflows and income generated from both domestic tourists and foreign exchange. The inflow of tourists has been analysed on the basis of facts and figures obtained and classified them into domestic tourists and foreign tourists since 1996 to 2008. The latter section, analysis the resource potential of Kerala Tourism Industry with special focus on the attraction dimension and presents them in a precise manner.
3.2 Kerala as a State
Kerala, the narrow lush green strip of land on the south-west coast of India lies snuggled between the Western Ghats in the east and the vast Arabian Sea on its west. It is one among the smallest states in the whole of the Indian union, with only 1.2 per cent of its total area 1. The state is diffused with a total area of 38,863 sq km, the length of the coastal line is 580 km, and it represents 3.76 per cent of the total population of the country 2. Kerala came into existance as a state on 1 st November, 1956, when the states were reorganised on linguistic basis on the recommendations of the state Re-organisation Commission. Before its formation Kerala was divided into three kingdoms namely Travancore, Kochi and Malabar. Travancore in the south and Kochi in the middle of the princely states under the supremacy of British rulers in the Country, while, Malabar was a district of Madras State, a province of British India till 1947. 3 On July 1, 1949, the two princely states of Travancore and Cochin were integrated into a new State of Travancore-Cochin. With the linguistic organisation of the states Malabar district added to Travancore-cochin to form the new state of Kerala. At present, Kerala has 14 districts with Thiruvananthapuram (Trivandrum) as the capital city and Malayalam and English are the principal languages. The climate is equable but a little damp along the coast. The mean temperature in the midland and lowland is about 32ºC. The high ranges enjoy a cool and branching climate throughout the year. Kerala gets rainfall both from the South-West and the North-East monsoons. The former is very heavy, between May and August.
Kerala is an asylum to India’s most civilised and advanced society. The state has India’s highest density of Science and Technology personnel, highest Physical Quality of Life Index, world-class health care system, highest life expectancy and the lowest infant mortality rate. Kerala, one can say without any hesitation, is India’s cleanest and the most peaceful state with hundred per cent literate people 4.
3.3 Kerala: Myth, Legend and Chronicle
In ancient times, Kerala comprised all that stretch of the west coast of India that lay between the Cape Comorine (Kanyakumari) in the south to Chandragiri River in the north. In more precisely, the tract bounded by the Western Ghats in the east, the Arabian Sea in the west, the Cape Comorine in the south and Gokarnam (South Karnataka) in the north constituted the ancient Kerala. The Pali and Sanskrit literatures refer to this part of India by the name Kerala. Katyayana and Patanjli, the two renowned grammarians were the first to use this nomenclature. Some of the Puranas (Vayu, Markandey and Brahmanda) refer this land by this name and the Mahabharata, the Ramayana and the Harivamsha also contains reference to this land 5.
Kerala means the land of Kera (Coconut Palm) 6. Some scholars are of the opinion that the nomenclature Kerala has been derived from a Tamil word meaning land of coconuts and mire (precocious silt of the backwaters) which exhibit very similarity in its hues. The word Keram meaning coconut tree may also be the origin of the name of this coconut and palm studded region 7. Another but the most plausible explanation in this context has been given by the Germen Scholar, Gundert, author of a Malayalam-English Dictionery, who suggests that the word is merely a derivative of ‘Cheralam’, meaning the realm of the Charas 8 (the kings of
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Cheralam). ‘Cher’ can also mean ‘added’. The tract that has been added to the mainland by the recession of the sea may also be termed as such. 9
The old-age traditional legendry about Kerala’s origin gives an account in one of the Sanskrit texts that Parasurama (Ram with Axe: parasu meaning Axe 10 ) the sixth incarnation of Lord Vishnu reclaimed the land laying between the Western Ghats and the Arabian Sea from the Ocean by his Axe and gifted to the Brahmins, who came from the north, as their new home land 11 ,12 . According to this legend Parasurama, the turbulent God like Thor of Nordic mythology, flung his battle-axe northwards across the waters from Gokarnam to Kanyakumari, the southernmost tip of Indian peninsula. The water receded and then emerged the land of Kerala from the sea into the sun and air.
But geologists have a different opinion that the elevation of Kerala from the sea was the result of some seismic activities, either suddenly or gradually. Another notion prevailing in scientific society is that the rivers of Kerala emptying into the Arabian Sea by bringing down large quantities of silt from the hills. The ocean currents transport quantities of sand towards the shore. Thus the coastal portions are accumulated with silt over thousands of years and elevated the land 13 .
3.4 Kerala as a Tourist Destination
Kerala, the most idyllic and romantic state, is strategically located on the south- west coast of India with the sublime heights of Sahyadri mountains on one side and the awe inspiring ocean on the other. This narrow strip of a land enjoys unique geographic features which have made it one of most attractive and popular tourist destinations in the world. Extensive beaches, Silken realms of emerald backwaters, long charming shorelines fringed with palm groves, mist-clad hill stations, lush tropical forests, exotic wildlife, cascading waterfalls, majestic monuments, spectacular art forms, colourful festivals and unique culture and traditions give the state a distinctive charm and fascination. Kerala, the land of myriad pleasures and exhilarations, is better known world over as ‘ God’s Own Country’. The National Geographical Traveller called this landscape as one of ‘ Ten Paradises of the World’ .14
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Since the terrestrial feature of the state is that slanting from the Western Ghats in the East to the Arabian Sea on the West, the land of Kerala is divided into three regions such as lowland, midland and highland. The forested highlands are the habitation of wildlife and they are abounded in plantations of tea, coffee, rubber and spices etc. The midlands are fertile and rich with coconut, arecanut, cashew, tapioca, banana, rice, ginger, turmeric, pepper, sugarcane and vegetables etc. But the lowlands are networked by backwaters and deltas of rivers and lakes.
The whole land of Kerala may be designated as a river basin. In Kerala, there are 44 major rivers from Manjeswaram in the North and Neyyar in the South. Of these, 41 rivers are flowing towards west and merge in the Arabian Sea but the rivers Kabani , Pampar and Bhavani are flowing towards east and reach the Cauvery River in Tamil Nadu. The majority of the rivers in Kerala are tiny but tidy. Periyar is the longest one with a length of 224 km, the name Periyar itself means ‘big river’ 15 . The river Bharathapuzha , also known as Nila , is the second longest with 209 km length but first in regard to its width. Almost all rivers in the state are sailable for country boats up to the midland regions that provide a cheap and common means of transportation.
Notwithstanding the continuous conurbation and Kerala’s high density of population, the virginal beauty is preserved in many places in the hills, the plains and on the coast. It is said that the God who made Kerala had green fingers. Kerala represents a melting pot of different cultural traditions. Here one witnesses a synthesis of southern and northern, Dravidian and Aryan, cultures. All together, Kerala is the ideal destination for all segments of tourists.
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3.5 Kerala Tourism Industry
Kerala is the most acclaimed tourist destination in India with its super brand 'God's Own Country' and is continuing as one of the prime tourist destinations of South Asia 16 . Tourism industry in Kerala not only facilitates infrastructure development but also help in balanced and sustainable regional growth by generating income and creating employment opportunities in the state. Realising the importance of tourism in stimulating the economic development of the state, the government of Kerala declared tourism as an industry in 1986. Today, tourism is Kerala’s booming industry and one of the fastest growing, high income and employment-generating sector. The measures which Kerala has been successfully adopted to take state’s tourism to world class level are Super Brand Positioning, Thinking out of the Box, Product Differentiation, Model Public/Private Partnership, Tremendous political support and Public Acceptance 17 . The global economic slowdown is expected to impact the tourism sector globally and regionally. The challenge of Kerala's tourist sector is to see how Kerala tourism could cope up with the crisis and how to structure its activities to a competitive advantage.
3.6 Performance of Kerala Tourism Industry
Kerala is by far the fastest growing tourist area in India and is recognised as a pioneer and trendsetter in the country. The surge of publicity which Kerala has received made it now the number one tourist destination in India. The raw statistics says that the foreign and domestic tourist arrivals in the state registered remarkable upswings in 2008. Foreign exchange earnings for the year 2007 is Rs.2641crores, which is recorded a growth of 32.82% over the previous year and the total revenue from tourism in 2007 is Rs.11,433crore which represent 7.70% of the state’s total GDP. Alongside of these statistics, tourism accounts for about 10 lakhs in total employment generated in Kerala in 2007, which include skilled, semi-skilled and unskilled labourers. The tourism industry invests approximately Rs. 1000 crores per year in Kerala. 18
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Highlights of Recent Tourist Statistics of Kerala Tourism
• Foreign tourist arrival to Kerala during the year 2008 is 598,929. It shows an increase of 16.11%over the previous year. (Table 3.1) • Domestic tourist arrival to Kerala during the year 2008 is 7,591,250. It shows an increase of 14.28% over the previous year. (Table 3.1) • Considering the district-wise Foreign Tourist arrivals, Waynad District shows the highest variation of 37.75% over 2007. (Table 3.2) • Considering the district-wise Domestic Tourist arrivals, Alappuzha District shows the highest variation of 37.47% over 2007. (table 3.2) • Foreign exchange earning for the year 2007 is Rs. 2640.94 Crores, which recorded a growth of 32.82% over the previous year. (Table 3.6) • Total Revenue (including direct and indirect) from Tourism during 2007 is Rs. 11433 Crores, showing an increase of 25.28% over last year’s figures. (Table 3.6)
Table 3.1: Month-wise arrivals of tourist during the year 2008
Sl. No Month Foreign Domestic Total 1 January 85,028 645,492 730,520 2 February 78,155 586,317 664,472 3 March 71,026 580,681 651,707 4 April 39,538 643,808 683,346 5 May 26,348 719,566 745,914 6 June 20,578 566,541 587,119 7 July 31,610 574,544 606,154 8 August 45,711 600,121 645,832 9 September 28,292 572,977 601,269 10 October 39,748 655,670 695,418 11 November 59,923 695,118 755,041 12 December 72,972 750,415 823,387
TOTAL 598,929 7,591,250 8,190,179 Source: Tourist Statistics Highlights for 2008, Given in Kerala Tourism Statistics 2007
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Table 3.2: District-wise arrival of tourists during the year 2008
Sl. No District Foreign Domestic Total 1 Thiruvananthapuram 234,797 1,102,115 1,336,912 2 Kollam 8,728 180,943 189,671 3 Pathanamthitta 349 59,832 60,181 4 Alapuzha 49,866 234,700 284,566 5 Kottayam 27,230 230,831 258,061 6 Idukki 51,025 531,970 582,995 7 Ernakulam 193,013 1,509,686 1,702,699 8 Thrissur 3,398 1,671,174 1,674,572 9 Palakkad 785 324,399 325,184 10 Malappuram 10,166 323,448 333,614 11 Kozhikode 9,966 595,985 605,951 12 Wayanad 5,638 295,465 301,103 13 Kannur 3,143 395,121 398,264 14 Kasaragode 825 135,581 136,406
TOTAL 598,929 7,591,250 8,190,179 Source: Tourism Statistics Highlights for 2008, Given in Kerala Tourism Statistics 2007
3.6.1 Foreign Tourists Arrivals (2001-2008)
Kerala achieves highest growth rate in foreign tourist arrivals. The number of foreign tourist arrived in Kerala in the year 2008 is 598,929 against 515,808 in 2007. It shows an increase of 16.11 per cent over the previous year. The average annual growth rate of foreign tourist arrival since 1991 is about 25 per cent. It is observed that there is a moderately consistent growth in foreign tourist arrivals to Kerala since 2006. During the year 2007 Kerala has contributed 10.15% of the total foreign tourist arrivals to India. The table 3.3 given below indicates the arrival of foreign tourists to Kerala during the last eight years and percentage of variation over the previous year. The average annual growth rate is 14.41 during the period 2001-2008. Table 3.3 shows the growth of foreign tourists from 2001 to 2008
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Table 3.3: Foreign Tourists Arrivals from 2001 to 2008 % Variation Over Year of Arrival Number of Tourists Previous Year 2001 208830 - 0.53 2002 232564 11.37 2003 294621 26.68 2004 345546 17.28 2005 346499 00.28 2006 428534 23.70 2007 515808 20.37 2008* 598929 16.11
Source: Kerala Tourism Statistics2007 *Tourism Statistics 2008 highlights
Figure 3.1: Foreign Tourist Arrivals from 2001 to 2008
700000
600000
500000 598929
400000 515808 428534 300000 346499 345546 Number of Tourists of Number
200000 294621 232564
100000 208830
0 2001 2002 2003 2004 2005 2006 2007 2008 No of Tourist 208830 232564 294621 345546 346499 428534 515808 598929 Year
Source: Kerala Tourism Statistics 2007& Tourism Statistics 2008 highlights
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Figure 3.2 gives a comparison of growth of foreign tourist arrivals in Kerala and India from 2003 to 2007.
Figure 3.2: Foreign Tourist Arrivals
6000000 India
5000000 Kerala 5081504 4000000 4429915
3000000 3915324 3457477 No. of Tourists of No.
2000000 2726214
1000000 515808 428534 345546 346499 294621
0 2003 2004 2005 2006 2007
Years
Source: Kerala Economic Review 2008
3.6.2 Domestic Tourist Arrivals
The number of domestic tourists to Kerala in the year 2008 is 7,591,250 against 6,642,941 in 2007. It shows an increase of 14.28 per cent over the previous year. Table 3.4 shows the domestic tourist arrivals to Kerala from 2001 to 2008.
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Table 3.4: Domestic Tourists Arrivals from 2001 to 2008 % Variation Over Year of Arrival Number of Tourists Previous Year 2001 5239692 04.52 2002 5568256 06.27 2003 5871228 05.44 2004 5972182 01.72 2005 5946423 - 0.43 2006 6271724 05.47 2007 6642941 05.92 2008* 7591250 14.28 Source: Kerala Tourism Statistics 2007, *Tourism Statistics 2008 highlights
Figure 3.3 shows the growth of domestic tourist arrival in Kerala from 2001 to 2008.
Figure 3.3: Domestic Tourist Arrivals from 2001 to 2008
8000000
7000000
6000000 7591250
5000000 6642941 6271724 5972182 5946423 4000000 5871228 5568256 5239692
Number of Tourists of Number 3000000
2000000
1000000
0 2001 2002 2003 2004 2005 2006 2007 2008 Year of Arrival
Source: Kerala Tourism Statistics 2007& Tourism Statistics 2008 highlights
Figure 3.4 and 3.5 give a clear growth picture and comparison of foreign and domestic tourist arrivals in Kerala from 2001 to 2008.
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Figure 3.4: Foreign and Domestic Tourists Arrival from 2001 to 2008
8000000 Foreign Domestic 7000000
6000000 7591250 6642941
5000000 6271724 5972182 5946423 5871228
4000000 5568256 5239692
Number of Tourits of Number 3000000
2000000
1000000 598929 515808 428534 345546 346499 294621 208830 232564 0 2001 2002 2003 2004 2005 2006 2007 2008 Year of Arrival
Source : Kerala Tourism Statistics 2007 and Kerala Economic Review 2008
Figure 3.5: Foreign and Domestic Tourist Arrivals from 2001 to 2008
8000000
7000000
6000000
5000000 Foreign
4000000 Domestic 3000000
2000000 Number of Tourists of Number 1000000
0 2001 2002 2003 2004 2005 2006 2007 2008
Year of Arrival
Source: Kerala Tourism Statistics 2007 and Kerala Economic Review 2008
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3.6.3 Tourist Arrival in Kerala: 1996 to 2008
Tourist arrivals to Kerala in the last 13 years are given in Table 3.5. During 1996 the percentage increase in foreign tourist arrivals recorded 23.7 per cent over the previous year. After that, up to 2001 the percentage of increase was nominal. But from 2006 onwards the percentage of increase in foreign tourist arrivals is above 20 per cent. Similarly, the domestic tourist arrivals also show a maximum increase in the years 1996 and 1997 between 1996 and 2007. But in 2008 it shows an increase of 14.28 per cent over the previous year. Total tourist arrivals show a maximum increase in 2008 since 1996. It shows an increasing trend in both domestic and foreign tourists arrivales in the state with an average groth rate of 5.72% and 12.04% respectively since 1996.
Table 3.5: Total Tourists Arrival to Kerala from 1996 to 2008 No. of No. of Total % of % of % of Year Foreign Domestic No. of Increase Increase Increase Tourists Tourists Tourists 1996 176855 23.70 4403002 12.45 4579857 12.84 1997 182427 03.15 4953401 12.50 5135828 12.14 1998 189941 04.12 4481714 -9.52 4671655 -9.04 1999 202173 06.44 4888287 09.07 5090560 08.97 2000 209933 03.84 5013221 02.56 5223154 02.60 2001 208830 -0.53 5239692 04.52 5448522 04.31 2002 232564 11.37 5568256 06.27 5600820 06.47 2003 294621 26.68 5871228 05.44 6165849 06.29 2004 345546 17.28 5972182 01.72 6317728 02.46 2005 346499 00.28 5946423 -0.43 6292922 -0.39 2006 428534 23.70 6271724 05.47 6700258 06.47 2007 515808 20.37 6642941 05.92 7158749 06.84 2008* 598929 16.11 7591250 14.28 8190179 14.41 Source: Kerala Tourism Statistics 2007 *Tourism statistics 2008 highlights
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Figure 3.6: Tourist Arrivals from 1996 to 2008
9000000
Foreign 8000000
Domesti 7000000 c
6000000 7591250
5000000 6642941 6271724 5972182 5946423 5871228
4000000 5568256 5239692
5013221 8190179 4953401 4888287 4481714 7158749 3000000 4403002 6700258 6317728
6292922 6165849 Number of Tourits of Number 5600820 5448522 5223154 5135828 2000000 5090560 4671655 4579857
1000000 598929 515808 428534
346499 345546 294621 232564 209933 208830 202173 189941 182427 176855 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Kerala Tourism Statistics 2007 Year of Arrival
Figure 3.7: Tourists Arrival Growth from 1996 to 2008
9000000 Foreign 8000000 Domesti 7000000 c
6000000
5000000
4000000
3000000
2000000
1000000
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Kerala Tourism Statistics 2007
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3.6.4 Earnings from Tourism in Kerala
The tourism sector happens to be one of the largest earners of foreign exchange in the World, and has acquired tremendous significance in recent years. The sector is growing at a fast pace in the country. The tourism industry is a major contributor to the State’s economy. In 2007, Kerala has earned Rs. 2640.94 crores as foreign exchange earnings from tourism against Rs.1988.40 crores in the year 2006, which recorded a growth of 32.82 per cent over the previous year. The total revenue generated from tourism comes to Rs.11433 crore, showing an increase of 25.28 per cent over the last year. From table 3.6 and the figure 3.8 shown below, it is clear that earnings from Tourism show an increasing trend over the years from 2001 to 2007 with an average growth rate of 26.89% per year.
Table 3.6: Earnings from Tourism (From 2001 to 2007) Total Foreign Earnings Revenue Exchange from % of Generated % of Year Earnings Domestic Increase from Tourism Increase (Rs. In Tourists (Direct & Crores) (Rs. In Crores) Indirect) (Rs. In Crores) 2001 535.00 1.85 2561.16 4500.00 9.58
2002 705.67 31.90 3011.31 4931.00 20.42
2003 983.37 39.35 3492.68 5938.00 12.83
2004 1266.77 28.82 3881.92 6829.00 15.01
2005 1552.31 22.54 4281.42 7738.00 13.31
2006 1988.40 28.09 4891.94 9126.00 17.94
2007 2640.94 32.82 5978.65 11433.00 25.28
Source: Kerala Tourism Statistics 2007
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Figure 3.8: Earnings from Tourism from 2001 to 2007
14000 Foreign Exchange 12000
10000 Earnings 11433 From 8000 Domestic
9126 Tourists Total 6000 7738 Revenue 6829
4000 5938 4931 2640.94 4500 Amount in Crores in Amount 1988.4
2000 1552.31 1266.77 983.37 705.67 535 2561.16 3011.31 3492.68 3881.92 4281.42 4891.94 5978.65 0 2001 2002 2003 2004 2005 2006 2007 Years Source: Kerala Tourism Statistics 2007
Table 3.7 and figure 3.9 shows Foreign exchange earnings from tourism in Kerala from 1996 to 2007.
Table 3.7: Foreign Exchange Earnings from 1996 to 2007 Earnings % Variation over Previous Year (Rs. In Crores) Year 1996 196.38 23.70 1997 273.20 39.12 1998 302.08 10.57 1999 416.07 37.74 2000 525.30 26.25 2001 535.00 01.85 2002 705.67 31.90 2003 983.37 39.35 2004 1266.77 28.82 2005 1552.31 22.54 2006 1988.40 28.09 2007 2640.94 32.82 Source: Kerala Tourism Statistics 2007
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Figure 3.9 : Foreign Exchange Earnings from 1996 to 2007
3000 2640.94
2500 1988.4 2000 1552.31 1500 1266.77 983.37 1000 705.67 535 525.3 Amount in Crores in Amount 416.07
500 302.08 273.2 196.38
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year
Source: Kerala Tourism Statistics 2007
3.6.5 Awards and Recognitions
Kerala has received several awards and citations for its tourism related activities in recent years. Following are some of such accolades. 19 Best Tourism State Award from the Government of India in 2006 -07. This was followed by two related awards; Best Tourism Village – Aranmula and Best Tourism Website – www.Keralatourism.org. SMART TRAVEL -ASIA Selected Kerala as its Number 3Best Tourism Destination. Kerala is one of the three top finalists in WTTC’s ‘Tourism for Tomorrow’ International Destination competition. Kerala’s tourism promotional film was acknowledged in Berlin with the Golden City Gate Award (ITB Berlin) as the ‘Best Tourism Film’. Kerala was awarded the PATA Grand Award for ‘Zero Waste’ in the ‘Environment’ category. PATA also conferred Gold Awards for ‘Kumbalangi Tourism Village’ and the book Ayurveda -Mantra of Niramaya.
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UNESCO awarded Kerala its Asia Pacific Heritage Award for heritage conservation in 2006.
3.6.6 Chief Promoters of Tourism in the State
Department of Tourism, Kerala Government
The central and state government and the department of tourism have been taken tremendous amount of planning, coordination and resources at every level to promote tourism in Kerala. The central government has taken the lead in this endeavour by creating tourism related legislation, committing technical expertise, manpower and financial resources. The government and the state department of tourism are actively engaged in the promotion of tourism in the Kerala developing new resources and upgrading existing tourist activities. The development of tourist related products, development of wayside facilities, and the conservation of nature, history, heritage, and culture are the result of the part played by the state government and tourism department. Cultural programmes, rural tourism, eco- tours, farm related tourism and adventure tourism are all receiving promotional boots from the State and Central Government.
Kerala Tourism Development Corporation (KTDC)
The KTDC is involved in running hotels and wayside amenity centres throughout Kerala. It conducts package and conducted tours all over the State and maintains a high tech reservation system.
District Tourism Promotion Councils (DTPC’s)
The DTPCs have undertaken the responsibility of creating and marketing local tourism products and opportunities. They are constantly improving the quality of these tourism products and services through surveys and other collected information. The DTPCs also monitor and supervise the levels of sanitation in tourist areas
Tourist Resort (Kerala) Ltd (TRKL)
The TRKL researches, develops and assists in the implementation of joint venture projects within the State of Kerala. It also oversees the local Land Bank scheme.
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Kerala Institute of Tourism & Travel Studies (KITTS) and Food and Craft Institutes (FCIs)
These institutes are actively involved in the recruitment, training and placing of quality staff in the tourism sites throughout Kerala. All aspects of Human Resource Development for the tourism and hospitality sectors are taken care of by KITTS and FCIs by establishing and monitoring the quality regulations of the Tourism and Travel Training Institutes.
Bekal Resort Development Corporation (BRDC)
The BRDC was established specially to benefit tourism and tourist attractions in Bakel and its catchment areas. It’s main focus is to provide marketing resources and to be actively involved in local, regional and state-wide marketing promotions.
Directorate of Eco-Tourism
One of the most progressive groups active in Kerala today is the Directorate of Eco- Tourism. Charged with developing and creating new Eco-Tourism destinations throughout Kerala, it is also active in the development and maintenance of wild life sanctuaries as tourist attractions.
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3.7 Resources Potential of Kerala Tourism Industry
Natural beauty, clean air and primordial greenery amidst the vast expanse of water and sky typify Kerala from the other states of India. The enigmatic strip of land is abounded with endless miles of tranquil backwater that adds to its marine beauty. The slopes of the Western Ghats are teemed with rare flora and fauna and the fragrance of its coffee blossoms always waft in the ambience. The uncustomary art forms, temple festivals, long line of caparisoned elephants and the breathing fireworks are something which can be seen in Kerala alone. These unique resources and unequalled geographical features have been made Kerala one of the sought- after destinations in Asia. However, to have a clear and first-hand account of the tourism resources in Kerala the following segments of tourism resources need attention.
3.7.1 Beach Tourism
Kerala has a 600 km long coastline, stretching across 11 out of its fourteen districts, dotted with some of the finest, internationally renowned and most charming beaches of the world, coconut groves, natural harbours, lagoons and sheltered coves. The beaches and shorelines of Kerala, washed by the pleasant tropical sun, are peaceful and pristine as ever to attract both domestic and international tourists.
Beaches of Kerala are at their best in Kovalam. Situated on the Malabar Coast, Kovalam Beach is full of swaying coconut trees and has gained fame with the sea surfers all over the world. Kerala is known throughout the world as one of the world's best beach destinations. The beaches of Kerala are beautiful stretches of clean sand, fringed by swaying palm trees on one side and rippling waves on the other. Tourists get to relax on the golden sands, stretch out in the shade of the rows of palm trees along the beaches, or undergoing an ayurvedic massage.
Some of more popular beaches in Kerala are those of Kovalam, Sankhumugham, Varkala, Thirumullavaram, Alappuzha, Cherai, Vakkad, Padinjarekkara, Vallikunnu, Kozhikode, Beypore, Kappad, Payyoli, Payyambalam Muzuppilangad, Meenkunnu, Bekal, Kappil etc.
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3.7.2 Backwaters
The network of waterways, inlets, estuaries, lagoons, lakes, and natural canals on the coastal regions of Kerala, the backwaters in the state stretches about 900 km 20 . A trip across the interlinked water bodies in traditional houseboats is a fabulous experience to tourists and is extremely popular among the foreign travellers. The boat gives a firsthand experience of the village life style in the state and its rustic activities like coir-making and prawn farming etc. Such travellers would not miss the breathtaking view of the water, land, birds and human habitation on the waterside, coexisting peacefully.
Kerala showcases a great deal of its picturesque backwaters in Alleppey. The houseboat rides along these backwaters can prove exhilarating to the tourists as they take them through the water bounded regions of Kottayam, Alapuzha, Kollam, Kumarakom and Kuttanad. The major backwater resources in the state are Thiruvallam, Kappil, Kasaragode, Kollam, Alappuzha, Kuttanadu, Thiruvananthapuram, Kumarakom, Kochi, Kottayam, Kozhikode, Akkulam, Veli, Neendakara, Vembanad, Valiyaparamba, Kottapuram etc.
3.7.3 Wildlife Tourism
Kerala, the naturally green state in India, with a plethora of greens with thick undergrowths and verdant forests, a temperate climate and so many natural sources of water, provide the perfect habitat for the growth of wildlife. The lush green forests abounded with elephants, tigers, wild dogs, sambars, gaurs, leopards, as well as many exotic species of reptiles, land and water birds offer a wonderful sight to the tourists.
Naturally, as the wildlife sanctuaries in Kerala have been developed to look after and preserve the wide variety of birds and animals in its wilderness, they became one of the major tourist attractions in state where people from all over the world come to have a glimpse of some rare species of animal or bird and some stunningly beautiful nature spots.
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There are treks that can be taken along with nature trails and nature walks along the green pastures of the sanctuaries. The visitors can also go on wildlife safaris, on jeeps or elephants, and watch the wild animals in their natural habitats in the interior of the wildlife sanctuaries in Kerala. There are a number of wildlife sanctuaries and bird sanctuaries in Kerala, which constitute a repertoire of natural wealth for the state. The vital among them are Silent Valley, Wayanad, Periyar, Kumarakom, Idukki, Shendurney, Thattekkad, Peppara, Aralam, Parambikulam Muthanga, Kadalundi, Peech-Vazhani, Konni Elephant Cage and Neyyar.
3.7.4 Hill Stations and Mountains
The mountain ranges in Kerala consisting of the highland area of the Western Ghats exude an exotic charm. The high ranges and hill stations are the favourite spots of nature enthusiasts and adventure seekers. Expansive plantations of tea, coffee, rubber and fragrant cardamom and other spices, for which Kerala is famous, are cultivated on the slopes of these hill stations.
Much of Kerala’s exotic appeal is centered in these highland areas of the Western Ghats. Ideal places for adventure tourism and trekking, the fresh mountain air, the mist clad hills and a panoramic view make them worthy of a visit. Places like Munnar in Kerala produce an exotic species of flowers (Neelakurunji ) that bloom once in twelve years.
Hill stations in Kerala offer tourists an opportunity to spend their vacations amidst clean and fresh air of the hills. Some of the more popular hill stations in Kerala are those of Mattupetty, Munnar, Devikulam, Tekkadi, Agasthyakoodam, Vagamon, Nelliyampathy, Attapadi, Silent Valley, Ponmudi, Wayanad, Idduki, Kannur, Kasargod, Tusharagiri, Edakkal, Soojipara and Kozhikode. Here one can see the milky waterfalls, mighty rocks, lakes, and hill-plantations.
3.7.5 Pilgrimage Tourism
Kerala has a number of pilgrimage places and famous pilgrim centres consisting of ancient temples and shrines, remote places of worship in villages and on hillocks as well as popular and crowded pilgrim centres spread across the state. The sacred
107 temples of Kerala that lie in different parts of this picturesque coconut country are popular among devotees.
Kerala provides a pure and pristine atmosphere where one can spend his pilgrimage tours in divine prayer, invoking the Almighty by participating in devotional songs, temple festivals and other temple activities. Various fairs and festivals are celebrated all year round in these pigrimage places, with special sets of religious rituals characteristic to specific festivals.
Kerala has a number of pilgrimage centres of importance to Hindus, Muslims, Jains and Christians alike. Some of the popular destinations comprising temples, churches and mosques are Guruvayoor, Sabarimala, Chottanikkara, Attukal, Bharananganam, Malayattoor, Maramon, Parappanangadi, etc where thousands throng to worship their deities and pay obeissance. Kerala also houses some ancient Jewish synagogues in the island town of Fort Kochi.
3.7.6 Monument Tourism
Beyond the cool coconut groves and lush paddy fields, palm fringed beaches and emerald backwaters, verdant hills and rain forests, Kerala has a sound treasure of architectural monuments which symbolize art, culture, tradition and architecture. The state has a great composite culture, enriched by three main religions – Hinduism, Christianity and Islam. These communities have greatly contributed to the monumental wealth of the state in terms of its history and culture. Some of the great architectural treasures of the state like the beautiful wooden palace at Padmanabhapuram and the 16th century Jewish synagogue at Fort Kochi are marvelous tourist attractions and are worth visiting.
The different monuments of Kerala symbolic of its art and architecture that stand in between the golden palm beaches, the serene lagoons and the pristine hills offer every tourist in Kerala a spectacular sight. The massive forts, once a witness to the chaos of sprawling powers and kingdoms stand silently as an acknowledgment of the past glory. The temples, mosques and churches are also reminiscent of the elegance and prosperity of a bygone era. The most popular monuments of the state include the Padmanabha Swami Temple, Napier Museum, Padmanabhapuram
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Palace, Krishnapuram Palace, Bolgatty Palace, St. Francis Church, Vasco da Gama Squire, Palakkad Fort, St. Angelo Fort and Bekal Fort.
3.7.7 Waterfalls
The forests of Western Ghats are punctuated with large and small waterfalls that gurgle and splash down the mountain side of Kerala. The wooded forests of the Western Ghats are hidden with cascading showers that enchant the visitors. Waterfalls in Kerala have a great influence in the growth of the tourism industry in the state. Some of them especially the ones at Athirappilly and Vazhachal are scintillatingly beautiful and offer a bewitching sight. Others like the Palaruvi fall is said to contain medicinal properties. There are also others ranging from small gurgling streams to roaring rushing falls that provide a scintillating attraction to visitors. The important waterfalls in Kerala include Athirapally, Vazhachal, Palaruvi, Meenmutty, Aruvukuzhi, Adyanpara and Tusharagiri. The picturesque places around the falls are popular trekking and picnic spots, with the greenery and landscape infusing freshness into any tired soul.
3.7.8 Parks and Gardens
Parks and Gardens in Kerala with green areas not only add to the beauty of the land, they also help to conserve nature as well as serve as refreshing picnic spots/sanctuaries housing specimen of tourist interest. One can get to bask in the glory of nature and rejuvenate himself in these elaborate gardens and parks that are found aplenty in Kerala. The artificial parks and gardens are also becoming a part of the metro lifestyle throughout Kerala.
The extensive Malampuzha Gardens located on the outskirts of Palakkad town is the most popular tourist park in the state. The Silent Valley National Park spread over an area of 90 sq. km preserves some of the country’s last substantial stretch of virgin tropical evergreen forests. This park represents one among the spectacular biodiversity spots in the Western Ghats and houses some exotic species of flora and fauna that include more than 100 species of orchids and rare animals like the slender Loris, Gaur and lion tailed macaque.
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There are also reptile parks, bird sanctuaries and other wildlife centres besides artificial parks and gardens present in Kerala that add to its greenery and enhance the beauty of nature.
3.7.9 Rivers and Dams
The rivers in Kerala have become a unavoidable part of the state’s tourism industry. Kerala has fourty four rivers amoung them 41 are flowing to west and 3 are flowing to east. These rivers are very attractive to tourists because of their beauty, clealiness and bewitching sight. Rivers and Dams in Kerala have a great influence in the growth of the tourism industry in the state that provide a scintillating attraction to visitors. Some of the important rivers and dams in the State are Maniyar, Moozhiyar, Neyyar, Aruvikkara, Mullaperiyar Dam and Periyar River, Cheruthoni, Idukki Arch Dam, Malankara Reservoir, Malampuzha, Kanjirapuzha, Mangalam, Sitharkundu and Meenkara.
3.7.10 Eco Tourism
Kerala, the tourist friendly state of India, gives special attention in promoting Eco- Tourism in the state. Eco tourism has taken off in a great way in the tourism industry of the state, since it has ample destinations known for its natural beauty and exquisite landscape. Kerala is the only perfect hub for promoting eco tourism in an exalted way as it is one of the greenest destinations in country.
The verdant beauty of Kerala is richly highlighted through the different eco tourism destinations. The hill stations, Western Ghats, Silent Valley, the wildlife sanctuaries, jungles, waterfalls, etc. are all splendid eco tourism destinations.
Eco tourism is all about being sensitive to ones surroundings and the need to preserve nature. The greenery that abounds in Kerala is not only relaxing but also refreshing. The green patch that is Kerala offers shelter to some of the best plant, bird, mammal, reptile, and amphibian species. The important eco-tourism destinations in Kerala include Thenmala, Nelliampathy, Kuruva, Poovar, Bhoothathankettu, Konni, Thatekkad, Peruvannamoozhy, Kumbalangi and Thekkady
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3.7.11 Adventure Tourism
Kerala is a hot destination for nature lovers and adventure seekers as it offers the tourists umpteen opportunities to unleash their enthusiastic selves. The high mountains, gushing rivers, dense forests and the vast stretches of ocean water present just the right destinations to let loose the adventurous spirit and indulge in some really exciting activities. From water sports to wildlife tours and trekking trips, adventurous travellers have plenty of choices to rejoice about in Kerala. The adventure seekers can opt for backwater biking, bird tours, camping, jungle safaris, canoeing, hiking and biking, trekking, water sports, wildlife tours and much more in Kerala. It is a paradise for the bird watcher with hundreds of species of birds. Kerala, being the land of rivers, lagoons and lakes in the interiors and the sea on the west, also makes it an ideal destination for those inclined to indulge in water sports for relaxation and adventure. For the wildlife enthusiasts, Kerala offers its diversity in the wildlife parks. The tropical evergreen rain forests in Kerala like the famous Silent Valley National Park offer scope for a variety of exciting adventurous activities for travel enthusiasts.
3.7.12 Sports Tourism
Kerala has always shown a keen interest in the field of sports and games and the state has gifted some of the best athletes and stars in cricket and football. Those who have genuinely motivated with sportsman spirit can see facilities for indoor and outdoor games in all important towns and cities of the state. Cricket, Hockey, Football, Baseball and Tennis are the popular games here. The hills stations, peaks and mountains of Kerala never regret a sportsman to find adventure in trekking and mountaineering. Besides, Kerala is famous for its backwater cruises and boat races. The fantastic boat races in Alappuzha are pure adrenalin, with 30 metre-long snake- shaped boats, and hundreds of oarsmen singing loudly as they tug at the oars, competing for the most coveted prize in these parts.
3.7.13 Village Tourism
The villages in Kerala offer a feast to the eyes of the travellers by way of its panoramic view of the fields, farms, hillsides, rivers and lakes. The locals engage in
111 fishing, farming, pottery, jute making and handicrafts. The visitors are taken on a tour around the village, where you can see many artisans at work. Stone cutting, carpentry, inlay work, textile block printing, and potters at their wheels – such rare sights offer joy and relief to the travellers. Some of Kerala’s most interesting features can be seen during these tours. These tours can also be combined with visits to tribal villages and to major places of tourist interest. Such village tours are not only informative but also enjoyable and relaxing. Some of the popular village tourism destinations are Aranmula, Cheppad, Thodupuzha, Alapuzha, Kumbalangi, Cherai, Marayoor, Nilamur, Palai etc.
3.7.14 Farm Tourism
Farm tourism is a relatively new tourism product. Kerala, being an agricultural dominated state, has tremendous potential for developing Farm Tourism in a best profitable way without much additional investment. Reports state that Kerala has 30.2 lakh hectares of gross cropped area which is 56.78% of the State’s total geographical area. More than 1/3rd of this cropped area contains Tea, Coffee, Rubber, Pepper, Cardamom and Ginger plantations, and another 1/3rd of this area is covered by Coconut palms. The State has about 350,000 lakhs hectares of land under paddy cultivation 21 .
There is a possibility of converting potential cropped areas of the state as tourist attractions with minimum intervention to transfer the benefits of tourism directly to the farmers. The various schemes underway are intended to prepare the Farms/Plantations of Kerala to receive tourists by presenting a positive image of the farm and of agriculture as a whole, in view of revitalising the agriculture sector of Kerala through tourism.
3.7.15 Institutional Tourism
Institutions are another important tourism resource in the modern and post- modern world. There are so many institutions in the world which attract the tourists because of its resourcefulness, physical beauty, architecture, traditional and cultural importance, the skills and knowledge imparted, and of many other attractive features. In Kerala a number of foreign and domestic tourists are interested in
112 visiting institutions like Vijnana Kalavedi (imparts training in traditional arts and crafts), Vaastu Vidya Gurukulam (centre to conserve and preserve the ancient art of traditional building and construction methods), Kerala Kalamandalam (home of Kathakali, the renowned Kerala dance drama), Kerala Sahitya Academy, Kerala Sangeetha Nataka Academy, Kerala Lalitha Kala Academy, Kottakkal Arya Vaidyasala (one of the best Ayurvedic centres in the World), etc.
3.8 The Unique Experiences and Resources in Kerala
Apart from the schematic tourism resources like monuments, beaches, backwaters, waterfalls, rivers, lakes, Dams, hill stations, mountains, pilgrim centres, wildlife sanctuaries etc., Kerala has its own quaint tourism experiences and resources which could not be availed or experienced in its originality and intimacy elsewhere in world. The indispensible among them are presented precisely.
3.8.1 Ayurveda - Harmony of Body, Mind and Soul
Kerala is the only place in the world where Ayurveda, the ancient form of science and the holistic system of medicine based on nature is practiced with its real spirit, absolute dedication and perfection. The state’s equable climate, natural abundance of forests with a wealth of herbs and medicinal plants, and the cool monsoon season are best suited for Ayurveda’s curative and restorative packages and programmes.
Ayurveda evolved around 600 BC in India. This system of medicine focusses on holistic treatment and stressed on the prevention of body ailments in addition to curing them. Today, it is a unique indispensable branch of medicine - a complete naturalistic system that depends on the diagnosis of one’s body humours - vata, pitta and kapha - to achieve the right balance. Ayurveda believes in the treatment of not just the affected part, but the individual as a whole. This makes it the natural way to rejuvenation, eliminating all toxic imbalances from the body and thus regaining resistance and good health.
Recently Ayurveda became as a vital part of Kerala tourism industry as it has been bringing unlimited foreign exchanges to the state. Kerala has been well known for hundreds of years for its practice of Ayurveda – a system of medicine that believes
113 in not simply treating the ailment but attending to the whole person. Tourists from the western world have been travelling here for spiritual and physical awakenings ever since the Beatles made their sojourn to India in the mid 60’s. Kerala has experienced a boom in the development of Ayurveda retreats, designed exclusively for Health Tourists. Recently Kerala with the support of the government of India, initiated assertive marketing initiatives to specifically promote Kerala as the premier health tourism spot in the world 22 .
3.8.2 Houseboat Cruises
A leisure cruise in Kettuvalloms- houseboats, along the palm-fringed backwaters of Kerala is the most enchanting holiday experience for the travellers. The boat ride takes the travellers the past ancient Chinese fishing nets, water lilies, lush paddy fields, coir villages, rustic homes, ancient temples and coconut groves. The Kettuvallams provide all modern comforts and services that include well furnished rooms and other facilities with cabin crews.
Houseboats are huge, slow moving, exotic barges made of fine but heavy-duty planks of jack-wood held together absolutely by coir knots, designed for sheer leisure trips. Formerly, houseboats were used to ship rice, spices and other goods between Kuttanad and Cochin port. A standard houseboat, which could be about 100 feet long, can hold up to 30 tons, and that is as much as three big Lorries can. The major houseboat locations in Kerala are Alappuzha, Kuttanad, Kumarakam, Thiruvallam, Kollam, Kottayam, Kozhikode, Kasaragod, and Valiyaparamba.
3.8.3 Kerala Cuisine
Kerala has a distinctive Cuisine with its salivating recipes as its cultural life and traditions. It is greatly influenced by its long coastline and flavoured by the all- pervasive coconut. The cuisine is enriched by the exotic fruits, vegetables and seafood, and garnished to perfection with the redolence of spices like green chillies, cumin, coriander, clove, cinnamon, cardamom, and dried red chillies. Curry and coriander leaves added fresh provide a subtle yet irresistible flavour.
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Kerala is the best place to have one of the most fabulous breakfasts, both in terms of taste and nutritional values, in the world. Some of the usual items of breakfast are the Puttu (made of rice flour and coconut) and Kadala (gram) curry; Idiappam (noodle like rice cakes) and egg/vegetable curry; appam (soft centred lacy pancakes) and mutton/vegetable stew. The Sumptuous Sadya, served on a plantain leaf and eaten with hand, is the traditional Kerala feast and the non-veg delights like prawns, lobsters, crabs, mussels etc are enticingly cooked with exotic spices. Besides, the Moplah cuisine of Malabar and Syrian Christian cuisine are unique in its rich flavour, while the former show clear Arabic influences, the latter has Syrian, Dutch, Portuguese and British influences.
3.8.4 Commercial Centres Fort Koch : An obscure fishing village that become the first European township in India and made up an eventful and colourful history. A leisurely walk through the city is the best way to discover historic Fort Kochi. The town was shaped by the Portuguese, the Dutch and later the British. The result of these cultural influences is seen in the many examples of Indo-European architecture. Jew Town : The area round the Synagogue is called Jew Town. Tourists from various countries frequent here to buy spices and various items of antique value. The art galleries and art cafes here sell and exhibit paintings, drawings and sculptures.
3.8.5 Shopping
As the state has been renowned for its handlooms, gold ornaments, spices etc, Kerala is an ideal place for shopping. The handicrafts of Kerala are known for their uniqueness of style, perfection of form and elegance of design.
The Aranmula Kannadi (a kind of mirror made of an alloy of copper and tin, and oval in shape), Nettur Petty (the ethnic jewel box made of rosewood with handcrafted casket) Kasavu Mundu (handloom saree), spices and traditional gold jewellery are some of the most precise items that tourist can buy at shops across the state as a monument of his visit.
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3.8.6 Performing Arts
Classical Arts: Kerala is home to a stunningly unique variety of art forms which have impacted the social and cultural life of the state, adding to its typical character. The tradition of classical arts in Kerala dates back to a thousand years. Perhaps the oldest of these classical arts is Koodiyattam , a dance-drama associated with temple rituals. This art form was recently selected by UNESCO as one among the ‘Masterpieces of the oral and intangible heritage of Humanity 23 .
Kathakali , popular as the art form of Kerala has been referred to as ‘the first theatre of imagination’ of the world owing to its elaborate costumes, ornaments and facial make-up and the entire body is used to portray a story. Besides, Mohiniyattom - the dance of the enchantress and Thullal with different dimensions like Ottanthullal etc are the different traditional classical arts forms in Kerala.
Folk Arts: Kerala has a rich repertoire of folk performing arts, folk songs and folk drama reflecting man’s overpowering rapport with nature and his constant desire for communication with the unknown. The tribals of Kerala, Adivasis- the first native people, keep alive a folklore tradition in the eco-friendly life they lead and the natural pharmacy they practice. Theyyam, Thira, Mudiyettu, Kaduvakali, Velakali, Kakkarissi Natakom, Chavittunatakam, Margamkali, Kolkali, Parichamuttukali, Bhadrakalipattu, Pulluvanpattu, Thiruvathirakali are only a few of Kerala’s folk arts forms.
Kalaripayattu: Martial Art Kalaripayattu the martial art form of Kerala is regarded as the oldest and most scientific in the world. The training in combat is given at the Kalari . The principles of Kalari education stipulate that training in martial arts begins with an oil massage of the body which goes on until the body is agile and supple. Feasts like chattam (jumbing), ottam (running), marichil (somersault) etc. are then taught, followed by lesson in the use of weapons such as daggers, swords, spears, maces, the bow and arrow and so on. Kalaripayyattu training aims at the ultimate co-ordination of the mind and body. The traditional training in Kalari includes specialisation in indigenous medical practices as well
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Kerala is also distinctly famous for its other art forms like music and poetry as well as craft forms including murals, sculpture and architecture. The rich and vibrant culture of Kerala has been continuing to intrigue people worldwide. The traditional classic and folk songs and dances of the people, their ballads, their rituals and their intellectual pursuits form the real treasures of Kerala contributing to its rich cultural heritage.
3.8.7 Festivals and Fairs
Kerala is the land of festivals and fairs. With its beautiful landscapes, Kerala has more than enough reason to celebrate and the varied culture of the state has given expression to a colourful mosaic of festivals and fairs. The spirit of celebration is very much a part of the ethos of the state of Kerala and for visitors to this state, its fairs and festivals are a must see event to be included in their travel. A closer look at the Kerala calendar will reveal that it is a land where the festivals never end. Apart from the traditional festivals like Onam and Vishu there are a score of temple festivals like the world-renowned Thrissure Pooram. The notable festivals in the state are Poorams, Elephant Pageants, Boat Races, fireworks display, traditional rituals etc. The fairs and festivals of Kerala give the best opportunity to display the traditional performing arts and the delicious cuisine of the land.
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Conclusion This chapter is dedicated to discuss and analyse the performance and resource potential of Kerala Tourism Industry. The performance analysis depicts a clear picture of the Kerala Tourism Industry in regard to the tourist inflows and generation of income in the State. It sketched out the trends of tourist arrivals both domestic and foreign since 1996. The inflow of tourists in the state (both domestic and foreign) shows an increasing growth rate since 2001. The facts and figures of the earnings from tourism show an increasing trend over the years from 1996 to 2007.
The resource potential analysis of Kerala Tourism Industry reveals that it has abounding tourism resources which include beaches, backwaters, wildlife, hill strations, waterfalls, vegitations, pilgrim centres; monuments, parks and gardens, adventure and sports tourism, village tourism, farm tourism, Ayurveda, house boat tourism, and cultural tourism resources. These natural and man-made tourism resources and attractions help to develop and market varied tour packages and thus to attract almost all segments of tourists to the state. These resource potentials and attractions made the State to known worldwide as ‘God’s Own Country’.
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References
1. Victor, M. F. I. C. (1970). Kerala: Yenan of India . Bombay: Nachiketa publishers, p.2 2. Research and Statistics Division. (2007). Kerala tourism statistics. Department of Tourism. Trivandrum: Government of Kerala, p.15 3. Rashtra Deepita. Exotic eastern paradise . Kochin – Kerala: Rashtra Deepika, p. 24 & 25 4. The Kerala companion. Department of Tourism, Government of Kerala, p.5 5. Singh, C. S. (1988). Kerala: this beautiful India. New Delhi: Ess Ess, p.1 6. Seshan P. A. Discovering Kerala. New Delhi: Vikas House, p.8 7. Singh, C. S. (1988). Kerala: this beautiful India. New Delhi: Ess Ess, p. 1-2 8. George Woodcock. (1967). Kerala: a portrait of the Malabar Coast. Lodon,p.29 9. Chaitanya Krishna. (1972). Kerala. New Delhi, p.2. 10. Pusalker, A.D. (1955). Parasurama and the Konkan . Trivandrum: Kerala studies . p.1 11. Chaitanya Krishna. (1955). Kerala dharsan. Maddras: Janatha Press. 12. Pusalker A.D. (1955). Parasurama and the Konkan . Trivandrum: Kerala studies . p.1 13. http://www.keralaeverything.com/his.htm 14. http://www.keralatourism.org.in/aboutkerala.html 15. Rashtra Deepika. Exotic eastern paradise . Kochin – Kerala: Rashtra Deepika, p.22 16. Department of Economic Planning. (2008). Kerala economic review . Department of Economic Planning, Government of Kerala, p.219 17. Department of Tourism. (2007). Kerala tourism statistics . Research and Statistics Division, Department of Tourism, Government of Kerala, p.29 18. Ibid., p. 18 & 26 19. Ibid., p.26 20. Department of Tourism. The Kerala companion. Research and Statistics Division Government of Kerala, p.212 21. http://www.keralatravels.com/stateresources 22. Department of Tourism. (2007.) Kerala tourism statistics . Research and Statistics Division, Government of Kerala, p.25 23. Department of Tourism. Classical performing arts. The Kerala companion. Government of Kerala, p.208
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CHAPTER - 4 Working Structure and Overall Operations of Kerala Tourism Development Corporation (KTDC): A SWOT Analysis
The previous chapter analysed the performance, in regard to the trends of tourist inflows and earnings, and the resource potential, with special focus on tourist products, of Kerala tourism industry. This chapter is dedicated to discuss and analyse the working structure and overall operations of Kerala Tourism Development Corporation with special preference to its marketing functions and operations which followed by a SWOT analysis. This also presents KTDC’s contribution to tourists’ inflows in the State by way of tour packages with the help of a simple random sample survey.
Even though tourism was declared as an industry in Kerala way back in 1986, effective marketing and promotional measures were undertaken by different agencies and organisations to attract tourists and to highlight Kerala as a distinct destination 1. With this aim, on 1 st April 1966 a concern named Kerala Tourism Development Corporation (KTDC) came into existence 2. The Corporation is concentrating on innovative tourism and high standard service and various well researched tour packages with a good measure of action, excitement and adventure. With an array of prime properties set in the finest spots of Kerala’s theme destinations, KTDC presents exotic ways to experience the State with its perfection.
Designed to give a feeling of the heritage of hospitality, the Kerala Tourism Development Corporation is offering a spectacular view of the State’s natural splendour and the tastes of its spicy richness with a subtle blend of traditional and luxurious properties. The largest hotel chain in Kerala, KTDC has over sixty properties across the state which includes a range of luxury and budget hotels as well as Yatri Nivasses and motels to make tourist stay an exciting experience. Almost all these exclusive properties are set in exotic theme locales across the State and all the properties have multi cuisine restaurants, bars and cafeterias. Apart from the exclusive array of day tours and holiday packages the Central Reservation Cell of KTDC takes care of tourists onward journey reservations and bookings in selected hotels across India. Kerala Tourism Development Corporation thereby plays a significant role in the development of tourism in the State. A large number of foreign as well as domestic tourists are catered by KTDC every year and the tourists approved the services rendered to them by the corporation.
4.1 Historical Background
Kerala Tourism Development Corporation, fully owned Government Company head quartered at Thiruvanathapuram in the state of Kerala, has a history of gradual development and advancement throughout the 44 years of its existence. KTDC is focusing on tourism related infrastructure and is opening a chain of hotels and transport network for tourist in Kerala. The company was incorporated on 29 th December 1965 by the name ‘Kerala Tourism and Handicraft Corporation Private Limited’ with an authorised capital of Rupees One crore. The company was registered as a private limited company and commenced its business on first April 1966 with three hotels namely Aranya Nivas, Lake Palace and Kovalam complex which have been handed over by the Government of Kerala as capital. On 15 th July 1970 the corporation was reorganised with the name ‘Kerala Tourism Development Corporation (KTDC)’. 3
The State’s premier destination developer, Kerala Tourism Development Corporation is registered under the Companies Act 1956. At the time of its incorporation the company was in possession with the corporate office in Thiruvananthapuram and the three regional offices at Trivandrum in the south- region, Kochi in the central-region and Kannur in the north-region of the State. At present the corporation has 71 units which include nine premium hotels, eight budgeted hotels, 14 tamarind easy hotels, 12 motels, three restaurants, eighteen restaurants cum beer parlours, one Central Reservation Cell (CRC), three Tourist Reservation Centre (TRC), two travel divisions and one shopping complex. Corporation has memberships in prestigious international and national organisations such as World Tourism Organisation (WTO), Travel Agents Association of India (TAAI), Federation of Hotel and Restaurant Association of
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India (FHRAI), and Indian Association of Tour Operators (IATO). Recently KTDC established a subsidiary company called Tourist Resort Kerala Limited (TRKL) for forming joint venture with leading players in the tourism industry.
The autonomous body undertaken by the Government of Kerala to provide services to the tourists coming in the State, KTDC has a wide range of services for tourists such as accommodation, transportations, sightseeing facilities, vending vehicles and hotels, and reservation facilities, conducted and package tours etc. Official host of God’s Own Country is the slogan of KTDC, which offers all excellent easy ways to knowledge of Kerala and gains several awards and recognitions for its hospitality and generosity. The properties of KTDC ranging from luxury hotels to budget hotels and motels, Yatri Nivases and restaurants, KTDC aptly qualifies as the official host to ‘God’s Own Country’. The premium properties of this largest chain in the state are located in the most picturesque theme destinations of Kerala and give a different ambience of their places especially the Royal Palaces as the island of Kochi, Lake Palace and Arya Nivas in the jungles of Thekkady, Hotel Samudra waterscapes as the Vambanad Lake and Tea County at Munnar etc. KTDC also offers Ayurveda Centres, Cultural entertainment and the best of Kerala’s cuisine at its major establishments.
The most reliable tour operator and travel agent of Kerala Government, KTDC offers comprehensive holiday package - exclusive escapades offers holiday packages and conducted tours that are set in the premium properties of KTDC. As a pioneering tourism development corporation, KTDC has also introduced innovative concepts like Insured Holiday and Rail Holidays, which provide a complete experience of Kerala. Its service is now able to give the travellers all information regarding ticketing, visa facilitations, national and international air ticketing and several striking tour packages.
Kerala Tourism Development Corporation is actively involved in building up basic infrastructure needed for the development of tourism in the State. It has a diversity of hotels from the most luxurious to the most economical and from small motel to world-class resorts which provide something for every taste and budget. The company is engaged in renovating all its major hotels like Mascot Hotel, Arya
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Nivas, Lake Palace Hotel Samudra etc. located at different destinations of the State. KTDC operates pilgrim’s shelter at Sabarimala every year and full-fledged restaurants at Pamba to serve lakhs of pilgrims. The Amusement Park at Veli Tourist Village commissioned recently is an important feature of the tourist spot. Neeraja the floating restaurant at Veli, Kettuvallams (houseboats) of the Tharavaadu style at Kumarakam Tourist Complex and other very attractive speed boats and cruise boats are innovative facilities provided by KTDC for tourists recently.
KTDC regularly conducts food festivals in the occasions of Onam, Christmas, Eid etc. mainly at Mascot Hotel, Thiruvananthapuram and occasionally in other centres across the state. The corporation is a regular participant in National and International fair like International Trade fair held at Pragathi Maidan, New Delhi, International Tourism Borse (ITB) Berlin, World Travel Mart (WTM) London and ATM Dubai etc. KTDC has implemented a year-long umbrella package campaign called ‘Visit Kerala Year 2009’ for non-resident Keralites from January 20 th , 2009 with the aim of wooing more domestic tourists to the state by focusing on Tier-II cities 4.
4.2 Vision
Following are the vision statements of KTDC
• To expand its service base to more and more emerging areas and in developing new tourist destinations in the State. • To increase Foreign Exchange and Domestic contribution. • To increase the Employment Opportunity (direct & indirect)
4.3 Mission
“To develop infrastructure and quality accommodation options in the State and thereby promoting tourism as a whole in Kerala”
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4.4 Strategic Intents
Being one of the chief promoters of tourism in Kerala, KTDC has been accepted the following as the strategic intents of the organisation. These strategic intents are acting as interlinks between the vision, mission and strategic and established objectives of the Corporation.
• To elevate tourism as the economic and employment priority of the State by using tourism as the vehicle of growth for physical, social and economic development of the State. • To promote sustainable tourism development with focus on Conservation and Preservation of Heritage through participation of Panchayathi Raj Institutions. • To ensure quality services in all areas of tourism in the form of regulation, classification and monitoring. • To develop infrastructure through private sector and private-public partnership, with government acting as a facilitator and catalyst. • To develop and promote tourism products with continuous focus on backwaters, Ayurveda, performing arts, pilgrim centres, cuisines and eco- tourism. While promoting Ayurveda, the value of naturopathy herbal medicines and tribal medicines will also be given due importance. • To concentrate on development of basic infrastructure by co-ordinating all line departments. • To create sufficient quality human resources in the field of tourism within the State and strengthen the institutional mechanism. • To enact proper legislation to sustain the industry and to regulate tourism activities through Government, industry and PRI collaboration. • To explore and develop new markets for Kerala Tourism products at both domestic and international levels. • To conserve and preserve the unique cultural heritage of the State. • To ensure the safety and security of tourists.
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4.5 Objectives
KTDC has been established by the Government of Kerala to promote tourism in the state. Along with this prime objective the corporation is taking into consideration the following objectives also.
• Take over and manage existing hotels and sell, construct, purchase, acquire, lease, take on lease, run and maintain hotels, motels, restaurants, canteens, cafeterias, travellers’ lodges for the purpose of boarding, lodging and stay of tourists. • To organise conducted tours and tour packages in order to generate income to the State. • To provide entertainment facilities to tourists by way of cultural shows, dances, music concerts, cabarets, ballets, film shows, sports and games etc. • To provide transport facilities to tourists. • Provide shopping facilities to tourists, and establish and manage shops, including duty-free shops to promote handloom and handicraft products. • To study the marketing strategies and to understand the market segment. • To find out the influence criteria of the marketing towards the hotel. • To understand the relevant technologies and are to perform the tasks necessary to meet the development objectives. • To understand the Marketing/ Sales including contacts in the industry (prospectus, distribution channels, media) familiarity with advertising and promotion, personal selling capabilities, general management skills and a history of profit and loss responsibilities.
4.6 Share Capital
The corporation was incorporated with an authorised share capital of Rs. One crore divided into One Lakh equity shares of Rs. 100/- each. With the expansion in the volume of business, the share capital base has also been increased. At present the authorized share capital of the corporation is Rs.50 crore and the paid up capital is 49.7 crore. The proposal to enhance the authorized capital to Rs.75 crore is under approval with the government. The shares of the corporation are held by the
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Governor of Kerala (4979483 shares of Rs.100/- each) and the Secretary of Tourism (One share of Rs.100) 5.
4.7 Working Structure of KTDC
The official host to God’s own country, Kerala Tourism Development Corporation brings its extensive understanding of Kerala to offer the most comprehensive tourism network in the State from reservation to transit, houseboat cruises to heritage tours, motels to information centres, holiday packages to nice holidays, spice tours to worldwide safaris and more. In order to make the organisation functioning smoothly, KTDC has built a very conformable functional organisational structure.
KTDC is divided into Centralised and Decentralised units. The centralised units are controlled by the three regional offices of North, South and Central zones of the State located at Calicut, Thiruvananthapuram and Kochi respectively. Under the Central Reservation Cell there are four Tourist Reservation Centres functioning at Thiruvananthapuram, Kochi, Chennai and Delhi. The Decentralised units consist of large number of units such as luxury hotels, premium hotels, budgeted hotels, motels etc. These independently functioning units have their own administrative and office personnel to look after the day to day operations. They utilise allocated funds for the day to day commercial functions of the units concerned.
The Working Structure of Kerala Tourism Development Corporation consists of mainly seven departments which can be viewed in the form of an organisational chart as shown in the figure 4.1 and the detailed Organisational Structure has been shown in figure 4.2
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Figure 4.1: Shows the Organisational Chart of KTDC
CHAIRMAN
Board of Directors
Managing Director
Secretary& Finance Controller
Commercial Accounts & Engineering System Finance Analysis Department Department Department Department
Marketing Personnel Training
Departmen Departmen Departmen
Source: KTDC, official records.
The Chairman, who is a nominee of the Government, stands at the top of the management hierarchy of Kerala Tourism Development Corporation. One among the Board of Directors will be elected as the Managing Director to look after the activities and functions of each departments of the Corporation. KTDC consists of seven Functional departments such as Commercial Department, Marketing Department, Personnel Department, Accounts and Finance Department, Engineering Department, Training Department and System Analysis Department. Figure 4.2 gives a diagrammatic view of the functional departments of the Corporation.
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4.7.1 Functional Departments
In order to make the organisation functioning smoothly and effectively, KTDC has been divided into different functional departments which consist of Commercial, Marketing, Personnel, Engineering, Accounts & Finance, Training and System & Networking departments. A brief description about the each department follows.
4.7.2 Commercial Department
Figure 4.3: Commercial Department Structure
Commercial Department
Commercial Manager 1 Commercial Manager 2
Office Regional Regional Manager Manager Premium
Hotels Regional
Manager
Budget Hotels
Others
Superintendent
Staff
Source: KTDC, official records
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One among the departments of supreme importance, Commercial Department consists of two Commercial Managers, three Regional Managers, Superintendent and other staff members. Commercial Manager 1 controls the decentralised units and Commercial Manager 2 controls the centralised units. Beyond the three Regional Offices, the travel and tour section also comes under the Commercial Manager 2. The travel and tour section is in charge of purchasing vehicles including lease and hire purchase, maintenance and repair of boats and other vehicles etc. Figure 4.3 shows the departmental structure of Commercial Department.
Functions of Commercial Department
Central Purchase: Commercial Department makes the purchase of the cutlery, crockery, grocery etc for the units of KTDC. Quality and price are the two standards taken for the purchase of materials. General Correspondence of the Units : Commercial Department looks after the functioning of the units. The commercial department controls and coordinates the functioning of the units. Keeping of Documents: The department keeps the files regarding the payment details which include payment of land tax, building tax etc. of the units. Development and Renovation of Units : Commercial Department provides necessary suggestions for the development of the Units. The department conducts inspection regarding the performance of the units as well as to avoid malpractices within the units. Customer Support Services : The Department gives necessary support to the customers in case of credit purchase, advance booking etc. The Function includes: Assists the Corporation in planning materials and services, and serves an information centre on material knowledge relating to price and source of supply and delivery made.
4.7.3 Marketing Department
The Marketing Department concerned with the marketing efforts of the final product market oriented activities is necessary in today’s competitive world.
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Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals 6. The main function of marketing is managing relationships in an organisation, with outside vendors, and the consumer. Without marketing there is no consumer and without the consumer there is no use for the product or service the company is producing7.
Tourism Marketing comprises fact finding, data gathering analysis and promote ensuring and facilitating sales, selection of marketing, planning, (distribution), co- ordination, control and evaluation (marketing, planning and audit), developing professionally sound personnel 8. Marketing department of Kerala Tourism Development Corporation is putting their integral effort to satisfy tourists and also transforming the potential tourists into actual customers. The Department deals with direct selling, organising national and international travel tour fairs, printing and distribution of various tariff, hospitality, handling customer complaints, promotion, advertising, publicity, telemarketing etc. The structure of the marketing department can be depicted as shown in figure 4.4
Figure 4.4: Structure of Marketing Department
Manager Marketing
Deputy Manager Marketing
Other Staff
Manager - Central Reservation Cell
TRC TRC TRC TRC TVM Cochin Chennai New Delhi Source: KTDC, official records
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Objectives
o To satisfy the customer needs and wants through creating and exchanging services. o To develop and retain the customers.
Functions
o Collecting information and facts, and analysing the information. o Analysing customer complaints and to take preventive action against recurrence of similar complaints. o Informing the customers about the services and products offered by KTDC through various means and thereby promoting the business through press release, tour fest etc. o Developing new tour packages and renovating existing packages in accordance with the customer preferences. o Undertaking intensive and additional promotional efforts to attract maximum customers to the organisation.
4.7.4 Personnel Department
Personnel and Administrative Department is responsible for ensuring the maximum utilisation of the available human resources to achieve the organisational objectives as well as carrier goal of the employees. In KTDC there are 606 permanent staff, 800 contract employees and 532 trainees. Employees recruited as trainees are usually taken for a period of 6 months, which may be extended for one or two terms if required. As the main business of KTDC is hotels, which is mainly of seasonal nature, the organisation employs casual labours on daily wage to meet the urgent requirements. The figure 4.5 shows the organisation of the employees in the Personnel Department of Kerala Tourism Development Corporation.
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Figure 4.5: Personnel Department Structure
Personnel Officer
Deputy Manager
Personnel
Senior Superintendent (Administration)
Junior Junior Superintendent (HR) Superintendent (P&A)
Senior Office Senior Office Assistant Assistant
Office Assistant Office Assistant
Source: KTDC, official records
Functions
The functions of the Personnel Department consists of recruitment, selection, probation, termination and reversion, seniority, termination of services, retirement from services, allowances, holidays, working hours, leave, dispensary action, recovery of damages, industrial relations and trade union matters, and training and development programmes etc.
Subject to the provisions in the Articles of Association, recruitment to services of the Corporation shall ordinarily be made by direct appointments, promotions, deputation from other services. Selection of candidates for appointment to posts
140 under the Corporation shall be made by the Staff Selection Committee of the Board constituted for the purpose. The Corporation have the right to terminate the service of any employee by discharge, dismissal, retirement and retrenchment. The Personnel & Administrative department solves the dispute occurring in the organisation. They render legal advice on matters referred from various other department of the Corporation on subject to varying from recruitment and other service matters to commercial transaction. The department organises various training and development programmes for both new and existing employees in the Corporation with the co-operation of the training department.
4.7.5 Accounts and Finance Department
Finance and secretarial sections of KTDC comes under the control of company secretary. He has to perform financial as well as the secretarial functions. In the absence of MD, Company Secretary is the appellate body. He has to attend the meeting on behalf of the company and has to control and coordinate the functioning of all units. Financial functions like fund raising and fund allocation is done by this section. The preparation of final accounts and other major accounts are approved by the company secretary.
The Accounting Department deals with the maintenance of records relating to the financial dealings of KTDC such as the computation of salary and maintenance of accounts of the units etc. Accounting in the commercial organisation represents writing of financial transactions of the enterprise in a chronological order under the double entry system of book-keeping in an accrual basis.
The centralised and decentralised units sent the income and expenditure statements and the other necessary accounts to the head office. After coordinating the necessary accounts, the head office prepares the consolidated accounts for financial control and uniform collection of the sales analysis statement, sundry debtors’ statement, and advance received statements are used for management and budgetary control.
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Figure 4.6: Structure of Accounts Department
Secretary& Finance Controller
Chief Accounts Officer
Accounts Officer
Superintendent of Accounts
Senior Accountant
Accountants
Other Staff Source: KTDC
Functions
o Preparation of advanced capital budgets and budgets for each unit. o Preparation and maintenance of accounts. o Preparation of capital budget on the request of the units for capital addition based on future programme for development. o Records all details regarding the purchase of goods and its payments. o Monitoring internal audit system. o Budget and budgetary control. o Statutory audit. o Maintenance of payroll. o Recording of receipts and payments made to casual labourers/ trainees, contractual payments, payment of goods, sales tax/luxury tax, service tax etc. o Recording of transactions regarding purchase of assets.
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4.7.6 Training Department
The Training Department of Kerala Tourism Development Corporation came to existence in August 2007, as the Corporation was given special attention to improve productivity of the human resources. The Training Department is headed by the Manager for Training. The strategic planning of this department is to improve productivity and increase profit. Training and development programmes are given to all employees of KTDC in order to improve their technical and behavioural skills.
Types of training provided by the training department of KTDC consist of On the Job Training and Off the Job Training . On the job training is the most effective but least expensive method as the trainee learns by experience and making him highly competent. Job Instruction Training is the main on the job training adopted by KTDC. Off the Job Training consists of lectures or verbal presentation of information by an instructor to a large audience.
Figure 4.7: Structure of Training Department
Manager Training
Faculties
Other Staff Members
Source: KTDC, official records
4.7.7 Engineering Department
The Engineering Department of KTDC headed by Chief Corporation Engineer. The department undertakes all the construction and maintenance activities of the corporation. It mainly deals with the construction of new hotels, projects etc. The
143 maintenance of existing buildings and properties are also done by the Engineering Department. The organisational structure of the Engineering Department is cited in Figure 4.8
Figure 4.8: Structure of Engineering Department
Chief Corporation Engineer
Project Engineer 1 Project Engineer 2 Project Engineer 3 (Civil) (Mechanical ) (Electrical )
Deputy Manager (Mechanical)
Engineers Electrician
Overseers Maintenance Staff
Source: KTDC, official records
The land required for the construction of hotels and other properties is mainly KTDC undertaken by acquisition. The government provides the land for the construction of the units. KTDC appoints external architects for construction works. The necessary materials required for construction are usually purchased by giving tenders in newspapers.
The Engineering Department of Kerala Tourism Development Corporation is mainly divided into three sections, they are
• Civil Engineering Section • Mechanical Engineering Section
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• Electrical Engineering Section
Civil Engineering Wing
The Civil Engineering section of Engineering Department of KTDC deals with:
• Construction of plans for the new projects • Prepares plans for the extension of the existing units • Up gradation of the existing units • Maintenance of the existing units
Mechanical Wing
The Mechanical Wing of the Engineering Department does the repairing works of the lifts, air conditioners, piping works etc. The repairs of the automobiles and boats are done by this wing and they have to check frequently the working conditions and functioning of the above said.
Electrical Wing
The Electrical section deals with all the electrical works in co-ordination with the mechanical wing.
4.7.8 Systems and Networking Department
The Systems and Networking division of Kerala Tourism Development Corporation is in charge of controlling and co-ordinating the entire systems and networking functions of KTDC office, its hotels and other units. The entire systems coming under KTDC hotels have been linked with the Centralised Server at the Headquarters, which helps to rectify the software complaints. The computerised system also helps in collecting the Sales data; identify the changing demand of both customer as well as market and also the necessary of new technologies.
Functions
The functions of Systems and Networking Department of KTDC include:
o Purchasing of Hotel Management Hardware and Software.
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o To make hand with the Government Projects like e-commerce and IT projects. o Controlling the entire System activities of KTDC. o Supplying necessary hardware and software for various departments. o Maintenance of the systems and accessories of the corporation
4.8 Overall Operations of KTDC
Since its incorporation in 1966, KTDC has been playing a key role in the development and expansion of Kerala’s tourism infrastructure in accordance with the government policies. Functioning as a commercial arm of the Ministry of Tourism, KTDC has been acting as a catalyst in the promotion of tourism by opening up new destinations and creating tourist infrastructure in the remote regions where the private sector has been shy of investing.
KTDC has played a pioneering and catalytic role in the growth of tourism in the state of Kerala. Unique in its concept, the Corporation has more than met demands of a catalyst in tourism development while achieving and maintaining profitability. The corporation’s major contributions have been in the field of infrastructure development and tourism promotional efforts. Broadly we can say that KTDC can take the credit for conceptualising the Kerala Tourism Products, as it stands today and for relentlessly breaking new ground. Its endeavour to open exotic new destinations which is hitherto unknown on the international travel circuit and to charter unknown avenues of tourism activity like adventure tourism before introducing them in an acceptable form both to the national and international levels.
The autonomous body under the Kerala Tourism Department, KTDC promotes tourism in the state and provides necessary services to the tourists coming to Kerala. KTDC undertakes the establishment of Tourist Information Centres staffed with specially trained employees at the different parts of the state and actively participating in building hotels and wayside amenities required for the development of tourism in the state. The development of tourist related products, development of wayside facilities, and the conservation of nature, history, heritage, and culture are some of the services of the corporation. Cultural programs, rural tourism, eco-tours,
146 farm related tourism and adventure tourism are all receiving promotional boosts from KTDC with the support of the State and Central Governments.
KTDC provides a wide range of services for the tourists which include:
• Hotels and Motels • Transportation Facilities • Vehicles on Rent • Wayside Amenities • Restaurants and Beer Parlours • Conducted Tours/ Holyday Packages • Tour Packages • Central Reservation Cell • Entertainment Activities • Handlooms and Handicrafts • Consultation Services etc.
4.8.1 Hotels and Motels
The first and foremost operation of KTDC is building and maintaining hotels and motels to provide accommodation facilities to tourists. In order to give a feel of the heritage of hospitality and a spectacular view of natural splendour, KTDC -largest hotel chain in Kerala offers a subtle blend of the traditional and luxurious hotels and resorts to the travellers coming to Kerala. Almost all these exclusive properties are set in exotic and enchanting locales across the state. The hotels of KTDC include the range most luxurious hotels and budget hotels as well as Yatri Nivases and motels to make tourists’ stay an exciting experience. The following are some of the major hotels of KTDC
Mascot Hotel, Trivandrum: Mascot Hotel, located in the heart of Trivandrum city, the capital of Kerala, is the oldest Star Hotel of KTDC, built during World War 1 to house the officers of the Royal British Army. It now stands as a historical edifice polished over time to cater to the tourists or business travellers with all the comforts of a luxury hotel. Mascot turns on its lucky charm with the beauty of its
147 past and the comfort of its present, and what with its accessibility to the Capital City, Mascot Hotel is indeed the idyllic spot to plan a grant retreat.
Highlights : are 66 rooms, Board Room, Wi-Fi facility, Coffee shop, Restaurant, Banquet & Conference halls, Bar, Swimming pool, Ayurvedic centre, Health club, Travel assistance, car hire, laundry, Doctor on call, Currency exchange etc.
Hotel Samudra, Kovalam: Samudra - means Ocean- is the perfect seaside gate way, located in the middle of three palm-fringed coves in the world-renowned Kovalam beach, which is an all-time favourite across the world. Its wide gamut of complimentary amenities and perfect holiday ambience has won Hotel Samudra the national award for the best property in its category in South India.
Highlights : the hotel includes 62 deluxe rooms, 2 suites with sea facing balconies, Restaurant, Coffee shop, Beep Parlour, Ayurvedic centre, Swimming pool, Pool side bar, In-house movies, Handicrafts emporium, travel assistance, car hire, laundry, doctor on call, currency exchange, etc
Water Scapes, Kumarakom: Water Scapes is one of the famous Ethnic Backwater resorts of Kerala situated at Kumarakom surrounded by the scenic Lake Vembanad. Kumarakom is a holiday planner’s paradise, nestled in the mangrove woods surrounded the lake is Waterscapes.
Highlights : The resort highlighted with 40 water front cottages, swimming pool, restaurant, beer parlour, Ayurvedic centre, car hire, currency exchange, laundry, Amphitheatre, etc.
Aranya Nivas, Thekkady: A Deep inside the dense, green wood, perched on the banks of the Periyer Lake is Aranya Nivas or the Sylvan Abode. Aranya Nivas is a wildlife resort with three star facilities. This quaint structure in the colonial style is the only property in India set in the heart of a game reserve and is the perfect venue for a relaxed corporate meet or business conference.
Highlights : It has 30 rooms, suites, swimming pool, restaurant, beer parlour, handicrafts emporium, in-house movie, travel assistance, car hire, laundry, doctor on call, currency exchange, etc.
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Tea County, Munnar: Of course the Tea County is the experience the serenity of the haloed hill stations with a viewpoint that is quite simply spectacular. The erstwhile summer retreat of the British, the Tea County is now the perfect heaven for honeymooners and tourists.
Highlights : The Tea County offers 43 rooms, health club, conference hall, Wi-Fi facility, Board room, Ayurvedic herbal body toning parlour, Restaurant with dancing floor, Beer parlour, indoor games, Para-gliding and Trekking arrangements, car-hire, laundry, Doctor on call, currency exchange, day tours etc.
Bolgatty Palace, Kochi: The Bolgatty Palace, built by a Dutch trader in 1774 at Cochin, was once the summer palace of the Dutch Governor. It stands proud in all its resplendent glory and is now a heritage hotel maintained by KTDC. Incidentally, the Bolgatty palace happens to be the oldest existing Dutch palaces outside the Netherlands.
Highlights : 4 Palace suites with balcony, Recreation room with billiards, chess and cards, Library, Lawn, Boat jetty, Angling, hammocks and hanging cots, Health club, Mini bar, Boat Cruises, Internet Browsing etc.
Bolgatty Island Resort, Kochi: A modern luxury island resort located in the Bolgatty Island in Kochi which is one a stone throw away distance from the heart of the city ‘Marine Drive’. The hotel is set in the pristine green acres of the island surrounded by Vembanad Lake.
Highlights : 24 deluxe rooms with balcony,6 lake front cottages, Restaurant, Beer Parlour, Swimming Pool, Ayurvedic centre, Conference hall, Golf course with nine holes, Large lawn for banquets, Health club, Boat Cruises, Internet Browsing etc.
Lake Palace, Thekkady: The Lake Palace offers unlimited peace and tranquillity, interrupted only by the twitter of birds, a cry in the wild or the excitement of spotting wildlife though the windows.
Highlights : 6 Palatial deluxe rooms, In-house movies, Restaurant, Car hire, Laundry, Doctor on call, Currency exchange.
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Apart from the luxurious star and deluxe hotels, KTDC also operates budget hotels, Tamarind Easy hotels and motels for tourists almost all locales across the state. The list of such budget hotels, Tamarind Easy hotels and motels are given in table 4.1, 4.2 and 4.3 respectively. Table 4.1: KTDC Budget Hotels
Sl. No Name of the Hotel Location 01 Hotel Chaithram Thiruvananthapuram 02 Periyar House Thekkady 03 Pearl Spot Thannermukkam, Alapuzha 04 Hotel Nandanam Guruvayoor 05 Mangalaya Guruvayoor 06 Garden House Malampuzha 07 Pepper Grove Sultan Bathery 08 Malabar Mansion Kozhikode Source: KTDC, official records Table 4.2: KTDC Tamarind Easy Hotel
Sl. No Name of the Hotel Location 01 Tamarind Easy Hotel Neyyardam 02 Tamarind Easy Hotel Asramam (Kollam) 03 Tamarind Easy Hotel Alapuzha 04 Tamarind Easy Hotel Changanacherry 05 Tamarind Easy Hotel Peerumedu 06 Tamarind Easy Hotel Kalady- Ernakulam 07 Tamarind Easy Hotel Thrissur 08 Tamarind Easy Hotel Guruvayoor 09 Tamarind Easy Hotel Mannarkad 10 Tamarind Easy Hotel Kondotty- Malappuram 11 Tamarind Easy Hotel Nilambr 12 Tamarind Easy Hotel Thirunelli – Wayanad 13 Tamarind Easy Hotel Kannur 14 Tamarind Easy Hotel Parasinikadavu, Mangattuparambu Source: KTDC, official records
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Table 4.3: KTDC Motels
Sl. No Name of the Hotel Location
01 Motel Aaram Kottarakara – Kollam 02 Motel Aaram Punaloor – Kollam 03 Motel Aaram Palaruvi - Kollam 04 Motel Aaram Kayamkulam – Allapuzha 05 Motel Aaram Allapuzha 06 Motel Aaram Vaikom – Kottayam 07 Motel Aaram Kumarakom – Kottayam 08 Motel Aaram Athirapally – Thrissur 09 Motel Aaram Erumayoor – Palakkad 10 Motel Aaram Kuttipuram – Malappuram 11 Motel Aaram Vadakara – Kozhikode 12 Motel Aaram Mangattuparambu – Kannur
Source: KTDC, official records
4.8.2 Restaurants and Beer Parlours
KTDC runs restaurants and restaurant cum beer parlours to give an opportunity to taste the Kerala’s Cuisine. The cuisine of Kerala is as distinctive as its cultural life. It is influenced by its long coastline, flavoured by the all-pervasive coconut, enriched with exotic fruits, vegetables and seafood and is garnished to perfection with the distinctive redolence of spices. The restaurants of KTDC also provide Chinese, Arabian and North- Indian dishes. Most of the hotels of KTDC are attached with restaurants and beer parlours. The table 4.4 shows the list of major restaurants and the table 4.5 shows the restaurant cum beer parlours of Kerala Tourism Development Corporation.
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Table 4.4: KTDC Restaurants
Sl. No Name of Restaurant Location 01 KTDC Restaurant Museum – Thiruvananthapuram 02 KTDC Restaurant Velli – Thiruvananthapuram 03 Anantha Restaurant New Delhi Source: KTDC, official records
Table 4.5: KTDC Restaurants cum Beer Parlours
Sl. Name Location District No 01 R.B.P* Karamana Thiruvananthapuram 02 R.B.P Statue Thiruvananthapuram 03 R.B.P Peyad Thiruvananthapuram 04 R.B.P Kazhakuttam Thiruvananthapuram 05 R.B.P Varkala Thiruvananthapuram 06 R.B.P Attingal Thiruvananthapuram 07 R.B.P Pullikkada Kollam 08 R.B.P Haripad Alapuzha 09 R.B.P Karukachal Kottayam 10 R.B.P Muvattupuzha Ernakulam 11 R.B.P Kalady Ernakulam 12 R.B.P Kanjikode Palakkad 13 R.B.P Koghingapara Palakkad 14 R.B.P Changaramkulam Malappuram 15 R.B.P Koyilandi Kozhikode 16 R.B.P Ramanattukara Kozhikode 17 R.B.P Payyanoor Kannur 18 R.B.P Kangangad Kasarkode Source: KTDC, official records . *R.B.P – Restaurant cum Beer Parlour
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4.8.3 Conducted Tours
The tourists reception centres of KTDC organises Conducted Tours to the most of the major attractive destinations of the State. The conducted tours includes half day and full day sightseeing trips to local places, half day and full day boat cruises and trekking and mountaineering to the nearby places to the reception centres. The generally organised conducted tours by the tourist reception centres of KTDC are given in appendix no 3.
4.8.4 Tour Packages
The most reliable tour operator and travel agent of Kerala Government, KTDC offers comprehensive Tour Packages- exclusive escapades offers holiday packages and conducted tours that are set in the premium properties of KTDC. As a pioneering tourism development corporation, KTDC has also introduced innovative concepts like Insured Holiday and Rail Holidays, which provide a complete experience of Kerala. The major Tour Packages offered by KTDC are shown in appendix no 4.
4.8.5 KTDC’s Tourism Packages for NRKs
A novel tourism promotion effort by the KTDC Hotels and Resorts is regarding non-resident Keralites (NRKs) who are spending their holidays in Kerala. KTDC would soon launch holiday packages to suit the requirements of NRKs, which would enable them to visit tourist destinations in Kerala. The packages have been conceived by including accommodation, food and travel. The packages would be available from June 1st to September 30th at the premium properties of KTDC located in Kovalam, Kumarakom, Thekkady, Munnar and Kochi. The packages would be of five to seven days’ duration and at reasonable rates. Ayurveda treatment would also be part of the packages.
Besides the packages meant for premium properties, KTDC would also offer NRKs with holiday packages to visit its Tamarind and Budget properties. These packages would also give opportunities to visit nearby tourist destinations, pilgrim centres and wildlife sanctuaries and also to go for boating wherever available.
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4.8.6 Entertainment Activities
KTDC has a remarkable job in the field of tourism entertainment. The corporation continued its endeavour to provide glimpse of Kerala culture and heritage by organising special programmes during the festival seasons throughout the State. Several cultural shows, Kathakali, Theyyam , Mohiniyatam, Thiruvathirakali, other folk dances and music, martial arts like Kalaripayattu etc. were organised during the festivals of Onam, Eid, Christmas and during national and international conferences.
4.8.7 Handloom and Handcrafts Kerala Tourism Development Corporation offers a variety of handmade domestic products namely Kerala Handlooms, Handicrafts and antiques of guaranteed quality to the domestic as well as foreign tourists at the reasonable price. The corporation takes special efforts to promote handloom and handicraft products through its various units and establishes handicraft shops at its major hotels and units.
4.8.8 Consultation Services The corporation has several consultancy services through its various like travel divisions and engineering department to share with state government and other working for the improvement of the tourism environment. This service envisages total consultancy, beginning from research to feasibility studies, to execution of entire project, for building hotels, hotel management, transport works, entertainments and publicity including advertising design and print jobs as well as audio visual aids like displays, slide presentations and film.
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4.9 KTDC’s Contribution to Tourists Inflows in the State (Survey Result)
Based on the present study the investigator conducted a simple random sample survey, with a structured questionnaire consists of only 5 items (tourist’s gender, nationality, purpose of visit, mode of the tour, facilitator of the tour package), in order to ascertain the Corporation’s contribution to tourists arrivals in the state by means of tour packages. The survey was administered in three different phases on 2279 samples selected randomly from almost the major tourist destinations in the state. The data thus collected are presented in the following tables (table 4.6 to 4.9).
Table 4.6: Gender wise Classification of Domestic and Foreign Tourists Arrivals
Gender Male Female Total
Type of Tourist No. % No. % No. %
Foreign Tourists 246 55.66 196 44.34 442 19.39 Domestic 1041 56.67 796 43.33 1837 80.61 Tourists Total 1287 56.47% 992 43.53% 2279 100 Source: Sample survey data
Table 4.7: Tourists Classification according to Purpose of Visit Valid Cumulative Purpose Frequency Percent % % Leisure 1598 70.12 70.12 70.12 Pilgrimage 189 08.29 08.29 78.41 Business 169 07.42 07.42 85.82 Visiting friends& relatives 170 07.46 07.46 93.29 Official 128 05.62 05.62 98.91 Others 25 01.10 01.10 100.00 Total 2279 100 100 100 Source: Sample survey data
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Table 4.8: Classification of Tourists Arrivals According to Mode of Tour Domestic Foreign Tourist Total Mode Tourist No. % No. % No. % Package Tours 360 79.82 91 20.18 451 19.79% Self Guided Tours 859 79.32 224 20.68 1083 47.52%
Others 618 82.95 127 17.05 745 32.69%
Total 1837 80.61 442 19.39 2279 100% Source: Sample survey data
Table 4.9: KTDC’s Contribution to Tourist Arrivals through Tour Packages
Domestic Foreign Total Facilitator Tourist Tourist No. of Tourist Percentage KTDC 38 11 49 10.86% Others 322 80 402 89.14% Total 360 91 451 100% Source: Sample survey data
The sample size of the survey was represented by 1287 males and 992 females, and 1837 Indian tourists and 442 foreign tourists (table 4.10). The table 4.11 shows that more than 70% of the tourists were visited Kerala for the purpose of leisure.
It can be intelligible from the above tables that tour packages play a vital role in attracting both the tourists, i.e. domestic and foreign, to the state. The result shows that tour packages contribute about 20% (451 out of 2279) to the total tourist arrivals in the state, among them, the contribution of the Corporation is 11 (.86 is rounded as 1) out of 100 (49 out of 451 consisting of 38 domestic and 11 foreign tourists).
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4.10 SWOT Analysis
In order to understand the strengths, weakness and opportunities of the Corporation, its structure, overall operations and marketing functions of the Corporation, it seem paramount important to have SWOT Analysis. The following are the major strengths, weaknesses, opportunities and threats of the organisation identified through the analysis.
Strengths:
• The largest hotels and resorts networks in the State. • The official host to the God’s own country. • The first Government agency to promote tourism in the State. • 45 years experience in tourism promotional efforts and tourism infrastructural developments in the State. • Very good reputation. • Worldwide recognition. • High quality Tourism Products. • Strong brand positioning (Global super brand). • Good range of quality visitor attractions offering a multitude of different tourism experiences and environments. • Good customer satisfaction ratings. • It has over 70 units located across the length and width of the state. • Large number of quality and attractive tour packages and conducted tours. • Rich cultural heritage and tradition. • High repeat visitation and customer retention. • Good communication links giving access to a large catchment area. • Tremendous government and political support. • Public support and acceptance. • Systematically organised, attractive, informative and user friendly website. • Supported with a dedicated team of employees by which the goals of the organisation can easily be achieved. • Large number of tourism information centres and tourist reception centres. • Well structured and well equipped high tech central reservation cell. • Posses highly skilled and professional managers at top level. • Large number of massage centres and houseboat accommodation facilitations. • Scientific and systematic organisation of the employees on a well designed organisational structure.
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• Local community cooperative, hospitable, kind, tourist-friendly and perceived with warmth and welcome. • Professionally skilled marketing personnel with a strong front-line sales team. • Well established distribution network with worldwide coverage. • Aggressive online and website marketing. • KTDC contributes 11.9% to the inflow tourists in the state through tour packages.
Weaknesses: • Lack of adequate number of professionally and technically skilled manpower. • Lack of proper planning and implementation of projects and plans. • Unaffordable pricing strategies for common man. • Differential pricing strategies and price discrimination. • Absence of clear and well defined policies. • Inadequate infrastructure for matching the expectations. • Lack of clarity in quality matters. • Lack of vision and mission connectivity. • Organisation does not follow a professional management system and hence efficient decision-making is not easily possible. • Proper channel of communication is not maintained within the organisation. • Absence of public relations department and officer (PRO) in the organisation structure. • Marketing efforts undertaken by the Corporation seems to be insufficient at International level. • Improper maintenance of funds may impair the functioning of the Corporation. • The centralised attitude of the superiors inside the organisation. • Employees feel that the work is mechanical and monotonous. • Lack of trained personnel in information centres. • Insufficiency of the scientific tourism development. • Poor tourism promotional strategies and techniques. • Limited number of tour packages to attract international tourists. • Level of customer care and professionalism need improvement. • Lack of serviced accommodation at highest quality level; i.e. five star hotel accommodation. • Insufficient funds for tourism promotion and infrastructure developments.
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Opportunities: • Tourism is one of the fastest growing industries in the world with new products in its arson, which is becoming more and more popular and entering into new and existing markets by offering new opportunities. • The awareness and attitude of people towards tourism is very much conductive to the growth of the tourism industry in the State and development of the Corporation. • The State’s special features like high literacy rate, high life expectancy, high position in human development index etc. offers sufficient opportunities for the development of KTDC. • Vast and untapped potential on heritage tourism, backwater tourism, beach tourism, eco-friendly tourism, health tourism, farm tourism and pilgrimage tourism etc. • Brand image of God’s Own Country for achieving the targeted high spending tourists. • Tourism policy issued by the state provides opportunities for the development of the corporation by inviting private investments which may result in the rapid growth of the industry. • The Corporation has well-qualified and experienced human resources which can be effectively utilised for tapping the opportunities. • The promotion of eco-tourism, farm tourism, hill station tourism, Ayurveda tourism and backwater tourism. • The existence of available areas for investments. • The ability of the Corporation to appeal to the various market segments by providing accommodation, packages, products and services in order to compete effectively with other organisations. • Growing interest in local distinctiveness, packages, accommodation and attractions, which have not become over-developed. • The competitiveness of the Corporation in terms of value based quality delivered for the price paid by the visitor; and the marketing effectiveness in attracting visitors to the products and services offered by the Corporation. • Partnerships with private industry, government and stakeholders. • Development of the new infrastructures and wayside amenities. • Increasing opportunities for Ayurveda Packages. • Opportunities for restaurants and beer parlours. • Transportation facilities by improved air connectivity with the introduction of low-cost airlines. • Development of activity based tourism. • Development of more five star hotels and other forms of accommodation.
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Threats:
• Competition from the private sector. • Various social organisations do not support tourism development due to the fear that it will disturb the environmental balance and cultural heritage of the State. • Existence of unethical traders and unlicensed agencies in and around tourism centres. • Undesirable attitude of public towards tourism. • Exploitation of natural resources, environmental pollution, ecological hazards and cultural degradation etc. • Changes in the economic policies by the Government adversely affect the tourism industry in the State. • Customs, culture and tradition of tourists. • Seasonal changes and demands. • Unplanned growth. • Environmental pollution caused by backwater tourism. • Quality concerns in health tourism services especially Ayurveda packages. • Product development pattern in the recent past are against the principles of sustainable tourism development. • Political instability, safety and security situation. • Lack of resources compared with some competing private agencies. • Failure to keep abreast of IT developments in marketing communications. • Relying on government input and funding. • Government involvement in the development of new plans and projects.
4.11 Tenability of Hypotheses and Conclusion
This chapter analysed the working structure and overall operations of KTDC in relation to its marketing operations and functions through a SWOT analysis. The analysis shows that the Corporation has a systematic organisational structure with a very good marketing department to undertake the tourism marketing functions and promotional efforts in the state. Even though, the absence of a public relations department or officer is a serious drawback in the organisational structure of the Corporation, the Guest Relations Assistants undertake the duty of this department. Although KTDC is mainly concerned with the business of hotels and resorts, the analysis of the overall operations reveals that it is also concerned with the promotion and marketing of varied attractive tour packages along with the
160 entertainment activities, handlooms and handicraft promotions, consultation services, organisation of conducted tour and development of wayside amenities in the state.
Therefore, it can be concluded from the above analytical evaluations that KTDC has a very systematically organised working structure in order to carry out the promotional efforts and marketing operations for its varied tourism products and services. Thus on this background the ‘Null Hypothesis no. 1’ that ‘the working structure and overall operations of Kerala Tourism Development Corporation is unsystematic to realise the objectives of tourism marketing’ was rejected and the alternative hypothesis has been accepted, and the study tells that KTDC has a proper organisational and working structure for carrying out marketing operations for its varied tour packages and other tourist’s products and services.
Similarly, the result of the sample survey based on simple random method shows that tour packages contribute about 20% (451 out of 2279) to the total tourist inflows in the State, among them 11 out of 100 are contributed (10.86%) by KTDC’s own tour packages. Therefore, it can be rightly said from this results that KTDC is one of the major contributors to the tourist inflows in Kerala State by way of tour packages and thus it has become as a leading commercial organisation to influence greatly the tourism developments in the State. Hence the ‘Null Hypothesis no.2’ that ‘KTDC’s contribution to the inflows of tourist in Kerala State by way of tour packages is insignificant’ was rejected and the alternative hypothesis has been accepted.
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References
1. Unpublished reports, Kerala Tourism Development Corporation 2. Ibid. 3. Unpublished Project Reports of KTDC undertaken by different scholars 4. Official Records of Kerala Tourism Development Corporation 5. Ibid. 6. Gilligan, C., & Wilson, R. M. S. (2003). Strategic marketing planning. Oxford: Butterworth- Heinemann, p.3 7. Kotler, et al. (2003). Marketing management. New Delhi: Prentice Hall of India 8. Fyall, A., & Brain, G. (2006) Tourism marketing: A collaborative approach . New Delhi: Viva Books
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Figure 4.2: Working Structure of Kerala Tourism Development Corporation (KTDC)
CHAIRMAN
MANAGING DIRECTOR Secretary & Finance Controller Office
Commercial Commercial Marketing Personnel Chief Corp. C A O Manager Manager -1 Manager -2 Manager Officer Engineer Training
Accounts Dy. Manager System Regional Regional Regional Dy. Manager Officer Manager Manager Manager Personnel Analyst Marketing North Central South PRJT PRJT PRJT Supdnt Engr . 1 Engr . 2 Engr . 3 Faculties (Admn ) Sr. Supdnt Supdnt. Supdnt. Supdnt. Office (Admn) Supdnt
Accounts Accounts Accounts Accounts & Admn & Admn & Admn Hardware Jr. Dy. Mgr &Software Manager Supdnt Jr. Supdt (Mech) Trainees Senior Senior Senior CRC & Jr. Supdt Senior (P&A) A/Ctnt & A/Ctnt & A/Ctnt & Office (H R) Accountant Jr. Supdt Jr. Supdt Jr. Supdt Sr. Office Sr. Office Sr. Office Engineers Electrician Other Assistant TRCs Accountant Accountant Accountant Assistant Assistant Staff Accountant Tvm & Sr. Office & Sr. Office & Sr. Office Kochi Assistant Assistant Assistant Chennai Office Office Maintenance Other Office New Delhi Assistant Assistant Overseas Staff Staff Assistant Other s Other s Other s Source : Kerala Tourism Development Corporation. Note: Commercial Manager 1 for Premium & Budget Hotels, Commercial Manager 2 for Medium, Small Size Units & Others. CAO: Chief Accounts Officer, Supdnt: Superintendent, Admn: Administration, Dy: Deputy, Jr. Junior, Sr. Senior, A/Ctnt: Accountant, Tvm: Trivandrum HR: Human Resources, P&A: Personnel and Administrative, PRJT: Project, Engr: Engineer, Mech: Mechanical
135 CHAPTER - 5 Marketing Strategies of Tour Packages in Kerala with Special Reference to KTDC: Analysis and Evaluation
Tour Package is a newer method of destination marketing in worldwide and is one of the means which enable tourists to enjoy destinations and other tourism resources at lower prices. Tour Packages contributed far and away to the unexpected growth of the global and domestic tourism industries. The fastest growing tourist state in India, Kerala is recognised as a pioneer and trendsetter in the country and is now the number one upscale tourist destination due to the surge of tour packages and the other means of promotional efforts undertaken by the State Government, Department of Tourism, KTDC and other private sector groups and agencies. KTDC, the Government agency with largest hotel networks in Kerala, offers variety of tour packages to tourists to promote and market tourism resources and bring up the state to the foremost tourist destinations in Asia and the world as well. The Corporation has been formulating and implementing several promotional and marketing strategies for tour packages. For the accomplishment of the objectives of the present study, the investigator made an earnest attempt to analyse and evaluate strategies adopted by KTDC for marketing tour packages in the State through the present chapter.
In accordance with the marketing plans and policies adopted by KTDC for the development, promotion and marketing of tour packages, the present study will analyse these plans and policies systematically with special emphasis on what has been done, or what is in future prospects and what measures should be adopted for better results. This will be examined on the basis of the seven parameters (7 Ps) of marketing mix namely, product, price, place, promotion, people, process and physical evidence. There after evaluation of these marketing strategies will be made by applying the various approaches of marketing strategies such as product/consumer oriented approach, price/ competitor oriented approach, distribution/trade oriented approach and promotion/communication oriented approach.
5.1 Marketing Mix Perspective Analysis of Tour Packages
The marketing mix perspective analysis of tour packages consists of product perspective analysis, price perspective analysis, place/distribution perspective analysis, promotion perspective analysis, people perspective analysis, process perspective analysis and physical evidence perspective analysis.
5.1.1 Product Perspective Analysis
Existence of a product is the basic prerequisite for implementing marketing function and product development is an important aspect of the strategic marketing process. The product component of marketing mix analysis is the tour packages of Kerala Tourism Development Corporation. The product perspective analysis remains to be ascertained; what are the different packages offered by the Corporation, how far these packages have been developed and what criterion they followed to develop these packages. The investigator will try to find out the answers to these questions in this session.
The myriad resource potentials of Kerala Tourism Industry make the tour operators in the State capable to develop and market innumerable number of varied tour packages. Certain form of tourism in the state being identified as most potential areas or attractions for designing tour packages. These include Nature Tourism, Pilgrimage or Religious Tourism, Health Tourism, Culture and traditional tourism, Heritage Tourism, Eco-Tourism, Adventure Tourism, Sports Tourism and Rural Tourism.
The Nature Tourism has always remained the backbone of tour packages in Kerala. The beautiful backwaters, beaches, waterfalls, hill stations, vegetations with wildlife and an abundance of flora and fauna etc. make the state an ideal destination for nature lovers. The Kerala is especially popular in the world for Health Tourism, Ayurveda is the main health conscious tourism in state which brings much foreign exchange to the country and Kerala is the only place in the World where the ancient form of science and the holistic system of medicine based on nature is practiced
164 with its perfection. The culture and traditions of Kerala include folk-lore, performing arts (Kathakali, Koodiyattam, Mohiniyattom, Thullal, Theyyam etc.), martial arts ( Kalaripayattu ), Kerala cuisines and festivals ( Onam, Poorams, Elephant Pageants etc). A trip through the backwaters in Kettuvalloms (Houseboat) is an indispensible part of any standard tour packages in the State as it gives an exotic experience for tourists. The historical monuments and buildings having architectural and cultural importance are the main ingredients of Kerala heritage tourism packages. Being the most eco-friendly state of India, eco-tourism resources play a crucial role in designing tour packages for adventure and nature lovers.
One of the most famous pilgrim centres in India, Sabarimala is situated on the mountain ranges of the Western Ghats at Pathanamthitta District in Kerala, which attracts thousands of pilgrims to the State by means of pilgrim packages in every year. The adventure seekers and sports lovers have a plenty of opportunities to feel and experience the zeal of adventure by climbing the high peaks in the state. Boat races and trekking are the important means of sports tourism in the State. This amplitude of resources have been utilised by KTDC and other tour operators to design varied tour packages in the state.
The product perspective analysis of the tour packages of Kerala Tourism Development Corporation reveals that, the corporation has been designing and marketing a number of tour packages such as Backwater tour packages, Beach tour, Hill Station Packages, Ayurveda Packages, Houseboat Packages, Honeymoon packages, Vacation packages, Family packages, Seasonal Packages, Deluxe tours, and Budget and Super Budget packages. In addition to these, the Organisation organises conducted tours to local places like Thiruvananthapuram, Kollam, Alapuzha, Kumarakom, Kovalam, Cochin, Kanyakumari, Thekkady etc. and home stay packages at its properties all over the state. Moreover KTDC makes timely modifications of packages in various seasons and adds new packages to the existing mix of packages as per the market demands.
Some of the major tour packages which KTDC offered during the period 2009 - 2010 are Island holiday packages, Mystic holiday packages, Summer packages, Monsoon packages, Coast and Cruise packages, Periyar Eco-Tourism packages,
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Jungle holiday packages, Jungle Monsoon packages, Discover Kerala Monsoon Premium packages, Discover Kerala Budget Holiday packages, Utharayanam (Northern) packages, Dakshinayanam (Southern) packages, Sundara Keralam (Beautiful Kerala) packages. The latest seasonal packages of KTDC ‘Monsoon 2009-10’ include; Package-1 (4 nights /5 days) to Kochi - Munnar & Kumarakom, Package-2 (5nights/ 6days) to Kochi - Munnar - Thekkady & Kumarakom and Package-3 (7nights/ 8days) to Kochi- Munnar- Thekkady- Kumarakom- Kovalam & Thrivandrum. Each package includes Transportation, Accommodation/ lodging KTDC resorts/ hotels, Sightseeing, Transfers, Breakfast, Lunch and Dinner, Boating etc.
Beyond these wide range of readymade packages, KTDC has been constantly shown its willingness to accept and shoulder the demands of tourists by designing packages or trips to almost all destinations in the State in tune with the needs and expectations of customers. Suppose a customer wants Ayurvedic Massage and Houseboat cruise in addition to the attractions and services included in a package, the Corporation would modify the package by adding the additional components demanded by the tourist.
In order to attract health conscious tourists, KTDC offers Seasonal Ayurveda packages consists of Rejuvenation Therapy ( Rasayana Chikilsa - Duration: 1hour 30 minutes a day for 7 or 14 days), Body Immunization / Longevity Treatment ( Kayakalpa Chikilsa - 1 ½ hour a day for 7 or 14 days), Body Seudation (1 hour a day for 7 days), Body Slimming (1 hour a day for 7 days) and Panchakarma (2 hours a day for 7 or 14 days) for both international and domestic visitors at its major resorts and Ayurveda centres.
It can be understand from the product perspective analysis that KTDC has been concentrating mainly on the nature based tour packages such as beach tours, backwater packages, hill station tours, forest and wildlife packages, backwater cruise and houseboat packages. Because Kerala is one of such rare destinations in Asia where the best nature based abounding tourism resource are available. Besides these packages, the Corporation has been given purposeful focus on the development of assorted and distinctive Ayurveda packages with the specific aim
166 of attracting foreign tourists into the State in varied seasons. Similarly the product mix of KTDC has given worthwhile prominence in designing seasonal group and independent Ayurveda packages for domestic as well as foreign tourists.
Although it may seem prudent in normal situations that a number of diversified packages have been designed and modified for foreign and domestic visitors, KTDC has simply failed to consider adventure and sports lovers by developing tour packages as per their tastes and preferences and thus completely neglected the Youth segment of the tourism market. Even Kerala is the state of temples, churches, mosques and other important holy centres like Sabarimala, Guruvayur etc. unfortunately KTDC has not been given any place or importance for pilgrimage packages in its product mix except the conducted tours to the holy centres such as Sabarimala, Guruvayur etc.
The Corporation has been given special focus to maintain quality services and tour packages to the tourists. KTDC has never faced difficulty in maintaining quality of its services and tour packages since it has more than 60 high quality accommodation units located at exotic theme locales across the State, large number of A/C and non-A/C Kettuvallams (Houseboats) and speed boats, plenty of Ayurveda centres, restaurants and beer parlours, own transportation services and professionally skilled and experienced human resources etc. The Corporation never compromised with its quality matters.
Even then Kerala is plentiful with tourism resources, KTDC seldom failed to utilise such resources completely to develop packages in tune with the tastes, preferences, likes and dislikes, expectations of tourists especially in developing adventure, sports and pilgrimage packages. Therefore, before going for the development, modification or diversification of any tour packages, the Corporation must have a thorough knowledge of the prevailing market conditions and as much they must emphatically be able to answer questions like: who are the customers; their country, region or state of origin; their social class, educational background and life style; amount of disposable income available with them for travel; most appropriate time of their visit; their age-group, gender and marital status; their motivations, likes and dislikes; their package preferences etc.
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In Kerala KTDC has tried its best to exercise properly such plans and policies in developing tour packages. But, sometimes the development and diversification of many of the packages were made without any answers to the above mentioned questions. Such a kind of flawed attitude is harmful and the policy thus formulated to design packages is bound to flop. Thus devising packages without having proper classification of the target market is in no way advantageous for the overall development of the tourism products of the Organisation and of the State as well.
However, the product perspective analysis of KTDC shows that it has been succeeded in utilising the absolute tourism resources of the State in developing, differentiating, diversifying and specialising utmost tour packages, and maintaining higher level quality for tour packages and other services related with tour packaging. Along with a diversified group of various handsome tour packages to attract almost all segments of tourists, the Corporation has been designing and marketing differentiated packages with the special intention to attract a particular tourist group or segment such as honeymooners, health conscious tourists, nature lovers, foreigners, non-Keralites etc.
5.1.2 Price Perspective Analysis
In the tourism industry Pricing is an area where government has no or very little control. Although the department of tourism acts as a regulatory body in pricing decisions but pricing is an area that falls beyond the scope of regulatory mechanism. However in the recent times globalization and liberalization pattern have revolutionized the pricing systems and today consumer is stated to be the king. It has lead to the entry of more and more players into the market which has influenced the consumer, which in this case is the tourist who got a greater bargain when it comes to pricing a product. Pricing is particularly important in the tourism context because high degree of product intangibility often reduces the number of alternative available for comparison by customers. The pricing of tourism products also has to take into account the complexity created by seasonality of demand and the inherent perishability of the product.
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Pricing is absolute parameter that plays a vital role in determining the number of tourists purchasing a particular product or tourist inflow to a tourist destination. It remains at the back of all motivational factors and ultimately prevails as one of the crucial factors in the buying decision making process. It is on the basis of price of tour packages that helps tourists to decide upon their choice for a tour package. Generally price of a tour or holiday package consists of: • Transportation Cost • Accommodation cost • Resort or hotel agent’s handling charges • Transfer cost (from terminal to hotels to tourist spot) • Food and refreshment expenses (if itinerary specifically mention) • Cost of sightseeing and entertainment facilities • Gratuities, porterage etc • Make up for agencies services • Marketing Cost, (brochures, ticket, wallets) etc. • Office administrative cost, and • Profit
When it comes to determining the price a number of options exist. The key approaches to pricing for tour package are high pricing, differential or demand based pricing, cost-plus pricing, Price-bundling, Tactical pricing etc.
The tour package in Kerala are pricing comparatively higher rates since the state has ranked among the top most Indian states in terms of higher cost of living. Transportation system and hotels in the state are too costly. Since the ingredients of a tour package are mainly accommodation, attractions and transportation etc, KTDC also compelled to charge a higher price for its tour packages. Generally the Corporation is charging higher costs for its tour packages, hotels and other services compared to other organisations and tour operators. For example the 8 day seasonal package of KTDC charges Rs. 48565 for 2 persons. While the same package is offered by other two tour operators for Rs.40500 and Rs.38750. All these three packages include the same destinations, the same range of transportation and accommodation facilities.
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KTDC is also plagued by the dual/ differential pricing mechanism. The same types of packages and products have been charged differently from foreigners and Indian tourists. Most of KTDC holiday packages, hotels and resorts in Kerala have a dual tariff system with dollar tariff for foreigners and INR tariff for Indians. The pricing policies for Ayurveda and Houseboat Cruise packages of KTDC towards foreigners and Indians are the best example. The dollar tariff is always much higher than the Indian tariff and a huge difference is marked when dollar tariff is converted into Indian Rupees. The dual price technique was also exercised in season based packages. During the period of season the tourists will be charged high price but in off-season the same package will be sold for a low price to the same type of customers.
Seldom KTDC adopts Price-bundling approach to certain tour packages such as budget holiday packages, student packages, family packages and other tailor made packages. By adopting this typical approach KTDC decides the price of a package in accordance with the contents of the package (normally transportation, accommodation, attractions etc.) where one combined price is charged from the clients. In short-term situations and seasons KTDC often exercises tactical pricing measures which include a number of techniques like periodic price reductions, early booking discounts, group discounts to secure high volume and loyalty packages etc. During the off-seasons KTDC offers price discounts for certain packages such as Mystic Hill packages, Ayurveda Packages, House Boat Cruise, Natural Backwater packages, Coast and Cruise packages, Beach Holiday packages etc. and prepares special offer tariff for its homestay packages during the monsoon.
Sometimes the Corporation fixes its tariff for packages on the basis of demand and season. Basically there are three seasons in Kerala i.e. Peak Season, Moderate Season and Off-Season. Peak Season starts from 15 th December to 15 th January; the tariff will be high during this season. The tariff for Moderate Season, which is starting from 1 st October to 14 th December and 16 th January to 30 th may, will be an average. A normal rate will be charged during the Off-Season which is starting from 1 st June to 30 th September.
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While examining the overall pricing policies and decisions, it is very decisively interpret that KTDC has been setting highest possible prices for its tour packages and conducted tours. It can be elucidated by making comparisons between the prices of KTDC offered packages and the prices of other tour operators who have the same or almost similar packages. Due to the higher price setting policies tourists having price considerations often hesitate to approach KTDC for its packages and services, consequently they may persuade to opt and accept the services of other tour operators or agencies. But certain tourists who give weightage to quality concerns always prefer to be with KTDC’s packages and services. Along with high pricing strategy KTDC also practices dual pricing, seasonal or demand oriented pricing, price bundling and tactical pricing strategies for tour packages.
5.1.3 Place/ Distribution Perspective Analysis
Place in essence is a relational term and it is a form of distribution network. In the tourism context, Godfrey and Clarke (2000) define the place element of the marketing mix as routes of exchange through which a tourist accesses, books, confirms and pays for a tourism product 1. An effective distribution of the tourism products is carried out through different considerations that involve policy matters as regarding the accessibility, local channels of distribution and distribution coverage area. However a tour package distribution channel usually consists of tour operators and brokers, travel agents and tourists.
An analysis of the current business practices in the travel industry will outline four types of sales distribution systems: one stage system, two-stage system, three-stage system and the four-stage system.
The one stage system provides sales from primary suppliers of tour packages. Here the tour operator directly selling a holiday package to clients through its own sales and reservation departments. The two-stage system involves a single middleman, for example, the travel agent between the tour operator and tourist. The three-stage system involved two middlemen, usually a retail travel agent and a wholesaler. A four-stage system is like the three-stage distribution system except that it has an additional middleman, generally a speciality channeller involved in the
171 development of a tour package. For instance, if a university decides to send a tour from India to Singapore, their office of overseas studies may also come into the picture. The middlemen in the distribution of tour packages, therefore, are travel agents, wholesale and retail tour-operators, and speciality channellers.
A tour package consists essentially of transportation, accommodation and attractions both natural and manmade. The producers of tourism services include air, rail, road and sea carriers; hotels, motels, guest houses and other forms of accommodations; and various attractions both natural and man-made designed to attract the visitors. Supplier puts together all these services and resources into a package and distributes them through various means of channels such as tour operators and brokers, travel agents etc.
The transportation component of packages has been made available to its clients by KTDC itself directly, through the Government or private travel agencies or brokers. The good net work of road ways and railways in Kerala and the three international air ports at Trivandrum, Cochin and Calicut are helpful to reach the tourists to his/her destination easily. To provide better facilities for sight-seeing and enjoying the locales most of these destinations are being equipped with proper and necessary features so as to meet the demands of the visiting tourists. For this purpose Kerala Tourism Development Corporation has established its several Units at all important tourist destinations. These units provide accommodation, food and other necessary services. Moreover the Organisation has set up cafeterias and Tamarind Easy Hotels at different places throughout the highways leading to important tourist destinations or for that matter on the national highways to Trivandrum to Kasaragod. Beyond these units, the marketing agencies, marketing executives, general sales agents and KTDC’s own sales department actively involved in reaching tour packages and services of the Corporation to tourists.
The distribution of Tour Packages of KTDC is being carried out through the Marketing and Sales Division, Tourist Reception Centres, District Tourism Promotion Councils, Marketing Executives, Marketing Agents and General sales agents. For the proper and effective distribution mechanism KTDC have established a number of offices and help desks within and outside the state and
172 country. The Corporation has more than 60 accommodation units at almost all the major tourist destinations across the state. For a wide distribution coverage area it has set up offices in all the major cities of the country like Chennai, Delhi, Mumbai, Bangalore, Kolkata, Ahmadabad, Goa, Chandigarh etc.
The Central Reservation Cell in Trivandrum and Tourist Reception Centres in Trivandrum, Cochin, Chennai and New Delhi are playing a significant role in the distribution of tour packages. In order to provide the best available packages and facility to the customers the CRC facility is available at any time. The Marketing Executives of the Organisation will go for a direct marketing with the Chief Officials of different organisations and provide them with suitable tour packages.
In addition to these units and offices, distribution of the tour packages is also carried out through various travel agencies and tour operators spread across the length and breadth of the country. Travel Agents are the primary sources, through which KTDC is being able to receive inbound and outbound customers at different locations of the state. A sub agent group is also working under the personnel sales agents in order to provide a clear guidance to the customers. Some multinational tourist organisations have also been vowed to carry out the distribution works. Beyond the Travel Agents KTDC has a number of Domestic Marketing Agents in almost all major cities in India and International Marketing Agents including UK, Germany, USA, Italy, Norway, UAE, Oman and Muscat for the distribution and promotion of its tourism products and packages 2.
The online marketing is another innovative strategy which KTDC has been adopted for distributing its tour packages directly to tourists. This has been carried out through the website of the Corporation and central reservation cell. Through this distribution strategy the tourists can directly contact with the Organisation and can opt packages as per his/her tastes and preferences.
KTDC has given focus on directing marketing techniques and has often depended on marketing agencies and tour operator. But the Corporation is commonly utilising the services of both government approved and private travel agencies for booking transport facilities. The services of guides private as well as government have been
173 utilising in distributing the tour packages and services to the tourists. Sometimes KTDC has received tourists as ‘Walk in Customers’ – the people who are not exactly guided by an agent or through direct marketing. They choose their destination or locale as they wish.
In its long history of Tourism services, KTDC has failed to take cognizance of its counterparts and as such no productive change can be visualised in terms of the accessibility, distribution network and distribution coverage area. Over the 40 years of experience in planned tourism products development such as designing and developing tour packages in the state, the distribution network of KTDC shows limited coverage area. Still there exist a number of states (Jharkhand, Uttaranchal, Orissa, Bihar, Jammu and Kashmir, Punjab, Haryana, Assam, etc) and cities (Agra, Bhopal, Shimla, Darjeeling, Jaipur, Hyderabad, Amthaser, etc) in the country, where KTDC could not establish its tourist information centres, units or marketing agent. The tourists from such states have to either contact their private tour operators and agents from their location or the KTDC Office/ reception centres in Kerala or in other states. The technologically illiterate tourists do not have any channel to contact with the KTDC offices or units, until and unless the Corporation establish a well distribution network within the country and outside.
5.1.4 Promotion Perspective Analysis
It is true that among the elements of the marketing mix, it is the role played by promotion that has been instrumental to the growth of modern tourism. As with all elements of the marketing mix, however, integration with the other elements is imperative for success. This is also true in the case of marketing communications, which represents the promotional element of the marketing mix.
Promotion of the tourist product is carried out through various means such as advertising, personal selling, sales promotion, publicity and public relations. All these aspects of the promotional perspective play a vital role in the overall performance of the industry. These aspects are so intermingled with each other that it is often very difficult to distinguish between them.
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The promotional efforts of KTDC have been carried out through the Marketing Department. The Marketing Department undertakes the marketing and promotional activities of the Corporation through various means. For the marketing campaigns of tourism products in the state Kerala Tourism Development Corporation has many slogans such as: ‘Official Host to God’s Own Country’
The slogan ‘God’s Own Country’ was first used in the context of Kerala Tourism in South India when the first webpage on Kerala tourism created in 1993 3. Later KTDC has been using this as its brand to conduct and regulate the tourism prospects of Kerala by adding the phrase ‘Official Host to’. The slogan now holds Global Super Brand status. In addition to this, KTDC has been followed by many slogans in marketing the tourism products in the State. Some of them are:
‘Ten Paradises of the World’ (by the National Geographic Traveller)
‘One of the Fifty Must See Destination of a Life Time’ (By National Geographic Traveller after Two Years of Research)
‘One of the Hundred Great Trips for the 21 st Century’ (by Travel and Leisure)
‘One of the Ten Hot Spots for the Millennium’ (By Emirates in Flight Magazine)
‘One of the Ten Love Nests in India’ (By Cosmopolitan)
KTDC has been undertaken extensive advertising campaigns, with all these and many more other slogans, for its varied products and packages in order to promote tourism in the state. Tour Broachers are available at all its units and tourist information centres throughout the state. These broachers give firsthand information about the packages and destinations, which encompasses all facts about the tour packages including places to see, where to stay, how to reach and what kind of activities to enjoy.
Another important publicity document for a package tour is Itinerary, as it contains details of a particular package such as the places and attractions to visit, hotels and
175 resorts to stay, mode of transportation, number of days (number of days and nights), date and time of visit, price of the package, all other information and schedule of the programmes. In addition to broachers and itineraries the publicity materials include maps, photo-cards and small but well informative booklets. Photographic exhibitions highlighting the natural and scenic beauty are proving to be successful promotional tools for natural based packages.
Another important medium used by KTDC for the promotion of the tour packages is its own Web Sites (Figure 5.1) and other Internet facilities, which yield very good result by increasing the inflow of both foreign and domestic tourists in the state. Mass media is also used for the promotion of KTDC tourism products. Advertising campaigns are carried out in leading newspapers, magazines and electronic media. Use of information technology, by way of production of films through CD ROMs and multimedia technology, has added another feather to the promotional process of KTDC. As an innovative technique KTDC has adopted mobile technology marketing through SMSs and MMs for local level promotion of tour packages. The SMSs and MMSs are enough capable to disseminate information about the newly added packages and products of KTDC through the small pictures and texts. Figure 5.1: KTDC Website Home page
Source: www.ktdc.com
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KTDC conducts road shows, Grand Kerala Tourism and Shopping Festivals and exhibitions during festivals and other occasions as a means of tourism promotion techniques in the state. The Corporation is a regular participant in International fair like International Trade fair held at Pragathi Maidan, New Delhi, ILTM France, FITUR- Spain, TTG Rimini, International Tourism Borse (ITB) Berlin, World Travel Mart (WTM) London and ATM Dubai etc. and national fairs such as Travel and Tourism Fair Bangaloru, Chennai, Kolkata; India International Travel Mart- Mumbai, India International Trade Fair- New Delhi and South Asia Travel and Tourism Exchange- New Delhi etc 4. KTDC has implemented a year-long umbrella package campaign called ‘Visit Kerala Year 2009’ for no-resident Keralites from January 20 th , 2009 with the aim of wooing more domestic tourists to the state by focusing on Tier-II cities 5.
KTDC is promoting tour packages mainly through its own website, other internet sources, and advertisements through mass media and publicity documents. Advertising through the print and visual Medias helps in furnishing the information to the tourists and also helps in simplifies the process of information about their tour packages and hotels. Publicity is the most powerful technique for marketing of any tourist product. KTDC with its brand name and brand mark is promoting the most favourable and beautiful image through different hoardings which helps to identify the memorable, likeable, adaptable and protectable features of the Organisation in the minds of tourists.
Although Kerala Tourism Development Corporation has been carried out various promotional efforts efficiently by adopting all possible and available methods and techniques, they were not much effective in yielding result as expected by the organisation.
5.1.5 People Perspective Analysis
The people element of the marketing mix is significant because this aspect of the marketing contributes mostly to the variability of the tourism product in respect of service-encounter. This applies to the interaction and relationships between visitors or tourists, employees of tourism organisations and the host community/ the local
177 residents. Interactions and relationships between these three ‘people’ group will impact significantly on the quality of packages/ destinations and the level of product satisfaction experienced by the visitor, the satisfaction of employees and the degree to which tourism is either accepted or rejected in the host destination.
In tour package the tour operator and its interaction with tourist is a unique experience that is influenced by a large number of often unpredictable ‘human element’ factors. These include the mood and expectations of each participant at the particular time during which the service encounter takes place. A tourist in a restaurant, for example, may be completely relaxed, expecting that every whim will be satisfied, while the attending waiter may have high level of stress from overwork and expect the customer to be more reasonable in their demands. Such expectation incongruities are extremely common in tour package, given the tourist’s perception of this experience as a special out-of-the-ordinary (and expensive) occasion, and the waiters view that this is just a routine experience associated with the job.
The tour operator’s problem in this regard is that these incongruities can lead to unpleasant and unsatisfying encounters, and a consequent reduction in customer satisfaction level and deteriorating local attitudes towards tourists. Often, just one such experience can sour a tourist’s view about a particular package or destination, offsetting a very large number of entirely satisfactory experiences during the same package.
The importance of fostering tourist sensitivity and awareness was also stressed because of the inappropriate behaviour of a tourist can reduce the service quality of the tour package for all participants. For many tour packages, the local residents also fall into the ingredients of a package, since tourists may be attracted by the culture and hospitality of the resident population. In such cases the Corporation conducts tourism awareness programmes and campaigns to aware of the need of tourism developments among the local people
The people element of KTDC’s marketing mix for tour packages subsumes its employees, tourists and the various service providers such as hoteliers, transportation facilitators, and sightseeing guides. The employees in the
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Organisation always take maximum care while interacting with its clients as they try to provide best services, utmost support and assistance in order to enhance maximum satisfaction to the visitors. The production and consumption of tourist services both occur at the same time and place and are inseparable, the organisation has to be very conscious and vigilant about the moods and expectations of the tourist. KTDC has been facilitating trained and expert people’s services in its all packages. It has been providing very good services in accommodating, transporting and sightseeing the tourists.
KTDC has been constantly showing its interest to provide unbounded services and utmost facilities to clients in order to maintain the quality of packages through which the tourists can entertain at a higher level of satisfaction. With this purpose, KTDC has been providing exclusive training facilities to its employees in order to enhance the hospitality skills. Similarly the Corporation has been taking special care in recruiting trained, professionally skilled and experienced employees for its hotels and resorts. Consequently a large number of tourists both foreign and domestic, are opting KTDC packages and properties to degust the attractions in the God’s Own Country.
Pertinent to the fact that people at the different destinations of Kerala are very hospitable and skilful in interacting with the tourists, their participation in the constant increase of the tourism products in the State is of paramount importance. The participation of local communities in tourism development remains a challenge with the tourism organisations and tour operators. This has been strongly associated with the growth and development of natural based tour packages in the state. These two characteristics make the people of Kerala an important instrument in the growth and development of tour packages in the State. This has encouraged the Corporation to design and develop innumerable number of tour packages and to engage an uninterrupted and unchallenged tourism trade in the State.
Although KTDC has been very vigilant in managing the people element of the marketing mix in order to provide quality services, it has often confronted with problems and complaints, because of the semi skilled and unskilled employees, in dealing with clients/ tourists. Still more than half of the employees in the
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Organisation are either semi-skilled or unskilled. The trained employees also, sometimes, show their failure, because of flagging or unwillingness to serve tourists in tune with their moods and expectations.
The inappropriate behaviour of tourists seldom reduces the quality of the packages for all other participants in a particular tour. For many packages or destinations, the unfavourable attitude of the local residents also affected the packages badly, since tourists were attracted that particular package by the culture, tradition and hospitality of the resident population.
However, the overall performance of the people element in tour packages of KTDC shows very good performance. This adds more attraction and satisfaction to the tourists in the tour packages of the Organisation.
5.1.6 Process Perspective Analysis
The tourism experience is highly dependent on the quality of service delivery as perceived by the user. In most instances, this will involve the process element of the marketing mix. It has emerged as one of the very important P’s of tourism marketing mix as it accentuates such characteristics that have a incorporating effect on the overall tourism marketing planning process. It compiles all the characters in such a manner that their knowledge becomes essential in deciding about the planning process. In fact it is the study of all those procedural implications that are adopted in running the affairs of tourism marketing.
The process element is frequently instrumental in the final delivery of the service encounter. The process in tour packages marketing includes trip planning and anticipation, travel to the site/ area, recollection, booking of hotels and trip planning packages etc. The trip planning include, maps, attractions en route and on site, information regarding lodging, food, quality souvenirs and mementoes.
The process element in Package Tour is the complete planning of the contents and events of a tour package from its idea generation to delivery of service/ experience. This include designing of package, booking system, payment system, visitor-flow techniques, delivery of services, planning for accommodation, booking of hotels,
180 transportation, sightseeing facilities and after sales services. The planning of a package includes the selection of a particular destination; estimation of time available with the visitor; planning, designing and developing a suitable package to the selected destination in tune with the availability of time; planning where to accommodate, means of transportation, availability of food, sightseeing spots and entertainment programmes; estimation of the cost and deciding pricing policies; preparation of tour itinerary and tour broacher, and how to deliver the package or experience with utmost satisfaction.
Generally, KTDC has been offering varied readymade packages that are planned and designed in advance by adding the inseparable element required for a particular package. It has also been, very often, developing tailor made tour packages on demand of tourists. While planning such packages, it has been taking special care to include best destinations, attractions and entertainment programmes to provide utmost satisfaction to the tourists. By going through the different packages already designed, the tourist may opts a particular package or demands to design a new package in accordance with his taste and preferences.
A tour package is the combination of several tourism products or services. When a tour package is developed, it means that has made many interlinks between several groups such as hoteliers, airlines, railway, travel agents and tour operators, restaurateur etc. When it sells, it makes interconnections between several processes as it is lengthy; it requires the conscious efforts, services and co-operations of all these interlinked parties such as airlines, hoteliers, travel agents etc to complete the selling process successfully.
In this regard the Marketing Department of KTDC is playing a very significant role in process of planning and delivering tour packages to its ultimate customer. The marketing department provides necessary information about the plans, policies and procedures for the marketing of tour packages. When KTDC deals with a foreign tourist, the travel division of the marketing department has to be undertaken the procedures required for issuing and stamping of visa, clearance of other documents required for international travel, reservation of air tickets, arrangements for local transportation and accommodation. As a part of this exercise the complete details of
181 the tourists must be collected and maintained which are important in the planning process of a tour package. The entry and exit of the all international tourists have to be registered, which will give a clear cut idea about the nationality, age-group and gender of the tourist. This will be helpful in maintaining the statistics of the international tourists.
KTDC holds a pioneering position in terms of the facilities it provides to tourists. The Central Reservation Cell in Trivandrum and Tourist Reservation Centres in Trivandrum, Cochin, Chennai and New Delhi provide multiple facilities to the tourists. The Various Units of KTDC which established throughout the state and the two travel divisions provide services of banks, post office, money exchanges, hotel reservation, air and train reservation, internet cafes, and other communication facilities which are very important in the processes element of marketing tour packages.
When it spelled out once the process involved in carrying out marketing of tour packages in Kerala, it become imperative to point out that the Kerala Tourism Development Corporation is running its tourism marketing process through its Marketing Department, District Tourism Promotion Councils, travel agencies, tour operators, marketing agencies and executives, CRC, TRCs and other units. Although this may be the very absorbent network of KTDC for carrying out the marketing efforts for tour packages effectively, at times it is impossible for these agencies, operators, councils, executives and units to come to terms with each other and act in integrity and unanimity. Seldom KTDC has lost its control over such travel agencies, tour operators and marketing executives, as they are non- government organisations and functioning independently. In the absence of any control or accountability, it will be an exaggeration of sorts to expect that these organisations will work in tandem with expectations of the Corporation.
Being tour package is a combination of several interlinked services its sales or transfer is not an easy process, as it interlinks several groups, to avail the tour packages or services to the ultimate tourists at maximum of level of satisfaction and gratification.
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5.1.7 Physical Evidence Perspective Analysis
In many aspects of tourism physical evidence is the core component of tourism product. This is especially valid in the case of package tours. In the context of the tourism marketing, however, physical evidence refers to the design or layout of the tourism product or the built environment owned and controlled by an organisation. Due to the intangible nature of tourism products, the physical evidence aspect is more often than not used to tangibilise the offer away from the place of consumption especially at the point of sale to influence purchasing.
In tourism physical evidence is corroborated with those aspects of the tourism product whose existence gives a sense of wellbeing. In other words there are such things with a tourist destination or product, which gives tourists a sense of belongingness, freshness, joy, flamboyance and splendour. In essence these factors have a degree of tangibility associated with them. Their tangible nature when coupled with the intangible aspects of a tourist product gives the product an entirely different shape and value. It adds to flair and quality of the product and makes it more convenient and attractive.
Physical Evidence is significant in planning and marketing of tour package because of the underlying principle of simultaneous provision and consumption. This component of the mix in the context of tour package marketing is used to meet a variety of objectives such as: helps to contribute to the communication of messages about quality, positioning and differentiation; facilitates the process of service delivery; helps to facilitate desired emotional states of behaviour among tourist and communicate values relating to the organisation, brand and package.
In the planning process of a tour package, physical evidence is an important aspect as it can be related from an architectural marvel to the basic ingredients to a package. Thus while planning a tour package it become imperative to create a structure that fit best into the environs of the destination nature and the needs and expectations of the tourists. It can be attributed in the planning and development of the accommodation facilities, means and ways of transportation, sightseeing facilities at various locales, entertainments, food and refreshments, shopping, and
183 other amenities. The layout of all these components as a whole to a package should be attractive and enjoyable with special care for the utmost satisfaction of tourist.
Being the Government agency to promote tourism in the State, KTDC has been succeeded to provide a better physical environment to the destinations by constructing tourism infrastructure and other amenities. Resulting from this, KTDC has become well equipped to design tour packages with a better layout of the experiences, attraction, facilities and other services components of a package. Since KTDC itself has been engaged in constructing and maintaining hotels, resorts and restaurants throughout the state, it can provide quality stay, food and refreshment to the tourist with a sense of wellbeing. In most of the tour packages KTDC provides facilities for food, accommodation and other amenities at its own hotels and resorts located at the most picturesque destinations in the state. These hotels and resorts have been developed in such a manner to have a homely atmosphere to the tourist. The physical layout of their accommodation units and restaurants is taken special care to give a sense of belongingness and freshness to tourist.
KTDC has been taking special care in selecting destinations to be included in tour packages. The physical environment of such destinations and the amenities available give an exotic experience to the tourist. The key attractions and experiences of such destinations in the packages may include backwaters, hill stations, waterfalls, vegetations, wild life, heritage tourism, historical monuments, houseboat cruise, Ayurvedic massage, trekking etc. The intangible nature of the experiences provided by these attractions or products gives the tour packages an entirely different shape and value. It adds much to the package in terms of its flair, quality and beauty.
Although KTDC has been taking extra care to integrate various components of the tourism product to form quality tour packages, the quality of the packages seldom questioned because of the unsatisfactory conditions of means of transportation, sightseeing facilities and rarely the services provided at the accommodation units. However, in essence KTDC has been succeeded in establishing a sense of well being, belongingness, freshness, joy, flamboyance and splendour among the tourist
184 through its varied quality tour packages. That provides a physical evidence for their experiences and presence in the God’s Own Country by way of a tour package.
5.2 Marketing Strategies of Tour Packages of KTDC:
Analysis and Evaluation
After the in depth marketing mix perspective analysis, now it is the turn to analyse and evaluate the marketing strategies of tour packages of KTDC. Since the hypothesis No.3 states on the grounds of the literature availed at the initial phase of the study that ‘Kerala Tourism Development Corporation has vague strategies for marketing tour packages in the State’, it is very convenient to adopt various approaches such as product/ consumer oriented approach, price/ competitor oriented approach, distribution/ trade oriented approach and promotion/ communication oriented approach to analyse and evaluate the marketing strategies adopted by KTDC for its tour packages in Kerala State. The application of these approaches will be helpful to identify whether KTDC has adopted any kind of marketing strategies for tour packages and if so, what type of marketing strategies are the Corporation adopted.
5.2.1 Product/ Consumer Oriented Approach
In the product/ consumer oriented approach KTDC can be adopted three core strategies, i.e. Undifferentiated (Diversification) Strategy, Differentiated (Specialisation) Strategy and Quality Growth Model Strategy.
5.2.1.1 Undifferentiated Strategy
The undifferentiated marketing strategy focuses on the average expectations of every segment of tourists and the marketing efforts concentrate on the common interest of the entire segments of tourists’ needs and behaviours rather than their variances. This strategic option concentrates on full product or market coverage without having any specialisation of products or markets.
By adopting a diversification/ undifferentiated strategy for marketing tour packages, KTDC can anticipate the average needs and expectations of more tourists
185 segments than a particular group by conceiving some varied tour packages. If the Organisation takes into consideration the varied and complex character of the State’s tourism potential, the organisation consider that the following could be particular tour packages that the Corporation can be offered. They are seaside/ beach sojourn, backwater packages, mountain and waterfalls (hill station) packages, vegetation with wildlife packages, ethnic circuit packages, heritage tour packages, rural-farm tour packages, Ayurveda packages, cruise (house boat) packages, ecotourism packages, pilgrimage packages, sports and adventure packages etc.
It is intelligible from the product perspective analysis element of the marketing mix of the tour packages that KTDC has developed large number of tour packages with the aim to satisfy the average needs and expectations of almost all tourists segment in the tourism market. All such kind tour packages have been designed and developed by considering the average needs and expectations of all segment of tourists.
Beyond these readymade packages, assorted tailor-made packages also added width and length to the product mix of KTDC. The Corporation is adding more new packages and making timely modifications in the existing packages in order to attract the new market segments. By offering these diversified tour packages, KTDC wants to make an inflow of all tourist segments such as local tourists, domestic tourists, foreign tourists, family tourist, honeymooners, nature lovers, pilgrim tourists, adventure lovers etc. to the utmost destinations in the state. KTDC has given enough attention in carrying out the marketing efforts for almost all types of tour packages included in the product mix.
The above discussions and analysis helps to interpret that KTDC has no farfetched ardour towards a particular package or group of packages to indulge a particular group of tourists as per their special needs and demands. As a rule, the Corporation has been designing diversified tour packages by considering the average needs and expectations of the total tourist segments. The marketing and promotional efforts of KTDC for tour packages concentrate on the common interests of the target segments’ needs and behaviour rather than their variances.
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5.2.1.2 Differentiated Strategy
This strategy aims to identify the characteristics of diverse consumer groups through the use of marketing instruments directed at specific targets in order to develop tourist products or services to satisfy the needs and expectations of a particular segment of tourists. By this strategic option the organisation concentrates in developing only a very limited number of tour packages that suits only few segments of tourists’ needs and expectations. It focuses on product specialisation, market specialisation or both product and market specialisation. Through the product or market specialisation the organisation can serve that particular segment of customers with absolute dedication.
Habitually, KTDC plans and develops certain tour packages with the specific aim to focus on particular tourist segments by considering their characteristics, interests, needs and expectations. The nature based packages such as hill station tour, beach tours, backwater packages, wildlife packages, cruise packages, etc. always aim to attract the nature lovers from within and outside the country. For those tourists who have genuine interest in health conscious tourism, KTDC offers multitudinous Ayurveda packages such as Ayurvedic rejuvenation packages and Ayurvedic therapy packages along with the beach and backwater tour packages. The Ayurveda packages with beach and backwater tours offered at different properties of the Organisation, especially at Kovalam and Kumarakom resorts, are often intended specifically to attract international tourists who have keen interest in Ayurvedic rejuvenations and therapies. The majority of the beach tour packages (Kovalam, Shankhumugham, Papanasham, Alappuzha, Cherai packages) of KTDC are designed to attract particularly the foreign tourists who have interested in sun- bathing at the sea shores, snorkelling, catamaran rides and other activities on the beach.
Similarly, in order to attract various social groups of tourists KTDC offers various readymade and tailor-made packages such as family packages, honeymoon packages, packages for particular age groups and other homogeneous social group packages. All these packages are helpful to provide utmost gratification to such social groups of visitors through the realisation of their interests, needs and
187 expectations. But all these readymade and tailor made packages have been planned and developed by considering average interest, attitude and expectations of each segments of the tourist.
Although there have been very less number of packages which are specifically designed to attract particular tourist segments having special characteristics, interests, needs, and expectations, KTDC has been often shown its keen interest to design and develop special tour packages for particular tourist segments as it wants to attract such market segments of tourists to the Organisation. But the organisation has been given focus to develop and market natural based tour packages and Ayurveda packages along with other diverse tour packages. Because Kerala has abounding nature based tourism resource potential and plenty of Ayurveda centres, which might be driven the organisation to tailor such kind of packages in accordance with the common characteristics, interest and attitude of varied tourist segments in order to have full market coverage.
Therefore, it is evident from the above discussions and marketing mix analysis that KTDC has not been stuck around a particular group of packages with the aim of satisfying particular groups of tourists. Although it focuses utmost all segments of tourists such as native tourists, domestic tourists, foreign tourist, nature lovers and health conscious tourists, adventure lovers, pilgrim tourists etc. by offering diverse tour packages, sometimes the Corporation also takes special care to satisfy such tourist segments who have special and varied interests, needs and expectations. It is true in the case of foreign and health conscious tourists that KTDC has a special in attracting them to the Organisation because of the better earnings in the form of foreign exchange. However, being a government agency to promote tourism in Kerala, KTDC has been supposed to undertake such marketing efforts or strategies which must serve full market or product coverage.
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5.2.1.3 Quality Growth Model Strategy
Another strategy KTDC can adopt for marketing tour packages is Quality Growth Strategy. By adopting such a strategy the Corporation is capable to attract and satisfy every class or segment of tourists through the quality matters of tour packages.
Beyond the diversification and differentiation strategies, KTDC adopts quality growth strategy in order to have a significant difference and distinguished attraction in terms of the quality of the tour packages from other tour operators’ packages. Although there have been diverse tour packages, KTDC make them more attractive from other tour operators’ packages by maintaining a distinguished quality. In its history of marketing tour packages KTDC has never compromised with the quality of its tour packages. This can be also realised in the tourists satisfaction survey results discussed in chapter 6 of this study.
However, it is clear from the above product/consumer oriented strategies analysis that KTDC has been adopting mainly undifferentiated (diversification) strategy for marketing its varied tour packages in the state of Kerala. At the same time the Corporation has given special focus for foreign tourist segment by designing distinguished packages in accordance with their tastes, preferences and expectations. Moreover, KTDC has adopted ‘Quality Growth Model’ as the overall strategy along with other strategies for marketing tour packages.
5.2.2 Price/ Competitor Oriented Approach
With the peculiar characteristics of Kerala tourism industry KTDC has four core pricing strategies to determine the price of its tour packages i.e. cost/price leadership strategy, demand oriented pricing, high price strategy and differential pricing.
5.2.2.1 Cost/ Price Leadership Strategy
A cost/ price leadership strategy makes a tour operator competent in market by setting the possible lowest price for its packages by minimising the cost. By adopting this type of pricing strategy, KTDC can become the leader of the tourism
189 market in setting the prices of tour packages in the State by fixing the possible lowest price through minimum cost of production. But the price perspective analysis has not given any evidence for practicing cost/ price leadership strategy by KTDC in marketing tour packages. As it is more concerned about the quality of packages than the cost or price, the Corporation has often failed to attract the common people who prefer the cost/ price of packages with the quality factor.
5.2.2.2 High Price Strategy
The price perspective analysis of the tour packages unveils that KTDC has been practicing higher price strategy to determine the prices of its varied tour packages. Since the Corporation has been offering and marketing superior quality tour packages, it is enforced to fix higher prices for maintaining the standard and quality of the packages to be marketed.
The high price strategy can be applied for some of the tour packages having very good quality. Such packages include Houseboat Cruise, Natural Backwater packages, Beach Holiday package, Coast and Cruise packages, Mystic Hills Station packages, Island packages, Kerala Jungle packages, Ayurveda Rejuvenation and Therapeutic packages etc. In order to ensure the competitiveness of such type of tour packages a correlation between the high price and the superior quality of tour packages is imposed.
By adopting a high price strategy, KTDC may have to concentrate on the quality matters of tour packages. Hence, the Corporation can be easily achieved a competitive edge with a very good reputation and global super brand position in terms of quality matters and it can be helpful to attract those tourists who are more concerned about the quality of packages than the price.
5.2.2.3 Demand Oriented Pricing Strategy
The demand characteristics of the tourist segments represent factors such as seasonal variations etc. lead to the adoption of price differentiation strategies for determining the prices of certain tour packages.
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Sometimes KTDC has been imposed to practice demand based pricing strategy for certain packages which have seasonal influence to attract tourist. The packages such as Ayurveda Rejuvenation and Therapeutic packages have a great demand during the monsoon season. Therefore the prices of such packages during the monsoon will be very high compared to other seasons. On the other side, the prices of Mystic Hill Holiday packages, Inland Holiday Packages, Natural Backwater packages, Houseboat Cruise Packages, Beach Holiday packages, Jungle Holiday packages etc. are comparatively less during the Monsoon.
5.2.2.4 Differential/ Dual Pricing Strategy
The price perspective element of the marketing mix analysis says that KTDC has often plagued by the dual/ differential pricing mechanism with regard to the foreign and domestic tourists. The same types of tour packages and products have been charged differently from foreigners and Indian tourists especially for Ayurveda Tour Packages, Houseboat Cruise packages and other premium packages.
Although KTDC has been adopting different pricing strategies for different tour packages at different times and situations, generally it adopts a high price strategy for its products and services as compared to other tourism organisations. Since the Organisation has been providing superior quality services and packages it has never practiced a cost/ price leadership strategy for its tour packages in its total service span in the tourism industry. The KTDC has rarely adopted the strategies such as price bundling and tactical pricing along with the demand oriented pricing and differential/ dual pricing strategies.
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5.2.3 Distribution/ Trade Oriented Approach
The third approach to marketing strategy focuses on distribution channel, i.e. the uses of intermediaries who are particularly significant in the travel and tourism industry. The literature identified two main trade oriented strategies in marketing tour packages. They are By-Passing Strategy and Co-operation Strategy.
5.2.3.1 By-Passing Strategy
Through the adoption of a By-Passing Strategy KTDC or any other travel and tourism organisation can relinquish any collaboration with the distribution channels such as brokers, tour operator or agents etc. By adopting this type of marketing strategy tourism organisations can be directly involved in the distribution of tour packages to the ultimate consumers by way of direct marketing techniques.
As a rule, it has been practiced by KTDC for years that, the Organisation passes the tour packages to the ultimate customers directly through the marketing and sales department, marketing executives, KTDC’s accommodation units and the tourist reception centres located in different parts of the State. Here the tourist directly contacts organisation or the tourist reception centres or marketing department contact tourists directly through e-mails or other means and provide the service directly to them. The Central Reservation Cell, KTDC’s own website and other internet sources also play a pivotal role in attracting both domestic and foreign tourists directly to the Organisation and it helps to relinquish the intermediaries from the distribution system. Sometimes KTDC has received tourists as ‘Walk in Customers’ – the people who are not exactly guided by an agent or through direct marketing. They choose their destination or locale as they wish.
Although KTDC has been taking up direct marketing efforts for reaching its tour packages to the tourists, the insufficient facilities and resource potential, the semi skilled and unskilled sales force and people employed at the marketing department and tourism reception centres are often badly affected the direct marketing efforts. So in order to make the by-passing strategy more effective for the organisation, it can also practice database marketing for tour packages. The direct/ by passing marketing activities were often merely significant for establishing and/ or
192 maintaining a presence and visibility of KTDC’s tour packages in both domestic and international markets.
5.2.3.2 Co-operative and Collaborative Strategy
The Co-operative and Collaborative strategy is widely adopted for marketing tourism products at national and international levels by both public and private travel and tourism organisation with the co-operations and collaborations of the varied intermediaries in both the market places.
The place/ distribution perspective analysis of marketing mix of tour packages reveals that the distribution net work of KTDC consists of a number of intermediaries like marketing and sales agents, travel agencies and tour operators, District tourism promotional councils, the general sales agents within the country and abroad, and other public and private tourism organisations. The Corporation has been carried out the distribution of tour packages through the cooperative and collaborative networks of these various mediators and agencies.
Kerala Tourism Development Corporation has large number of individual as well as organised sales and marketing agents both in domestic and overseas markets in order to maximise the inflow of tourists in the State. In addition to the sales and marketing agents, the Central Reservation Cell in Thiruvanthapuram, the Tourists Reception Centres located at the major cities in India, and the other units and offices of KTDC also play a very significant role in the distribution network of the organisation.
Although KTDC has a number of sales and marketing agents and executives to strengthen the distribution network, still the organisation is facing problems and difficulties in the timely distributions of tour packages due to the ineffective and insufficient marketing and distribution efforts undertaken by these intermediaries and agencies. Moreover, there are a large number of states and countries without having a single marketing or sales agent for the tour packages’ distribution. In India KTDC has only about 40 authorized general sales agents 6 all of them are located in only 9 states namely Goa, Maharashtra, Andhra Pradesh, Gujarat, Madhya Pradesh,
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Utter Pradesh, Rajasthan, West Bengal and Kerala 7. The number of foreign countries having the sales and marketing agents of the Corporation is very few.
However, the cooperative and collaborative distribution strategies adopted by KTDC are often yielding less result in marketing of tour packages. Because, the inefficiency of the distribution agencies to identify the expected tourists and to reach packages to them in time, and the insufficient number of intermediaries and agents. Still the Corporation does not have authorised mediators or agents except the general sales agents in many countries such as Australia, France, and Canada etc. where from the tourists inflow to the state is very high 8.
The success of the corporative and collaborative strategy is greatly depends on the efficiency of intermediaries’ networks. However, it is clear from the above analysis that KTDC has been more concentrated on the direct or by-passing marketing strategy even it has given emphasis and importance for the intermediaries and agents in distributing tour packages in a cooperative and collaborative manner.
5.2.4 Promotion/ Communication Oriented Approach
The promotional efforts of Kerala Tourism Development Corporation for marketing tour packages in the State can be structured and analysed on the basis of three level strategies. They are local/ State level promotional strategies, National level promotion Strategies and International level promotional Strategies
5.2.4.1 The Local/ Regional or State Level Strategies
In order to attract the local tourists (tourists within the state) KTDC has adopted local or regional level promotional strategies. The promotion element in the marketing mix analysis shows that the Marketing Department of the Corporation has undertaken several promotional activities and programmes for marketing tour packages in the State. Such promotional efforts and programmes include Road Shows, Exhibitions, Grand Kerala Tourism Festivals, Grand Kerala Shopping Festivals, and Special Promotional Campaign during festivals like Onam, Eid, and Christmas etc. All these activities and programmes have been carried out both at district and state levels and sometimes regional level as well.
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The brochure, booklets, leaflets, pamphlets and tour itineraries, and the uses of information technology by way of production of films, CD ROMs and multimedia technology etc. also play a significant role in the local level promotion of tourism products in the state. Another important promotional technique adopted is the advertisements in local news papers, TV channels and other electronic medias, magazines, KTDC’s own website, posters and notices etc. In addition to all these, the marketing and sales agents, marketing executives, tour operator etc. are also undertaking the promotional efforts for the Organisation at district and regional levels.
As an innovative technique KTDC has adopted mobile phone marketing by utilising SMSs and MMSs for local level promotion of tour packages. The SMSs and MMSs are enough capable to disseminate information about the newly added packages and products of KTDC through the small pictures and texts. Those who are interested in the packages can contact the Corporation directly or through the contact numbers given in the Messages. Although, KTDC has been conducting Shopping festivals for many years, the Grand Kerala Shopping Festival 2009 (Season 3) is entirely different from earlier festivals as it has given special emphasis to tourist destination promotion than the shopping of physical tourism products and other materials.
However, all the above mentioned means and modes of promotional techniques are playing a vital role in disseminating information about the tour packages of KTDC along with the other tourism products in the State. All these promotional techniques encourage tourists to visit the attractive destinations in Kerala by way of tour packages.
5.2.4.2 National and International Level Strategies
The major promotional strategy which KTDC has been adopted to attract national and international tourist to the State is by means of positively-aggressive promotion under the slogan ‘ Official Host to God’s Own Country ’. In all the promotional programmes and activities for marketing tour packages and other tourism products in the State, KTDC uses the slogan ‘ Official Host to God’s Own Country ’ that
195 provides a strong brand image for the Organisation and Kerala Tourism Industry. The Website and the Central Reservation Cell of KTDC also play a very significant role in bringing the tourists in the national and international markets close to the Organisation.
For the promotion of the tourism in the state by attracting the domestic and foreign tourists, the Corporation is a regular participant in International fair such as International Trade fair held at Pragathi Maidan, New Delhi, International Tourism Borse (ITB) Berlin, World Travel Mart (WTM) London and ATM Dubai, ILTM France, FITUR- Spain, TTG Rimini etc. and the national fairs which include Travel and Tourism Fair Bangalor, Chennai, Kolkata; India International Travel Mart- Mumbai, India International Trade Fair- New Delhi and South Asia Travel and Tourism Exchange- New Delhi etc9. The promotional campaign Visit Kerala Year 2009 was aimed to woo more domestic tourists to the state by focusing on Tier-II cities. The national and international level marketing agents, executives and tour operators are also undertake intensive promotional efforts within and outside the country.
In addition to these, the traditional promotional strategies such as advertising, direct and personal selling, public relations, publicity, video clips and film strips, etc. and the new techniques such as database marketing, uses of information and multimedia technology, internet, CD Rom etc. also have a great influence in the inflow of national and international tourists to the State by means of KTDC’s tour packages and other tourist products. Website is very crucial in disseminating information about the varied tour packages of KTDC and in attracting domestic as well as foreign tourists to the God’s Own Country. At present website is the most effective and powerful promotional tool to attract national and international tourists to the Organisation.
However, it can be understood from the above discussions and marketing mix analysis that KTDC has been undertaken tourism promotional techniques and programmes effectively and efficiently at regional/ local level, national and international level. The Corporation has adopted different promotional strategies
196 and techniques and has made timely changes as per the changes of human attitude, tastes and preferences and information technology.
2.3 Tenability of Hypothesis and Conclusion
The above analytical evaluation of all planning processes and the marketing strategies of the tour packages of KTDC make it amply clear that the Corporation has been adopted different marketing strategies for different tour packages in different contexts and times. The marketing mix perspective analysis and overall marketing strategy analysis through the application of different marketing approaches could not find any reasonable evidence to support the Null Hypothesis (No.3) that KTDC has vague strategies for marketing tour packages in Kerala. Hence, the null hypothesis was rejected and the alternative hypothesis (KTDC has well structured strategies for marketing tour packages in Kerala) has been accepted.
The marketing strategies which KTDC has adopted in different contexts and times are different from package to package. During the peak (season) periods the Organisation adopts undifferentiated strategy with the intention to attract almost all tourists segments, but in off-seasons it adopts differentiated strategy for attracting a particular tourist group such as foreign tourists or health conscious tourists etc. Similarly KTDC adopts high pricing strategy in peak periods, but in off-season it adopts a low price strategy. Therefore the strategies adopted by KTDC for marketing tour packages are different from package to package, season to season, customers to customers and situation to situation
The important strategies which KTDC has adopted for tour packages are: undifferentiated (diversification) and differentiated (specialisation) strategies; high pricing, differential/dual pricing and demand oriented pricing strategies; the distribution strategies such as by-passing (direct) and cooperative and collaborative (use of intermediaries) strategies; and regional, national and international level promotional strategies such as advertisements through print and electronic media, online and website advertisements, personal selling by using marketing executives and agents, use of brochures, booklets, leaflets, pamphlets and tour itineraries, production of tourism films, CD ROMs, use of multimedia technology, conducting
197 road shows, exhibitions, tourism festivals and festival celebrations, use of mobile technology in the form of MMSs and SMSs, participation in national and international fairs and festivals, global brand positioning etc. Although, the strategies adopted are different in various contexts and times, they have well designed structures and inter-linkages with each other, and thus the total marketing efforts and strategies for tour packages are controlled and incorporated by the overall strategy of ‘Quality Growth Model’.
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Reference
1. Fyall, A., & Brian, G. (2006 ), Aspects of tourism marketing- A collaborative approach, New Delhi: Viva Books, p.114 2. Official Records of Kerala Tourism Development Corporation 3. The Hindu Business Line, Financial Daily, The Hindu group of publications , Internet Edition, Wednesday, Dec 07, 2005 4. Kerala Tourism Statistics 2007, Department of Tourism, Government of Kerala, p.32 5. Official Records of Kerala Tourism Development Corporation 6. Unpublished Official Reports of Kerala Tourism Development Corporation 7. www.ktdc.com 8. ibid 9. Kerala Tourism Statistics 2007, Department of Tourism, Government of Kerala, p.32
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CHAPTER - 6 Tourist Satisfaction with KTDC’s Tour Packages: An Empirical Analysis
Chapter five evaluates analytically the strategies of KTDC for marketing tour packages in Kerala State through the marketing mix analysis and by applying different marketing approaches analysis. Since the analysis points out that KTDC has adopted ‘Quality Growth Strategy ’ as the overall marketing strategy for tour packages, it seem paramount important to evaluate the satisfaction level of tourist with the tour packages offered by the Corporation in order to understand the quality of tour packages. Therefore, with the help of statistical tools and techniques, this chapter analyses the overall satisfaction level of tourist with the tour packages of KTDC and identifies whether there exists any significant difference between the satisfaction levels of domestic and foreign tourists. It will also attempt to pick out the major satisfaction and quality determinants of tour packages in the state.
By keeping this purpose in mind, the investigator has conducted a survey on tourist satisfaction with the help of a structured questionnaire. The questionnaire consists of 49 statements (represented each independent variables/ attributes) which were sufficient to ascertain the satisfaction levels (dependent variable) of tourists with the tour packages offered. All the independent variables/ attributes were categorized into twelve dimensions such as Attractions, Accommodation, Transportation, Entertainment, Shopping Arrangements, Food and Refreshment, Staff Response, Price, Safety and Security, Communication, Booking, and Managerial Efficiency. A pilot test was administered to a group of 20 samples in order to eliminate unnecessary attributes and add more relevant questions. The final sets of questionnaires were distributed among 393 tourists and finally, of these questionnaires 334 were selected as usable for further analysis. Their opinion was measured on Five Points Likert Scale ranging from Strongly Agree (5) to Strongly Disagree (1). The data thus collected are analysed, interpreted and presented in the succeeding pages of this chapter. 6.1 Demographic and Travel Behavioural Profile of Respondents
Out of 393 questionnaires, 41 were not returned and 19 were discarded since they were partly filled, thus giving a response rate of 84.99%. The percentage of male respondents is higher than female respondents with 60% and 40% respectively although visitors were approached with no gender discrimination. There are 234 domestic tourists and 100 foreign tourists with a percentage ratio of 70:30. It has been found from the age wise classification of respondents that 52.7% are belonging to the age group of ‘40 – 60’. The occupation wise distribution shows that ‘salaried’ group of respondents has maximum frequency (i.e.128). The income wise distribution shows majority (77.78%) of the respondents are belonging to higher income groups with a maximum frequency of 120 represented the monthly income Rs. 50,000 to One lac. Detailed analyses and comparisons can be had from the tables 6.1 to 6.9.
Travel behavioural characteristics show that majority of the tourists were interested to travel with spouse, family/relatives or friends/colleagues. No tourists were attracted to KTDC for its pilgrim and adventure and sports packages. Word of mouth (friends and relatives) has the highest frequency in informing the tourists about the tour packages of KTDC. The other major sources of information are agents/ intermediaries and KTDC’s own website.
The following tables give an insight to the distribution of respondents on the basis of the demographic and travel behavioural characteristics such as gender, nationality, age, occupation, income, travel companion, nature of package and major source of information.
Table 6.1: Nationality wise Distribution Cumulative Frequency Percent Valid Percent Percent Valid Domestic Tourist 234 70.1 70.1 70.1 Foreign Tourist 100 29.9 29.9 100.0 Total 334 100.0 100.0 Source: Survey Data
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Table 6.2: Gender Wise Distribution Cumulative Frequency Percent Valid Percent Percent
Valid Male 200 59.9 59.9 59.9 Female 134 40.1 40.1 100.0
Total 334 100.0 100.0 Source: Survey Data
Table 6.3: Gender and Nationality wise Cross tabulation
Nationality Total Domestic Tourist Foreign Tourist
Gender Male 141 59 200
Female 93 41 134 Total 234 100 334 Source: Survey Data
Table 6.4: Age Group Wise Distribution Cumulative Frequency Percent Valid Percent Percent
Valid Below 20 17 5.1 5.1 5.1
20 to 40 92 27.5 27.5 32.6
40 to 60 176 52.7 52.7 85.3
60 & Above 49 14.7 14.7 100.0
Total 334 100.0 100.0 Source: Survey Data
Table 6.5: Occupation wise Distribution Frequenc Valid Cumulative Percent y Percent Percent
Valid Business 57 17.1 17.1 17.1 Professional 72 21.6 21.6 38.6 Salaried 128 38.3 38.3 76.9 Student 33 9.9 9.9 86.8 Retired/ Unemployed 44 13.2 13.2 100.0 Total 334 100.0 100.0 Source: Survey Data
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Table 6.6: Income wise Distribution Cumulative Frequency Percent Valid Percent Percent
Valid Below 20,000 37 11.1 11.1 11.1 20,000 to 50,000 37 11.1 11.1 22.2 50,000 to 100,000 120 35.9 35.9 58.1 100,000 to 250,000 79 23.7 23.7 81.7 Above 250,000 61 18.3 18.3 100.0 Total 334 100.0 100.0
Source: Survey Data. Note: Income refers monthly income in Indian Rupees.
Table 6.7: Classification on the basis of Travel Companion
Cumulative Frequency Percent Valid Percent Percent
Valid Spouse 112 33.5 33.5 33.5 Family/ Relatives 94 28.1 28.1 61.7 Friends/ Colleagues 106 31.7 31.7 93.4 Alone 15 4.5 4.5 97.9 Others 7 2.1 2.1 100.0 Total 334 100.0 100.0 Source: Survey Data
Table 6.8: Classification on the basis of Type of Package
Cumulativ Frequency Percent Valid Percent e Percent Beach & Backwater Valid 67 20.1 20.1 20.1 Package Hill Station Package 43 12.9 12.9 32.9 Wildlife Package 18 5.4 5.4 38.3 Pilgrimage Package 00 00 00 38.3 Ayurveda/Health Package 73 21.9 21.9 60.2 Heritage Package 37 11.1 11.1 71.3 Sports & Adventure 00 00 00 71.3 Package Integrated by all these 96 28.7 28.7 100.0 Total 334 100.0 100.0 Source: Survey Data
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Table 6.9: Major Source of Information
Cumulative Frequency Percent Valid Percent Percent
Valid KTDC' Own Website 60 18.0 18.0 18.0 Other Internet Sources 26 7.8 7.8 25.7 Electronic Media 13 3.9 3.9 29.6 Print Media 17 5.1 5.1 34.7 Friends and relatives 120 35.9 35.9 70.7 Agents/ Intermediaries 98 29.3 29.3 100.0 Total 334 100.0 100.0 Source: Survey data
6.2 Mean Scores of Attributes (Satisfying and Dissatisfying Attributes)
In order to identify the most satisfying, dissatisfying and indifferent attributes, scores of each of the attributes were summed up and divided by total number of tourists (i.e.334), to get the mean scores of each attributes. The table 6.10 shows the mean scores for each statements pertaining to tourists’ satisfaction with the different dimensions of tour packages such as Attractions, Accommodation, Transportation, Entertainments, Food and refreshments, Shopping arrangements, Staff response, Price, Safety and security, Communication, Booking, and Managerial efficiency. It is evident from the table that the tourists were satisfied with almost 45 attributes (having mean scores ≥ 3.5), dissatisfied only with one attribute i.e. time allowed for shopping (mean score ˂ 3) and neither satisfied nor dissatisfied with three attributes (having mean scores between 3 and 3.5) which include vehicle parking distance from sightseeing spots, reasonable price and arrangements for shopping.
The attributes which give maximum satisfaction to them include attractiveness of the locations selected, availability of sightseeing guides’ services, hotel room space, neatness and hygienic conditions, bedding facilities provided, air conditioning facilities, bathroom facilities and sanitations, physical environment of the hotel location, and special care and arrangements for elders, disables and women tourists.
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Table 6.10: Mean Scores of Attributes Mini- Maxi- Std. Attributes N Mean mum mum Deviation Attractions 00 00 00 00 00 Diversity of Attractions 334 1 5 3.59 1.035 Attractiveness of Locations 334 2 5 4.50 .672 Sightseeing Time 334 1 5 4.03 .751 Arrangements for Sightseeing 334 3 5 4.35 .559 Exploration of Attractions 334 2 5 4.30 .748 Sightseeing Guides 334 3 5 4.41 .566 Coverage of Attractions 334 1 5 4.18 .849 Accommodation 00 00 00 00 00 Room Space 334 2 5 4.68 .577 Neat and Hygienic conditions 334 3 5 4.70 .508 Bedding Facilities provided 334 2 5 4.62 .565 Air conditioning Facilities 334 3 5 4.61 .573 Bathroom Facilities and sanitations 334 2 5 4.54 .598 Hotel Location 334 3 5 4.74 .471 Transportation Number of Passengers 0334 0 020 050 03.98 0 0.673 Seating Arrangements 334 2 5 3.89 .575 Parking Distance 334 1 5 3.31 .876 Fitness of Vehicle 334 2 5 3.79 .465 Entertainments 00 00 00 00 00 Entertainment Facilities 334 1 5 3.84 .880 Regional Arts & Culture 334 2 5 4.00 .719 Cultural Programmes 334 1 5 3.91 .742 Food & Refreshment s Quality of Food 334 1 5 3.96 .670 Quantity of Food 334 2 5 3.95 .618 Food Serving Time 334 2 5 3.94 .520 Delicious and variety of items 334 1 5 3.67 .775 Drinking Water 334 1 5 3.65 .877 Shopping Arrangements Arrangements for shopping 334 1 5 3.37 .849 Purchasing Time allowed 334 1 5 2.83 .926 Market Selected 334 2 5 3.73 .643
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Staff Response Helpful & Courteous 334 2 5 3.90 .923 Quick to React 334 2 5 3.91 .884 Willingness 334 2 5 4.01 .719 Well Informed 334 2 5 3.94 .814 Price Reasonable Price 334 1 5 3.76 1.027 No Price Discriminations 334 1 5 3.81 .750 Value for Money 334 1 5 3.90 .726 Safety & Security Relaxed Atmosphere 334 2 5 4.02 .827 Individual Attention 334 1 5 3.96 1.059 Medical Facilities 334 1 5 3.93 .889 Special Care for aged, disables, etc. 334 2 5 4.08 .931 Communication Instruction & Directions 334 1 5 4.04 .883 Brochures 334 2 5 3.94 .648 Immediate Response 334 1 5 3.91 .764 Clarity and Accuracy 334 2 5 3.82 .889 Booking Easy Procedures 334 2 5 4.05 .698 Operating Hours 334 2 5 3.95 .603 Networks with Agents 334 2 5 3.75 .634 Managerial Efficiency Proper Planning 334 2 5 3.71 .654 Implementation of Plans 334 3 5 3.92 .629 Time Management 334 1 5 3.66 .819 Valid N (list wise) 334 Source: Survey data
The table 6.10 also reveals that the highest mean value of the attraction dimension is 4.50 for “attractiveness of locations selected”. The lowest mean value is 3.59 for the statement of “diversity of attractions included”. This shows that the destinations and locales included in the packages were very attractive but there were no much variety and diversity of attractions in the packages to provide maximum
206 satisfaction. However, it is clear from the table 6.11 that the tourists were very satisfied with attraction dimension of quality of tour packages.
The mean scores of all the attributes under accommodation dimension are more than 4.5which indicate that tourists were highly satisfied with the accommodation facilities provided. The lowest mean value for transportation is 3.31 (vehicle parking distance from sightseeing spots) and the highest is 3.98 (number of passengers). This shows that they were not very satisfied with transportation services provided. It is also can understand from the table 6.11. The mean scores of attributes coming under the dimensions entertainment, staff response, safety and security, communication, food and refreshments, booking and managerial efficiency indicate that tourists were almost satisfied with all these attributes and dimensions, but have no opinion about shopping arrangements dimension.
The table given below shows the mean scores of 12 dimensions of tour package
Table 6.11: Mean Scores of 12 Dimensions of Tour Packages
Std. N Minimum Maximum Mean Deviation
Attraction 334 3.43 4.86 4.1950 .27694 Accommodation 334 3.50 5.00 4.6487 .23958 Transportation 334 2.50 4.50 3.7425 .37909 Entertainments 334 2.33 4.67 3.9152 .45092 Food & Refreshments 334 2.80 4.40 3.8353 .33684 Shopping Arrangements 334 2.33 5.00 3.3114 .46159 Staff Response 334 2.75 5.00 3.9401 .55865 Price 334 2.67 5.00 3.8214 .52405 Safety & Security 334 2.50 5.00 3.9970 .67783 Communication 334 2.75 5.00 3.9266 .47680 Booking 334 3.00 5.00 3.9172 .35249 Managerial Efficiency 334 2.33 4.33 3.7615 .42838 Valid N (list wise) 334 Source: Survey data The price dimension has the highest mean score (3.90) for the attribute ‘value for money’ and lowest score (3.76) for ‘reasonable price’. This indicates that tourists
207 were satisfied with KTDC’s pricing policies for tour packages. But a few visitors were expressed that a higher pricing policy and price discrimination system was imposed on them, due to the difference in pricing for local tourists and domestic and international tourists.
6.3 Tourist Overall Satisfaction
The overall satisfaction of tourist is ascertained by summing up the average responses of tourists for each of the statements and divided by the total number of attributes (i.e. 49). The mean value thus calculated indicates the overall satisfaction level of tourists with the tour packages. It is evident from the below table (table 6.12) that the tourists both domestic and foreign were satisfied with the overall quality of the tour packages of KTDC. The mean scores of overall satisfaction of domestic, foreign and domestic plus foreign tourists are 3.87, 4.02 and 3.92 respectively. The Standard Deviation values do not show any significant variation between the mean scores and average mean score of the variables.
Table 6.12: Mean Scores of the Overall Satisfaction of Tourists
N Minimum Maximum Mean Std. Deviation
Domestic Tourists 234 3.35 4.36 3.8754 .23433 Foreign Tourists 100 3.66 4.36 4.0166 .19194 Domestic + Foreign 334 3.35 4.36 3.9177 .23145
Valid N (list wise) Source: Survey Data
Table 6.13: Satisfaction Level of Tourists
Highly Tourists Satisfied Neutral Dissatisfied Total Satisfied 234 Domestic 41 (17.52%) 143 (61.11%) 38 (16.24%) 12 (5.13%) (100%) 100 Foreign 33 (33.00%) 58 (58.00%) 9 (9.00%) xxxx (100%) Domestic 334 74 (22.16%) 201 (60.18%) 43 (14.07%) 12 (3.59%) + Foreign (100%) Source: Survey Data
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From the results of analysis of data, it further found that around 82.34% tourists were satisfied, among them 22.16% is highly satisfied, and only 3.59% were dissatisfied with the tour packages offered by KTDC. Table 6.13 shows the average number and percentage of overall satisfaction levels of tourists (Domestic, Foreign and Domestic plus Foreign).
Table 6.13 makes a comparison of overall satisfaction levels of both the tourists, domestic as well as foreign. The percentage of foreign tourist who were satisfied with tour package is 91% (including 33% highly satisfied), 9% have no opinion and no tourists were dissatisfied. But in case of domestic tourists 78.63% (17.52 highly satisfied) were satisfied, 16.24% have no opinion and 5.13% were dissatisfied.
6.4 Major Satisfaction Determinants of Tour Packages
In order to understand the major satisfaction and quality determinants of tour packages, all the attributes were categorised to different dimensions (i.e. total 12 variables) and then analysed them with the help of statistical tools such as Factor Analysis with Principle Component Method and Multiple Regression Analysis .
6.4.1 Factor Analysis
The 49 attributes, (shown in table 6.9) identified as satisfaction determinants of tour packages, were categorised into twelve dimensions as shown in table 6.10. The factor analysis with the principal component method was used to identify the major satisfaction and quality determinant dimensions. The result of the principal component analysis on all the 12 dimensions is shown in the following tables. Table 6.14 shows the communalities of the variables and table 6.15 shows the total variance explained.
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Table 6.14: Communalities of the Dimensions
Dimension Initial Extraction Attraction 1.000 .677 Accommodation 1.000 .582 Transportation 1.000 .765 Entertainments 1.000 .644 Food & Refreshments 1.000 .508 Shopping Arrangements 1.000 .635 Staff Response 1.000 .365 Price 1.000 .713 Safety & Security 1.000 .646 Communication 1.000 .665 Booking 1.000 .653 Managerial Efficiency 1.000 .705 Source: Survey data Extraction Method: Principal Component Analysis.
Table 6.15: Total Variance Explained
Extraction Sums of Squared Initial Eigen values Loadings Factor Cumulative Total % of Variance Cumulative % Total % of Variance % 1 3.218 26.815 26.815 3.218 26.815 26.815 2 1.781 14.844 41.660 1.781 14.844 41.660 3 1.466 12.220 53.879 1.466 12.220 53.879 4 1.093 9.110 62.990 1.093 9.110 62.990 5 .862 7.182 70.172 6 .798 6.654 76.826 7 .677 5.644 82.470 8 .537 4.472 86.942 9 .483 4.027 90.969 10 .453 3.771 94.740 11 .353 2.943 97.683 12 .278 2.317 100.000 Source: Survey data. Extracted Factors having Eigen values ≥ 1 Extraction Method: Principal Component Analysis.
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The output of the principal component analysis shows that the Eigen values of four factors are more than one, which explaining 63 percent of total variance. Thus the 12 variables (dimension) are underlying to these 4 factors. Table 6.16 shows the loadings of these variables on four factors.
Table 6.16: Factor Matrix Factor Dimension 1 2 3 4 Attraction .350 -.244 .156 .686 Accommodation .667 -.289 .209 -.099 Transportation .270 .430 .712 -.017 Entertainments .700 .381 -.053 -.073 Food & Refreshments .705 -.036 .079 -.052 Shopping Arrangements .071 .528 -.030 .592 Staff Response .260 .386 -.380 .071 Price -.228 .075 .809 -.018 Safety & Security .767 -.156 -.003 .183 Communication .178 -.770 .189 -.071 Booking .486 .459 .034 -.453 Managerial Efficiency .780 -.214 -.215 -.070
Extraction Method: Principal Component Analysis. 4 factors extracted .
The four major factors identified by factor analysis have a great influence on the quality of the tour packages and, thus become the major determinants of overall satisfaction of tourists.
Table 6.16 shows the factor structure. Factor 1 has high loadings for Managerial efficiency (.780), Safety and Security (.767), Food and Refreshment (.705), Entertainment (.700) and Accommodation (.667). All these five dimensions are concerned with facilities and comforts; hence this factor can be named as Facilities and Comfort. Factor 2 shows high loadings for Communication (.770) only and can be named as Communication. Factor 3 has high loadings for Price (.809) and Transportation (.712) and which can be called as Price and Transportation. Factor 4 shows high loadings for Attractions (.686) and Shopping Arrangements (.592) and named as Attractions. The variables (dimensions) of low loadings (< .5) have been excluded from considerations which include staff response and booking. Thus it can
211 be concluded that tourist satisfaction level with facilities and comforts is the most important criteria for determining overall satisfaction of tourists and the quality of tour packages offered by Kerala Tourism Development Corporation.
6.4.2 Multiple Regression Analysis
In support to the factor analysis, multiple regression analysis also used to identify the major satisfaction and quality determinant dimensions of tour packages of KTDC in Kerala. The regression analysis ascertains the percentage variation levels of the four factors extracted by factor analysis.
The following tables show the results of the regression analysis. To predict the goodness-of-fit of the regression model, the multiple correlation coefficient (R), 2 coefficient of determination (R ), and F ratio were examined. First, the R of independent variables (four factors, 1 to 4) on the dependent variable (tourists’ overall level of satisfaction) is 0.969, which showed that the tourists had higher overall 2 satisfaction levels with the four factors. Second, the R is 0.939, suggesting that about 94% of the variation of tourist’ overall satisfaction was explained by the four factors. Last, the F ratio, which explained whether the results of the regression model could have occurred by chance, had a value of 1263.964 (p=0.00) and was considered significant. The regression model achieved a satisfactory level of goodness-of-fit in predicting the variance of tourists’ overall satisfaction in relation to the four factors, as 2 measured by the above –mentioned R, R , and F ratio. In other words, at least one of the four factors was important in contributing to tourists’ overall level of satisfaction with the Tour Packages of KTDC in Kerala.
Table 6.17: Model Summary
Std. Error of the Model R R Square Adjusted R Square Estimate
1 .969 .939 .938 .03842 Predictors: (Constant), Attraction, Transportation and Price, Facilities N Comfort, Communications. Dependent Variable: Overall Satisfaction
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6.18: Analysis of Variance
Model Sum of Squares Df Mean Square F Sig.
1 Regression 7.465 4 1.866 1263.964 .000 a
Residual .486 329 .001
Total 7.951 333 Predictors: (Constant), Attraction, Transportation and Price, Facilities N Comfort, Communications. Dependent Variable: Overall Satisfaction
6.19: Regression Coefficients Un-standardized Standardized Model Coefficients Coefficients t Sig.
B Std. Error Beta
1(Constant) .609 .058 10.585 .000
Facilities and Comfort .488 .008 .839 59.673 .000
Communication .035 .008 .064 4.499 .000
Transportation and Price .167 .007 .318 23.277 .000
Attractions .158 .008 .276 19.480 .000 Dependent Variable: Overall Satisfaction
In the regression analysis, the beta coefficients could be used to explain the relative importance of the four factors (independent variables) in contributing to the variance in tourists’ overall satisfaction (dependent variable). As far as the relative importance of the four factors is concerned, Factor 1 (Facilities and Comfort, B1=0.839, p=0.000) carried the heaviest weight for tourists’ overall satisfaction, followed by Factor 3
(Transportation and Price, B3=0.318, p=0.000), Factor 4 (Attractions, B4=0.276, p=0.000), and Factor 3 (Communication, B2=064, p=0.000). The results illustrate that a one-unit increase in satisfaction with the Facilities and Comfort factor would lead to a 0.839 unit increase in tourists’ overall level of satisfaction with the Tour Packages of KTDC in Kerala, if the other variables being held constant.
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6.5 Testing of Null Hypothesis
Hypothesis 4
Ho: There is no significant difference in the satisfaction level of domestic and foreign tourists with KTDC’s tour packages offered in Kerala.
Ha: There exists significant difference in the satisfaction level of domestic and foreign tourists with KTDC’s tour packages offered in Kerala
Since the data collected were not possessing normality, the Mann-Whitney Test was adopted to test the null hypothesis. Table given below shows the result of hypothesis testing.
Table 6.20: Test Statistics (Mann-Whitney Test)
Tourist Satisfaction Mann-Whitney U 6706.000 Wilcoxon W 34201.000 Z -6.856 Asymp. Sig. (2-tailed) .000 Grouping Variable: Nationality. Source: Survey data
On the basis of the Mann-Whitney test (table 6.20) at 5% level of significance the Null Hypothesis No.’4’ is rejected (since p value is < 0.05) and the alternate hypothesis has been accepted. Therefore, it is to say that there is existing significant difference between the satisfaction level of Domestic and Foreign Tourists.
Figure 6.1 gives a bird’s eye-view of the differences of the satisfaction levels of both domestic and foreign tourists on the 12 dimensions of tour packages. Tables 6.21 and 6.22 facilitate a detailed comparison of the satisfaction levels of both domestic and foreign tourists on the various attributes.
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Figure 6.1: Mean Scores of the Satisfaction of Domestic & Foreign Tourist 5.00 Domestic Tourist 4.75 Foreign Tourists
4.50
4.25
4.00
3.75
3.50
3.25
3.00
Source: Survey data
Table 6.21: Domestic Tourists’ Satisfaction Level (Mean Scores) Mini- Maxi- Std. Attributes N Mean mum mum Deviation Diversity of Attractions 234 1 5 3.63 1.029 Attractiveness of Locations 234 2 5 4.50 .719 Sightseeing Time Allowed 234 1 5 3.91 .805 Arrangements for Sightseeing 234 3 5 4.29 .566 Exploration of Attractions 234 2 5 4.29 .711 Sightseeing Guides 234 3 5 4.33 .555 Coverage of Attractions 234 1 5 4.04 .895 Room Space 234 2 5 4.64 .608 Neat and Hygienic Conditions 234 3 5 4.73 .473 Bedding Facilities Provided 234 2 5 4.64 .578 Air conditioning Facilities 234 3 5 4.60 .593 Bathroom Facilities 234 2 5 4.47 .580 Hotel Location 234 3 5 4.76 .466 Number of Passengers 234 2 5 3.85 .678 Seating Arrangements 234 2 5 3.88 .571 Parking Distance 234 1 4 3.25 .889 Fitness of Vehicle 234 2 5 3.77 .479
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Entertainment Facilities 234 1 5 3.84 .854 Regional Arts & Culture 234 2 5 3.92 .670 Cultural Programmes 234 1 5 3.97 .769 Quality of Food 234 1 5 3.95 .660 Quantity of Food 234 2 5 3.92 .620 Food Serving Time 234 2 5 3.94 .504 Delicious and variety (Menu) 234 1 5 3.65 .762 Drinking Water 234 1 5 3.59 .914 Arrangements for Shopping 234 2 5 3.32 .867 Purchasing Time Allowed 234 1 5 2.74 .902 Market Selected 234 2 5 3.74 .654 Helpful & Courteous 234 2 5 3.97 .876 Quick to React 234 2 5 3.85 .915 Willingness 234 2 5 3.93 .702 Well Informed 234 2 5 3.98 .799 Reasonable Price 234 1 5 3.76 .973 No Price Discriminations 234 1 5 3.79 .762 Value for Money 234 1 5 3.74 .719 Relaxed Atmosphere 234 2 5 3.94 .834 Individual Attention 234 1 5 3.83 1.073 Medical Facilities 234 1 5 3.89 .904 Special Care for aged, disables etc 234 2 5 3.97 .962 Instruction & Directions 234 1 5 3.88 .885 Brochures 234 2 5 3.86 .688 Immediate Response 234 1 5 3.80 .763 Clarity and Accuracy 234 2 5 3.71 .864 Easy Procedures 234 2 5 3.98 .677 Operating Hours 234 2 5 3.92 .630 Networks with Agents 234 2 5 3.70 .659 Proper Planning 234 2 5 3.74 .640 Implementation of Plans 234 3 5 3.96 .627 Time Management 234 1 5 3.61 .853 Valid N (list wise) 234 Source: Survey data
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From the above table it can be seen that the domestic tourists were satisfied with almost all the attributes (values > 0.5 is considered as 1) except three which include ‘Parking Distance’ (3.25), ‘Purchasing time available’ (2.74) and ‘Arrangements for Shopping’ (3.32). They were neither satisfied nor dissatisfied with two attributes and dissatisfied only with one attribute which having the mean score 2.74. Among the satisfied attributes, they were highly satisfied with 7, they are: attractiveness of the locations (4.5), room space (4.64), neatness and hygienic conditions (4.73), bedding facilities (4.64), air conditioning facilities (4.6), bath room facilities (4.47) and hotel location (4.76). Of these six of seven attributes, all are concerned with the accommodation dimension. Therefore, it can be cleared that domestic tourists were highly satisfied with accommodation dimension, neither satisfied nor dissatisfied with Shopping Arrangements and almost satisfied with other dimensions.
Table 6.22 shows the mean scores and satisfaction levels of foreign tourists on various attributes. Table 6.22: Foreign Tourists’ Satisfaction Level (mean scores) Mini- Maxi- Std. Attributes N Mean mum mum Deviation Diversity of Attractions 100 2 5 3.49 1.049 Attractiveness of Locations 100 3 5 4.52 .717 Sightseeing Time Allowed 100 3 5 4.31 .506 Arrangements for Sightseeing 100 3 5 4.48 .522 Exploration of Attractions 100 2 5 4.34 .831 Sightseeing Guides’ Services 100 3 5 4.60 .550 Coverage of Attractions 100 2 5 4.52 .611 Room Space 100 3 5 4.78 .484 Neat and Hygienic Conditions 100 3 5 4.63 .580 Bedding Facilities Provided 100 3 5 4.58 .535 Air conditioning Facilities 100 3 5 4.63 .525 Bathroom Facilities 100 2 5 4.69 .615 Hotel Location 100 3 5 4.70 .482 Number of Passengers 100 3 5 4.27 .566 Seating Arrangements 100 2 5 3.91 .588 Parking Distance 100 2 5 3.45 .833 Fitness of Vehicle 100 3 5 3.83 .428
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Entertainment Facilities 100 1 5 3.83 .943 Regional Arts & Culture 100 2 5 4.18 .796 Cultural Programmes 100 1 5 3.78 .660 Quality of Food 100 1 5 4.00 .696 Quantity of Food 100 3 5 4.03 .611 Food Serving Time 100 2 5 3.95 .557 Delicious and variety (Menu) 100 1 5 3.71 .808 Drinking Water 100 1 5 3.80 .765 Arrangements for Shopping 100 1 5 3.50 .798 Purchasing Time Allowed 100 1 5 3.05 .947 Market Selected 100 2 5 3.72 .621 Helpful & Courteous 100 2 5 3.74 1.011 Quick to React 100 2 5 4.03 .797 Willingness 100 3 5 4.20 .725 Well Informed 100 2 5 3.85 .845 Reasonable Price 100 1 5 3.75 1.149 No Price Discriminations 100 2 5 3.87 .720 Value for Money 100 3 5 4.25 .609 Relaxed Atmosphere 100 3 5 4.21 .782 Individual Attention 100 1 5 4.27 .962 Medical Facilities 100 1 5 4.00 .853 Special Care for aged, disables, 100 2 5 4.35 .796 women etc. Instruction & Directions 100 3 5 4.40 .765 Brochures 100 3 5 4.14 .493 Immediate Response 100 3 5 4.16 .707 Clarity and Accuracy 100 2 5 4.07 .902 Easy Procedures 100 2 5 4.22 .719 Operating Hours 100 3 5 4.00 .532 Networks with Agents 100 3 5 3.88 .556 Proper Planning 100 2 5 3.66 .685 Implementation of Plans 100 3 5 3.82 .626 Time Management 100 2 5 3.76 .726 Valid N (list wise) 100 Source: Survey data It is evident from the above table (6.22) the foreign tourists were much satisfied with 10 attributes which include attractiveness of the locations, arrangements for sightseeing, sightseeing guides’ services, coverage of attractions, room space,
218 neatness and hygienic conditions, bedding facilities, air conditioning facilities, bath room facilities and hotel location. They were satisfied with 38 attributes and have no opinion about the purchasing time allowed. It can be easily understood from a mere comparison of the above two tables that; there is existing significant difference between the satisfaction levels of domestic and foreign tourists.
6.6 Tenability of Hypothesis and Conclusion
It is evident from the above statistical analysis that almost all tourists, domestic as well as foreign, were satisfied with tour packages offered by KTDC in Kerala State. The mean scores indicate that tourists were almost satisfied with all attributes and dimensions except the attributes ‘vehicle parking distance’ (3.31), ‘shopping arrangements’ (3.37), and purchasing time allowed (2.80). The overall satisfaction level shows that 82.34% of tourists were satisfied (including 22.16% highly satisfied), 14.07% have no opinion and 3.59% (i.e. only 12 out of 334 tourists) were dissatisfied with KTDC’s tour packages in Kerala. Therefore, it can be rightly said from this result that KTDC has been offered better quality of Tour Packages to tourists in the State.
The results of factor analysis with principal component method identified four major satisfaction determinant factors of tour packages. By supporting this, the regression analysis result shows that about 94% of the variation of tourist’ overall satisfaction was explained by these four factors. As far as the relative importance of the four factors is concerned, Factor 1 (Facilities and Comfort, B1=0.839, p=0.000) carried the heaviest weight for tourists’ overall satisfaction, followed by Factor 3
(Transportation and Price, B3=0.318, p=0.000), Factor 4 (Attraction, B4=0.276, p=0.000), and Factor 3 (Communication, B2=064, p=0.000).
Since the Mann Whitney test (in absence of normality of data collected, this was used to test hypothesis) shows the ‘þ’ value < 0.05, the Hypothesis No. ‘4’ is rejected and the alternative hypothesis, that there exists significant difference between the satisfaction levels of domestic and foreign tourist, has been accepted. This difference may indicate that there were significant variations between the quality of tour packages offered to domestic and foreign tourists.
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CHAPTER - 7 Findings, Suggestions and Conclusion
This Chapter highlights the main findings of the study in a summarised form and put forward the important suggestions required for further improvement based on the major findings. At the end the investigator draws concluding remarks in the light of these findings.
Summary of Findings
From the analyses and interpretations made in the previous chapters of this study, the investigator has identified the following major findings.
1. Kerala is exuberantly resourceful with nature, manmade and heritage based tourism potentials to design and develop varied handsome tour packages for attracting almost all types of tourists to the State. 2. The tourist arrivals in the state show an increasing trend since 1996 with an average growth rate of 6% per year, which include 12.04% in foreign tourist arrivals and 5.04% in domestic tourists as well. 3. The foreign tourist arrivals show a maximum growth rate in 2003, i.e. 26.68% over the previous year 2002, and the domestic tourist arrivals show an increase of 14.28% in 2008. 4. Foreign exchange earnings from tourism in the State show a rapid growth since 2002 and it shows an average growth rate of 30.75 percent per annum. 5. Travel agents, tour operators and other tourism organisation contribute 19.79% to the total inflows of tourist in the State through tour packages. Among them 11 out of 100 is contributed by KTDC offered tour packages alone. This indicates that KTDC has significant role in attracting tourists to the State through tour packages. 6. KTDC is mainly involved in running hotels, motels and resorts, wayside amenities and Ayurveda and Yoga centres; marketing tour packages and conducted tours; and maintaining a high tech reservation system to attract more tourists to the state. 7. KTDC has systematically organised working structure, which shows the hierarchy of positions and their relationship in terms of authority and responsibility, to carry out the tourism promotional efforts and marketing operations. 8. The working structure and overall operations analysis identified that KTDC does not have a Public Relations Department/ Officer in its organisational structure which is very important for a commercial organisation like KTDC in order to support the marketing operations and functions. 9. In the absence of the Public Relations Department/ Officer, Guest relations assistants at the various accommodation units and the marketing department of the Corporation have been looking after this functions and operations. 10. The product mix of the Corporation for tour packages consists of Beach packages, backwater tours, Hill Station tours, Vegetation and Wildlife packages, Cultural and heritage packages, Ayurvedic Rejuvenation packages, Houseboat Cruises, Pilgrim tours, and other integrated and tailor-made tour packages, MICE (Meetings, Incentives, Conferences and Exhibitions) packages, family packages, honeymoon packages etc. 11. The product perspective analysis shows that KTDC has given only little space for adventure, sports, pilgrim and wildlife tour packages compared to other packages such as beach, backwater and Ayurveda. 12. The Corporation has been adopted different well planned strategies in different contexts and times for marketing its different tour packages in the State. 13. The ‘quality growth model’ is the overall strategy of KTDC for marketing its varied tour packages. 14. The other strategies which KTDC has been adopted for marketing different tour packages in different seasons and contexts are: • Customer/ Product oriented strategies: These include undifferentiated (diversification) strategy and differentiated (specialisation) strategy. • Competitor/ price oriented strategies: These consist of high pricing, differential pricing, and demand oriented pricing.
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• Trade/ distribution oriented strategies include both bypassing (direct marketing) strategy and cooperative and collaborative (use of intermediaries) strategy. • Communication oriented/ Promotional strategies consist of regional, state national and international level strategies. 15. The undifferentiated or diversification strategy is adopted by considering the common interests and attitude of all segments (domestic and foreign) of tourist markets for the entire range of tour packages of the Corporation and by considering the seasonal factors as well. 16. The differentiation strategy is adopted with the specific intention to attract those foreign tourists who have interested in beach tours, backwater packages and Ayurvedic Rejuvenation packages especially during the monsoon season. 17. KTDC generally practices high price strategy for its tour packages as it has special focus on quality matters. This policy very often staves off the common people in attracting to the Corporation. 18. KTDC also practices differential pricing (charging different tariff for domestic and foreign tourists) and demand oriented pricing (higher prices during peak seasons and lower rates during off-season). 19. The Corporation has been focusing on both the distribution strategies, i.e. bypassing (direct marketing) strategy and cooperation (through the intermediaries) strategy simultaneously, since it has been maintaining a high tech reservation system, well informative and user friendly website, tourist reception centres and a wide area coverage network of intermediaries at national and international levels. 20. The Central Reservation Cell, Tourism Reception Centres, KTDC Hotels and Resorts, Marketing Executives and agents, the District Tourism Promotional Councils (DTPCs), travel agencies and tour operators are the major distribution channels of the Organisation. 21. The major promotional strategy adopted by KTDC for marketing tourism products and tour packages in the country is the promotion of the slogan ‘Official Host to God’s Own Country’. Under this slogan the Corporation has
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been undertaken several positively-aggressive promotional campaigns such as Visit Kerala 2009, Grand Kerala Shopping festival 2009 etc. 22. Beyond the traditional promotional tools and techniques like brochures, booklets, advertisements in traditional electronic and print medias etc, KTDC also adopts the innovative techniques and strategies such as conducting road shows, grand tourism fairs, festivals and exhibitions, participation in national and international exhibitions and tourism marts, website advertisements, data base marketing techniques, CD ROMs, production of advertising films etc. at regional/ state, national and international levels. 23. As an innovative technique KTDC has adopted mobile technology marketing through SMSs and MMs for local level promotion of tour packages. The SMSs and MMSs are enough capable to disseminate information about the exixting and newly added packages and products of KTDC through the small pictures and texts. 24. ‘Word of mouth’ is the most effective technique for the promotion of tour packages because 35.9% of the tourist came to know about KTDC’s tour packages through their friends and relatives. 25. It is found from the survey that most of the Domestic tourists (29%) come from the home land Kerala, 17% from Karnataka, 15% from Maharashtra, 13% from Tamil Nadu, 7% from Gujarat, and 19% from other states of the Country . 26. The foreign tourists mainly come from England, Switzerland, Canada, America, France, Croatia, Germany etc. 27. The results of the satisfaction survey show that more than 77% of KTDC’s Customers are belonging to higher income groups; this indicates that pricing strategy of the Corporation is not favourable for tourists from lower income group. 28. It is found from the results of statistical analysis of tourists overall satisfaction that 82.34 percent of the total tourists were satisfied, among them 22.16 percentage were highly satisfied, with the tour packages offered by KTDC. 29. The numbers of tourists who were dissatisfied is 12 (3.59%) and the tourists who have no opinion (neither satisfied or dissatisfied) about the tour packages is 43 (14.07%)
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30. The most important attributes which yield maximum satisfaction to both domestic and foreign tourists are attractiveness of locations and all the attributes under the accommodation dimension . 31. The most dissatisfying attribute for both domestic and foreign tourists is purchasing time allowed under the dimension Shopping Arrangements. 32. It is found from the Factor analysis with Principal Component Method that the 4 factors i.e. Facilities and Comfort, Communication, Transportation & Pricing and Attractions are the major quality and satisfaction determinants of the tour packages of KTDC in Kerala. 33. Multiple regression analysis shows that about 94% of the variation of tourist’ overall satisfaction was explained by the four factors identified through the factor analysis such as Facilities & Comfort, Communication, Transportation & Price and Attraction. 34. It is found from the study that there is a significant difference between the satisfaction level of domestic and foreign tourists. The satisfaction levels show that 91% (9% have no opinion) of foreign tourists and 78.63% of domestic tourists were satisfied with the tour packages offered by KTDC. But in case of domestic tourists 16.24% were at break even and 5.13% were dissatisfied. 35. The mean score of the 12 dimensions shows their relative position in terms of tourist satisfaction that Accommodation dimension is first, Attraction second and Safety and Security third. Majority of tourists have no opinion and some were dissatisfied with the ‘Shopping arrangements’ dimension and thus it has been placed in 12 th position.
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Suggestions
The study has been made the following suggestions for the further improvement of the marketing strategies, tourists’ satisfaction and quality of its tour packages.
1. The Corporation has to develop a comprehensive master plan which must be based on a long term basis and should be based on carefully carved out facts as regarding the visitor motivations, their needs, requirements, satisfaction levels and forecast in terms of numbers etc. and it must take into account all the market forces and must be developed in a way so that it is cohesion with the overall developmental plans and strategies. 2. The product perspective analysis shows that KTDC has given much focus on nature based and Ayurveda packages and has given less importance for the packages such as pilgrims, sports, adventure, wildlife, regional culture and arts, folklore and architecture etc. Therefore, being the government agency to promote tourism in the State, the Corporation should develop and market tour packages to attract pilgrims, adventure and sports lovers and those who are interested in regional culture and heritage packages as well. 3. It is clear from the survey data that more than 77% of customers of the Corporation are belonging to higher income groups. This means that KTDC is mainly concerned about the needs and expectations of upper class tourist but less concerned about the lower income groups. Hence, in order to attract the common people to the organisation, it should have to be given special focus in developing and marketing budget packages by considering needs and expectations of the lower income group tourists also. 4. The high and differential pricing strategies often hesitates the common people to approach KTDC and thus stave off them from its products and services. Therefore, in order to attract them to the Corporation, KTDC should practice reasonable and affordable pricing policies and cost leadership strategies for its products and services. 5. In order to get maximum markets coverage, KTDC should expand the distribution networks by establishing new links and good relationships with tour operator, marketing agents and other intermediaries and by appointing
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new marketing executives and personal selling groups in both national and international markets. 6. In order to provide special care and attention for attracting tourists to the organisation, KTDC should establish more tourist reception and information centres, accommodation units and helpline centres across the globe. 7. The Corporation should follow the societal marketing principles in formulating strategies for marketing tourism products in the State. Because the strategies often adopted by the Organisation are not in tune with principles of societal marketing. 8. In order to establish a good relationship with tourists and the local community and ensure the participation of local people in tourism related activities, the Corporation should modify the organisation structure by adding a public relations department or by creating a public relation officer’s position. 9. Implementing a professional public relations campaign can have several benefits: it will build brand, improve the image, increase credibility and will provide a greater return on investment than advertising alone. Public relation is to build a brand and advertising is to maintain the position 10. Internet and IT enabled services should be used at length for marketing tour packages and other tourism products in the state. This will be helpful and more effective to share a wide range of information with the prospective customers at minimum time and to substantiate online reservations. 11. Proper interlinks should be maintained between marketing strategies, vision and mission statements, and established objectives of the organisation in order to incorporate the marketing functions and operations as per the overall objectives and goals of the Corporation. 12. KTDC should use ‘word of mouth marketing ’ strategy effectively. This can be done by sending monthly newsletter to the customers who enjoyed beauty of Kerala and subscribed opt-in email. Design the newsletter with photos and small description of latest photos of major events, cultural festivals etc. There is a possibility that people who visited Kerala tourism destination may refer it to their friends or relatives about Kerala Tourism.
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13. KTDC should realise the importance of front-line sales force. The front-line employees can be the most valuable sales team. This is because they establish the first contact with the customer. 14. The Corporation should be unique with exotic experiences and tour packages. Because a tourist must be able to differentiate the firm from the competition and it must strive to be creative and set itself apart from others. 15. Before going for the development, modification or diversification of any tour packages, the Corporation must have a thorough knowledge of the prevailing market conditions and as much they must emphatically be able to answer questions like: who are the customers; their country, region or state of origin; their social class, educational background and life style; amount of disposable income available with them for travel; most appropriate time of their visit; their age-group, gender and marital status; their motivations, likes and dislikes; their package preferences etc. 16. Proper care should be taken to get tourists feedback about the execution of the tour package or service, because it will be helpful to ascertain the satisfaction levels of tourists and thus to make required modifications and improvements in the future. 17. Even at the community level, branding is critical for success of tourism marketing, because it is much more than just a logo or caption, it is the image and the value. So KTDC should undertake intensive efforts for a strong brand positioning at national and international levels. 18. There should be frequency in advertising and publicity. Because the frequency is more important than variety in placing advertising. People viewing the advertisement should develop Top of Mind Awareness (TOMA). 19. Distribute publicity materials regarding the tour packages at air ports, railway stations, hotels and motels, other tourist places etc. 20. Provide high quality tour packages and other services by providing the required facilities and promote only quality health packages in Ayurveda. 21. In order to make the packages more attractive, KTDC should organise cultural and entertainment programmes with the participation of tourists especially foreigners.
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22. Since Kerala consists of a large variety of resources and attractive destinations, KTDC should be expanded the length and breadth of its product mix by adding more attractive and variety tour packages in order to attract all class and category of tourists. 23. Adopt a strong customer orientation which includes regular research and assessment of their needs, wants and attitudes. 24. Allocate sufficient resources and time for marketing and regularly update a marketing plan for tour packages and other tourism products. 25. It is intelligible from the tourist satisfaction survey that a large number of tourists were either dissatisfied or have no opinion about the transport facilities provided. Hence, the Corporation should give special care and attention to improve the quality of the transport facilities to be provided. It is also suggested that KTDC should set up own transportation system with hi-tech facilities, since the number of tourists are increasing day by day, and thus will be capable to provide high quality transport services. 26. The survey also shows that majority of the tourists were dissatisfied with the shopping arrangements dimension of the tour packages. Therefore, appropriate measures and arrangements should be taken to minimise the inconveniences and difficulties and make shopping an exotic experience in future trips. 27. Tourism has taken initiative to markets beyond the metros to foster skilled manpower. The rapidly growing tourism sector in Kerala is faced with an acute shortage of talent. Hence, KTDC should be focused at developing talent by grooming entry-level candidates and enhancing skills of existing professionals in the Organisation which will help to improve the quality of different tourism products and packages. 28. It has been suggested that in order to attract more and more foreign tourists, advertisement in foreign journals, magazines and newspapers should be given in foreign languages. Besides, translation of tourist’s literature in foreign language through different agencies in another positive steps in this direction. 29. Since Kerala tourism had partnered with Indian Airlines and arranged Kerala cuisine and celebrated “Festival of Kerala”. It would be advisable to distribute
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tourism marketing brochures and digital contents in major Airlines in Europe and India. 30. A quality control program which focuses on improving both the technical quality (the standards associated with what the tourist receives) and the functional quality (the standards associated with how the tourist receives the service) should be carried on from time to time. 31. Communication should be speedy and widespread. Good communication is vital in tourism because it can retain existing customers, attract new customer, increase brand awareness, built business, reduce their perceived risk and gain the trust of their customers through proper communication networks and promotional campaigns. 32. For many destinations and packages tourists and local peoples’ attitude and behaviour often fall into the category of tourist experiences or products, since tourist may be attracted by the culture and hospitality of the resident population. Hence, the importance of fostering local residents’ sensitivity and awareness is to be stressed by organising tourism awareness programmes and campaigns, because inappropriate behaviour of such people can reduce the quality of products or packages.
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Conclusion
In the globalised scenario, since tourism is widely recognised as one of the most vibrant, growing and economically useful activities in the world, competitions among the global players of tourism related service industries are unavoidable. Competition is increasing day by day since more and more countries seek to attract tourists and more companies and organisations become involved in the highly skilled business of transporting, accommodating, sightseeing of attractions and catering for tourists. In order to get a big market share different travel companies and tourism organisations were adopted various innovative as well as competitive tourism marketing methods. The concept of tour package is one among such innovative marketing methods adopted by several organisations across the globe. At present it has become a major contributing factor to the growth of tourism in India as well as worldwide. The increasing growth of tourist inflows in Kerala is also greatly influenced by the tour packages conducted by Kerala Tourism Development Corporation and other different tourism organisations in the state. It can be intelligible from the survey results of this study that tourism organisations in Kerala contribute 19.79 percent of the total inflow of tourist in the State by way of tour packages. Among them 11 out of 100 is contributed by KTDC alone.
Kerala, the ‘God’s Own Country’, is exuberantly resourceful with beaches, backwaters, rivers, hill stations, vegetations, wildlife, holy places, historical monuments, architecture, arts and culture, folk-lore, festivals, Kalaripayattu (the martial art), Kettuvalums (houseboats) cruise, Ayurveda , yoga and meditations, Kerala cuisine etc., These abounding resources made the state as one of the most attractive destinations in Asia and capable to develop and market varied attractive tour packages in order to approximate more and more tourists to the state. Kerala Tourism Development Corporation (KTDC), the government agency to promote tourism in the State, has been engaged in conducting many attractive tour packages, readymade as well as tailor made, along with other tourism promotional activities such as construction of hotels, motels, resorts and wayside amenities; developing and marketing conducted tours; maintaining hi-tech central reservation cell; and
229 conducting fairs, festivals exhibitions etc to promote tourism in the so called state ‘God’s Own Country’.
Even though KTDC does not have a public relations department or public relation officer it has a very systematic organisational structure to undertake tourism promotional efforts and marketing functions in the State. The organisation structure analysis shows that marketing department is capable enough to formulate and implement the marketing strategies for varied tour packages in accordance with vision, mission and strategic objectives of the organisation. The marketing mix and the marketing strategies analysis reveal that KTDC has been adopted ‘quality growth model’ as the overall marketing strategy for tour packages. The other strategies have been adopted by the Corporation include differentiation and diversification (undifferentiated) strategies, high price and differential pricing strategies, bypassing (direct marketing) and co-operation (use of intermediaries) strategies, and promotional strategies at regional, national and international levels.
The Corporation has been adopted undifferentiated (diversification) strategy for its varied packages since it is developing and marketing such packages by considering the common interests, taste and expectations of every tourist/ market segment. Similarly, the differentiated strategy is adopted to allure a particular segment of tourist especially foreigners who have specially interested in beach and backwater tours and Ayurveda packages. Although it has often adopted differential or demand oriented pricing strategy, KTDC generally practices high price strategy since it is more concerned in maintaining the quality of tour packages and tourism products. This strategy often staves off the common people from the Corporation and thus attracts only upper class tourists. It is evident from the satisfaction survey result that 77.8% of the tourists approaching KTDC for its packages are from higher income groups.
KTDC has a strong base for undertaking direct marketing efforts and a world-wide distribution network of intermediaries for tour packages and other products. Hence, it has given equal prominence to both bypassing (direct marketing) and cooperation strategies for distribution. The promotional tools and techniques include conducting road shows, fairs, exhibitions and grand festivals at regional and national levels;
230 advertisements in print and electronic medias, own websites and other internet sources; participation in national and international fairs and exhibitions; traditional promotional tools such as brochures, booklets, pamphlets etc; data base marketing techniques; and CD ROMs, production of tourism films, video clips, use of mobile technology through SMSs, MMSs etc. Although KTDC has undertaken several positively aggressive promotional efforts and strategies at national and international levels, the survey result shows that Word of mouth’ is the most effective technique because 35.9% of the tourist came to know about KTDC’s tour packages through friends and relatives. The marketing agents and intermediaries (29.3%) and KTDC’s own website (18%) also play a crucial role in disseminating information about KTDC’s tour packages among the tourists.
The result of the tourist satisfaction survey shows that 82.34 % were satisfied, 3.59% were dissatisfied and 14.07% have no opinion with the quality of packages offered by the Corporation. Although the Mann-Whitney test of statistical analysis shows a significant difference between the satisfaction levels of foreign and domestic tourists, the mean scores of the attributes and dimensions show that both the tourists were almost satisfied with the packages. They were neither satisfied nor dissatisfied with only one dimension, i.e. shopping arrangements. The factor analysis with principal component method and multiple regression analysis extracted four major factors which explain about 94% of total variation of tourists overall satisfaction and thus determine the quality of tour packages. Such factors include Facilities and comfort (factor 1), Communication (factor 2), Transportation and price (factor 3), and Attractions (factor 4).
However, it can be concluded from the overall analyses and evaluations that KTDC has adopted different well structured marketing strategies and techniques for tour packages in Kerala along with the ‘Quality Growth Model’ as the overall strategy. The Corporation has a scientific organisational structure with a red-blooded marketing department in order to carry out marketing functions and promotional efforts. But the organisation structure does not consists a public relations department or public relations officer which is very import for a commercial organisation like KTDC for the effective marketing of tour packages and other
231 tourism services or products. It is evident from the results of the satisfaction survey that the tour packages offered by the organisation possess much better quality; hence almost all the tourists were satisfied with the quality of packages. Similarly it can be interpreted from the differences in satisfaction levels of domestic and foreign tourists that KTDC has offered low quality packages for Indian tourists as compare to the packages offered to foreign tourists. The result of statistical analyses also shows four major factors that are very import in determining the overall satisfaction of tourist and the quality of tour packages. Therefore, this study suggested that the Corporation should be given special focus on these factors to improve the quality of its varied tour packages and should give special care for improving the shopping arrangements dimension (variable), since majority of the tourists were dissatisfied or have no opinion on this dimension. It is also suggested that KTDC should follow societal marketing principles in formulating and implementing different marketing policies and strategies, especially pricing and promotional strategies, for tour packages.
Hence, to sum up, it can be rightly said from the previous discussions, empirical analyses and critical evaluations that KTDC has very clear and well planned strategies for marketing its varied tour packages in the state of Kerala. The scientifically organised structure of the Corporation, with a very good marketing department consisting of a dedicated team of employees, is very supportive in formulating and implementing timely policies and strategies to carry out marketing operations for tour packages and other tourist’s products and services. This helped the Organisation to contribute much to the tourists’ inflows in the state by means of tour packages and conducted tours. Although there exists significant difference between the satisfaction levels of domestic and international tourists, almost both the category of tourists were satisfied with the tour packages offered by KTDC. From this, it is clear that the quality of the tour packages offered by the Corporation is possessing higher standards as they demanded and it is also clear that ‘quality growth model’ is the overall marketing strategy of Kerala Tourism Development Corporation. Therefore, since the study could not find any supporting evidences for any of the three hypotheses formulated in the initial phase of study, they were not accepted.
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Directions for Future Researches
The present study is provided a general picture of the performance and resource potential (with regard to the attraction dimension) of Kerala Tourism Industry, and the working structure and overall operations of Kerala Tourism Development Corporation. It critically analysed and evaluated the marketing strategies adopted by KTDC for its varied tour packages offered in Kerala and the satisfaction levels of both domestic and foreign tourists with the tour packages in State offered by the Corporation.
However, the study did not analyse and evaluate the effectiveness of the each strategies adopted by the Organisation for marketing its varied tour packages in the State, the marketing strategies adopted for other tourism products and services, tourists loyalty intentions, and the attitude and perception of tourists towards the tour packages offered by KTDC. The study also did not mention the relationship between tourists’ satisfaction and loyalty intension to revisit any of the destinations in Kerala with KTDC’s tour packages, because repeat visitation is an important issue for tourism marketers and researchers. Therefore, future researches should investigate the effectiveness of the marketing strategies adopted by KTDC for varied tour packages, the strategies adopted by the Organisation for marketing other tourism products and services, tourists’ loyalty intensions with the Corporation, attitude and perception of tourists towards the tour packages offered by KTDC in Kerala, and the relationship between tourists’ satisfaction and loyalty intension to revisit any of the destinations in Kerala with KTDC’s tour packages. Further studies could be applied similar research method to other tourism organisations and travel agencies who are organising and marketing tour packages in Kerala or in other states of India so that a competitive analysis in different organisations can be explored.
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APPENDIX 1 Questionnaire: Tourist Satisfaction Survey
Dear Sir/ Madam
Please fill the required information in the blank space or put a Tick ( √ ) mark in the appropriate box. You can give multiple responses also for the item No.8.
1. Gender : Male Female
2. Age : Below 19 20 – 39
40 – 59 60 and Above
3. a. Nationality: …………………... b. State (if an Indian National): ……………………
4. Occupation : Business Professional Salaried
Student Retired/ Unemployed
5. Monthly Income (in Indian Rupees):
20,000 & Below 20,001– 50,000 50,001– 100,000
100,001– 200,000 200,001– 500,000 Above 500,000
6. Travel Companion:
Spouse Family/ Relatives Friends/ Colleagues
Alone Others (Specify) ……………….
7. Major Attractions included in the Package:
Beaches Backwaters Hill Stations
Vegetation & Wildlife Holy Places Ayurveda
Historical Places Adventure & Sports Arts & Culture
Houseboat Cruise Festivals Others ……………
8. Major sources of Information about KTDC and its packages:
KTDC’s Website Internet Sources Traditional Electronic Media
Print Media Personal Sources Agents/ Intermediaries
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The following statements listed under different heads refer to the opinions about the tour packages of KTDC. Please indicate to what extend do you agree with them by putting tick marks in appropriate boxes given against the statements. (Abbreviations indicate: SA - Strongly Agree, A - Agree, N - Neutral, D - Disagree, and SD – Strongly Disagree)
Attractions SA A N D SD a. Diversity of attractions b. Locations selected are attractive and beautiful c. Time allowed for sightseeing is sufficient d. Required facilities are arranged properly for sight-seeing. e. Visitors are free to explore the attractions f. Sightseeing guides’ services are provided g. Visited all attractions mentioned in the itinerary Accommodation a. Room is enough spacious b. Satisfied with neatness and hygienic conditions of Room c. Provided comfortable bedding facilities d. Air conditioning facilities (fan, A/C, ventilator..) e. Satisfied with the bathroom facilities and sanitations f. Satisfied with the physical environment of the location Transportation a. Comfortable with the number of passengers b. Comfortable seating arrangements c. Transportation facilities are provided nearest to locations
d. Satisfied with overall fitness and physical outlook of the vehicle Entertainment a. Satisfied with the facilities available for entertainment b. Provided opportunities to enjoy regional arts & culture c. Arrangements are made to organise cultural programs Food and Refreshment a. Satisfied with the quality of food b. Food is sufficiently served c. Food and drinks are served in time d. Dishes are delicious in taste and variety e. Drinking water is available at any time
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Shopping Arrangements SA A N D SD a. Properly planned and arranged b. Time allowed is sufficient c. Satisfied with the availability of products in market selected Staf f Response a. Staff are helpful and courteous b. Quick to react to visitors requests c. Willing to spare time with visitors d. Well informed to answer visitors queries e. Individual attention is provided Price a. Reasonable price b. Level of price for services provided is acceptable c. Package offers value for money Safety and Security a. Relaxed Atmosphere b. Medical facilities are available c. Arrangements are made for women, aged & disables d. Feel safe and secure with overall environment of the tour Communication a. Proper instructions and directions are given in time. b. Brochures are available in regional and international languages c. Immediate response to visitor queries d. Satisfied with the clarity and accuracy of information
provided Booking a. Easy procedures b. Genuine networks with booking agents c. Convenient with the operating hours Managerial Efficiency a. Programmes are properly planned b. Successful implementation of plans c. Proper time management
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Suggestions
Please give your valuable suggestions for the further improvements of the tour packages.
1. …………………………………………………………………………………………… …………………………………………………………………………………………… 2. …………………………………………………………………………………………… …………………………………………………………………………………………… 3. …………………………………………………………………………………………… …...... 4. …………………………………………………………………………………………… …………………………………………………………………………………………… 5. …………………………………………………………………………………………… ……………………………………………………………………………………………
Thank you very much for your kind cooperation
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APPENDIX 4 The major Tour Packages offered by KTDC
NAME OF PACKAGE PACKAGE INCLUDES PACKAGE TARIFF Natural Double: Welcome drink on arrival Backwaters Rs. 7,848/- Accommodation in Canal View A/C Cottage Packages Single: 2 Breakfast and 2 Dinner Rs. 5,778/- 3 days - 2 nights Seats for 1 hour boat cruise by motor boat (1st March - Sept All Taxes Addl: Person (Above 12 Years) - 50% of the Package Rate 2010) Addl: Child (5 - 12 Years) - 20% of the Package Rate Upgrade Options: Upgrade to Lake View Cottage : Add Rs. 2,850/- on the package rate Upgrade to Superior Lake View Cottage: Add Rs. 5,700 on the package rate Value Additions: Package with transportation from/to Kottayam Railway Station: Rs. 700/- extra Package with transportation from/to Cochin Airport: Rs. 2,800/- extra. Ayurvedic General Body massage for 2 Pax - 1 hr: Rs. 1,750/- extra.
Coast & Cruise Double: Welcome drink on arrival Package Rs.16,661/- Accommodation in Canal View A/C Cottage for 2 nights, 1 4 days - 3 nights Single: Night accommodation in A/C Houseboat, Rs.14,441/- (1st March - Sept Breakfast, Lunch and Dinner All Taxes 2010) Plan: AP Special Discount for Non A/C Houseboat Package - Rs. 1,500/- less. Addl: Person (Above 12 Years) - 30% of the Package Rate. Addl: Child (5 - 12 Years) - 15% of the Package Rate Upgrade Options: Upgrade to Lake View Cottage: Add Rs. 2,631/- on the package rate Upgrade to Superior Lake View Cottage: Add Rs. 5,561/- on the package rate Value Additions: Package with transportation from/to Kottayam Railway Station: Rs. 700/- extra Package with transportation from/to Cochin Airport: Rs. 2,800/- extra General terms for Houseboats: Check In: 12 Noon/Check Out -10 AM Addl. Mattress will only be provided for addl. Person /child. Air Conditioner in House Boat bedrooms will be only from 9 PM to 7 AM. Usage of fans should be restricted only to the night as they are solar powered (usage during day may
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exhaust the power supply).
Island Holidays No. of persons: 2 Accommodation, Breakfast, Lunch, Dinner and 3 days - 2 nights Package Rate: all taxes. (1st April - 30th Rs. 7,499/- 25% discount on the additional food, beverages Sept 2010) Extra person: and Ayurvedic massages. Rs. 2,222/- Children above 12 years will be charged as extra Child(6-12 yrs): person Rs. 1,111/- Packages can be extended on pro rata basis Accommodation in A/C Deluxe/Cottages/Marina View/Golf View
Mystic Holiday 2 person on Accommodation in Deluxe Room 3 days - 2 nights APAI: Rs. 9,850/- Accommodation, Breakfast, Lunch, Dinner and (15th June - 30th Extra person on all taxes. Sept 2010) APAI: Rs. 3,295/- No room service for food on package Child on APAI: children below 5 years sharing with parents - Rs. 2,270/- complimentary Packages can be extended on pro rata basis
Premium Room Accommodation, Breakfast, Lunch, Dinner and 2 persons on all taxes. APAI: Rs. No room service for food on package 11,850/- children below 5 years sharing with parents - extra person on complimentary APAI: Rs. 3,500/- Packages can be extended on pro rata basis child on APAI: Accommodation in Premium Room Rs. 2,500/-
Summer Package rate: The package is for 2 persons and is inclusive of Packages Rs. 7,300/- Breakfast & Dinner (on fixed menu basis) in 3 days - 2 nights Extra Person: Regular Room. (1st April - 14th Rs. 2,146/- Guaranteed boat tickets on any one boat trip on June 2010) Extra Child: payment basis. Rs. 1,068/- Children below 6 years will be accommodated free of cost
Monsoon Package rate: Rs. The package is for 2 persons and is inclusive of Package 5,890/- Breakfast & Dinner (on fixed menu basis) in 3 days - 2 nights Extra Person: Rs. Regular Room. (15th June - 30th 1,856/- (Guaranteed boat tickets on any one boat trip on Sept 2010) Extra Child: Rs. payment basis). 926/- Children below 6 years will be accommodated free of cost
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Periyar Package No. of persons: 2 The tariff is inclusive of accommodation, 3 days - 2 nights Package rate: Dinner & Breakfast for two persons for two (1st June - 30th Rs. 4,999/- nights, taxes, one plantation trip. Sept 2010) Extra Person: Rs. Accommodation in deluxe room 2,600/- Free upgradation to superior rooms subject to Extra Child: Rs. availability 1,300/-
LP - Jungle Room No. 44 Accommodation, Breakfast, Lunch, Dinner Holiday Package Package Rate: Rs. and all taxes. 3 days - 2 nights 25,600/- entry fee to be paid by the guest (April - 31st May 2010 Premium Accommodation, Breakfast, Lunch, Dinner 1st August - 30th Package Rate: Rs. and all taxes. Sept 2010) 23,300/- entry fee to be paid by the guest
LP - Jungle Room No. 44 Accommodation, Breakfast, Lunch, Dinner Monsoon Package Package Rate: Rs. and all taxes. 3 days - 2 nights 23,300/- entry fee to be paid by the guest (1st June - 31st July 2010) Premium Accommodation, Breakfast, Lunch, Dinner Package Rate: Rs. and all taxes. 16,400/- entry fee to be paid by the guest
Beach Holiday No. of persons: 2 Accommodation in A/C Deluxe room for 2 Package Package rate: nights 3 days - 2 nights Rs. 4,577/- Breakfast on 2 Days (1st April - 30th All Taxes Sept 2010) Packages can be extended on pro rata basis Add On's Head & Shoulder Massage for 30 minutes for a couple: Rs.876/- Pick up & Drop (Airport/ Railway Station):Rs.900/- 20% Discount on Food & Beverage
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Seasonal Tour Package 1
DURATION OF PACKAGE 5 NIGHTS / 6 DAYS Day-1: Pick up from Cochin Airport/Rly stn. Transfer to Munnar. Halt at Tea County. Day-2: Sightseeing & halt at Munnar . Day-3: Transfer to Kumarakom, Halt at Waterscapes . Itinerary Day-4: Sightseeing & halt at Waterscapes . Day-5: Transfer to Kochi. Sightseeing and halt at Bolgatty Island Resort . Day-6: Departure and transfers to Cochin Airport/Rly stn.
Price Price in Monsoon Price in Summer Package cost for 2 person, Rs. 36,635/- Rs. 38,820/- transfers in A/C Indica car Package cost for 2 person, Rs. 33,885/- Rs. 36,070/- transfers in Non A/C Indica car Extra person Rs. 8,460/- Rs. 8,860/- Child rate Rs. 4,230/- Rs. 4,430/- Package for 4 persons with Rs. 61,370/- Rs. 65,740/- transfer - A/C Qualis/ Tavera Package for 4 persons with transfer - Non A/C Qualis/ Rs. 58,370/- Rs. 62,740/- Tavera Package for 4 persons with Rs. 64,120/- Rs. 68,490/- transfer - A/ C Innova Room rent with Breakfast & Dinner on fixed menu basis. All transfers, sightseeing & long distance travel as mentioned in the itinerary. Airport or railway stations pick up & drop. Parking, toll and crew allowance. Package Includes Check in/check-out time at the hotel is 12 noon. Exclusions Entry fee inside the sanctuary/forest/boating etc. Minimum 2 persons is mandatory for the package with transportation in an Indica Car with a maximum 3 persons and minimum 4 persons are mandatory for the package with transportation in a Qualis and with a Terms and maximum of 6 persons. Deluxe rooms are provided at all our properties. Packages can be modified according to the requirement of the customers. Conditions After the package is started, no alterations can be made for the itinerary. Confirmation of package will be subject to the availability of rooms at hotels. Boating at Thekkady and Kumarakom, will be arranged on direct payment basis.
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Seasonal Tour Package 2
DURATION OF PACKAGE 7 NIGHTS / 8 DAYS Day-1: Pick up from Cochin Airport/Rly stn. Transfer to Munnar. Halt at Tea County . Day-2: Sightseeing & halt at Munnar. Day-3: Transfer to Thekkady, sightseeing and halt at Aranya Nivas . Day-4: Transfer to Kumarakom & halt at Waterscapes . Itinerary Day-5: Sightseeing and halt at Waterscapes . Day-6: Transfer to Kochi. Halt in Bolgatty Island Resort . Day-7: Sightseeing and Halt at Bolgatty Palace . Day-8: Departure and Transfers to Cochin Airport/Rly stn.
Price Price in Monsoon Price in Summer Package cost for 2 person, Rs. 36,635/- Rs. 38,820/- transfers in A/C Indica car Package cost for 2 person, Rs. 33,885/- Rs. 36,070/- transfers in Non A/C Indica car Extra person Rs. 8,460/- Rs. 8,860/- Child rate Rs. 4,230/- Rs. 4,430/- Package for 4 persons with Rs. 61,370/- Rs. 65,740/- transfer - A/C Qualis/ Tavera Package for 4 persons with transfer - Non A/C Qualis/ Rs. 58,370/- Rs. 62,740/- Tavera Package for 4 persons with Rs. 64,120/- Rs. 68,490/- transfer - A/ C Innova Room rent with Breakfast & Dinner on fixed menu basis. All transfers, sightseeing & long distance travel as mentioned in the itinerary. Airport or railway stations pick up & drop. Parking, toll and crew allowance. Package Includes Check in/check-out time at the hotel is 12 noon. Exclusions Entry fee inside the sanctuary/forest/boating etc. Minimum 2 persons is mandatory for the package with transportation in an Indica Car with a maximum 3 persons and minimum 4 persons are mandatory for the package with transportation in a Qualis and with a Terms and maximum of 6 persons. Deluxe rooms are provided at all our properties. Packages can be modified according to the requirement of the customers. Conditions After the package is started, no alterations can be made for the itinerary. Confirmation of package will be subject to the availability of rooms at hotels. Boating at Thekkady and Kumarakom, will be arranged on direct payment basis.
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Seasonal Tour Package 3
DURATION OF PACKAGE 8 NIGHTS / 9 DAYS Day-1: Pick up from Trivandrum Airport/Rly stn. Transfer to Kovalam. Halt at Hotel Samudra. Day-2: Sightseeing Trivandrum & halt at Hotel Samudra. Day-3: Proceed to Alleppey. Transfer and halt in A/C Housboat. Day-4: Transfer to Kumarakom & sightseeing and halt at Waterscapes. Itinerary Day-5: Transfer to Thekkady. Sightseeing and halt at Aranya Nivas. Day-6: Transfer to Munnar. Halt at Tea County Resort. Day-7: Sightseeing and Halt at Tea County, Munnar. Day-8: Transfer to Cochin, sightseeing & halt at Bolgatty Island Resort. Day-9: Departure and Transfer to Kochi Airport/Rly stn.
Price Price in Monsoon Price in Summer Package cost for 2 person, Rs. 44,435/- Rs. 46,620/- transfers in A/C Indica car Package cost for 2 person, Rs. 42,335/- Rs. 43,520/- transfers in Non A/C Indica car Extra person Rs. 9,325/- Rs. 9,725/- Child rate Rs. 4,790/- Rs. 4,990/- Package for 4 persons with Rs. 73,230/- Rs. 77,600/- transfer - A/C Qualis/ Tavera Package for 4 persons with transfer - Non A/C Qualis/ Rs. 69,425/- Rs. 73,795/- Tavera Package for 4 persons with Rs. 77,230/- Rs. 81,600/- transfer - A/ C Innova Room rent with Breakfast & Dinner on fixed menu basis. All transfers, sightseeing & long distance travel as mentioned in the itinerary. Airport or railway stations pick up & drop. Parking, toll and crew allowance. Check in/check-out time at the hotel is 12 noon. Package Includes (A/C in Houseboat is operational only from 9 PM to 6 AM. Check in to houseboat 12 noon and check out at 9 AM) Exclusions Entry fee inside the sanctuary/forest/boating etc.
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APPENDIX 3
Conducted Tours Operated from Tourist Reception Centre, Kochi
A. Cochin Sightseeing Tour / Cruise – (Twice daily)
1st Tour - 9.30 am to 1.00 pm 2nd Tour - 2.00 pm to 5.30 pm Fare Rs.150/- per person. Places covered : Dutch Palace (Friday Holiday), Synagogue (Friday & Saturday Holiday), St. Francis church (Sunday Holiday), Chinese Fishing Nets with Spectacular view of Willington Island, Kochi Harbour and Bolgatty Island.
B. Full Day Backwater Canal Tour (Daily)
Tour - 8.30 am to 6.30 pm Fare Rs.700/-per person. A unique opportunity to experience the beauty of Kerala Backwaters, flora and fauna, Village life through Kettuvallom (Traditional Rice Boat) and Country Boat (Open Canoe) with traditional Vegetarian Kerala Lunch. The tour is operated at a quite, beautiful village 35 Km south of Kochi. Tourists are transferred to the village by road.
C. Half Day Backwater Canal Tour (Twice Daily) - (By Open Canoe)
Experience the beauty of Kerala Backwater and Village Life 1st Tour - 8.30 am to 1.00 pm 2nd Tour - 2.00 pm to 6.30 pm Fare Rs.400/-per person. The tour is operated at a quite, beautiful village 35 km south of Kochi. Tourists are transferred to the village by road.
D. Sun Set Tour (Daily)
Tour - 5.30 am to 7.00 pm Fare Rs.100/-per person.
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Non Stop Boat cruise during the time of sun set in the Kochi Harbour area with spectacular view of Marine Drive, Chinese Fishing Nets, Bolgatty Island, Willington Island and Kochi Harbour.
E. Cherai Beach Tour (Daily)
Tour - 2.00 pm to 7.00 pm Fare Rs.350/-per person. Places covered: Goshree Bridge (By way), Coir Factory (Sunday Holiday) and Cherai Beach.
F. Metro Village Backwater Tour (Twice daily)
1st Tour - 7.00 am to 11.00 am 2nd Tour - 3.00 pm to 7.00 pm Fare Rs.450/-per person. A cruise into the inland waterways of Kochi with enrapture view of paddy fields, Crab farms, Prawn farms, Chinese Fishing Nets, Bolgatty Island, Willington Island and Kochi Harbour.
G. Kalady-Ezhattumugham - Athirappilly Tour (Daily)
Tour - 7.30 am to 7.00 pm Fare Rs.900/-per person (Inclusive of Breakfast and Lunch). Places covered: Sringeri Matt, Sree Ramakrishna Advaita Ashram, Sree Adi Sankara Keerthi Stambha Mandapam, Ezhattumugham Prakrithi Gramam, Athirappilly Water Falls and Vazhachal Waterfalls.
H. Kochi Darshan (Half Day) (Twice Daily)
1st Tour - 9.30 am to 1.30 pm 2nd Tour - 2.00 pm to 6.00 pm Fare Rs.350/- per person. Places covered: Dutch Palace (Friday Holiday), Synagogue (Friday & Saturday Holiday), St.Francis Church (Sunday Holiday), Chinese Fishing Nets, Maritime Museum (Monday Holiday), Dutch Cemetery and Santa Cruz Cathedral.
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I. Kochi Darshan (Full Day)
Tour - 9.30 am to 7.00 pm Fare Rs.700/- per person. Places covered: Hill Palace Museum (Monday Holiday), Coir Factory (Sunday Holiday), Milky Way Aqua Tourism Centre and Cherai Beach. Tours are operated in A/C vehicles. (All tours will be operated subject to minimum number of tourists) Other Facilities: - We arrange Hotel Reservations, Customized and Package Tours, House Boats, Motor Boats & Car Rentals
Conducted Tours Operated from Tourist Reception Centre Trivandrum
A. Trivandrum
Nagara Darsan: Daily Half Day Tours (A/C Coach)
Timings: Forenoon - 07.30 am to 01:00 Afternoon - 01:30 pm to 07.00 pm Departure: (2 times) 7.30 am & 01.30 pm Starting Point: Tourist Reception Centre, Thampanoor Forenoon finishing Point: Museum Compound Afternoon Finishing Point: Sree Padmanabha Swamy Temple. Duration: 5.30 hrs. Fare: Rs.200 per person Booking hrs: 07:00 am - 09:00 pm
Details of Places Covered
Padmanabha Swamy Temple: A blend of Kerala and Dravidian style of architecture, the temple is noted for its mural paintings and stone carvings. One among the 108 sacred Vishnu temples in India, the presiding deity here is Lord Vishnu reclining on Anantha, the Serpent. Only Hindus are allowed inside the temple in prescribed dress code.
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Puthenmalika (Kuthiramalika) Palace: Situated close to the Sree Padmanabha Swamy Temple, this palace was built by Maharaja Swathi Thirunal Balarama Varma, the King of Travancore who was a renowned poet, musician, social reformer and statesman. The palace museum displays paintings and priceless collections of the royal family. (Monday holiday) Shangumugham Beach: This place is favourite haunt of sunset watchers and beachcombers. An indoor recreation club, the gigantic 35m long sculpture of a mermaid, restaurant shaped like a starfish are some of the attractions here. Veli Tourist Village: This popular picnic spot offering boating facilities lies snuggled where the Veli Lake merges with the Arabian Sea. Children can have a great time at the beautifully landscaped garden dotted with huge sculptures. Other attractions here are the floating restaurant and the floating bridge. Museum, Zoo & Art Gallery : The 19th century Napier Museum built in the Indo- Sarcenic style houses are rare collection of archaeological and historic artefacts. Located near to the Museum is the Sree Chithra Art Gallery which displays original paintings of Raja Ravi Varma, Svetlova and Nicholas Roerich. One of the first zoos in India, the Zoological Park was established here as early as 1859. (Monday holiday)
B. Kanyakumari (Cape Comorin)
Except Mondays Departure: 08:00 hrs Arrival: 9:00 hrs Fare: Rs.500 per person Tour starts and finish at the Tourist Reception Centre, Trivandrum except otherwise stated.
Details of Places Covered Padmanabhapuram Palace: The biggest wooden palace in Asia, it was the erstwhile capital of the Princely State Travancore. It is situated in near Thuckalay on the way to Kanyakumari. This is a well preserved wooden palace with extraordinary murals, exquisite floral carvings and the black glossy floorings. Suchindram Temple : This temple is dedicated to Sthanumalaya (Shiva, Vishnu, and Brahma). The 135 feet tall Gopura, 18 feet Hanuman Statue and the musical pillars are of great architectural value.
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Kanyakumari (Cape Comorin): Kanyakumari is the southernmost tip of India, also the meeting point of the Indian Ocean, Arabian Sea and the Bay of Bengal. Vivekananda Rock Memorial, 133 feet Thiruvalluvar Statue, Kanyakumari Temple, Gandi Memorial and Kamaraj Memorial are the other attractions. It is the only place in India where sunset and sunrise can be seen from one point.
C. Pamba Tour (Sabarimala)
On the first of every Malayalam month Departure: 09.00 pm. Arrival: 11.00 am on next day. Tour starts and finish at the Tourist Reception Centre, Trivandrum except otherwise stated. Other Facilities • Central Reservation to all KTDC Hotels • Reservation of KTDC Package Tours • Arrangements of LTC / Customised tours General Terms & Conditions • Full fare for children above 5 years. • Fares are exclusive of food and entrance fee. • The tour may be re-scheduled or cancelled on account of unforeseen circumstances beyond our control. • The tours are subjected to change / cancellation. Hence it is requested to reconfirm the status with respective Tourist Reception Centres.
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APPENDIX 2
Survey Questionnaire
Dear Sir/ Madam…. Welcome to God’s Own Country
This survey is a part of a scholarly study which intends to collect information directly from tourists in order to analyse the tourist inflows in the state of Kerala. So it is requested to your kindness to respond honestly and truthfully for the following statements/questions.
Please fill the information in the blank space or put a tick mark (√ ) in the squared box.
1. Your name: ………………………………..
2. Your gender: Male Female
3. Nationality: ……………………………
4. Your purpose of visit:
Leisure Pilgrimage
Business Visiting Friends & Relatives
Official Other (Please specify) ……………
5. Which mode of the tour you have opted?
Self Guided Tour Tour Package
Others
6. If you have opted tour package, please indicate the facilitator of the package
Kerala Tourism Development Corporation (KTDC)
Others………………………
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