CHAPTER - 1

INTRODUCTION

INTRODUCTION TO TOURISIM:

Since the beginning of time humans have traveled. Food, water, safety or acquisitions of resources
(trade) were the early travel motivations. But the idea of travel for pleasure or exploration soon
emerged. Travel has always depended upon technology to provide the means or mode of travel.
The earliest travelers walked or rode domesticated animals. The invention of the wheel and the
sail provided new modes of transportation. Each improvement in technology increased
individuals' opportunities to travel. As roads were improved and governments stabilized, interest
in travel increased for education, sightseeing, and religious purposes. One of the earliest travel
guides was written by Pausanias, a Greek, which was a 10 volume Guide to Greece, for Roman
tourists in 170 A.D.

Tourism is a collection of activities, services and industries that delivers a travel experience,
including transportation, accommodations, eating and drinking establishments, retail shops,
entertainment businesses, activity facilities and other hospitality services provided for individuals
or groups traveling away from home. The World Tourism Organization (WTO) claims that
tourism is currently the world’s largest industry with annual revenues of over $3 trillion dollars.
Tourism provides over six million jobs in the United States, making it the country's largest
employer.

Definition of Tourism

Mathieson and Wall (1982) created a good working definition of tourism as,

"The temporary movement of people to destinations outside their normal places of work and
residence, the activities undertaken during their stay in those destinations, and the facilities created
to cater to their needs."

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 According to Macintosh and Goeldner (1986) tourism is,

"The sum of the phenomena and relationships arising from the interaction of tourists, business
suppliers, host governments and host communities in the process of attracting and hosting these
tourists and other visitors."

According to United Nation World Tourism Organisation (UNWTO),

“Tourism is a social, cultural and economic phenomenon which entails the movement of people
to countries or places outside their usual environment for personal or business/professional
purposes.”

Based on the UNWTO definition on tourism, tourism could be categorized as:

• Domestic Tourism

Domestic tourism involves trips made by local residents within their own countries.

Example: An Indian, who lives in Patna, takes a business trip to Delhi.

• International Tourism

International Tourism involves trips between 2 countries. To a certain country, visits by

residents of that country to another country are her outbound tourism; visits to that country by
residents of another country are her inbound tourism.

Example: Trips between India and Japan. India as the point of origin/point of destination:

1. Visits made by India residents to Japan are India’s outbound tourism.

2. Visits made by Japanese to India are India’s inbound tourism.

Definitions of “Tourist”

The International Conference on Travel and Tourism Statistics convened by the World Tourism
Organization (UNWTO) in Ottawa, Canada in 1991 reviewed, updated, and expanded on the work
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of earlier international groups. The Ottawa Conference made some fundamental recommendations
on definitions of tourism, travelers, and tourists. The United Nations Statistical Commission
adopted UNWTO’s recommendations on tourism statistics on March 1993.

1.Tourists: Visitors who spend at least one night in the country visited.

2.Crew members: Foreign air or ship crews docked or in lay over and who used the accommodation
establishments of the country visited.

3.Excursionists: Visitors who do not spend at least one night in the country visited although they
might visit the country during one day or more and return to their ship or train to sleep.

4.Cruise passengers: Normally included in excursionists. Separate classification of these visitors

is nevertheless preferable.

5.Day visitors: Visitors who come and leave the same day.

6. Crews: Crews who are not residents of the country visited and who stay in the country for the
day.

7. Members of armed forces: When they travel from their country of origin to the duty station and
vice versa.

8. Transit passengers: Who do not leave the transit area of the airport or the port in certain
countries, transit may involve a stay of one day or more. In this case they should be included in
the visitor statistics.

9. Purpose of visit: Main purposes of visit as defined by the Rome Conference (1963).

• Travellers

Any person who is taking a trip within or outside his/her own country of residence irrespective of
the purpose of travel, means of transport used, even though he/she may be travelling on foot.

• Tourist

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A tourist is a person who travels to destinations outside his/her residence and working place, and
stays for at least 24 hours, for the purpose of leisure or business.

• Excursionist

An excursionist is a person who temporarily visits a destination and stays for less than 24 hours,
for the purpose of leisure or business, but not for transit.

Examples:

1. A Canadian resident takes a short trip to the USA without staying overnight.

2. A Hong Kong resident goes to Shenzhen shopping without staying overnight.

Visitors

• International visitor

Any person who travels to a country other than that in which he/she has his/her usual residence
but outside his/her usual environment for a period not exceeding twelve months and whose main
purpose of visit is other than the exercise of an activity remunerated from within the country
visited.

• Domestic visitor

Any person residing in a country, who travels to a place within the country but outside his/her
usual environment for a period of not exceeding twelve months and whose main purpose of visit
is other than the exercise of an activity remunerated from within the place visited.

Tourist (overnight visitor)

• International tourists

A visitor who visits another country and stays at least one night in a collective or private
accommodation in the country visited.

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• Domestic tourists

A visitor who stays at least one night in a collective or private accommodation in the place visited
within his/her own country.

Excursionist (same-day visitor or day tripper)

• International excursionist

A visitor who does not spend the night in a collective or private accommodation in the country
visited.

• Domestic excursionist

A visitor who does not spend the night in a collective or private accommodation in the place visited
within his/her own country

History of Tourism

Roman Empire Period

During the Roman Empire period (from about 27 BC to AD 476), travel developed for military,
trade and political reasons, as well as for communication of messages from the central government
to its distant territories. Travel was also necessary for the artisans and architects “imported” to
design and construct the great palaces and tombs. In ancient Greece, people traveled to Olympic
Games. Both the participants and spectators required accommodations and food services. Wealthy
Romans, in ancient times, traveled to seaside resorts in Greece and Egypt for sightseeing purpose.

Middle Age Period

During the Middle Age (from about AD 500 to 1400), there was a growth of travel for religious
reasons. It had become an organized phenomenon for pilgrims to visit their “holy land”, such as
Muslims to Mecca, and Christians to Jerusalem and Rome.In the 16th century, the growth in
England’s trade and commerce led to the rise of a new type of tourists - those traveled to broaden
their own experience and knowledge.

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17th Century

In the 17th century, the sons and daughters of the British aristocracy traveled throughout Europe
(such as Italy, Germany and France) for periods of time, usually 2 or 3 years, to improve their
knowledge. This was known as the Grand Tour, which became a necessary part of the training of
future administrators and political leaders.

Industrial Revolution Period

The Industrial Revolution (from about AD 1750 to 1850) in Europe created the base for mass
tourism. This period turned most people away from basic agriculture into the town / factory and
urban way of life. As a result, there was a rapid growth of the wealth and education level of the
middle class, as well as an increase of leisure time and a demand for holiday tourism activities. At
that time, travel for health became important when the rich and fashionable Europeans began to
visit the spa towns (such as Bath in England and Baden - Baden in Germany) and seaside resorts
in England (such as Scarborough, Margate and Brighton).

19thto20thCenturies

In the 19th and 20th centuries, the social and technological changes have had an immense impact
on tourism. Great advances in science and technology made possible the invention of rapid, safe
and relatively cheap forms of transport: the railways were invented in the 19th century and the
passenger aircraft in the 20th century. World War II (AD 1939-1945) was also the impetus for
dramatic improvements in communication and air transportation, which made travel much easier
today than in earlier times.

1980s

The 1980s were called the boom years. Business and leisure travel expanded very rapidly. The
baby-boomers were coming of age and had the money to spend. These travellers were looking for

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a variety of travel products from exciting vacation options such as adventure travel, ecotourism
and luxurious travel. There was not only a significant expansion in the travel market but also in
tourist destinations. The fall of the Berlin Wall in Germany in 1989 signified the doom of
communism in Europe. Countries such as Russia and the Czech Republic became new tourist
destinations both for vacation and business travellers.

1990s

The Aviation Industry was facing high operational costs, including wage, oil prices, handling fee
of Central Reservation System (CRS), landing charge of the air crafts and advertising fee etc.
During this decade, CRS also marched towards more sophisticated technology. It became possible
for agents to book a huge inventory of travel products, such as hotels, car rentals, cruises, rail
passes, and theatre tickets from the CRS. The introduction of “ticketless traveling” (electronic
ticket) brings benefits to the airlines by cutting the amount of paperwork and cost of tickets. At
the same time, passengers do not have to worry about carrying or losing tickets. Although,
electronic ticketing does not bypass the travel agents as intermediaries, it makes it easier for the
airline to deal directly with consumers. The advance in technology also allows the airlines and
other travel suppliers to sell directly to travellers through the Internet and interactive kiosks at
airports. The kiosks at the airport usually sell hotel accommodation, transfer tickets such as bus
tickets between airport and downtown areas and coach tickets from one city to another. Travellers
can now log on to the Internet easily reach for travel information.

Forms of Tourism

Leisure / Holiday Tourism

Leisure/Holiday tourism can be divided into 2 forms:

1. Relaxation

2. Sightseeing

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The destinations for relaxation tourism can be attractive scenery or sun, sea and sand. Examples
of these tourist destinations are the coasts, beaches, countryside and mountainous regions.

Sightseeing tourism includes the tourists who may travel around sightseeing and staying in
different places. The main reasons for sightseeing tourism are a desire for self-education and for
self-esteem. This kind of tourists takes a lot of photographs. Urban centers are their common
destinations, for example, Bangkok, Taipei, Seoul, etc.

Business Tourism

The business travelers may travel for various purposes, for example, trade, meeting, convention
and exhibition. Business people buy similar products as do other tourists. They would also spend
money on entertainment and recreation while they are at their destinations.

The characteristics of business tourism are:

1. Business tourists frequently travel to destinations not usually seen as tourist destinations. Cities
such as London, Frankfurt, New York, Tokyo and Hong Kong are important destinations for the
business travelers.

2. Business travel is relatively price-inelastic; business people cannot be encouraged to travel more
frequently by the offer of lower prices, nor will an increase in price discourage them from traveling.

3. Business travel is not greatly affected by seasonal factors such as variation in climate or
holidays.

4. Business tourists take relatively short but frequent trips to major business destinations.

5. Business tourists may require different services, such as communication facilities or secretarial
service.

6. Business travelers expect, and generally receive, a higher standard of service. Much business
travel is first-class or business-class, and thus receives higher levels of service from the suppliers,
including the travel agencies.

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Cultural Tourism

Cultural tourism is related to the transmission of knowledge and ideas of the destination area or
host community. As tourists are curious about different kinds of experiences and cultures in
various parts of the world, they travel to learn and experience the culture of a tourist destination.
This becomes the prime motivational force for their travel. This kind of tourist likes to visit
museums and attend musical, theatrical or folklore performances.

Eco-tourism

Tourists of this kind enjoy traveling to natural areas. They will minimize their impact on the
environment as well as protect the natural resources during their travel. Therefore, eco- tourism is
characterized as a force for conservation and preservation of nature. For eco- tourism, the
managing authority of wildlife areas (e.g. national parks) will spend most of the income from
tourists (e.g. entrance fees and donations, etc.) on the conservation work in the area. In some areas,
the authority may offer tour guides to educate tourists and modify their behavior so that they will
cause less impact on the environment.

Education Tourism

Students travel to overseas learning or training centers, such as universities, for short or vacation
courses. There is an increasing number of local study tours ranging from half-a- day to a week.
Study tour on board a cruise ship in Hong Kong.

Religious Pilgrimage

People are motivated by their religious beliefs. The demand for this kind of tourism is quite stable.
The destinations of religious pilgrimages usually have a long tradition, such as Muslims to Mecca
and Christians to Jerusalem.

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Health Tourism

Since the development of spas (mineral springs) in the 18th century, there have been visitors to
centers of medical treatment. The spas in the mainland of China and Japan are still popular
attractions in some tour programs.

Visiting Friends and Relatives (VFR)

Some tourists travel abroad because they want to visit their friends and relatives. It is sometimes
said that those visiting their friends or relatives (VFR) are not really tourists at all in the conceptual
sense. They do not usually buy accommodation or much food or drink or other services at the
destination; but they do consume food and beverages from the supermarkets used by their hosts,
and household consumption of other services (e.g. electricity, water) is increased during their stay.
Some of the VFR tourists' destinations may not be tourist attractions, but they are the population
centers where friends or relatives live. Tourists are therefore visiting “non-tourist” areas. In Hong
Kong, the popular VFR destinations are the mainland of China, Canada, U.S.A. and Australia.

Sports Tourism

Many tourists travel for sports. They may:

1. Participate in sports, such as skiing or mountaineering.

2 . Watch sports, such as attending the Olympic Games or World Cup Soccer. For example, the
International Rugby-Sevens Competition in Hong Kong attracts both sport players and spectators.

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The Leisure and Tourism Industry

What is leisure? One dictionary definition states that leisure is ‘time free from the demands of
work or duty when you can rest or enjoy hobbies or sports.

Leisure travel was associated with the Industrial Revolution in the United Kingdom – the first
European country to promote leisure time to the increasing industrial population. Initially, this
applied to the owners of the machinery of production, the economic oligarchy, the factory owners
and the traders. These comprised the new middle class. Cox & Kings was the first official travel
company to be formed in 1758.

The British origin of this new industry is reflected in many place names. In Nice, France, one of
the first and best-established holiday resorts on the French Riviera, the long esplanade along the
seafront is known to this day as the Promenade des Anglais; in many other historic resorts in
continental Europe, old, well-established palace hotels have names like the Hotel Bristol, Hotel
Carlton, or Hotel Majestic – reflecting the dominance of English customers.

The leisure industry is divided into five key components :

1. Sport and physical recreation

Sport is a form of physical activity that usually has some element of competition and is usually
governed by a set of rules. Physical recreation is participating in any physical activity that refreshes
the body and mind. Some sports can be a physical recreation when the competition is not present,
such as cycling, horse riding and sailing. Both sport and physical recreation may be aimed at
improving health and fitness.

Sport can be:

• Active or participative, e.g. playing rugby or badminton

• Passive or spectator, e.g. watching a football match.

2. Arts and entertainment

Arts and entertainment refers to things that take place outside your home which ‘entertain you’.
Again this can include things that you watch, e.g. a musical at theatre, or things that you can

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actively take part in, e.g. bingo, youth theatre, dance troops, orchestras, bands, choirs, karaoke,
and reading groups

Included in this component of the leisure industry, you will find:

• Theatre – including musicals and plays

• Opera

• Classical music, orchestral and individual recitals – including fireworks concerts

• Popular music – including bands, individuals, compilation tours.

• Dance – including ballet, folk and morris dancing

• Cinema – including IMAX

• Cabaret – including tribute bands

• Stand-up comedy

• Exhibitions and Art galleries

• Others – include festivals, magic shows, ice shows, children’s shows.

3. Countryside recreation

Countryside recreation can take place in National Parks, Areas of Outstanding Natural Beauty
(AONB), on the coastline, or on the moors. A place is visited not just for its landscape and scenery,
which may be mountains, hills, valleys, lakes, sand dunes or even just fields, but also for the many
activities that can take place there, such as walking, canoeing, potholing, or skiing. Some charities,
like the Ramblers Association, work to promote walking in the countryside and to improve
conditions for all walkers. Walking is generally a free activity. Other free activities in the
countryside include photography, landscape painting, picnicking, and cycling. These tend to be
‘low’ level activities, suitable for all age groups. However, the countryside increasingly offers
highly active recreational activities, such as caving, skiing, snowboarding, climbing, mountain
biking, and on the coast, a variety of water sports such as windsurfing and sailing.

4. Home-based leisure

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It is not always necessary to leave your home to take part in leisure activities. Home- based leisure
includes:

• Music – including playing and listening

• Television related entertainment

• Crafts

• Home improvements and gardening

• Internet-based leisure

• Reading

• Games – including interactive game

5. Play- and activity-based leisure

Play-based leisure is activities that are mainly associated with children. Examples range from
‘paint a plate’ to bouncy castles for children. Activity-based leisure is a fast-growing component
of the leisure industry. Many new activities have been introduced as people are not content to just
sunbathe when on holiday or just walk when visiting the countryside. Examples of activity-based
leisure include whitewater rafting and aerial adventures like forest adventure courses that involve
rope bridges and zip slides for older children, teenagers and adults.

Remember that play- and activity-based leisure activities are available in towns, cities and seaside
resorts, as well as in the countryside. Many types of leisure in this component are free, such as
mother and toddler playgroups, local park playgrounds for younger children, beach activities such
as paddling, swimming, or body boarding for older children, and tea dances or power-walking for
older people.

The leisure and tourism industry is one of the largest and fastest growing sectors in the UK and
the world. In the UK in 2008, the tourism industry employed over 1.45 million people. The leisure
industry is constantly changing and developing as many new and exciting activities are introduced,
such as the Go Ape High Wire Forest Adventure. Similarly the tourism industry is also constantly
changing to keep up with new developments and social trends. This unit will explore the reasons
why UK leisure and tourism organisations need to adapt to the rapid pace of change.

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INDIAN OUTBOUND TOURISM

Asian Century refers to the dominant role played by Asia in the 21st century, because of its
growing economic clout and global demographic trends. This term has gained credence following
the rapid economic growth of China and India.

Free Independent Travel (FIT) from India is set to make further gains over the next decade, as
more Indians gather further experience and confidence in travelling overseas. India’s growing
luxury market is set to exceed US$10 billion by 2014. From about US$3.66 billion in 2007, the
luxury market has more than doubled to US$7.58 billion in 2012. This will be boosted by a new
class of wealthy who are termed as the ‘closet customers’ who have joined the traditionally rich
segment contributing to higher luxury sales. The rich are not confined to the primary cities of
Mumbai, Delhi, Chennai, Kolkata and Bangalore. Secondary cities are showing growth. Travel
trade continues to focus on this segment.

According to a recently released report, Thailand is the leading India outbound travel destination
accounting for nearly 7% of Indian outbound tourists in 2012. Singapore welcomed 6% of Indian
outbound tourists, while Malaysia, UAE and USA were in third, fourth and fifth place respectively.
Other countries like China, Hong Kong, Switzerland, United Kingdom, Australia and Canada are
contributing significantly and will continue to gain a significant share of the Indian outbound
tourism market. Senior travel trade representatives predict that countries such as Japan, Sri Lanka
and Nepal are amongst the top emerging markets for outbound tourism.

First time Indian travelers are more comfortable travelling to short-haul destinations such as South
East Asia due to short flight time of 3-5 hours. Indian travellers will then visit Europe followed by
USA and Great Britain primarily to visit friends and relatives (VFR). USA and Great Britain are
aspiration destination for many Indians.

Following this, they may then visit other long haul destinations such as Australia, New Zealand
and South Africa.

1. South East Asia and Middle East – Closer, cheaper and within comfort zone.

2. Europe – Aspiration and multiple countries in one visit.

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3. USA/Great Britain – VFR and aspiration.

4. Other Long Haul Destinations – Australia, South Africa, Turkey, Egypt, Italy and France.

Indians who holiday on Free Independent Travel (FIT) basis, are usually highly educated, open to
western culture and influences, and living in nuclear families. Parents and children of any age
travel as a family group and usually head for long-haul destinations in search of new experiences.

Leisure travellers are still significant in volume though they are increasingly more sophisticated
and demanding. Mumbai is the leading source of India’s outbound travellers with a market share
of around 25%, followed by Delhi at 22%. With about 20 million Indians and people of Indian
origin living abroad, the visiting friends and relatives (VFR) segment is one of those highlighted
to grow considerably in the coming years.

The biggest players in this segment are marketing Group Inclusive Tours (GIT) where travel trade
offer group package tours of 10-21 days duration. Indians travelling in a group need a coach to
themselves, at least one Indian meal a day, basic sightseeing, shopping and little strenuous activity.
Hotels need enough rooms to accommodate the whole group however; they do not need to be
centrally located. Average sizes of group tours are 40+ people, with fixed departure dates through
the summer season. In Europe, group tours visit 8-10 countries in 12-15 days. Honeymooners will
remain a lucrative travel segment within the Indian travel trade market. Many honeymoons are
sponsored by parents and hence, luxury, off beat and unique destinations are sought after.

Romantic destinations with scenic beauty, art and opera are preferred, especially in Europe. Golf
tourism is also gaining popularity in India.With the growth of the Free Independent Travel (FIT)
market, Indian travelers are looking for more self-drive destinations. Luxury travel has maintained
its resilience and given India the profile of the emerging new luxury client. The critical ‘brag
factor’ has fuelled demand for travel.

India’s growing economy means that more Indian business people are on the move. Being the third
fastest growing global economy and its increasing dominance in international trade has compelled

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many international DMC’s and National Tourism Organisations to have a focused strategy for the
Indian outbound MICE segment.

Business and MICE travel out of India are deemed to be expanding at a greater pace than leisure,
as Indian companies look for business opportunities around the world. In most cases, MICE travel
is often merged with leisure travel as many participants extend their trip to a holiday. Small groups
of 15-20 passengers and incentive groups of 15-100 passengers travel on special tailor-made
itineraries.

MICE groups mainly prefer a direct flight to the destination.According to the International
Congress and Convention Association (ICCA) statistics, India’s share of MICE travel accounts for
US$4.8 billion worldwide travel and currently ranks 27th in the global MICE market. Industry
segments like pharmaceutical, cement, FMCG, IT and financial services are the major contributors
to the Indian outbound MICE sector.

Indian Outbound Tourism:

• India is one of the fastest growing outbound markets in the world and outbound tourist departures
are expected to reach 20.5 million by 2015.

•The U.S. Department of Commerce project that Indians arriving in the United States will grow
72% between 2010 and 2014 from 615,000 to 1,058,000 visitors.

• This dramatic rise in the number of Indians traveling abroad is being driven by rising disposable
incomes, more affordable holiday options and the growth of low-cost carriers.

• Online Bookings: The online travel industry is a USD 800-million industry in India, that is,
about 14% of the entire travel industry. Some of the prominent players in the Indian market:
MakeMyTrip.com; Yatra.com and Cleartrip.com.

• India‘s outbound travel trends: 65% business; 35% leisure/ VFR/ immigrants.

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• Major outbound destinations for Indian travelers are: South East Asia/Asia Pacific, Europe,
U.S.A. and the Middle East. Relatively off beat locations such as Costa Rica, Tahiti, Rio de
Janeiro, Turkey, Seychelles, Tashkent, Fiji, are steadily gaining popularity.

• Cruise and theme parks, apart from unique culinary experiences and wine/scotch trails are
becoming extremely popular as well.

• A significant increase in FIT travel has taken place over the last decade. The long weekend travel
concept is becoming more common, which has increased travelers to take more short-haul
destinations for two to three nights.

• Interesting fact - Indian travelers going to London spend more than even Japanese travelers do.

MICE (Meetings, Incentives, Conferences and Events), including small intimate corporate groups,
are a segment that is growing rapidly. With Indian corporate accounts expanding their footprints
globally, business executives traveling overseas are incorporating work with pleasure by taking
their families.

Luxury Products chosen:

• Luxury Nile cruise, Petra by candlelight, view of the Nazca Lines by helicopter in Egypt.

• A long vacation to Tahiti or Hawaii with island hopping by helicopter.

• Scenic and adventurous journey aboard the Rovos Rail or Blue Train in South Africa.

• Private tent safari experience in the sands of Arabian deserts.

• Exotic escapes to private island resorts in Maldives, Seychelles, Fiji islands and Thailand.

• Gourmet dining and shopping in Italy, France and Switzerland.

Travel Statistics and Trend Watch:

• During the post recession period, the percentage of savings has increased as Indians prefer to
save money for a rainy day and indulge in cautious spending.

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• Honeymooners have their holidays paid by parents as part of their wedding gift and therefore
tend to spend extravagantly when traveling.

• A strong, consumption-driven economy, a large and increasingly affluent middle class, and the
on-going liberalization of air transportation will contribute to a 10% annual growth in Indian
outbound travelers to Asia Pacific over the next three years.

• The top five destinations by percentage growth will be Macau, Papua New Guinea, China,
Cambodia and Malaysia.

• For volume growth, the top five destinations will be Singapore, China, Malaysia, Hong Kong
and the United States.

• Indians are among the highest spenders in key destinations around the region such as London,
Singapore, Australia, Tokyo and Hong Kong.

• Business travel dominates outbound travel and is expected to continue consistently.

• Leisure travelers are increasingly more sophisticated and demanding.

• Mumbai remains the leading source of India‘s outbound travelers with a market share of nearly
33%, followed by New Delhi at 26%.

• Nepal, Singapore and Thailand are the most popular destinations for online bookings.

• 72% of Indians choose travel to Asia for leisure purposes while Europe attracts 18% of Indian
travelers for business and 14% for leisure.

• Nature and environment (62%), culture and art (53%), safety (50%) and hygiene (48%) are the
most important considerations when selecting a travel destination, apart from visa procedures and
flight connections.

• 12% of Indians make their bookings through online travel agents and a majority goes through
regular travel agents or tour operators. 1/5th of travelers would also book directly through
friends/relatives at the destination country.

These are a few important facts about the Indian outbound market:

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1. 20.5 million Indian outbound passengers are estimated by 2015

2. Long weekends in India and close by destinations are making travel in India to a year-round
phenomenon

3. An increase in disposable income and more aspiration to travel

Top aspired destinations for Indians

• U.S.A.

• New Zealand

• UK (London/ Scotland)

• Italy

• Spain

• France

• Switzerland

• Australia

• South Africa

• Dubai

• Thailand

People are traveling more, often for longer periods of time, with extended families, friends, and
children. They want their time away to be cost-effective, with their money going towards both
value-added and exclusive experiences.

In any economic slowdown, tourism is the first sector to get affected. But Indian outbound tourism
proved to be an exception. Even when there is an economic slowdown in India its number of
outbound tourist is rising year-over- year. In percentage terms, India is the fastest growing
outbound market in the world; in terms of numbers it's second fastest after China. India outbound

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tourists' number is forecasted to be less than 50 Million by 2020. On the other hand, India outbound
tourist spending has crossed INR 15 Billion by 2011.

India Outbound Tourists Visits Analysis: Thailand is the leader as it accounts for nearly 7% of
Indian outbound tourists in 2011. Singapore follows Thailand as over 6% tourists visited Singapore
from India in 2011. Malaysia, the United States and China were at the third, fourth and fifth place
respectively. Other countries such as Hong Kong, Switzerland, United Kingdom, Australia and
Canada are contributing significantly and are looking forward to gain a share of India's outbound
tourist share. Sri Lanka, Nepal and Japan are among the top emerging market for India outbound
tourism.

Indian Outbound Tourism Spending Analysis: The United States is ahead of its rivals by
controlling more than 30% of Indian outbound tourists spending. United States has a spending
share of nearly five times more than its closest rival Australia. Singapore, Malaysia and United
Kingdom are holding the third, fourth and fifth spot respectively.

Taking note of the booming Indian outbound tourism, many countries — including Ireland, Spain,
South Korea, U.A.E., Indonesia, Macau and Poland — have recently opened tourist offices in
India. In order to service the growing demand in outbound business, travel agents in India are
hiring new talent and upgrading existing skills and knowledge to incorporate outbound tourism as
part of their total product and service offering. They are either setting up small departments within
the existing structure or expanding aggressively to promote new verticals or companies focused
only on outbound tourism. The major hurdle for the Indian outbound tourism is the lack of industry
body for outbound tourism in India.

Southeast Asian countries such as Thailand, Singapore, Malaysia and others remained the leading
outbound destinations among Indian consumers. These tourist spots were promoted aggressively
by online travel agents such as MakeMyTrip (MakeMyTrip India Pvt Ltd), Expedia (Expedia India
(P) Ltd), Cleartrip.com (Cleartrip Travel Services Pte Ltd) and other via social media websites
such as Facebook. This trend was strongly linked to the low prices offered by these travel agents;
packages costing Rs25,000-30,000 made outbound trips more affordable to more Indian
consumers, many of whom had never previously been able to afford to travel outside the country
due to budget constraints.

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The Indian economy has posted an average growth rate of more than 7% in the decade since 1994.
The Economic Intelligence Unit expects GDP to rise to 6% in the year 2013.

The outbound market continues to grow with an increase in the number of NTOs entering the
market. With demand for better connectivity and more flights, most international airlines have
doubled their frequencies from India and are seeking to increase destinations to operate from
within India. It is one of the fastest growing outbound markets in the world and tourist departures
are expected to reach 20.5 million by 2015. LHW is in the plans of opening an office in Bangalore
that would cater to our customers in South India and allow us to reach out to more secondary cities
across the country.

India is home to some of the world‘s richest people. The Indian luxury market is estimated to reach
USD 30 billion by 2015 and by 2025 India is set to become the world‘s fifth largest consumer
market.

Report by Neilsen along with PATA (Pacific Asia Travel Association) on India outbound
travel:

Indian outbound travellers (12%) are increasingly booking their travel online.

Hot destinations in Asia Pacific – Singapore (24%), U.A.E., Australia, and Malaysia (17%).
Overall, Asian destinations account for 72% of international leisure trips and 63% of business trips
originating in India. Travel to Europe accounts for 18% of Indian traveller business trips and 14%
of pleasure trips.

Of those Indians who travel internationally, 64% named sightseeing as the main purpose of their
trip, while 47% reported they travel abroad to explore new countries. Another 25% of those
surveyed said they travel abroad to relieve stress, have a good time, or visit family and friends.

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Report by European Travel Commission (ETC) and the World Tourism Organization
(UNWTO):

India is one of the fastest-growing outbound travel markets in the world. International tourism
departures from India have grown from 3.7 million in 1997 to 9.8 million in 2007 and international
tourism expenditures have increased from USD 1.3 billion in 1997 to USD 8.2 billion in 2008 and
over 12 million in 2010 and expected to reach over 20 million by 2015.

With more than 1.3 billion inhabitants and GDP increasing by more than 6% every year, the
country offers enormous potential for future growth in outbound travel.

The Indian outbound travel market with special insight into the image of Europe as a destination
covers issues such as travelers behavior and patterns – destination choice, purpose of travel,
spending, holiday activities, and market segmentation, like air transport, the profile and structure
of the travel trade, as well as the media or internet use trends. The report also sets out
comprehensive recommendations on how to best promote a destination in the Indian market.

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The Evolution of Air Travel

Since the first US commercial flight in 1914, the air travel industry has drastically changed.
Flying, once considered risky and reserved for the elite, is now available to almost anyone. Some
lament the early days of flying, calling it the “golden era of air travel.” Seats had more leg room,
fliers dressed to the nines, and hot meals were served. Until the 1970s, security at airports was
practically non-existent. Passengers went from the parking lot to the plane in less than 30 minutes.
The aviation industry, a major player in the US economy, comprises between 4% and 5% of the
GDP. The frequency of flights taken has risen in recent years, as flying is no longer just for the
wealthy. According to an International Air Transport Association (IATA) report from late 2017,
there were about 3.8 billion air passengers in 2016. That number will steadily balloon to 7.2 billion
by 2035. The IATA predicts that most growth will occur in Asia. With an increase in fliers,
airports have had to evolve. Security lines and delays force passengers to wait for their flights.
Passengers demand to be entertained from the moment they pass through security to the moment
they land. Airports must have a variety of shops, bars, and restaurants. At some airports, whole
terminals have been converted into shopping malls. Inflight entertainment is vital to passengers.
On many flights, passengers can watch movies, TV, or even play games on the back of the seat in
front of them. Airlines such as American, Delta, Southwest, and United offer wireless streaming.
Some airlines, such as JetBlue, offer free Wi-Fi upon the aircraft. Until recently, many believed
long lines were here to stay. The rise of smartphones has changed that and made for a much
smoother process. According to SITA, a UK-based air transport communications and technology
company, 83% of passengers carry smartphones. With a mobile boarding pass, a passenger can
go straight from the parking lot to security. Mobile boarding passes are more secure than their
paper cousins and are almost impossible to lose. Airlines use mobile apps and social media to
update passengers on all aspects of their flight from security line wait times to delays and gate
changes. All major airlines have a social media presence today. Passengers no longer need to wait
through busy signals and long hold times to speak with an airline representative. On social media,
dedicated social media employees respond to passengers with concerns quickly. The main factor
behind the increase in flying is a decrease in prices. In 1970, the percentage of people who have
every flown was less than 50%. That percentage rose to over 80% in 2015 due to affordability of

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flights. Total cost is usually the deciding factor for passengers when choosing an airline. Fees for
checked items and other add-ons play a key role. Many believe that the decrease in airfare prices
has created a decline in customer service. Airlines employ fewer workers due to technology. Many
passengers believe it is hard to get hold of an airline employee who can address the concerns they
have. Passengers complain of a lack of legroom on board. Seat Guru reports that legs have as
much as two inches less space compared with a decade ago.

Henry H. Harteveldt, President of the Atmosphere Research Group, a travel

industry research firm, explains “Consumers have shown that they’re willing to put up with an
awful lot, including lack of legroom, lack of amenities, mediocre or worse customer service, dirty
airplanes, and more to save money, and the airline industry has evolved to meet that desire.”
Matthew DeBord, correspondent for Business Insider, states airlines have “spent decades training
the public to expect next to nothing in the way of service.” TripAdvisor, the travel review site,
recently started reviewing airlines. The hope is for passengers to become more concerned with
customer service, forcing airline companies to increase focus on it. Commercial air travel is much
different than it was at its birth. Some is for better, some for worse. Passengers may complain
about the annoyances of flying, but it is currently the safest form of transportation and will likely
only improve.

REASONS FOR VISITING THE COUNTRIES

Reasons for Visiting France

France tops the list of nations with the maximum tourist arrivals in the world. Some of the
important reasons for its top ranking are tourism, shopping, French cuisine, etc. France has a
variety of landscape and geography which attracts tourists for holidaying purposes. Paris is the
entry port to Europe and the fashion capital of the world. France presents an amalgamation of
leisure and fun travel to tourists making it a popular destination. French cuisine is considered as
one of the best in the world. French cuisine and food is the most pleasant experiences of tourists
in France with others mooting for France natural beauty, landscape and abundant tourist spots
including museums being favorite spots visited by tourists. France is at the same time is an
expensive destination for budget travelers. Tourists also feel unpleasant with the people due to
language barrier, which creates communication problems for travelers in the country.

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Reasons for Visiting Turkey

Turkey’s historic past and monuments combined with present efforts to make it a destination for
sport and adventure tourism has makes Turkey a much sought after destination for travel. Turkey’s
culture and cuisine along with its traditional carpet weaving industry are important reasons for
visiting Turkey as per the respondents. Some of the unpleasantness is caused by the language
barrier and the socio-political changes that have taken place since the second of the twienth
century.

Reasons for Visiting USA

United States has the second largest tourist arrivals in the world. The most common reason for
travel to USA is to meet family and friends, discovering new destinations and for work. USA is
the most favored work destination due to its strong economy and development. The cuisine is an
amalgamation of the many communities that have migrated and settled in the US through the
decades. The main attractions are its food chains like MacDonald’s, KFC and Star Bucks which
have made US’s cuisine world famous.

Crime has been cited as the most unpleasant feature of travel in USA. USA is also an expensive
country as the dollar goes strong against many currencies around the world.

Reasons for Visiting UK

United Kingdom boasts for some of the world famous destinations in the world including London.
UK has more than 6.5 million foreign-born populations in the country28. Thus, the largest number
of travelers responded to visit Britain to meet family and friends residing in the UK. UK’s varied
climate and landscape which varies from south Britain to the Scottish Highlands is the second
other reason to visit Britain for holidaying and shopping purposes.

Travelers feel unpleasant about the high cost of travelling in Britain. The people according to many
respondents are unpleasant feature of United Kingdom.

Reasons for Visiting China

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China’s heavy investment into its industries and infrastructural facilities in the past decade has
paid off with China being raned as the third largest country in tourist arrivals in the world. The
important reasons for travel to China are for work and for shopping. Chinese technology boom
and its relatively cheaper products make it a pleasant travelers experience as well as reasons for
travel for shopping and business to the country. Chinese culture, strides made in technology and
infrastructure are some of the pleasant features of China. Unpleasantness to travelers is caused by
the people due to the language barrier which creates lack of communication and unpleasantness
fro tourist.

Reasons for Visiting Indonesia

Indonesia ranks 37th in world tourism rankings by United Nations World Tourism Organization
ahead of India at the 40th position. The most important reason to travel to Indonesia is for work
and holiday and tourism destinations. Indonesia’s culture, heritage sites and natural beauty are
some of the pleasant features accounted by respondents in the primary survey. Indonesia a
developing country has similar problems like India such as poverty, hygiene and cleanliness issues
and disaster management, etc which cause unpleasantness to travelers.

Reasons for Visiting Republic of Korea

An important reason to travel to Korea is for work. . Korea in the past decade is gradually opening
up and has tied up with China and other neighboring countries to attract more tourists. Korea
located in the Far East is appreciated for its culture, natural beauty and scenic locales, its cuisine
and friendly people. Korea’s language divide and single language use creates communication gaps
for tourists giving trouble to tourists. Communication problems lead to fewer interactions with the
people makes them unpleasant features for travelers as identified by respondents.

Reasons for Visiting Malaysia

Malaysia ranks ninth in world tourism rankings for international tourist arrivals in the world.
Malaysia is one of the prime holiday destinations in South East Asia. Malaysia offers a wide
variety of options in terms of beach, and destination tourism. Malaysia is also famous as a shopping
destination with shopping complexes and street shopping being popular among tourists.
Malaysia’s relaxed visa policies for tourist also encourage tourists to visit the country. Malaysian
language is an unpleasant feature according to respondents.

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Reasons for Visiting Singapore

Holiday and shopping, leisure travels are reasons for traveling to Singapore. Singapore’s shopping
districts, beaches; scenic locales around the city are other important reasons for travel to Singapore.
Singapore’s language and people are reported unpleasant features for travelers.

Reasons for Visiting Thailand:

Thailand has the fourth largest tourist arrivals in Asia. Thailand is popular as a holiday and
shopping destination. Thailand’s beaches, shopping facilities and food are pleasant attributes for
travel. The country’s varies locations and cultural heritage are other features attracting tourists.
Crime in Thailand and the language problem are some unpleasant features for Thailand according
to the primary survey.

Indian Outbound Travel Potential:

• The UNWTO predicts that India will account for 50 million outbound tourists by 2020; the Kuoni
Travel Report India‘ predicts that total outbound spending will grow to USD 28 billion by in 2020.

• With over 28 million passport holders in the country who are potential travelers, the source
market for outbound travel is wide and complex because of its size and variety. According to
primary research among the travel trade, the main source regions are west and north (including
central India) together accounting for about 65% of all outbound travel, followed by south (25%)
and east (10%).

• According to Pacific Asia Travel Association (PATA), 40% of all outbound trips by Indians are
for business purposes, while leisure, visiting friends and relatives (VFR) and other reasons each
account for 20% of outbound trips from India.

• Europe commands an estimated market share of about 20% of all Indian outbound departures.
The Indian travel trade estimates that the market for Europe is growing at a steady pace of 5-7%
per annum and that the pace of growth for Europe can be accelerated with greater focus by
European tourism boards on the Indian market

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• 40% of travel to Europe is estimated to be for holiday purposes. Five European destinations
account for a majority of the share of travel from India to Europe – United Kingdom, France, Italy,
Germany and Switzerland.

• According to the Indian travel trade, international leisure travelers belong to the 25- 65 year old
age group, a larger proportion being males (65%) than females (35%). They are well educated and
belong to the upper socio-economic strata of society. The majority are married (75%) and have
children living in the household. Two-thirds of leisure travelers tend to holiday abroad with family.

• In the short-term, a large proportion of potential visitors to Europe are likely to be first-time
visitors, although the majority will have travelled abroad at least once. Families and couples are
likely to be the key customer segments travelling to Europe on holiday. Some travel from groups
of friends and affinity group travelers can also be anticipated.

• The key travel motivation of potential first-time visitors to Europe is a culture/sightseeing

holiday. The key travel motivations among repeat visitors are culture/sightseeing holiday,
touring/driving holiday, snow/ski holiday and holiday in the mountains. Majority of the potential
visitors are likely to undertake a multi-country vacation in Europe.

• In terms of travel destination selection, the top five factors that influence destination selection
for Indians are safety and security; variety of things to see and do; overall image of a holiday
destination; good tourist facilities; and infrastructure; and the ease of obtaining a visa. The travel
trade confirms that travelers will often change their mind about a travel destination if obtaining
visas is a complex or time-consuming process.

• With departures by air accounting for more than 98% of all departures from India, the air travel
market is "clearly on a high".

WTTC: World Travel and Tourism Council:

• WTTC says India will be the third fastest generator of travel and tourism demand from 2010 -
2019 with an annualized growth of 8.2%.

• India shall depict the fifth fastest growth in business travel from 2010 - 2019 at the annualized
rate of 7.6%, only behind China (among large nations)

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MARKET SHARE: PRIVATE PLAYERS

The Indian travel distribution system is fragmented and varied across the country. Whilst there are
a few national retail agencies, most travel trade are small, independent businesses and contribute
a varying percentage of business to Europe. Indian consumers research and book travel using a
combination of traditional travel agencies and online options, however, retail agencies still handle
the majority of outbound travel bookings. Free Independent Travel (FIT) is growing at 25% per
annum. An increasing number of consumers are travelling independently. Thanks to the internet,
more and more people are booking travel online, which is most popular among the young FIT
segment. Although large operators continue to increase FIT products and itineraries, GIT remains
a focus for them too. The travel trade in India remains reactive and last minute. Online travel
booking is becoming increasingly popular for domestic travel, but at present the travel trade still
plays a pivotal role in booking outbound travel. For example, According to Tourism Ireland’s
estimates from a number of different sources, India recorded 21,000 travellers to island of Ireland
in 2012, a 17% increase from 2011.

Wholesalers - Commission level up to 20%

• The traditional wholesaler model has not generally developed in the Indian travel industry. A
few larger travel trade such as Mubeen air travelers, Kuoni, Cox & Kings, MakeMyTrip and Yatra
have developed their own distribution network through smaller independent travel trade.These
smaller independent travel trade are often referred to as franchisees or preferred sales agents.

• The major operators with a pan-India presence are Mubeen air travelers, Kuoni SOTC, Cox
&Kings, Kesari/Strawberi, Club 7, Make My Trip, Yatra, JTB Travels, Vacations Exotica, TUI
and Mercury Travel. Most Indian travel companies operate across all segments of travel, including
Group Inclusive Tours (GIT), Free Independent Travel (FIT), Meetings Incentive Conference and
Exhibitions (MICE) and luxury. These big outbound players have a very large influence in
marketing and selling destinations and also, influencing consumer perception.

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 ➢ There are a few traditional wholesalers that are gaining support from the smaller retail
agents; these include Saltours, Travel Options, Flight Shop and FCM.
➢ An increasing number of foreign tour operators have entered the Indian market in last
two years, usually in partnership with local companies. Larger travel trade agencies are
now franchising to increase their presence in some parts of India. For example, Island
Holidays represents Bahwan tours of Oman.

Retailers – Commission level up to 20%

• The distribution of travel products in India is fragmented with only a few national operators.
Most agencies are small, independent, family-owned businesses such as Strawberi Holidays,
Veena World, Windmill Holidays and Kulin Kumar Holidays.

• Competition between the larger travel agencies is fierce, with aggressive marketing and tactical
promotions in print media. Promotions include cash discounts, early bird discounts, hotel
upgrades, free holidays to other countries/cities such as visits to Canada free on a USA holiday,
‘holiday now, pay later’ schemes, cash back schemes and offers for a companion or child to travel
for free.

• Most large retail agents only market their own brochures.

• Smaller tour operators are growing and they usually promote itineraries that are featured by the
big operators.

• Large travel agencies take reservations from consumers through their own retail networks as well
as from smaller agencies.

• Despite the increase in the online travel segment, traditional retail agencies have not moved to
this platform for bookings yet.

• Indian consumers have a short lead-time for booking their holidays ranging from three to six
weeks on average. Whilst Indians are seasoned travellers, they still prefer to pre-plan the itinerary
prior to their holiday. Most consumers will book through a retail travel agent rather than direct.

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Online travel agencies (OTAs) – Commission level up to 15% - 20% :

• As the Indian outbound market grows, more consumers are using online channels to research and
book. The top four Online Travel Agencies (OTAs) are Yatra, Make My Trip, Expedia, and Clear
trip.

• OTAs receive almost 50% of all web visits to travel sites.

• There has been an increase in online bookings for international flights with the improved reach
and use of the internet, convenience of booking from home and the removal of credit card fees
when booking directly with an OTA or on airline.

• Whilst the online purchase of holiday products is on the rise, most OTAs have now established
agencies or call centers as an alternate distribution channel.

• Traditional and online distribution systems will therefore continue to co-exist over the next few
years as the Indian outbound market grows and matures.

Mubeen air travelers, Cox & Kings and SOTC Kuoni have special brochures targeting the luxury
segment. India is a key Asian market driving growth in this “Asian Century”. Destinations are
actively pursuing this fast developing country. There are 40 countries that offer Visa on Arrival
(VOA) for Indian passport holders and 16 other countries that don’t require a visa if the tourist has
a valid visa for UK, USA or the Schengen countries.

Mubeen air travelers (India) Ltd:

Mubeen air travelers (India) Ltd is the leading integrated travel and travel related financial services
company in the country offering a broad spectrum of services that include Foreign Exchange,
Corporate Travel, MICE, Leisure Travel, Insurance, Visa & Passport services and E-Business. The
company set up its first office in India in 1881.

Mubeen air travelers (India) Limited is promoted by Fairfax Financial Holdings Limited through
its wholly-owned subsidiary, Fairbridge Capital (Mauritius) Limited. Fairbridge is responsible for

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the execution of acquisition and investment opportunities in the Indian subcontinent on behalf of
the Fairfax family of companies.

TCIL’s footprint currently extends to over 235 locations (including 15 airport counters) in 99 cities
across India, Mauritius & Sri Lanka and is supported by a strong partner network of 114 Gold
Circle Partners and 165 Preferred Sales Agents in over 136 cities across India.

Cox and Kings Ltd:

India is one of the largest potential outbound tour markets in Asia. In 1995, Cox & Kings began a
full-fledged in house tour operating activity by designing its own brochure product under exclusive
arrangements with direct suppliers and local agents across the globe. Cox & Kings has been
undertaking path-breaking initiatives to reach out to the travelers through innovative products.
These include:

'Duniya Dekho' Holidays to Europe, USA, Far East, South Africa, Mauritius, Australia and New
Zealand. For the "value for money" traveller

'FlexiHols' is a concept in holidaying where the traveller enjoys all the comforts and convenience
of a planned holiday but at a pace & price that is set by him. This is targeted at the more discerning
Free Individual Traveller

Luxury Escapes - It takes a travel company that has been round for two hundred years, to know
everything about royal treatment. Cox & Kings rolls out a whole new concept in Holidays - Luxury
Escapes. Spoil yourself. Get pampered rotten. Holiday like a king. Join us as we unveil country
after country laced with sinful indulgence and fine living. The finest luxury hotels in the world to
the most exclusive entertainment experiences await you.

Cox & Kings also represents and retails many international third party products including Cosmos,
Rail Europe, Silversea Cruises, Star Cruise, and Escorted Tours to USA etc.

NRI - The NRI Division of Cox & Kings caters to the Non Resident Indians who would like to
travel around the world with Indian families. Cox & Kings organises special tours for these
families where the NRI community would like to travel with like-minded families across the world.
Duniya Dekho & FIT Packages are specifically designed for this Market Segment by this division.

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SOTC Kuoni Travel Group

Kuoni Travel Group, India - a 100% subsidiary of the Kuoni Group - is the leading travel and
tourism company. The company was formed in 1996 through the acquisition of SOTC, India’s
foremost outbound package tour brand and became India’s largest travel company in 2000 through
the acquisition of SITA – India’s No.1 Inbound travel brand. Kuoni India further strengthened its
position in 2006 with the launch of ‘Kuoni’ India’s only travel brand focussed exclusively on the
luxury segment.

Today, Kuoni India is active across virtually every travel segment including Leisure Travel,
Business Travel, Destination Management Services, and Education. The company employs over
1,500 travel professionals.

Kuoni Outbound Division Kuoni is the first and only luxury holiday brand in the country that
exclusively caters to the unique needs of the luxury traveller. Taking holidaying to an all-new
level, Kuoni offers enhanced and distinctive holiday experiences - complete with expert
suggestions from a panel of Kuoni Certified Counselors.

Kuoni India's key outbound travel brand is SOTC. SOTC was acquired by Kuoni Travels in the
year 1996 and is a leader in all segments, namely Escorted Tours, Free Individual Travel, and
Domestic Holidays amongst others. SOTC Corporate Tours is the leader in Incentive, Trade Fair
tours and Sports.

TUI India:

TUI India is a part of TUI Travel PLC which is one of the world’s leading leisure travel companies
operating in over 180 countries. In India it operates as a joint venture with Le Passage to India Pvt.
Ltd. a pioneer Indian tourism company.

2005, 7th of April, a historic day for the travel and tourism industry when a 50:50 joint partnership
was signed between the world’s largest travel group, TUI Travel PLC and Le Passage to India,
India’s leading leisure travel group. This embarked the inception of TUI India as a part of the
beautiful World of TUI. TUI across the globe has always believed in quality and innovation when
it comes to holidays. As one of the world’s largest leisure travel company, TUI focuses on

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maintaining highest quality standards to ensuring that every single holiday that you take, captures
memoirs of smiles and cherishable reminiscences.

Kesari Tours:

Kesari strongly believes and follows the concept of Kaizen "change for the better", refers to
philosophy of continuous improvement of processes which will provide maximum satisfaction to
our Guest. and keep us flexible in dynamic environment to serve them better. Kesari believes in
providing innovative holiday ideas to its guests. It has hence created unique concepts to cater to
travellers ever-evolving needs, which have been acknowledged as innovations in the Indian
Tourism Industry. Naturally, they have also translated into wide smiles on the faces of happy
guests!

Popular Family Tours:

Kesari started its journey by conducting family tours to Indian destinations and then to
destinations worldwide.

Today Kesari offers the largest number of Family tour options in the Indian tourism industry with
more than 60 options for Europe, more than 80 options for South East Asia, 115 in India, and more
than 70 in the rest of the world, not to forget 224 types of Unique Speciality Tours like My Fair
Lady for Ladies, Honeymoon tours for the newly weds,Pilgrimage tours by Marigold, Exclusive
tours for Seniors known as Second Innings, Students Special tours, Chota Break – the escorted
short tours and Agro tours

Strawberi: A division of Kesari, caters to the needs of the individual traveller. These are
customized or tailor-made holiday packages created for you, 'As you like it', to destinations
worldwide.

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LITRATURE REVIEW

The first laid most important step for a researcher is to explore and reviewthe related available
studies on the topic and obtain some guidelines forown research work. The past experience/ work
is always helpful for newresearchers. They learn from the past and make the plan for the future.
Asurvey is made of the existing relevant literature available on the topic.An investigator, too, make
an effort to collect available information andpast studies to go ahead with the new study.The
purpose here is to have a glance into the various researches’ ln thefield, to analyze and critically
examine them and to connect the presentknowledge with earlier studies in order to decide about
the generalframework of the study.

N. Kreiner and N. Kliot (2000) in their article titled, “Pilgrimage Tourism in the Holy Land: The
Behavioural Characteristics of Christian Pilgrims” have viewed that there is a significant
difference between pilgrims‟ and tourists‟ behaviour towards any religious site in spite of the fact
that both had three common elements like discretionary income, leisure time and social sanctions.
The study also highlighted certain parameters like age, socio-economic status and nationality
which are very important for the purpose of studying tourists‟ and pilgrims‟ behaviour. It reveals
that the persons who belonged to low social-economic group come under the category of pilgrims
and those who belonged to high socio-economic group to perceive themselves as tourists. The
study has concluded that although various differences are there between tourists and pilgrims, it is
very difficult to present those differences.

A. Mehta and R.S.Arora (2000) in their article titled, “Tourism Industry in Punjab-An Appraisal
of Promotional Activities” have highlighted that the share of 41 advertisement expenditure to total
management expenses has decreased. Further, published material of the tourism department is
incomplete, unattractive and insufficient for foreign tourists. The study has recommended that the
state government must adopt a standardized form of media for the promotion of tourism industry
in Punjab.

R.Mishra(2000) in his thesis entitled “Pilgrimage Tourism - A Case Study of Brajmandal” has
stated that with the increased mobility of urban class, more and more people are undertaking

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weekend trips. The study has also highlighted the main problems regarding poor infrastructure and
facilities such as accommodation, quality food, shopping areas, public convenience, and
communication and cheating and misguiding etc, faced by. The author has suggested both
operational measures like restructuring tourism in accordance with laws, need for systematic
approach in managing tourism development, interacting with tourists in a healthy manner and
supportive role of non-governmental organizations and operative measures like strategy for
tourism development, creation of a Development Board and creation for the region on the line of
Vatican City to increase the tempo of pilgrimage tourism.

J.K.Sharma (2000) in his book entitled, “Tourism Planning and Development: A New Perspective”
has emphasised on an integrated approach and incremental increase in the quality of service in
tourism for an effective management of tourism. He has said that transportation, services,
information and promotion, physical environment and tourism organizations are the basic
components for planning and developing tourism in a particular region. He has made an attempted
to present an alternative plan and 42 development process which is sustainable, for tourism and
also suggested for conceptualizing sustainable development the importance of forming concepts.

G.S. Batra and R.C. Dangwa (2001) in their book titled, “Tourism Promotion and Development”
have viewed that India has great tourism potential due to its unique cultural and natural attractions.
The potential has not been fully exploited and whatever attempt made in this direction has not met
the expected”. They have further explored immense vistas in Indian tourism.

H.Wilson and J.Venes (2001) in their article titled, “Factors for Success in Rural Tourism
Development” have highlighted the role of rural tourism in the economic development of rural
community. They have viewed that rural tourism could develop easily with active participation of
local government and people. They have indicated several factors namely tourism package, good
leadership, support of local government, funds, strategic planning, coordination between local
people and technical assistance for tourism promotion and so on which are essential for rural
tourism development. The authors have also viewed that rural tourism provides income and
employment opportunities to local people in rural areas utilizing huge natural resources.

M.R.Biju(2002) in his article on “Global Tourism: The Evolutionary Process”, has viewed that the
main reason behind tremendous growth of travel industry is emergence of railways, shipping,
motor car and airplane. Moreover, introduction of paid holiday and mass tourism concept also

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have encouraged travel habits among the people. Further, due to the development of information
technology, people could travel to far off places, which are almost inaccessible a few decades ago.

V. Caprihan and K.Shivakumar(2002) in their article entitled, “Redefining Tourism Marketing

Strategies” have observed that tourists‟ decisions world-wide are negatively influenced by
unfavorable conditions like terrorist attacks, war, epidemics and calamities etc. It reveals that the
Indian Government has adopted various measures like subsidies, tax breaks, and shifts in
marketing strategies and increased advertising to minimize negative impact of unfavorable
conditions. However, India has adopted age old tourism strategies targeting only two countries
U.K. and USA. The author has emphasized on the adoption of innovative and customized tourism
strategies by Indian Government.

S.Gill (2002) in his book entitled, “Tourism and Hotel Management” has provided information
regarding the quality and accountability of hotel services. Today tourism has acquired the status
of modern industry. Both government and private sector consider tourism as an important element
in their planning. This study has analyzed the various aspects of hotel management like hotel rate,
quality of hotel service and hotel accounting.

S. Singh(2002) in his article entitled, “Tourism in India: Policy Pitfalls” has highlighted the need
for managing the impact of tourist and pilgrim mobility in the Indian Himalayas. The study has
shown that heavy flow of pilgrims and tourists during the peak season from April to June lead to
problems relating to accommodation, catering, sewage, sanitation, water supply, tariff and
ecological degradation. The study has suggested the 44 need for travel regulations, education for
visitors, marketing of alternative destinations and targeted marketing to get rid of problems arising
from mass tourism and pilgrimage.

D. Bar and K.Hattab (2003) in their study on “A New Kind of Pilgrimage: The Modern Tourist
Pilgrim of Nineteenth-Century and Early Twentieth-Century Palestine” have stated that tourism
and pilgrimage tourism stand at opposite ends of a continuum with wide range of journey within
these two ends. They have highlighted five factors of motives, duration, religious affiliation, social
background, travelers‟ reaction and services used by tourists which are differentiated pilgrims
from tourists. The authors have revealed that the main reason behind modern tourists‟ travelling
is cultural curiosity, education and desire to enrich themselves with various knowledge and
experience. Despite this, they have found that pilgrims prefer to visit holy sites only during

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religious festivals. The study concludes that while pilgrims most of the time visits only religious
places but the modern tourists visit the holy places and secular places equally.

P.O.George (2003) in his article on “Strategic Management in Tourism” has highlighted that
tourism involves too many intermediaries like government, semi-government and private
organizations providing different hospitality services to visitors. He has emphasized the need for
master plan with long term vision including development of basic tourism facilities such as road,
railways, airport, walkways, drainage, benchmarking and tourism laws for development of
tourism. The author also has recommended a strategic management committee for the
administration of the function of tourism.

M.B.Potdar (2003) in his thesis entitled, “Tourism Development in South Konkan” has shown
that beaches, horticulture, scenic beauty, historical monuments, temples and churches, local folk
arts, handicrafts, food and festivals, biotic life are the resources for tourism. She has analyzed some
problems and suggested remedial measures for better development of tourism in south Konkan.

Romila Chawla(2003) in her book entitled, “Tourism in the 21st Century” has emphasized on the
important features of the tourism industry, its contribution to the national integration and creation
of harmonious social and cultural environment and also suggests the promotion of arts, crafts and
culture to bring about prosperity and sustainable development. She has listed the essential aspects
and challenges of tourism in the twenty first century.

A. Bahuguna(2004) in his article on “Tourism in India: Development Perspective” has stated that
Tenth Five Year Plan considers enhancing India‟s competitiveness as a high tourist destination.
Moreover, he has pointed out that the share of India in world tourism is stagnant with only 0.38
per cent. Further, in case of domestic tourism India has a prominent share of 4.3 per cent
worldwide. She has concluded that India has vast potential for different types of tourism like
ecotourism, pilgrimage tourism and health tourism, which require proper planning.

S.P. Bansal and P.Gautam16 (2004) in their study titled, “Heritage Tourism in Himachal Pardesh”
have stated that globally 37 per cent tourism is cultural motivated and it is growing at the rate of
15 per cent annually. The authors have described that lack of resources, lack of expertise, lack of
ready product, lack of mutual knowledge and 46 minimal marketing are the main reasons affecting
heritage tourism in Himachal Pradesh. They suggest the introduction of entrance fees for tourists

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visiting heritage centers and a separate heritage management board to preserve and promote the
heritage sites.

O.P. Kandari and Ashish Chandra (2004) in their book entitled, “Tourism Development Principles
and Practices” have noted that planning and assessment are important parts of sustainable
development of tourism. They have focused on issues of tourism development, particularly from
economic, ethnic and environmental perspectives and also have explained the goals and strategies
for effective tourism practices and have identified the key issues of carrying capacity and
community participation. He has also stated that role of tourism in rural development is
fundamentally an economic one and can help to sustain and improve the quality of life in rural
areas.

R.K. Singh and D.K.Mishra (2004) in their study on “Green Tourism in Mountain Regions-
Reducing Vulnerability and Promoting People and Place Centric Development in the Himalayas”
have revealed that Manali‟s experience about the environmental problems like acute shortage of
water, overcrowded roads, heavy traffic, excessive garbage, unplanned growth of illegal
constructions and sanitation problems. They have suggested different short and long term
strategies for accommodation, transportation, water, sewage, energy and finance. The study has
suggested that cautious steps must be taken by the state government to avoid mass tourism and
create healthy eco-tourism in Manali.

Saurabh Kumar Dixit (2005) in his study entitled, “Tourism and Economics” has viewed that the
tourist seeks to maximize the benefits he expects from travel experience. Firms providing tourist
goods and services seek to maximize their profits. The government and host community are trying
to utilize the tourist expenditure in their area. He has concluded that tourism can contribute to
poverty alleviation through the creation of employment and changes in the existing employment
practices. Tourism can create jobs, which benefit the poor where specific measures are taken to
recruit and train workers from the poor.

Bhatt and B.S. Badan (2006) in their book titled, “Sustainable Tourism” have summarized that as
tourism provides enormous opportunities, it also brings serious adverse impacts on the
environment, physical appearance, economy, health, safety and social values of the people who

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live in the tourist destination. In response to these challenges, government has to take steps to
create a sustainable and economically successful tourism environment. The authors have suggested
that the Government can develop a code of conduct for the use tourist destination by institutions
and individuals. It is mainly concerned with the economic and environmental impacts of tourism
on the society. D.S. Bhard

M.R.Biju(2006) in his book entitled, “Sustainable Dimensions of Tourism Management” has

examined the global, national and regional evolution of tourism sector. The commercial viability
of tourism depends upon scientific product planning and development of attractive tourism
products. For this skilled manpower is required. The author has stated that in Kerala tourism is
recognized as an important sector for the development on account of its potential for generating
income and employment.

K. Chakrabarty (2006) in his article on “Unemployment and Development of Tourism Industry”

has indicated the tourism industry has created employment especially for hoteliers, restaurant
owners, guides, local shopkeepers, merchants and the like. The remarkable feature of the industry
is that it employs a large number of both educated and uneducated women. Both skilled and
unskilled women are employed in this industry.

H. Sud (2006) in his study on “External Tourism and its Positive Impact on Indian Economy” has
described that India has huge potential for tourism but problems like lack of airline seats, non-
availability of rooms in hotels, and lack of professional expertise to handle tourists discouraged
and advertisement for foreign tourists to prefer India as tourist destination. Moreover, tour
operators overseas never mention India to their clients because of its poor infrastructure facilities.
The study has also highlighted that though India has inadequate tourism infrastructure yet foreign
tourists like to visit India because of its rich culture. These foreign tourists directly assist the rural
economy by staying in local hotels, eating local food and buying local handicraft.

Motiram2007) in his study on “Globalization: Potentials and Prospects of Mass Tourism in India”
has described the impact of globalization on mass tourism in India that is, Beach Tourism,
Mountain Tourism, and Religious Tourism. The study highlights that due to globalization, the
tourism industry has generated more employment, and more foreign exchange earnings. Further,
it facilitated infrastructure development in the country. The researcher has pointed out that India
is the third fastest growing travel and tourism economy in the world after Montenegro and China.

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The author has suggested that India must develop tourism infrastructure to attract international
tourists in large numbers.

T. Winter(2007) in his study on “In Need of New Environmental Ethics for Tourism” has discussed
the present scenario of tourism in Asia. It highlights that within ten years, Asia will have one of
the fastest growing tourist population in the world. Despite this, very little attention is received by
Asian tourists in Asian countries. The author has highlighted that the Asian countries mainly
targeted Western countries for tourism and formulated tourism policies accordingly. Moreover,
they have ignored the needs of Asian tourists. The study has suggested that a balanced approach
which consider both Asian and Western tourists must be adopted by Asian countries while
formulating tourism policy.

A.T. Nzama (2008) in her study on “Socio Cultural Impacts of Tourism on the Rural Areas within
World Heritage Sites - The Use of Kwazulu-Natal, South Africa” has stated that tourism
development has been accompanied by an increase in positive effects such as solutions to the
problem of unemployment, poverty, increased earnings, standard of living and also negative
effects such as overcrowding, exploitation of the locals, 52 erosion of local culture, copying the
dress code, character and behaviour of tourists by the locals. N. Rajasulochana32 (2008) in her
article on “A Critical Review of Rural Tourism Policy in Tamil Nadu Context” has viewed that
most of the ongoing schemes as well as proposed schemes in Tamil Nadu are concentrating only
on religious sites thus reinforcing „temple‟ tourism rather than rural tourism. Other variants of
rural tourism such as sports and adventure tourism, eco-tourism, farm tourism and nature tourism
are ignored. The suggestion has included that Tamil Nadu should learn marketing destination from
Kerala and Goa. Innovation is required for destination marketing and Tamil Nadu should recognize
the significance of branding, packaging, promoting and positioning of its products.

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 CHAPTER -2

COMPANY PROFILE

INTRODUCTION MUBEEN AIR TRAVELS:

One of the Goa’s leading travel company, MUBEEN AIR TRAVELS was incorporated in
march 1982 by IQBAL MOHIDIN . When one is planning to travel abroad on a holiday or a
gainful employment then one can't stop thinking about ' MUBEEN AIR TRAVELS' one of the
oldest(IATA) travel agency located in the heart of Vasco city. Mubeen Air Travels has the
honors of being the only IATA travel agency in Goa to be recognized by the overseas Indian
affair, New Delhi for overseas recruitment. We are a committed IATA AGENCY which
believes in providing prompt, personalized and professional services to all its clients. We have
a team of qualified, dedicated and courteous staff who give utmost priority and courteous staff
who give utmost to the customers’ needs and preference. Whatever may be your travel related
problems; we download them from you and provide you with a comfortable and trouble free
itinerary for all your Domestic and International travels The office is approved by International
Air Transport Association (IATA) for Domestic and International Air Ticketing. A successful
partnership results from hiring the right candidate for a specific job. As every recruitment has
criteria & every company has a specific demand, we understand & value this. We have a data
base of skilled workers and experienced professionals across various industries like Hotel
industry, Engineering and Civil. We meet the manpower requirements in the best possible
manner by fulfilling the demands of each of our clients thereby, bringing the right person for
the right job. We, being a leading hospitality career resource for all those seeking hospitality
employment opportunities and to those who are looking for talent, are growing quickly by
supplying necessary workforce to our clients in various areas. Apart from this, we also conduct
client’s interview in cities like Chennai

Mumbai, New Delhi, Bangalore, Kolkata. Keeping in mind the competitiveness of the market,
we have framed our policies and procedures of providing quality manpower in such a way that
the whole process of recruitment and selection becomes much easier and faster.

From the day of our very existence, we have been effectively matching thousands of people
who are looking for jobs with those offering brilliant employment opportunities in the

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 hospitality industry and Man power in all 6 GCC countries and Malaysia. Our long list of
associates from some of the densely populated cities like Delhi, Mumbai, Hyderabad and where
career opportunities are available on a large scale. We are in trade since 1982 onwards and have
provided a large number of skilled and semi skilled personal to our clients in Saudi Arabia,
Bahrain, Dubai, Muscat, and Qatar. We have a very spacious, ultra modern office in the heart
of the commercial city of Vasco-da-Gama, Goa. Our priority is to provide loyal dedicated and
hardworking staff to our clients. We have a team of qualified staff who specialize in various
fields for pre screening of candidates. We also trade test the technical staff to ascertain their
skill and proficiency. Deployment of selected staff in the shortest possible time is our specialty

Over the years our office has stood the test of time and is now acclaimed as Goa’s most reliable
and reputed recruiting Agency.

COMPANY PROFILE

➢ OUR AIM:
Is to provide prompt and personalized services to every customer.

➢ OUR VISION:
To become one of the leading recruitment consultants thereby, providing quality
manpower solutions to our clients And Contribute to Society.

➢ OUR POLICY:
To be even more perspective of and finely tuned to customer’s needs.

➢ OUR MISSION:
Building and maintaining long term relationship with our clients and customers and
maintain a strong reputable position in the market, With our imaginative business

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 strategies and quality-oriented services, we intend to build a strong regional business
expansion in the competitive market.

OBJECTIVES OF THE STUDY

• To know customer awareness of Mubeen Air Travels Business Associate.

• To identify customer views about Mubeen Air Travels.

• To find out improvisation methods of Mubeen Air Travels Business Association.

• To identify how to improve Marketing and retail channel of Mubeen Air Travels.

• To identify the relation between Mubeen Air Travels and agencies.

SCOPE OF THE PROJECT

• The study was important because it is going to inform the management of Mubeen Air Travels
about customer perception and important feedback of customers.

• The study would be giving a clear idea about the market growth of Mubeen Air Travels and their
competitors in Chennai region.

• The study would indicate in which all the area the company want to concentrate to increase the
sales and market potential.

LIMITATIONS OF THE STUDY

1. The respondents might not have done business with Mubeen Air Travels before.

2. The respondents might be biased.

3. The respondents were resisting much of their time to provide information.

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METHODOLOGY

PRIMARY DATA: A primary source provides direct or firsthand evidence about an event, object,
person or work of art.
SECONDARY DATA: Refers to data that was collected that was collected by someone other than
the user.

Sources of secondary data:

journals , research papers, internet, library books.

RECRUITMENT PROCESS OF MUBEEN AIR TRAVELES:

We are in the trade since 1982 onwards and have provided a large number of skilled and semi-
skilled personnel to our clients in Saudi Arabia, Bahrain, Dubai, Muscat and Qatar. We have a
very spacious, ultra-modern office in the heart of the commercial city of Vasco da gama, Goa. Our
priority is to provide loyal, dedicated and hardworking staff to our clients. Over the years our office
has stood the test of time and is now acclaimed as Goa’s most reliable and reputed recruiting
agency. We have a team of qualified staff who specialize in various fields for pre-screening of
candidates. We also trade test the technical staff to ascertain their skill and proficiency.
Deployment of selected staff in the shortest possible time is our speciality.

SERVICES OFFERED BY MUBEEN AIR TRAVELS:

• Domestic and International air tickets.
• Visa assistance to Dubai, Far east, USA and Europe.
• Travel insurance
• Hajj & Umrah services and ziyarat packages.
• Passport and PCC assistance.
• Emigration clearance For Dubai, Saudi, Kuwait and Doha Qatar.
• Visa stamping for Dubai, Saudi, Malaysia, UK, USA and other countries.

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 • Attestation of Birth, Marriage, Educational Certificates from Various Gulf
consulates.
• Apostille Attestation

INDUSTRIES WE SERVE:
• Information Technology.
• FMCG & Manufacturing.
• Shipping Building & Manufacturing.
• Marine Engineering.
• Off shore and Heavy Engineering.
• Construction Industries.
• Refineries.
• Petro Chemical Plant.
• Marketing & Sales.
• Hotel Industries.
• Medical.
• Engineering & Technical.
• Educational.
• International & health care.
Departmentational Analysis

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 DEPARTMENTATION STRUCTURE:

CEO

MANAGING DIRECTOR

DIRECTOR

FINANCE MARKETING TRAVEL DEP OUTBOUND MICE HR DEP

DEPARTMENT DEPARTMENT DEP DEP

OUTBOUND TRAVEL
AGENT

INBOUND

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SWOT ANALYSIS OF MUBEEN AIR TRAVELS:

➢ STRENGHT:

• The Mubeen air travel agency staff knows (or at least should) what they are selling and can
help the customer to make the right decisions for that particular trip. Agent is bringing
value to the customer.
• Travel agents may have bulk deals with airlines and other suppliers particular for a trip.
• The travel agent can offer services different from what the end customer can book
themselves. The challenge for the travel agent is to reach the customer with this
information.
• The Internet can be hard to navigate with too many options and unclear offers. As a travel
agent you offer “one-stop-shopping”.

➢ WEAKNESS:

• I see that Mubeen air travel agents have a tough time justifying their own value to the
customer. Raise your head and be proud to enhance the customers trip by providing value,
products and information. Having said that, you have to make sure to provide those things,
otherwise you can close shop now. You have to think of yourself as a consultant, NOT an
agent.
• Not adopting to new habits and/or patterns quickly enough. The travel industry has more
or less been standing as onlookers on the technical revolution, giving away huge market
potential to new players in the field.

➢ OPPORTUNITIES:

• Educate the customer, especially millennials and the younger generation since very few of
them know, on what a travel agent does and the benefits.

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 • Embrace technology and use it to enhance the customer experience and ultimately your
own business. Why not start with improving dynamic online packaging to include more
services that just air, hotel and rental cars?
• As we established under threats, the internet is full of too many offers. As a travel agent,
you know how to interpret the “5USD / night all-inclusive offer”. Can you sell this service
to your customers or use it as an argument in your marketing?
• There are fewer agencies out there today than 15 years ago.

➢ THREATS:

• Terrorism and natural disasters. As a travel agent there is no way you can prohibit those
from happening and they might affect the general economy and willingness to travel. What
you can do is to enhance your service levels when bad things happen, i.e. when the ash
cloud hits again you do want to help your customer instead of just referring them to the
airlines website. Consider charging for your services and this is a great revenue stream at
the same time.
• A downturn in the economy will affect people´s travel habits.
• Not being able to inform the customers what you offer.
• Not attracting new blood to the travel business. In order to drive change you will need
entrepreneurs with a vision.

COMPETATORS OF MUBEEN AIR TRAVELS:

• SOTC.

• Kesai Tours.

• Club Mahindra Holidays.

• Expedia.

• Yatra

• Goibibo.

• Makemytri

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