ETOP-Travel&Tourism

8/8/2019 ETOP-Travel&Tourism

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Organisational Appraisal

Tourism & Travel Industry : Make My TripMake My Trip


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Gross Domestic Product (GDP) Contribution of Travel & Tourism to GDP :

-Expected to rise from 8.6% to 9.0%- Rs. 5,532.5 Bn in 2010 to Rs. 18,543.8 Bn by 2020.

Employment Contribution of Travel & Tourism to Employment :

- Expected to rise from 10.0% to 10.4%- 49,086,000 jobs, in 2010, to 58,141,000 jobs by 2020.

Growth Real GDP growth for Travel & Tourism economy:- Expected to be 6.7% in 2010

& to average of 8.5% per annum over the next decade.

KEY FACTS AT A GLANCE

TOURISM IN INDIA :

DOMESTIC & INTERNATIONAL

TRAVELL

ER


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Visitor Exports Export earnings from international visitors and tourism goods.

- Expected to generate 3.8% of total exports :

- Rs. 519.7 Bn in 2010, to Rs. 1,886.2 Bn in 2020.

Investment Travel & Tourism Investment : Estimated at Rs. 1,628.1 Bn,- 7.2% of total investment in 2010.

- By 2020, this should reach Rs. 6,137.2 Bn, or 7.7% of total investment.

WORLD RANKING

Indian Travel & Tourism economy Ranking:

12 in absolute size worldwide

90 in relative contribution to national economies

4 in long-term (10-year) growth

(181 countries are estimated by WTTC / OE)

KEY FACTS AT A GLANCE

TOURISM IN INDIA :

DOMESTIC & INTERNATIONAL

TRAVELL

ER


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Environmental Threat and Opportunity Profile

Travel & Tourism Industry, in General

& Make My Trip, in particular.

General Environment Factors & their nature

Environment Factors

Regulatory(Legal)

Social(Demography)

Market Environment

Political Environment

Economic Environment

Technological Environment


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EnvironmentFactors Opportunity Threat Neutral

1. Social attitudes, values,

customs X

2. Beliefs, rituals and practices X

3. Life Style X

4. Pollution/Noise X

5. Environmental Hazards X

6. Customer, competitor, and

supplier X X

7. Trade union, media, and

pressure group X

Environment Factors


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Environment Factors in Tourism

y India : Land of Festivals .

y Large population travel for Pleasure & Worky Globally considered as low cost Travel destination

y Cultural diversity attracts million tourists every year .

y Our Rituals/Beliefs have so many 'Yatras'

y Religious trips across country.

y Life style changes : Middle-class values

y Changing to 'Shop & Travel compared to Save-More

y Increase in Noise Levels and Pollutiony Increase in number of Tourists and Modes of Travel

y Security Hazards and Cultural Shocks

y Media, Trade Unions are a threat to Tourism


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Regulagtory(

Legal) Opportunity Threat Neutral

1. Monopolies

legislation/Antitrustregulation X

2. Employment law X

3. Health and safety X

4. Tourist Safety X

5. Entry barriers,

protectionist policies X

Regulatory (Legal)


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Regulary Factors in Tourism

y No Major issues

y

Industry is reasonably protectedy With Health & Safety laws.

y Concern for Foreign Tourists

y Wrong impression with far-reaching & long term effect.

y Easy to enter & Easy to exit industry.y True potential:

y Adopting responsible and sustainable practices on both thedemand and supply sides of the tourism chain.

y Closely interlinked with inclusive growth throughsustainable community participation.

y Sustainable tourism route has been adopted by the Min.of Tourism in the innovative Rural Tourism Project,


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Social

(Demography) Opportunity Threat Neutral

1. Population demographics X

(a)Ethnic composition X

(b)Aging of population X

(c )Regional changes in

population growth and decline X X

2. Social mobility X

3. Lifestyle changes X

4. Attitudes to work and leisure X

5. Education Standards X

6. Health and fitness awareness X7. Multiple income families X

Social(Demography)


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y Influences seasonality of the domestic travel

y

But not the volume of domestic travely Demographics of Foreign Tourist varies .

y Dutch love Goa,

y British are seen more in Rajasthan,

American more in South & so on.

y Ethenic composition Influences seasonality of travelin a particular region.

y

Aging of population Influences type & budget of travelyYoungsters like to fly abroad or Goa

y Elders traveling to Religious places more often.

Social(Demography) Factors in Tourism


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yRegional changes to population growth affect

y

Western areas where population has moved out due toterrorist threat Naxal in west or in Jammu.

y Social Mobility is a Positive factor for Travel &Tourism industry.

y Lifestyle changes are important factor fortriggering many tour operators like Makemytrip

y Changing work & social environment, stress &attitude has affected spending habits & the Travel/Tourism needs for better.

y More money means more spending & more spendingon Tourism.

Social(Demography) Factors in Tourism


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Market

Environment Opportunity Threat Neutral1. Sectoral Growth X

2. Industry Investment X

3. FDI flows Industry X

4. Services X

5. Infrastructure X

With inflow of foreign tourist & more travelers in house has ensured Tourism grows by 9%

every year.FDI flow in tourist industry has been significant as it guarantees better returns

as compared to other sectors. Services provided by most Indian tour operators are just

average baring major players & smaller players remain mainly unreliable to Foreign

Tourist at least & to domestic travelers in many cases. Infrastructure has been a pain,Roads Accidents, Plane accidents

Market Environment


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Political

Environment

Opportunit

y Threat Neutral

1. Government stability X

2. Political values and beliefs shaping

policies X

3. Regulations towards trade and global

business X

4. Taxation policies X

5. Priorities in social sector X

Government stability affects Travel sector the most than anything eg very few would want to

travel to Afghanistan given govt instability & instability in general in the country likewise in

Jammu. Every travel advisory issued by US,UK reduces inflow of tourist in country. Political

values & beliefs affects Travel sector the most eg very few would want to travel to afganistan

given govt instability & instability in general in the country likewise in Jammu. Open policies

toward tourism have helped inflow of Tourist from other countries, Visa on arrival, campaigns like'Athithi Devo Dhava',Incredible India have helped

Tax rebates towards attracting more tourists during common wealth games eg Less Taxes oh

Hotels.sustainable tourism route has been adopted by the Ministry of Tourism in the innovative

Rural Tourism Project, by strengthening the disadvantaged but skilled rural artisan communities

through support to capacity building and vernacular infrastructure, while laying emphasis on the

role of women.

Political Environment


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Economic

Environment

Opportun

ity Threat Neutral

1. National Income X

2. Policy Initiatives X

(a)GNP Monetary policy X

(b)Personal disposable Income Fiscal policy X

3. Savings X

4. Foreign Sector

(a)Personal savings Exchange rates X

(b)Corporate savings Exports/Imports X5. Industry X

Rise in national income & affordability has opened more avenues for domestic travel.

Positive Monetary policies help country grow as well as image of country as rising power

which increases affordability & more visitors are interested in Brand india more than ever.

More affordability means more spending by Travelers on range of travel products in this

study.

Exchange rates have in a way reduced foreign travel for leisure & in turn increased

domestic travel in addition to saving as habit .Corporate saving/Profits increase travel for

more business & for leisure by their employees as wind down factor.Rising Inflation, world

economy & its impact in India in general adversely affects spending power & thus spending

on tourism

Economic Environment


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Technological

Opportunit

y Threat Neutral

1. Technology X2. Process & innovation X

3. Digital revolution X

4. Government spending on research X

5. Government and industry focus on technological

effort X

6. New discoveries/development X

7. Speed of technology transfer X8. Rates of obsolescence X

Technological innovation has made Tourism lot easier, one can book, plan trips on internet,

compare cost & even compare notes & feedbacks with fellow travellers.Change in

Business scenario has forced travel industry to use innovative process MakeMyTrip on

mobile is one example. Others are travelouge,videos available on internet & company

sites. Not much spending in this sector on technology.Toursim is about ideas nowcustomers can choose packages like Adventure Heritage tours which were unheard of few

years agaon.Technological advances have further enabled Tour operators to analyze the

trend & adjust their offerings accordingly thus creating more choices & more profits!

Technological Environment


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ETOPFactors Sub factor opportunity threats Neutral

Neutral Law making,Tax policy, Pricecontrol, InternalEnvironment

legal Employmentlaw, Govt. policy

economical Interest rate,Inflation,exchange rate

Socio culture

technological

competitor


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SAP analysisfactors strategy strength weakness Neutral

Marketing mix P 1

P 2

P 3

P 4

HR

Finance

Productionoperation

system


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ETOP-Travel&Tourism

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