Consumer Perception About TRAVEL HOUSES

Introduction - Theory
Word tour - Latin tornare & Greek tornos Meaning - a lathe or circle; the movement around a central point or axis. English - one's turn. Suffix ism defined as an action or process; typical behavior or quality. Suffix ist denotes one that performs a given action. Tour represents a journey that is a round trip, i.e., the act of leaving and then returning to the original starting point. Thus, one who takes such a journey can be called a tourist. World Tourism Organization (WTO) tourist travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.

Types of Tourism
TOURISM

DOMESTIC
DOMESTIC

INBOUND
INBOUND

OUTBOUND
OUTBOUND

involving residents of the given country traveling only within this country

involving nonresidents traveling in the given country

involving residents traveling in another country

World Highlights of 2009

Hit hard - global slump, outbreak of AH1N1 virus Tourism Economy GDP contracted to 4.8%
World over international tourist arrivals fell by 8% Sector worldwide provided over 235 million jobs Tourism Economy GDP has

0.5% growth in 2010 3.2% in 2011 expected

Real GDP growth - World

average 4.4% expected 3.2% per annum in next 10 years in 2011 expected 0.5% in 2010 -4.8% in 2009

GDP contribution - World

9.6% (US $ 11,151 bn) 9.2% (US $ 5,751 bn)

2020

2010

Investment - World

US $ 2,757 bn 9.4% of total investment

Estimated US $ 1,241 bn 9.2% of total investment

2020

2010

Visitor Exports - World

2020

Growing (in nominal terms) 5.2% of total exports (US$2,160 bn) expected to generate 6.1% of total exports (US $1,086 bn)

2010

Total Employment - World

8.1% = 235,785,000 jobs

1 in 12.3 jobs
2010

2020 1 in 10.9 jobs 9.2% = 303,019,000 jobs

10 Most Visited Countries in 2009

Real GDP growth - India

average 8.5% per annum in

6.7% in 2010

next 10 years

GDP contribution - India

8.6% (INR 5,532.5 bn) (US $117.9 bn)

9.0% (INR 18,543.8 bn) (US$330.1bn)

2020

2010

Investment - India

INR 1,628.1 bn US$ 34.7 bn 7.2% of total investment

INR 6,137.2bn US$ 109.3 bn 7.7% of total investment

2020

2010

Visitor Exports - India

2020

growing (in nominal terms) 2.4% of total exports (INR 1,886.2 bn) or (US$33.6 bn)

2010

Expected to generate 3.8% of total exports (INR 519.7 bn) or (US$ 11.1 bn)

Total Employment - India

10.0% = 49,086,000 jobs 1 in every 10.0 jobs 2010

2020 1 in every 9.6 jobs 10.4% = 58,141,000 jobs

Month wise FTAs in India, 2008-2010

2008 2009 2010

700000
600000 500000

400000
300000 200000 100000

0 Jan %age change Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009/ -17.6 -10.6 -12.9 -3.5 2008
2010/ 16.4 9.9 2009

-1.9 15.5

0.2 8.0

0.6

-8.6 -4.1 -0.9 -0.6 21.0

12.9 1.7

Month wise Foreign Exchange Earnings (in Crore) from Tourism in India, 2008-2010
2008 2009 2010

8000
7000 6000 5000

4000 3000
2000 1000 0 Jan %age change Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2009/ -15.4 -12.3 -11.9 7.6 2008 2010/ 21.6 46.2 24.1 2009

8.7

11.5

28.8 13.5 20.8 13.1 11.9 38.5

11.3 34.1 25.0

No. of Domestic Tourist Visits to all States/UTs in India, 2005-2009

700 600

500
400

300
200 100 0 2004 2005 2006 2007 2008 2009

%age change

7.0

18.0

13.9

6.9

15.5

Various Tourisms in India

Adventure Tourism Wildlife Tourism Pilgrimage Tourism Cultural Tourism

Medical Tourism Rural Tourism

Sports Tourism Wellness Tourism

Education Tourism

Eco Tourism Caravan Tourism

Heritage Tourism

Cruise Tourism Heliport Tourism

INTERNATIONAL TRAVEL HOUSE LTD.

Associate Company of ITC.

Why prefer ITHL?

29 year old company - 29 June 1981 One-Stop-Shop for all travel requirements Membership of IATA, ASTA, JATA, PATA, USTOA, ICCA, UFTAA, WTO, TAAI, ICPB, IATO, and approved by Govt. Of India, Dept. of Tourism. 10 IATA locations, 13 Car Rental Offices, 19 Travel Counters. Provide services on 30 days credit period to Corporates.

Why prefer ITHL?

Clients include NDTV, Infosys, HCL, Citibank, Samsung, Max Hospitals, FICCI, Essel Group. Own Transport Fleet of 900 cars and over 700 trained travel professionals. India's only multi-location Travel Management Company with ISO 9001 accreditation. All offices are on WAN network Provide 24x7 services for 365 days. Backup of bills and receipts kept for 5 years.

IATA

International Air Transport Association (IATA)

an international industry trade group of airlines headquartered in Montreal, Quebec, Canada.

ASTA

American Society of Travel Agents (ASTA) a business improvement organization which represents and defends the business and regulatory public policy interests of travel intermediaries including travel agencies and tour providers.

PATA

Pacific Asia Travel Association (PATA) is a membership association working to promote the responsible development of travel and tourism in the Asia Pacific region.

USTOA

United States Tour Operators Association (USTOA) is a 501(c) registered nonprofit professional association representing the tour operator industry. Its members are made up of companies whose tours, vacation packages, and custom arrangements encompass the entire globe but who conduct business in the U.S.

WTO

World Tourism Organization (UNWTO) It compiles the World Tourism rankings. It is a global body, concerned with the collection and collation of statistical information on international tourism.

UFTAA

United Federation of Travel Agents Associations (UFTAA) founded as a result of a merger of two large world organisations, FIAV and UOTAA, recognizing the need to unify travel agencies and tour-operators into one international federation.

ICCA

International Congress and Convention Association (ICCA) was founded in 1963 by a group of travel agents to exchange information on international congresses and conventions.

JATA

Japan Association of Travel Agents (JATA) seeks to improve the quality of services provided to travelers to and from Japan.

ICPB

India Convention Promotion Bureau (ICPB) is a management oriented organization that has been promoting and establishing India as a preferred MICE (Meetings, Incentives, Conventions & Exhibitions) destination.

TAAI

Travel Agents Association of India (TAAI) was formed towards the end of the year 1951 by a group of twelve leading Travel agents, who felt that the time had come to create an Association to regulate the Travel industry in India. The primary purpose was to protect the interests of those engaged in the industry, to promote its orderly growth and development and to safeguard the rights of the traveling public.

IATO

Indian Association of Tour Operators (IATO) is the National body of the tourism industry. IATO interacts closely with the Government on all critical Issues affecting the Tourism Industry in India with the highest priority to Tourism facilitation. It interacts closely with all Government Ministries / Departments, Chambers of Commerce and Industry, Diplomatic Missions etc.

Services Offered

Business Travel

Car Rental

Destination Management

World Class Holidays

Discover India Holidays

Ayurveda and Spa Holidays

Cruise Holidays

Royal Wedding

MICE (Meeting, Incentives, Conventions & Exhibitions)

Visa Service

Overseas Travel Insurance

Money Changer

Awards
Ethics is Good Business Award 2006
Best Travel Agency India consecutively for three years (2005, 2006, 2007) Best Car Rental Company Award for 2007 Golden Peacock Award for excellence in Corporate Governance for the year 2007 under private sector category at the National level.

Competitors

SOTC

Cox & Kings

Thomas Cook

Yatra. com

Research Methodology
Scope - to understand the needs of the travellers and make travel houses competent with world-class services. Sample Size 150 respondents (80 of ITH). Survey - at Chandigarh and Mohali. Sources of data Questionnaire, Reports. Personal interviews - help of senior executives of International Travel House Ltd.

Objectives
To identify the trend of travel i.e. peak season of travelling To determine the effectiveness of promotional campaigns To know what consumers expect from travel houses
To understand the quality of services maintained To identify the performance of Travel Houses To know the competitors in a better way To make people aware about the ITHL

Sample Population
21-30 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 31-40 41-50 51-60

Graduate

Post Graduate

Married

Private

Self

3-6 Lakhs

Education

Marital Status

Employment

Government

Income

10-20 Lakhs

Unmarried

6-10 Lakhs

<3 Lakhs

Sample Population
Age Group

Education Graduate
Post Graduate

Marital Status Unmarried Married

Employment Government
<3 Lakhs Private

Income
10-20 Lakhs 1 6-10 Lakhs 3-6 Lakhs Total 13

21-30 11

10

12

Self 2

31-40 70
41-50 38 51-60 6

15
8 0

85
46 6

0
0 0

72 13
25 13 4 3

0
6 0

54
28 2

16
11 3

10
6 1

5
1 0

85
46 6

TOTAL 125

25

147

113 31

92

31

20

150

Sample population - age groups

Age No. of %age Group Respondents

21-30
31-40 41-50

13
85 46

8.67
31%

4%

9%

Age Group
21-30 31-40 56% 41-50 51-60

56.67 30.67

51-60

Income distribution of population

Income Status <3 Lakhs No. of %age Respondents 92 61.33
13% 5% 0%

Income Status
<3 Lakhs 3-6 Lakhs 6-10 Lakhs 10-20 Lakhs >20 Lakhs

3-6 Lakhs

31

20.67

6-10 Lakhs 10-20 Lakhs >20 Lakhs

20

13.33

21% 61%

7 0

4.67 0

Sample population of age group 21-30

Sample population of age group 31-40

Sample population of age group 41-50

Sample population of age group 51-60

Q1.) Which travel you do?

No. of Particulars %age

Respondents

Both

58

38.67
61%

39%

0%

Both Inbound Outbound

Inbound

92

61.33

Outbound

Q2.) How often you travel in a year?

No. of times No. of %age Respondents

1 to 2

16

10.67

15%

1 to 2 1% 11% 3 to 5 73%

3 to 5

110

73.33

5 to 10

5 to 10

22

14.67
more than 10

more than 10

1.33

Q3.) What is your annual travelling budget (in Rs.)?

Amount No. of %age (in Rs.) Respondents
6% 11% <25000

<25000
2500050000 5000075000

16

10.67

27% 56%

25000-50000
50000-75000 >75000

85

56.67

40

26.67

>75000

Q4.) Which holiday packages have you availed?

Particulars Adventure Holidays Hill Station Wildlife Holidays Ayurveda & Spa Holidays Honeymoon Holidays Religious Holidays Heritage Holidays Luxury Holidays No. of Respondents %age
Adventure Holidays
Hill Station

13
28 17 18 33

8.67
18.67 11.33 12
11%

10%
7%

8%

19%
11%

Wildlife Holidays Ayurveda & Spa Holidays Honeymoon Holidays

22

22% 12%

16 10
15

10.67 6.67
10

Religious Holidays
Heritage Holidays

Q5.) Which tours you prefer?

Particulars Romantic Tours Leisure Break Tours Classic Tours No. of %age Respondents
Romantic Tours
Leisure Break Tours 19% 21% Classic Tours

6
29 39

4
11%

4%

19.33 26

26%

Rejuvenation Tours
Rail Tours

Rejuvenation Tours Rail Tours Cruise Tours

28 31 17

18.67 20.67

19%

Cruise Tours

11.33

Q6.) What was your travelling frequency during the last year?
Particulars High Jan 69

Low 100%
81 77 86
90%
80% 81 77 86 73 68 53 35 63 59 57

24

Feb
Mar Apr May

73 64

39

70%
60% 50%

77 82
97 115 87 91

73 68
53 35 63 59

Jun Jul
Aug Sept Oct Nov

40%
30% 20% 69 73 64 77 82 97

115 87 91 93

126

111

93
126 111

57
24 39

10%
0% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Dec

Q7.) Do you distinguish between a Travel House and a Travel Agency?

Particulars
No. of Respondents

%age

36% 64% Yes

Yes

54

36
No

No

96

64

Q8.) Is your preferential travel house ISO 9001 certified?

Particulars No. of Respondents 23 %age
Yes

Yes

15.33
15% 10%

No

No

15

10

75%

Dont Know

Dont Know

112

74.67

Q9.) Which travel house services you availed recently?

Particulars International Travel House Ltd. Trans Corp International Ltd. Makemytrip .com Yatra.com Cox & King India Pvt. Ltd. Ekido Holiday Tours Pvt. Ltd. Thomas Cook None No. of %age Respondents 19 12.67
12% 13% 15% 15% 6% 9%

9 14
21 24 23 22 18

6 9.33
14 16 15.33 14.67 12

International Travel House Ltd. Trans Corp International Ltd. Makemytrip.c om Yatra.com
Cox & King India Pvt. Ltd. Ekido Holiday Tours Pvt. Ltd. Thomas Cook

14%
16%

Q10.) Rank the services availed on scale of 1 to 10 (Low to High)

Services
Air Ticketing Rail Ticketing No. of Respondents 150 150 Sum of Ranks 930 1005 Average of Ranks 6.2 6.7

Grading
Good Good

Car Rentals
Destination Management

150
150

1023
976

6.82
6.51

Good
Good

MICE & Corporate Travel

World Class Holidays Cruise Holidays India Holidays Money Changer

125
57 16 150 48

769
363 118 997 227

6.15
6.37 7.37 6.65 4.72

Good
Good Best Good Unsatisfactory

Visa Services
Overseas Travel Insurance Cover

49
48

288
289

5.88
6.02

Satisfactory
Good

Q.) Is the sample population satisfied with their travel houses?

Hypothesis: Sample population is satisfied
H0: Satisfied H1: Unsatisfied

Level of significance: 5%
Table Value = 7.88

DOF: (R-1) (C-1) = (2-1) (2-1) = 1

Test of statistics- (O-E)*2/E

Consumer
Satisfaction Satisfied Unsatisfied

ITHL 48 32

Other 32 44

Total 74 76

Total

80

70

150

(O-E)^2

(O-E)^2/E

48 32
26 44

39.46667 40.53333
34.53333 35.46667

72.81778 72.81778
72.81778 72.81778

1.845045045 1.796491228
2.108622909 2.053132832

Total
Computed Value = 7.80

7.803292014
Table Value = 7.88

Conclusion and Interpretation: Since, the computed value is lesser than table value, null hypothesis (H0) is accepted. It means sample population is satisfied with their travel houses. As the difference between computed and table value is less, there is no significant difference between satisfaction and unsatisfied level.

Q.) Is sample population satisfied with the services of ITHL?

Hypothesis: Sample population is satisfied.

H0: Satisfied with services H1: Unsatisfied with services

Level of significance: 5% DOF: (R-1) (C-1) = (2-1) (4-1) = 3 Table Value = 12.8 Test of statistics- (O-E)*2/E

Consumer

Air

Rail

Car

Destination

Total 278

Satisfaction Ticketing Ticketing Rental Management Satisfied 64 72 72 70

Unsatisfied Total

16 80

8 80

8 80

10 80

42 320

O 64 16 72

E 69.5 10.5 69.5

(O-E)^2 30.25 30.25 6.25

(O-E)^2/E 0.435252 2.880952 0.089928

8
72 8

10.5
69.5 10.5

6.25
6.25 6.25

0.595238
0.089928 0.595238

70
10

69.5
10.5

0.25
0.25

0.003597
0.02381

Total Computed Value = 4.71

4.713943 Table Value = 12.8

Conclusion and Interpretation: Since, the computed value is lesser than table value, null hypothesis (H0) is accepted, i.e. alternate hypothesis (H1) is rejected. It means sample population is satisfied with the services of ITHL.

Limitations
The finds of the survey is strictly based on responses of the respondents. It is difficult to find the euthenics be true, so they are assumed to be true. The respondents showed non-cooperative approach and rude behavior while revealing their information. The study was carried out on available respondent.

Conclusion
Concisely, study of the analysis depicts that the customers
appreciate ITHL services.

The dissertation ends up with suggestions for higher growth: Company should do the work on its advertising and publicity
policy, as people are not aware of the company. ITHL must advertise more about its website in the mass media.

Company should build strong relationships with customers to serve them effectively.