KEY FACTS AT A GLANCE

TOURISM IN INDIA :
DOMESTIC & INTERNATIONAL TRAVELLER

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)
 MAKE MY TRIP
Make MyTrip.com, India’s leading online travel company was founded in the year
2000 by Deep Kalra. Created to empower the Indian traveller with instant booking
and comprehensive choices, the company began its journey in the US-India travel
market. It aimed to offer a range of best-value products and services along with
cutting-edge technology and dedicated round-the-clock customer support.
After consolidating its position in the market as a brand recognised for its reliability
and transparency, Make My Trip followed its success in the US by launching its India
operations in 2005.
Today, MakeMyTrip is much more than just a travel portal or a famous pioneering
brand - it is a one-stop-travel-shop that offers the broadest selection of travel
products and services in India. MakeMyTrip is the undisputed online leader, with its
share of the travel market extending to more than 50% of all online sales, a fact
evinced by the trust placed in it by millions of happy customers.
Remaining reliable, efficient and at the forefront of technology, MakeMyTrip’s
commitment and customer-centricity allows it to better understand and provide for
its customers’ diverse needs and wants, and deliver consistently. With dedicated 24x7
customer support and offices in 20 cities across India and 2 international offices in
New York.
ETOP:
ETOP commonly used to report the external environment
situation.
It is a process of dividing the environment in different
sectors and then analyzing the impact of each sector and
subsector on the organization.
Describe the impact in the form of statement.
Preparing ETOP:
• It identifies the relevant environmental factors, such
factors might be general environment and task
environment factors. it is necessary to identify their nature.
• Factors which are positive and negative requires to find out
their impact on the organization.
SAP:
SAP is the process by which firm’s resources and capabilities of
key functional areas are examined to determine its strengths and
weaknesses.
The key functional areas may be:
. Organization Itself
- Culture
- Form and Structure
- Top Management Skills & Interests
- Planning System

Personnel (HR)
Or Human Capital
- Attitude
- Skills
- Competencies
- Loyalties
- Perceptions
Contd….
Marketing
- Size of the Sales Force
- Product Quality
- Image
- Product Line
- Customer Services

Technical
- Production Facilities
- Production Techniques
- Product Development abilities/skills

R &D
Finance
- Financial Strength
- Potential Financial Strength
- Revenue Potentials
 By analyzing the above a firm is in a position to decide its “Competitive
Advantages” and “Distinctive Competencies over competitors in the market.
Internal analysis consists of examining “Qualitative and Quantitative”
resources viewing all available resources in term of “Tangible Resources” and
“Intangible Resources”.
 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
 Environment Factors

Environment
Factors   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 in Tourism
India : Land of Festivals .
Large population travel for Pleasure & Work
Globally considered as low cost Travel destination
Cultural diversity attracts million tourists every year .
Our Rituals/Beliefs have so many 'Yatras'
Religious trips across country.
Life style changes : Middle-class values
Changing to 'Shop & Travel‘ compared to ‘Save-More’
Increase in Noise Levels and Pollution
Increase in number of Tourists and Modes of Travel
Security Hazards and Cultural Shocks
Media, Trade Unions are a threat to Tourism
 Regulatory (Legal)

Regulagtory(
Legal)   Opportunity Threat Neutral

1. Monopolies
legislation/Antitrust
  regulation     X

  2. Employment law     X

  3. Health and safety   X  

  4. Tourist Safety   X  
5. Entry barriers,
  protectionist policies X    
 Regulatory Factors in Tourism
No Major issues
Industry is reasonably protected
With Health & Safety laws.
Concern for Foreign Tourists
Wrong impression with far-reaching & long term effect.
Easy to enter & Easy to exit industry.
True potential:
Adopting responsible and sustainable practices on both the
demand and supply sides of the tourism chain.
Closely interlinked with inclusive growth through
sustainable community participation.
‘Sustainable’ tourism route has been adopted by the Min.
of Tourism in the innovative Rural Tourism Project,
 Social (Demography)

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 X    

  7. Multiple income families X    
 Social (Demography) Factors in Tourism
Influences seasonality of the domestic travel
But not the volume of domestic travel
Demographics of Foreign Tourist varies .
Dutch love Goa,
British are seen more in Rajasthan,
American more in South & so on.
Ethenic composition Influences seasonality of travel
in a particular region.
Aging of population Influences type & budget of
travel
Youngsters like to fly abroad or Goa
Elders traveling to Religious places more often.
 Social (Demography) Factors in Tourism
Regional changes to population growth affect
 Western areas where population has moved out due to
terrorist threat Naxal in west or in Jammu.
Social Mobility is a Positive factor for Travel &
Tourism industry.
Lifestyle changes are important factor for
triggering many tour operators like Makemytrip
Changing work & social environment, stress &
attitude has affected spending habits & the Travel/
Tourism needs for better.
More money means more spending & more spending
on Tourism.
 Market Environment

Market
Environment   Opportunity Threat Neutral
  1. 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
 Political Environment

Political Opportunit
Environment   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.
 Economic Environment
Economic Opportun
Environment   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 X    
Rise
  in national income & affordability has opened more avenues
5. Industry   for domestic
  travel.
X
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
 Technological Environment
Opportunit
Technological   y Threat Neutral
  1. Technology X    
  2. 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     X
  8. 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 travelers. Change in
Business scenario has forced travel industry to use innovative process Make My Trip on
mobile is one example. Others are travelouge, videos available on internet & company
sites. Not much spending in this sector on technology. Tourism is about ideas now
customers can choose packages like Adventure Heritage tours which were unheard of few
years ago on Technological advances have further enabled Tour operators to analyze the
trend & adjust their offerings accordingly thus creating more choices & more profits!
 ETOP
Factors Sub factor opportunity threats Neutral

Neutral Law making,

Tax policy, Price
control, Internal
Environment

legal Employment
law, Govt. policy

economical Interest rate,

Inflation,
exchange rate

Socio culture

technological

competitor
SAP ANALYSIS:
factors strategy strength weakness Neutral

Marketing P1
mix

P2

P3

P4

HR

Finance

Production
operation

system