Q.1. What is meant by Tourism Market and what is the importance of information in tourism?

INTRODUCTION Tourists are the consumers in the tourism business and therefore form the tourist market. This tourism market is the focus of the tourism industry's marketing activities, including that of destination management. Tourists need much information before and during their travel, especially if they are travelling to a new place since the major offerings in the tourism sector are intangible. There are man information sources available, and a curious tourist will seek information from several sources. In addition, the tourism industry is highly information-sensitive, and efficient information management is very important to its success. Both the tourism industry and tourist destinations use information technology to manage information efficiently and effectively. Several types of information system are available to Facilitate the effective functioning of tourism organisations. It is important to understand these two factors ie tourism markets and information sources, as both affect tourist flow. Tourist markets generate tourist flow, and Destination Management Organisations (DMOs) approach these markets to direct this flow their way. The tourist's decision to travel to a particular destination is influenced by the information available for that destination as well as the source of that information. In this Unit, you will first learn to identify tourism markets, and then understand the various information sources available to both buyers and sellers in this industry. TOURISM MARKET From the marketing perspective, the term 'market' means the group of consumers - both potential and current - who might transact with a seller. In the tourism industry, tourists or travellers are the consumers, and hence form the market along with potential tourists Tourist-generating countries or places are commonly referred to as 'tourism markets' in tourism literature The potential tourist belongs to these markets and decides the travel destination based on many factors.

As discussed in Unit 1, the major tourist-generating countries and tourism markets are developed countries where people have much disposable/discretionary income, such as France, Germany, the US and the UK These countries are also the top spenders. Tourist arrivals have increased steadily after World War II, barring a few setbacks In 1970, the world saw 166 million international tourist arrivals, in 2000, the figure had gone up to 700 million, and the United Nations World Tourism Organisation (UNWTO) forecasts 1,600 million international tourist arrivals by 2020. Yet, only a small percentage takes an international trip annually now, and a mere 21 international trips per population of 100 will be generated in 2020 This means that a significant percentage of the world's population is unlikely to travel Therefore, recognising tourist-generating markets is a very important part of tourism marketing Destination countries direct their marketing activities to potential tourists in these source markets. The demand for travel in source markets (tourist-generating countries) and the travel tendency of their population is called Travel Propensity in tourism literature Net Travel Propensity indicates the penetration of travel tendency, or the number of travellers per population. Gross Travel Propensity measures the number of trips per population While Gross Travel Propensity can exceed 100 percent in a few developed countries, Net Travel Propensity can never be 100 percent, as an entire population never travels Tourism marketers in destination countries use a process called 'market segmentation' to target their activities at specific groups of potential tourists in tourist-generating markets, as travel wants and needs are dissimilar, on bases like geography, demographics and psychographics You will learn more about market segmentation and targeting the right segment in subsequent Units. As discussed in Unit 1, National Tourist Offices (NTOs), DMOs, international tourism organisations and similar organisations track tourist arrival trends analyse a region's tourism characteristics and publish hr findings. The UNWTO is the chief agency that tracks tourist world wide it gathers, complies the statistics in different formats. It publishes the most current trends in its quarterly

World Tourism Barometer. In its annual publications and periodical publications called Compendium of Tourists Statistics. the UNWTO publishes statistics on tourist arrivals and outbound tourism - both volume statistics (number of tourist arrivals) and value statistics (international tourist receipts) along with other relevant details of each country. Destination Management Organisations that develop and promote tourism a collect, analyse and publish tourism statistics periodically. These data statistical analyses immensely help tourism planning, development and market activities and professionals. IMPORTANCE OF INFORMATION IN TOURISM The role and importance of information in tourism is probably greater than any other industry, because of the following two reasons: Travel and tourism is an umbrella industry of many sectors and organisations that are involved in the production and distribution of travel and tourism products. It has a complex distribution chain of interrelated business (Werthner and Klein, 1999). It is vital that specific, relevant and accurate information should flow smoothly among the diverse and complex network of consumers, intermediaries and suppliers to meet the consumers' needs For example, a tour operator needs an intensive communication linkage with suppliers as well as tourists to coordinate a tout Quite a few permutation and combinations of routes, transportation modes and accommodation units are required. Timely decision-making is complex but critical.

NGO = Nongovernmental Organization NTO= National Tourism Organization RIO = Regional Tourism Organization; LTO = Local Tourism Organization; QS = Central Reservation System GDS = Global Distribution System Source : Sage Handbook of Tourism Studies, adapted from Werthner and Klein (1999) Tourism,a service industry, offers service products that require the latest and most accurate information . Information is one of the most important quality parameters for efficient service. It is information - not a physical product, as in most other industries - that moves in tourist markets, so service providers always look for all types of information. A variety of factors contributes to the tourism industry being so information-intensive; six of these factors are discussed below. i) Any service product is intangible; unlike manufactured goods, tourism products cannot be inspected or pre tested prior to purchase. Therefore, consumers i.e. tourists base their purchase decision almost entirely on representations and descriptions and look for maximum information to overcome the uncertainty caused by intangibility. Adequate information provided to a tourist convinces them about a product and enables them to reduce the risk in making travel decisions. Tourism promoters have recently linked the IT and tourism sectors to creatively market products and minimise implications of intangibility. ii) Tourism products are highly perishable; that means they cannot be stored for future sale and are time-sensitive. In case an airline cannot sell all a flight's seats in time, it cannot sell those seats for that flight ever again; the revenue to be earned from them is lost. Therefore, the airlines need to disseminate latest information accurately and fast to enable last-minute ticket purchases. Also, seasonal demand fluctuations necessitate principals, intermediaries, retailers as well as tourists to have timely information to avoid overbooking, crowding, price variations, etc. iii) The production of a service is inseparable from its consumption; for example, if the traveller has to reach his destination, the means of transportation must make the journey at the same time as he does. Production and

consumption of the tourism product occurs at the same time and therefore accurate information helps the tourist to be a part of this service production system. In addition, service providers for tourism activities can be spread throughout the world. For example, a British tourist visiting India, the service provider, and service of accommodation will be in India whereas his initial service provider, outbound tour operator, will be based in his native place, the UK. The operation of international airline will be seen more in the region between UK and India. Due to this inevitable locational fragmentation of the tourism business, there is an increased need for information by both tourists as well as industrial components such as tour operator, ground operator and hotels; in order to make the tourism process happen. iv) Service offerings are unique; as unlike the manufactured goud they are never identical. For Examples, Two hotels of the same chain in different cities will offer a different experieiie. Even a visit to a tourist attraction, like a fort or museum, can be a very different experience for two different people or two different tour groups. This feature of Heterogeneity is very common in Tourism Industry as tourism products are "people oriented". Tourists are aware of the possibility of experiencing something different from that promised. Therefore, these days tourists undertake of research including finding information on travel experiences of others tourists before deciding on their choice of destination and services providers. Service providers on the other hand provide information in a manner that helps create and maintain a brand image yet at the same time a connection is made with travellers as well as other services providers This connectivity and exchange of information assure a "standard of service" which can help overcome the heterogeneity of the service offered. v) Intermediaries - travel agents and tour operators are an important information source for the tourists. They acquire, process & disseminate information to make the consumption of tourism product easy. The role of a travel agent is both that of a search-and-book service provider and as well as an advisor. Tour operators on the other hand consolidate and package different tourism

components a market them. Information exchange is vital in coordinating all such activities. vi) Seasonality is another feature of importance in the tourism industry The need for accurate, timely and specific information for principals intermediaries, retailers as well as tourists is highly essential for the industry to cope with the seasonal demand fluctuations in context to both domestic and international tourists. Further, Tourism activities are not just limited within the boundaries of a country A tourist tries to explore new and exotic destinations; and hence seeks information on a wide variety of topics that ranges from passport/VISA regulations to accessibility to the destination to food habits and local culture as well as climatic conditions and driving regulations. At the same time the principals, suppliers as well as intermediaries also require information for communicating among themselves as well as with tourists. All the above discussed reasons describe the importance of information in the tourism sector. Fortunately, advancements in information technology are playing a great role in managing the information requirements of the tourism sector.

TYPES OF INFORMATION TOURISTS NEED The tourism industry is information-intensive and needs to process large quantities if information, which can be classified into three types: i. ii. iii. static and dynamic; pre-trip and in-trip; and private sector and public sector.

Sheldon P, 2003, Tourism Information Technology, CABI). Static information is information that does not change often, for example, the distance between a tourist destination and its nearest airport. Other types of information, such as room availability and flight schedules, change frequently

and are considered dynamic. Information technology applications are essential for dealing with dynamic information. Pre-trip information and in-trip information is information that tourists need before and during their trip. Pre-trip information is static while in-trip information is dynamic. All tourists need both static and dynamic information, and both public and private sectors provide it. Public sector information is general information about tourist destinations; the private sector provides specific product information. For example, the overseas tourist office of India Tourism (Ministry of Tourism) provides information on tourism in India and its attractions, facilities, transport routes, etc., whereas an airline office gives flight timings, seat availabilities and the like, pertaining to their airline only. Tourists require wide range of information about their destination. Some of the was are given below. i) Air, rail, coach, air and sea routes, carriers, rates, schedules Travel geography, time zones Information on passport, visa, travel insurance, health regulations Customs regulations Currency : exchange rates, where to exchange Internal/Local Air, rail, coach, bus, and taxis : routes, transport Information prices, schedules Information on use of on transportation after own car reaching the destination rented car, car with driver Local and current real Prices : guide to bargains and time conditions commodities that are usually expensive Information on local Culture, cocial life, cultural features facilities, geographical Cultural advice : modes of dress, greeting conditions, shopping and customs Public holidays the like Business/shop opening hours and itesm special with regard to the area Seasonal factors Climate conditions, weather and Inbound/Outbound travel When a foreign tourists wishes to visit a foreign country

ii)

iii)

iv)

Locations, destinations Location of cities, towns and other geographical elements of a destination

v)

What to do ? Activities that can be undertaken by tourists in the destination

vi)

Where to stay ? The information tourists require on the accommodation details in the destination

weather forecasts. Availability of sanitation facilities, communication facilities, etc. Quality of water available Sporting facilities, availability of equipments timings Local traffic information Congestion problems reads, public transport, at attractions and events. Regions Cities Towns Villages Locations and tourist attractions such as beaches, scenic locations, parks ski slopes, etc. Sightseeing options Attractions to visit : historical, cultural, scenic, sporting, etc. Places suitable for children Sporting activities Hobbies and interests Culture Folklore Wellness Events Shopping Culinary specialties Locally produced food and drink Organic food Entertainment Nightlife Readymade do it yourself suggested itineraries Theme tours Paid for tours, local excursions Guiding services Classified accommodation establishments supplementary accommodation details Hotels Guest accommodation Self catering houses Holiday parks and villages Camping caravan parks

vii)

viii)

Campus accommodation Hostels Houseboat accommodation Spas Ratings of the accommodation facilities by the authorities as well as other agencies Availability of special Facilities for families with young children facilities Facilities for youths Facilities for groups Sustainable tourism practices and establishments Accessibility : information and facilities for the disabled, seniors, those with young children Facilities for bikers, walkers, skiers and other interest groups Whom to contact ? Contact details regarding reservations and bookings, safety and security aspects, travel documents, etc.

The use of information by tourists can also be classified as i. Pre-consumption stage ii. Consumption stage iii. Post-consumption stage

Source : (Urike Gretzel and Daniel R. Fesenmaier, The sage Handbook of Tourism Studies, SAGE ublication, 2009, p. 563) The information sought during pre-consumption phase involves information necessary for planning trips, formulating correct expectations,, and evaluating, comparing and selecting alternatives, as well as to communicate with the providers of tourism products and services to prepare or execute transactions. Information sought during actual consumption is more related to being connected and to obtaining detailed information relevant at a specific place and moment in time

During the post-consumption stage, exchange of information is related to sharing tourism experiences, staying connected and sharing, documenting, storing and reliving tourism experiences One example of post consumption is of frequent flyers keeping in touch with service providers or tour operators for economic tour packages.

Q. 3What is Market Positioning and it different approaches. Explain with giving suitable examples form Tourism Industry. MARKET POSITIONING Positioning means creating an image in the minds of customers within a target market about a product. Once a target market is selected, it is important to understand that other organisations too might find it attractive. Therefore, creating position, a place, for the product in the target market is important. This is possible when a company sends out a convincing message to its customers about product features, services, and other offerings. Successful positioning helps duct to attract the attention of customers within a target market and identify easily from a group of similar products. Definition "Creating an image, differentiating a product and promising a benefit in the mind of customers. Positioning is the perception the consumer has of a product offering" (Shoemaker and Shaw). According to Kotler, "A product position is the way the product is defined by consumers on important attributes the place the product occupies in consumers minds relative to competing products." "Positioning refers to the 'placing' of a product in that part of the market, where it will be able to complete favourably with competitors products." (Adcock et al, 1995). Product positioning is part of the total product offering. It starts with market segmentation, market targeting and positioning and differentiation. Product positioning and differentiation are integral parts of product offering. The salient features of the product or services offered to a market are emphasised in the minds of the custother byproduct differentiation and thus help in positioning of the product. Some of the reasons for positioning are as follows. 1. Perceptual Process: Perception. The marketer whose advertising message communicates an unclear or confusing image to customers will find these message ending up as a pile of mental garbage, 'screened out by highly sophisticated consumers. Research has shown repeatedly that people forget

a very high percentage of the commercial messages to which they are exposed. Clear, concise and simple messages are key to slipping past perceptual defences. This, together with well-positioned service offerings, is the essence of positioning. 2. Intensified Competition There is a growing competitiveness in the hospitality and travel industry. Positioning is a technique used to give a service an image that is unique: and different from that of competitors. Kingfisher airlines came up when low-cost carriers (LCC) were doing great business. Kingfis'icr positioned: itself as a full service airline and implanted the idea that th-I.J, have more services to offer than other airlines.

3. Volume of Commercial Message People are exposed to hundreds of commercial messages each day, some from hospitality and travel organisations, but most from other advertisers The sheer volume of messages makes it impossible for anyone to absc all they see, hear, and read.. To get a person's attention among what many call the "advertising clutter" is effective positioning. Advertising must stand out from the crowd by being distinctive, while also communicating clear ideas.

POSITIONING APPROACHES To position a product or service offering in the market one needs to undersI g the three elements in true positioning: 1. Crating an image 2. communicating customer benefits and 3. differentiating the brand from competitive services. Source: Alastair M. Morrison, Hospitality and Travel Marketing, 2007 The steps required for effective positioning is commonly referred to as the 5 positioning Documenting :- Deciding the important benefits that an organisation wishes to before customers

Deciding:- The image to be conveyed to actual and potential customers Differentiating - Distinguishing features of one organisation's product from anothers. Designing :- Designing the tools mechanism to convey the differences. Delivering: - How to fulfil the promises The 5 Ds help in understanding product positioning, but the positioning is usually on one of the following approaches (Source: Thomas C. Minnear and Kenneth C. Bernhardt, Principles of Marketing, 1990) 1. Positioning by specific product feature: This is the most common approach to positioning. Price and specific product features are used as the basis for positioning. A rent-a-car company positioning itself as everything the major rental car companies give you, but at a lower price, is a classic example. 2. Positioning by benefits, problems, solutions or needs: This approach emphasises on the benefits that the product brings to the consumers. For example Pharmaceutical companies position their new drug I medicine to doctors, on the platform of the effectiveness of the new drug along with negligible side-effects. 3. Positioning for specific usage occasion: This approach is related to benefit positioning but uses a specific occasion as the major basis for positioning. An example is jewellery being positioned as specialised in wedding jewellery. 4. Positioning for user category: This approach lays emphasis on the users' needs or expectations. Offering tour packages only for single female tourists is one such positioning platform.

5. Positioning against another product: This approach is used when one product is already available in the market. For example, positioning a five- star hotel as a boutique hotel to differentiate it from other five-star hotels. 6. Product class disassociation: This is a less common basis for positioning, but it can be effective when introducing a new product that is different from standard products in an established product category. Lead-free gasoline is an example. 7. Hybrid basis: Often, a positioning strategy will be based on several of these alternatives, incorporating elements from more than one positioning base. Porsches positioning for example, is based on product benefits as well as on a certain type of user. There are other positioning approaches as well. Shoemaker suggests objective and subjective positioning approaches. Objective positioning refers to physical characteristics and functional approaches whereas subjective positioning means, prestige, service quality and experience. Another approach is through: I. Tangible positioning: Creating an intangible subjective image of a product based on tangible features of the product Intangible positioning: Creating a tangible objective image based on an intangible aspect of the product

II.

No matter the approach adopted by an organisation, the product needs to create its own identity and image in the market, especially in the target market. Positioning in Tourism For a destination, successful positioning influences the mind of a customer and shows its competitive advantages over competing destinations (Pike, 2002). In the tourism industry, the positioning approaches vary according to the type of destination; travel, hospitality and ancillary areas. Table 5.1 lists some of the criteria to consider in tourism positioning.

Table 5.1: Criteria in Tourism and Hospitality Positioning Destination Hotels/Resorts Travel Location features Beach:- Serenity, privacy Hill station:- Scenic features Historical importance:site importance City:- History, business centre, People & Culture:ethnicity & cultural difference Association of historical figures Activities promoted Service features Brand features/value Location:city, airport Price Ownership Activities Personality of the institution Event related Appeal Service features Cost/price Brand Connectivity Reliabilii Safety Customer service Appeal

Various features play a very important role in the positioning approach of product. The table mentions how each component of the tourism industry c be differently positioned.

Q.4 What are the factors influencing Tourist Behavior ? Also discuss the significance of Travel motivators in Tourists decision making process. MOTIVATION IN TOURISM National Tourism Organisations (NTO) and marketing agencies the world over are trying to understand why a tourist chooses one destination or accommodation unit over another. Everyone is looking to attract more tourists and increase the returns from tourism. TOURIST BEHAVIOUR In order to understand tourist behaviour and their decision-making process, we need to understand that the tourist is also a consumer - an individual who obtains goods and services for personal consumption through a decision-making process. Consumer behaviour as a part of the decision-making process is discussed in Unit 11 of this course. The study of tourist behaviour helps to develop insight into the internal and external influences on an individual's behaviour. Yvette Reisinger in International Tourism: Cultures and Behaviours states that the study of tourist behaviour is the study of tourists' mind, body, spirit, environment and feedback: i) mind, comprising cognition (thinking, knowing, understanding, perceiving, storing, processing, and retrieving information from the environment); affect (feelings, emotions, attitudes, predispositions), and conation (intentions to act and behave in a specific way, reasons for doing things, willingness and volition); body, in terms of overt behaviour, spirit, the vital principle or animating force within living beings w) environment, which influences tourist behaviour, and feedback (what a tourist receives from the environment).

ii) iii) iv) v)

The study of tourist behaviour helps us to understand the complex process of interaction of the elements that influence the tourist motivational process. Factors Influencing Tourist Behaviour

The travel decisions of any tourist are affected by both internal and external forces. Some of the factors are discussed below. 1. Psychographics Tourists with an innovative approach may be defined as a relatively small group of holiday seekers who are the earliest purchasers of new products. These innovators are enthusiastic about their experiences, encourage others and play the role of opinion leaders. Such tourists are likely to take advantage of special promotional offers of travel agents and are socially accepted. Psychographics refers to intrinsic qualities of an individual tourist. On the basis of these qualities we can categorise them as innovators and non- innovators. Non-innovators are tourists who can be dogmatic. Such individuals bear a high degree of rigidity towards information, unfamiliar and contrary to his or her belief system. In terms of social character, the non innovators can be inner directed tourist who tends to rely on their own values and standards regarding the choice of the destination while the innovators are outer directed and tend to look for direction and advice in the planning of holidays. 2. Social Status The division of members of a society into a hierarchy of distinct social classes or statuses exists in all societies and cultures. Social status is usually defined by a status that members of a specific class possess in the society relation to members of other classes. Status is most often defined in terms of variables such as family income, occupational status and educational attainment. Attending fashion shows, purchase of expensive decorative handicrafts, pursuit of leisure and usage of credit cards are some of the indicators of social class Unit during travel. Social status also defines the holiday plan and choices of destination. Some destinations are always on top of the list for vacations, such as visits to major cities of Europe and so on. Social status is not fixed; in most cases, an individual has upward mobility due to opportunities for self advancement. Therefore, preferences and consumer behaviour keep on shifting and changing. Social status serves as a framework and constitutes reference groups which influence consumer attitudes and behaviour.

3. Reference Group Reference groups serve as a frame of reference for individuals in their purchase decisions. A reference group perceived as credible, attractive or powerful can induce tourist attitude and behaviour change. For example, when a tourist is concerned with obtaining accurate information about the destination, they are likely to be persuaded by those they consider as trustworthy or knowledgeable or whom they consider as sources of "high credibility". The tourist is concerned with the acceptance or approval of others they like, i.e. with whom they identify or who offer them confidence and thus the motivation For the choice of the destination of a tourist is influenced by the openion of their reference group Celebrities, such as movie stars, sports heroes and television personalities, are another popular type of reference group. To the general public these celebrities represent an idealisation of life that most people would like to live. 4. Family Life Cycle Traditionally, family is defined as two or more persons related by blood or marriage who reside together. The family cycle is conceptualised as a progress of stages through which most families pass, starting from bachelorhood, honeymoon, family with full nest and dissolution. The family decision for a holiday is also influenced by the extent to which the husband/wife influences the decision, the role of children and the family structure. The number and opinion of family members depends on the nature and type of holiday. Studies indicate that tourists in the bachelorhood and honeymoon stages are heavily involved in entertainment activities. Families with two children - that is, full nest - maintain an average level of employment during the holidays. In the last stage, the level of involvement drops heavily. Unmarried career women are distinct categories for which the travel agents are offering distinct products.

TRAVEL MOTIVATORS Travel motivators are factors that create a person's desire to travel. They are the internal psychological influences affecting individual choices. McIntosh and Goeldner have stated that basic travel motivators fall into the following four categories. i) Physical motivators, which are related to physical relaxation and rest, sporting activities and specific medical treatment. All are connected with the individual's bodily health and well being. Cultural motivators, which are connected with the individual's desire to travel to learn about other countries, their people and their cultural heritage expressed in art, music, literature, folklore, etc. Interpersonal motivators, which are related to a desire to visit relatives, friends or to escape-from one's family, workmates or neighbours, or to meet new people and forge new friendships, or simply to escape from the routine of everyday life. Status and prestige motivators, which are identified with the needs of personal esteem and personal development. These are related to travel for business or professional interests, for the purpose of education and the pursuit of hobbies.

ii)

iii)

iv)

Maslow's Hierarchy of Needs theory was also related to the hospitality and travel industry by R.C. Mills and A. Morrision (1998). NEED
Physiological

MOTIVE
Relaxation

TRAVELL[FERFURE P'ERENCES
y y y y y y Escape Relaxation Relief of tension Sunlust Physical Mental

India Tourism: Incredible India

:

Malaysia Tourism Malaysia Truly Asia Goa 365 days on a holiday Punjab Bank: National

Safety

Security

Health Recreation Keep oneself active and

healthy for the future

The name you can bank upon

Belonging

Love

Club Mahindra Family togetherness Enhancement of Holidays: My happiest holidays kinship relationship Companionship Facilitation of social interaction Maintenance of personal ties Interpersonal relations Roots Ethnic Show one's affection for family members Maintain social contacts y Convince oneself of: one's achievements Show one's importance to others: Prestige Social recognition Ego-enhancement Professional/ business Status and prestige British Airways The way to fly Malaysian Airlines

Esteem

Achievement Status

y y y y y y Self actualization

Going beyond
expectations. ITC Mughal: Experience the Mughal Lifestyle in a contemporary setting.

Be true to ones own nature Exploration and evaluation of self Self-discovery Satisfaction of desires

ITC Royal Gardenia Bengaluru: World's largest & Asia's first LEED (Leadership in inner Energy & Environmental Design) Platinum Rated Hotel ,

Source : Alastair M. Morrison, Hospitality and Travel Marketing based on Mill, Robert Christies and Alastair M. Morrison. 1998. The Tourism System : An introductory Text 3rd ed. Dubuque, Iowa : Kendall/Hunt Publishing Company. Used with permission.

TRAVEL CAREER LADDER The model of tourist motivation for Philip Pearces (1998) is based on Maslow Hierarchy of needs theory . Pearce postulates the existence of a Travel Career Ladder where tourists development varying motivation of : a) b) c) d) relaxation stimulation self esteem and development and fulfilment

In Pearce's model, motivations are divided into two categories, The needs may be self centred or directed at others. Thus, for example, relaxation may be a solo exercise where the holiday maker seeks quiet, restful time alone, or an exercise where he/she seeks relaxation in the company of others. It can be hypothesised that for those undertaking their first overseas trip,, the major concerns may be those of wanting relaxation within a safe environment. However, as they become more experienced, they may become more curious about the culture and history of other places, and possibly even seek a sense of identification either with places, or establish a sense of Self though having knowledge of differences between cultures. They will travel more, and amy do so independently. In due course, as they proceed through the upper needs of the motivational hierarchy, their concepts of self and understanding become better formulated for their becoming more actualized. They engage increasingly in more intellectual pursuits, wanting to know about the history and culture of places, perhaps even wanting to learn foreign languages. As Yiannakis and Gibson (1992) state, the tourists became less risk-averse and seek more stimulation. No matter what the motivation of a tourist or where the tourist is on the TCL, important that motives can translate into actual travel only when the tourist s through a decision making process, discussed in the later Units.

Q. 5 What is Domestic Tourism ? Discuss the various forms of Indian Domestic Tourism. INTRODUCTION People have been travelling since time immemorial, yet tourism today is distinctively a 211 century phenomenon. The terminology used by travel professionals today while describing a particular movement of a traveller was not used earlier. The World Tourism Organization, the apex body for tourism, has categorised tourism into three main groups: domestic tourism, comprised of residents travelling within their own country; inbound tourism, comprised of non-residents travelling in a given country; and outbound tourism, comprised of residents travelling to and within another country. Two units will deal with the first category, i.e. domestic tourism, with respect to India as a case study. This Unit, on Domestic Tourist Markets (Traditional), will focus on statistical analysis of data up to 2004; the Unit on Domestic Markets (Emerging) will focus on tourist movements from 2005 onwards. The present Unit will further define domestic tourism and will also focus on understanding the Indian domestic tourism market. This unit will further discuss the profiling of domestic tourists and its relevance with respect to attracting tourists to a destination or to develop and promote a new destination for the domestic tourists. WHAT IS DOMESTIC TOURISM? The evolution of domestic tourism has created a number of opportunities that helps in identifying the true potential of a country's tourism - related wealth. It is commonly understood that domestic tourism adds towards the country's economic growth. Yet, in technical terms, we do not know what actually domestic tourism is. Let us start by discussing some of the definitions of domestic tourism and some of its basic characteristics. The United Nations in its "Recommendations on Tourism Statistics" states "Domestic tourism is that form of travel which involves residents of the given country travelling only within this country". The Encyclopaedia of Tourism says, "Domestic tourism involves people visiting destinations within their own country's boundaries". According to Indian Tourism Statistics 2008, the following definition is accepted in India for domestic tourism.

A domestic tourist is a person who travels within the country to a place other than his/her usual place of residence and stays at hostels or other accommodation establishments run on a commercial basis or in dharamshalas/sarais/ inusafirkhanas/agrashalas/choultries etc. for a duration of not less than 24 hours or one night and for not more than 12 months at a time for any of the following purposes: pleasure (holiday, leisure, sports, etc.) pilgrimage, religious and social functions business conferences and meetings study and health. The following travelers are not regarded as domestic tourists: persons arriving with or without a contract to take up an occupation or engage in activities remunerated by the State/Centre persons coming to establish more or less permanent residence in the State! Centre persons visiting their home towns or native places on leave or on a short visit for meeting relations and friends, attending social religious functions etc. and staying in their own homes or with relatives and friends and not using any sightseeing facilities. foreigners resident in India. The reasons for travelling may vary, but travel is always made within the periphery of their own country. This involves a higher degree of hassle-free travel as it does not involve any formalities of passports, visa/currency exchange or other documentation. The only obligation is with regard to some sensitive areas where a tourist permit is required, e.g. places like Arunachal Pradesh and Mizoram or an Inner Line Permit to pass through Nagaland if you visit Manipur via Dimapur/Kohima. It is an obligatory document issued by the Government of India to allow inward travel of Indian citizens into a protected/restricted area for a limited period. Tourism also acts as a channel for

national integration that helps in achieving understanding between various linguistic, religious, and communal groups in different parts of the country. It is also a very important part of the Indian tourism industry especially since it act as a channel for national integration> Domestic tourism helps in achieving understanding between various linguistic religious and communal groups living in different parts of the country. a few pointers in favour of domestic tourism are 1) Lack of documentation while travelling thus allowing relatively easy travel. The only documentation required, at times, is a permit for visiting some sensitive areas. 2) It is an activity where a resident of the country personally contributes to the country's economy. 3) Domestic tourists' expectation can be met relatively easily as they are aware of the country's realities. At the same time, relatively lower expectation than international travelers' means a lower pressure on the destination's infrastructure and facilities. 4) Economic recession/international developments/global politics/epidemics in international circles have a relatively low impact on domestic tourism. A country can also rely on its domestic tourists during tough tourism seasons. 5) The socio-cultural impact due to guest-host interaction is relatively less, since people usually use a common language and the culture is mostly similar. Indian Domestic Tourism A Brief Overview India has been a seat of learning and a major pilgrimage centre for centuries. As a result, several centres of knowledge, culture, learning and religious worship have developed all over the country, giving further impetus to the mass movement of people from one place to another. Ancient scriptures talk about the various forms of travel undertaken, such as

 tirthatan - pilgrimage/travel for religious purposes paryatan - travel for pleasure deshatan - travel across borders for business or other purposes. Over t0ime, the development of traditional industries and trade created a new stream of travelers which led to the establishment of several trading routes frequented by traders from distant places. Ancient rulers recognised the necessity of wayside facilities and build inns, sarais, dharamshalas and caravans for the benefit of these travelers and traders and in turn earn the support of their subjects This turned out to be a significant move in the development of the country's travel and tourism infrastructure, which probably laid the foundation to the movement of domestic tourism in India. A new phase was witnessed in the Indian Domestic Tourism during the rule of the Mughal Dynasty. Pleasure tourism was promoted by Mughal rulers, as they displayed their interest in building luxurious palaces and gardens in places of natural scenic attraction in various parts of the country. During British rule, Several hilt stations were developed, which became the core of Indian leisure tourism Bntishets also laid foundation for the vast Indian railway system,1 has helped both leisure travelers and businessmen over the decades. b business tourism experienced a qualitative and quantitative change by not the development of railways but also at the identification of export/Import li at port turned out a significant move in the development of the country's t and tourism infrastructure, which probably laid the foundation to the move of the domestic tourist in India. A new phase was witnessed in Indian domestic tourism during the rule of the Mughal dynasty. Pleasure tourism was promoted by Mughal rulers, as they displayed their juiciest in towns. The construction of circuit house, dak bungalows and forest ledges had the infrastructural foundation for leisure and wildlife tourism Thus, a variety of specific developments over time gave new meaning -direction to domestic tourism.

DOMESTIC TOURISTS TRAVEL TRENDS India is a fascinating and incredibly multifarious country. With its 5000-veal old civilisation and a population close to 1.1 billion that speaks one or more of 22 officially recognised languages, India is one of the most culturally diverse countries in the world. India's vibrancy cannot be ignored either by the international or domestic tourists. According to Indian Tourism Statistics, 2004, there has been a continuous increase in domestic tourist visits. The year 2004 witnessed a growth of 18.5 ,percent. over the year 2003, while 2003 showed 14.6 percent growth over 2002 The table given below gives you the details of the top three states domestic tourist arrivals from 1999-2004. Table 13.2: Domestic tourist arrivals, top three states, 1999-2004 Year Uttar Pradesh Andhra Pradesh Tamil Nadu 1999 2000 2001 2002 2003 2004 45723700 64830000 68790000 71490000 80020000 88371247 42316882 47998204 52533647 60487370 74138729 89440272 21079141 22982262 23812043 39873160 40213060 42279838

Source: - Ministry of Tourism, Govt. of India and Compiled from the statistics released by: Lok Sabha Unstarred Question No. 2022, dated 15.12.2003 & Lok Sabha Starred Question No.270, dated on 20.12.2004 & Rajya Sabha Unstarred Question No. 2256, dated on 13.12.2005. DATA ANALYSIS Data analysis shows that the state of Uttar Pradesh has consistently held the top position15in terms of domestic tourist arrivals. Uttar Pradesh, having a mix of cultural, natural and religious tourism products, has held the interest of domestic tourists for a long time. The city of Agra with its Mughal architectural delights, especially World Heritage Site Taj Mahal, has always attracted tourists. At the same time Hindu pilgrimage tourism has flourished in the presence of the river

Ganga flowing through the state as its backbone. Mathura, Vrindavan and Varanasi, the oldest living city, has attracted both for its religious as well as cultural flavours. Buddhist pilgrimage centres such as Samath and Kushinagar has encouraged tourists to travel these once remote cities. The natural beauty of Uttar Pradesh, has given a holistic image to UP. The Tourism slogan of UP also says "Soul of India". In the year 2004, a fall was noticed in the number of tourist arrivals in the state that benefited was Andhra Pradesh. The state of the famous Tirupati Balaji Temple the richest temple with a large number of devotees visiting each year has over the years become popular with tourists. The state is not only a pilgrimage centre; it has famous cuisines and architectural monuments such as the Charminar to offer tourists. The state has recently started attracting younger tourists by promoting adventure destinations and activities available in the state. The cities of Hyderabad, Vishakhapatnam, Wanangal are nature- and adventurebased destinations. The Borra Caves, red hills and Belum Caves add to the Charm of the state. The tag line rightly mentions Andhra Pradesh as "Essence of Incredible India'. The third state that tops the list of domestic tourist arrivals is Tamil Nadu The state's promotional campaigns and marketing strategies can be said to be tii major reason for attracting a large number of tourists every year and for maintaining its rank at the third position. The year 2004 showed over 42 lakJ1 domestic tourist arrivals in the state, almost double the number of tourists ill 1999. The state has some very popular hill stations like Ooty, Kodaikanal ancj Yercaud. Blessed with Nature's bounty, Tamil Nadu is a paradise for nature lovers. The famous tea gardens of the Nilgiris draw many tea lovers to the state. Its World Heritage Site of Mallapuram, snake farm, Kanchipuram Sarees, Meenakshi and Tanjore temples as well as Chettinad cuisine offer a rich cultural heritage to its visitors. All the three states also possess a rich cultural treasure trove in the form of music, dance, textiles and art. Yet the marketing efforts of recent years have given a distinct identity to these states and brought more destinations to the tourists. They also are eager and willing to experience a place and culture similar yet different from their own.

Q.6 Define and discuss the various methods of Forecasting in Tourism. INTRODUCTION Forecasting is a vast field related to every sphere of our lives and encompasses the approaches used to determine the future. Forecasting is used in every field politics, crime, health, business, conflict, tourism, etc. It can be of a variety of types, and can be as simple as predicting the growth of a business in five years, or as specific as determining the labour turnover of a small department of a large organisation. It can be used to determine and formulate a strategic policy to fight a competitor over a fixed time. Forecasting needs to consider trends; for example, recession may change the phenomenon of tourism-generating markets The loci of the generating market may tilt towards the host if economic parameters and trends are used for forecasting. This Unit will introduce you to tourism forecasting and its methods. DEFINING FORECASTING Forecasting, simply, means 'predicting the future'. It is the process of deriving results about things for which no clear future signs are currently visible. Often, "Prediction" is used simuitaneousiy or interchangeably with "forecasting" which is incorrect. Prediction is a general term or an estimate whereas forecasting is specific. Often, forecasting is also confused with planning. But forecasting is differ from planning. Forecasting is estimating what the future would be like planning is shaping the future as one wants it to be. Planning under the conditicjr4 of uncertainty leads to the use of forecasting. Planning is so concerned wiz,forecasting that it may depend upon forecasting from the formulation of problem to the use of the forecast.

FORECASTING METHODS Forecasting, as other research methodologies, has a variety of methods. The objective of the forecast and the type of data available determines the forecast method. Every business is dependent upon forecasting and uses forecasting methods. Tourism is no exception. The perishable nature of the tourism product makes accurate forecasts mandatory for conducting business. Forecasting also assists in planning - both short-term or few months and long-term or few years. This helps avoid surpluses or shortages of services/products. For example, an increase in tourist arrivals as per forecast can give a National Tourism Organisation (NTO) and the accommodation sector time to prepare for it. It even helps small enterprises to reduce uncertainty and improve entrepreneurial decision-making process by means of getting prepared for the tourist season. For example, a resort that is being developed in phases can plan its infrastructural development process and other tourist activities and requirements to position itself either as a weekend getaway or a destination for summer vacationers, based on forecasting.) Forecasting empowers people by providing them timely tools to modify or alter variables and have the desired result. Variables in case of tourism can be many for a tour operator it might be the length of the tour packages or the number of activities to be included in the package or deciding on a destination I itinerary for preparing a tour package. While for a hotel variable can be the demand for a particular facility that need to be added such as internet facility in guest room or additional of a particular to the menu in anticipation of tourists visiting from that region or country. The broadest classification of forecasting techniques can be into qualitative forecasting research methods and quantitative forecasting resea'-' methods. The quantitative methods can be divided into causal methods and non-causal methods. Some popular methods of forecasting are:

i) GENIUS FORECASTING: This method fills the gap between scientific forecasting and non-scientific forecasting. Science fiction writers, astrologers, psychics, etc. are well explained by this method; the lacuna is that it is impossible to determine a good forecast until the event occurs. The core sciences i.e. scientific analysis do not recognise this method. ii) TREND EXTRAPOLATION: The use of trends and cycles dominates this method. Mathematical techniques are used to relate a trend to the future. The drawback is the assumption that the forces that created the past will exist and operate in the future. This can be valid for short-term forecasting but not for medium-term or long-term forecasting. iii) CONSENSUS: This requires the involvement of experts in specific fields. It always involves more than one person and requires each person to be an expert in his particular field. All the views/opinions are synthesized and a final forecast prepared. This may involve brainstorming sessions but the argumentative skills of a person, rather than her/his expertise, may determine the result. The responses and respondents remain anonymous.

iv) SIMULATION: These use analogs to model systems. Analogs can take a variety of forms - mathematical, mechanical, metaphorical, etc.

v) CROSS-IMPACT MATRIX: Events and developments have an effect on each other and share a relationship. Occurrence of one event can affect the likelihood of other events. This assists in looking at the relationships between events rather than just focusing on any single variable.

vi) SCENARIOS: Scenarios are narrative in nature and describe a potential course of events. This method assumes that events are inter-related. It is like a script that is written keeping one optimistic scenario and one pessimistic scenario in mind. These two scenarios assist in provoking the thought-process of the decision-makers.

vii) DECISION TREES: These are graphical devices illustrating structural relationships between alternatives. They are dichotomous (Yes/No) in their initial stages but became complex over a period of time. Information technology has further assisted in creating complex decision trees. It assumes that an expected value of a discrete variable can be calculated as the average value for the particular variable.

Q.7 Discuss the process of decision making. INTRODUCTION Tourist decision making is the process by which a tourist decides on buying a particular tour package, or books a particular type of room in a hotel or even a travel ticket on a particular airline. What motivates the tourist to choose a particular service is of the utmost interest to a person studying tourist behaviour. As any tourist who purchases a service and uses it is a consumer, he/she will display consumer behaviour and will go through the consumer decision-making process while purchasing any tourism service. Belch and Belch define consumer behaviour as "the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires". Consumer behaviour is the behaviour that consumers display in the decisionmaking process when facing several choices. Study of consumer behaviour is the study of when, why, how, and where people buy (or do not buy) products or services. It attempts to understand the buyer decision-making process, both individual and group. It studies the characteristics of individual consumers - such as demographics and behavioural variables - and also tries t assess the influences on a consumer's buying decisions. This Unit will try to understand the consumer behaviour as displayed by the tourist In Unit 6, you have studied motivation and travel motivators. This Unit tries to understand the process of tourist choosing i.e. deciding on a particular service or product among many alternative choices. An understanding of the decision making process will help you understand how to reach your target market better. PROCESS OF DECISION MAKING An understanding of how consumers decide on what to purchase is critical to the success of a product or service. There are numerous theories and models describing the consumer purchasing decision process. The basic concept behind these theories and models are similar. The customers go through a five-stage decision-making process in any purchase. These stages are described below.

1. Problem Recognition: This is the first and most basic step in the purchase decision process. The buying process starts with need recognition. The need may be perceived or real. The problem recognition process occurs every time consumers decide they need something. The need can be of new clothes, of a new sofa or of a new home or a vacation. The marketers can effectively initiate a consumer's awareness of a need with the right advertising campaign. 2. Information Search: In this stage the consumers gather information on a prospective product. A consumer can obtain information from several sources: Personal sources: family, friends, neighbours, etc. Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays Public sources: newspapers, radio, television, consumer organisations; specialist magazines Experiential sources: handling, examining and using the product

The extent of the information search is typically related to the cost of the product or service and the consumer's prior knowledge and experience with the product or service category. If a consumer is considering the purchase of an apartment, then they will collect information and research the builders offering apartments. However, the information search may be less extensive when the consumer considers purchasing less expensive or daily-use items. Similarly, if a consumer is planning his or her first trip abroad they will search for and collect more information compared to the information collected for domestic travel. Marketers can significantly impact the decision process by providing product information. Detailed product information, available product features/attributes and benefits may satisfy potential consumers' need for information. 3. Evaluation of Alternatives: It is the process where consumers determine what features they would prefer. Consumers evaluate and assign a value to various product features and attributes. If a consumer plans to purchase an automobile, then he will evaluate its features and decide on the purchace based

on the features he desires in the automobile. Since there is generally a cost associated with the various features, consumers have to rank the features and decide which one is most important to them. If the consumer is not satisfied with the selection or the evaluation of the product criteria, they will revert to the information search. 4. Purchase Decision: It occurs when the consumer actually makes the purchase. It includes the service or product, method of payment, package, location of purchase and all other factors that are associated with purchasing the service or product. This step is directly influenced by marketers. The marketing campaign is considered effective if the consumer purchases a particular product or 'service; for example, he/she choosing a particular five-star hotel among 10 five-star hotels in a city. 5. Post-Purchase Evaluation: The final stage is the post-purchase evaluation Of the decision. It is common for customers to experience concerns after making a purchase decision. Having bought a product, the customer may feel that an alternative would have been preferable as they do not understand whether they have made a good or bad decision. Having used a service, customers will evaluate it against their expectation from the service based on their information search. Marketers can manage the post-purchase stage by never promising more than what can be delivered. Monitoring customer satisfaction is very vital in the service industry as it leads to increase in repeat customers and word-of-mouth publicity. All the above stages of the decision-making process are common toy purchasing decision, including decisions regarding any tourism related service.