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A PROJECT REPORT ON

“MARKET ANALYSIS OF TOUR PACKAGES & BUSINESS DEVELOPMENT


IN COLLABORATION WITH THE AGENTS”

Towards the Fulfillment of the Requirements of the two-year Post Graduate


Program

At IILM, Gurgaon, Haryana

Submitted to: Submitted by:


IILM-Gurgaon ABDUL WADOOD
Haryana-122003 Registration no.: PGS20090063
Batch: PGP (2009-2011)
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

INDEX

Serial no. Particulars Page no.


1. Summer Internship Declaration Form 4
2. Acknowledgement 5
3. Executive Summary 6
4. INTRODUCTION-Tourism in India 7-8
6. INTRODUCTION-IRCTC: 9-16
(a) Company Profile
(b) Mission & Vision and Objectives
(c) Organizational Structure
(d) Manpower
(e) Financial performance
(f) Contribution to Revenue to the Railways
(g) Main Business Activities
(h) Future Plans
8. Brief Introduction- Rail Tour Package 17-24
(a) Rail Tour Packages running from Delhi Origin
9. History of Works performed at the IRCTC 25
(a) Call handling
(b) Attending the customers visiting to the Facilitation Center
(c) Meeting with the Agents
(d) Making calls to the agents on Pan India Basis
(e) Conducted agent survey to understand the market for the tour
packages provided by the IRCTC
7. SWOT Analysis of IRCTC 26
10. Project Introduction 27
(a) Objective & Scope

INDEX

11. Methodology-Data Collection 28


(a) Primary Data
(b) Secondary Data
12. Data Analysis 29-42
13. Findings & Conclusion 43
14. Suggestions & Recommendations 44-45
15. Bibliography 46

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Declaration Form

I, ABDUL WADOOD do hereby declare that the Project work entitled,

“MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT


IN COLLABORATION WITH THE AGENTS”

Submitted by me towards for the partial fulfillment of the Post Graduate


Program (PGP) to IILM Institute for Higher Education, is my own
original work and has not been submitted earlier either to IILM or to any
other Institution for the fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part is lifted


and incorporated in this report from any earlier / other work done by me or
others.

Place : New Delhi

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Date : 02-06-2010

Signature of Student:

Name of Student: Abdul Wadood

Address: Maulana Azad Chowk,


Mehsaul, Sitamarhi,
Bihar-843302

ACKNOWLEDGEMENT
An exploratory study like this is never the outcome of the efforts of a single
person and I would like to express word of thanks to all those whose sincere
advice and information has made this project report an educative and
informative one.
It gives me immense pleasure to take this opportunity to thank all those who
helped me in successfully completing this project.

First of all I owe a huge debt of thanks to IRCTC (Indian Railways Tourism
& Catering Corporation Ltd.) which gave an opportunity to do my 8 weeks
internship as well as help to learn the corporate culture.

Gracious help from various sources have contributed tremendously towards


the completion of this project work. With all my dedication and regards I take
this opportunity to express my profound sense of gratitude to:
Mr. Arun Srivastava-JGM/Tourism,
Mr. Pradeep Dhiman-DGM/Tourism,
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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Ms. Shweta Singh-Assistant Supervisor/Tourism, and


Mr. Raushan Jha-Executive.
IRCTC Tourism Facilitation Centre, Jawahar Vyapar Bhawan,
Janpath New Delhi-110001

I am extremely thankful to Ms. Geeta Mittal-Manager (Placements), IILM


Institute for Higher Education-Gurgaon, Haryana for her timely
guidance, support, advice and cooperation during the completion of this
project.
Last but not the least, I pay my sincere gratitude to the Almighty who always
showers his blessings on me & gives me the courage & potential to do good
work.
Abdul Wadood
PGS20090063

EXECUTIVE SUMMARY
Tourism is an engine of economic growth in India. Tourism Sector is
estimated to contribute more than 6% to the GDP & more than 9% to the
employment.
India’s tourism sector is witnessing an unprecedented growth, backed by the
increase in purchasing power of the Indian middle class, arrival of high-
spending foreign tourist’s as well as powerful government campaigns being
run promoting India as ‘Incredible India.
Travel & tourism industry in India is marked by considerable government
presence. Each state has a tourism corporation, which runs a chain of hotels/
rest houses and operates package tours, while the central government runs the
India Tourism Development Corporation.

IRCTC being the subsidiary of Ministry of Railways has all the reasons to
cheer up.
It is a public sector enterprise incorporated on 27th September, 1999 as an
extended arm of the Indian Railways to upgrade, professionalize and manage
the catering and hospitality services at stations, on trains and other locations
and to promote domestic and international tourism through development of

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

budget hotels, special tour packages, information & commercial publicity and
global reservation systems.
IRCTC launched travel packages in 2007 and offers 104 rail tour packages
and 158 holiday packages at present. While the rail tour packages are
inclusive of confirmed rail travel, the holiday packages provide for alternative
modes of transportation, apart from regular lodging and dining facilities.

IRCTC’s revenue from tourism has increased over 200 per cent since 2007.
But still it is only 0.09% of the total market share, which is not that
impressive.
India is a potential market for the tour packages, & IRCTC can make most of
it. As it is the subsidiary of ministry of railways having Rail Tour Packages as
a point of difference.
People still prefer to travel by train over other modes of transportation & as
far as Airlines are concerned they are very costly & out of budget for many
individuals.
So, if IRCTC wants to increase its market share it has to very strategically
plan its marketing activities and use its powerful agent force to promote &
sell its packages.
E- Ticketing agents do have many clients & they do deal with thousands each
month, what more could be better than this for IRCTC to reach the wide
spread consumer base for its tour packages.
The only thing needed is to make them aware, informed & motivated to reach
the targeted market share of 1% till the end of 2015.

Introduction- Tourism in India


Tourism is an engine of economic growth. In India, Tourism Sector is estimated to
contribute more than 6% to the GDP & more than 9% to the employment.
The news of normalcy returning to the Global economies has given all the reason to cheer
up & expect the buoyancy to return soon to the Indian Tourism Industry.
The bad economic phase is clearly out, at least for Destination India that has bounced
back in style.
India’s tourism sector is witnessing an unprecedented growth, backed by the increase in
purchasing power of the Indian middle class, arrival of high-spending foreign tourist’s as
well as powerful government campaigns being run promoting India as ‘Incredible India’.

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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The Foreign Tourist Arrivals (FTAs) figures during the first 3 months have shown an
encouraging trend. December, 2009 has witnessed an unprecedented rise of 21% growth
in comparison to the corresponding period during the previous year.
The Foreign Tourist Arrivals (FTAs), during the Month of March 2010, grew 12.9% at
4.72 Lakh as FTA of 13.86 lakh in January-March 2009.
The Indian tourism industry is incredibly vibrant. In fact the country is fast acquiring the
image of a major global destination. Further, travel and tourism industry is one of the
most lucrative industries in India, bringing in substantial amount of foreign currency.
This is demonstrated by the fact that during 2006, four million tourists visited India
and forked out not less than US $8.9 billion.

Many reasons are being cited for the growth and prosperity of India’s travel and
tourism industry. India’s rising economy has already added up millions annually to
India’s middle class, a group that’s been driving domestic tourism.

Medical Tourism is yet another sunrise sector associated with the tourism industry
of India. The sector is currently growing at the rate of 30 percent per annum.
Tourists focusing on Indian medication are expected to reach one million soon.

Moreover disposable income has scaled up by 10.11 percent annually from 2001-
2006 and major part of it is spent on travel.

Furthermore, the booming IT and outsourcing industry has obliged many


foreigners to visit India on business purposes.
And more often than not these foreigners end up extending their trips.
According to an industry source, foreign tourists are known to spend more
time in India than elsewhere. The influx of foreign tourists is projected to
increase by over 22 percent on an annual basis, with a 33 percent increase in
foreign exchange earnings recorded in 2004.

Travel & tourism industry's contribution to Indian industry is immense.


Tourism is one of the main foreign exchange earners and contributes to the
economy indirectly through its linkages with other sectors like horticulture,
agriculture, poultry, handicrafts and construction. Tourism industry also
provides employment to millions of people in India both directly and
indirectly through its linkage with other sectors of the economy. According to

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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an estimate total direct employment in the tourism sector is around 20


million.

The buoyancy in the Indian tourism industry can be attributed to several


factors.
Firstly, the tremendous growth of Indian economy has resulted in more
disposable income in the hands of middle class, thereby prompting
increasingly large number of people to spend money on vacations abroad or
at home.

Secondly, India is a booming IT hub and more and more people are coming
to India on business trips.

Thirdly, aggressive advertising campaign "Incredible India" by Tourism


Ministry has played a major role in changing the image of India from that of
the land of snake charmers to a hot and happening place and has sparked
renewed interest among foreign travelers.

COMPANY PROFILE-IRCTC LIMITED


Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a Public
Sector Enterprise under Ministry of Railways.  

IRCTC was incorporated on 27th September, 1999 as an extended arm of the


Indian Railways to upgrade, professionalize and manage the catering and
hospitality services at stations, on trains and other locations and to promote
domestic and international tourism through development of budget hotels,
special tour packages, information & commercial publicity and global
reservation systems.

While discharging its mandate, the Company has made a significant mark in
its passenger-services oriented business lines like setting up of Food Plazas

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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on Railway premises, ‘Railneer', Rail Tour Packages and ‘Internet Ticketing'


bringing great deal of professionalism into the operations.

In addition to above, IRCTC is managing On Board Catering Services in


Rajdhani / Shatabdi / Duronto   and Mail / Express Trains and Static Catering
Units such as Refreshment Rooms, AVMs, Book Stalls, Milk Stalls, Ice-
cream Stalls, Petha & Peda Stalls etc. across the Indian Railway Network.

IRCTC launched travel packages in 2007 and offers 104 rail tour packages
and 158 holiday packages at present. While the rail tour packages are
inclusive of confirmed rail travel, the holiday packages provide for alternative
modes of transportation, apart from regular lodging and dining facilities.

IRCTC’s revenue from tourism has increased over 200 per cent since 2007.
“Depending on demand, IRCTC constantly modifies and diversify the range
of travel products to expand business. It has recently introduced packages for
school trips,” Tandon explained. Body Text + Left: 0.39", Right: 0.39"
Indian Railway Catering and Tourism Corporation Ltd (IRCTC) plans to
nearly double its revenue earnings from tourism services during this financial
year.
“Last fiscal, IRCTC had earned Rs 29 crore from tourism packages; this year,
it is expected to grow to around Rs 56 crore”, said Rakesh Tandon, managing
director.
IRCTC is also looking at measures to boost bookings on its tourist train,
Mahaparinirvana Express. In 2008-09, 484 passengers had availed of the tour
on the Buddhist circuit. This year, IRCTC hopes to make at least 1,000
bookings on the train. It further plans to operate its first pan-India luxury
tourist train, Maharajas’ Express, in collaboration with Cox and Kings.

MISSION & VISION


"Enhance customer services and facilitation in railway catering, hospitality,
travel and tourism with best industry practices."
IRCTC has several objectives to accomplish from being quality controlled
and customer oriented to being sensitive to necessary changes.
The organization is obligatory to be very alert of the heritage and
environment of the voyage and augment the same by means of innovative
marketing.
IRCTC is anticipated to increase the services’ effectiveness provided by
means of private-public partnerships.

OBJECTIVES
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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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o To be a customer friendly company through constant innovation,


technology driven and human resource development.
o Optimize resources, increase manpower productivity through quality
product vending and innovative marketing strategies.
o Upgrade and consolidate catering services in the organized sector.
o Expand areas of core competencies; enhance business opportunities
through efficient public - private partnerships to maximize generation
of resources.
o Imbibe strong and ethical work culture through teamwork, build and
reposition Indian Railways in the emerging services sector.
o Evolve high standards of business ethics, quality management and
effective cost control measures.
o Concern for the environment and heritage.

ORGANIZATION STRUCTURE
Corporate Office of IRCTC is situated at New Delhi, which is headed by the
Managing Director.
Managing Director is being assisted by three Directors,
Director (Catering Services), Director (Tourism & Marketing) and Director
(Finance), and nine Group General Managers.

For smooth operations of the business across all over the country, five Zonal
Offices are working at Delhi, Kolkata, Mumbai, Chennai and Secunderabad.

South Zone Office is headed by Regional Director and all other Zonal Offices
are headed by Group General Managers.

These Zonal Offices are assisted by ten Regional Offices at Lucknow,


Chandigarh, Jaipur, Bhubneshwar, Guwahati, Patna, Bhopal, Ahemedabad,
Bangalore and Ernakulam, which are headed by Chief Regional Managers /
Regional Managers.
MANAGEMENT OF IRCTC
NAME
S.No.

Mr. Rakesh
Managing Director
Kr.Tandon
2. Dr. Nalin Shinghal Director (T & M )
3. Mr. Vinod AsthanaDirector Catering Services
Mr.Vishwa Ranjan
4. Director Finance
Gupta
5. Mr. Aneet Dulat GGM-Corporate Services

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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6. GGM- Departmental Catering Services


Mr. N.P. Singh
7. GGM-P & Q
Mr. Prem Narayan
8. GGM-Services
Mr. Vineet Singh
Mrs.Vandana
9. GGM–Tourism & CVO
Bhatnagar
10. GGM –Information Technology Services
Mrs Rajni Hasija
11. Mr.Shivraj Singh GGM-Licensed Catering Services
Mr. Mahindra. P.
12. GGM-Finance
Mall
13. Mr. A. K. Jain GGM-Railneer
14. Mr. R.S. Bhiodnia GGM-Infrastructure
Mr. Sanjay
15. GM-Operations
Agarwal
Mr. Pankaj
16. AGM-Information Technology
Motwani
AGM & Company Secretary
17. Mr. Rakesh Gogia
Mr. Pankaj
18. AGM- Finance
Malhotra
AGM- Tourism
19. Mr. Rajiv Gupta
JGM-Civil
20. Dr. S. R. Iyer
Mr. Arun
21. JGM-Tourism
Srivastava
Mr. R. K.
22. JGM-HRD
Malhotra

MANPOWER:
At present IRCTC have 4453 employees (as on 31st December, 2009) on its
roll. The employees comprise of IRCTC Direct Employees, Deemed
Deputation absorbers, Deemed Deputations, deputations and fixed term
employees.

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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For bringing professionalism in the work culture, IRCTC has recruited


professionals in different field like HR, Tourism, Catering and Finance,
through direct recruitment or campus recruitment.  

FINANCIAL PERFORMANCE
During the year 2008-09, the Corporation achieved a total income of Rs.
618.77 Crores as compared to Rs. 527.66 Crores in 2007-08 thereby
registering a growth of 17.30 %.  

The increase was achieved in spite of the fact that bed roll and cleaning
business has been transferred back to Railways.  
The major increase in the income in the year 2008-09 over previous year was
achieved due to licensed catering (from Rs. 289.20 Crores to Rs. 341.02
Crores), quantum jump in internet ticketing (from Rs. 39.18 Crores to
Rs.74.81 Crores) and tourism activities (from Rs. 9.72 Crores to Rs. 27.94
Crores).
The income of licensed catering increased on account of higher number of
units put on tender, efficient tendering system and increase in licence fee
from static units.
Quantum jump in internet ticketing was witnessed due to good marketing
efforts, upgraded infrastructure and improved customer care.

The growth in tourism business was achieved due to IRCTC's foray into
educational tour business, tour package business take over of Bharat Darshan
trains by IRCTC.  

A net profit of Rs. 46.50 Crores was earned during 2008-09 as compared to
Rs. 20.75 Crores in 2007-08 due to enhanced revenue and control on
expenditure.

An amount of Rs.30.00 Crore has been provided as Haulage Charges as was


provided during the previous year. As at 31st March 2009, the Reserves and
Surplus of the Corporation stood at Rs.94.46 Crore.

The Net Worth went up from Rs. 78.85 Crore during the previous year to
Rs.114.46 Crore during the year under review.

MAIN BUSINESS ACTIVITIES


1. On Board Catering Services and Static catering units on the Indian
Railway Network:
Hospitality Services covers on board catering services in the trains, catering
services at stations through stalls, food plazas/fast food units & Automatic
Vending Machines commissioned at A, B & C class of Railway stations.
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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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IRCTC is managing currently 19 Rajdhani, 13 Shatabdi, 16 Jan Shatabdi, 6


Duronto Express , 9 Garib Raths, 205 Mail/Express trains and 118 trains have
train side vending facility.
IRCTC has currently 53 Food Plazas, 13 Fast Food units and 1 Quick Service
Food Kiosks, 677 Automated Vending Machine , 2950 Stalls, 3291 Trolleys
& Khomchas , 698 Book Stalls, 249 Milk Stall & 7918 Static units spread
over 1008 no. of A, B & C Category of Stations over Indian Railways
network.

2. Manufacturing Packaged Drinking Water for Indian Railway


Passengers:
Two plants of Railneer packaged drinking water are operating at Nangloi
(Delhi), and Danapur (Bihar).
The capacity of the plants was increased from 5,500 cartons per day to 8,500
cartons per day during March, 2009 for Nangloi Plant and during December,
2009 of Danapur Plant.  

3. New Rail Neer plants:


For Southern Region, Rail Neer Plant of 15,000 cartons per day is being set
up at Palur near Chennai. Tender has been awarded and physical work for
setting up building is in advance stage.
For Western region, architect and plant consultants have been appointed for
Rail Neer plant at Ambernath near Mumbai. The rated capacity of the plant is
25,000 cartons per day.

4. Managing all India Railway Enquiry Call Centre:


IRCTC is managing a Call Center for passenger enquiry. A customer can dial
139 from anywhere in the country and get all information from Call Center
related to train timing, PNR confirmation, train routes and other relevant
information related to Indian Railways.

5. Running of Special Train,   Special Charters / Coach and promotion of


Value added tours:
Railway Tourism has seen excellent growth in India Right from IRCTC's
inception, IRCTC have undertaken dynamic marketing strategy with major
tour operators and State Tourism as our partners for providing exclusive tour
packages across the country. At present IRCTC is providing following
Tourism services across India:
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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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A. Buddhist Circuit Special Train


IRCTC has designed a train for the Buddhist Circuit keeping in mind the
profile of Buddhist tourists. It covers important sites connected to life of
Buddha, Bodh Gaya , Sarnath , Kushinagar , Lumbini , Shravasti , Rajgir ,
Nalanda.
The train offers comprehensive on board and off board services comprising of
catering, housekeeping, hotel accommodation, road transport, sightseeing,
trained tourist guides, security, medical facilities, insurance etc. all inclusive
in the package.
This train won the National Tourism Award in Feb., 2009
B. Bharat Darshan – Village on Wheels
IRCTC is operating Bharat Darshan – Village on Wheels Train for Budget
Travelers @   Rs 500/- per day (all inclusive packages).
The package includes Train journey, accommodation, road transport, site
seeing, meals etc.   The itineraries range from 7 to 20 days covering major
tourist and religious places across India.

C. Rail Tour Packages:


IRCTC offers all Inclusive packages with confirmed Rail reservation, hotel
accommodation, road transportation, meals, sightseeing etc.

At present over 70 packages for important tourist destinations across India


covering Kerala, Rajasthan, Tamilnadu, Karnataka, Jammu & Kashmir, Uttar
Pradesh etc. are being operated.
 
D. Hill Charters:
The Steam trains are operated on Darjeeling Himalayan Railway, Kangra
Valley Railway, Kalka-Shimla Railway and Nilgiri Mountain Railway.

Hill charters showcase the special characteristics of the respective hill


sections with heritage stations, seasonal features, breath taking scenery &
adventure tourism. IRCTC offers single window value added services.
 

E. Educational Tours:
IRCTC offers Educational Tours Package with rich educational content and
in a caring environment for the students of educational institutions across the
country.

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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The facility is being used by Kendriya Vidyala Sangathan, Sarva Shiksha


Abhiyan of Tamil Nadu and West Bengal and Delhi State Government
Schools.
 
F. Tourism Portal:
IRCTC's tourism portal www.railtourismindia.com is the fast growing a one
stop travel shop and meets all the travel & tourism needs of a tourist.

Online booking of tour packages, hotels and Car Rental across the country is
becoming increasingly popular through this National Tourism Award winner
tourism portal of IRCTC.
 
G. Budget Hotel:
IRCTC is planning to develop Budget Hotels through Public Private
Partnership. Budget Hotels are to be set up in the vicinity of railway stations
for tourists and rail users.

These Budget Hotels will provide quality guestrooms with modern facilities,
décor and ambience on affordable prices, choice of food and beverage
services and Web enabled reservation system.
At present four budget hotels are operational at New Delhi, Howrah, and Puri
& Ranchi in the existing buildings.

H. Luxury Tourist Train:


IRCTC has set up a 50:50 Joint venture Company, Royale India Train Tours
Limited (RIRTL) in Participation with M/s Cox & Kings India Limited.

RIRTL will run Pan India Luxury Tourist Train. Estimated Cost of the train is
Rs.49.48 Crore.

The Luxury Train named as Maharajas' Express is owned by IRCTC.


Marketing and operation of the Maharajas' Express would be done by RIRTL.

The train was officially unveiled at the ITB Berlin in March, 2009. The train
has started its commercial operation with effect from 6th March, 2010.

FUTURE PLANS:
Some of the initiatives planned for tourism, catering activities and Internet
Ticketing are as under:

1. FOR CATERING

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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• Strategic tie ups: IRCTC is working towards tie ups in the areas of mobile
catering, Rail Neer and product formation.

• Static Units: Streamlining of procurement process, standardization of
services and automation in base kitchens is the focus area in     major static
units.

New Rail Neer Plants:


For Southern Region, Rail Neer plant is being set up at Pulur near Chennai.  
Tender has been awarded and physical work for setting up building is in
advance stage.  
For Western region, architect and plant consultants have been appointed for
Rail Neer plant at Ambernath near Mumbai.

Modular Stalls:  
Replacement of all catering stalls with uniform design of modular stalls is
proposed to be undertaken and M/s Jindal Steel is working on a prototype
which will give longer life and aesthetic look.

Food Plazas/Fast Food Units/Quick Service Food Kiosks:


More than 20 food plazas, 20 Fast Food Units and 5 QSFK are in advance
stage of planning.

Food Courts:
IRCTC is planning to develop food courts at stations with contemporary
interior designs.

2. FOR TOURISM:
o Launching of a Luxury Tourist Train with pan India itineraries.
o Thrust of Educational Tour on All India basis.
o Further development of rail tour package business
o Strategic tie-ups for promoting tourism
o Comprehensive travel services to foreign tourists booking tickets on
IRCTC website.  
o Modernization of IT infrastructure.
o Setting up of disaster recovery site.
o Increasing the market share from 0.09% to 1% of the total market size
till the end of the year 2015.

RAIL TOUR PACKAGES AT A GLANCE

Railway Tourism has seen excellent growth in India. Right from IRCTC's
inception, IRCTC has undertaken dynamic marketing strategy with major
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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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tour operators and State Tourism as their partners for providing exclusive tour
packages across the country.

IRCTC arranges for full train charters, coaches as well as reserved berth
programs through regular trains for tourism purposes. During this short
period we have been able to provide such facilities to over 50,000 persons.

Rail Journey is considered to be the most convenient way of traveling. Rail


Travel caters to the need of each & every segment of people.
When the people have to travel long distances they prefer rail journey over
other modes of traveling.

Airlines are also a good mode of traveling, but the limitation is that it is a
niche market & doesn’t cater to all the segments of the society.
On the other hand, road transport is very dominant mode of traveling, but the
limitations are that in many areas the roads are congested & of poor quality.
Another major problem is the traffic. Hence it takes more time & the journey
is tiresome.

IRCTC identified this opportunity & developed “Rail Tour Packages.” The
rail tour packages include- confirmed rail journey, stay at hotel, meals, &
transfers.

Rail Tour Packages are the USP of the IRCTC. Rail tour packages have made
traveling more relaxed & comfortable.

The IRCTC on regular basis makes some necessary changes in the tour
packages. Some packages are taken back & some new packages are
introduced or some old packages are revised on time to time basis.

As of June, 2010 there are 10 packages running from Delhi origin to various
destinations across the country, that of 32 packages in the month of May,
2010.

RAIL TOUR PACKAGES RUNNING FROM DELHI ORIGIN


(As on June, 2010)

1. NEW DELHI-VAISHNO DEVI PACKAGE:


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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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Package Tariff
child
Single Double Triple Child
Category without
Occupancy Occupancy Occupancy with bed
bed
Standard Rs.1484/- Rs.1248/- Rs.1170/- Rs.718/- Rs.410/-
Comfort Rs.2667/- Rs.2431/- Rs.2353/- Rs.1370/- Rs.1077/-

Package Includes:
o Journey in Shalimar express in 3AC (Comfort package)& Sleeper
class (Standard package)
o Transfers from Jammu railway station to hotel and back in (Non -AC
Local Bus)
o Transfer to Banganga and back in hotel vehicle with yatra slip.
o One Breakfast
o Services of Escort at Jammu station
o Stay at Meridian Hotel(Standard Hotel)

2. VAISHNO DEVI ECONOMY PACKAGE

Package Tariff
Child
Child
Adult without
Adult (Single Adult (Triple with extra
Category (Double extra
Occupancy) Occupancy) bed(5-11
Occupancy) bed(5-11
years)
years)
Standard Rs.1525/-* Rs.1289/-* Rs.1211/-* Rs.764/-* Rs.468/-*

Package Includes:
o Journey in Uttar Sampark Kranti express in sleeper class (Daily)
o Transfers from Jammu railway station to hotel and back in (Non -AC
Local Bus)
o Transfer to Banganga and back in hotel vehicle with yatra slip.
o One Breakfast
o Services of Escort at Jammu station

3. NEW DELHI-MATA RANI PACKAGE

Package Tariff (From Sunday to Thursday)


Single Double Triple Child with extra Child without extra
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 18
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Occupancy Occupancy Occupancy bed bed


Rs.4631/- Rs.3640/- Rs.3475/- Rs.2045/- Rs.1797/-
Package Tariff (For Friday & Saturday)
Single Double Triple Child with Child without
Occupancy Occupancy Occupancy extra bed extra bed
Rs.5587/- Rs.4172/- Rs.3936/- Rs.2363/- Rs.2009/-

Package Includes:
o Comfortable Rail Journey in AC 3-Tier (Return ticket).
o On-board and off-board catering on fixed menu basis as per the
itinerary.
o Arrival / Departure transfer in non ac Vehicle.
o Yatra Slip (for Vaishno Devi).
o Accommodation in Hotel Country Inn & Suites or similar.
o Enroute Sightseeing of KAND KANDOLI TEMPLE,
RAGHUNATHJI TEMPLE, BAG-E-BAHU GARDEN.
o Services of Experienced Tour Escort.
o Stay at Country Inn & Suites (4-star).

4. SAI DARSHAN DELHI PACKAGE:

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 19


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Package Tariff
Doubl
Triple Child
Categor e
Occup with
y Occup
ancy bed
ancy
Rs.4050/ Rs.3775/ Rs.1464/
Standard
- - -
Rs.6308/ Rs.6034/ Rs.2671/
Comfort
- - -

Package Includes:

Standard Package
o To & fro tickets in 3 AC Class
o Transfers & sightseeing in Non AC Vehicle
o 2 breakfast & 1 dinner (vegetarian meal)
o Visit to Shani Singhapur
o 01 night accommodation in AC room as per the itinerary
o Stay at Sai Sahavas-2 Star

Comfort Package
o Train tickets both to & fro in Sleeper class
o AC accommodation
o Meals (Two breakfast & one dinner)
o Transfers & sightseeing in non AC vehicle
o sightseeing of Shani Shingaur
o Stay at Sai Mahal (standard Hotel)

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

5. DELHI-CORBETT-DELHI TOUR PACKAGE:

Package Tariff
Adult Adult Adult Child 5-12 Child 5-12
(Single (Double (Triple with Extra without Extra
Occupancy) Occupancy) Occupancy) Bed Bed
Rs.10279/- Rs.5832/- Rs.5239/- Rs.2838/- Rs.2127/-

Package Includes :
o Arrival & Departure Transfers - Ramnagar / River View Retreat Ex
Railway Station.
o Welcome Drink on Arrival.
o Accommodation in River View Retreat or similar.
o Guest Registration & Express C-In the well appointed A/C Cottage.
o 02 Breakfast, 02 Lunches, 02 Dinner
o Morning & Evening Tea with cookies every day.
o Choice of seasonal Fruit Platter.
o Guided Nature Walk.
o 01 Jeep safari to Jhirna.
o Souvenir on departure

6. MAYAPUR DHAAM TOUR PACKAGE:

Package tariff
Adult Child (5-11)
Rs.6600/- Rs.4600/-

Package Includes:
o Confirmed Train Tickets in AC 3 Tier from Ex New Delhi to Sealdah
& back on every Saturday by Sealdah Rajdhani(2314)/ Howrah
Rajdhani (2301)
o Quality On board meals.
o Assistance on arrival at New Delhi (Departure) & Sealdah Station
(Arrival)
o Pick up & drop service from Sealdah Railway Station by Air
conditioned vehicle
Package Excludes:
o Stay arrangements at Mayapur Dham
o Off board meals
o Expenses of personal nature
o Laundry
o Telephone Charges
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 21
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

o Anything not mentioned under the inclusion part

7. KASHMIR PARADISE TOUR PACKAGE:

Package Tariff
Twin Triple Child (4-11
Sharing Sharing Yrs)
Rs.14800 Rs.12950 Rs.6650

Package Includes:
o Confirmed Train Tickets in 3 Tier AC Class by Jammu Rajdhani
o LTC Compliant Package
o Transfers and sightseeing by Non-A/c Toyota Quails/Tata
Sumo/Tempo-Traveler
o Hotel / Houseboat accommodation (Modified American Plan basis)
o Shikara ride on Dal Lake
o Service of representative at the time of arrival & departure.
o Pick up & drop from the Railway Station
o Welcome drinks on arrival
o Sightseeing as per the itinerary
o All Govt. applicable taxes
o Services of experienced and licensed driver

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

8. NORTH TO NORTH-EAST:

Package Tariff
Twin Child with bed (5 to
Class
Sharing 11)
Deluxe(3AC
Rs 16000/- Rs 6400/-
)

Package Includes:
o Train Fare (as per itinerary).
o Welcome drinks on arrival
o Accommodation on twin Sharing Basis in Deluxe hotel.
o Meal Plan MAP(Breakfast + Dinner)
o Exclusive Non a/c vehicle for transfers & sightseeing. The vehicle
will not be at disposal it will be available to guest as per itinerary only
(point to point basis).
o All permit fees & hotel taxes (as per itinerary).

Package Excludes:
o Personal Expenses such as Laundry, telephone calls, tips & gratuity.
Mineral/soft/hard drinks, rafting, joyride (Toy Train)
o Additional sightseeing or extra usage of vehicle, other than mentioned
in the itinerary.
o Guide charges & Entrance Fees.
o Any cost arising due to natural calamities like, landslides, road
blockage, political disturbances, etc (to be borne by the client, who is
directly payable on the spot).
o Any increase in taxes or fuel price, leading to increase in cost on
surface transportation & land arrangements, which may come into
effect prior to departure.
o Anything which is not include in the inclusion.

Child Policy:
o Child below 5 yrs complimentary
o Child 5 - 11 yrs 40 % DISCOUNT ON PACKAGE COST
o Above 12 Full fare as Adult

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 23


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

9. AMARNATH YATRA RAIL TOUR PACKAGE:


Package Tariff
Child with extra
Double Triple bed(4-11 years)
Occupancy Occupancy Sharing parents
room
Rs.12550/- Rs.10950/- Rs.5500/-

Package Includes:
o Confirmed Train tickets in 3 Tier AC Class
o Transfers and sightseeing by Non-A/c Toyota Quails/Tata
Sumo/Tempo-Traveler
o Hotel / Houseboat accommodation ( Modified American Plan basis)
o Shikara ride on Dal Lake
o Service of representative at the time of arrival & departure.
o Pick up & drop from the Airport / Railway Station / Specified point
o Welcome drinks on arrival
o Sightseeing as per the itinerary
o All Govt. applicable taxes
o Services of experienced and licensed driver

10. NEW DELHI-SHIRDI PACKAGE:

Package Tariff
Adult Adult Child Child
Double Triple with without
Occup Occup extra(5 extra(5
ancy ancy -11yrs) -11yrs)
Rs.6350/- Rs.6114/- Rs.5879/- Rs.5761/-

Package Includes:
o Confirmed train tickets (3 AC Class) for to & fro movements.
o On board & off board Meals as per the itinerary.
o Accommodation in Air conditioned rooms in 2 Star Deluxe (Hotel Sai
Sahvas) Hotels
o Manmad pick up & drop by comfortable Non AC vehicles.
o Sightseeing of Shirdi Dham & Shanisignapur

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 24


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

o Tour Escort services


o LTC Compliant package

LEARNINGS AT THE IRCTC:

a. Call Handling:
At IRCTC I was assigned the task to get through the various rail tour
packages running from Delhi origin, & after that I was assigned the task to
take calls for the “Mata Vaishno Devi Rail Tour Packages.”

b. Providing Information to the visiting Customers:


Another task involved was to attend the visiting customers at the Tourism
Facilitation Center & provide them with the necessary information about the
tour packages.

c. Meeting with the Agents:


At IRCTC my main task was assigned as to meet the IRCTC agents, those
who are already into selling tour packages & those who are willing to come
into this segment.
My primary objective in this task was to get feedback & provide appropriate
suggestion or solution of a problem, & Handle their Queries.
Also I had to insure that the agents are putting their efforts in promoting the
tour packages. And motivate those agents who actually show less interest or
no interest in promoting the tour packages.

d. Making calls to the agents on pan India basis: I had to make calls to the
existing agents of IRCTC on pan India basis. This activity was done to
understand about their promotional efforts towards the tour packages of
IRCTC, motivate them to aggressively promote the packages, get to know
their complaints (if any), and taking suggestions (if any) to improve the
existing services or developing new products & services.

e. Conducted agent survey to understand the market potential for


various tour packages & customer Psyche:
I had to get to know the market potential of various tour packages, in terms of
the customer demand for it. The agents are directly in touch with the
customers & hence they are able to provide information about the super
selling tour packages, the packages for which they get maximum demand.

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 25


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

SWOT ANALYSIS OF IRCTC


STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 26


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

1. Subsidiary of 1. Lack of 1. Buoyancy in the 1. Leading web


Ministry of motivation in Tourism Sector. portals like “Make
Railways employees My Trip”, “Cox &
2. Increase in Kings”, “Clear trip”,
2. Full back up by 2. Poor Individual disposable “Thomas cook”,
the Govt. Promotional income “Yatra” etc.
activities & public
3. Excellent relation 3. Air Packages & 2. Economic
Faith & Goodwill Road Transport Downturn
3. Limitations in Packages
4. Largest e- decision making 3. Terrorists Attacks
commerce website process 4. Booming Hotels & & Naxalites Attacks
Resorts Industry
5. Monopoly in 4. Delayed 4. Withdrawal of
Rail tour packages decision making 5. Bids for Contract parental support from
& Rail Ticketing (National & the Ministry of
5. Not my work International) Railways, Govt. of
6. Concession on attitude of the India
booking of charters employees 6. Strategic Tie-ups
for better & 5. Low fare Airlines
7. Presence at more 6. Non existence of improved
than 1000 stations full fledge performance. 6. Private Small Tour
across the country Marketing team operators
7. Outbound Tourism
8. Cheapest, yet 7. Non pro-active Segment 7. Increasing Inflation rate
best in Spiritual behavior of
Tour Package employees 8. Tie-ups with
Segment leading institutions &
8. Poor customer organizations for
9. Unique products support services educational tours &
like other tours at
Mahaparinirvan 9. Poor National &
express, Bharat infrastructural International
darshan, Maharaja facilities platform.
Express Trains
10. Internal 9. Booming Medical
10. LTC approved conflicts among the Tourism
Packages employees
10. Common Wealth
Games-2010

PROJECT INTRODUCTION

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MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

OBJECTIVE & SCOPE

Objective:
The objective of my project is to evaluate the Market potential for various
tour packages of the IRCTC also understanding the price feasibility of the
tour packages.

Scope:
My study will be confined to:
o Agents, who are already into selling tour packages of the IRCTC.
o Agents, who have not yet started selling the tour packages but are
looking forward to come into this segment

WHAT CONTRIBUTION WOULD THE PROJECT MAKE & TO


WHOM:
Results of my survey & analysis would provide a very useful input to the
management of the IRCTC who are already facing stiff competition from the
giants like “Make My Trip”, “Cox & Kings”, “Clear Trip”, etc. and
many small Tour operators.

My survey will give them an insight about the customers’ perception about
the IRCTC & various other brands, why do they shift to other brands & what
factors influence them to make a purchase decision.

With the help of my survey & analysis the IRCTC can plan its products &
activities more strategically to gain new customers & retain the old ones.
This will certainly help the IRCTC to attain the goal to double its earning
from tourism in the year 2010.

METHODOLOGY

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 28


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Primary Data:
For obtaining the primary data for my project, I used two research
instruments:
o Questionnaire
o Structured Interviews

1. For Questionnaire:
(a)Sample size: 75
(b)Sample Composition:
o Agents, who are already into selling tour packages of the IRCTC, and
o Agents, who have not yet started selling the tour packages but are
looking forward to come into this segment

2. For Interviews:
(a)Sample size: 10
(b)Sample Composition:
o Agents, who are already into selling tour packages of the IRCTC

Secondary Data:
Before getting into the primary data, it was essential that I go through the
secondary data to understand the tour packages, & to understand the trends in
tourism industry.
The sources of secondary data were as follow:
o Previous studies done in the IRCTC
o Suggestion & Complaints of the Agents
o IRCTC’s Website
o Using internet to explore about various Trends in tourism segment

DATA ANALYSIS & DATA INTERPETATION

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 29


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
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1. Are you already into selling tour packages?

Parameters No. of respondents


Yes 50
No 25
Total: 75

80
70
60
50 Yes
40 No
30 Total:
20
10
0
No. of respondents

Comment:
Out of 75 Agents surveyed, 66.66% fall into the category of the agents who
are already into selling the tour packages.
Rest 33.33% fall into the category of the agents who are willing to come into
this segment.

2. How is the response from the customers?


IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 30
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Parameters No. of respondents


Excellent 10
Very good 16
Good 24
Average 18
Poor 07
Total: 75

80
70
60 Excellent
50 Very good
40 Good
30 Average
20 Poor
10 Total:
0
No. of respondents

Comments:
The response from the customers is excellent as it can be seen that 32%
agents say that the response from the customers is good, 24% say that its
average, & 10% say that the response is excellent.

Hence the overall result is that the response from the customers for tour
packages is good. Only 9.33% agents say that the customer response for tour
packages is poor.

3. What kind of tour package is most in demand?

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 31


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Parameters No. of respondents


Spiritual Tour Package 38
Hill Station Packages 28
Wild life Tour packages 00
Desert & Heritage Tour 09
Packages
Beaches & Backwater Tour 00
Packages
Total: 75
Spiritual Tour
80 Package
70
60 Hill Station
50 Packages
40
Wild life Tour
30 packages
20
10 Desert & Heritage
0 Tour Packages
No. of respondents
Beaches &
Backwater Tour
Packages
Total:
Comment:
Out of the total agents surveyed it was revealed that they are getting
maximum demands for Spiritual Tour Packages, & Hill station Packages only

50.66% agents say that the most in demand package is Spiritual tour
packages, 37.33 agents say that the most in demand package is the Hill
Station package.
Where as only 12% agents say that they get maximum demand for Desert &
Heritage Packages.

4. What is the Customers’ perception about the price of the tour

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 32


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

packages?

Parameters No. of Respondents


Very High 12
Economical 63
Total: 75

80
70
60
50
Very High
40 Economical
30 Total:
20
10
0
No. of Respondents

Comment:
84% agents say that the Customers feel that the Packages of IRCTC are true
value for money & say that it is economical. Whereas, 16% agents said that
the customers complain that the price of the packages of IRCTC are very
high.

5. What do customers’ feel about the facilities included in the tour


packages?
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 33
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Parameters No. of respondents


Highly Satisfied 35
Satisfied 40
Dissatisfied 00
Highly dissatisfied 00
Total: 75

80
70
60
Highly Satisfied
50
Satisfied
40
Dissatisfied
30
Highly dissatisfied
20
Total:
10
0
No. of respondents

Comment:
46.66% agents say that the customers are highly satisfied with the facilities
IRCTC provides with the tour packages.

Whereas, 53.33% agents say that the customers are satisfied with the
facilities, no complaints.

6. Do you feel that IRCTC should include more packages from Delhi
Origin?

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 34


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Parameters No. of respondents


Yes 62
No 00
Not sure 13
Total: 75

80
70
60
50 Yes
40 No
30 Not sure
20 Total:
10
0
No. of respondents

Comment:
82.66% agents feel that the IRCTC should include more packages from Delhi
origin.
Whereas 17.33% say that they are not sure about it, because whatever
packages IRCTC is providing from Delhi origin, they are getting demand for
it only.

7. Do you get demand for Bharat darshan & Buddhist Circuit Tour
packages?

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 35


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Parameters No. of respondents


Yes 12
No 63
Total: 75

80
70
60
50 Yes
40 No
30 Total:
20
10
0
No. of respondents

Comment:
16% agents say that they get demand for the two special trains (Bharat
darshan & Buddhist Circuit Trains).

Whereas, 84% agents say that they didn't get demand for it yet.

8. Do you put efforts towards promoting the tour packages?

Parameters No. of respondents


Aggressively promoting 34
Looking forward to promote 30
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 36
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Do not promote 11
Total: 75

80
70
Aggressively
60
promoting
50 Looking forward to
40 promote
30 Do not promote
20
Total:
10
0
No. of respondents

Comment:
45.33% agents say that they are aggressively promoting the tour packages,
40% say that they are looking forward to it.
Whereas 14.66% agents say that they actually do not promote the tour
packages.

9. Do you feel that IRCTC should also go for outbound tourism packages
segment?

Parameters No. of respondents


Yes 42
No 00
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 37
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Not Sure 33
Total: 75

80
70
60
50 Yes
40 No
30 Not Sure
20 Total:
10
0
No. of respondents

Comment:
56% agents feel that IRCTC should also include outbound tour packages in
its feather, whereas 44% agents say that they are not so sure about it.

10. Do you feel that procedure & Terms & conditions to be an agent of
IRCTC are complex?

Parameters No. of Respondents


Yes 13
No 62
Total 75

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 38


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

80
70
60
50 Yes
40 No
30
Total
20
10
0
No. of Respondents

Comment:
82.66% agents feel that the Procedure & terms & conditions to be an IRCTC
agent are very easy.
Whereas, 17.33% agents feel that it should be more flexible, it is a bit
complex.

11. Do You find the websites of IRCTC user friendly? Do You find it
convenient?

Parameters No. of respondents


Yes 57
No 18
Total: 75

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 39


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

80
70
60
50
Yes
40
No
30
Total:
20
10
0
No. of respondents

Comment:
76% agents feel that the website of IRCTC is very user friendly & it is easy to
access all the information.
Whereas, 24% agents feel that it should be more customized, there are so
much information on the webpage which makes the view unpleasant &
sometimes creates confusion.

12. How would you rate the services provided by the IRCTC?

Parameters No. of respondents


Excellent 07
Very Good 33
Good 23
Average 12
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 40
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Poor 00
Total: 75

80
70
60 Excellent
50 Very Good
40 Good
30 Average
20 Poor
10 Total:
0
No. of respondents

Comment:
9.33% agents feel that the services provided by the IRCTC is excellent, 44%
feel that the services are very good, 16% say that the services provided by the
IRCTC is average.
Overall IRCTC is providing very good services to the consumers.

13. How would you rate the customer support provided by the IRCTC?

Parameters No. of respondents


Excellent 00
Very Good 00
Good 10
Average 43
IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 41
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

Poor 22
Total: 75

80
70
60 Excellent
50 Very Good
40 Good
30 Average
20 Poor
10 Total:
0
No. of respondents

Comment:
13.33% agents feel that the customer support provided by the IRCTC is good,
57.33% agents feel that the customer support provided by the IRCTC is
average, whereas 29.33% agents say that the customer support of IRCTC is
pathetic.
Overall IRCTC should improve on customer support services.

14. Do you want any kind of training support from the IRCTC?

Parameters No. of Respondents


Yes 06
No 69
Total: 75

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 42


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

80
70
60
50 Yes
40 No
30 Total:
20
10
0
No. of Respondents

Comment:
Only 8% of the agents surveyed said that they are looking forward for
training from the IRCTC, since they are new into business.
Whereas 92% agents said that they do not require any kind of training from
the IRCTC.

FINDINGS & CONCLUSION


1. There is a huge market for the spiritual packages & Hill station Packages.
IRCTC is doing excellent in this segment.

2. Other Tour packages are not so into demand as spiritual & Hill Station
Packages are.

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 43


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

3. The services provided by the IRCTC are very good; it is true value for
money.

4. The IRCTC runs very limited packages to limited destinations.

5. The price of the tour packages of the IRCTC is economical, but yet there
are certain packages which are costly.

6. There is a good scope for IRCTC in outbound tourism segment.

7. Some of the agents are not so much motivated but yet there are many who
are very enthusiastic about doing good business. And they are promoting
the tour packages at their cost aggressively, & some are planning to start
it as soon as possible.

8. The website of IRCTC is user friendly, but still it needs some


modifications in it. The appearance of the www.railtourismindia.com is
not tidy. There are too much information is posted on it.

9. The customer support provided by the IRCTC is not so good & IRCTC
has to make it better.

SUGGESTIONS & RECOMMENDATIONS

1. IRCTC should give focus on a 360 degree marketing campaign. It should


introduce a new or more customized & diversified website that offers more
than destination information, product & package information.

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 44


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

It should be such that allows one to conceptualize & plan personalized travel
itineraries in a user friendly manner by browsing attractions, festivals,
activities and other pertinent information.

2. IRCTC should also have a separate B2B platform which could provide
agents with easy access to exclusive partnership benefits; tie-ups, with India's
leading web portals, & provide them with exclusive designed benefits.
The no. of smaller agents is growing day by day; this kind of activity will
help IRCTC cater to the needs of growing no. of smaller agents.

3. IRCTC should also focus on renewed promotional efforts, along with


developing new products as well as creating and nurturing infrastructural
facilities to enhance the existing products.
"Buddhist Circuit Special Train", "Bharat Darshan", "Maharaja Express" are
good examples of developing a new product which in itself is unique in its
approach.

4. The IRCTC runs very limited packages to limited destinations. IRCTC


should not only include more packages in its feather but also provide special
packages to the Niche Class of the society.
For example: In some of the packages customers ask for First/Second class
AC travel, Five Star accommodation, Helicopter Ride, Priority Darshan(in
case of spiritual tour package), etc..
Though IRCTC customizes its package to certain extent on customers'
demand, but the customers have to visit the respected office to get it done. It
is very inconvenient to many of the users, since there is only one facilitation
center in whole Delhi & NCR.

So, there are three things that IRCTC should do:


a). Develop separate products for the niche class.
b). Increase the no. of facilitation centres across Delhi & NCR. Or,
c). Enroll the area wise agency for the tour packages & other services & list
them on their website.

5. India is one of the best feeder markets for foreign destinations like
Singapore, Malaysia, Taiwan, Dubai, etc. IRCTC should also try to grab this
market segment as of now it only concentrates on Domestic & Inbound
Tourism.
6. IRCTC in collaboration with the Ministry of Tourism, Govt. of India, can
promote Rail Tourism at international front.
The Europe rail Tourism (Eurail) is the best example of such activity.

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 45


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

7. Rural tourism, Medical & wellness Tourism, Eco tourism should be


encouraged and IRCTC can offer these as products to attract the International
Visitors.

8. IRCTC doesn't have a full fledge marketing team who could actually do
follow ups with the agents & tour operators.
The agents are not so much motivated, it gives them immense pleasure &
confidence when someone from the organization pays them a visit.
It will act as a catalyst & the agents will accordingly put their efforts towards
doing good business.

9. The Customer support service of the IRCTC is not so satisfactory. The


queries are not sorted out well; sometimes they executives do not take calls.
So it causes inconvenience & dissatisfaction among the agents & the
customers as well.
So it is recommended that IRCTC should better take care of it.

10. The payment options for booking rail tour packages should also be
revised. The IRCTC accepts all credit cards for booking the tour packages,
but very limited access to Debit cards. IRCTC only accepts Debit cards of
“Karun Vaishya Bank”, “Deustche Bank”, & “HDFC”. These banks have
very limited users, the majority of the people use debit cards of either SBI or
ICICI or Punjab National Bank. IRCTC should allow either all debit cards for
making payment for the tour packages or at least allow the debit cards of two
banking giants-SBI & ICICI.

11. Today it is the Technology era and e-business is becoming the need
today. If someone wants to sell the products of IRCTC online through its
website, he has to deposit Rs. 2000000 non-refundable to the IRCTC.
This is a huge amount & does not provide a platform for the young
entrepreneurs. IRCTC should revise this policy & make it more affordable.
IRCTC should motivate young talents & make strategic tie ups with the
leading job portals & as well as the growing job portals.

BIBLIOGRAPHY

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 46


MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN
COLLABORATION WITH THE AGENTS

To make this project, I took help from some secondary sources and these are
as:-

The Internet:
o www.railtourismindia.com
o www.irctc.com
o www.tourism.gov.in
o http://www.icmrindia.org/casestudies/catalogue/marketing/MKTG122
.htm
o http://www.iloveindia.com/economy-of-india/tourism-industry.html

The Magazines:
o TRAVTALK
o Travel Biz Monitor
o Travel World
o Hospitality Biz
o Voyager’s World

Along with the secondary data some primary data were also collected,
the sources of which are as follow:
o Interviewing the Executive at IRCTC
o Interviewing the Agents
o Questionnaire Survey
o Interviewing the customers who visit the Tourism Facilitation centre

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 47

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