Travel Services

40
Travel Organization

• Travel Organizations are supportive

institutions for the tourism industry
• Both government and private
organizations support the activities
required for the growth of tourism
• Private organizations support by
providing finance, marketing,
publication of guides and timetable,
communication, insurance and guide
services
• Government institutions support by
way of providing visa and passport,
tourism promotion councils,
establishing tourism center to give
required information to the tourists,
build and maintain resorts, establish
publicity offices and educate and train
tourist operators and guides
41
Functions of Travel Organizations

1. Travel Organizations provide transportation

as required by tourists. They have their own
means of transport/ tourist buses (Ordinary
as well as A/C with video screen)
2. They provide attractive destination
packages
3. They arrange for hotel reservations at
different places
4. They arrange for food and other
requirements
5. They also provide committed service with
the package
6. They arrange tour programs, varying from
two days to several weeks depending upon
the needs of the tourists

42
Features of Travel Organization

43
Tour Operations

• Tour Operations refer to the various types of

package tours conducted by travel services
and agencies
• Public and private sectors separately and in
some cases jointly conduct these tours
• There are innumerable agencies conducting
short and long distance tours of different
types
• SOTC, Cox & Kings, Thomas Cook, Raj Travels
etc. are some major tour operators
galore

44
Tour Operators

• Tour Operators buy an element in the travel

product and add value and sell as a package
to the clients
• A tour operator is responsible for delivery of
service required by the customer
• He acts on his own to buy and reserve supply
elements and offer it to the clients through
travel agents or through their office
• They may also approach customers directly
through mail
• Tour operators develop a number of
packages known as tour programs and offer it
to the customers
• They act as a member of channel and is also
called as middlemen

45
Travel/ Tourist Guides

• Tourist guides help the tourists by giving required information regarding a place,
monument or other places the tourist is visiting
• Tourist organizations and tour operators give due importance to the role of the guides
since they are a part of the package
• Great care is taken to appoint tourist guides by the tour operators for making the tour
successful
• Tourist guides need to know full information about the tourist spot
• Their skill in guiding the tourists is important

46
 Airline Services Marketing

• Airlines provide different

types of services. They
include the following:
1. Passenger services-
National and International
2. Goods carrying services
3. Mail services
4. Social services such as air
operations in case of floods,
earthquakes, accidents and
such other natural calamities
5. Defense air services for
both defense and civil
services

47
Airline Service Marketing Mix
• Product Mix:

 In civil aviation, 3 major products are

considered:

Passenger Traffic

 Cargo carrying

 Mail services

48
Airline Service Marketing Mix

• In passenger traffic, we
identify the products such
as,

a) Regular passenger
service for business people
and private people
b) Pilgrim services
c) Special flights or
otherwise called chartered
flights to cover specific
programs such as
international and domestic
business conferences,
research flights etc.

49
 Airline Service Marketing Mix

• As airline services are very competitive, the operators have to plan the operation
scheduled to make the product attractive
• In planning the product, the operator should bear in mind that transport, tourism and
hotel form a chain
• All these three components have to co- operate with each other in developing a
desirable passenger traffic
• Particularly, in pilgrim and special business products, the services of hotels, tourist site
managers and local transport systems have to be co- ordinated while planning the
product services

50
 Airline Service Marketing Mix

• Price Mix:

 While fixing the price for

traffic, following aspects
have to be borne in mind:

The demand level for air

traffic

 The supply of aircrafts

and their using time in a
day

 Infrastructural facilities
available for safety
operations

51
Airline Service Marketing Mix

 Running expenses such as fuel,

crew expenses, expenses on core
and peripheral operations

 Seasonal fluctuation of air traffic

 Depreciation on air crafts

 Some acceptable per cent of

contingency expenses

 Strategies of competitors in price

fixing model

 Capital repayment in the long run

 Besides these variables, other

issues like promotion and
distribution expenses should also
be considered
52
 Airline Service Marketing Mix

• Promotion Mix:

 Advertising
 Whatever may be the media, vital
factors to be considered are:

I.The lay out of the advertising

II. Message which enhances the

image of both the operator and the
country

III. Advertising budget

IV. Creative advertising concept

53
Airline Service Marketing Mix

V. Promotional measures of the

competitors

VI. Latest development in printing

technology

VII. Core and peripheral services

rendered by airline operator

VIII. Mode, scale and moment of

advertisement depending upon
emerging trends in the domestic and
global business conditions

54
 Airline Service Marketing Mix

 Personal Selling

 Personal selling is described as an

art of influencing , stimulating and
sensitizing the impulse buying
 The personal selling sub- mix of
promotional mix, of airline
promotion, contains the substantial
services of travel agents, tour
operators, transport operators,
travel guides, front- line staff on the
booking counters and receptionists
 If these links fail to operate
positively, it becomes difficult to sell
airlines
 Therefore, airline operators select
agencies for personal selling who
have image in the market and more
positive in their approach

55
Airline Service Marketing Mix

 Publicity

 Publicity involves persuasive

communication
 The channel sensitizes the persuasion
process with the help of print media
people, public relations officers and
travel agents
 Airline organizations should develop
good relationship with news agencies,
publishers of periodicals and magazines
and other print media people
 The lay out designers for print media
should have clear knowledge about the
airline services, type of people travelling
in airlines, their behavioral aspects etc.
in order to develop an effective message
to persuade the air travelers to travel in
the concerned airlines

56
 Airline Service Marketing Mix

 Sales Promotion

 When there is a fall in air traffic for an airliner, it will resort to sales
promotion activity with very attractive incentives to all those who
contribute to the business
 The scale of benefits to be offered to sales promoters as well as travelers
will be decided by the intensity of competition for air travel service or the
emerging trends in airline business

57
 Airline Service Marketing Mix

 Network Marketing

 This is another vital

component in promotion mix
 In this channel, the promotion
takes place by word of mouth
 All the people who work for
airlines (travel agents, tour
operators etc. ) continuously
speak about the airlines for its
quality and service
They motivate the users to
travel by their airlines
 This is an informal but
effective channel of promotion
 User referrals about airlines
develop the brand image for the
airline

58
Airline Service Marketing Mix

Tele Marketing

 Today, besides other

channels of marketing, tele
marketing also plays a
significant role in service
promotion
 Air transport organizations
have enough scope for
promoting their services
through this mode
 A sophisticated telephone
instrument and well trained
tele marketer can play an
outstanding role in informing,
sensing and persuading the
potential air travel users
 The queries from air travelers
can be answered and travel
assistance can be given
without any confusion or 59
Airline Service Marketing Mix

 Other components like

Web Marketing

 Other components like web

marketing are also playing
effectively to promote air
business
 Each airline operator creates
his own website to provide
information and make online
booking

60
 Rail Services

• Indian Railways is performing

two major roles:

1. Perform as a public utility

concern

2. Running the system as a

commercial undertaking

61
Problems faced by Indian
Railways

• The major issues of

railway development are :

a) Technology Up gradation

b) Expansion of network

c) Financial arrangement

d) Capital Restructuring

e) Tariff policy

f) Passenger services and

freight movements

62
 Service Mix of Indian Railways

• Service Mix of Indian Railways

can be identified as follows:
• Major Services

1. Passenger Traffic

2. Freight Carrying

63
Service Mix of Indian Railways

1. Passenger Traffic

• In passenger traffic,
number of sub- services are
provided. These sub-
services are based on Time,
Passenger Classification
and Special Services

64
Service Mix of Indian Railways

• On time basis, the following

are in operation:

i. Super- fast express

ii. Fast express
iii. Fast passenger trains, and,
iv. Shuttle trains

 These types are based on

saving travel time
 While super- fast expresses
are running on long routes to
save travel time, shuttle
trains are running on short
routes at low cost to provide
cheaper service to weaker
sections of the society

65
Service Mix of Indian Railways

•As per passenger or

commuter classification in
each train, different services
are paid based on price
differentiation
• First Class, A/C Coaches
and II Class Coaches will be
running in each passenger
train to provide service
differentiation
• In recent times, quality
services are provided in
each train

66
Service Mix of Indian Railways

•Under special category, chartered trains are

run for special purpose travel
• For example, Pilgrim trains for those who
go on pilgrimage or visit to specific
destinations for special purposes

67
Service Mix of Indian Railways

1. Freight Carrying

• Regarding freight carrying

services, preference has been
given to this segment in railways
to avoid bottlenecks in the
development process
•Because of this, expansion of
passenger trains has been much
less than the growth of freight
traffic

68
Marketing Mix of Railways

• Product Mix

• In railways, product is
mainly the types of services
they render to the public
• Main services are:
 Providing passenger
service and Freight Carrying
 In core services, quality
has to be improved
 In peripheral services,
i.e. maintenance of railway
stations with all amenities
and providing service
information has to be
strengthened

69
 Marketing Mix of Railways

• Price Mix

• Following aspects are to be borne in mind by railways while fixing the price
for its services:
 Fare and freight structure should be adjusted to raising costs of inputs
 Subsidized prices should be fixed for the commuters and rail users of
weaker sections
 The average receipt for passenger km and average receipt per ton km
while fixing the price for services
 Unremunerated lines are required to be regulated
 Unproductive administrative expenses are to be optimized

70
 Marketing Mix of Railways

• Promotion Mix

• Advertising

 Regarding advertising, railways

have to look for persuasive
communication

 For this, they have adapted

print, broadcast and telecast
media

 Advertising is adapted to
sensitize the messages, slogans
and appeals and to provide good
information system

71
Marketing Mix of Railways
• Sales Promotion

o Sales Promotion mode facilitates the users to understand the type of

facilities and services extended by railways

72
 Marketing Mix of Railways

• Other channels such as personal selling, network marketing etc. provide

a strong base for developing an effective information system regarding
railway services
• Even people at work place are a vital component in promotion work
• They should be trained for efficiency and value generation

Christ University, Bangalore 73

Marketing Mix of Railways

• Place

• People

• Physical
Evidence

• Process

74
Road Services

• Indian roads are classified into

four categories:-

i. National Highways

ii. State Highways

iii. District Roads

iv. Village Roads

75
 National Highways

• National Highways are primary roads of India

• They connect big cities and big industrial centers

• They are maintained by the Central Government

76
State Highways

• State Highways connect

all important industrial,
trade and commercial
centers of the state and
national highways

• They are maintained by

the respective State
Governments

77
District Roads

• District Roads link

important industrial and
market places of the
district and local railway
stations

78
Village Roads

• Village Roads are in rural parts and are categorized as metaled and
non- metaled roads

79
Importance of Road Services

• They can easily connect any part of the country, unlike railways

• Road transport is complementary to railways by providing feeder

service

• It is more flexible in operation compared to other modes of transport

• Road transport can provide door to door service

• The chances of delay, damage or loss are less in road transport

• This is a better means of transport to carry perishable articles like

vegetables, milk or fruits to reach market place well in time

• Road transport does not require heavy capital for operation

• This mode of transport is more important in defense services of the

country

80
Service Mix of Road Services

• Service mix of road

transport contains the
following:

i. Providing passenger
services

ii. Goods carrying services

iii. Mail services

iv. Special services

81
Marketing Mix of Road Services

• Product Mix

• In product mix of passenger traffic, we observe the following:

 Regular passengers commuting to short and long distances. These

services are provided on a 24 X 7 time basis as per time schedule. This is
the major component of product mix of a road transport service, and,

 Special package tours conducted by both public and private sector

operators for the purpose s of :

i. Pilgrimage
ii.Sight- seeing holiday tours, and,
iii.Other special purpose tours (E.g. Educational tours, industrial tours
organized by industries to understand the industrial development in
different parts of the country )

82
Marketing Mix of Road Services

• In cargo traffic, we observe the product elements are

 Carrying goods to destinations by trucks of different size and capacity,

which is a regular and routine feature in cargo carrying

 Bulk carrying of special items like gas, milk, petroleum products and
other industrial raw materials and finished goods, and,

 Mail services

83
 Marketing Mix of Road Services

• Price Mix

• State Road Transport

Corporations have to
adhere to the social
responsibility aspect while
pricing its product

• Private operators will fix

the price depending upon
the quality of service they
offer and the competition
they face from other
competitors

84
Marketing Mix of Road Services

• Promotion Mix

• Advertising is the most effective

tool in promoting tourism services
• Print media, television, short
films for tourism promotion etc.
are the different modes adopted in
advertising mode
• Personal selling, telemarketing,
publicity, sales promotion,
network marketing etc. are other
modes through which promotion
of road transport services can be
made

85
Marketing Mix of Road Services

• Place Mix

• Following aspects are to be looked into regarding place mix:

 Promised services should reach the users without any
disturbance
 Time should be managed in reaching the destinations
 Service- offered and service- delivered should match
 The service delivery points such as bus stations, terminals,
godowns, workshops etc. need due care
 Infrastructural facilities such as electricity, communication
systems etc. have to be provided without any disturbance
 Safety and protection facilities should be provided in bus stations
 Other services like maintaining shopping complex to provide
essential products to travelers, acceptable and healthy restaurants
and food joints, medi care centers, sanitation, water supply
services etc. are to be provided
 Upgrading technology continuously is an essential aspect of
quality service

86
Rail- Road Co- ordination

• The two forms of land transport viz.,

railways and road transport are the vital
means of transport services in India
• But railways cannot reach the nook and
corner of the country
• But road transport has access to every place
• These two modes are complementary to
each other
• One cannot operate without the assistance
of the other

87
Water Transport Service
(Travel By Sea)
• Water transport is classified into:

i. Inland Water Ways, and,

ii. Overseas transport service in the form of
Shipping

88
Inland Water Ways

• In India, inland water ways plays a

significant role in the Indian transport system
from time immemorial
• Inland water ways consists of natural modes
such as navigable rivers, backwaters and
artificial mode like canals

89
Shipping

• Shipping has two categories:

1. Coastal Shipping

2. Overseas Shipping

90
Coastal Shipping

• The distance covered in coastal

shipping is 7560 kilo meters

• There are 13 major ports and 187

opera table minor and intermediate
working ports

• Coastal shipping is the most energy

efficient and cheapest mode of
transport for carrying bulky and
heavy goods like timber, iron ore,
coal, iron and steel etc. to long
destinations

91
 Reasons for slow growth of
Coastal shipping

i. Port Delays

ii. Poor turn around time of coastal

ships

iii. Lack of mechanical handling

facilities

iv. Over- aged vessels

v. Imbalance in coastal traffic

movement etc.

92
 Overseas Shipping
• Overseas shipping has gained importance
due to its role in India’s international trade

93