Author: Andre Coleman

Medical tourism- the concept of traveling far and wide for better medical treatment is not a novel idea, only the term. The globalization of the health care sector and the massive demand for low cost-high quality treatment in recent times has caught the attention of many developing countries that have the adequate resources and potential to meet these demands. The profitability and the lucrative nature of the medical tourism business has now put this trade, high on the agenda of both the Indian government and the private health care providers.

Today, medical tourism has become a commonplace practice with a large number of people around the world since usual constraints like language, finance, difficulties in global travel and fear of the unknown are no longer acting as barriers to the tourists who seek medical treatment in foreign countries. Countries like India, Singapore, Malaysia etc have developed strategies specifically with the aim of tackling such issues and rendering themselves as the ideal medical tourism destinations.

Although India is emerging as the ‘hot-spot’ medical tourism destinations within the Asia-Pacific and other regions of the world, it seems to be facing tough competition from other big players of this industry who have projected an equally good reputation for themselves and are reaping the benefits of this business. Therefore, it is imperative for India to continuously rethink and reform its marketing strategies to gain competitive advantage and increase its market share in the health care sector.

It is an undisputed fact that medical tourism is a rapidly growing industry and creating inroads into the Indian economy. There are a large number of stake holders in this industry in South East Asia including countries like Singapore and Malaysia. There are various marketing strategies being used for propagating this industry. My endeavor would be to seek the gaps that exist and suggest remedial action.

Being from the medical fraternity and having had the opportunity to treat a number of overseas patients, the concept of medical tourism has generated a great deal of interest in me. I believe that there are some deficiencies in the marketing strategies for health tourism in India that need to be looked into and improvised. The aim of my research would be to propose marketing strategies that would boost the Indian Medical Tourism for the future.

3. Preliminary review of literature

There are three sections of the literature review:-

i) Historical aspects- inception and evolution

ii) Medical tourism in India- the present scenario

iii) Probable concerns and pitfalls of the Indian medical tourism industry.

3.1.1 Historical aspects- Inception and Evolution

The concept of constructing health complexes around hot springs goes back to as old as the Sumerian civilization (circa 4000BC) where health care facilities comprised of grand elevated buildings with flowing pools. The hill tribes of Switzerland of the area presently know as St. Moritz, during the Bronze Age (circa 2000 BC) recognized the benefits of bathing and drinking in iron-rich mineral springs. The discovery of bronze drinking cups used by them in thermal springs in Germany and France possibly signifies health pilgrimages within these cultures.

As per written historical accounts, bathing and healing complexes were erected around therapeutic springs in Mesopotamia, India, Greece and China. The concept of medical tourism emanated as trips to sacred baths and hot springs. However, it is the Greeks who have to be given the credit for laying the foundations for medical tourism networks.

3.1.2 Greek medical tourism.

Asclepius was considered to be the god of medicine according to Greek mythology. In his honor, Asclepian healing temples had been constructed throughout Greece by the 4th Century BC. These temples were established near the mineral springs which were considered to be the prime “Healthful” Locations. The system of medical tourism during this period was as follows:-

Patients and their attendants came to Asclepia temples seeking treatment for various ailments. At Epidaurus, the port temple, treatment included gymnasia, palaestra (exercise area), bathing springs and a ‘dream’ temple. There was a retinue of priests, caretakers and stretcher carriers who attended to the patients before they were granted final appointment with the mighty priest. Patients made sacrificial offerings according to their status- the poor left shoes; Alexander the Great left his breastplate.

3.1.3 Roman Medical Tourism

The hallmark of ancient Roman medical tourism centered around hot water baths called Thermae. These centers of medical treatment were posh establishments. Some of these centers comprised of art galleries conference halls, theatres and sometimes sport stadia. Because of the active trade with Asia, the Roman baths augmented medical tourism activities like Chinese medicine, Ayurvedic massage and various aspects of Buddhist spiritual healing at some Roman Thermae.

3.1.4 Japanese Medical Tourism-Onsen.

ONSEN means hot mineral springs in Japanese. Medical tourism in Japan centered around these hot mineral springs which were enriched by surrounding volcanic soil. It attracted a variety of people including hunters, fishermen, farmers and warriors. It was believed that these mineral springs were effective in alleviating pain, healing wounds and recuperation. A thousand years later, this form of medical tourism in Japan is still an ongoing phenomenon.

3.1.5 Indian Medical Tourism.

India has been the home ground of alternative system of medicine for the past 5000 years. Aspects of medical tourism include yoga, eastern cultural, spiritual and medicinal compilation with meditation thrown in. India has been a Mecca for alternative medicine practitioners. A new boost was given to health tourism in the 1960’s with the “New Age” movement in the US. This New Age movement seeks “Universal Truth” and the attainment of the highest individual human potential and is characterized by an individual approach to spiritual practices and philosophies and the rejection of religious doctrine and dogma. With this movement, India had once again become the most sought after destination for thousands of western pilgrims. India’s deep commitment to health care infrastructure and technology furthered the mass influx of medical tourists. India is now one of the world’s oldest medical tourism destinations and has gained popularity over the years over other destinations.

3.1.6 European Medical Tourism.

European medical tourism came into existence with the rediscovery of the Roman baths in the 16th century. With the rediscovery of the Roman baths, Baden Baden , Aachen and most notably Bath, became spa towns. By the 1720’s the spa towns came to be frequented by Aristocrats and gentlemen of leisure from other parts of Europe and even royal patronage. Michel Eyquem de Montaigne, French royal inventor of the essay was the most noteworthy medical tourist of this time. He traversed the continent for 9 years for the cure of his gall bladder problem. He is widely believed to be the father of luxury travel and has helped to write one of the earliest documented spa guides for European tourists.

3.1.7 Health Tourism-New world.

English and Dutch colonists in the 1600’s, constructed log cabins near mineral springs in the newly discovered Americas. By 19th century the American reformists made it a habit to travel to remote Western springs that were rich in medicinal properties.

Today, there are no physical, economical and cultural barriers that separate nations from one another. Coupled with the flattening global economy, ease of international travel and lenient trade policies has opened the vistas of medical tourism destinations around the globe. This has made affordable health care availability to patients who find it difficult or impossible to access such health care facilities in their own countries. Inflated health care costs are driving the patients to medical tourism destinations like Thailand and India for sophisticated procedures at a fraction of the price. Long waiting periods for medical treatment is another factor that is making patients seek treatment abroad. Also, lack of comprehensive medical insurance has attracted thousands of patients to seek treatment abroad.

Medical tourism today has become a global phenomenon with many countries expanding their offerings, including unique tourism opportunities for example South Africa is promoting medical safari in a big way.

3.2. MEDICAL TOURISM IN INDIA – The present scenario

Medical Tourism India or Health Tourism India is a developing concept that has gained tremendous popularity and is attracting people from all over the world for their medical and relaxation needs. The treatments most commonly include knee transplant, cosmetic treatment, dental treatment and cardiac surgery. India is now a favorable medical tourism destination as its infrastructure and technology are at par with USA, UK and Europe, enabling it to provide treatment centers and hospitals that are best in the world with world class facilities. These factors coupled with visits to some of the most alluring and awe-inspiring places of the world have brought about the merging of tourism with medication giving rise to the concept of Medical Tourism.

India is promoting health tourism through depicting the “high-tech healing” of its private healthcare sector. The Indian government is marketing the concept of traveling to India for cheaper and world-class medical facilities to foreigners, with the intention of encouraging the growing Indian medical tourism industry. The policy of the Indian government to merge medical expertise and tourism was announced during the 2003-04 budgets when the finance minister Jaswant Singh propounded India to become a “Global Health Destination”. According to a study conducted by Confederation of Indian Industry (CII), the field is so lucrative that it has the potential to become a $2.3 billion business by 2012. Around 150,000 foreigners visited India for treatment during 2004 and since then, this number has increased by 15% every year.

In recent times, India has emerged as the “Global Health Destination” due to the following advantages:

1. Medical services are provided at almost 30% lower cost than the Western countries and are the cheapest in South-east Asia.

2. India has a large population of doctors and paramedical staff who have good knowledge of spoken English. Therefore language is a major comfort factor that attracts so many foreign tourists to visit for the purpose of medical and health tourism making it easier for overseas patients to relate well to Indian doctors.

3. Indian doctors expertise in various surgical procedures including cardiac surgeries, liver transplants, orthopedic surgeries and other medical treatments.

4. Indian hospitals offer a wide array of high quality treatment procedures comprising of joint replacements, cardiothoracic surgery, dental care, cosmetic treatments and more.

3.3. Probable concerns and pitfalls of Indian medical tourism industry

Review of literature suggests the following concerns that need attention if one has to augment and boost the medical tourism sector.

Concerns of the consumers

Some of the consumers feel that India is unhygienic, polluted and bureaucratic. There is no appropriate accreditation system for the hospitals. Concerns about medical insurance which is underdeveloped, inadequate and has few global players. overseas companies refuse reimbursements. There are also concerns about terrorism, communal unrest and bad connectivity between cities and towns. While some of these concerns are genuine, most of them are mere perceptions.

Concerns of the promoters

From the promoters point of view, the concerns that have emerged revolve around lack of regulations concerning ethics and systemic support, lack of infrastructure deficiencies like electricity, power supply and water, inadequate land reforms, taxation anomalies, funding constraints, implementation lacunae and bureaucratic bottlenecks.

4. RESEARCH QUESTIONS AND OBJECTIVES.

India seems to be an emerging medical tourism destination offering great opportunities in terms of creating new jobs and generating sources of revenue for the Indian economy. It is therefore imperative that the impetus gained so far should not be jeopardized and measures should be adopted to improve the present situation by developing and implementing new strategies.

Research questions

1. What is the present state of Indian medical tourism? – indicating assessment of the present situation.

2. What are the drawbacks or felt impediments of the medical tourism trade sector? – indicating an analytical structuring of the data.

3. What are the ways to improve medical tourism in India through better marketing strategies? – an assessment of the lacunae in the existing marketing strategies.

4. Is the government doing enough to support the medical tourism industry? – an assessment of the governmental leaning towards the industry.

Research objectives

1. To develop pragmatic marketing strategies for health care institutions involved in medical tourism in India.

2. To assess the impact of the government action on the present marketing strategies for foreign patients.

3. To make a marketing plan model for the Health tourism industry in India

5. RESEARCH PLAN

Research perspective

My research approach is based upon the words of the renowned anthropologist Clifford Geertz “man is an animal suspended in webs of significance he himself has spun. I take culture to be these webs, and the analysis of it is not to be an experimental science in search of law but an interpretive one inn search of meaning” (Jewell,S.2010). It therefore forms an interpretivist approach. Since the medical tourism industry is a business and management perspective, any research into this field would fall into the gamut of positivist and interpretivist approaches. My research is essentially a qualitative one since my data collection is mainly secondary in nature. Furthermore, my research is theory forming where in I shall be using the inductive approach to analyze the data. My research also involves the assessment of factors of concern that are related to the health tourism industry of India. It would be my effort to sift out the relevant factors and analyze them from the point of view of developing marketing strategies.

Research design

The approach that best answers my research questions fits into the modified cross sectional design. Here, the research design revolves around the collection of data that is occurring naturally over a designated period. My research design also involves mainly quantitative data and some qualitative data too. My research is based upon observation and document analysis. The cross sectional design also gives information on aspects of who, what, how many, where, and the how and why.

Data collection methods

I shall be collecting my data through analysis of secondary data. I also intend to submit questionnaires to the stakeholders and the major players of the medical tourism in India with the aim of seeking relevant data that would help me in answering my research questions and fulfill my research objectives.

Secondary data: the secondary data would be collected through the following;

Written materials- various websites, websites of homepages of key players, magazines and journals, books and publications. I would also be looking for government publications, laws and acts related to this subject.

Non-written materials- media, television etc.

Most of the data from outside the individual organization will yield information about the medical tourism industry. While, data that is collected from the organizational websites would give information on how things are done within the organization and their modus operandi.

ii. Questionnaires: I will be sending the questionnaires to all the major players in the Indian medical tourism industry. The questionnaires will be used to obtain data for quantitative analysis in order to assess the functioning of various medical tourism facilities in India. The idea of using questionnaires is that a large quantity of data can be made available covering a wide range of database for quantitative analysis. A good amount of objectivity can be incorporated and the results would be of valid and reliable nature.

Analysis of data

Having collected all the qualitative and quantitative data, I would subject it to appropriate analysis and apply relevant statistical tests of significance to ensure that the results are valid, reliable and give a reasonable level of generalisabilty. I aim to deduce the relevant marketing strategies being used and to assess their impact on the industry. I shall be presenting the analyzed data in the form pie diagrams, bar charts and other forms of statistical presentations.

LIMITATIONS
Validity and reliability

Since my data is mainly secondary in nature it is presumed that global players in the me dical tourism industry would not putting false data to propagate their business ventures. From this point of view my data would be valid as well as reliable. As my data is being collected from internet, websites of various stake holders, magazines etc. I am confident that stake holders at this level of global competitiveness would not be putting up false data or information for promotional activities that could jeopardize their reputation. However, the limitations of validity and reliability I foresee to come across would be from the questionnaires I would be sending to the stake holders. The disadvantage I feel I would face using the questionnaires is that some people may not respond, may take a long time for returning back and the response rate cannot be predicted. However despite these limitations, I expect to be able to generate valid information and data for quantitative analysis. I shall be sending these questionnaires to the concerned stakeholders through their homepages and their websites and try and elicit as much response as possible from them.

Generalisabilty

My research design is based upon the study of an industry and does not impinge upon a case study research. All factors being studied can be considered as offshoots of a single industry. For e.g. the legislation aspects would be covering the entire industry and not a single institution or a hospital. Secondly, my aim is to give broad based generalized guide lines on the recommendations for improving medical tourism in India. My attempt therefore would be to collect and analyze data from where generalisabilty can be achieved.

ETHICAL CONSIDERATIONS

I will abide by the Coventry University BES ethical guidelines. I will conduct my research honestly and present all the data accurately. I will get the low risk approval form signed by my supervisor to get his approval before I begin my research.

I shall take all precaution to ensure and respect the rights and integrity of subjects if any.

I shall treat all the data confidentially and would ensure that it would not be used for any other purpose other than that intended.

Since my data collection is mainly secondary in nature, my research work is considered to be a low risk from the ethical point of view. I shall keep all the raw information on ethics and the data collected for audit purposes.

PLAGIARISM

I will paraphrase; reference and cite the sources used by me, to acknowledge the work of others and avoid any sort of plagiarism.

The hospitality and tourism industry is one of the world’s prevalent industries and also the most fragmented with large number of small business. The contribution of hospitality and tourism industry to GDP can be measured in the terms of the revenue generated by tourists (Bardgett 2000). The industry promotes international understanding and gives support to local handicrafts and cultural activities. It is a very important section of a nation’s economy, particularly in terms of its involvement in the direction of earnings through foreign exchange, production of extra wages and creation of job opportunities. The high flood of foreign tourist traffic has increased demand for certain economic production and distribution activities. The hospitality and tourism industry in today’s date is one of the most diverse, exciting, challenging and important industries in any part of the world. It offers career opportunities that are dynamic in nature.

A very essential quality in this industry is to possess a driving interest towards one’s customer service and a strong sense of professionalism. And not just that what one also needs to know is that, what tourism is, keeping in mind the economic, environmental, social and cultural impacts on it. One needs to know its relationship with other industries, the roles and responsibilities that the organization carries as a whole and as well as of individual staffs.

1.1 Marketing of tourism and hospitality industry

Marketing is a delicate combination of art and science (Mahoney, 2005). It is described by Kotle as a management procedure accountable for recognizing, expecting and pleasing client necessities gainfully.

An enormous variety of misconceptions are rampant about marketing, the most widespread is its misunderstanding next to selling and advertising. If one looks closely these are nothing more, but types of endorsement or promotion and hence being only a part of marketing. Marketing includes of much more, such as product/service development, place, pricing etc. It requires information about those attracted in what you are offering, such as their likes, where they buy and their limits of expenditure.

1.2 SWOT/ TOWS Analysis

Another important aspect that follows strategic formulation is the evaluation of the adopted measures and one of the best ways to do so is by using both SWOT followed by the TOWS analysis. TOWS Analysis is a modified form of SWOT which is used as a standard business analytical tool. The alphabets in both TOWS and SWOT are representation of the words Strengths, Weaknesses, Opportunities and Threats.

The analysis of the external environment (threats and opportunities), and internal environment (weaknesses and strengths),can help one realise beneficial techniques that can be made use of by the entire organization, a department or a team. Apart from this, SWOT/TOWS analysis can also be used to come up with a course of action, a marketing campaign, or even evaluate ones skills and experiences. (Warnell, 1995)

Identifying Strategic Options: As mentioned earlier SWOT or TOWS analysis helps to draw a better judgement of the strategic choices that are present and since “strategy” is the art of determining how one can “win” in business; it is a very important step in the evaluation of any organization or industry.

This process of evaluation helps us find answers to questions that further help us explore our strengths, weaknesses, opportunities and threats.

Strategic Discussion

Through the use of marketing strategy an organization can concentrate its limited resources in the best manner possible so as to increase the profits and be at an advantage as compared to the other organizations. The main goal behind every marketing strategy should be customer satisfaction. The selected marketing strategies are dependent on a variety of components, such as quality, innovation, brand building, marketing expansion, focus, product development, social responsibility, etc.

On similar grounds if we talk about Ryanair we can very well see that how the airline completely stands out as a special business from the point of view of the corporate culture it follows. Despite of being an airline it earns through the sale of complimentary products and services that it offers it customers on and off the plane. The company is well liked by its customers for its low cost and admired by its employees for the high salary it gives them. So hence alongside pleasing its customers which is very essential for any business it is also focusing on keeping its staff happy, content and loyal which is an equally important strategy very well thought of. Apart from that the airline makes use of secondary airports rather than primary ones which in turn helps in reducing the expenditure costs leading to higher benefit or profit margins.
And hence it can be seen that the chosen organization is doing very well as far as selection and implementation of its marketing strategies is concerned. This comment can be substantiated by the results of PEST analysis and SWOT/TOWS analysis.
PEST analysis of Ryanair
SWOT /TOWS ANALYSIS FOR RYAN AIR
Strengths
Weaknesses

Low airport charges

High service performance

A uniform fleet: low maintenance cost

Poor customer service

Long distance between airports and destinations.

Poor relationship with staffs

Opportunities
Threats

Credit crunch: People switch to low cost airlines

More countries joining Schengen States

Depreciation of US dollars: planes are now cheaper

Customers are price sensitive

Increase in oil prices

Other airlines are reducing costs

Increase in air traffic control charges

Growth of other substitutes

TOWS MATRIX
(Weihrich 1982)

Internal Elements

Organisational strengths

Organisational weaknesses

Strategic options

Strategic options

External Elements

Environmental opportunities (and risks)

SO

S2 + O2

Routes expansion

S3 + O3

Order new planes

WO

W3 + O1

Jobs security for staffs

Environmental threats

ST

S1 + T1

Continue to cut fares

S2 + T3, T5

Increase frequency of popular routes

WT

W1, W3 + T3

Focus on staff training

W2 + T5

Reduce cost of airport transfers

From both of the above shown methods of evaluations it can be seen that credit crunch which generally considered as a big threat is grabbed as a seemingly big opportunity by Ryanair, for it attracts its customers by the focus it keeps on the ‘reduced cost price’. And this as can be seen is used by Ryanair as a mean to earn profit.
The SWOT table above gives us a brief yet a very indepth summary of not just the internal but also the external analysis of the airlines with highlights of the firm’s strengths and weaknesses so as opportunities and threats. Based on SWOT, a number of strategic options can be suggested to Ryanair in the form of a TOWS matrix, such as route expansion, ordering new planes and hence increasing frequency of popular routes, focusing on the staff training, which in turn will act towards attracting more customers, offering its staff job security, it can go on further in reducing its prices(which has so far really worked wonder for the airlines).
Hence through our evaluations we can see that no doubt Ryanair seems to be doing wondrous work as far as marketing strategies are concerned but there are still a lot many more ways in which it can increase the overall turnover even more, such is the wonder of using apt and multiple marketing strategies.
3.0 Implementation of a strategy using tactics

The concept of the marketing is based on the premise that the firms should determine consumer wants and needs before designing products and services. Hospitality and tourism industry brings together the latest developments in the global operations using contemporary management principles (Borden, 2001).

3.1 Marketing Strategy

The marketing strategy, ought to be viewed as a cover up of support planned to be a magnet as well as provide the customer or visitor (Naik, 2003). There are various types of strategies that come into play such as competitive strategy, market and resource based strategy, quality and innovation, growth strategies. It is now necessary that one of these have to be used at a time but generally combinations of these are used to achieve optimum results.

3.1.1 External Mix – It consists of the 7P’s as well as the external environment. The marketing mix can be controlled by the firm whereas the external environment cannot be. Every industry tries to develop marketing strategies utilizing marketing mix that will establish sustainable competitive advantages leading to long term growth and profitability (Brian, 2003; Zeithaml, Bitner, & Gremler, 2003).

Product: The product of the marketing mix includes the tangible goods and all of the services that accompany that good to produce the final service or product. More than products it is the various services that make the industry stand ahead of others.

Talking about Ryanair, it is doing seemingly well as far as the ‘product ‘ aspect is concerned, for its air service and hospitality are no doubt loved by the customers due to the low cost price and well trained and well paid staff.

Price: price is the value placed on the service or a product. The tourism and hospitality sector should establish their pricing based on the companies objectives and the target market. One cannot have high fee structures for low-fare airlines. Secondly it is very important to base the prices on the complete cost of production, delivering, promoting as well as managing the services provided. Price doesn’t comprise of only the tangible benefits but also the intangible benefits like satisfaction.

Ryanair seems to be doing really well as far as the price of its service is concerned for its customer no doubt love the airlines for it low air fare prices.

Place: This aspect of the strategy includes the distribution and logistics of producing a product or service and making it available to the final customer. The location of the hotels, restaurants, etc is determined by considering the cost of the resources such as labor, raw material and real estate. In addition it is important to have access to proper transportation. So therefore the first and the most important element to be considered is the location of the hotel or the restaurant. Places away from the central city must be avoided as they would not attract tourists who would want to explore the main city/ town area.

The place aspect here could not be incorporated as this is an airline that we are talking about, but still we can for sure bring to light the cost expenditure that the airline is saving by the use of secondary airports rather than the use of the main or primary ones.

Promotion: It provides customers with precise and apt information to assist them decide whether to visit. It represents the various aspects of marketing communication, that is, the communication the information about the product with the goal to generate a positive customer response. The information provided by the company should be of significance and sensible use to the likely or existing guest and also precise because only satisfied customer would want to come again and use the same services.

People: This is the fifth P of the marketing mix. It is essential that one should have a good, educated and friendly employees. For an organization to have a winning edge over others it is very essential that it recruits the right staff and trains them appropriately for the delivery of the services. Based on the interactions with employs the consumers make opinions and deliver perceptions of the service that was provided to them. Hence it is of utmost importance that the staff should have apt interpersonal skills, attitude, and service knowledge to provide the best service to the consumers who are paying for it. Thus it makes it imperative to have a highly qualified staff to add that extra special touch to the services so that customers who comes once, comes always.

This, the airline has no doubt very skillfully taken care of by training it staff very well apart from paying it well too.

Process: It constitutes of the schemes used to aid the organization in the process of service deliverance. Timely and excellent quality services are not the only ingredient but the process behind the making of these services is also of importance. Both hospitality and tourism industry have behind the scenes services like kitchens, water boilers, air handling units, maintenance departments, etc. This should be ensured that a customer never come to know about the smooth or ruff running of the process. Same and equivalent services should be provided at all times.

These the airline could think of improving on as far as the benefits and services offered by the airlines to its consumers both on and off the flight.

Physical Evidence: this again is a component which gives the consumers the opportunity to make judgments about the organization. This no doubt is an essential component of the service mix as based on the sight of the service that is being provided a perceptual impact is made on the consumers about the organization and the service being provided. The organizations that claim to be energy efficient should show it to their customer the process they followed to make their building and services environment friendly. When a customer knows the process behind the delivered service they feel more at ease. For example: if a hotel does vermin-composting to make all biodegradable waste into manure, they should take the guest and children on a eco-walk and show them the pit. This will not only make a good name for the organization but also teach people how to conserve environment (Borden, 2001).

This as has been mentioned before too a number of times the airlines has focused on very well by its low cost air tickets and its well trained and well paid staff, skilled staff.
3.2 Interactive Marketing

‘Technology has necessarily altered how companies and their customers communicate, not just online but across other medium’ (Novak & Hoffman, 1997). Consequently interactive thinking needs to be at the heart of all marketing strategy and interactive channels at the heart of all marketing delivery. A company that has developed an easy to use web site with content and appropriate services to its audience is only part-way to achieving successful Internet marketing outcomes (Agrawal, Arjona & Lemmens, 2001)

This concept focuses on the ever changing trends in the field of marketing . The definition that had been given by John Deighton at Harvard, talks about interactive marketing being an ability which facilitates the organization in having one on one interaction with its customers on a continuous basis. The concept is in no way synonymous with the concept of online marketing, although there is debate that internet technology facilitates the process of interactive marketing to a great extent. The organization can with ease keep a record of all the data related to its customers, can have access to its numerous clients and consumers at the click of a mouse and can interact with them on a day to day continuous basis using the speed of the internet.

3.2.1 Objectives for Interactive Marketing Communications

An interactive marketing communications plan usually has three main goals:

(1) Use online and offline connections to steer or draw guests passage to a web site. This method is commonly referred to as traffic building.

(2) To use on-site communications to bring an effectual point to the guest which helps form customer behaviour or achieve a required marketing outcome. The message delivered on site will be based on traditional marketing communications objectives for a company’s products or services.

(3) To mix all communications methods to assist attain marketing objectives by supporting mixed-mode buying. (Novak & Hoffman, 1997).

Ryanair has made use of this strategy by making available to its customers the facility of online booking system, which is not only of convenience to its customers but also greatly reduces the extra cost price as compared to telephone booking. Though it could still go beyond online booking and explore much more options such as customer feedback, special offers, blog site etc on its website by making use of this strategy.
4.0 Conclusion

Customer satisfaction in hospitality and tourism industry is very much prejudiced by the way in which the service is delivered. It is a very important fraction of hospitality and tourism management and can be done successfully and well, with classiness and skill, if one keeps in mind the important essentials of marketing. ,This the airline seems to have taken care of in the most skilled manner possible by making use of the various above mentioned strategies.

Apart from that what also is important is the evaluation of the marketing efforts. A framework for evaluation could help in shaping which essentials are most important to evaluate. It is hardly ever probable or cost efficient to assess all elements. After this it is very important to compare results with one’s objectives and to in the end determine the needed changes in the strategic plan. This in a great way contributes towards improving the efficiency of the strategies that are being used by recognizing the present dissimilarities between real outcomes and anticipated performance. All this in turn will surely help determine the most probable and expected causes for the triumph or crash to achieve the set goals and objectives.

What marketing strategy is best used to counteract the effects of a potential recession on the four star hotel industry in the UK economy?
Contents (Jump to)
Background and Research Aims
Literature Review
Proposed Methodology
Research Strategy and Resources Required
References
Background and Research Aim

Financial Management (2008) reported that, at a recent CIMA forum for financial directors in the UK, the majority of the delegates believed that the global economic crisis has had far reaching impacts, and will most likely cause a recession in the UK in the near future. This is a view which it widely matched by Campaign (2008), which argues that the coming economic downturn is likely to have adverse impacts on all industries in the UK as consumers, and hence businesses, reduce their spending. However, this article does not advocate that businesses simply give up on attracting new custom, arguing that the businesses with the most successful and creative marketing strategies are likely to be the ones who not only survive any potential recession, but also benefit from it.

As such, it is clear that there are two main potential strategies for hotels as the economy begins to contract. They can either choose to contract their operations, focusing on operational efficiency and aiming to cut costs wherever possible, or they can look to use the recession as an opportunity to increase their competitiveness over and above their rivals. This can be achieved via a focus on improved efficiency, costs, quality, or general marketing. However, the argument of Campaign (2008) above tends to indicate that marketing is the main method by which hotels, and businesses in general, can differentiate themselves and maintain revenue and market share in the face of a recession.

Both of these strategies are equally valid, however this piece will aim to focus on the more positive of the two: the use of a marketing strategy to counteract the effects of a recession on the UK hotel industry. The hotel industry in the UK is very broad, ranging from the cheap and basic one and two star hotels, up to the extremely luxurious five star offerings which grace many major destinations. However, the majority of attention tends to focus on these two ends of the spectrum, with little thought being given to strategic development and planning for the mid range hotels such as four star offerings. As such, this piece will concentrate specifically on the four star segment, in order to determine what factors drive consumer demand and business success in this segment, and how these factors can be used to develop a marketing strategy to help four star hotels in the UK handle the impact of a recession.

Literature Review

Many hotels have already started planning for a recession, particularly in the United States, where the economy is in a more advanced stage of recession than the UK. As such, there is value to be obtained from looking at the strategies taken by hotel chains in the US. In particular, Ricca (2008) considers the strategy of the Wyndham Hotel Group, which intends to improve its marketing in order to boost its performance, as well as looking to improve its inventory management and service levels. In addition, the chain will look to boost the use of its loyalty program, helping to grow the company’s brand identity as well as to drive revenue higher in the short term (Ricca, 2008). Another useful study from the literature comes from Barsky and Nash (2008) who reveal that higher end and luxury hotels tend to perform better during a recession when compared to other classes of hotel. This implies that the four stars may be able to improve their performance by aiming to become more exclusive. In addition, Barsky and Nash (2008) argue that hotel should not aim to cut back on prices and services in a recession, but instead they should aggressively market themselves and focus on customer service, in order to be more competitive than others in the market.

Further to this, a major study by O’Neill and Mattila (2006) found that the net operating margin of a hotel tends to be driven most strongly by its average occupancy level, and that the average price per room was less significant. However, this study also showed that the market segment in which the hotel operated; the hotel’s age; any affiliation to a major brand; and a hotel’s size and location also had strong effects on financial performance. This is based on data from the last slowdown in the hotel industry, in 2002, when global terrorism and the dot com crash saw many hotels in trouble. The hotels which performed best in that year were the ones which focused on driving strong occupancy, rather than looking to cut back in size or expenditure. However, O’Neill and Mattila’s (2006) study shows that the mid range hotels were the ones which suffered most in the last slowdown. Looking at the current economic context, Lloyd-Jones (2008) argues that the current state of the economy, combined with the general consensus amongst analysts that a recession is quite likely, means that hotels need to start preparing now. As such, Lloyd-Jones (2008) recommends that property managers should look to use the full range of their marketing strategy, right across the 7Ps, to achieve the most profitable balance between occupancy levels and room rates.

Proposed Methodology

Unfortunately, given the uncertain nature of the economy, and the fact that no one can accurately predict the nature and severity of any potential recession, it is difficult to be prescriptive about the ideal strategy for a hotel to take to mitigate the effects of said recession. As such, this piece will arguably need to take an approach more in line with contingency theory, where it can make specific recommendations based on the circumstances of individual hotels. This implies that the main methodology should be to use interviews with hotels who are preparing for a potential downturn, as well as those with experience at surviving previous downturns. By determining what strategies, if any, the most successful chains are using to overcome a potential recession, it should be possible to develop a detailed typology of the potential strategic choices hotels can make to deal with economic downturns, and the circumstances in which each strategy is most appropriate.

In order to give this typology academic value, it should be firmly based in an existing academic framework. The framework chosen for this paper is the ‘7Ps’ extended marketing mix. The 7Ps are based on the 4Ps introduced by McCarthy (1960): Product, Price, Promotion and Place. However, the 7Ps extends this to include another three factors. Whilst there is some debate over what these factors should actually be, with various writers proposing People, Processes, Physical Layout, Provision of Service, and Physical Evidence; this piece will focus on the three determined by Booms and Bitners: People, Processes and Physical Layout (Kotler and Keller, 2005). This 7P framework will be used to construct the typology, and also to drive the interviews.

The interviews will be semi structured interviews, conducted with some senior members of staff from a wide selection of four star hotels throughout the UK. Semi structured interviews have been chosen because they will allow the interviewer to investigate the desired range of topics, whilst also giving the interviewee the chance to provide additional details or to clarify certain points. The main themes for the semi structured interview will be:

To determine whether the interviewee has worked at a hotel during a previous recession and the steps they took to overcome that recession.
To determine what steps, if any, have been taken to prepare for a potential coming UK recession.
To determine the extent to which these steps are marketing focused.
To determine which of the 7Ps the interviewee deems most important in using marketing to overcome the effects of a recession.
Research Strategy and Resources Required

In order to fully ground the typology in the theoretical framework, it will be necessary to obtain a full understanding of the 7Ps framework and its application to hotel marketing. This will be achieved via a complete review of the literature around marketing and the hotel industry. As such, it will be necessary to spend a significant amount of time using libraries and online resources to review a wide range of literature on the subject. This research should also involve a detailed study of the literature around the effects of a recession on consumer demand, and strategies which businesses in general can use to handle a recession. This will be of use in helping to validate the potential strategies which emerge from the interviews, and generally in helping to direct the interviews.

Ideally, the interviews will all be conducted via the telephone. This will save on travel costs and time, as well as making the process run smoother. Initially, a large number of four star hotels, around fifty, will be contacted by phone or e-mail, to enquire about the possibility of interviewing senior staff. This will hopefully allow for at least ten interviews with senior staff members across the UK. Once agreement has been obtained, the relevant staff members will be contacted to arrange an appropriate time, and length of time, for the interview. It is expected that this will simply require a telephone and a quiet room where the interviewer is unlikely to be disturbed. A recording device will also be useful, to help with transcribing the interviews later. As the data will be mainly qualitative, there will be little need for any statistical analysis tools, and an appropriate research paradigm will be selected as needed. All interviewees will be informed that the interview is being recorded, but all respondents will be guaranteed complete anonymity.

References
Barsky, J. and Nash, L. (2008) Are luxury hotels recession-proof? Hotel & Motel Management; Vol. 223, Issue 10, p. 14.
Campaign (2008) Creativity won’t lose its value, even in recession. Campaign; Issue 16, p. 20.
Financial Management (2008) UK FDs braced for downturn. Financial Management; June 2008, p. 6.
Lloyd-Jones, A. R. (2008) The Prognosis for Hotel Occupancy and Average Rate in a Slowing Economy. Real Estate Finance Journal; Vol. 24, Issue 1, p. 29-33.
McCarthy E. J. (1960) Basic Marketing: A Managerial Approach. Homewood IL: Irwin.
O’Neill, J. W. and Mattila, A. S. (2006) Strategic Hotel Development and Positioning. Cornell Hotel & Restaurant Administration Quarterly; Vol. 47, Issue 2, p. 146-154.
Ricca, S. (2008) Wyndham: Recession strategies in place. Hotel & Motel Management; Vol. 223, Issue 10, p. 1-62.

A hotel’s positioning is a crucial determinant in developing its subsequent marketing strategies. Incorrect hotel positioning will lead to an unclear vision of the hotel’s development and eventually affect the profitability of the hotel (Ransley & Ingram 2004, p.37).

Our hotel has been positioned as a 3.5 start hotel that sits in the middle of the competition. This is a very strategic approach for our hotel to proceed with as it allows us to target upper-end of the market since our hotel has the resource and capability to do so and simultaneously attract other markets segments such as leisure and family holiday makers since our price and products are very competitive compared to other hotels in the same category.

Hotel’s targeted market segments:

Corporate

Our hotel will continue to set company executives and business travellers as our priority of focus, since this market segment has always been a major proportion of the hotel’s business in terms of the number of rooms sold and incomes from the room sales. This market segment would also bring additional revenue to the hotel such as onsite dinning and purchase of other facilities. Therefore, meeting, business and conference related facilities needs to be developed to meet these customers’ needs.

Leisure

The city which our hotel is suited in is a destination of family and leisure vacations and our hotel’s location itself imposes a unique marketing advantage as it is located on the seafront and close to the main shopping centres. Therefore, with the competitive marketing advantage, if we could offer a mix of quality products and services, in fact, all of our hotel’s guest’s rooms are able to accommodate families and other services such as Pub and full service restaurant are integrated to deliver a desired level of convenience. Scale of economy is another critical element that attracts leisure and family holiday makers, however, simply reduce our room rate is not a strategic action to take. Therefore, special discount can be allowed for weekdays bookings in order to maintain the level of room occupancy rates and design various packages for the weekend in order to improve the sales of F&B facilities.

Tour

Tourism has boomed in this region, there are various venues take place in the city throughout the year. This induces a great opportunity to improve our room occupancy rate and ultimately to increase our overall profitability. As tourists have similar features with leisure and family holiday makers in terms of scale of economy and convenience of hotel’s location. Our hotel should come up with different and differentiate packages to suit various venues so that our customers can receive and perceive added values from our hotel. For example, we can assist our customers in booking the tickets for some of venues such as the International Music Festival and International Dance Festival. Internally, we can offer special check-in and check-out channels for group tourists in order to diminish the hassles for them. Additionally, it is essential to have multi-lingual staff at the front desk as we expect group tourists from overseas.

Weddings

Frankly, we cannot host ant weddings prior to our conference facilities in place. Therefore, at this stage, with the available resources and capacities in terms of our rooms and restaurant, we can arrange Honeymoon specials for the new married couples. Once we obtain any honeymoon bookings, we can pre-decorate the rooms with romantic features and ambiences to provide a physical environment which allow those couples to have intimate times together. Additionally, we can also offer discount for new married couples to have dinner in our restaurant with the menu especially designed for the venue.

F&B Services

It would pose a great impact on the operation of our F&B department since the potential resignation of our Head Chef. However, we can take this opportunity to be innovative in terms of turning our restaurant into a completely different concept of dining. Nowadays, F&B services are usually seen as an adhering service to the accommodation. However, the potential ability of F&B services of generating revenue is significant. Therefore, providing we have sufficient financial founds, we can hire another Head Chef who is innovative in culinary arts and develop our restaurant as a dining destination of the region, it is implementable as the local population of over one million in the city ensures the demands of such service if we operate it successfully.

Promotion:

Promotion is a very vital element in the marketing mix (4Ps), as in it builds the hotel’s image and increases the hotel’s public awareness and helps the hotel to reach more markets (Kotler, Bowen & Makens 2006, p.539). Our promotion mix will include a number of media such advertising, hotels’ website and join in marketing consortiums.

Advertising:

Our hotel will still adopt some of the traditional media such as newspaper, travelling magazines and advertising campaign on radio. These media can effectively reach a large group of audience even though involves costs and cannot receive instant response on the effectiveness until the guests actually come to our hotel. For that reason alone, our hotel should use on-line social networks such as Facebook and Twitter. These social networks has increasingly become the primary information sources for people especially for Gen Y’s whose purchasing power has increased dramatically. The social networks allow us nearly zero-cost and can reach to more potential customers.

Hotels website:

Hotel’s website is the first impression we give to our potential guests when they intend to choose us as their hospitality provider. Therefore, a well-established, designed and managed website will effectively promote our hotel to those who are very likely to become our customers.

Marketing consortium:

Since we are an independent hotel and especially with limited budget, we are in a weak position in competing with those international chains in terms of spending money on marketing and promoting themselves. Therefore, join a marketing consortia is a strategic approach at this stage for our hotel. For example, The Leading Hotels of the world, will give us access to its worldwide reservation centre and they have more than 20 offices in the most important cities and this organization also participate in some of the most popular travel exhibitions and trades shows in the pursuit of promoting its members. However, it charges annual membership fees and additional shares for each room they have generated (The Leading Hotels of the World, 2010).

Other marketing related strategies:

Converting guests rooms into Conference facilities:

Currently our hotel does not gain any business from this market segment due to the lack of conference facilities. Functions and banquets are very profitable to conduct as it requires intensive F&B services which can generate significant profits and also impose the potential of room sales and long-term business relationships with the clients. Therefore, the next strategic projection for our hotel is to turn some of rooms into conference facilities (our average room occupancy rate was 20% which means 80% of the room inventory have not been generating profits, and hotel rooms are perishable products). This strategy will require additional financial founds to support, there will be risk involved, but it will be profitable in the long-haul.

Merge to gain additional founds:

Our hotel can merge with another non-hospitality establishment in order to get additional financial support as we are suffering for lack of funds. Although merge is not as fierce as acquisitions, it still poses a certain degree of risks to the management of the hotel in terms of the absolute authority and power over making business decisions (Beamish 2008, p.288).

Budgeting for marketing department:

There are two major areas that require enormous funds to complete.

Projected Budget for Regency Hotel-Marketing Department

Converting rooms into conferences facilities

$1.5 million

Advertising

$2,000 per month

Join marketing Consortia

$200,000 per year

Maintaining Website

$1000 per year

Labour costs

$80,000 per year

A luxury 5-star business hotel, The Oberoi, New Delhi provides over 250 rooms and suites. It features the best of restaurants, a well-equipped business center and a rejuvenating spa experience. In addition the dedicated service makes the hotel popular with business and leisure travelers.

Bearing a blend of traditional and colonial style, the rooms are done up with traditional Indian art and handicrafts and also appointments from Europe. The hotel has taken care to ensure there is no compromise on luxury, so a perfect balance of modern luxury and traditional charm has been achieved. Regally appointed baths and specially prepared toiletries add well to the luxuries offered. Guests can choose rooms with different views, the most popular being pool-view or golf course-view rooms. Amongst the most luxurious, the Kohinoor suite is the most luxurious.

The Oberoi offers perfect rejuvenating experiences for the guests. A 9000 square area of the hotel dedicates itself to make you feel relaxed and get rejuvenated. The Oberoi Spa features a therapy suite, an Ayurveda therapy room and a hydrotherapy room for Vichy shower. For those who love to take laps, the hotel has temperature controlled outdoor swimming pool which allows you to swim in all seasons.

Designed to suit the needs of the class business travelers, the hotel is well-appointed with all requirements for the same. It offers to guests conference rooms with a capacity to accommodate around 300 people, business centers with all modern facilities and other business facilities.

Company Overview

The Oberoi, Mumbai

Located in the city’s prime business and shopping district of Nariman Point, The Oberoi, Mumbai has been completely redesigned to be the ultimate destination for contemporary style and luxury in the city. Overlooking the Arabian Sea, the hotel welcomes you with space and serenity. Luxuriously appointed guestrooms have been meticulously planned with a host of innovative features using the latest technology.

The Oberoi, Mumbai is located on Marine Drive, the famed boulevard along the coast in South Mumbai. An hour’s drive from the airport and only minutes away from the business, financial and entertainment districts, the hotel is also well located to visit the city’s tourist attractions.

The hotel offers a rich variety of dining experiences ranging from an all day dining restaurant serving global cuisine, to an Italian Restaurant and a signature Indian restaurant under the direction of a Michelin starred chef.

An ideal location for business meetings and conferences in Mumbai, venues range from private meeting rooms at the 24-hours Business Centre to the conference rooms on the top floor of the hotel offering sweeping views of the Arabian Sea.

Recreational facilities include an outdoor heated swimming pool, a fitness centre and a full service Oberoi Spa. The Spa and the Fitness Centre are open 24 hours.

Complemented by Oberoi Hotels’ legendary service delivered by caring staff, The Oberoi, Mumbai is the ideal hotel for discerning business and leisure travellers.

http://ezinearticles.com/?The-Oberoi-Hotel,-New-Delhi—Blending-Business-With-Pleasure&id=2320861

Our brands:

Business Hotels

The Oberoi, Calcutta

The Oberoi, Mumbai

The Oberoi, New Delhi

Leisure Hotels:

The Oberoi sahl Hasheesh

The Oberoi Rajvillas

The Oberoi Madina

Wildflower Hall, Simla

Current Situation – Macro Environment (PESTEL Analysis)

Economical

The economy of UK has been getting back to the normal position as there are significant amount of increase in the tourists visiting the major cities of London as well the rest of the United Kingdom and so with the migrants from different parts of the world for jobs which would thus lead to a overall increase in the economy of the UK. Initially there need to be a high investment in purchase of building up of the vessel which would be covered under the financial capabilities of the Intercontinental group of hotels as there has been a gradual stability and increase in the economy of the Intercontinental Group of Hotels

InterContinental Hotels was the main talking point yesterday as London started the new year with a bounce.

InterContinental climbed 6.3 per cent to 597?p after a unit of Hong Leong, the Asian conglomerate that owns Thistle Hotels, declared a 3 per cent stake.

As it has been seen that the due to the economy crisis of recession there were many job losses which has left out the skilled workers out and away from their jobs but as now clearing of the overall debts of all the world economy there has been a significant growth in the economic factors as well many job openings

And as seen now there is an substantial increase in Tourism sector which would be quiet related to concept of hospitality on board of Intercontinental Blue Retreat and thus would be easier to find experienced labour

http://www.ft.com/cms/s/0/569a38fa-d937-11dd-ab5f-000077b07658.html

Political

In Britain there is new Liberal Democrats Government which will now bring on new rules and regulations on the have a change in taxation policy in correspondence to the present taxation policy on Britain

The main focus of the government is to reduce the carbon credits by reducing the carbon emissions and such elements leading towards global warming. This means there will be an increase in the fuel costs by imposing taxes over it which will directly effect on the driving of the motor vessel of Intercontinental Blue Retreat which may have a long journeys of a week from Britain to Caribbean, Mexico, Bali, Dubai at initial and thus expanding with the themed holiday retreats so the taxation rates are the major concern in considerations with the fuel as well as the service taxation rates which are to be revised

Socio Cultural Environment

Since the time trend of cruise travel came into existence the cruise liners have been a status symbol for a frequent leisure traveller who had the power to spend high amount for his travel. It was only the upper class of the society who could have afforded to travel with leisure on board but since the concept of travel with leisure had been came into existence promoting varied tourist countries and attractions it has been quiet affordable for the working class and became a means of themed travels just instead of travel with leisure

The average age of tourists travelling varies now from the young age group to the old age group varying from 15 – 55 for the purpose of visiting places over the world for holiday purpose

Technological Factors

The advancements in the cruise liners for facilitating the tourist with all the facilities throughout the journey. The major concerns in the cruise liners is the technologies to be used for waste management and water preservation and storage as well the oil or waste spills in the sea which are to be looked as major concerns.Some of the cruise liners are already implementing Water saving technologies are found throughout cruise ships, such as vacuumed toilets and low-flow faucet aerators on water outlets. In minimising emissions, is also looking at ways to reduce the amount of fuel used. As well as designing more fuel-efficient itineraries, the cruise line is pilot-testing a computer system that will make vessels more aerodynamic and lessen fuel consumption and have to further reduce sulphur oxide and nitrogen oxide emissions and particulate matter over the next decade in accordance with MARPOL Annex VI, revised in 2008, which relates to air pollution.

Some cruise lines are already implementing scrubber technology on board their ships, a system in which the natural chemistry of seawater is used to ‘scrub’ the sulphur out of a ship’s exhaust gases. These technologies are to be implemented and for which the budgeting will the looked over and thus new technologies will be adopted

Environmental

The cruise ships emit tons of sulphur emissions into the sea on a yearly average. The use of low sulphur-producing fuel which is the most popular means of reducing sulphur emissions in the cruise industry, also comes with some environmental consequences. The process of distilling crude oil to make the fuel leaves refineries with a type of waste fuel that is unusable and thus it leaves back a considerable amount of solid waste. Research is been carried out for viability of solar and wind turbine technology for ships and is set to release a sustainability report soon detailing more solutions for the future which will make the cruise liners eco friendly without disturbing the ecological balance and harming the environment.

Legal

The introduction of a new cruise liners should consider the various legal terms to be followed up which are imposed and regulated by the Cruise liner International Association (CLIA) along with the legal regulating bodies of the nations the laws and acts such as

Design and Construction standards

Cruise Vessel Safety and Security Act

Sea Environmental law (solid waste/ Toxic / Ballast water / Air Pollution)

Sexual assault on Cruise Act

Log Book and Crime Reporting

Crime Scene Preservation

These all rules, regulations and acts are to be considered from formulation a vessel to the onboard safety and security of the consumer

http://www.cruiselawnews.com/

Market Analysis

According to the projected bar graph there seems to be a substantial increase in the cruise travellers within the coming two years and this would be a very good thing for the Intercontinental Blue Retreat

The Cruising has become a major part of the tourism industry as well as for onboard hospitality accounting for with over 18 million passengers carried worldwide in 2010. The world’s largest cruise liner is Royal Caribbean which would be the major competitor for the Intercontinental Group. The industry’s rapid growth has seen nine or more newly built ships catering to a North American clientele added every year since 2001, as well as others servicing European clientele. Smaller markets, such as the Asia-Pacific region, are generally serviced by older ships. These are displaced by new ships in the high growth areas. so the Intercontinental with its new vessel would initially grab on the European market and then with the themed holidays and thus moving towards the far east

http://en.wikipedia.org/wiki/Cruise_ship

Using Micheal Porter’s five force analysis model it will help us to classify the major five forces for the Intercontinental Blue Retreat

Competitive Rivalry

There is an existing high density of cruise liners along with a increase in 32 new vessels in the coming three years which will lead to increase in vessels and so creating a port reserving problems along with the shortage of ports for existing cruise vessels There has been a competitive rivalry between the major cruise liners in the past few decades in accordance with the on board services they offer to attract the customers along with the varied experiences for the cruisers to remember with

Threat of New Entrants

Though there are 11 new cruise vessels to be launched in 2011 there is a level of threat of entrants in luxury cruise market .The easiest way to enter the cruise industry appears to be via mergers, acquisitions, and takeovers. There are essentially three cruise market segments: contemporary, premium, and luxury. Along with these types of cruises comes varying levels of service and expertise. The high cost of training and maintaining exceptional employees for their shops, casinos, entertainment, hotel staff, world class chefs, and of course the maritime staff requires a parent company with vast financial resource. Therefore the threat of new entrants is substantial. As the similar marketing strategies can be applied over but the other large group of hotels

Threat of Substitutes

The cruise industry holds a unique position in that the threat of a substitution by another vacation activity by the current consumer market seems likely to be high with the pioneering cruise companies such as Royal Caribbean, Carnival in the cruise tourism. Family cruises are also growing in popularity. a cruise vacation is generally cheaper than a traditional vacation package. Many lines offer package airfare and cruise rates to their customers. An increasing number of lines are expanding their ports of call and destinations to please the demands of today’s diverse cruise market. According to a survey 25 ships from major cruise lines from three more than last year is now carrying about 10% more passengers. All this means more choices for travellers. And thus increase in competition with the existing pioneering cruise companies and increasing a threat of substitution with Intercontinental Blue retreat

Bargain Power of Suppliers

A rise in fuel prices has been quite costly for the cruise industry, who are not only directly affected by fuel cost for running their own ships, but must raise ticket prices to cover the increase cost of flying due to high fuel prices and a hike in airfares. Quality, dependability on suppliers are vital in order to ensure repeat cruisers. If the food was good on the first cruise, consumers expect it to be up to par each time they cruise. This goes for advertising too. Carnival was the first cruise line to use television ads to promote itself. Travel services also play an important role in promoting and fulfilling cruise reservations. the bargain power of the suppliers in regards to fuel , food , supplies is likely to be high which needs an proper evaluation in accordance with the service contract for constant supply of the resources.

Bargaining Power of Customers

Cruise travellers have many different lines to choose from, each offering a slightly different variety of service on cruising. Most cruise lines target middle class travellers with the grand ocean liner experience. The first time travellers or cruisers are offered along in by moderately priced air and cruise package rates. Often one can buy a cruise vacation anywhere form $125-$250 per person, per night. Most hotel stays in major cities are more expensive per night, not including transportation as well as food. Along with low priced package rates, consumers are also demanding a unique vacation experience which would create a difference in their normal vacations . Now cruises appeal to a younger, hipper audience, and it’s easy to see why. Modern cruise ships are being more like “floating resorts,” offering everything from Casinos, spas and gyms to in-line skating and Rock-climbing walls. Cruising is the fastest-growing segment of the travel Ships also stop at more ports, with over 1,800 destinations worldwide to choose with. So does the bargain power of cruisers increase along with having wide options of cruise liners to choose from.

Customer Analysis (current and targeted)

There has been a rapid growth in number of UK cruise passengers travelling by cruise liners which have effectively been doubled in just eight years. The cruise report makes the prediction based on estimates by the UK Passenger Shipping Association that 1.35 million cruises were booked by UK residents last year, with a rise of 15% to 1.55 million predicted for this year. Now cruises are attracting to a younger, hipper audience, Modern cruise ships are being more like “floating resorts,” offering everything from Casinos, spas and gyms to in-line skating and Rock-climbing walls. Cruising is the fastest-growing segment of the travel Ships also stop at more ports, with over 1,800 destinations which would certainly lead to increase in the family travellers and young travellers which would create a trend for them to travel in luxury

The base target of the Intercontinental group would be to create a difference on their cruise liners along with the generation trends. initially it will be launched starting the voyage from UK to Mexico, Caribbean Islands, and covering 1 voyage to Bali and Asian country parts. the motive would be to create a difference in hospitality as intercontinental is following the concept of making customer happy and to create great hotels guest love

http://www.travelweekly.co.uk/Articles/2008/02/13/26646/uk-cruise-market-to-hit-two-million-passengers-by-2012.html

Internal Environment

The potentials of Intercontinental Blue Retreat –

Strengths:

Good financial stability of the brand

Customer loyalty

Large database of Intercontinental customers

Pioneers in Hospitality since long time

Luxury Brand image along with all 9 brands of intercontinental group

Assured clientele

Weaknesses:

Higher fixed cost

Onboard service is labour intensive

Seasonality of ship usage

Weak environmental policies

Long lead time for ship delivery before introduction in the market

Competitive industry with other pioneering cruise liners

High fuel and maintenance cost

Opportunities:

Expected 11 more ships in next four years

Only 8 % have taken over in the tourism sector by cruise lines

Ageing population wants relaxing vacations

Multilingual staff for language efficiency which can be picked over within from the properties over the world

ships for mergers or acquisitions from existing vessels due to brand power

Threats:

Maturing industry

Overcapacity of vessels in the sea

Rate of growth might slow down

Expected growth of 6.3 % in coming year

Tight regulations in voyage and cruise laws

Other cruise companies to increase their vessels in next year’s by acquisitions

Competitive advantage

The aim is to build a sustainable competitive advantage could be achieved by Intercontinental Blue Retreat through the Intercontinental Hotels & resorts groups economy and their pioneering performance in past few decades acquiring over 6 major brands within Brittan and world over . Possessing extensive knowledge of the UK market and existing extensive research into consumer behaviour they can offer a holistic service supported by the group’s expertise in customer service. Intercontinental already has a guest loyalty card of which the regular guests or customers can avail of the discounted rates on the voyages or themed holidays with family and friends also can avail business facilitation with intercontinental business jets for conferencing. Intercontinental blue retreat would formulate a cruise theme trip along with the hotel stays at intercontinental resorts at varied location along with hampered gift packages for the loyal customers or frequent customers and offering business coaches for business class within the cruise and pioneering the cruise liners

Mission Vision and core values of INTERCONTINENTAL HOTEL GROUP

Mission: To create great hotels guests love.

Vision: To build the hotel industry’s strongest operating system focused on the biggest markets and segments where scale really counts.

Core Values:

Do the right thing

Show we care

Aim higher

Celebrate difference

Work better together

Mission Vision and Core values of INTERCONTINENTAL BLUE RETREAT

Mission: To create best cruise guest would love.

Vision: to build up the pioneering voyages with a great customer satisfaction maintaining the higher scales in the cruise tourism sector

Core Values:

Do the best for the guest

Show the care through better service on board

Be pioneers

Work unitedly

Create valuable difference

Introduction of INTERCONTINENTAL BLUE RETREAT

The cruise vessel of Intercontinental would be introduced in summer 2010 from south Hampton port of Great Britain and the first voyage would be with grand opening to Caribbean island. The vessel would be initially advertised with the in-house marketing from all the brands of intercontinental group and along with a in-house reservation desk in the lobby of every hotel as travel desks at the lobby which would help make aware the brand loyal guests with the pre launching of luxury cruise

The Marketing Strategy (Marketing Mix)

Product:

The product being a service product it has to be generally promoted based on the brand image of the hotel so as to facilitate loyal customers with the efficient and luxurious on board service at the intercontinental Blue retreat

Price:

The price of the voyage would be as along with the luxury with an offered discounted rate to the loyalty card members of intercontinental group and along with a discounted rate for the first 200 reservation special family and themed packages with a special rated with over the chosen destination in accordance to promote the voyages

Place:

The cruise vessel of Intercontinental would be introduced in summer 2010 from south Hampton port of Great Britain and the first voyage would be with grand opening to Caribbean island. The vessel would be initially advertised with the in-house marketing from all the brands of intercontinental group and along with a in-house reservation desk in the lobby of every hotel

Promotion:

The promotions are to carried out at initially by in house promotions by in room pamphlets, advertisements on in room televisions and to the business class by a presentation of advertisement of launching and on a large scale by following

Company’s own Website

Billboards

Printed advertisements

Direct Mail to business class

Loyalty members offers

Online media

Sales promotions

Sponsorship

Type of Promotion
Method
Objective
Company’s own website

Efficient, branded website with online booking facilities.

And initial advertised page

Provide info

Enable online bookings

Billboards

.billboards at the major transport lines and tourist places along with the airport and stations

Create awareness and promote the luxury voyage facilitated for the consumers

Printed Advertisements

Poster advertisements

Ads in publications such as the travel and tourism magazine

remind and retain customers about the brands new launch

Direct Mail

Letters,

Pamphlets.

Reaching business class segment efficiently

Online Media

Emails

Banners

Sponsored links

marketing

Social media websites

comparison websitessites.

Utilise the internet to reach as many targeted customers, efficiently as possible, to guide them directly to the online booking system and retain data of customers to avail them with promotions.

Sales Promotions

In-house promotional stands and desk prior the launch

Inform about the luxurious service of the cruise

Loyalty members offer

Offer with special packages to loyalty card members

To increase brand loyalty of customer

Sponsor high end events

Sponsor high end events with a handful budget.

To get relation with the people in events and thus make brand promotions

Marketing Strategy:

Differentiation Strategy: Intercontinental Blue Retreat should make their cruises more unique and luxurious then other cruise lines making differentiation with the packages or the services provided on board by the pioneering brand in hospitality.

Sample of Advertising

Critical Reflection

I am a graduate in hospitality and tourism management with a relevant experience of one year working with a 5 star property. I have learned marketing in my bachelors but haven’t related or do not have much relevant experience with the same. It had always seemed interesting subject according to me. Coming from a hospitality background, learning the marketing concepts in depth and relating them with the real world scenario has been a truly worth experience. I was also able to explore the creative side of me while designing of the advertisement which made me think of the several factors which should actually be taken into consideration.

My expectation at the beginning of the module was to learn the basic concepts of marketing which are to be used on regular basis on and throughout marketing in any industry. But I have not only learned the core marketing theories but able to apply the theoretical concepts to practical. I feel confident now as i can take any product and formulate a descent marketing strategy. Following a video advert for the designed product line is a concept of learning the advertisement trends of marketing the new product which is quiet interesting.

The assignments provided me a tremendous opportunity to apply the gained theoretical knowledge and bring into practice. I have always considered PESTEL analysis and marketing mix as the main tool to analyse a marketing strategy for any product. These both theories provide a concrete base for marketing any product. while designing the product line of my product it became quiet clear and concise to me how anyone can relate effectively use the 4 P’s of marketing mix considering not only the product and place as in usual rather then also looked over the price and promotion of the product which are of major considerations for any product. My concept of promotion of a product was only as advertisement but as i progressed through the coursework i found out that advertisement is just a basic tool of promotion. Whereas promotions can be done in varied different ways to promote the product in market.

One of my biggest misconceptions about product placement was cleared in this assignment. I always used to consider the placement of product about an large scale in a hypermarket .as going through the product line of my new product of an chain of hotels to cruise liners was a huge and massive product for which the location on the right place at right time maters a lot as the cruise business is usually termed as seasonal

PESTEL analysis helped me to look overall factors which would effect the new product in the existing competitive market. at initial the factors like political, social and environmental factors where not been of much importance in accordance to me but while going through the assignment i realised that these factors to play a major concern in case of INTERCONTINENTAL group of hotels launching a cruise liner. The environmental factors are of major consideration with the legal environmental laws for the cruise liners as to regulations of carbon emission and oil spillages of cruises are considered with different laws which are followed up by the companies

Market analysis is an another vital tool to recognise and evaluate the market segmentation of an particular product in the market. as considering the marketing game which initially i found to be worthless. But it proved to be a very effective tool for evaluating the strategies to be applied in accordance to market situations. i always had it in my mind as a key assignment where i have learned to evaluate the market in accordance with the situation of the market and the requirements on the product in the sector. it also helped me to consider major budgeting factor as we in a group where provided with a fix budget.

During designing of the product, I had to keep in the mind the existing product portfolio, and the brand image of the company. This was challenging as they act as few factors within which I had the design the product. Placing myself in the shoes of a marketing head, I had to keep in mind the overall marketing strategy of the company, where my product fits in to the plan and how it delivers value to the customers. How would my product differentiated from the other competitors in the market

The consumer analysis in the coursework was one of key learning aspects to consider the consumer behaviour along with the consumer buying habits depending upon the several factors such as age, sex, culture, habits, psychology, needs and wants of a customer which helps in formulating a unique products which can be differentiated from the others thus creating a competitive advantage. The purchasing power of customers vary which makes it more difficult for pricing a product accordingly and also that means to me as a marketing person is that I need to keep in mind these various aspects while designing the marketing campaign. Therefore I felt, the customer profiling exercise is a great tool to understand and identify the target segment of the customers. This exercise has enabled and enhanced my understanding of marketing as a tool to figure out the right target segment for the right set of customers and the right campaign that will help promote/sell the product.

It was great to know that the intercontinental group of hotels maintain a portfolio of regular and business class consumer as well the loyalty card members. They avail and provide their consumers with a global facilitation with the loyalty card with the all existing 7 brands over round the world.

The porters five force analysis which considers the differential factors irrespective to any other theories has helped me through the assignment to consider the situational analysis of the product in the concurrent market as the factors considered such as competitive rivalry, threat of entrants, threat of substitutes are major concerns for the market situation analysis while the bargain power of consumers and suppliers where of not much importance to me unless i evaluated the assignment and came through the situations where such analysis are the major issued as for INTERCONTINENTAL cruise liners had to enter into new market there the supplies such as fuel, food and water suppliers are the major onboard requirements to be considered and suppliers bargain power has helped me to look-over evaluation of any supplier

SWOT analysis was useful in clearly highlighting the strengths I can use to promote and position the product, looking to weaknesses how i can improve the defects on the company, opportunities and threats will help me to look on to futuristic considerations. The best thing about the SWOT analysis was that during the process of conducting SWOT for the pioneering brand of Intercontinental Hotels and resorts, I realised that it is a very effective tool to understand a company’s position in the overall market. Realizing the benefits of a SWOT analysis I decided to conduct a SWOT analysis on myself. This was even more insightful to me. It clearly helped me understand how I can improve myself professionally and personally. Considering my strengths weaknesses and improve myself

After going through the assignment it reminds me of the question which was once asked to us as in a practice session to debate on with “Marketing is an art or a science”? This now truly makes me feel that it cant be any single piece of the duo pair because the science of the theory is implemented and the form of marketing art helps to implement the science into practical. So it cannot be just the one part of instead both terms compliment each other. During the exercise I felt I have undergone a complete transformation in terms of

This section resumes the marketing opportunities, strategy and financial objectives for senior manager who are in charge with the approval of the marketing plan.

TUI Travel PLC is looking to extend its already integrated operations by opening a sightseeing division. The pilot will be executed in the UK, as London is one of the major destinations for overseas travellers. The company will be able to compete with the sightseeing at local level and the pilot out of London tour, which provides the same attractions as the three already established sightseeing tour operators.

The product will be offered to all our customers, orientated principally to families and empty nesters.

The primary marketing objective is in line with the corporate policies of integrating and offering customers a customised service suitable to their needs.

2 – BUSINESS OVERVIEW

TUI AG is considered the leading integrated tourism provider in Europe, it is divided in three sectors: TUI Travel PLC, TUI Hotels & Resorts and the Cruise brands Hapag-Lloyd Kreuzfahrten and TUI Cruises.

TUI Travel PLC was formed in 2007 by the merge of First Choice PLC and the Tourism Division of TUI AG. The company operates in four sectors: Mainstream, Specialist and Emerging Markets, Activity and Destination and Accommodation.

According to Interbrand, the success of TUI AG as a corporation is the message embedded in its mission statement ‘ Putting a smile on people’s faces, along with their corporate culture of excellency aim to provide customers with an unforgettable experience during their holidays, while reinforcing sustainability in all its destinations.

TUI Travel PLC possesses the strengths inherent from being part of a major corporation including brand awareness, comprehensive services, leading domestic player. The key opportunities come from the joint ventures and the growth in hotel industry. Its principal weakness is dependence in the European market; also face the threats of competition from low cost carriers and slowdown in the markets economy.

Strengths

Brand Awareness:

TUI Travel PLC operates principally through First Choice and Thompson, both have a reputation for servicing the leisure travel customer, providing differentiated and flexible options to meet changes in demand.

Comprehensive Services

Having a broad range of services, the company’s operations cover the whole tourism segments and the diverse stages of a holiday: from retail, tour operating, flying and accommodation up to additional services at the destination.

The company owns a network of travel agencies with active presence in more than 15 markets in Europe, as well as a fleet of aircraft through TUI Fly. TUI Hotels provides hotel accommodation to its various destinations. Additionally, the company offers luxury and premium class cruise liners through its Hapag-Lloyd Kreuzfahrten joint venture.

Leading domestic player

The company supplies travel services for over 30 million customers from 27 source markets. It also provides airline services with a fleet of more than 146 aircraft and 350 retail shops in Europe. Additionally, TUI Hotels & Resorts is considered the leading hotelier in Europe with around 243 hotels with approximately 154,000 beds in 28 countries. The major brands of hotels include Riu, Grupotel, Iberotel, Robinson, Grecotel, Magic Life, and Dorfhotel.

Weaknesses
Dependence on Europe

TUI AG is greatly dependant on Europe for its income generation, around 79% of its revenues. High focus of operations in a single region increase the company’s chances to more diverse risk exposure such as local factors i.e.: lower demand, severe weather conditions, labor strikes, change in regional laws and economic conditions, thus constraining the ability for growth.

Opportunities
Joint venture agreements

In March 2009, TUI Travel and Air Berlin come into a long-term strategic partnership for their German sector flight segment, based on a cross ownership where TUI Travel, through a subsidiary, will have an interest of 19.9% in Air Berlin.

Growing global hotels and motels industry

The worldwide hotels and motels sector has observed a major growth in recent years. The industry performance is anticipated to recover further. With well-built geographic presence in hotel industry, TUI Hotel & Motel is well positioned to take advantage of this opportunity head on.

Treats
Economic slowdown in Europe

Since the company’s revenues rely on the general economic conditions of the region and the economic position of Europe is projected to be weak after the recent chaos in financial markets and consumer attitude, it could reduce the demand for the company’s products and services.

Competition from low cost airlines

Whereas traditional airlines are encountering rigorous challenges such as elimination of routes and reducing staff, the low cost sector carry on expanding at a incredible rate, trends show that the low cost carriers are becoming leading players on a considerable number of intra-European short -haul point-to-point routes. Strong competition from low cost airlines could negatively influence the company’s operations.

3 – MARKET OVERVIEW

Although the tourism industry had a steady growth over the last few years, it is evident that it is not immune to the effects of economic and health alerts. According to the Office for National Statistics, the number of visits to the UK fell in 2008 for the first time since 2001, overseas residents made 31.9 million visits to the UK in 2008 compared with 32.8 million in 2007, a fall of 2.7 per cent. Despite the decline in the number of visits, spending on trips to the UK reached record levels during 2008; overseas residents coming to the UK spent a total of ?16.3 billion, an increase of 2.3 per cent on the 2007 figure (published 16th July 2009) [1]

However the same office, has reported that in the three months to February 2010, compared with the previous three months, the seasonally adjusted results from the international Passenger Survey showed that: aˆ? Overseas residents’ visits to the UK increased by 2 per cent to 7.5 million. Figures for the most recent months are provisional and subject to revision in light of (a) more accurate data on passenger figures becoming available at the end of each quarter (published 15th April 2010) [2]

Although the figures above only represent the winter trends, gives an indication of improvement in the market. TUI Travel PLC, could see such indication as an opportunity to get stronghold in the market in the future.

3.1 – CUSTOMER INFORMATION

The company uses a policy based on its brand identification, for example First Choice is aimed primarily to families, while Thompson has characterised its segment target to be oriented to couples and seniors. Both segments assumed to have additional disposable income.

3.2 – SERVICE INFORMATION

As previously stated, the company offers an integrated range of tourist services, personalised according to customers’ demands and needs.

Thus, in order to integrate further its operations the aim of this project is to highlight the relevance of a sightseeing venture to facilitate the overseas customers visiting UK for example.

4 – OBJECTIVES

The key objectives for the UK sightseeing division under TUI Travel PLC are:

Further integration of services provide to overseas customers.

Continue with the differentiation policies in all products offers.

Aim to carry 50% of UK visitors from its various brands to different sightseeing attractions during the first year of operations. The carrying rates are to rise on 20% on yearly basis thereafter.

5 – STRATEGY

The UK Sightseeing division will provided customers with a friendly, personalised experience while using professionals guides to accompany groups in their trips to the historic and most relevant sights.

5.1 – PRODUCT

Initially the products will encompass the following products:

London tourist sights: Panoramic of London, Photo stop at Buckingham Palace, Photo stop at Saint Paul Cathedral, Lunch in a traditional English pub, cruise for the river Thames and entrance to the London Eye.

Outside London: Entrance to the Windsor Castle, Roman Bath with walking tour of the historic town, Lunch in a traditional English pub in Salisbury and entrance to Stonehenge.

Customers will be pick-up from their hotels at a pre-determine time in order to ensure that all passenger are present at time of departure. At the meeting point customers will be introduce to their guide for the day and will be taken to the vehicles designated for the chosen tour.

5.2 – PRICE

Considering that there is three more sightseeing tour operators in the UK, the prices should be in line with similar products offers by the competitors in order to maintain the demand for the products.

However, since the business unit will be part of a package holiday, TUI Travel will surely achieve a higher level of economies of scale when contracting the services of suppliers involved on the operational side of the tours.

5.3 – PLACE & PROMOTION

Stores: The Company have to its disposition over 650 retail shops around UK, which will give them a competitive advantage over its competitors, as the three major sightseeing operators only serve London through their call centres.

Website: First Choice and Thompson both enjoy large websites, which are characterised for being user friendly and easy to navigate, thus any customer interested in additional services will be able to find the combination of products suitable to their needs.

Search engines optimization: To improve the discovery of the websites, UK sightseeing division will ensure that links are built within key Internet search engines sites, as well as key word register to the main domains (i.e. holidays, short breaks, all inclusive, etc)

Advertising: Once the operational site of the UK sightseeing division is up and running, TUI Travel will make the announcement through its major website, as well as to link the release news on the websites for all its subsidiaries within the group, to ensure that customers booking holidays in advance are aware of the new available services.

Public Relations: Prior to the opening the company will invite representatives from its hotel portfolio to enjoy the tours offered and request feedback on their views as to evaluate the services in offer. The company will arrange for a formal launch of its new division, inviting relevant press representatives from major newspapers as well as tourism specialised magazines.

Promotion: High quality brochure is to be promoted and make available in all hotels belonging to the group for display (concierge desk for example) available to all customer staying at the hotels.

5.4 – PEOPLE

Appropriate staff is essential for a service to be perceived and recognised by its customer. The difference between customer retention or not is mostly attributed to the way services and management customer techniques are delivered by a company. Staff must have the suitable interpersonal skills, attitude, and service knowledge to give the service that consumers are paying for. [3]

TUI is very supportive when it comes to training and ongoing development and believes it is vital that people are given opportunities to learn throughout their career. The company has its own dedicated in-house Learning and Development team and there are many opportunities for development such as workshops on a variety of topics, one-to-one coaching, e-learning and where appropriate, TUI support their staff to undertake professional and vocational qualifications relevant to their role. All staff has regular one-to-one reviews with their managers to support their ongoing development and explore further opportunities for training and development. [4]

5.5 – PROCESSES

Relates to the systems used to aid a company to deliver the service. The company will ensure that time tables are kept in order to avoid delays on the running of the tours. Make certain that customers place their lunch order in time during the morning tour, as to ascertain that lunch meal will be served according to schedule. Any complains or recommendation should be dealt promptly to maintain customer confidence.

5.6 – PHISICAL EVIDENCE

The physical evidence is an important element of the service mix, customers evaluate their perceptions based on their view of the service provided, having an impact on the organisations perceptual plan of the overall service. [5]

Primary the company will aim to close the gap between customer expectations and company perception of the customer needs.

6 – BUDGETS

Item

Date

Cost

Measure of success

Website adjustment

30 May

?2500

Number of hits per month 3000

Payment to search engines adv to increase exposure

15 June

?13000

All subsidiaries sites carrying links

Brochure

01 June

?10000

Deliver to all hotels in the group

Advertising in specialised magazines

01 June

?10000

Monthly slot secure for 6 months

Site hosting costs

15 June

?8000

Google, Mozila secure feature on first page

Launching Night

15 June

?5000

300 people attendance

?35,500

7 – ACTION PLAN

Action

May

June

July

Aug

Improvement of website

07

Logo design align with TUI Travel

15

Link website into Sub- websites

20

Advert in magazines

27

Invite reps from news papers and mag

01

Launch night

15

Brochure delivery

10

Complimentary tours

01

First customer running tour

10

Measure of passengers on tours

10

Evaluation of results/correctives if needed

15

8 – Evaluation of Results

During this face of the project, the aim is to evaluate the overall performance of the tours operational and tactical side. TUI Travel subsidiaries websites (First Choice and Thompson) have the capability of allowing customers to publish live comments on their experience.

A team will be assigned to evaluate and quantify the comments in order to assess the performance of tours, and implement correctives if necessary.

9 – Conclusion

Where TUI Travel to implement the above plan, it will improve further their policy of differentiation and facilitate customer choices at the time of browsing for a package holiday with London as a destination. The assumption is that the new business unit will be implemented as a pilot project to evaluate its feasibility and acceptance from customers in general, local and overseas travellers.

TUI AG, continue to endorse its mission statement even in the light of lost of revenue in the case of natural disasters; like the one recently experience due to the Volcanic ash from Island which closed European airspace for over a week.

TUI Travel PLC, announced on the 21st April that they were implementing their crisis plans, which included provision of welfare to customers in resorts and commencing the repatriation action as soon as possible. Their plan contemplate repatriation through coaches, ferries and owned cruises and according to their estimation all of its customers will be back in England by Friday 23rd April.

Measures implemented as above, form milestone for brand recognition and undoubtedly give customer peace of mind, as they are confident that their travel company cares about them and will do whatever takes to ensure a safe return home.

Individual Critical Reflection of Learning Outcomes

During the course of the subject Marketing Management, I came to realise that marketing is a complex theme.

The models and other techniques studied where made easy to understand by the tutor and the evaluation of it through practical examples facilitate the assimilation of the material.

Personally I feel that the simulation done through the Marketing Game software was critical for the understanding in how marketing a product affects the whole of an organisation, and how the decisions made in terms of cost/investment can have both, positive or negative outcomes.

Another skill that was put to the test relates to communication, as in some cases we were grouped in teams to solve/discuss material regarding the subject matter.

Regarding the assignment I found it quite difficult to tackle as, first English is my second language and 2nd although I have presented written works before they were in my mother tongue and oriented to practical experiences rather than research itself.

As a next step, I will work through future assignments with more time in order to share my queries with my tutor, as to ensure that I have understood the approach to be evaluated with the written work.

Explaining the importance of market research and advantages and disadvantages of implementation of the marketing plan for Hospitality/Tourism industry are the key concepts of this essay. To attain these objectives at first a brief description of market research and marketing plan have been given respectively followed by the importance of their presence in the service industry.

Philip Kotler has defined market research as “the systematic design, collection, analysis and reporting of data and findings relevant to a specific situation facing the company”. (2009:190) Market research links the consumer, customer and public to the marketer through information used to identify and define marketing opportunities and problems. (Albert Breneman Blankenship et al, State of the art marketing research, 1998, pg 7)

Market research is a vital part of any successful business today. Some of the benefits of market research for the operation of Hospitality industry are:

Market research helps the industry to identify opportunities in the marketplace.

For example, if you are planning to open a hotel/restaurant in a particular geographic location and have discovered that no such organisation currently exists, you have identified an opportunity. Thus the opportunity for success increases if the location is in a highly populated area with residents who match the target market characteristics which also can be done by research.

Market research minimizes the risk of doing business.

For example, marketing information may indicate that a marketplace is saturated with the type of service you plan to offer. This may cause you to alter your product offering or choose another location.

Market research uncovers and identifies potential problems.

Suppose your new hospitality organisation is thriving at its location on the main road through town. Through research you learn that in two years, the city is planning a by-pass, or alternate route, to ease traffic congestion through town. You’ve identified a potential problem.

Market research creates benchmarks and helps you track your progress.

It’s important to know, for later comparisons, the position of your business at particular moments in time. Ongoing market research allows the industry to make comparisons against benchmark measurements as well as chart of progress between research intervals (such as successive annual surveys).

Success depends on a lot of things, but when you have information about a particular market segment, a geographic area, or customer preferences, you’ll be better prepared to make the decisions that can make or break your business. Many companies use market research as a guide. Whether you want to expand your business into a new area or introduce a new product, market research plays a great role in hospitality industry by providing valuable insight to prevent costly missteps.

A marketing plan begins with the identification (through market research) of specific customer needs and how the firm intends to fulfil them while generating an acceptable level of return. It is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. Marketing plans cover between one and five years. It generally includes analysis of the current market situation (opportunities and trends) and detailed action programs, budgets, sales forecasts, strategies, and projected financial statements

Advantages of implementation of the marketing plan for the service industry:

It is imperative for the organization to regularly assess its competitive strength amidst its competitors in the market. This helps the organization in developing and modifying its marketing and sales planning.

A well-written, comprehensive marketing plan is the focal point of all business ventures because it describes how you plan to attract and retain customers, the most crucial aspect of a business.

It is the heart of the business, the basis from which all other operational and management plans are derived. Marketing offers you a wealth of information that if applied correctly virtually can ensure your success.

Determines demand for product

Aids in design of products that fulfil consumers needs

Outlines measures for generating the cash for daily operation, to repay debts and to turn a profit

Allows for test to see if strategies are giving the desired results

Disadvantages of implementation of the marketing plan for the service industry:

Identifies weaknesses in the business skills

Leads to faulty marketing decisions based on improperly analyzed data

Creates unrealistic financial projections if information is interpreted incorrectly

Identifies weaknesses in the overall business plan

(Mary Bellis. Marketing Plan for the Independent Inventor)

The implementation of Marketing Planning simply tries to structure and shape the proposed marketing programmes and activities of the organisation. It offers numerous advantages; along with some drawbacks. However, the advantages outweigh the drawbacks.

Part B
Introduction

This report is about a luxurious hotel from UK, which provides Spa utilities. Things like promotional products, who are the targets market, price, are going to be explained in detail.

Spa Hotel

The word spa, taken from the name of the famous mineral springs in Spa, Belgium, has become a common noun denoting any place with a medicinal or mineral spring. Less well known is its Eastern New England sense, “soda fountain,” probably an allusion to the carbonated or “mineral” water that is a staple ingredient of many soda fountain concoctions.

The term Spa is associated with water treatment which is also known as ballneotherapy. Spa towns or spa resorts (including hot springs resorts) typically offer thermal or mineral water for drinking and bathing. They also offer various health treatments. The belief in the curative powers of mineral waters goes back to prehistoric times. Such practices have been popular worldwide, but are especially widespread in Europe and Japan. Day spas are also quite popular, and offer various personal care treatments.

Chosen organisation: Alexander House and Utopia Spa Hotel

It is located in EAST STREET, Turners Hill, West Sussex. It is an exclusive country house set in 175 acres of mature gardens and parkland yet only 15 minutes from Gatwick Airport and major motorways. The hotel has a vast range of amenities to include Utopia Spa:

Target customers, Promotional activities and the Prising of the chosen product:

The Hotel Spa doesn’t have a specific target market but they put an accent on the adults which are keener to spend some relaxing days at a spa centre and old people too, who are coming for healthy treatments.

Like any other business, the strategy to attract more customers includes promotional offers:

Sunday Night Spa escape -enjoy, invigorate with an energetic massage concentrating on the back, neck and shoulders. Time= 25 minutes

Bust your confidence with a special facial treatment with natural and fresh ingredients. Time = 25 minutes

50% off if you will take dinner in the hotel’s restaurant

Everything for the price of ?140.00

Spring Special Spa Break ?159

?50 toward treatments of your choice

Dinner allocation of ?30 on food only

Overnight accommodation

Analysis of the consumer survey questionnaire to find out the present market position of Spa Hotel:

The table and pie charts given below give a breakdown of a market research on spa hotel in UK. As can be seen, people generally expect convenient, affordable and optimum services from the mentioned hotel. Research has been done by using questionnaire method, completed by 10 people from all walks of life.

When we found an answer to the investigation question arisen in this report, firstly we will display the data in a table and pie chart respectively and, then, the descriptive statistics that allow us to reinforce those results and better understand those differences.

In the second question, Spa experience has divided in 3 major catagories namely calm and quite place, busy night life and country side. Majority of people (6) wanted a calm and quiet place for their spa experience. A substantial number of people (3) have chosen busy night life while only one person has supported country side.

In this context, we see that, in terms of the pieces of per night of a spa Hotel, the responders(6) prefer mainly option one which is ?125-?190 the lowest instead of the others, the second lowest price; in second place as 3 people chose it. Lastly nobody prefers the price of ?250-?350 for their spa experience in contrast 1 person choose option three (?200-?300), which is second more expensive one.

According to the table of second question of price section, Basic+Additional package are not on the preferred list of the people. On the other hand all inclusive and individual packages got the equal position of getting 50% response each, when responders answered about their preference about the packages.

In term of services, restaurant, shopping outlets and beauty saloon are majoring in the main services offered by the Spa Hotel. 60% people have expressed that they would enjoy restaurant facilities most. Shopping outlets have come in second position with 30% while only 10% liked Beauty saloon.

In the last question, people have been asked about whether they like to have outdoor facilities like cycling or climbing on a mountain offered by the spa hotel or not. 8 out of 10 people expressed the intention of joining either of the facilities. In contrast, only 2 people have denied to having them in their spa experience.

Conclusion

To sum up we can say that the opinion of peoples about the spa hotel defers in many ways but they have some similarities as well. One of them is they all like to have the experience of a Spa hotel. There are some restrictions that may be pointed out in this study, namely the fact of not having been highlighted a stricter age rank within the population and the sample’s dimension is somehow reduced. In terms of future threads of investigation, it would be interesting to cross the gender variable with age, income level, professional occupation and also to expand the same study to more than a country.

The Kenya Tourist Board will develop a good marketing mix strategy to attract target customers from Asian tourism market. The marketing mix will encompass 4P’s analysis that includes tailored tour packages, pricing strategies, well-designed service channels and promotion programs.

Kenya is positioned as a unique and attractive holiday destination that people would like to visit. Kenya tourist Board will coordinate with travel agencies, local organizations, airplane companies, and service operators to ensure tourists have an excellent and unforgettable experience when they are visiting Kenya. The Kenya Tourist Board will plan its tour such that tourists obtain satisfactions from all touch points of services. Tourists’ feedback will be very important for the board to review and adjust its strategies.

Kenya is well established as a leading safari destination with unique wildlife attractions in the western market. The Kenya Tourist Board will continue to provide and improve safari tour as its core product to Asian tourism market. Major safari attractions such as the Great Migration, the Big Five and Maasai Mara Reserve – namely the new Seventh Wonders of the World will be focused on and promoted to Asian tourists. The Kenya Tourist Board will also plan and design special safari tours targeting at high-income earners who are willing to pay special prices to luxury activities such as balloon safari and game viewing.

In recent years, Asian countries are becoming more interested in business opportunities in Africa. As the commercial center for East Africa with good facilities and hotels, Kenya is well positioned to attract MICE (Meetings, Incentives, Conferences and Exhibitions). The Kenya Tourist Board will work with business organizations and companies to attract and promote conference and business events to Asian countries.

The Kenya Tourist Board will plan beach and resort tour packages targeting mainly to business and family holiday tourists who tend to travel in large group size. The tourists will relax and experience the paradise of Kenya beach and shores. The tourists may choose to lay back and enjoy themselves or go out and explore Kenya’s unique coastal culture.

British Prince William and Kate Middleton were engaged in Kenya in November 19, 2010. This is a good change for the Kenya Tourist Board to promote and boost Kenya tourism. The engagement has worldwide publicity that will enhance Kenya’s profile as a romantic holiday destination. The publicity will continue into year 2011 when the wedding will be held. The Kenya Tourist Board will promote Kenya as a romantic holiday destination to Asian tourism market along with this romance.

The Kenya Tourist Board will design pricing strategy carefully because of high-competition in tourism industry from many countries and places. The board will communicate with agencies to make sure that Kenya tour package price is affordable to Asian middle-class tourists. The board will ensure that tour agencies could operate with profit, and at the same time they will not over-charge customers. Since Asian tourism market is new market for Kenya tourism, the Kenya Tourist Board will start with good promotion price to attract more tourists from Asia.

Since Kenya is remote country to Asia, information availability to Asian tourists is vital for promoting Kenya tourism in Asia. The Kenya Tourist Board will set up operation offices in major Asian cities such as Beijing, Shanghai, New Delhi, and Tokyo etc. The board will collaborate with Asian local travel agencies to promote Kenya tourism to potential customers. The Kenya Tourist Board’s headquarter in Nairobi will serve as main office and coordinate the operations of offices in Asian cities.

The “Magical Kenya” is the official Kenya travel and tourism web site owned by the Kenya Tourist Board. The web pages describe attractions and provide travel guide to tourists in English and other languages including Japanese. The Kenya Tourist Board will translate the web pages into Chinese and Korean so that the board will reach Asian customers more effectively since China and Korean are the leading Internet users in the world.

Promotion strategies will be discussed in details in marketing communication strategy section.

Marketing Communication Strategy

The Kenya Tourist Board will develop and implement marketing communication strategy for Asian tourism market. The marketing communication strategy is to focus on brand development, Internet marketing, partnership, advertisement and promotion.

Brand Development

In today’s competitive and crowed tourism market, it is essential for Kenya to create a strong brand identity to differentiate itself from competitors. The brand image should bring not only physical experience but also emotional feelings in customers’ mind. Kenya is potentially one of the strongest brands in Africa for its unique African wild life and diverse landscape. However, currently Kenya is not a strong and well-known holiday brand in Asian tourism market. The Kenya Tourist Board will ensure to establish a consistent brand image of Kenya to Asian tourists through different communication channels.

Internet Marketing

Internet is cost-effective and easy way to reach mass customers. Many tourists especially high-educated and high-income ones search information on the Internet when planning holiday trips. The Kenya Tourist Board will make sure of Internet medias and tools effectively to promote Kenya tourism. The board will translate “Magical Kenya” web site into Asian languages and keep on improving the web site. The Kenya Tourist Board will sponsor Internet users to set up forums, blogs, twitters and facebooks of Kenya tourisms. Emails and newsletters with Kenya tourism news and information will be sent daily to registered users. The Kenya Tourist Board will encourage tourists to tell their stories of Kenya by giving free gifts or prizes. The Kenya Tourist board will also collect tourists’ feedback from Internet to improve its services and products.

Partnership

The marketing communication strategy and plan will not be successful without considering local culture. To conquer communication barrier, the Kenya Tourist Board will establish partnership with local agencies, companies and government organizations. The Kenya Tourist Board will collaborate with Asian government organizations to organize road shows or events like Kenya Week to promote Kenya tourism industry. The Kenya Tourist Board will help local agencies to train local staff to service customers more effectively.

Advertisement and Promotions

The Kenya Tourist Board will advertise and promote Kenya tourism from all touch points. The Kenya tourism magazines and brochures will be placed in Kenya Airways planes, major Asian airports and travel agencies. The Kenya tourism will be advertised on newspaper, magazine, Google web and TV program. The promotion prices will be offered to customers on Asian holidays such as National day, Chinese New Year etc.

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda.Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

Tourism is one of the world’s fastest growing industries at present and holds the status of the world’s no. 1 industry.Spending on tourism amounts to 5%-10% of total consumer, spending in a year worldwide.The industry creates a job every 2.4 seconds with every one of those direct jobs creating another 11 indirect ones.The tourism industry as a whole is presently estimated to earn over US$ 3.5 trillion worldwide. India’s share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India. India’s share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more tourists than India.

MARKETING MIX OF TOURISM INDUSTRY
PRODUCT

Product is the combination of tangible and intangible elements. The tourism product, which is mainly the destination, can only be experienced. The views of the location travel to the destination, the accommodation and facility as well as the entertainment at the destination all form the tourism product.Thus it is a composite product combination of attraction, facilities and transportation. Each of these components has its own significance in the product mix and in the absence of even single components, the product mix is incomplete.

PRICE

Pricing in tourism is a complex process. Pricing includes the prices of other services like Air travel, Bus, Railways, Hotels, etc. All are included in tourism package. Pricing also depends on the Geographic location of the destination.Pricing also depends on Seasonality. Seasonality is the most important factor in pricing. To match demand and supply tourist managers try to get either discount. E.g. Taj is the tourist attraction in India. Pricing is also based on competitors pricing. Pricing is also subject to government regulations. E.g. Air price changes tourism package also changes, if Hotel charges change then also tourism package changes.

Pricing of the tourist product is a complex matter because of its composite nature. Geographical location of the destination affects the pricing decision. At the same time, seasonality factor and varying demand cannot be overruled. The objective of pricing in any other firms is to fetch a target market share, to prevent competition, and to take care of the price elasticity of demand.

A very important way, in which the travel and tourism business responded to their highly complex pricing circumstances, is to operate at two levels. The first level is corresponds with the marketing strategy, which concerns with the product positioning, value for the money, long run return on investments etc. The second level corresponds to the marketing operations or tactics where the prices are manipulated to match the current demand and competition.

PLACE

Different distribution strategies can be selected for Tourism marketing. Tourism as a product is distributed as a travel. Internet is also used widely. There is an also small agent spread all over the town who plays a role of place. Large travel companies like Thomas Cook, Cox & Kings, SOTC, etc they act as a wholesalers and these wholesalers also act as a retailer.

The tourism marketer may not have adequate choice of the tourist center, because in most of the case the tourist destinations many be natural, historical attraction. But, infrastructure facilities, transportation, communication are important for the development of the tourist center. The major decision that the tourism marketer takes regarding distribution is relating to the channel of choice and channel members. The uniqueness of tourism industry is predominant position of intermediaries. The two major functions performed by the distribution system in tourism marketing are:

To extend the number of points of sales or access, away form the location at which services are performed or delivered

To facilitate the purchase of service in advance

Different distribution strategies may be selected to reflect the company’s overall objectives. The middleman may be tour operators, who buy tourism products in bulk and make them available to travel agents who are retailers. The range of tourist products, which are bought by the tour operators are airline seats, hotel accommodation, bus for local sight seeing, etc. they may also sell directly to customers. The latest mode of reaching the tourist is through Internet. Ticket booking can also be done through the Internet and payment is made with credit card.

PROMOTION

Creation of awareness has a far-reaching impact. The tourist organizations bear the responsibility of informing, persuading and sensing the potential tourists in a right fashion. The marketers need to use the various components of promotion optimally so that they succeed in increasing the number of habitual users. Promotion helps in maximizing the duration of stay, frequency of visit by offering new tourist products in the same country to areas, which have remained untapped or partially tapped. The various dimensions of tourism promotion are as follows:

Advertising: Advertisement gives important information to the actual and potential tourists. Its coverage is wide. Advertising is aimed at the public to create awareness of the travel offers available on a resort and its attractions to influence their business decisions. Intangibility can be compensated with the help of visual exposure of scenes and events. We can project hotel bedrooms, well-arranged restaurants and cafeterias, swimming pools etc.

Publicity: It focuses attention on strengthening the public relations measures by developing a rapport with media people and getting their personalized support in publicizing the business. It helps in projecting the positive image of tourist organizations since the prospects trust on the news items publicized by the media people. The publicity program include regular publicity stories and photographs to the newspapers, travel editors, contact with magazines on stories etc. advertising is a part of publicity.

Sales promotions: Sales promotion measures are the short-term activities seeking to boost sales at peak demand periods to ensure that the firms obtain its market share and are used to help launch a new product or support an ailing or modified one. The tool of sales promotions is designed to appeal particularly to those customers who are price-sensitive. There are a number of techniques to promote sale and the tourist professional need to use them in the face of their requirements vis-a-vis the emerging trends in the business. Eg. In the tourism industry, a travel company offers give-aways to their clients, such as flight bags, wallets for tickets, Foreign Exchange (Forex) and covers of passport. The hotels offer a number of facilities like shoe shine clothes, first aid sewing kits, shower caps and shampoo. Further, the VIP clients also get fruits and flowers in their rooms.

Word-of-mouth Promotion: Most communication about tourism takes place by word-of-mouth information, which in a true sense is word-of-recommendation. In the tourism industry it is found that the word-of-mouth promoters play the role of a hidden sales force, which help the process of selling. The high magnitude of effectiveness of this tool of promotion is due to high credibility of the channel, especially in the eyes of the potential tourists. The sensitivity of this tool makes it clear that tourist organizations need to concentrate on the quality of services they promise and offer. The marketers or the tourist organizations need to keep their eyes open, identify the vocal persons or the opinion leaders and take a special care of them so that they keep on moving the process of stimulating and creating demand.

Personal Selling: Personal Selling is based on the personal skill of an individual. The travel and hotel business depend considerably on the personal selling. The development of travel and tourism has been possible due to well-educated and trained sales personnel. The development of tourism business has been influenced by the services rendered by the travel agents and travel guides since they work as information carriers. Personal selling is the personal presentation of a tangible product or intangible services or ideas to the customers. It is important to mention that in the tourism industry, the personnel who attend tourists form an essential ingredient of the product, such as sales personnel are found responsible for dealing with customers behind the counter, the resort representatives cater to the need of tourists when they reach the destination etc. all of them play a vital role in ensuring that the tourism products satisfy the tourists. The phrase- the customer is always right applies specifically to the tourism industry. No reduction in price would compensate for impolite and indecent travel guide, a solvent waiter and a surly or a haughty coach driver. These facts are testimony to the proposition that the travel business is linked with the performance and behavior of sales personnel or travel staff.

Telemarketing: It is a method of selling in which a professionally sound telemarketer markets the business. The quality of technology and the communicative ability of the telemarketers determine the magnitude of success of this component. In tourism, the travel agents, offices of airways, receptionist, and secretaries work efficiently if the telephonic services are not up to the mark. Also recruiting a person considered to be professionally sound, personally-committed sales personnel having an in-built creativity, innovation and imagination is very important.

Exhibitions: The participants include state and national tourism promotion boards, travel agents and tour operators, airlines, car rentals, cruise liners, holiday financiers, technology providers, hotels and resorts, education institutions in the field of hospitality and tourism. Over the years the participation of foreign tourism promotion boards like the Dubai Tourism and the Mauritius Tourism, etc has increased in order to aggressively promote their respective countries.

PEOPLE

It plays a most important part in tourism. In people local people are very important, that how they treat tourist. The travel agents, guides, staff of travel companies, sales staff, etc they are the people. Travel Company also like Railways, Air, etc. is included in people. Normally a tourist assures a tourism quality like hotels, Travel Company.

The personnel who attend to the needs of the tourists form an essential ingredient in tourism marketing. The sales personnel are responsible for dealing with the customer behind the counter. The airline and transportation crew interact with customers while traveling. The resort or hotel representatives enter to the needs of the tourist when they reach the destination.

The tourist guides, who interact with the customers at the tourist location, all form the people element in tourism marketing. These contract persons must be trained on interpersonal skills as well as knowledge of the product. In the tourism industry the travel agents and the travel guides are the two most important people who speak a lot about the industry. Hence it is imperative that they have to be at their best at all times. Travel guides especially, are expected to have a lot of patience, good sense of humor, tact to transform the occasional tourists into habitual ones, thorough knowledge of the places, linguistic skills etc.

PROCESS

The operation process of the tourism firm will depend on the size of the tourism firm. The sequential steps involved in the delivery of the tourist products are:

Provision of travel information: The information regarding the travel is provided at a convenient location where the potential tourist seeks clarification about his proposed tour.

Preparation of itinerates: It is a composition of series of operations that are required to plan a tour.

Liaison with providers of services: Before any form of travel is sold over the counter to a customer; contracts have to be entered with the providers of various services including transportation companies, hotel accommodation, coaches for local sightseeing etc.

Planning and costing tours: Once the contracts and arrangements are entered into, then the task of planning and costing the tour, this will depend on the tour selected as well as individual requirements.

Ticketing: The computerized reservation system has in recent years revolutionized the reservation system for both rail and air travel.

Provision of foreign currency and insurance: In case of foreign travel the final task provide foreign currency as well as insurance

PHYSICAL EVIDENCE

The tourist attraction, which is an expensive for the customer must be tangibilised with the help of tangible items like, comfortable seats while traveling, layout, and design of the resort, natural service scope, etc. the sign posts that indicate directions, route maps, information regarding rules and regulations of the tourist spot and the sign regarding the public utilities like toilets, telephone booth also form a part of the physical evidence.

Printed matters such as brochures also play an important role in the development of tourism. As the product, in tourism is intangible. There is a need to describe fully the product, which is done by providing an elaborate brochure, which shows how different elements of the programmes are carefully planned to include all necessary information to make holiday establishes expectation of quality value for money, product image and status, which must be matched when the product is delivered.

PEST ANALYSIS

Environmental influences can be analyzed by using the PEST analysis.

POLITICAL

The political factors are the main driving force of the industry. The Indian tourism industry is built on the backbone of Government support and the industry cannot sustain itself without it. The various archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the Government. All the support services like the hotel industry, the airlines industry and the tourist operators to name some are heavily dependent on the support and the cooperation of the Government.

The major reason as to why tourists visit India is for the vast and rich heritage that our country has. That is under the control of the Government, through the Archaeological Survey of India. Any policy change that comes into force can have dramatic effect on the way the industry players perform. For example, the Government charges high rates of taxes on the luxury and the star category hotels and this has always been a cause of disagreement between the hotel associations and the Government. There are many areas where the growth of tourism has not been rapid or has seen dramatic fall because the political environment has not been conducive. Examples are the North East for the former and Kashmir for the latter. The neglect of the Government in developing the North-East has led to a situation where there is practically no tourism in the seven states.

Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual decimation of the flourishing tourism industry. However, there has been a change in many of the policies of the Government with regard to the tourism industry. The hotel industry has been getting many incentives and many State Governments are encouraging the growth of major hotels in their states.

ECONOMIC

The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world. Since we are concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has led to a tourism boom the world over and India has been no exception. There have been more people coming into the country with more cash than ever before. This has lead to an increase in the demand for better hotels. People who previously used to come to the country on a shoestring budget and hunt around for the cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in the number of hotels in the country. However, an increase in spending does not only limit itself to accommodation. The increase in the spending is also evident in the increase in the number of people traveling by air. Even the number domestic tourists traveling by air has dramatically gone up.

SOCIAL

Tourism was always looked upon as something that led to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60’s to the early 80’s when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state. This had a ripple effect on the country. People became cautious, especially of the international tourists. Whenever a certain place became famous, the example of Goa was cited to discourage the inflow of international tourists.

However some places such as Kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. People are now adopting themselves to the fact that tourism pays and it can be a major source of income for them.

In addition, tourism as a form of recreation has really caught on. People themselves have started traveling and are willing to travel to a place that is out of the way and exotic. While traditionally traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for adventure tourism and also visit places that might be exotic and cannot really be called hospitable. For example, now places like Leh and Lakshwadeep are mentioned in the same breath as Goa or Kashmir.

TECHNOLOGY

Although technology does not seem to be a major influence at first glance, it plays a major part in the promotion of a place. Better communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. Improved technology in the field of communication at cheaper costs has resulted in many remote and inaccessible areas of the country getting connected to the rest of the world. This connectivity has made these places visible to the world. Better communication means access to media. And that is very important if any place wants to be on the world tourist map. Similarly better transportation facilities have lead to a dramatic increase in the number of tourists visiting any particular place. The presence of an airport and the availability of frequent flights are a great convenience to any traveler.

TOURISM COMPANY: SITA ONLINE TOURISM CORPORATION(SOTC)

Established in 1949 with just five employees at an office in Cawasji Hormusji Street, Mumbai, it has grown to become one of India’s largest travel companies. By the year 1968, the Company had moved to a much bigger office at Mint Road and was also counted as one of the top ten travel agents in Mumbai, with a turnover touching Rs 25 million.

A major turning point came in 1976 when SOTC handled its first group tour to the US during the bicentennial celebrations. Within three years, SOTC had taken about 500 passengers to Europe, the US, Singapore and Japan. In 1981, came another breakthrough when SOTC Package Tours began active advertising, with the first ad hitting the newspapers.Between the years 1983 and 1995, SOTC grew by leaps and bounds. It moved to new premises at Church gate, Mumbai, installed the first computer for sales and operations, and went through a management metamorphosis with a complete restructuring of the business into autonomous Strategic Business Units (Subs) with a state-of-the-art call centre. SOTC has been fulfilling the travel needs of Indians for over five decades now. It continues to seek out new and exciting destinations to offer to outbound travelers

SOTC’s outbound business operations broadly encompass Packaged Group Tours for Indians and Individual Holidays. SOTC World Famous Tours caters to those who seek comfort in group travel. It is widely acknowledged to be the most successful package tour brand in India. Recognizing the importance of language markets, SOTC also pioneered tours conducted in Marathi and Gujarati under the SOTC brand extensions: SOTC BhramanMandal and SOTC GurjarVishwadarshan.

MARKETING MIX
PRODUCT

SOTC offers a variety of tours which includes tours for families with kids, tours for senior citizens, theme vacations like beaches and also special packages for pure vegetarian and jains.Some of its products are as follows:-

SOTC World Famous Tours

SOTC World Famous Tours is the flagship brand of SOTC, which pioneered the designing and marketing of escorted tours for cosmopolitan travelers in India. SOTC World Famous Tours has escorted over 3, 00,000 travelers across the globe for more than 30 years, to various destinations including Europe, Australia, New Zealand, USA, Africa, Mauritius, South Asia, and the Far East Being a 100% subsidiary of Kuoni Travel Holding, Switzerland – one of the world’s largest travel companies SOTC leverages the advantage of the buying power and travel services to provide customers value for- money packages. SOTC has built a reputation that it lives up to its promise to take Indians around the world, while making them feels completely at home, no matter where they are.

SOTC BhramanMandal

In 2002, SOTC BhramanMandal was launched exclusively for Maharashtrian, to cater to their specific needs and requirements. SOTC BhramanMandal offers ‘All-inclusive’ exciting package tour options to Europe, Far East, Australia and New Zealand. While designing the tours, every single need of the Maharashtrian is kept in mind – their culture, eating habits and likes and dislikesProminent features of SOTC Bhraman Mandal Europe and Australia tours are the Predeparture meeting, Travel Kit and an experienced Marathi speaking Tour Manager who accompanies them all the way from Mumbai to the destination and back. Within just five years of existence, SOTC Bhraman Mandal has become a household name amongst the Maharashtrian.

SOTC Gurjar Vishwadarshan

SOTC Gurjar Vishwadarshan was launched especially for Gujarati community residing in India, to cater to their needs of having a Pure Indian Vegetarian Meal with a Gujarati flavor, Gujarati speaking tour manager at your service right from India to India and traveling with the finest Gujarati families makes your holiday the most memorable and comfortable one. Gurjar Vishwadarshan launched in the year 2004 received an overwhelming response from the Gujarati’s staying all over India. Since then it has been scaling heights year after year today in its 4th year of existence it has become a household name for Gujarati’s and is fondly rembererd by Gujarati holiday goers, this has been possible because of all of those fellow Gujarati’s who chose to travel with us. With the new positioning of our brand “Expect More” ….in Gujarati which means “Apeksha Thi Vadhare” we assure our patrons that every time they can just expect more with SOTC.Gurjar Vishwadarshan is one of the business units of SOTC. SOTC has pioneered its position in the packaged tour segment with its unparallel expertise devised over last 50 years.

SOTC Do-it-Yourself Holidays

SOTC Do-it-Yourself Holidays caters exclusively to the needs and requirements of the discerning Free Individual Traveler. It offers a wide range of customized holidays that allows individual travelers the freedom to define their preferences of the destination, length of stay and pace of travel .Following high-quality standards, SOTC Do-it- Yourself Holidays have ensured accommodation at some of the world’s finest hotels allowing for proximity to city centre attractions such as shopping malls, pubs, cafes, restaurants and scenic delights. An individual traveler on SOTC Do-it-Yourself Holidays has the option to explore all the attractions of a single city. Or focus on all key cities of a particular country. They can even combine two to eight countries in their holiday, depending on their tastes, time and budget.

SOTC Holidays of India

SOTC Holidays of India has something for every kind of traveler – be it families, youth, students, honeymooners, groups or individuals. SOTC Holidays of India offers packages that cover every conceivable tour requirement – whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break. SOTC Holidays of India offers an opportunity to visit and explore all the splendors of India through various categories of holiday packages. SOTC Holidays of India has categorized all holiday packages into Standard, First and Deluxe Class categories.It also offers a wide range of customized holidays thereby giving individual travelers the complete freedom and flexibility to define their preference of the destination, length of stay and pace of travel

SOTC Holidays of India offers packages that cover every conceivable tour requirement; whether it is an extended vacation with the family, a paragliding spree with friends or simply a rejuvenating weekend break SOTC Holidays of India offers you an opportunity to visit and explore all the splendors of India through various categories of holiday packages:-

Classic Holidays of India are time tested popular attractions like Kashmir, Himachal, Rajasthan and Kerala those have proved their ability to completely satisfy the traveler

Fun-filled Beach Holidays offers not just sun and sand but also cool lagoons, clear waters, corals, reefs and beach resorts.

Hill Stations & Quick Getaways offer a break through a multitude of retreats at a short distance from home.

Spiritual Retreats to Rediscover Your Soul provide excursions to various spiritual and hallowed sites.

Components of Tours as a Product

Sr.No.
BENEFIT
MEANING
WITH RESPECT TO THE TRAVEL AND TOURISM INDUSTRY

1

CORE BENEFIT

The fundamental benefit or service that the customer is buying.

Traveling.

2

BASIC PRODUCT

Basic, functional attributes.

Ticketing, hotel reservation.

3

EXPECTED PRODUCT

Set of attributes/conditions the buyer normally expects.

Customer friendliness, good food.

4

AUGMENTED PRODUCT

That meets the customers desires beyond expectations.

Prompt services, comfortable and convenient trip, spectacular sights, and music.

5

POTENTIAL PRODUCT

The possible evolution to distinguish the offer.

Totally customized tour packages, A grade service at every stage.

PRICE

SOTC offers price sensitive tours like cost saver and premium tours which can be afforded by all classes. In SOTC the tours are customized that is if customer can’t afford the premium holiday he will be given the same tour but the cost will be reduced by offering him a deluxe hotel instead of a five star hotel or by offering him a non ac bus instead of a ac coach.

PLACE

Different distribution strategies are selected for Tours marketing by SOTC. There are also small agents (who have taken franchise of SOTC) spread all over the town/country who also play a role of place. SOTC act as wholesalers and also act as a retailer. The latest mode of reaching the customers is through Internet that is SOTC has its own website from where information on the tours can be procured, direct booking can be done for which the payment can be made through the credit card. SOTC also has its own offices from where booking can be done.

PROMOTION

SOTC uses electronic, print and all sorts of media as tourism is a highly promoted industry. SOTC gives printed ads in The Times of India mentioning the special tours in it with the special prices offered by them. Brochures are another form of communication provided by SOTC to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the images and positioning of the product and the organizations.

PEOPLE

SITA enjoys loyalty of its 2, 00,000 Indian customers.

PHYSICAL EVIDENCE

SOTC provides its customers with a detailed brochure of the tour they have selected, a list of things to be done before going for a holiday e.g. cooking gas switch to be turned off etc and if the customer is going for foreign tour then a list of basic words like hello, water etc in the foreign country’s language which will make it easy for the customer, this establishes value for money, product image and status, which must be matched when the product is delivered.

RURAL TOURISM

Rural tourism focuses on participating in a rural lifestyle. It can be a variant of ecotourism. Any village can be a tourist attraction, and many villagers are very hospitable. Agriculture is becoming highly mechanized and therefore requires less manual labor. This is causing economic pressure on some villages, leading to an exodus of young people to urban areas. There is however, a segment of urban population that is interested to visit the rural areas and understand their perspective. This segment has been rapidly growing in the past decade and has led to Rural tourism becoming a good business prospect. Rural tourism allows the creation of an alternative source of income in the non-agricultural sector for rural dwellers.The added income from rural tourism can contribute to the revival of lost folk art and handicrafts. It is an ideal and natural method of rural and urban economic exchange.

Scheme of Rural Tourism

Tourism growth potential can be harnessed as a strategy for Rural Development. The development of a strong platform around the concept of Rural Tourism is definitely useful for a country like India, where almost 74% of the population resides in its 7 million villages. Across the world the trends of industrialization and development have had an urban centric approach. Alongside, the stresses of Urban lifestyles have led to a “counter urbanization” syndrome. This has led to growing interest in the rural areas. At the same time this trend of urbanization has led to falling income levels, lesser job opportunities in the total areas leading to an urbanization syndrome in the rural areas. Rural Tourism is one of the few activities which can provide a solution to these problems. Besides, there are other factors which are shifting the trend towards rural tourism like increasing levels of awareness, growing interest in heritage and culture and improved accessibility, and environmental consciousness. In the developed countries, this has resulted in a new style of tourism of visiting village settings to experience and live a relaxed and healthy life

Literature on tourism and destination marketing research is rich with key themes which seek to explain why people travel and select specific destinations. Many of the studies are based on the theory of pull and push motivations. The theory posits that tourists are pushed by internal desires or emotional factors to travel as well as pulled by external factors in the form of the attributes of various destinations. While many studies have been conducted to investigate the various types of destination attributes, there has been a lack of research on the religious attributes of the destination and its impact on tourist’s choice as well as satisfaction. Moreover, when it comes to Islamic religious attributes, the lack of study is more noticeable and profound. The objective of this study is to investigate whether there exists a basis for segmenting the tourism market by Islamic religious attributes through studying the views and opinions of tourists visiting Malaysia.

2. Significance of the Study

The Muslim tourism segment may consider a target for destination marketers. Assuming religion represents one of important factors in the decision-making process in regards to travel destinations(Collins & Tisdell, 2002), it is important to ensure that Islamic religious attributes are available in those destinations. This may lead to tourist satisfaction as well as encourage multiple return visits. Muslims are well-ordered to follow Islamic teachings which directly and indirectly impact on their decisions concerning leisure and travel plans (Hamira & Henderson, 2009). In this regard plans to market destinations for Muslim tourists should be guided by Shariah (Islamic code of life) rules specifically those that pertain to tourism activities.

In recent years, it has been observed that there is a growing interest in new tourism concepts such as “Islamic tourism.” Another concept is “Halal hospitality” which is akin to the concept of “Halal food”, a concept already recognized in many countries including those in the Middle East(WTM, 2007). Newspaper articles consider this to be a new phenomenon in the United Arab Emirates and Middle Eastern countries. Halal tourism has attracted many tour packages entirely based on what they term ‘Islamic culture’ (Javed, 2007) which is defined as a type of religious tourism which is in conformity with Islamic teachings regarding behaviourisms, dress, conduct and diet (WTM, 2007). Heyer’s (2008) elaboration on the rapid large-scale development of ‘Shariah-compliant hotels’ is but another expression of the existing trends towards increased Islamisation of activities which in the past focused more on banking, insurance and finance. Thus, tourism is generally encouraged by Islamic law as following the religion entails etiquettes, mannerisms, rules and regulations regarding conduct, dress, food, and prayer(Hamira & Henderson, 2009).

Halal tourism operators target families from the Gulf region known for their conservative interpretation of the teachings of Islamic Shariah. The World Travel Market Report (2007) shows that Halal tourism has the potential to develop into a resilient market. Promising market potentialities cause it to be targeted by industry operators and market researchers. Focus on this market is further increased by a forecasted increase in growth whereby tourist income for the Middle East is expected to grow 108% to a staggering US$ 51 billion while domestic tourism is expected to grow by 82% to reach US$24 Billion by 2011. Much of the forecasted growth is due to increased numbers of Middle Eastern tourists which underlines the need for tailored Halal tourist packages offering services catering to Muslim needs.

The negative side of western tourism causing Halal tourism to be increasingly popular among Muslims is issues which have a negative impact on the Muslim community such as the consumption of alcohol, prostitution, inappropriate dressing, kissing in public and open affection between sexes in public (Sindiga, 1996). However, non-Muslim countries continue to attract Muslim families, including those from the Gulf region interested in visiting attractions such as nature parks as these comply with Islamic Shariah. In response to this the current study is an attempt to greater understand the new concept of ‘Halal tourism’.

Muslims constitute a global market of 1.82 billion potential customers (Muslim population worldwide, 2009). Islamic religious attributes are bound to be very important considerations when a Muslim decides to travel abroad. Given the potential problems expected from non-Halal tourism, the Muslim tourist may decide not to travel to a particular destination due to the absence of these attributes. According to Uysal et al. (2008, p. 413) a study of a the particular attributes of any given destination would provide clues and/or insights that destination marketers could use in developing and promoting their tourism destinations. Bogari et al.(2004) claim that destination attributes and issues pertaining to Islamic culture were not sufficiently covered by researchers. In effect, the study focuses in the Islamic attributes of destinations which could be used as a base to attract Muslim tourists in destination marketing programs.

The marketing of Islamic destinations is certainly not an easy task(Henderson, 2008b) because of the variance between the demands of western tourists and the Islamic teachings. Therefore, exploring Islamic attributes may help destination marketers to tailor products and services that satisfy Muslim tourists in addition to using them in promotional programs. In addition, this study attempts to offer insights into the tourism expectations and experiences of followers of the Islamic religion. Muslim tourists could be influenced by religious aspects in their destination choice. Thus, the objective of this study is to explore which Islamic attributes of destinations such as worship facilities and Halal food that may be important to the Muslim tourist; especially in the Muslim world.

3. Literature review:

Religion plays a large influence on many people’s behaviour as customers (Essoo & Dibb, 2004). In the context of tourism, religion may influence the choice of destination and tourists’ product preferences(Adi & Ron, 2008). According to Poria et al. (2003), the effects of religious belief on behaviour come from two main sources First, there are the yes and no’s, do’s and don’ts of a person’s religion which are to be observed. Examples consist of the religious rules prohibiting Muslims from consuming pork, or Hindus from consuming beef. The second means by which behaviour is influenced is the fact that religion shapes the culture, attitudes and values of society. This is supported by Grigg (1995) whose research provides evidence on the influence of religion and religiosity on dietary habits. Further support is found in Essoo and Dibb (2004) who demonstrated the influence of religion on consumer behaviour by identifying the differences in consumer spending between Muslims and Hindus.

Although the relationship between tourism and religion has been addressed in the literature on tourism, there remains a shortage of theoretical publications in the area of tourism in the context of Islam. Religion and religiosity are acknowledged factors influencing behaviour according to various social settings. In spite of this widely acknowledged fact, research that explores relationships between religion, behaviour and tourist destination choice remains highly limited (Adi, 2006; Adi & Ron, 2008; Din, 1989; Fleischer, 2000; Howe, 2001; Poria et al., 2003; Rinschede, 1992). Din (1989) argues that social scientists have tended to overlook the importance of religion in tourism studies. Its importance is emphasized by Adi and Ron (2008) who underline the general importance of the relationship between tourism and religion. For this reason Heo et al. (2004) recommend more related studies that identify and discuss special tourist requirements and preferences. Although neglecting to mention religion specifically, Fang et al. (2008) conclude that tourists are more likely to choose destinations believed to best satisfy tourist ‘push’ needs and preferred destination attributes.

Studies conducted in this area include Adi (2006) which investigates the religious needs of Christian tourist in the hospitality industry and Fleischer and Nitzav (1995) which investigates the religious needs of Christian pilgrims in the tourism industry. Likewise Hoffmann (1994 Cited in Adi 2006) conducts research on Jewish ultra-orthodox tourism segment. In addition to this, some papers complement the aforementioned research by discussing the religious requirements in the tourism food sector. For example, Dugan (1994) presents the religious necessities in food supply for Muslim, Christian, Jews, Hindus and Buddhists.

When it comes to the relationship between tourism and religion, particularly Islam, the lack of literature is more obvious especially regarding Islamic religious attributes and their impact on tourist needs in general and Muslim tourists in particular. The only studies available typically focus only on the needs of Muslim pilgrims’ (when they visit Makkah for the Haj) rather than the needs of tourists. However, Adi and Ron (2008) forecast increased number of religiously-minded tourists who join dynamic multipurpose packages especially from developing countries many of which are Muslim countries.

3.1 Religious Attributes

What does the term `religious attributes’ of destinations really mean? There are many aspects that can constitute `religious attributes’ of destinations. The following sections present the literature on the matter:

3.1.1 Hotels Meeting the Religious Needs of Patrons

Additional religious services and provisions in hotels may result in attracting new markets and improved hotel rates (Adi, 2006). A study in Israel conducted by Mansfeld et al. (2000) recommended placing ‘Makkah stickers’ or `Qibla stickers’ (stickers with ornamented arrows pointing towards the city of Makkah in Saudi Arabia for prayer directions) as well as placing a copy of the Quran in every room occupied by Muslim visitors. Din (1989) found that hotels in Kuantan, Malaysia catered to Muslim needs in the hospitality industry by requiring first class hotels to provide prayer rooms fully equipped with prayer mats, the Quran, Suruh Yasin, and Tasbih, plus Qibla stickers.

Adi (2006) presented a number of suggestions to improve the religion-friendliness of hotels. The suggestions begin by simply providing a bible in hotel rooms along with providing information on religious activities and institutions. This keeps religiously-minded tourists in direct contact with scripture and informed of available services. Employment of Christian workers creates a religious atmosphere in the hotel. The hotel may choose to organize its own religious activities. It should provide a place of worship within the hotel itself or be in close proximity to a church. Christian symbols within a hotel such as a cross and images of the Virgin Mary help to provide a religious environment and decor.

Religious values play a role in catering to religious needs. For example, Collins-Kreiner & Kliot (2000) hypothesizes the Protestants’ need for a bible in hotel rooms based on their belief in direct communication with God. Fleischer (2000) compares between Catholic and Protestant pilgrims in terms of the peculiarities of their tourist needs. The study reveals that Protestants appreciate religious symbols and opt for religious-sensitive tourist packages more so than Catholics. Moreover, Adi (2006) recommended catering to such Christian needs in the hotel room as that may increase the satisfaction of Christian tourists

Empirical studies on the impact of catering to Islamic religious needs and the level of satisfaction of Muslim tourists are very few. Some of the studies discuss services of this nature which may include Muslim religious restrictions such as activities of vice and forbidden entry for unmarried couples (Din, 1989; Hamira & Henderson, 2009; Henderson, 2003) . They also found that hotels may provide religious information such as the location of nearby mosques or prayer times and nearby Halal restaurants (Henderson, 2003). Furthermore, as Muslims avoid free mixing between the sexes, hotels could offer separate swimming pools and recreational facilities (Al-hamarneh & steiner, 2004; Henderson, 2003; Timothy & Iverson, 2006). Hashim et al. (2007) suggest that providing Halal food on the hotel menu or information on nearby Halal restaurants would enhance the holiday experience. Timothy and Iverson (2006) also suggest that hotels should educate their staff on cross-cultural communication to allow them to treat Muslim tourists with respect and consider recruiting religious staff.

3.1.2 Places of worship

The five daily prayers are of great importance to practicing Muslims. Therefore, the mosque (a Muslim house of worship) or prayer room is considered to be one of the most crucial facilities for Muslims (Al-hamarneh & steiner, 2004; Syed, 2001). Adi (2006) suggests that proximity to a mosque may influence Muslim tourist preferences when making hotel reservations. Mohsin (2005) conducted a study to assess Peninsular Malaysians attitude towards choosing the Northern Territory of Australia for a holiday as a tourism destination and found that Muslim respondents were concerned about the availability of mosques.

Mohsin and Ryan (1997) recommend that the ease of access to Islamic services are important when they explored the attitudes of Malaysian and Indonesian business people towards the possibility of holidaying in Australia. It is also suggested that Middle Eastern countries take concrete steps to develop Halal tourism internally by having prayer rooms at tourism sites (WTM, 2007). Syed (2001) also suggested that the availability of mosques at tourist destinations may increase satisfaction levels. The mosque itself may be considered as a tourist attraction if they are unique and outstanding (Henderson, 2003).

3.1.3 Availability of Halal food

Dugan (1994) presented findings on food service requirements by Jews, Muslims, Hindus, Buddhists and Christians. Evidence from Brown’s (1996) ethnographic study shows the influence of religious prohibitions on determining their expectations regarding services provided by a hotel such as appropriate ingredient choice and preparation. This is further supported by Williams (2002) who identified the role of the Jewish Kashrus (Jewish religious requirements) in prohibiting certain foods and regulating compliance procedures for food preparation.

For Muslims, the issue is centred on the concept of Halalness. Halal food refers to food that can be lawfully consumed when conditions for Islamic food preparation are met. Food that is unlawful to Muslims includes pork, pork-derived foods including lard and bacon and meat and other products from carnivorous animals or those that feed on carrion. Consumption of any food or drinks with alcoholic content is also prohibited (Dugan, 1994). One important distinguishing feature of the Halal label is that animals must be slaughtered in the name of Allah (God).

There are many studies that show the importance of the availability of Halal food to Muslims in choosing their tourist destinations (Adi, 2006; Adi & Ron, 2008; Mohsin, 2005; Mohsin & Ryan, 1997; Syed, 2001). The importance of this to some Muslims is reflected by the fact that even when served halal food, many are still concerned over whether the food is genuinely halal. Henderson (2003) found that some firms in the Western tourism industry are concerned over this issue. Some Muslims ask about the ingredients the meal is made up of because pork and alcohol in all its many forms are forbidden. Therefore, meals which are provided to Muslim have to be alcohol and pork-free and the utensils have to be uncontaminated by these two elements (Dugan, 1994).

Catering to Muslim tourists’ needs in terms of providing Halal food in any particular destination may increase their overall satisfaction and loyalty. Mansfeld et al. (2000) gives explicit recommendations for providing food which complies with Shariah laws. Therefore, a caterer who is aware on how to satisfy Muslims or who offers religious groups’ dietary needs will attract more Muslim customers (Dugan, 1994).

3.1.4 Banning of Alcohol Consumption and Gambling

According to Islamic Shariah, it is completely forbidden for Muslims to drink or sell alcohol. Muslims are also prohibited from gambling and being involved in the gambling industry. It is stated in Al-Quran: “O ye who believe! Intoxicants and gambling, (dedication of) stones, and (divination by) arrows, are an abomination,- of Satan’s handwork: eschew such (abomination), that ye may prosper.” (Al-Quran, 5:90). Moreover the Prophet of Islam, Muhammad (peace be upon him) said: “Alcohol is the mother of all evils and it is the most shameful of evils.” (Ibn Majah, 2004). It is also not permissible for Muslims to visit places where alcohol is consumed and gambling is practiced (Al-hamarneh & steiner, 2004; Din, 1989; Hamira & Henderson, 2009; Hashim et al., 2007; Henderson, 2003, 2008a).

Muslim countries like Saudi Arabia implement very restrictive policies related to gambling and the sale of alcohol. Other countries are not so restrictive. For example, in most states in Malaysia alcohol is freely available although Muslims can be punished for drinking in public.

3.1.5 Sexual permissiveness

The Shariah expressly forbids Muslims from engaging in fornication or adultery. Activities deemed conducive to sexual permissiveness are not allowed to take place in public. This is based on many verses in The Holy Quran including like: “Nor come nigh to adultery: for it is a shameful (deed) and an evil, opening the road (to other evils).” (Al-Quran, 17: 32).

Many Muslim scholars take the view that it is Haram or not permissible to visit, for the sake of tourism, places where sexual permissiveness is rampant. Their opinion is based on the principle that Islam came to impede all roads leading to evil. If some tourist activities result in the facilitation or the commission of sins then it is not permissible for Muslims to be involved in such tourist activities (Rasma, 2008).

Most Muslim countries including Malaysia prohibit adultery. The Malaysian licensing policy prohibits prostitution and behaviours such as public or indecent displays of affection (Din, 1989; Hamira & Henderson, 2009; Henderson, 2003, 2008a). Moreover, in some Malaysian towns municipal enactments for lodging establishments explicitly forbid unmarried couples from being in close proximity (Din, 1989). Many Muslim authorities frown on tourism in general due to the perception that tourism is associated with sexual permissiveness (Din, 1989). Therefore, some Muslim scholars prohibit sex tourism as practiced by some Arab Muslims from the Middle East in travelling to Europe or Bangkok (Din, 1989).

What is more, using sexually provocative images in marketing tourist destinations to Muslim customers is also frowned upon. According to Shariah, promotion techniques must not use sexual appeal in international marketing (Mohammad et al., 2001). Female images are therefore not featured in tourism promotion in some Malaysian states like Terengganu (Henderson, 2003). Mohsin (2005) is of the opinion that the use of sexually provocative images of bikini-clad girls to promote a destination will not attract Muslim tourists.

3.1.6 Dress code

According to Shariah Muslim women must not expose their hair and body. The Holy Quran states: “O Prophet, tell your wives and daughters and the believing women to draw their outer garments around them (when they go out or are among men). That is better in order that they may be known (to be Muslims) and not annoyedaˆ¦” (Al-Quran, , 33: 59) Men are supposed to cover their thighs (Timothy & Iverson, 2006).

In deciding tour destinations, Muslims look at the local dress codes in that particular region of the world being considered. Such considerations are to gauge the level of conformity to Islamic dress norms in order to determine if they will or will not be comfortable visiting that particular destination. This is particularly so for Arab tourists who have to observe strict dress codes in their native countries and prefer not to expose themselves and families to environments that may threaten their sense of proper dressing.

Hashim et al (2007) demonstrates the Malaysian Tourist Board’s awareness of Islamic dress sensitivities by restricting their marketing campaigns to present only traditional Malay Muslim dress codes. Women with headscarves and men wearing Songkoks-a black rimless hat worn by Malay men usually for praying-were depicted on advertising billboards and home pages. Some conservative Malaysian states enforce appropriate dress norms prohibiting people from disturbing cultural norms by wearing revealing clothes such as bikinis. Furthermore, western tourists are expected to adorn the Islamic attire when visiting religious places like mosques (Henderson, 2003).

Hamira and Henderson (2009) claim that Shariah laws prohibit improper dressing. Al-Hamarneh and Seiner (2004) assert that considerations of the religious conservatism of any particular region including prescribed dress codes should be respected. Such cultural considerations are expected more so of tourism operators in all aspects of the tourism industry as they are interacting directly and regularly with foreign tourists (Adi & Ron, 2008).

4. Methodology

The objective of this study is to explore Islamic religious attributes which may be important to Muslim travellers. In order to achieve this objective, focus group discussions (FGD) were conducted and were followed up with interviews to explore opinions and travel experiences in more depth. This combination of the FGD and the interviews has its advantages. Firstly, in identifying a range of Islamic religious attributes from the FGD. Secondly, to explore in depth, by conducting interviews using a relatively wide range of participants in order to discover more Islamic attributes and to check the conclusions with the FGD (Morgan, 1996). The FGD and the interviews are research techniques pertaining to qualitative research (Myers, 2009, p. 121). The aim of the FGD is to collect information through group interaction but the interview is considered an opportunity to discover new information from individuals (Cavana, Delahaye, & Sekaran, 2008, p. 138). Semi-structured questions were designed in this study for the purpose of conducting interviews and focus group discussions.

Semi-structured questions were designed in this study for the purpose of conducting interviews and focus group discussions. The participants were asked about the Islamic attributes they would require when traveling in a Muslim country or a non Muslim country. They were then asked specifically about these attributes when visiting Muslim countries. This was followed by probing questions that sought to explore in detail specific attributes generated from FGDs such as access to worship facilities, availability of Halal food, services provided in hotels, and morality.

Two focus group discussions were conducted in June 2009. The participants of these focus groups were international PhD students currently studying in Malaysia in different areas of research. The participants of FGD1 consisted of eight males from Saudi Arabia, Palestine, Mauritania, Oman, Jordan, Yemen, Egypt and Sudan. The duration of FGD1 was one and a half hours. The participants of FGD 2 consisted of seven females from Egypt, Libya, Yemen, Nigeria, Oman, Turkey, and Algeria. The duration of FGD 2 was one hour and fifteen minutes and the participants did not agree to record the session digitally. The reason for this may be culturally related. All FGD participants had overseas travel experience for various purposes such as tourism, business, learning, and visiting friends.

A total of 53 interviews were conducted with tourists in Kuala Lumpur, the capital city of Malaysia; 27 interviews in July 2009 and 26 interviews in October 2009. Thirty of the interviewees were males, and twenty three were females. Only those who professed to be Muslims were selected. 38 tourists did not accept to be interviewed. The duration of most interviews was between 35 to 45 minutes. 41 interviews were recorded digitally. The rest were unable to be recorded due to objections from the interviewees who were females from the Middle East. The interviewer transcribed both the FGDs as well as all interviews session. Some interviewees from the Middle East preferred to communicate in Arabic while the rest were conducted in English. The interviewer adopted the probing technique during the session to encourage the participants to provide more details. Some demographic information was also gathered. The digital recording of the interviews was changed into text. The data was organized for easy categorization and systematic data analysis.

5. Findings

Results of the analysis were categorized into two major aspects which are tangible and intangible. The tangible aspect consists of Islamic religious facilities such as, worship facilities, Halal food, and Islamic recreational facilities:

(A)Prayer facilities:

Mosque: all interviewees were concerned about the availability of Mosques (Masjid) or prayer rooms for their tourist destination. Easy access to a mosque/prayer room is considered a vital aspect for Muslim tourists and should not be ignored by tourism planning but should be considered a necessary service. This can be shown in the following response:

“aˆ¦ Masjid or prayer room must be available in the streets and public places. In other words, a prayer room should be available in all places which I may visit in the destination such as hotels, shopping malls, and airports. Even in the airplane to destination, it should allocate a place for prayer.” (FGD No. 1)

“Masjid is available in most of the places in the destination during my journey, in shopping malls, highwaysaˆ¦ and of course in the hotel.” (Int. No.1, USA)

It is noticed from the previous responses that Muslim tourists expect easy access to a Masjid and/or prayer room to be a primary requirement in Muslim countries. They also highlighted that they expect to find prayer facilities readily accessible during tourist activities.

Islamic call (Azan) for prayer: 31 interviewees were concerned about the need for public calling of the Azan (prayer time). Destination operators should provide information about Muslim prayer times. 17 interviewees recommended a prayer time call during flights or journeys to their destinations, hotels, shopping malls and parks. Some also requested prayer time clocks (which ring with each prayer time) or a prayer timetable in the hotel room.

“aˆ¦ I need also Prayer time call in the airplane, airport, hotel or at least prayer timetable in hotel room.” (Int.No.2, Canada)

“aˆ¦ Prayer timetable or Alfajr clock (Prayer time clock brand) should be found in hotel room.” (Int.No.4, Saudi Arabia).

In Islam Muslims should pray five times daily but they are permitted to merge and shorten the prayers while travelling according to the length of the journey and other Islamic legal rules and requirements. As such, the participants preferred that they be reminded about prayer times in order that they may choose between praying at the usual times or merge them.

Quran and Qiblah direction pointer: all interviewees emphasized the importance of the provision of Qurans and Qiblah direction pointers in hotel rooms. Some proposed that one or two simple Islamic books to be provided in hotel rooms and in aeroplane seat pockets.

” aˆ¦It will be fine if I find Quran book in hotel room, some Islamic leaflets in the airplane seat pocket, Makkah direction pointer, Sejadda for prayer (prayer mat), simple Islamic book in hotel room aˆ¦” (FGD No. 1)

“aˆ¦I need the Holy Quran book inside the hotel room, some Islamic books which I can read; I don’t want any statue or sculpture like a Buddhist. I found that in India when I was there. Also direction of Qibla is important to meaˆ¦” (Int. No.15, Djibouti)

The Quran is the Holy book for Muslims. Muslims are requested to read the Holy Quran. Although most of Muslims have a soft copy of the Quran on their hand phones, the hard copy represents the preferable option for reading. Moreover, the Makkah direction pointer is a basic demand of Muslims as they perform their prayers elsewhere even though in public places. Some hotel industry practitioners, even some hotels in non Muslim countries, already provide Qiblah pointers inside their hotel rooms but some participants report that they did not find it in some hotels in Muslim countries.

Muslim toilets: 36 interviewees who have travelled to western destinations complained about the bath room because they could not perform ablution (Muslim mandatory washing before performing prayers). There is no such facility inside airport toilets and hotels. Therefore, they requested Muslim toilets to be provided in all airports, hotels and public places.

“Muslim toilet is very important in airport because the regular toilets provide only tissue. As Muslims, we need water supply inside the toilet. It should be found in public places because in the hotel you can find water but in public it is difficult.” (Int. No.14, Thailand)

“I will be very happy if I find aˆ¦ and Bidet in the bathroom” (Int. No.2, Canada).

Muslim followers must do ablution before prayers. They are required to clean themselves with water when using the toilet. Some countries adopt modern toilet designs which do not enable users to wash themselves using water; providing only tissue. However, some Muslim countries have modified this style and have adopted a Muslim design for their bathrooms which provide water. From previous participant responses, they find it satisfying when water facilities are made available in toilets.

(B)Halal food: all interviewees reported that the availability of Halal food is a basic need for all destinations. It is noticed that all interviewees need Halal meals in flights to their destination. Moreover, they recommended that hotels and restaurants in the destination should provide Halal meals free from pork and alcohol. Some of them were worried about the preparation of Halal meals. Seven interviewees highlighted that the kitchen should also be Halal which means that Halal and non-Halal foods cannot be cooked together in the same kitchen and with the same utensils.

“aˆ¦ I need Halal food to be available. The mosques and Halal food restaurants, mostly they are close to each other. Last week, I was in Cambodia. Once I was close to the Masjid I found Halal restaurants.” (Int. No.13, Turkey)

“aˆ¦ Some hotels, in breakfast they provide Halal food and non-Halal food from the same kitchen that means the Halal and non Halal food are cooked together using the same facilities. I need Halal kitchen. Moreover, some Arabian tourists can’t read English so they eat non-Halal meat.” (Int. No.12, Egypt)

The travel experiences of some participants highlighted that easy to find Halal food is one factor in choosing the destination for their vacation. Some are very sensitive regarding Halal issues and go well beyond Halal labels. They want to make sure the meat and ingredients used in cooking are Halal and do this by usually asking the service providers. On top of this they also ask whether the kitchen is Halal or not. In response to this some hotels in Malaysia allocate two kitchens; Halal and non-Halal.

(C)Islamic entertainment: 39 interviewees gave high priority to finding Islamic-oriented recreations s