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How will you segment the inbound tourism market of India?

What is Market Segmentation?


Market segmentation is nothing however dividing the entire consumer market into companies to have the ability to talk with them and provide their precise needs.


Smith (1956) introduced the concept of marketplace segmentation as a strategic tool. He stated that “Market segmentation (…) can be considered as a heterogeneous marketplace (one characterized with the aid of divergent demand) as a number of smaller homogeneous markets”.


Why Segment the Tourism Market?

Every visitor being different, the tourism enterprise possibly isn't always able to satisfying each individual’s need. This is the foundation of segmenting the total market.


While all vacationers are different, a number of them are just like each other. Marketing force of a tourism business institution the tourists into numerous segments that categorize the same as well as wonderful members. Market segmentation can be applicable to any of the tourism supply components and provides advantages as given below −


  • It facilitates to apprehend precise needs of the consumers.

  • It facilitates to allocate marketing expenses efficiently.

  • It allows to create powerful marketing techniques to target unique marketplace segment.


Inbound Tourism


Despite introduction of the eTV and a slew of initiatives by the authorities, inbound tourism is but to reap the desired end result


Industry and authorities do now not seem to be at the equal wavelength on the issue of performance of inbound tourism. No doubt, the government is avidly pushing forward diverse projects/schemes to make the country extra inviting and hospitable for inbound travellers. The measures include the introduction of e Tourist Visas to a hundred and fifty countries, welcome package on airports, Swachch Bharat Mission, Swadesh Darshan (Integrated Development of Theme Based Tourist Circuits), PRASAD (National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive), HRIDAY (Heritage City Development and Augmentation Yojana), helpline, and Buddhist Conclave among others. But many stuff are yet to be accomplished to push the growth in foreign tourist arrivals.



These programmes need to be implemented on the ground as inbound industry isn't always glad with the pace of the growth in inbound segment. While authorities is pretty bullish on the performance of inbound segment, industry wants government to take some concrete steps to see result on the floor. Union Tourism Minister (I/C) Mahesh Sharma has emphatically stated at numerous industry forums that India has witnessed a boom of 5 to 40 according to cent in footfall of tourists from the nations in which Modi has visited in the remaining two years, besides Russia. However, the government facts suggest that foreign traveller arrivals witnessed simply a four.4 per cent increase to simply over 8 million in 2015. The good news is that inbound tourism has witnessed 10 in line with cent growth within the first seven months of this calendar year. T3 connects to a number of the players of the industry to understand the ground reality.


Performance of the inbound tourism

Sunirmol Ghosh, Director, Indo Asia Leisure Services, termed the overall performance of the last inbound season as ‘disaster’. “I think disaster is the one word, which describes the closing inbound season for India.The 10 in line with cent growth in numbers inside the inbound has typically been performed by site visitors from Bangladesh and Sri Lanka who hardly use our services. Or the increment is from the African nations and Afghanistan. These site visitors come to India in particular for clinical treatment. It does not help our business,” says Ghosh. Sarab Jit Singh, Vice Chairman, FAITH and MD, Travelite India opines that the remaining inbound tourism season for excursion operators and resorts alike had now not been very encouraging as maximum of the establishments have proven decline or no boom. “The coming season seems to be slightly higher than remaining season, which might not be enough enough,” Singh adds. Aashish Gupta, Founder, StrategyPluto and Consulting CEO, Federation of Associations in Indian Tourism & Hospitality (FAITH) says that the closing inbound season witnessed very marginal boom in numbers from all markets and the same fashion may additionally hold in coming season as well. Bharat Bhushan Atree, Managing Director, Caper Travel, additionally has the similar opinion when he says that the final inbound season become slow because of the slowdown in economy and international political problems. “The coming wintry weather season seems relatively better as financial system is improving but we do now not foresee a huge jump in traffic and revenue,” Atree provides. Pronab Sarkar, President, Indian Association of Tour Operators, feels that inbound has been a challenge until now, nothing unique to mention. “We controlled to move 8 million tourist arrival mark, but in case you see the worldwide trends, India’s overall performance as inbound destination is not bad,” Sarkar says and provides that the 12 months is anticipated to cease with a growth of 15 in keeping with cent positively.


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