Himachal tourismhptdc ltd

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SCHOOL OF MANAGEMENT

FOR THE PARTIAL FULFILLMENT OF THE
REQUIREMENT
FOR THE AWARD OF
DEGREE IN MANAGEMENT IN
MASTERS OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF: SUBMITTED BY:

MBA 2014-16
SUMMER INTETRNSHIP REPORT ON
ANALYSIS OF CONSUMER BEHAVIOR AND
PERCEPTION TOWARDS TOURISM PRODUCTS

HIMACHAL PRADESH TOURISM DEVELOPMENT
CORPORATION LIMITED

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ACKNOWLEDGEMENT

I would like to express my gratitude to Himachal Pradesh Tourism Development Corporation Ltd.,
Shimla for giving me the opportunity to undertake my Industrial Training program in the
Corporation which gave me an insight into the working of the oragnization as a whole.

I am very grateful to Mr.Vijay Sharma , DGM , HPTDC Ltd. for giving me an opportunity to
undertake my Industrial Training program at HPTDC.

I owe my sincere thanks and heartfelt gratitude to Mr Accounts Officer, Finance
and Accounts section who has been instrumental in the successful completion of this project. I am
thankful for his guidance and constant supervision for providing necessary information regarding
the successful completion of the project. I would like to express my gratitude towards employees of
HPTDC Ltd. for their kind co-operation and encouragement. Their contribution gave me valuable
insights into this project and immense knowledge of the area.

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DECLARATION

I , student of School of Management, hereby declare that I have completed the project on
“Analysis of Consumer Behavior and Perception towards Tourism Products” in Partial
Fulfillment of the Requirements for the Degree in Master of Business Administration
Session (2014-16). The information submitted is true and original to the best of my
knowledge.

Place: Shimla
Date:

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PREFACE

The training at H.P. Tourism Development Corporation Limited involved the day to day working at
the corporation. This project helped me to get the deeper understanding of the process of Marketing
Analysis and how decisions are taken to strengthen the position in tourism industry.

Main objective in undertaking this project is to supplement academic knowledge with absolute
practical exposure to day to day functions of the corporation.

“Analysis of Consumer Perception and Behavior towards Tourism Products” which is the topic of
my project report refers to an assessment of the perception and consumers behavior regarding
tourism products. The study of consumer behavior is the most important factor for marketing of
any goods and services. The consumer behavior suggest how individual, groups and organization
select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and wants.
It also clues for improving or introducing products or services, setting price, devising channels etc.

The study would benefit the corporation in a way of determine the key elements of competitive
market structure and their potential impact. One strategic marketing tool capable of generating
competitive advantage is market segmentation of visitors to develop and promote the tourism
products.
This study aims to further draw conclusions and implications for next round of the marketing
planning process to accelerate the development.

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TABLE OF CONTENT
SR.
NO.

TITLE
PAGE
NO.

1.
1.1
1.2
1.3
1.4

2.
2.1
2.2
2.3
2.4

3.
3.1
3.2
3.3
3.4

4.
5.
6.
7.
8.
9.

INTRODUCTION
Company Profile
Organizational structure
SWOT Analysis
Objectives of the study

LITERATURE REVIEW
Tourist behavior literature review
Introduction to tourism products
criteria
Tourist Behavior domains

RESEARCH METHODOLOGY
Research design
Sample design
Data collection methods
Data Analysis and Interpretation

Conclusion
Recommendations
Limitations
Bibliography
Appendix
Questionnaire

1 to 25
1-5
7
21
23

26 to 47
26-30
31-38
39-40
41-44

49 to 48
48
48
49
50-72

73
74
75
76
77-78
79-83

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Executive Summary

Tourism is very important economic activity for Himachal Pradesh. It contributes to both, the
domestic gross product and employment of the state. It is also an important contributor to the state
government’s finances. Tourism market is unique. Consumer behaviour involves certain decisions,
activities, ideas or experiences that satisfy consumer needs and wants .It is concerned with all
activities directly involved in obtaining, consuming and disposing of products and services. The
tourist’s perception and expectations includes the choice of selection of a destination, the social and
psychological influences on individual travel behavior.

The objective of the project report is to develop a conceptual framework analyzing the dominant
cultural values and the processes underlying the influence of these values in various domains of
tourist behaviors. Based on this analysis, three categories of tourist behaviors are identified. These
three categories are labeled as Social Interaction Driven Travel Behavior, Risk Tendencies Driven
Travel Behaviors, and Collectivity Orientation Driven Travel Behaviors.

The purpose of this research is to analyze the tourist’s behavior and perception in the choice of
selecting a destination, attractions, activities and availing of tourism product/services under the
perspective of Himachal Pradesh tourism environment. The results will help the management in
knowing that Tourism market has several segments whose members have distinctive needs and
preferences. Visitors can be put into groups with similar and identifiable characteristics.

Travel offerings appeal more to some segments than others. Tourism organizations can be more
effective in their marketing by developing specific offers for specific market segments. The
intangible nature of tourism services is that the visitor’s travel experiences exist only in memory
after the trip is over.

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CHAPTER -1
INTRODUCTION

1.1 COMPANY PROFILE
The Himachal Pradesh Tourism Development Corporation Limited was formed in
September, 1972 as an undertaking of the government of Himachal Pradesh under the
companies act, 1956. HPTDC Ltd. is a state government run organization. It is a premier
organization of Himachal Pradesh operating in tourism sector, having its registered office
at Ritz Annexe, Shimla-171001. It provides a complete package of tourism services,
including catering, conferencing, sports activities, accommodation and transport facilities
besides corporation is also running hotels, circuit houses, restaurants and cafes at various
places for tourists. In addition, corporation is engaged in production, distribution and sales
tourist publicity literature and providing entertainment and duty free shopping facilities to
the tourists.
VISION:
To become one of the finest and leading service providers in the Hospitality Sector.
MISSION:
To expand quality tourism infrastructure in the State and outside, in order to provide world
class facilities to the tourists, where guests can enjoy, relax and spend memorable time.
OBJECTIVE:
The objectives are formulated to agree with the present development program and
complement to the broad goals of Tourism development in Himachal Pradesh, such as,
judicious use of natural resources, economic benefit to the region, full employment, urban
revitalization balanced growth of areas, preservation of heritage resources, penetration in
the new find resources of tourism such as apple blossom and improved goodwill.

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The objectives are as follows:
 To improve and upgrade existing facilities in HPTDC units.
 To modernize and upgrade existing facilities in HPTDC to meet out demands of
tourists.
 To adopt modern HRD techniques to meet the growing demands of quality human
resource.
 To adopt modern marketing facilities for enhancing the business by developing
attractive site based packages.
 To provide best quality Food and services including Himachali Cuisines to our guests.
 Adopt use of use of latest IT techniques to increase efficiency and delivery services.
 To achieve maximum growth and profits to make HPTDC self sustainable.
 Construct run and maintain tourist information centers and main centers in and outside
the state within the country.
 Construct, Lease out, take on lease, run and maintain tourist bungalows, tourist inns,
circuit houses, hotels and cafeterias.
 To promote culture, fairs, temples, tourist attractions, cuisines of the state.
 The prime objective has been to open new areas which other companies are not
interested in like- Rohru, Khada Pathar etc.
 Lastly, to encourage private sector participation in tourism and create employment in
the state

GOALS:
 Judicious use of natural resources.
 Economic benefit to the region.
 Generation of employment.
 Urban revitalization.
 Balanced growth of the area.
 Preservation and development of the heritage resources.
 Penetration in the new resources of tourism such as apple blossom and improved
goodwill.
HPTDC has taken tremendous steps to achieve these goals.

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HPTDC role in promotion of tourism:
 Official host of the government.
 Prime mover after without advantage social mandate.
 Dispersal of Tourism Expansion
 Facilitated tourist during their travel and visits within the state.
 Brand Name for safe secure stay.
 Contribution to state revenue.
 Generate employment.

PRODUCTS AND SERVICIES
HPTDC Ltd offers complete package of tourism services including:
Accommodation, Catering, Transport, Conferencing, Sports activities and Local
Sightseeing
Special Offers:
 Monsoon/Winter Discount
 Trekking Packages for Students
 Karwachauth Packages for Ladies
 X-Mas/New Year Packages at following locations:
The Palace Hotel Chail Hotel Holiday Home, Shimla
Hotel Pinewood, Barog Manali Complex
Hotel Peterhof, Shimla Hotel Manimahesh, Dalhousie
Hotel Ros Common, Kasauli

E-Booking
 Instant online reservation : Railway, Bus and Hotel bookings
 Volvo Bus bookings
 Angler Lodges and Rest Houses

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 Tourist Circuits
 Districts Maps with Medical Aids

 Accommodation network:
H.P. Tourism Development Corporation Limited has a wide network of accommodation in
the state. At present it has 57 hotels having 1051 rooms. HPTDC also runs 60 restaurants
and cafes, serving varied cuisine, including Himachali delicacies. All these properties are
in superb locations in the lap of nature. The HPTDC hotels have three categories viz.
Premium – Heritage, Deluxe and Budget Hotels. The tariff for the year 2015-16 has been
revised and remain in force upto 31.3.2016. The Corporation also is running three
Bhawans of H.P. Govt. i.e. Himachal Bhawan-Chandigarh, Himachal Bhawan &
Himachal Sadan-New Delhi and also managing H.P. Secretariat Canteen and only one Lift
at Shimla is also run by HPTDC.
 Conference network:
HPTDC has a comprehensive network of conference facilities in the State, which are
available in The Holiday Home-Shimla, The Peterhof-Shimla, The Palace-Chail, The
Pinewood-Barog, The Club House-Manali, The Club House-Mcleodganj, The
Dhauladhar-Dharamsala, The Tea-Bud-Palampur, Hotel Jawalaji-Jawalamukhi, The
Yamuna-Paonta, The Hamir-Hamirpur and The Manimahesh-Dalhousie. The Peach
Blossom-Fagu, The Lake View-Bilaspur and The Mandav – Mandi.
 Wayside amenities:
The Corporation is providing wayside facilities on important tourist routes and destinations
which include national and state highways.
 Marketing network:
HPTDC has set-up Marketing and Tourist Information Offices in all major and important
cities within and outside the State. Besides it has appointed 14 General Sales Agents in
different cities of the country for reservation of HPTDC Hotels and other facilities. For
this, it is paying these General Sales Agents and Travel Agents handsome commission on

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slab basis. Depending upon the volume of business they fetch, they are being given
commission ranging from 15% to 25%.
 Package tours:
The HPTDC has also prepared different package tours, which are further circulated, to its
marketing and Tourist Information Offices within and outside the State. These packages
include major destinations, Temples, Gompa, heritage buildings and Trekking Packages
for Students in Himachal Pradesh. It also announces special packages during Karva
Chauth, Skiing packages during winters.
 Introduction of privilege card:
In view to have repeated clientele HPTDC has introduced the system of Privilege Card and
at present we have about 1500 Privilege Card holder. The Privilege Card holder is
allowed 20% discount on boarding and lodging & soft drinks.
 Discount:
Corporation offers 10% special discount to senior citizens during season. During monsoon
and other season they offer special discounts. Corporate discount has also been offered.
 Home stay scheme:
They have also floated Home Stay Scheme by which tourists are being invited to stay in
village houses offering them to have a feel of village atmosphere. HPTDC are the pioneer
in providing this scheme.
 Rejuvenation health centre/panchkarma:
Rejuvenation Health Centre at Hotel Holiday Home, Shimla, Hotel Palace, Chail and
Panchkarma Therapy at Hotel Tea-Bud-Palampur has been started.
 Reservation system:
All the HPTDC marketing/Tourist Information Offices have been networked. An
agreement for online reservation system/payment Gateway has been made with HDFC
Bank and Axis Bank reservation through Credit Cards.

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 Publicity and information network:
The HPTDC has brought out comprehensive range of Publicity literature. Every year
HPTDC prints an accommodation tariff and brochures which contains room tariff of
Hotels with available facilities, telephone numbers and e-mail address.
 Transport The HPTDC has a full-fledged transport wing consisting of a fleet of 17
coaches (which includes 4 Volvo buses recently purchased). The online reservation of
HPTDC Volvo buses and AC Sleeper Buses and the same are operating on Delhi-
Manila and Manali-Delhi routes. It also runs long distance services between Delhi-
Shimla, Delhi-Manali, Delhi-Dharamsala and Manali-Leh etc. Branch Offices of
Transport Wing are at Shimla, Manali and Delhi.

1.3 BOARD OF DIRECTORS (As on 31.03.2014)
 CHAIRMAN: Sh.Virbhadra Singh, Hon’ble Chief Minister, H.P.
 VICE CHARIMAN: Sh. Harish Janartha
 DIRECTORS:
Sh. Sudripto Roy, IAS, Chief Secretary, H.P
 Sh. V.C. Pharka, IAS, Principal Secretary to C.M. & (Tourism), H.P.
 Dr. Srikant Baldi, IAS, Principal Secretary (Finance), H.P.
 MANAGING DIRECTORS:
 Sh. Mohan Chauhan, IAS
 Sh.Subhasish Panda, IAS

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1.2 VARIOUS DEPARTMENTS AND THEIR FUNCTIONS

Figure 1.2: ORGANIZATIONAL STRUCTURE CHART of HPTDC Ltd.

ASSISTANT
ACCOUNTS
OFFICER
Board of Directors

Managing Director

General Manager

JOINT
CONTROLLER
ADMIN/HR
PROJECT
OFFICER
DGM
PURCHASE
DGM
TRANSPORT
FINANCE
MANGER
COMPANY
SECRETARY
DGM
MARKETING
& OPERATIONS
SUPERINTENDENT
AGM AGM
MARKETING &
PUBLICITY
ASST.
ENGINEER
ACCOUNTS
OFFICER
AGM ASST.
MANAGER
SENIOR
ASSISTANT
SENIOR
MANGER
SENIOR
MANGER
SENIOR
MANGER

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A) FINANCE DEPARTMENT

Fig. 1.3: Finance Department Chart

Finance department plays a very significant role in any organization. They maintain
various books of accounts, manage the budget and the cost functions of the company etc.
FUNTIONS:
HPTDC maintains the books of accounts according to the Companies Act, 1956.All their
financial functions are carried out according to this act.
The various books maintained by them are:-
1. Daily Sales Summary.
2. Journal.
3. Cash Book.
4. Ledger.
5. Bank reconciliation Statement.
Senior Asst. A.O

Senior Asst. A.O

Senior Assistant A.O.

ACCOUNTS
OFFICER

DEPUTY GENERAL
MANAGER

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6. Annual Balance Sheet at Branch Level and final consolidation is done at Corporate
Level.
 Conducts Internal and Statutory audits:
They have internal as well as external audit. Internal audit is done by the CA and the
statutory audit is done by the government auditors.
 Internal Control:
Internal control is done by proper monitoring at corporate level such as from the monthly
Profit and Loss account and other direct and indirect overheads.
 Cost & Revenue centers:
Cost and Revenue maintained monthly by the Branches and finally consolidated at
corporate level annually.

 Maintain Cost records:
Maintain Kitchen order tickets, Food cost register, Stock register, consumption registers
daily and reconciled with stock register.

 Maintains various documentation
 Receipts
 Vouchers
 Debit note
 Credit note
 Inward and outward invoices at store level.

 Makes the budget:
The budget is maintained annually. There are two types of budget being maintained by
the corporation i.e. Revenue Budget and Capital Budget.
 Control costs:
They control costs by following various techniques. By adopting various ratios-Debt-
Equity ratio, Quick ration, Liquidity Ratio, Working Capital, Debtors Ratios, Creditors
Ratios, Fuel Ratios and Food Ratios

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B) MARKETING & PUBLICITY DEPARTMENT

The most important function of HPTDC is marketing as it is
a tourism company. It has set-up Marketing and Tourist
Information Offices in all major and important cities within
and outside the State. Besides it has appointed 14 General
Sales Agents in different cities of the country for
reservation of HPTDC Hotels and other facilities. For this,
it is paying these General Sales Agents and Travel Agents
handsome commission on slab basis. Depending upon the
volume of business they fetch, they are being given
commission ranging from 15% to 25%.
The department collects information regarding current
market condition to maximize awareness of the product.
FUNCTIONS:
The HPTDC has also prepared different package tours.
They also announce special packages during New Year/ X-mas,
Trekking Packages for Students and Skiing packages during winters.
 Introduction of privilege card:
In view to have repeated clientele HPTDC has introduced the system of Privilege card.
The card holder is allowed 20% discount on boarding and lodging & soft drinks.
 Offer special discount on HPTDC Hotels:
Corporation offers 10% special discount to during season such as Monsoon / Winter
Discounts.
 Offer various schemes like:
1. Home stay scheme
DGM
Marketing &
Publicity
Asst.GM,
Marketing Office,
SHIMLA

Sr. Manager,
Marketing Office,
Chandigarh

Asst.GM,
Marketing Office,
DELHI

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They have floated Home Stay Scheme by which tourists are being invited to stay in
village houses offering them to have a feel of village atmosphere.
2. Rejuvenation health centre
Publicity and Information Network: Press release of managing directors of the
corporation.

C) ADMINISTRATION/HR DEPARTMENT

Cordial relations are maintained between the employees and management during the year
with the result the management gets whole-hearted cooperation from the employees to
boost the sale of our accommodation, Food & Beverages.
FUNTIONS
 Planning:
Human resource planning involves planning of required quantity of manpower to
perform the job. During the recent period 52 employees working on contractual/
daily/fixed wages in the various cadres/categories have been regularized, about 88
officers/officials have been promoted and 9 Drivers appointed on contractual daily
wage basis.
 wage and salary administration:
SUPERINTENDENT

JOINT
CONTROLLER

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The wage payment in HPTDC is monthly paid on the last working day of every month and
it is directly credited to the respective bank account of employees. Grade Pay allowed to
Staff of HPTDC as per Govt. Notification. Dearness allowance and house rent allowance is
also paid to the employees. Capital allowance is paid to those working in the capital.

 Training :
In HPTDC both on-the-job and off-the-job training are given. Further, students of the
various Hotel Management Institutes have been imparted “on the job training” in the
Hotels/Marketing Offices of HPTDC.
 Grievance Redressal:
Employees of the Corporation have easy accessibility to the Management to raise and get
redressal of their grievances. Special attention is paid to the redressal of employee’s
grievances and their appeals/ representations are attended to and decided promptly. Matters
pertaining to grievances of employees are also settled by discussion with the representative
of Employees Union. No individual in the company is allowed to contact Head of the
Department directly. These grievances are taken up by the grievance committee.
v) The various employee welfare measures prevailing in HPTDC are:-
o Diwali gifts.
o Uniform and shoes.
o Bonus.
o 50% discount on food.
o Special discount on accommodation.
o Medical facility.
o LTC facility.
D) TRANSPORT DEPARTMENT

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o

The Transport Wing of this Corporation was operationalized in the year 1974. At
present it has a fleet of 21 coaches comprising of 6 Nos. 41 seater AC Volvo Coaches,
13 Nos. 35 seater, 2 Nos. 15 seater Non AC Deluxe Coaches. Apart from the above,
the private AC Volvo Coaches are also hired from the private transporters/tour
operators particularly in the peak tourist’s season in order to meet out the additional
demand of the tourists. The Transport Wing runs direct services between Delhi-
Manali, Delhi-Shimla and Delhi-Dharamshala besides conducting local sightseeing
tours around Shimla & Manali. The Transport Wing has established three depots at
Manali, Delhi & Shimla for the convenience of the tourists. This was done keeping in
view the tourist traffic. Apart from the above, the Transport Wing also been conducts
tours to tribal areas of Leh, Lahaul & Spiti and Kinnaur District and earned a wide
publicity among the foreign as well as domestic tourists. HPTDC Ltd. also providing
the online reservation of Volvo buses through payment Gateway.
FUNTIONS
i) Provide facility to the tourist.
ii) Operates busses to provide LTC facility to government employees.

E) PURCHACE DEPARTMENT
This department looks into the needs of all the other departments. They make all kinds of
purchase on behalf of the company. All big to small purchases are made by this
department. They make purchases at Head Office level as well as at the unit level
depending on their day-to-day requirements. Purchase is being made in the most
ASST. GM
TRANSPORT
WING
ASST.
MANAGER
MANALI

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economical, transparent manner and also in accordance with the requirements keeping in
mind the aspect like quality, colour, design etc. Tenders for purchase and rate contract of
Central Store items for the year 2014-2015 were made during the current financial year
after wide publicity in the leading national, regional news papers and through tender portal,
so that reputed manufacturers and genuine suppliers could participate in the tender process
and the corporation could get the best quality material on competitive rates. They make
centralized purchases, apart from this efforts are being initiated to purchase the commonly
required provisions directly from the manufacturers or their authorized distributors so that
the standardized provision material are available on competitive rates.
FUNCTIONS
 Procurement of items.
 Vendor quality evaluation.
 Recurring storing and issuing all incoming Material.
 Maintaining good relations with the sellers.
 Making orders as and when required.
 Keeping in touch with the needs of the other departments.
 They issue central store items.

F) OPERATION DEPARTMENT
FUNCTIONS
i)New Year and X-Mas Eve celebrated in the different hotels/units of HPTDC.
ii) The trainers of HPTDC Ltd. imparts the training/workshop to the youth belonging to
economically weaker strata of the society in F&B services, Food Production and House
Keeping .
iii) Special attention is paid to the complaints from the guests/ tourists against HPTDC
hotels and the same were attended to on priority basis.
iv) HPTDC is providing free WiFi internet facility to the passengers of HPTDC Volvo
Buses and to the guests visiting and staying at Hotels/Units.

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1.4 UNITS & SUBUNITS OF HPTDC Ltd.
1) Hotel Holiday Home Complex

2) Hotel Peter Hoff, Shimla
Hotel Holiday Home 3)Chail Complex
Apple Cart inn, Kiarighat 4)Goofa/Ashiana
Hotel Baghal, Darigahat 5)Transport Wing
Hotel Golf Glade, Naldehra 6)Lift, Shimla
Café Lalit, Kufri 7)Hotel Shiwalik, Parwanoo
Hotel Mamleshwar, Chindi M.O. Shimla
Hotel Apple Blossom, Fagu M.O. Delhi

8) Manali Complex 9) Rampur Complex
HotelRohtang Manalsu, Manali Hotel Hatu, Narkanda
Log Huts Manali café Satluj, Rampur
Hotel Beas, Manali Hotel Srikhand, Sarahan
Club House, Manali Bushehar Regency, Rampur
Hadimba Cottage Hotel Chansha, Rohroo
TB Keylong and Sarchu Hotel Kinner Kailash, Kalpa
Hotel Kunzam Manali Giri Ganga Resort, Kharapathar
Tourist Lodge, Kaza
11) Dharamshala Complex
10) Dalhousie Complex Hotel Dhauladhar, Dharamshala
Hotel Deodar, Khajjiar Kashmir House, Dharamshala
Hotel Geetanjali, Dalhousie Hotel Kunal, Dharamshala
Hotel Manimahesh, Dalhousie
13) Bhagsu Complex
12) Chamba Complex Hotel Bhagsu, Dharamshala
Hotel Iravati, Chamba Club House, Dharamshala
Café Ravi view, Chamba
Hotel Champak, Chamba 14) Jawalaji Complex

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1.5 MARKETING STRATEGIES
i) Branding:
With its slogan “come as a tourist and leave as a friend” HPTDC is trying its best to attract
tourists. The state government promotes Himachal using slogans like ‘Unforgettable
Himachal’ and “A Destination for All Seasons and All Reasons” .

ii) Adventure tourism:
Himachal Pradesh Tourism Policy to promote Himachal Pradesh as an adventure sport
destination, adventure tourism activities like trekking, mountain biking and para-gliding,
ice skating, skiing, river rafting, heliskiing, car rallies are being organised in different areas
of the state for tourists. HPTDC supports the Adventure activities such as Himalayan Car
Rally, Mountain Biking, Skiing courses etc. so as to promote tourism in the State.
Hotel Mahadev Hotel Jawalaji, Jawalamukhi
Yatri Niwas, Chintpurni
15) Kullu Complex Hotel Hamir, Hamirpur
Hotel Sarvari, Kullu
Hotel Silvermoon, Kullu 16) Palampur Complex
Tourist Hut, Kasol Hotel Tea Bud , Palampur
Café Monal, Kullu Café Neugal, Palampur
Camping Site, Raison Yatri Niwas, Chamundaji
Hotel Castle, Naggar Hotel Uhi, Jogindernagar
Angler Bunglow Katrian
Café Raft 17) Paonta Complex
Café Jhiri Hotel Yamuna, Ponta Sahib
Hotle Renuka, Renkuaji
18) Bilaspur-Mandi Complex Café Nahan
Tourist Inn, Rewalsar
Hotel Lake View, Bilaspur 19) Barog complex
Hotel Hilltop, Swarghat Hotel Pinewood, Barog
Café Bilaspur Hotel Ros Common, Kasauli

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iii) Festivals and events:
To attract national and international tourists to Himachal Pradesh, the government
organizes several events throughout the year. These include - ‘International Shimla
festival’, ‘Winter Carnival’ at Manali, ‘Ice Skating festival’, ‘Tribal festival’ and many
more. Himachal government currently organized a few international events like Ice Skating
Festival, International Paragliding competitions, etc.

iv) Information & Technology:
The Corporation has carried out the following activities during 2013-14 to provide prompt
and latest Technology to the Tourists. The state government invested INR 22.50 lakhs in
setting up IT enabled tourist information in Himachal Pradesh in 2011. The funding was
provided by the Union Ministry of Tourism.
o WiFi facility in HPTDC Volvo Buses
HPTDC started providing free WiFi internet facility to the passengers of HPTDC
Volvo Buses. The passengers can access internet on their laptops, mobiles, tablets etc.
through WiFi access point provide inside the Volvo buses.
o WiFi facility at Palace Hotel, Chail
The guests visiting and staying at Palace Hotel, Chail can access WiFi internet on their
hand held devices within and around complex area.
Promotional Activities carried out during period 2014-15:
During the recent period all the efforts were made to market and publicize the tourists
activities of HPTDC Ltd. and launched comprehensive publicity campaigns.
The following activities were carried out during the period:-
 To increase the occupancy particularly during off season reasonable discount on
accommodation was announced.
 The Corporation has participated in the TTF(Travel and Tourism Fair) jointly with
Department of Tourism, Government of H.P. to publicize the Tourism in the State,
During TTF meetings with the Travel Agents/Travel Writers/Media Persons has been

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recognized with a view to attract maximum tourists to visit Himachal Pradesh so as to
increase the occupancy and business of the Corporation thereby generating more
revenue.
 Attractive Corporate discount was offered to encourage Corporate to stay in HPTDC
properties.
 HPTDC supports the Adventure activities such as Himalayan Car Rally, Mountain
Biking, Skiing courses etc. so as to promote tourism in the State.
 Reciprocal arrangements with other State Tourism Development Corporations to book
properties of each other properties on commission basis have been made to promote the
tourism of each other State. This arrangement will increase the business.
1.6 GOVERNMENT POLICIES
Initiatives in the pipeline
i) Policy incentives:
To encourage private sector participation in tourism and create employment in the
state, the state declared a 10 year tax holiday for entertainment units and deferred
payment of luxury tax by hotels and tourism units. This has provided a major boost for
development of tourism infrastructure in the state.

ii) Golf courses:
Recognizing the potential to develop golf as a niche tourism product for attracting both
international and domestic tourists, especially the high end visitors, state government is
planning to set up golf courses at industrial township of Baddi and tourist resort at
Manali under Public private-Partnership (PPP) model and has offered land and other
facilities to the private sector.

iii) Connectivity improvements:
The government is also in the process of increasing the ropeway connectivity in the
state by setting up ropeways.

25

iv) Developing new circuits:
The state government is also working to develop new tourist circuits in the state. A
new adventure and eco tourism circuit has been identified in Himachal Pradesh
covering Kullu, Katrain and Manali.

v)Foreign currency transaction:
Foreign Currency Transactions during the year are accounted for at exchange rates
prevailing on the date of transaction.
Tax Policies and procedures: Tax policies and procedures are observed with the
Internal and Statutory Audit.
1.7 Quality Standards: To encourage quality standard and service so as to promote
tourism in India, the Govt. of India, Ministry of Tourism has established National apex
body of the tourism industry which includes Domestic Tour Operator (DTO), Indian
Association of Tour Operators (IATO) etc.
Certificate: ISO-9000, “ISO-9001 and quality management in travel and tourism”
and The “Quality in Travel” certificate in the category Responsible and Sustainable
Tourism.
1.8 MAJOR PROBLEMS
Himachal Pradesh government invests 0.28 percent of its budget in tourism which is
below the average investment of the top 8 states. This highlights that some states like
Andhra Pradesh and Tamil Nadu have been consistently able to draw maximum
number of tourists due to the presence of religious sites, whereas there are other states
like Maharashtra and Karnataka that have invested in tourism in the state and have
been able to garner the attention of the tourists.

1.9 FUTURE PROSPECTS
Inviting private investment: The state government may focus on encouraging
investment from private players for improving infrastructure facilities, accommodation
and service quality, developing and maintaining tourist sites.

26

Fig:1.5 7s of HP Tourism Development Corporation Ltd.

SAYYOGH
SWAGAT
SOOCHNA
SURAKSH
A
SUVIDHA
SANRACH
NA
HOSPITALITY
Facilitation on Arrival
Memorable Experience

INFORMATION
Marketing & Promotion
Information Dessimination
INFRASTRUCTURE
Tourism Product Development
Core & Linkage Infrastructure

COPERATION
Coordinate
Quality Control & Assurance

SECURITY
Tourist Safety
Environment Management
FACILITATION
Accommodation & Stay
Amenities & Conveniences

Policy
Planning
Initiatives
Results
CLEANLINESS SAFAAI
NA

27

SWOT ANALYSIS
Strengths Weaknesses
1. Superior quality of the services offered.
2. Political and economic stability.
3. Centrally located hotels
4. Parking facilities for visitors
5. Trained guides and staff
6. Upgraded technology
1. Negligible air link and rail link in the
state.
2. Inadequate flow of tourists.
3. Saturation at the established
destinations.
4. No new major tourist destination.
5. Problems of land acquisitions.

Opportunities Threats
1. Strong potential for activity based
tourism such as rafting, paragliding,
trekking, mountaineering, water sports,
mountain biking, car rallies, skiing etc.
2. To develop an ideal destination for
nature lovers by promoting eco-
tourism.
3. Position as an ideal for film industry.
4. Create new destination in yet
unexplored but beautiful areas.

1. Aggressive competition amongst the
leading tourist states and a strong
promotion of tourism by other states.
2. Haphazard growth and construction
threatening the environment, especially
at the leading tourist destination.
3. Threat of substitutive products almost
does exist in case of services

28

BACKGROUND OF THE STUDY

This project report is based on a conceptual framework analyzing the dominant cultural
values and the processes underlying the influence of these values in various domains of
tourist behaviors. Based on this analysis, three categories of tourist behaviors are
identified. These three categories are labeled as Social Interaction Driven Travel Behavior,
Risk Tendencies Driven Travel Behaviors, and Collectivity Orientation Driven Travel
Behaviors.
Tourism marketing is unique. Market segmentation and positioning are important in
having effective marketing strategies in tourism. There is a systematic process for tourism
marketing. The context of this study is an examination of the process by which destination
areas and tourism businesses products, services and facilities can be marketed to potential
customers with an emphasis on the effective use of promotion and distribution channels.
Marketing and promotion activities are intrinsic to tourism products/services. Various
mechanisms are used to finance these activities in a destination. Tourist services often
contribute funding to common marketing and promotional initiatives. This study focus on
how the tourist products in terms of the marketing, provides sufficient transparency of the
return on investment.

29

OBJECTIVES OF THE STUDY

The purpose of this project report is to determine the following factors:
The reasons for the study of consumer’s helps organizations and firms improve their
marketing strategies by understanding issues such as:
 To analyze the psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., destination, attractions, activities, products/services).
 To identify the factors that influence tourist destination choice.
 To compare the opinions and perceptions of visitors towards product/services.
 To analyze the psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
 To identify the behavior of consumers while buying or making other marketing
decisions;
 To understand which elements motivate a tourist to choose a trip and identify how
consumers’ motivation and decision strategies differ between products/ services, that
differ in their level of importance or interest.
 To evaluate how marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
 To understand the profiles and general characteristics of domestic tourist products and
the factors that influence domestic tourism decisions.

30

SCOPE OF THE STUDY

Having learned about the basic principles and concepts of marketing as applied to tourism
industry, this study will be able to describe the procedures that should be used in marketing
tourism destinations, organizations and their products. The study would benefit the
corporation in a way of determining the key elements that most of the tourists perceived
that a tourist buying behavior is highly depend on destination brand image, internet
adoption followed by customer’s satisfaction. This project report will assist the
organization and operators of tourism industry in Himachal to understand the influential
factors which are influencing tourist’s perception and behavior to choose a tourism
product.

1. Increase in the Demand of tourism products/services: Tourism demand is highly
elastic, seasonal in nature, and is influenced by subjective factors such as modern
attractions at the destination as well as more objective factors such as price.

2. A Large Rural Urban Penetration: The penetration ratio in rural market is very
challenging and prospective. So, there is a good scope in these areas.

3. Opportunity in Semi-Urban Market: Many tourist destination are located in semi-
urban areas. There is a good opportunity of tourism products in the semi urban market. The
people are looking towards a good brand name and quality within them and it provides
infinite opportunity for locals too.

4. An Untapped Rural Market: There is an untapped market in the rural area of
Himachal. It is an awesome opportunity for private players of tourism industry.

31

NEED OF THE STUDY

The need of this study is to know the how much consumers give preferences to the brand
of services and whether the customers are satisfied with the services of the tourism
industry and how far the industry is able to satisfy the customer in terms of quality and cost
factors since in today’s modern era customers are the focus for any organization. Now the
policy every organization is to provide satisfaction as there exists a lot of competition for
them. Hence it becomes necessary to conduct a comprehensive research in terms of
customer behavior and perception towards tourism products. This also helps to judge
whether if there is any lag in the policy and could take immediate action to rectify it.

The need of this project also arose because an extensive survey can help the corporation
whether the work done by the corporation in the area of new products/services is able to
satisfy the customers or not. The major focus of the research conducted therefore is to
discover the factors that people are aware about the upcoming new products and services
and to find the attribute of these services which attracted them for a trial. The study was
restricted to only around 50-60 percent of our target audience, because the respondents
included in the study are people who are frequent travelers of the state.

32

CHAPTER - 2
LITERATURE REVIEW

2.1 TOURIST BEHAVIOR STUDIES: LITERATURE REVIEW
Hofstede’s (1980, 2001) five cultural dimensions have been applied to the study of tourist
behaviors. This section of the paper summarizes the findings of the research studies
identifying the specific cultural dimensions used for explaining specific tourist behaviors.
The literature review provided in this section is by and large organized as per the list of
tourist behaviors identified.
 Studies of Tourist Behaviors Before-Travel
Travel motivations/benefits sought:
The subject of travel motivations has been extensively studied in travel and tourism
research. As a psychological factor explaining human behavior (Kotler and Keller 2009;
Manrai and Manrai 1996, 2001), travel motivations provide very significant insights into
travel decision making processes and various behaviors during the travel experience.
Hofstede’s cultural dimensions are extremely relevant for the study of travel motivations
because cultural values influence all aspects of human life including personal factors like
lifestyle and psychological factors like motivation.
Travel occasion/event/travel life cycle:
The concept of Travel Life cycle (TLC) was coined by March (2000) and basically implies
that depending upon the life cycle stage, an individual will take certain types of
institutionalized or group tours. The paper discusses the implications of the collectivity-

33

driven travel life cycle concept in terms of travel companions, travel duration, activities
and experiences sought, and various purchase related behaviors for each of the eight
segments.
The “family trip” includes both parents and at least one child under 12 years old. The two
main motivations for family trips mentioned by tourists in this group were the opportunity
for kids to experience foreign cultures and the reasonable costs of overseas trips.
The “silvers” segment refers to 60+ tourists. According to JTB (1998), 40% of the silvers
travel with their spouses, 24% travel with family members and 20% travel with friends and
acquaintances. Almost two-thirds of silvers buy full packages to the most preferred
destination. This segment stays for longer duration abroad and is both able and willing to
spend more money on overseas The “in-company” trip, this trip usually lasts any where
from a few days to a weak and is mostly sponsored by the company and the employees
paying a small proportion of the cost. The topmost destination for this segment was the
USA.
The “overseas wedding” segment is the fastest growing market. March (2000) lists the
main advantages of overseas weddings as lower cost, efficiency of arrangements, more
intimate and relaxed atmosphere, the heightened romance, and the opportunity for the
couple to escape from social demands particularly considering the collectivistic nature of
the society. Overseas weddings typically include immediate family members/relatives and
close friends. The top destination for overseas weddings was Hawaii .
The “school excursions” refers to the organized travel activity undertaken by high school
juniors and seniors. Schools typically choose a particular overseas destination for at least

34

two or three years because of the time and money involved in making new arrangements
every year.
The “graduation trip” refers to overseas travel undertaken by university graduates before
they begin full time employment. Typically graduates travel with a few close friends. The
average length of these graduation trips are 8 days and the top three destinations are USA,
Hawaii, and Asia. This group of tourists travels on a budget and employ money saving
options. There are also the tourists group with the lowest proportion of package tour
purchases.
Lastly for the “language study” segment, the three top destinations included the three
English speaking countries i.e., USA, U.K., and Australia (in that order).
Travel risk perception, safety concerns, and travel anxiety:
Several researcher studies have addressed the issue of perceived travel risk (Moutinho
1987; Roehl and Fesenmaier 1992; Ressinger and Mavondo 2005). Researchers have
identified the determinants of risk perception in tourism as well as the individual
characteristics related to personal and psychological factors such as personality, lifestyles,
and motivations (Bello and Etzel 1985; Carr 2001) as well as nationality (Seddighi,
Nuttall, and Theochaous 2001) and cultural differences.
The perception of travel risk affects a tourist’s assessment of travel safety and also leads to
travel anxiety. The governments of several countries have issued alerts for their citizens
related to the safety concerns in certain international travel destinations. While such safety
alerts are certainly warranted, they further enhance the safety concerns and travel anxiety

35

of international tourists. In turn safety concerns and travel anxiety adversely influence
international tourism activities.
Trip planning/prior arrangements:
Tourists undertake such risk reducing behaviors both in before-travel and during-travel
stages. The before-travel risk reducing behaviors include extensive trip planning, use of
travel agents and tour operators, making prior travel arrangements, pre-payment for
tourism components etc. Two research studies dealing with these issues are Money and
Crotts (2003) and Crotts and Litvin (2003). The findings of both of these studies indicated
that tourists from high uncertainty avoidance cultures had taken risk and uncertainty
reducing measures such as inclusion of pre-paid tours and pre-booked lodgings to a greater
extent than tourists from low uncertainty avoidance cultures.
 Studies of Tourist Behaviors During-Travel
This sub-section includes five tourist behavior domains, four of which capture the risk-
reducing behaviors related to the during-travel stage. These four domains are trip
duration/length of stay, number of destinations in the itinerary, travel party size/travel
companions, and travel frequency. The fifth tourist behavior domain included in this
subsection is behavior of tourists on group tours.
Trip duration, number of destinations in the itinerary, travel party size, travel
frequency:
The two research studies related to the risk-reducing behaviors in the before-travel stage
discussed earlier i.e., Money and Crotts (2003) and Crotts and Litvin (2003) also examined
several risk-reducing behaviors related to the during-travel stage. The findings of these two
studies indicated that tourists from the high uncertainty avoidance cultures had taken risk

36

and uncertainty reducing measures related to the during-travel stage also to a greater extent
compared to the tourists from the low uncertainty avoidance cultures. Specifically the
findings of these two studies indicated that tourists from high uncertainty avoidance
cultures compared to tourists from low uncertainty avoidance cultures had shorter stays in
USA, visited fewer destinations in the itinerary, and traveled with a larger party size.
 Studies of Tourist Behaviors After-Travel
In this subsection, five types of post-travel behaviors are included i.e., quality evaluation,
price/value evaluation, overall evaluation/image, satisfaction/dissatisfaction and repeat
purchase/revisit intention. Each of these five post-travel behaviors can be applied to the
domains of travel mode, destination, transportation, accommodation, food, and
activities/tours.
Destination: quality, perceived value, overall evaluation, satisfaction, revisit intention
A large number of studies have compared Asian versus Western tourists examining
behaviors such as service quality evaluations, perceive value evaluations,
performance/overall evaluations, satisfaction/dissatisfaction and repeat travel/visit
intentions. Asian tourists in general tend to have higher expectations and evaluate the
service performance less favorably compared to their Western counterparts. Hsu and Kang
(2003) investigated differences in perceptions of service quality, perceived value, overall
image/destination attractiveness, satisfaction, and revisit intention between Asian and
western tourists to Hong Kong.

37

Transportation: quality evaluation, price evaluation, repeat purchase intention
Crotts and Erdmann (2000) examine the relationship between the Masculinity versus
Femininity dimension and traveler’s evaluation of airline ticket prices, evaluation of flight
and loyalty to airline.
Accommodation: service quality evaluation
A study by Mattila (1999) examined difference between Asian and Western tourists in
their perceptions of the service encounter and service quality evaluation for two luxury
hotels in Singapore. The researchers observed the encounters between hotels’ front desk
employees and guests after which they asked the guests to complete a questionnaire.

2.2 Introduction to Tourism Products:
Meaning of Tourism: Tourism is considered as a product because just like any product it
is something that attract. Tourists are those who visited different places and enjoy the
activities and adventures it offers them. And the tourism increases income and provide
economic stability to the particular community of the area. Tourism industry also attracts
foreign investors.
Tourism Product : A tourism product is any product that is marketed by a country and
states or an institution to visitors so as to attract them to visit a country and experience the
said product. Tourism Products includes accommodations, tours, transportation,
recreational activities and historic sites.
Tourist Destination : A tourist destination is as an area which is separately identified and
promoted to tourists as a place to visit, and within which the tourism product is
coordinated by one or more identifiable authorities or organizations.

38

Figure:2.3 Tourism products portfolio

CHARACTERISTICS OF THE TOURISM PRODUCTS
 Intangibility: It is one of the main feature i.e. tourism products can’t be touched as
they include view of mountain, visit to a museum, cruise liner in a sea, flight
experience in an air plane and much more. The intangible nature of tourism services is
that the visitor’s travel experiences exist only in memory after the trip is over.

 Inflexibility: The tourism industry is fully inflexible in terms of capacity for example
the no. of beds in a Hotel or seats on flight is fixed so, It is not possible to meet sudden
upsurges in them. Similarly restaurants tables remain empty and unused in periods of
low inflow.
 Inconsistency: A general norm is that in travel and tourism industry the product or the
package of the tourism can be easily standardized.

 Inventory: It is related to fact that travel products are intended to be consumed as they
are produced for example as a juice glass is produced in juicer and consumed by the
tourists at particular destinations.

NATURE
SPECIAL
INTEREST
SPORTS
CULTURE &
HERITAGE
 Summer
Festival
 Local
Festivals
 Popular
events
 Site seeing
 Paragliding
 Horse
Riding
 Climbing
 River rafting

 Theme
Parks
 Winter Sports
(ice-skating,
ski, snow,
sleds etc)
 Mountain bike
 Car Racing
routes
 Golf

 Museum
 Pilgrimage
 Architecture
 Festivals &
Fairs
 National Park
 Picnic Areas
 Camping Sites
 Fountains
EVENTS
RURAL
TOURISM
Rural
activities

39

TYPES OF TOURISM PRODUCTS:
Tourism products are further classified in to four categories these are enlisted below:
 Tourism Oriented Product (TOP’s) Tourism oriented products are those products or
services which are specially created primarily for the tourists but also for locals. In this
type of product investment is largely made in the private sector.
. Hotels , Motels, Flotals, Rotals, Restaurants (Like Taj Hotel, Oberai Hotel etc.)
. Tourist Transportation (Taxis, Luxury buses etc.)
. Travel Agencies, Tour Operators
. Shopping Malls (PVR, FR Cinemas and various shopping centers)
. Food and Beverages
. Tourism Information Centres
. Souvenirs Outlets
. Museums
. Temples
. Gardens
. Theme parks
. Eco Clubs
. Golf glade

 Resident Oriented Products (ROP’s): In this type of products the products and
services are built largely for local residents of particular tourist destination also used
largely by tourists. For example IPL Stadium Dharamshala in Himachal Pradesh. But
used by spectators and players from all part of the country. In this type of product
investment from the public sector is more.
. Health Services
. Public Parks
. Retail Shops
. Banks for foreign currency exchange
. ATMs
. Petrol Pumps

40

. Postal Services
. Local Transport
 Background Tourist Elements (BTE’s: These type of tourism product include
. Man Made
. Events
. Theme Parks
. Natural Attractions
. Geographical Attractions
It also includes flora and fauna all the wild life sanctuaries, Natural places conserved,
national Parks and artificial lakes. In this nature of products involves appealing non
appealing sites. These sites are attracted most tourist to visit those. So we can say that it
is the most important product of the tourism industry.
 Retrievable tourism products Retrievable tourism products it includes memories of
different topics like various heritage sites, historical monuments, important pilgrimage
destinations, Archeological sites, Cave and rock cut temples places those attract
tourists to visit at particular destination.
. Advance studies, shimla
. Kullu Shawls & Topi-Himachal Pradesh
. Milk Cake Rishikesh, Bilaspur, Himachal Pradesh
Conclusion: From the above discussion we can conclude that these types of products are
basic forms of tourism Industry and also tourism industry survives on these products.
Tourist Destination Development:
A destination comprises a core of facilities; amenities and services fashioned to cater the
needs of the tourists, generally represented as 4A's. Nevertheless, all the elements :
(i) Attractions; (ii) Access; (iii) Amenities; (iv) Ancillary services has to be in order in the
form of a complete mix before tourism experience is delivered.

41

Changing Tourism Paradigms:
The emerging tourism paradigms are as follows:
(1) Eco-tourism has emerged as one of the fastest growing travels in the worldwide
tourism industry. Eco-tourism is being promoted as a means of giving nature value
and hence of achieving sustainable tourism. Importantly, it is one of the most
popular alternative tourism forms.
(2) Green tourism, farm tourism and rural tourism have emerged as the new perceived
approaches of tourism which involves a healthy tourism development through local
participation and precise assessment of carrying capacity of the area and its
locality.
(3) Soft tourism, another dimension of tourism, is environmentally and socially
compatible tourism, i.e. close to nature, respecting the host-culture and not relying
on technology. The private sector is mainly responsible for delivering products and
services to the tourist and enjoys major chunk of economic benefits. Therefore, the
focus is made on protection of biosphere by undertaking green marketing by
promoting soft tourism that minimizes adverse environmental impacts.
(4) Heritage tourism has emerged as one of the potential areas of tourism
development. It refers to tourism in the natural, cultural and built environment of an
area providing the tangible links between past, present and future.
(5) Cultural tourism development is community based participatory and designed to
improve the economic and social, well being of local residents.
(6) Ethnic tourism has emerged as a typical cultural and social dimension of tourism
development. It is sometimes also referred as a combination of culture and nature
tourism. It is travelling for the purpose of observing the cultural expressions of life
styles of truly exotic people such as caste, community, group, tribe etc.

42

Paradigmatic Shift in Tourism Scenario
From To
Old Travel Patterns New Travel Patterns
Long Trips Short Breaks
Travel Barriers Free Trade
Established Destinations Emerging Destinations
Shimla, Kufri Kunzam, Kaza
Manali, Dalhousie Dharamshala, Mandi
Old Products New Products
Sensitive Environments Artificial Environment
Separate Activities Integrated Experiences
Single Activity Focus Multiple-Activity Focus
Seasonal Visitation All Weather Tourism
Fragmented Industry Economic Development Tool;
Number of Visitors Economic & Social Benefit
Regional Competition Intelligent Cooperation
Price Competition Time Competition
Product Dominance Customer Orientation
Developer Control Community Control
Political Lobbying Approvals Via Referendum

43

Economic Impact Jobs & Small Business
Environment Protection Environmental Improvement
Cultural Intrusion Heritage Protection
Financial Illusion Financial Reality
Mega Attractions Franchise Opportunities
Meeting Everyone’s Needs Meeting Investors’ Needs
New Investment Revenue Enhancement
Price Inflation Price Resistance
Passive Consumers Involved Participants
Inexperience Tourist Value Conscious Traveler
Fully Packaged Tours Menu of Experience Options
Theme Parks Experience Centers
Meeting Customer Needs Surpassing Expectation
Observing Technologies Orchestrating Technologies
Print Media Internet
Reality Virtual Reality/Simulation
Necessary Travel Discretionary Travel
Language Barriers Instant Voice Activated Translation
Maps GPS & navigators
Mass Markets Specialty Markets

44

Undifferentiated Consumers Eco Tourism
Adventure Tourism Recreational Tourism
Share of Market Share of Customer
Mass Marketing Direct Communication
Socio economic Groups Customer Databases
Media Placement Websites, Mobile Apps, Telemarketing
One-way Communication Building Relationships
Print Material Visual Images
Product Management Customer Management

2.3 CRITERIA FOR MARKETING OF TOURISM PRODUCTS:
Following is the criteria on which the tourist products are marketed:
a) Location : When traveling, you'll find that the locations of your hotels will play a big
role in your overall enjoyment of the trip. That's because a well-located hotel will
significantly cut down on the amount of time you waste in traffic or trying to navigate an
unfamiliar place. For Example: HPTDC hotels are centrally-located all over the state, for
business travelers, centrally-located hotels will increase productivity by allowing them
more time to work and meet with colleagues. For vacationers, a hotel that is located near
major attractions means less hassle and more fun. Visitors won't have to waste money on
cab fare or public transportation, it is possible to get to places on foot.

b) Branding of Tourism Products :
 Accommodation: Five Star Hotels, first class International Hotels. HPTDC Hotels
Examples : Peterhoff, The chail Palace, Chail, Orchard Huts,Manali, HHH Shimla.

45

 Private Players: Wildflower Hall, The Oberoi Cecil, Radisson Hotel, Clarkes Hotel.
 Destination as a brand: Cultural &Heritage places, religious places, parks, recreational,
natural reserves etc. which requires presentation and refurbishing as they are to stay
looking modern.
c) Services: The hotels are also known for its services that it offers. Since hotel is a
part of service industry, it has to provide the best services if it wants to see a good balance
sheet. It has been found that the importance of employee attitudes to service and the level
of satisfaction with the service vary significantly among customers.
 Product development: Establishing clear positioning, on-site offerings, the choice of
self-caterer products and strengthening of the entertainment and recreational activities.
 Unique selling point:
 Packages as per client’s budget
 Serves as personal travel concierge
 Communication route is simplified
 Cross Selling: The tourism organization instead of just selling its own products, sells
ancillary products provided by other organization. For Example: Travel agents and tour
operators often offer a range of complementary products with their basic holiday
packages(insurance, car hike, guide books, attractions, vouchers etc.). Tourism
information centers may sell guide books, maps, souvenirs or even arranged
accommodation & transport bookings taking a percentage of charges. This is being
widely used and likely to develop even further.
d) Pricing : The Monetary value at which tourism products are offered. Hotel revenue and
general managers employ effective short- and long-term rate optimization strategies that
rely on accurate, rapidly updated market data. The use of the Internet as a effective sales
tool is changing the rules when it comes to revenue management. Websites: MakeMy trip,
ixigo Trip Planner, goibibo, journeymart etc.

46

e) Tourist Demand :

Figure:3.2 Systematic links between demand and supply

Tourism demand is highly elastic, seasonal in nature, and is influenced by subjective
factors such as modern attractions at the destination as well as more objective factors such
as price. Peak Seasons tourist inflow depends on weather and temperature.
For Example: Shimla is a year-round holiday destination popular with families and
couples. March to June: This is a popular tourist season in Hills as the weather is quite
pleasant and perfect for outdoor activities. July to September: This is not peak season in
himachal because of heavy rainfall and occasional landslides. October to February: This is
again a popular season for hills because, people who are looking for snow, which typically
falls between December and February. This is the time skiing and ice skating take off.
MARKETING
MIX
Product Supply
(destinations)
Activities
Attractions
Accommodation
Other facilities
Market Demand
(areas of origin)
Visitors
Tourists
Excursionists
International
Domestic
Physical Access.
Transportation
Air
Road
Rail
Travel
Organizers
Tour Operators,
Travel Agents,
Others
Destination
Organizations
National Tourist Offices
Regional Tourist Offices
Local bodies

47

Competition is involved in all observable phenomena of tourism market – the prices at
which products are exchanged, the kinds of the products produced, the quantities sold, the
methods of distribution, and the emphasis placed on promotion.

2.4 TOURIST BEHAVIOR DOMAINS
 Need recognition/purchase motives,
 Information search and information acquisition,
 Evaluation of alternatives, which involves rating of options and leads to formation of
preferences and formation of behavioral intentions,
 Actual purchase decision, which involves purchase transaction and related decisions,
 Post-purchase behaviors such as consumer satisfaction/dissatisfaction brand
loyalty/brand witching, complaining/complementing behaviors etc. Thus, each of
these five stages of consumer decision making is associated either explicitly or
implicitly with certain consumer behavior domains.
Hofstede (1980) labeled these four dimensions as Power Distance, Avoidance,
Individualism versus Collectivism and Masculinity versus Femininity respectively. He
defined these four dimensions as follows:
 Power Distance: The extent to which the less powerful members of institutions and
organizations accept that power is distributed unequally.
 Uncertainty Avoidance: The extent to which people feel threatened by ambiguous
situations, and have created beliefs and institutions that try to avoid such situations.
 Individualism versus Collectivism: A situation in which people are supposed to
look after themselves and their immediate family only. (Individualism)
 Masculinity versus Femininity: A situation in which the dominant values of society
are success, money, and things.” (Masculinity). A situation in which the dominant
values of a society are caring for others and quality of life. (Femininity)

48

a)Tourist Behaviour Domains Before-Travel:
The first decision which a potential tourist is faced with is whether to travel or not. There
are various reasons for this dilemma. On the “No” side there may be personal, social, or
financial constraints, there may be concerns related to the travel risk and safety, and the
individual may have travel anxiety etc. On the “yes” side, there is ample evidence
documenting the benefits of travel and tourism. It fulfills a variety of personal, social, and
recreational needs providing motives and incentives for travel.
We call this first decision “Yes-No to Travel” and label it as BT1. The Yes-No factors
taken into account as discussed above are labeled as follows: On the “yes” side, Travel
Benefits and Travel Motivations (BT2), Travel Occasion/Event/Life Cycle (BT3). On the
“No” side Travel Risk and Safety concerns and Travel Anxiety (BT4),
Personal/Social/Financial constraints (BT5).
The individuals also vary in terms of their need for planning and prior arrangements. While
the information search and acquisition processes continue through the During-Travel stage,
a substantial proportion of information search and acquisition activity takes place prior to
travel. The above travel behaviors are labeled as follows: Information Search and
Acquisition (BT6), Sources of Information (BT7), Trip Planning/Prior Arrangements
(BT8).
Next, the individuals aggregate the collected information and evaluate their alternatives to
form preferences. The evaluation process takes into account four main variables i.e., 1)
attributes used for evaluation of alternatives, 2) Perceptions of alternatives on the key
attributes, 3) Importance weights the individuals attach to the different attributes, and 4)
Method of aggregating the information on the above three variables to arrive at overall
preferences. The key decision areas in this stage of preference formation relate to the travel
mode (package/group versus independent non-package), destination, transportation,
accommodation, food, and activities. Considering the complexity of the tourism product
many tourists are either not able to or not willing to make their own arrangements and
resort to taking package tours instead of making their own independent arrangements. On
the other hand, many tourists are willing to deal with making their own arrangements for
the sake of benefits they see and the capabilities they have to make these arrangements.

49

Therefore, the research area of determinants of travel mode preference (package versus
independent travel) is in itself an important area of tourist behavior research. In fact many
tourists rely on their tour operators and travel agents for suggestions on destinations for
consideration. We identify six more travel behaviors in the “Before-Travel” stage i.e.,
Travel Mode Preference (BT9), Destination Preference (BT10), Transportation Preference
(BT11), Accommodation Preference (BT12), Food Preference (BT13), and Activities at
Destination Preference (BT14).
b)Tourist Behaviour Domains During-Travel:
While the last set of travel behavior domains identified in the “Before-Travel” stage i.e.,
deals with the formation of preferences and behavioral intentions, the travel behaviors
discussed in this section deal with choices and behaviors related to purchase and
consumption of travel products. The first set of During-Travel behaviors identified
corresponding to the preferences describes the following choices: Travel Mode Choice
(DT1), Destination Choice (DT2), Transportation Choice (DT3), Accommodation Choice
(DT4), Food Choice (DT5), and Activities at Destination Choice (DT6).
Each of the above decision areas includes a variety of sub-decisions on which differences
amongst tourists from different cultures can be expected. These differences capture the
norms of various societies, individual differences or personal characteristics as well as the
psychological processes underlying travel and tourism behavior. These differences affect
the characteristics of trips taken by tourists from different cultural backgrounds. In the
current research, following trip characteristics are included for study: Number of
Destinations in Itinerary (DT7), Travel Party Size/Travel Companions (DT8), Travel
Frequency (DT9), and Trip Duration/Length of Stay (DT10). The topic of Tourist
Behavior on Group/Package Tours has also drawn a lot of attention in the travel and
tourism research and is included as a separate travel domain in the current study for
analysis.

50

c)Tourist Behaviour Domains After-Travel:
This category of travel behaviors relates to the evaluations of different components of the
tourism experience subsequent to the purchase and consumption of the tourism product.
The tourism product is evaluated on various attributes/criteria. Tourist evaluations are
followed by a variety of post-purchase and consumption processes. These processes
include tourist satisfaction/dissatisfaction and intention to revisit/repurchase. The
satisfaction is based on expectations, which the tourist typically have in the “Before-
Travel” stage and perceived performance or evaluations, which result after the travel
experiences in the “During-Travel” stage. Typically the satisfaction is positively related
with the repeat visit or repeat purchase intention. Thus, for each of the six basic
components of tourism experience i.e., travel mode, destination, transportation,
accommodation, food, and activities at destination, five measures of tourist behavior in the
“After-Travel” stage are considered i.e., service quality evaluation , price/value evaluation,
overall evaluation, overall satisfaction, and repeat visit/repurchase intention. This results in
various tourist behavior domains in the “After-Travel” stage. These travel behavior
domains are identified in the after-travel group
2.5 Consumer Behavior Models:
The study of consumer behavior focuses on how individuals make decisions to spend their
available resources (time, money, effort) on consumption-related products. Behavior
occurs either for the individual, or in the context of a group, or an organization. Consumer
behavior involves the use and disposal of products as well as the study of how they are
purchased. Product use is often of great interest to the marketer, because this may
influence how a product is best positioned or how we can encourage increased
consumption.

51

Fig: 2.5 Model of consumer behavior,Sources: marketing management, kotler Pg140

The model fig:2.6 separates out motivators and determinants in consumer buying behavior
and also emphasizes the important effects that an organization can have on the consumer
buying process by the use of communication channels. Schmoll developed a model which
hypothesized that consumer decisions were a result of four elements as follows:
 travel stimuli, including guide books, reports from other travelers and advertising and
promotion
 personal and social determinants of travel behaviour including motivators, desires and
expectations
 external variables, including destination images, confidence in travel trade
intermediaries and constraints such as cost and time
Purchase Decisions
Product choice
Brand choice
Price
Purchase methods

Buying Decision
Process
Information source
Choice of
alternatives
Purchase decision
Post purchase
decision
Marketing Stimuli
Product /services
Price
Distribution
Communication
other Stimuli
Impulsive decision
Past experience/
familiarity
Interest

Consumer Psychology
Motivation
Perception
Memory
Consumer characteristics
Cultural
Social
personal

52

 Characteristics and features of the service destination such as the perceived link
between cost and value and the range of attractions and amenities offered.

Figure:2.6 a Stimulus-Response Model of Buyer Behavior

Model of Travel-Buying Behavior Mathieson and Wall
Mathieson and Wall suggested a linear five-stage model of travel buying behaviour, which
is shown in Figure 2.8 Model of Travel-Buying Behavior

Stimulus Input
Communication
channels
Buyer characteristics and
decision process
Purchase outputs
(response)
Communication
filters Motivation
Demographic
economic and
social position

Psychographic
characteristic

Needs
Wants
Goals

Attitudes

Experience

Range of
competitive
produced and
marketed by
the tourist
industry
Advertising
Sales promotion
Brochures
Personal selling
PR
Friends
Family
Reference
Group

Learning

Perception

Experience

Product
Brand
Price
Outlet
Post-purchase and
post-consumption feelings

Felt need/
travel
desire
Information
collection
and
evaluation
image
Travel
decision
(choice
between
alternatives)
Travel
satisfaction
outcome and
evaluation
Travel
preparation
and travel
experiences

53

Model of Consumer Decision-Making Framework
Gilbert suggested a model for consumer decision-making in which is shown in Figure3.6
This model suggests that there are two levels of factors that have an effect on the tourists.
The first level of influences is close to the person and includes psychological influence
such as perception and learning. The second level of influences includes those, which have
been developed during the socialization process and include reference groups and family
influences. All these models that have been adapted for tourism offer some into the
consumer behavior process involved during the purchase post-purchase decision stages.

Figure 2.7 Consumer Decision-Making Framework

Consumer or
Decision-maker
Socioeconomic
influences
Cultural influences
Family influences Reference group
influences
Motivation or
energizers
Personality/
attitude
Perception
Learning

54

CHAPTER - 3
RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN
The research design used in this study was both ‘exploratory’ and ‘descriptive’.
Research problem :
The purpose of this research is to analyze the tourist’s perception and behavior in the
choice of selecting a destination, attractions, activities and availing of tourism
product/services under the perspective of Himachal Pradesh tourism environment. The
survey instrument was employed by using convenience sampling procedure on 100 tourists
from significant tourist’s destination places from Himachal. Exploratory factor analysis
(EFA) followed by descriptive analysis was used to test the key influential attributes. The
result shows that most of the tourists perceived that a tourist buying behavior is highly
depend on destination brand image, internet adoption followed by customer’s satisfaction.
This project report will assist the organization and operators of tourism industry in
Himachal to understand the influential factors which are influencing tourist’s perception
and behavior to choose a tourism product.

Conceptual Framework

Independent variable
Tourists’ Decision
Revisiting
Length of Stay
Product choice

Marketing Mix
Factors
Product, Price,
Place, Promotion
Demographic
Factors
Gender, Age,
Income

Dependent variable

55

3.2 SAMPLE DESIGN
Simple random sampling is used for this study. Nature of the research is Descriptive.
Descriptive, it also known as statistical research, describes data and characteristics about
the population being studied.
Sampling Technique: Sampling Technique used in this study is Non-Probabilistic
Convenient Sampling.

3.3 DATA COLLECTION METHODS:

The data will be collected using both by primary data collection methods as well as
secondary sources
Primary data: The methods that will be used to collect primary data are:
Questionnaire, Interview
Secondary data: Books, Internet

Stastical tools: The collected data were analyzed with the help of tables and percentages.
Various statistical were viz., percentage analysis, mean score, Garret ranking and Chi-
Square analysis were applied to analyze the primary data.
Sample size: 100

Statistical tools: The collected data were analyzed with the help of tables and percentages.
The tools used in this study were MS-EXCEL. Various statistical were viz., percentage
analysis, mean score, and Garret ranking analysis were applied to analyze the primary data.
 Simple tabulation of data using tally marks.
 Calculating the percentage of the responses.
 Formula used = (Frequency or average no. / total responses) * 100

Tool of Analysis: Tool of analysis used was pie charts, bar graphs and values

56

DATA INTERPRETATION AND ANALYSIS

AGE , SEASON AND INFLOW WISE DISTRIBUTION OF TOURISTS :

Statement 1: Age group of Tourists
Sr
no.
Age No. of Tourists %age
1 20-25 75 15
2 26-35 100 20
3 36-45 150 30
4 45 & above 175 35
Total 500 100
Table1: Age group

Figure 1: Age group

15%
20%
30%
35%
20-2526-3536-4545 & above

57

Interpretation :
The respondent of the survey were mostly in the age group of 20-25 years i.e. 42%.
Followed by the people in the age group of 35 years and above-31 %. 23% in age group of
36 to 45 years and the least were people in the age group of 45 years. This shows the type
of sample that we are analyzing.
Statement2: The Season in which the maximum number of visitors visit to Himachal
Pradesh.
Sr
no.
SEASONS No. of Tourists %age
1 Spring 100 20
2 Summer 175 35
3 Autumn 90 18
4 Winter 135 27
Total 500 100
Table2: Seasons witness maximum tourist flow

Figure 2 : Seasons witness maximum tourist flow
Interpretation: March to June: This is a popular tourist season in Hills as the weather is
quite pleasant and perfect for outdoor activities. July to September: This is not peak season
20%
35%
18%
27%
Total %age of tourists
Spring season
Summer season
Autumn season
Winter season

58

in himachal because of heavy rainfall and occasional landslides. October to February: This
is again a popular season for hills because, people who are looking for snow, which
typically falls between December and February This is the time skiing and ice skating take
off. Maximum number of tourists i.e. 43 % tourists visit Himachal Pradesh in summer
season as it is most suitable climate for tourist from adjoining states, hotter places such as
Delhi, Chandigarh . Winter season is also filled with good tourists flow i.e. 25.19 % of
tourists for winter sports and recreational activity.

Statement3: Average no. of visitors in a month
Average number of visitors Domestic visitors Foreign visitors
10-30 27 6
30-60 53 37
Above 60 47 17
Table 3 : Total number of a tourist in a month

Figure 3 : Tourist flow in a month

Interpretation : The tourist inflow in Himachal Pradesh over 2009-2014 period has
witnessed increase in both domestic and foreign tourists. The number of domestic tourists
0
10
20
30
40
50
2 - 3.5 lakh3.5 - 6 lakh6- 10 lakh10 lakh and
above
Tourist Inflow

59

in the state has increased from 77 lakhs in 2011 to 129 lakhs in 2014, growing at a CAGR
of 14 percent as compared to a CAGR. In terms of foreign tourists, their number has
increased from 3 lakhs to 4.5 lakhs in the same period. The mix of foreign and domestic
tourists visiting Himachal Pradesh has stayed almost constant from 2009 to 2014. Tourists
on an average of 10-30% per month visit the state.

Consumer preferences in choice of tourism products :
Statement 4: What is most common purpose of your travel ?

Sr
no.
Purpose of travel No. of Tourists %age
1 Social Trip 35 7
2 Business Trip 62 12.4
3 Holiday 130 51.8
4 Educational 90 18
Total 500 100
Table 4: Purpose of Travel

Figure 4: Purpose of Travel

Social Trip
11%
Business Trip
20%
Holiday
41%
Educational
28%
Purpose of Travel
Social Trip
Business Trip
Holiday
Educational

60

Statement 5: What in general attracts you to a destination?

Type of Products Avg. no. of tourists Total %age of tourists
Pilgrimage 44 34.64
Adventure Sports 17 20.42
Recreational Activity 50 46.71
Heritage 9 4.11
Eco Tourism 31 24.02
Education Tours 38 27.41
Accommodation 28 22.73
Table 5: Tourists seeking most of the information

Figure5: Tourists seeking most of the information
Interpretation: As shown above, the maximum flow of tourist . 46.71 % of total tourists
seek information for recreational activities in Himachal. Pilgrimage experiences the
0
50
Total no. of tourists

61

34.64% of total tourist’s flow very month. Rest of the 20.42% of the total tourist’s flow is
witnessed by the other tourism products.
Statement6: Which type of Communication Media you use to gather information to
plan your travel?
Sr
no.
Media No. of Tourists %age
1 Word of mouth 155 31
2 Print Media 95 19
3 Broadcast 40 8
4 Internet 210 42
Total 500 100
Table 6 : Total number of modes of communication used

Figure 6 : Total number of modes of communication used
Interpretation: It includes all the means of communications used by tourists in order to
get relevant information. For this HPTDC’s Information Centers plays an important role.
Around 35.43% tourists visit to the centers personally in order to get complete and relevant
information. It also provides telephone service and 40.94% of queries of tourists are
resolved on telephone. Except these services HPTDC also adopted the internet facility in
order to make its wide range of customers satisfied. Around 23% tourists fulfill their need
of information through the internet facility and mobile apps.
Word of
Mouth, 31%
Print Media,
19%
Broadcast, 8%
Internet, 42%
Mode of communication
Word of
Mouth
Print Media
Broadcast

62

Statement7: What mode of transportation do you opt ? Rate them(1-3) on the basis
of your preference.

Sr
no.
Transportation No. of Tourists %age
1 Buses 135 27
2 Volvo 50 10
3 Rail 100 20
4 Car Hire 40 8
5 Own Transport 155 31
Total 500 100
Table 7 : Average number of modes of Transportation used

Figure 7 : Average number of modes of Transportation used

Interpretation: It is identified that 31.4 per cent of the tourists travel by own vehicle and
24.8 percent of the tourists travel by tourist bus. It is found that majority of the
tourists use the own vehicle for traveling purposes. It is found that 29.4 percent of the
tourists choose the mode of transport for family convenience and 21.6 percent of the
tourists choose Rail, the mode of transport for enjoyment of nature.
Buses, 27%
Volvo Buses,
10%
Rail, 20%
Car Hire, 8%
Own Transport,
31%
others, 4%
Mode of Transport
Buses
Volvo Buses
Rail
Car Hire
Own Transport
others

63

Statement 8: Method of booking tickets for travel
There are different ways in which the tourists book ticket for travel such as
direct spot, direct advance, travel agent and online.
Sr
no.
Method of Booking Frequency %age
1 Spot 125 25
2 Travel 90 18
3 Online 175 35
4 Advance 110 22
Total 500 100
Table8 : Method of booking tickets for travel

Figure8 : Method of booking tickets for travel
Interpretation: For statement 9 which highlights that 34.6 per cent of the tourists book
tickets by online booking and 18 per cent of the tourists book tickets by travel agent. About
22.2 per cent of the tourists book tickets in advance and 25 per cent of the tourists book
Spot booking
25%
Travel agent
18%
Online booking
35%
Advance booking
22%
Ticket Booking
Spot booking
Travel agent
Online booking
Advance booking

64

tickets by spot booking. It is pretty to mention here that majority of the tourists book
ticket by online booking.
Statement9: Accommodation attributes that you consider the most during your stay?

Sr
no.
Type of Product
Accommodation
Avg. no of
tourists
percentage
1 Hotel 152 30.29
2 Resort 98 19.60
3 Cottages 60 11.90
4 Log Hut 109 21.70
5 Holiday Village 18 3.50
6 Lodge 133 26.60
7 others 18 3.50
Total 500 100
Table 9: Tourists seeking accommodation facility

Figure 9: Tourists seeking accommodation facility
Interpretation: For statement 6 which highlights, majority of the sample tourists i.e. 30
per cent stay in the hotels, 26.60% stay in private lodge and 21 per cent of the tourists stay
in Log Huts which is most preferred accommodation in himachal tourism and way to
encourage rural tourism or eco tourism. 20 percent stay in resorts for fun and entertainment
experiences. Minority of tourist also facilitates holiday village, also know as stay home
facility.
Hotel Inn,
30.80%
Resorts, 19.60%
Cottages,
11.90%
Circuit houses,
26.60%
Holiday village,
3.50%
Log Huts,
21.70%
others, 3.50% Hotel Inn
Resorts
Cottages
Lodge
Holiday
village
Log Huts
others

65

Statement10: What kind of accommodation suit did you choose?
Sr
no.
Suit Type No. of Tourists %age
1 Premium 35 7
2 Deluxe 62 34.4
3 Economy 130 47.8
4 Dormitory 90 18
Total 500 100
Table10 : Accommodation Suit visitors opinions

Figure10 : Accommodation Suit visitors opinions
Interpretation: It is identified that 47.8 percent of the tourists’ opinion about the cost of
accommodation is costly, 34.4 percent of the tourists’ opinion about the cost of
accommodation is normal and the remaining 17.8 percent of the tourists opinion about the
cost of accommodation is cheap. It is found that 60.2 percent of the tourists have good
opinion about the accommodation and 26.4 percent of the tourists have satisfactory
opinion in the accommodation. It is identified that majority of the tourists have good
opinion about the accommodation.

0 20 40 60 80
Premium
Economy
Dormitory
Deluxe
Avg no. of tourists
Percentage of tourists

66

Tourist buying behavior towards products/ services:
Statement 11: Which activities interest you the most during tours ?

Activity Type Total no. of tourists Avg. no. of tourists
Site-seeing 30 40.10
Cuisine 14 23.64
Folk Festivals 4 5.73
Theme Parks 10 20.94
Eco tourism 9 12.03
Camping 11 19.63
Adventure sport 22 30.90
Golf 2 4.99
Handicrafts 7 10.73
Family friendly
activities
11 20.11
Table11: Activity attractions among tourists

Figure11 : Products/Services used by tourists
0
10
20
30
40
50
Total no. of tourists
Avg. no. of tourists

67

Interpretation: It is identified that majority of the sample tourists had given top rank to
site-seeing as the popular tourism products. Majority of the sample tourists had given
top rank to adventure sport as the most preferred tourism product in hills. It is
identified that the sample tourists had given last rank to religious festivals.

Statement 12: To What extent do the following elements motivate you to
choose a trip?
Motivational factors that drive tourist to a destination and even tourist products usage also
drive them to other attractions for exploring new attractions or revisiting. These factor is
mainly due to pull and push stimuli of consumers.

sr Motivation factors No. of Tourists %age
1 Popularity of
destination/ attraction
99 19.8
2 Escape from daily
routine
113 22.6
3 Adventure 93 18.6
4 Past experience/
Familiarization
30 6
5 Temples 53 10.6
6 Health & rejuvenation 85 17
7 Relaxed atmosphere

27 5.4
Total 500 100
Table12: motivational factors among tourists

68

Figure12 : motivational factors among tourists
Interpretation: The table12 clearly shows that 22.6 percent of the tourists are highly
motivated by something new and different to do and escape from daily routine. Maximum
tourists are driven by popular destination and attractions of a place i.e. 19.8 percent.
Adventure and health are also motivating factors for tourist 18.6% and 17percent. Rest are
temples and atmosphere.

0 50 100 150
Popularity of destination/…
Escape from daily routine
Adventure
Past experience/ Familiarization
Temples
Health & rejuvenation
Relaxed atmosphere
%age
No. of Tourists

69

Statement 13: How far do the following elements influence your travel planning?
Strongly
Disagree
Disagree Undecided Agree Strongly
Agree
1 2 3 4 5

Sr
no
.
Elements Disagree Undecide
d
Agree
1 2 3 4 5
1. I plan my travel 10 1 1 1 51
2. Approach travel
agent to plan my
visit
25 1 11 35 50
3. I don’t plan, prefer
traveling
impulsively
6 1 1 2 1
4. Tourism products
encourages me to
discover other
tourist activities
20 1 10 20 49
5. Discount/offers
motivates me to
travel
20 23 1 20 34
6. I visit only Popular
places
40 30 1 10 10
7. I am an explorer 15 17 12 45 20
Table13 : elements influence travel plans

70

Figure13 : elements influence
Interpretation: The table13 clearly shows that 55 percent of the tourists plan their visit
before visiting. Minority of visitors agree upon visiting places impulsively. Maximum
tourists strongly agree that they let travel agents plan their visit 5o percent. Many 49 of the
tourist also agree that tourist products influences them to discover other tourist activities.
Which shows that one product motivates consumers to experience variety of other
services/products. 34 to 20 visitors also agree that special package offers influences their
buying behavior. While 40 to 23 disagree with the statement. 45 to 20 tourist personality
are of type, explorer. The above analysis clearly indicates that visitors plan their visit and
look for cost effective measures.

0 20 40 60
I plan my travel
Approach travel agent to plan my visit
I don’t plan, prefer traveling impulsively
Tourism products encourages me to…
Discount/offers motivates me to travel
I visit only Popular places
I am an explorer
5
4
3
2
1

71

Statement 14: According to you which of the following attributes are important for
selecting a tourists’ destination?
Type of attributes Avg. no of
tourists
percentage
1 Service quality 30.29 152
2 Location 22.60 98
3 Physical Attributes 11.90 60
4 Tour package offers 26.60 133
5 Value for money

3.50 18
6 Safety & security

21.70 109
Total 500 100
Table 14: selecting a tourists’ destination

Figure 14: selecting a tourists’ destination
Interpretation: It is inferred from the table that service quality highlights knowledgeable
to recommend product/trending tourist spot, appearance of employees, amenities, decors
etc. majority of the sample tourists i.e. 30.29 percent say, 22.60% say hotels should be
0
20
40
60
80
100
120
140
160
Avg. no of
tourists
percentage

72

centrally located for easy access to tourist attractions, transportation etc. Safety is another
important factor.

PROBLEM IDENTIFICATION IN AVAILING PRODUCTS/SERVICE S:
Statement15: Visitors’ Opinion about the services
Sr
no.
Visitors’ opinion Rank Average no. of
tourist
1 Poor V 10
2 very poor IV 50
3 Average III 173
4 Good II 126
5 very good II 90
Total 500
Table 15: Tourist opinions

Figure 15: Tourist opinions
Interpretation: Travelers have positive opinion about tourism products. Minority of
tourists have average views.

90
126173
50
10
Tourists opnions
Very good
Good
Average
Poor
Very poor

73

Statement16: Problems faced by visitors with Tourism Information Centers
Few percentage of tourists face problems in availing of Tourism Products and service
quality.
Sr
no.
Problems faced Average no. of Tourist

Yes No
1 contact the centre easily 90 10
2 Reservations problems
during peak season
75 25
3 Lack of adequate publicity 60 40
4 Provision for Helpline
numbers
97 3
5 Impolite behavior of staff 5 95
Table16: Problems faced with information centers

Yes (Y)
31%
No (N)
69%
information centres problems

74

Interpretation: Location and easy access to information centers is necessary for
development and promotion. All tourism information centers are centrally located
within state. Maximum tourist experience problem for advance bookings due to heavy
tourist inflow during peak seasons. A no. of visitors at all the centers felt lack of
adequate publicity and display of sign boards etc. about the location of the centre.
Hence there is a need for publicity of all these centre with neon sign boards, posters
along with address, arrows sign and phone number (if installed) so that tourist can
contact the centre easily.
Statement17: What kind of problems have you faced during intercity travel?
Tourists face different kinds of problems in getting preferred mode of intercity travel or a
short distance travel. The problems are exorbitant charges, poor services and bargaining,
poor time schedule and breakdown of vehicles, non-availability of reservation.

Sr no. Problems Faced No. of Tourists %age
1 Poor service 54 10%
2 Overcharges 144 35%
3 Bargaining 87 25%
4 Problem in reservation 71 19%
5 Poor time schedule 38 7%
6 Breakdown of vehicles 20 3%
Total 500 100
Table17: Improvement required in tourism products

0% 10% 20% 30% 40%
Poor service
Bargaining
Poor time schedule
Breakdown of vehicles
Overcharges
Problem in reservation
10%
25%
7%
3%
35%
19%
%age

75

Figure17 : Improvement required in tourism products

Interpretation: It is identified that majority of the tourists face the problem of overcharges
35% and bargains 25%. For the Intercity travel overcharges for hiring a taxi is the main
problem faced by visitors. Reservation problems occurs during peak seasons.

Statement18: Kinds of problems faced by visitors in Visiting places - Garretts Ranking
Method
Sr
no.
Problems Average Rank
1 Inadequate Parking facilities 75 I
2 Poor maintenance of tourism products 60 II
3 Impolite behavior of Taxi owners 57 II
4 Environmental pollution 50 III
5 Impolite behavior of hotel staff 16 IV
6 Insufficient Transport facilities 12 IV
7 Inadequate Banking facility 7 V
8 Problem caused by shop owners 8 V
Table18 : Problems faced

0
20
40
60
80
I
II
II
III
IV
IV
V
V
Average
Problems

76

Figure18 : Problems faced

Interpretation: It is inferred from the table that majority of the sample tourists had given
top rank to problems of parking facility in the visiting places. It is found that majority
of the tourists use their own vehicle for traveling purposes. They choose this mode for
family conveniences. The table also shows that the sample tourists had given second rank
to exploitation by taxi drivers. The table further shows that the sample tourists had
given third rank to environmental pollution. It is further clear from the table that the
sample tourists have given last rank to insufficient transport facilities. It is identified that
the tourists are highly satisfied with the shops and banking facility. Only 8 per cent of the
tourists are highly dissatisfied with the shops.

Statement19: According to you which of the following attributes should be
improved ?
Sr
no.
Improvement Avg. no. of
Tourists
%age
1 Service standards 21 39.6
2 accessibility 10 18.9
3 Personal equipment 16 25.1
4 Suggestive selling 12 22.6
Total 50 100
Table 19 : Improvement required in tourism products

77

Figure19 : Improvement required in tourism products
Interpretation: It is identified that majority 40 percent of the tourists have good opinion
about transport. Service standard require improvements 30 percent are of this opinion.
Selling techniques has been improved a lot since past five years in tourism industry. But
suggestive selling techniques such as word of mouth, broadcast and print medium can still
be improved. Online facilities have shown a tremendous development in marketing of
tourism products and is the best selling technique.

EXPENDITURE PATTERN OF THE PACKAGE TRIPS :
Distribution of Total expenditure on a package trips by tourists on an average. The
expenditure pattern of the tourists regarding accommodation, food & beverages,
transportation, recreation, and other miscellaneous expenditure is presented below:
Statement 20: How much do you spend on a trip on an average ?
Every tour is a temporary visit. Some of the tourists go on tour every year as a regular
practice. Such people spend more money on tour. But other tourists go occasionally
and they spend less amount of money on a trip. The amount spent on a trip varies from
one tourist to another tourist.
0
10
20
30
40
50
60
70
80
90
100
Service
standards
AccessibilityPersonnel
Equipment
Suggestive
Selling
techniques
Avg. no. of Products used
Total no. of tourists

78

Product/service Percentage of
Expenditure
Avg. Expenditure on a
Package Trips
Accommodation 15 16.82
Transport 60 53.64
Food 30 27.73
Entertainment 50 40.94
Medicine 30 27.70
Table20: Average amount spent on a trip

Figure20: Average amount spent on a trip
Interpretation: It is identified that majority 53 percent of the tourists spend much on
transport. 41percent of visitors expenditure occurs on the recreational/ entertainment
activity. A holiday trip is all about enjoying the destination, experience fun. Tourists spend
money for emergency medical treatments. Major attraction of Himachal tourism is
adventure tours, Mountaineering and Allied Sports which involves chances of injuries. But
in the modern techniques of ski training and with advanced equipment the chances of
injuries are greatly reduced as 27percent is spent on medicine and miscellaneous.

0
10
20
30
40
50
60
Percentage of Expenditure
Avg. Expenditure on Package
Trips

79

CONCLUSION
Competition is involved in all observable phenomena of tourism market – the prices at
which products are exchanged, the kinds of the products produced, the quantities sold, the
methods of distribution, and the emphasis placed on promotion. As the research has shown
the comparison between toruist behavior regarding tourism in recent time. Since the
toruist behavior is the important factor to forecast the sales of any product/services in a
particular area. So company should keep close eye on the market situation. yet, customer
were price sensitive, but the changing market trend and customer view and preference
shown that customer are now quality sensitive .They want quality product, good services,
easy availability of products and better performance by the services. These days no of
tourist experiencing tourism products has been increased. Also the frequency to visit the
popular destinations has been increased substantially. This is because of the relatively
higher standard of services provided by hospitality industry and modernization in tourist
destination and varied products offered by tourism industry.
FINDINGS:
The results will help the management in knowing that Tourism market has several
segments whose members have distinctive needs and preferences. Visitors can be put into
groups with similar and identifiable characteristics.
Maximum of the tourist agree that tourist products influences them to discover other tourist
activities. Which shows that one product motivates consumers to experience variety of
other services/products. visitors also agree that special package offers influences their
buying behavior. Many tourist visit places because of their previous experience or
familiarity to the place. The analysis clearly indicates that visitors plan their visit and look
for cost effective measures.
Travel offerings appeal more to some segments than others. Tourism organizations can be
more effective in their marketing by developing specific offers for specific market
segments. The intangible nature of tourism services is that the visitor’s travel experiences
exist only in memory after the trip is over.

80

RECOMMENDATIONS
 One strategic marketing tool capable of generating competitive advantage is market
segmentation.
 Products should be adapted to the desires of large and small sub-groups.
 Measure and evaluate marketing plan results and outcomes.
 Limited financial resources make promoting and advertising the services offered very
challenging.
 The marketing planning process should be accelerated for the development.
 Modern approaches should be used in marketing tourism destinations, organizations and
their products/services than traditional approach.
 Organizations should keep a close eye on competitor strategy.

Suggestions:
 A no. of visitors at all the centers felt lack of adequate publicity and display of sign
boards etc. about the location of the centre. Hence there is a need for publicity of all
these centre with neon sign boards, posters along with address, arrows sign and phone
number (if installed) so that tourist can contact the centre easily.
 The corporation should try to avoid taking projects, which have location disadvantage
like projects in remote areas because it leads to ignorance on parts of tourist as they
avoid going out of city.
 The corporation should not be so much dependent on income from liquor/bar sale. It
should try to find out some other good sources of income.
 There are certain areas of Himachal, which have customs and events, which are unique
and peculiar to that particular region. These events if promoted properly have the
potential to attract large number of national and international tourists. All these
attractions make Himachal a state with varied products and attractions. Corporation
should tie up with private players of tourism sector to develop himachal tourism.

81

LIMITATIONS OF THE STUDY

The probable limitations of this study are as under :
 The first and foremost limitations was time constraint which was only two months,
but still efforts have been made to put the picture as clear and candid as possible.
 Samples were randomly selected as per convenience so error is bound to creep in the
observation.
 Limited focus area: This study is concentrated only on the consumer side.
 Limited number of participants: The number of participants was restricted to 45,
and the sample was a judgmental sample. The lack of random selection and the
small sample prohibited generalized results. ·
 Lack of the information of price: No price was given in the study to prevent biasing
the expectation of the study. This omission became a weakness because participants
expected to know a price range and found the omission also influenced their
experience
 The conservative attitude of the respondents was a limiting factor in gaining
information.

82

BIBLIOGRAPHY

JOURNALS:
 Annual Report of HPTDC(2013-14), july 2015
 Results-Framework Document (RFD) for Himachal Pradesh Tourism Development
Corporation-(2012- 2013)
 Analysis of Tourist Behaviors: A Conceptual Framework Based on Hofstede’s
Cultural Dimensions, Lalita A. Manrai, Ajay K. Manrai (University of Delaware,
USA), 2009 Oxford Business & Economics Conference Program, ISBN : 978-0-
9742114-1-1
BOOKS:
 MARKETING MANAGEMENT, AUTHOR PHILIP KOTLER, EDITION 14E, PEARSON PUBLICATION,
SECOND IMPRESSION 2014, PAGES REFERRED 133-154
WEBSITES:
 HPTDC Official website (http://hptdc.nic.in/)
 Himachal Tourism website (www.himachaltourism.gov.in)
 Tourism-in-himachal-pradesh.pdf
 www.publisishingindia.com
 http://www.performance.gov.in/sites/default/files/document/states/Himachal%20Pr
adesh/rfd-2012-13/Tourism%20Develoment%20Corpn.pdf
 http://rem-main.rem.sfu.ca/theses/SmithKim_2001_MRM284.pdf
 https://theseus.fi/bitstream/handle/10024/60375/Thesis_Saroj.Pradhan.pdf?
sequence=1
 http://india.gov.in/topics/travel-tourism
 http://iato.in/
 Future-of-tourism.pdf

83

APPENDIX
LIST OF TABLES
SR.
NO.

Name of Table
PAGE
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11
12
13
14
15
16.
17
18
19
Table-1: Age group
Table2: Seasons witness maximum tourist flow
Table 3 : Total number of a tourist in a month
Table 4: Purpose of Travel
Table 5: Tourists seeking most of the information
Table 6 : Total number of modes of communication used
Table 7 : Average number of modes of Transportation used
Table8 : Method of booking tickets for travel
Table 9: Tourists seeking accommodation facility
Table10 : Accommodation Suit visitors opinions
Table11: Activity attractions among tourists
Table12: motivational factors among tourists
Table13 : elements influence travel plans
Table 14: selecting a tourists’ destination
Table 15: Tourist opinions
Table16: Problems faced with information centers
Table17: Improvement required in tourism products
Table18 : Problems faced
Table 19 : Improvement required in tourism products
50
52
53
55
54
55
56
57
58
59
60
61
63
65
66
67
68
69
70
72

84

LIST OF FIGURES

SR.
NO.

Title of Figures
PAGE
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11
12
13
14
15
16.
17
18
19
Figure-1: Age group
Figure2: Seasons witness maximum tourist flow
Figure 3 : Total number of a tourist in a month
Figure 4: Purpose of Travel
Figure 5: Tourists seeking most of the information
Figure 6 : Total number of modes of communication used
Figure 7 : Average number of modes of Transportation used
Figure8 : Method of booking tickets for travel
Figure 9: Tourists seeking accommodation facility
Figure10 : Accommodation Suit visitors opinions
Figure11: Activity attractions among tourists
Figure12: motivational factors among tourists
Figure13 : elements influence travel plans
Figure 14: selecting a tourists’ destination
Figure 15: Tourist opinions
Figure16: Problems faced with information centers
Figure17: Improvement required in tourism products
Figure18 : Problems faced
Figure 19 : Improvement required in tourism products
50
52
53
55
54
55
56
57
58
59
60
61
63
65
66
67
68
69
70
72

85

QUESTIONNAIRE

Personal Information
Name :
Age :
Gender :
City :
Occupation :
Your Income Level ( per annum ) :
□ Upto 2 lac
□ 2.5 lac-5 lac
□ 5.5 lac - 10 lac
□ 10.5 lac- 34 lac
□ 35 lac and above
□ Not earning presently

Q1) How often do you travel outstation ?
□ Once in a Year
□ Once in 6 Months
□ Once in 3 Months
□ Every Month
□ Every Week
Q2) What form of advertising is more effective to you?
□ Internet

86

□ Travel Agent
□ Tourist Information Centre
□ Print Media
□ Word of Mouth

Q3) What is most common purpose of your travel ?
□ Family Vacation
□ Adventures
□ Business
□ Pilgrimage
□ Heritage
□ Education

Q4) What mode of transportation do you opt ? Rate them(1-3) on the basis of your
preference.

□ Own Transport
□ Car Hire
□ Tour Bus
□ Bus
□ Train
□ Airplane
□ Ship

Q5) What kind of accommodation suit did you choose?
□ Premium
□ Deluxe
□ Economy
□ Resorts
□ Dormitory
□ Camping/Caravan

87

Q6) According to you which of the following attributes are important for selecting a
tourist's destination? Rank(1-5)
□ Service quality (e.g. appearance, amenities, decors, knowledgeable to recommend
product/trending tourist spot)
□ Location (e.g. location of hotel)
□ Physical Attributes (e.g. atmosphere of hotel, spacious layout, water & lighting)
□ Tour package (e.g. discounts for repeat customer, extended hours of operation)
□ Value for money
□ Safety & security

Q7) Which activities interest you the most during tours ?
□ Site-seeing
□ Cuisine
□ Folk Festivals
□ Theme Parks
□ Eco tourism
□ Camping
□ Adventure sport
□ Golf
□ Handicrafts
□ Recreational activities

Q8) To What extent do the following elements motivate you to choose a trip?

88

□ Popularity of destination/ attraction
□ Escape from daily routine
□ Adventure
□ Past experience/ Familiarization
□ Temples
□ Health & rejuvenation

Q 9) How far do the following elements influence your travel planning?
Strongly
Disagree
Disagree Undecided Agree Strongly
Agree
1 2 3 4 5

□ I plan my travel
□ through travel agent
□ prefer impulsive travel
□ tourism products influences to discover other tourist activities
□ discount/offers motivates me to travel
□ I visit only Popular places
□ I am an explorer

Q 10) What kind of problems have you faced during intercity travel?

□ Inadequate Parking facilities
□ Poor maintenance of tourism products
□ Environmental pollution
□ Advance Booking
□ Overcharges & Bargaining
Q11) Have you used any online travelling website/App ?

89

If so, .........................................................
Q12) How much do you spend on a trip on an average ?
□ Upto 5,000
□ 5,000 – 15,0000
□ 15,000 – 25, 000
□ Above 25,000

Thank you for taking the time to complete our questionnaire. Your input is important to us and
we value your comments and contribution.

Himachal tourismhptdc ltd

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