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A PROJECT REPORT ON

MARKET ANALYSIS OF TOUR PACKAGES & BUSINESS DEVELOPMENT IN COLLABORATION WITH THE AGENTS

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

At IILM, Gurgaon, Haryana

Submitted to:

Submitted by:

IILM-Gurgaon Haryana-122003 PGS20090063

ABDUL WADOOD Registration no.:

Batch: PGP (2009-2011)

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

INDEX
Serial no. 1. 2. 3. 4. 6. (a) (b) (c) (d) (e) (f) (g) (h) 8. (a) 9. (a) (b) (c) (d) (e) 7. 10. (a) Particulars Summer Internship Declaration Form Acknowledgement Executive Summary INTRODUCTION-Tourism in India INTRODUCTION-IRCTC: Company Profile Mission & Vision and Objectives Organizational Structure Manpower Financial performance Contribution to Revenue to the Railways Main Business Activities Future Plans Brief Introduction- Rail Tour Package Rail Tour Packages running from Delhi Origin History of Works performed at the IRCTC Call handling Attending the customers visiting to the Facilitation Center Meeting with the Agents Making calls to the agents on Pan India Basis Conducted agent survey to understand the market for the tour packages provided by the IRCTC SWOT Analysis of IRCTC Project Introduction Objective & Scope Page no. 4 5 6 7-8 9-16

17-24 25

26 27

INDEX
11. (a) (b) 12. 13. 14. Methodology-Data Collection 28 Primary Data Secondary Data Data Analysis 29-42 Findings & Conclusion 43 Suggestions & Recommendations 44-45 IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

15.

Bibliography

46

Declaration Form
I, ABDUL WADOOD do hereby declare that the Project work entitled,
MARKET ANALYSIS 0F TOUR PACKAGES AND BUSINESS DEVELOPMENT IN COLLABORATION WITH THE AGENTS

Submitted by me towards for the partial fulfillment of the Post Graduate Program (PGP) to IILM Institute for Higher Education, is my own original work and has not been submitted earlier either to IILM or to any other Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or others. Place : New Delhi 3

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

Date

: 02-06-2010

Signature of Student: Name of Student: Abdul Wadood Address: Maulana Azad Chowk, Mehsaul, Sitamarhi, Bihar-843302

ACKNOWLEDGEMENT An exploratory study like this is never the outcome of the efforts of a single person and I would like to express word of thanks to all those whose sincere advice and information has made this project report an educative and informative one. It gives me immense pleasure to take this opportunity to thank all those who helped me in successfully completing this project. First of all I owe a huge debt of thanks to IRCTC (Indian Railways Tourism & Catering Corporation Ltd.) which gave an opportunity to do my 8 weeks internship as well as help to learn the corporate culture. Gracious help from various sources have contributed tremendously towards the completion of this project work. With all my dedication and regards I take this opportunity to express my profound sense of gratitude to: Mr. Arun Srivastava-JGM/Tourism, Mr. Pradeep Dhiman-DGM/Tourism, IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 4

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

Ms. Shweta Singh-Assistant Supervisor/Tourism, and Mr. Raushan Jha-Executive. IRCTC Tourism Facilitation Centre, Jawahar Vyapar Bhawan, Janpath New Delhi-110001 I am extremely thankful to Ms. Geeta Mittal-Manager (Placements), IILM Institute for Higher Education-Gurgaon, Haryana for her timely guidance, support, advice and cooperation during the completion of this project. Last but not the least, I pay my sincere gratitude to the Almighty who always showers his blessings on me & gives me the courage & potential to do good work.

dul Wadood

Ab PGS20090063

EXECUTIVE SUMMARY
Tourism is an engine of economic growth in India. Tourism Sector is estimated to contribute more than 6% to the GDP & more than 9% to the employment. Indias tourism sector is witnessing an unprecedented growth, backed by the increase in purchasing power of the Indian middle class, arrival of highspending foreign tourists as well as powerful government campaigns being run promoting India as Incredible India. Travel & tourism industry in India is marked by considerable government presence. Each state has a tourism corporation, which runs a chain of hotels/ rest houses and operates package tours, while the central government runs the India Tourism Development Corporation. IRCTC being the subsidiary of Ministry of Railways has all the reasons to cheer up. It is a public sector enterprise incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 5

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

budget hotels, special tour packages, information & commercial publicity and global reservation systems. IRCTC launched travel packages in 2007 and offers 104 rail tour packages and 158 holiday packages at present. While the rail tour packages are inclusive of confirmed rail travel, the holiday packages provide for alternative modes of transportation, apart from regular lodging and dining facilities. IRCTCs revenue from tourism has increased over 200 per cent since 2007. But still it is only 0.09% of the total market share, which is not that impressive. India is a potential market for the tour packages, & IRCTC can make most of it. As it is the subsidiary of ministry of railways having Rail Tour Packages as a point of difference. People still prefer to travel by train over other modes of transportation & as far as Airlines are concerned they are very costly & out of budget for many individuals. So, if IRCTC wants to increase its market share it has to very strategically plan its marketing activities and use its powerful agent force to promote & sell its packages. E- Ticketing agents do have many clients & they do deal with thousands each month, what more could be better than this for IRCTC to reach the wide spread consumer base for its tour packages. The only thing needed is to make them aware, informed & motivated to reach the targeted market share of 1% till the end of 2015.

Introduction- Tourism in India


Tourism is an engine of economic growth. In India, Tourism Sector is estimated to contribute more than 6% to the GDP & more than 9% to the employment. The news of normalcy returning to the Global economies has given all the reason to cheer up & expect the buoyancy to return soon to the Indian Tourism Industry. The bad economic phase is clearly out, at least for Destination India that has bounced back in style. Indias tourism sector is witnessing an unprecedented growth, backed by the increase in purchasing power of the Indian middle class, arrival of high-spending foreign tourists as well as powerful government campaigns being run promoting India as Incredible India. The Foreign Tourist Arrivals (FTAs) figures during the first 3 months have shown an encouraging trend. December, 2009 has witnessed an unprecedented rise of 21% growth in comparison to the corresponding period during the previous year. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 6

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

The Foreign Tourist Arrivals (FTAs), during the Month of March 2010, grew 12.9% at 4.72 Lakh as FTA of 13.86 lakh in January-March 2009. The Indian tourism industry is incredibly vibrant. In fact the country is fast acquiring the image of a major global destination. Further, travel and tourism industry is one of the most lucrative industries in India, bringing in substantial amount of foreign currency. This is demonstrated by the fact that during 2006, four million tourists visited India and forked out not less than US $8.9 billion. Many reasons are being cited for the growth and prosperity of Indias travel and tourism industry. Indias rising economy has already added up millions annually to Indias middle class, a group thats been driving domestic tourism. Medical Tourism is yet another sunrise sector associated with the tourism industry of India. The sector is currently growing at the rate of 30 percent per annum. Tourists focusing on Indian medication are expected to reach one million soon. Moreover disposable income has scaled up by 10.11 percent annually from 20012006 and major part of it is spent on travel.

Furthermore, the booming IT and outsourcing industry has obliged many foreigners to visit India on business purposes. And more often than not these foreigners end up extending their trips. According to an industry source, foreign tourists are known to spend more time in India than elsewhere. The influx of foreign tourists is projected to increase by over 22 percent on an annual basis, with a 33 percent increase in foreign exchange earnings recorded in 2004. Travel & tourism industry's contribution to Indian industry is immense. Tourism is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in India both directly and indirectly through its linkage with other sectors of the economy. According to an estimate total direct employment in the tourism sector is around 20 million. The buoyancy in the Indian tourism industry can be attributed to several factors.

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

Firstly, the tremendous growth of Indian economy has resulted in more disposable income in the hands of middle class, thereby prompting increasingly large number of people to spend money on vacations abroad or at home. Secondly, India is a booming IT hub and more and more people are coming to India on business trips. Thirdly, aggressive advertising campaign "Incredible India" by Tourism Ministry has played a major role in changing the image of India from that of the land of snake charmers to a hot and happening place and has sparked renewed interest among foreign travelers.

COMPANY PROFILE-IRCTC LIMITED Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a Public Sector Enterprise under Ministry of Railways. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on trains and other locations and to promote domestic and international tourism through development of budget hotels, special tour packages, information & commercial publicity and global reservation systems. While discharging its mandate, the Company has made a significant mark in its passenger-services oriented business lines like setting up of Food Plazas on Railway premises, Railneer', Rail Tour Packages and Internet Ticketing' bringing great deal of professionalism into the operations. In addition to above, IRCTC is managing On Board Catering Services in Rajdhani / Shatabdi / Duronto and Mail / Express Trains and Static Catering Units such as Refreshment Rooms, AVMs, Book Stalls, Milk Stalls, Ice- cream Stalls, Petha & Peda Stalls etc. across the Indian Railway Network. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

IRCTC launched travel packages in 2007 and offers 104 rail tour packages and 158 holiday packages at present. While the rail tour packages are inclusive of confirmed rail travel, the holiday packages provide for alternative modes of transportation, apart from regular lodging and dining facilities. IRCTCs revenue from tourism has increased over 200 per cent since 2007. Depending on demand, IRCTC constantly modifies and diversify the range of travel products to expand business. It has recently introduced packages for school trips, Tandon explained. Body Text + Left: 0.39", Right: 0.39" Indian Railway Catering and Tourism Corporation Ltd (IRCTC) plans to nearly double its revenue earnings from tourism services during this financial year. Last fiscal, IRCTC had earned Rs 29 crore from tourism packages; this year, it is expected to grow to around Rs 56 crore, said Rakesh Tandon, managing director. IRCTC is also looking at measures to boost bookings on its tourist train, Mahaparinirvana Express. In 2008-09, 484 passengers had availed of the tour on the Buddhist circuit. This year, IRCTC hopes to make at least 1,000 bookings on the train. It further plans to operate its first pan-India luxury tourist train, Maharajas Express, in collaboration with Cox and Kings.

MISSION & VISION "Enhance customer services and facilitation in railway catering, hospitality, travel and tourism with best industry practices." IRCTC has several objectives to accomplish from being quality controlled and customer oriented to being sensitive to necessary changes. The organization is obligatory to be very alert of the heritage and environment of the voyage and augment the same by means of innovative marketing. IRCTC is anticipated to increase the services effectiveness provided by means of private-public partnerships. OBJECTIVES o To be a customer friendly company through constant innovation, technology driven and human resource development. o Optimize resources, increase manpower productivity through quality product vending and innovative marketing strategies. o Upgrade and consolidate catering services in the organized sector. o Expand areas of core competencies; enhance business opportunities through efficient public - private partnerships to maximize generation of resources. o Imbibe strong and ethical work culture through teamwork, build and reposition Indian Railways in the emerging services sector. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 9

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

o Evolve high standards of business ethics, quality management and effective cost control measures. o Concern for the environment and heritage. ORGANIZATION STRUCTURE Corporate Office of IRCTC is situated at New Delhi, which is headed by the Managing Director. Managing Director is being assisted by three Directors, Director (Catering Services), Director (Tourism & Marketing) and Director (Finance), and nine Group General Managers. For smooth operations of the business across all over the country, five Zonal Offices are working at Delhi, Kolkata, Mumbai, Chennai and Secunderabad. South Zone Office is headed by Regional Director and all other Zonal Offices are headed by Group General Managers. These Zonal Offices are assisted by ten Regional Offices at Lucknow, Chandigarh, Jaipur, Bhubneshwar, Guwahati, Patna, Bhopal, Ahemedabad, Bangalore and Ernakulam, which are headed by Chief Regional Managers / Regional Managers. MANAGEMENT OF IRCTC NAME DESIGNATION / DEPT S.No. Mr. Rakesh Managing Director Kr.Tandon 2. Dr. Nalin Shinghal Director (T & M ) 3. Mr. Vinod AsthanaDirector Catering Services Mr.Vishwa Ranjan Director Finance 4. Gupta 5. Mr. Aneet Dulat GGM-Corporate Services GGM- Departmental Catering Services 6. Mr. N.P. Singh GGM-P & Q 7. Mr. Prem Narayan GGM-Services 8. Mr. Vineet Singh Mrs.Vandana GGMTourism & CVO 9. Bhatnagar GGM Information Technology Services 10. Mrs Rajni Hasija 11. Mr.Shivraj Singh GGM-Licensed Catering Services IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 1.

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

12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Mr. Mahindra. P. Mall Mr. A. K. Jain Mr. R.S. Bhiodnia Mr. Sanjay Agarwal Mr. Pankaj Motwani Mr. Rakesh Gogia Mr. Pankaj Malhotra Mr. Rajiv Gupta Dr. S. R. Iyer Mr. Arun Srivastava Mr. R. K. Malhotra

GGM-Finance GGM-Railneer GGM-Infrastructure GM-Operations AGM-Information Technology AGM & Company Secretary AGM- Finance AGM- Tourism JGM-Civil JGM-Tourism JGM-HRD

MANPOWER: At present IRCTC have 4453 employees (as on 31st December, 2009) on its roll. The employees comprise of IRCTC Direct Employees, Deemed Deputation absorbers, Deemed Deputations, deputations and fixed term employees. For bringing professionalism in the work culture, IRCTC has recruited professionals in different field like HR, Tourism, Catering and Finance, through direct recruitment or campus recruitment. FINANCIAL PERFORMANCE During the year 2008-09, the Corporation achieved a total income of Rs. 618.77 Crores as compared to Rs. 527.66 Crores in 2007-08 thereby registering a growth of 17.30 %. The increase was achieved in spite of the fact that bed roll and cleaning business has been transferred back to Railways. The major increase in the income in the year 2008-09 over previous year was achieved due to licensed catering (from Rs. 289.20 Crores to Rs. 341.02 Crores), quantum jump in internet ticketing (from Rs. 39.18 Crores to Rs.74.81 Crores) and tourism activities (from Rs. 9.72 Crores to Rs. 27.94 Crores). IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 11

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

The income of licensed catering increased on account of higher number of units put on tender, efficient tendering system and increase in licence fee from static units. Quantum jump in internet ticketing was witnessed due to good marketing efforts, upgraded infrastructure and improved customer care. The growth in tourism business was achieved due to IRCTC's foray into educational tour business, tour package business take over of Bharat Darshan trains by IRCTC. A net profit of Rs. 46.50 Crores was earned during 2008-09 as compared to Rs. 20.75 Crores in 2007-08 due to enhanced revenue and control on expenditure. An amount of Rs.30.00 Crore has been provided as Haulage Charges as was provided during the previous year. As at 31st March 2009, the Reserves and Surplus of the Corporation stood at Rs.94.46 Crore. The Net Worth went up from Rs. 78.85 Crore during the previous year to Rs.114.46 Crore during the year under review. MAIN BUSINESS ACTIVITIES 1. On Board Catering Services and Static catering units on the Indian Railway Network: Hospitality Services covers on board catering services in the trains, catering services at stations through stalls, food plazas/fast food units & Automatic Vending Machines commissioned at A, B & C class of Railway stations. IRCTC is managing currently 19 Rajdhani, 13 Shatabdi, 16 Jan Shatabdi, 6 Duronto Express , 9 Garib Raths, 205 Mail/Express trains and 118 trains have train side vending facility. IRCTC has currently 53 Food Plazas, 13 Fast Food units and 1 Quick Service Food Kiosks, 677 Automated Vending Machine , 2950 Stalls, 3291 Trolleys & Khomchas , 698 Book Stalls, 249 Milk Stall & 7918 Static units spread over 1008 no. of A, B & C Category of Stations over Indian Railways network. 2. Manufacturing Packaged Drinking Water for Indian Railway Passengers: Two plants of Railneer packaged drinking water are operating at Nangloi (Delhi), and Danapur (Bihar). The capacity of the plants was increased from 5,500 cartons per day to 8,500 cartons per day during March, 2009 for Nangloi Plant and during December, 2009 of Danapur Plant. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 12

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

3. New Rail Neer plants: For Southern Region, Rail Neer Plant of 15,000 cartons per day is being set up at Palur near Chennai. Tender has been awarded and physical work for setting up building is in advance stage. For Western region, architect and plant consultants have been appointed for Rail Neer plant at Ambernath near Mumbai. The rated capacity of the plant is 25,000 cartons per day. 4. Managing all India Railway Enquiry Call Centre: IRCTC is managing a Call Center for passenger enquiry. A customer can dial 139 from anywhere in the country and get all information from Call Center related to train timing, PNR confirmation, train routes and other relevant information related to Indian Railways.

5. Running of Special Train, Special Charters / Coach and promotion of Value added tours: Railway Tourism has seen excellent growth in India Right from IRCTC's inception, IRCTC have undertaken dynamic marketing strategy with major tour operators and State Tourism as our partners for providing exclusive tour packages across the country. At present IRCTC is providing following Tourism services across India: A. Buddhist Circuit Special Train IRCTC has designed a train for the Buddhist Circuit keeping in mind the profile of Buddhist tourists. It covers important sites connected to life of Buddha, Bodh Gaya , Sarnath , Kushinagar , Lumbini , Shravasti , Rajgir , Nalanda. The train offers comprehensive on board and off board services comprising of catering, housekeeping, hotel accommodation, road transport, sightseeing, trained tourist guides, security, medical facilities, insurance etc. all inclusive in the package. This train won the National Tourism Award in Feb., 2009 B. Bharat Darshan Village on Wheels IRCTC is operating Bharat Darshan Village on Wheels Train for Budget Travelers @ Rs 500/- per day (all inclusive packages). The package includes Train journey, accommodation, road transport, site seeing, meals etc. The itineraries range from 7 to 20 days covering major tourist and religious places across India. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 13

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

C. Rail Tour Packages: IRCTC offers all Inclusive packages with confirmed Rail reservation, hotel accommodation, road transportation, meals, sightseeing etc. At present over 70 packages for important tourist destinations across India covering Kerala, Rajasthan, Tamilnadu, Karnataka, Jammu & Kashmir, Uttar Pradesh etc. are being operated. D. Hill Charters: The Steam trains are operated on Darjeeling Himalayan Railway, Kangra Valley Railway, Kalka-Shimla Railway and Nilgiri Mountain Railway. Hill charters showcase the special characteristics of the respective hill sections with heritage stations, seasonal features, breath taking scenery & adventure tourism. IRCTC offers single window value added services.

E. Educational Tours: IRCTC offers Educational Tours Package with rich educational content and in a caring environment for the students of educational institutions across the country. The facility is being used by Kendriya Vidyala Sangathan, Sarva Shiksha Abhiyan of Tamil Nadu and West Bengal and Delhi State Government Schools. F. Tourism Portal: IRCTC's tourism portal www.railtourismindia.com is the fast growing a one stop travel shop and meets all the travel & tourism needs of a tourist. Online booking of tour packages, hotels and Car Rental across the country is becoming increasingly popular through this National Tourism Award winner tourism portal of IRCTC. G. Budget Hotel: IRCTC is planning to develop Budget Hotels through Public Private Partnership. Budget Hotels are to be set up in the vicinity of railway stations for tourists and rail users. These Budget Hotels will provide quality guestrooms with modern facilities, dcor and ambience on affordable prices, choice of food and beverage services and Web enabled reservation system. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 14

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

At present four budget hotels are operational at New Delhi, Howrah, and Puri & Ranchi in the existing buildings. H. Luxury Tourist Train: IRCTC has set up a 50:50 Joint venture Company, Royale India Train Tours Limited (RIRTL) in Participation with M/s Cox & Kings India Limited. RIRTL will run Pan India Luxury Tourist Train. Estimated Cost of the train is Rs.49.48 Crore. The Luxury Train named as Maharajas' Express is owned by IRCTC. Marketing and operation of the Maharajas' Express would be done by RIRTL. The train was officially unveiled at the ITB Berlin in March, 2009. The train has started its commercial operation with effect from 6th March, 2010.

FUTURE PLANS: Some of the initiatives planned for tourism, catering activities and Internet Ticketing are as under: 1. FOR CATERING Strategic tie ups: IRCTC is working towards tie ups in the areas of mobile catering, Rail Neer and product formation. . Static Units: Streamlining of procurement process, standardization of services and automation in base kitchens is the focus area in major static units. New Rail Neer Plants: For Southern Region, Rail Neer plant is being set up at Pulur near Chennai. Tender has been awarded and physical work for setting up building is in advance stage. For Western region, architect and plant consultants have been appointed for Rail Neer plant at Ambernath near Mumbai. Modular Stalls: Replacement of all catering stalls with uniform design of modular stalls is proposed to be undertaken and M/s Jindal Steel is working on a prototype which will give longer life and aesthetic look. Food Plazas/Fast Food Units/Quick Service Food Kiosks: IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 15

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

More than 20 food plazas, 20 Fast Food Units and 5 QSFK are in advance stage of planning. Food Courts: IRCTC is planning to develop food courts at stations with contemporary interior designs. 2. FOR TOURISM: o Launching of a Luxury Tourist Train with pan India itineraries. o Thrust of Educational Tour on All India basis. o Further development of rail tour package business o Strategic tie-ups for promoting tourism o Comprehensive travel services to foreign tourists booking tickets on IRCTC website. o Modernization of IT infrastructure. o Setting up of disaster recovery site. o Increasing the market share from 0.09% to 1% of the total market size till the end of the year 2015. RAIL TOUR PACKAGES AT A GLANCE Railway Tourism has seen excellent growth in India. Right from IRCTC's inception, IRCTC has undertaken dynamic marketing strategy with major tour operators and State Tourism as their partners for providing exclusive tour packages across the country. IRCTC arranges for full train charters, coaches as well as reserved berth programs through regular trains for tourism purposes. During this short period we have been able to provide such facilities to over 50,000 persons. Rail Journey is considered to be the most convenient way of traveling. Rail Travel caters to the need of each & every segment of people. When the people have to travel long distances they prefer rail journey over other modes of traveling. Airlines are also a good mode of traveling, but the limitation is that it is a niche market & doesnt cater to all the segments of the society. On the other hand, road transport is very dominant mode of traveling, but the limitations are that in many areas the roads are congested & of poor quality. Another major problem is the traffic. Hence it takes more time & the journey is tiresome. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 16

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

IRCTC identified this opportunity & developed Rail Tour Packages. The rail tour packages include- confirmed rail journey, stay at hotel, meals, & transfers. Rail Tour Packages are the USP of the IRCTC. Rail tour packages have made traveling more relaxed & comfortable. The IRCTC on regular basis makes some necessary changes in the tour packages. Some packages are taken back & some new packages are introduced or some old packages are revised on time to time basis. As of June, 2010 there are 10 packages running from Delhi origin to various destinations across the country, that of 32 packages in the month of May, 2010.

\ RAIL TOUR PACKAGES RUNNING FROM DELHI ORIGIN (As on June, 2010) 1. NEW DELHI-VAISHNO DEVI PACKAGE: Package Tariff Single Category Occupancy Standard Rs.1484/Comfort Rs.2667/-

Double Occupancy Rs.1248/Rs.2431/-

Triple Occupancy Rs.1170/Rs.2353/-

Child withchild without bed bed Rs.718/Rs.1370/Rs.410/Rs.1077/-

Package Includes: o Journey in Shalimar express in 3AC (Comfort package)& Sleeper class (Standard package) o Transfers from Jammu railway station to hotel and back in (Non -AC Local Bus) o Transfer to Banganga and back in hotel vehicle with yatra slip. o One Breakfast o Services of Escort at Jammu station o Stay at Meridian Hotel(Standard Hotel) 2. VAISHNO DEVI ECONOMY PACKAGE IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 17

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

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

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

3. NEW DELHI-MATA RANI PACKAGE Package Tariff (From Sunday to Thursday) Single Occupancy Double Occupancy Triple Occupancy Child with extra bed Child without extra bed Rs.4631/Rs.3640/Rs.3475/Rs.2045/Rs.1797/Package Tariff (For Friday & Saturday) Single Occupancy Double Occupancy Triple Occupancy Child with extra bed Child without extra bed Rs.5587/Rs.4172/Rs.3936/Rs.2363/Rs.2009/-

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

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

4. SAI DARSHAN DELHI PACKAGE: Package Tariff


Category
Standard Comfort

Double Occupancy
Rs.4050/Rs.6308/-

Triple Occupancy
Rs.3775/Rs.6034/-

Child with bed


Rs.1464/Rs.2671/-

Package Includes: o o o o o o o o o o o Standard Package To & fro tickets in 3 AC Class Transfers & sightseeing in Non AC Vehicle 2 breakfast & 1 dinner (vegetarian meal) Visit to Shani Singhapur 01 night accommodation in AC room as per the itinerary Stay at Sai Sahavas-2 Star Comfort Package Train tickets both to & fro in Sleeper class AC accommodation Meals (Two breakfast & one dinner) Transfers & sightseeing in non AC vehicle sightseeing of Shani Shingaur IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 19

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

Stay at Sai Mahal (standard Hotel)

5. DELHI-CORBETT-DELHI TOUR PACKAGE: Package Tariff Adult Adult Adult Child 5-12Child 5-12 (Single Occupancy) (Double Occupancy) (Triple Occupancy) with Extra Bed without Extra Bed Rs.10279/Rs.5832/Rs.5239/Rs.2838/Rs.2127/Package Includes : o Arrival & Departure Transfers - Ramnagar / River View Retreat Ex Railway Station. o Welcome Drink on Arrival. o Accommodation in River View Retreat or similar. o Guest Registration & Express C-In the well appointed A/C Cottage. o 02 Breakfast, 02 Lunches, 02 Dinner o Morning & Evening Tea with cookies every day. o Choice of seasonal Fruit Platter. o Guided Nature Walk. o 01 Jeep safari to Jhirna. o Souvenir on departure 6. MAYAPUR DHAAM TOUR PACKAGE: Package tariff
Adult Child (5-11)

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

Rs.6600/-

Rs.4600/-

Package Includes: o Confirmed Train Tickets in AC 3 Tier from Ex New Delhi to Sealdah & back on every Saturday by Sealdah Rajdhani(2314)/ Howrah Rajdhani (2301) o Quality On board meals. o Assistance on arrival at New Delhi (Departure) & Sealdah Station (Arrival) o Pick up & drop service from Sealdah Railway Station by Air conditioned vehicle Package Excludes: o Stay arrangements at Mayapur Dham o Off board meals o Expenses of personal nature o Laundry o Telephone Charges o Anything not mentioned under the inclusion part 7. KASHMIR PARADISE TOUR PACKAGE: Package Tariff
Twin Sharing
Rs.14800

Triple Sharing
Rs.12950

Child Yrs)
Rs.6650

(4-11

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

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

8. NORTH TO NORTH-EAST: Package Tariff


Class
Deluxe(3AC)

Twin Sharing
Rs 16000/-

Child with bed (5 to 11)


Rs 6400/-

Package Includes: o Train Fare (as per itinerary). o Welcome drinks on arrival o Accommodation on twin Sharing Basis in Deluxe hotel. o Meal Plan MAP(Breakfast + Dinner) o Exclusive Non a/c vehicle for transfers & sightseeing. The vehicle will not be at disposal it will be available to guest as per itinerary only (point to point basis). o All permit fees & hotel taxes (as per itinerary). Package Excludes: o Personal Expenses such as Laundry, telephone calls, tips & gratuity. Mineral/soft/hard drinks, rafting, joyride (Toy Train) o Additional sightseeing or extra usage of vehicle, other than mentioned in the itinerary. o Guide charges & Entrance Fees. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 22

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

o Any cost arising due to natural calamities like, landslides, road blockage, political disturbances, etc (to be borne by the client, who is directly payable on the spot). o Any increase in taxes or fuel price, leading to increase in cost on surface transportation & land arrangements, which may come into effect prior to departure. o Anything which is not include in the inclusion. o o o Child Policy: Child below 5 yrs complimentary Child 5 - 11 yrs 40 % DISCOUNT ON PACKAGE COST Above 12 Full fare as Adult

9. AMARNATH YATRA RAIL TOUR PACKAGE: Package Tariff


Double Occupancy
Rs.12550/-

Triple Occupancy
Rs.10950/-

Child with extra bed(4-11 years) Sharing parents room


Rs.5500/-

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

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

10. NEW DELHI-SHIRDI PACKAGE: Package Tariff


Adult Double Occupancy
Rs.6350/-

Adult Triple Occupancy


Rs.6114/-

Child with extra(511yrs)


Rs.5879/-

Child without extra(511yrs)


Rs.5761/-

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

LEARNINGS AT THE IRCTC: a. Call Handling: At IRCTC I was assigned the task to get through the various rail tour packages running from Delhi origin, & after that I was assigned the task to take calls for the Mata Vaishno Devi Rail Tour Packages. b. Providing Information to the visiting Customers: Another task involved was to attend the visiting customers at the Tourism Facilitation Center & provide them with the necessary information about the tour packages. c. Meeting with the Agents: At IRCTC my main task was assigned as to meet the IRCTC agents, those who are already into selling tour packages & those who are willing to come into this segment. My primary objective in this task was to get feedback & provide appropriate suggestion or solution of a problem, & Handle their Queries. Also I had to insure that the agents are putting their efforts in promoting the tour packages. And motivate those agents who actually show less interest or no interest in promoting the tour packages. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 24

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

d. Making calls to the agents on pan India basis: I had to make calls to the existing agents of IRCTC on pan India basis. This activity was done to understand about their promotional efforts towards the tour packages of IRCTC, motivate them to aggressively promote the packages, get to know their complaints (if any), and taking suggestions (if any) to improve the existing services or developing new products & services. e. Conducted agent survey to understand the market potential for various tour packages & customer Psyche: I had to get to know the market potential of various tour packages, in terms of the customer demand for it. The agents are directly in touch with the customers & hence they are able to provide information about the super selling tour packages, the packages for which they get maximum demand.

SWOT ANALYSIS OF IRCTC


STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

1. Subsidiary of Ministry of Railways 2. Full back up by the Govt. 3. Excellent Faith & Goodwill 4. Largest ecommerce website 5. Monopoly in Rail tour packages & Rail Ticketing 6. Concession on booking of charters 7. Presence at more than 1000 stations across the country 8. Cheapest, yet best in Spiritual Tour Package Segment 9. Unique products like Mahaparinirvan express, Bharat darshan, Maharaja Express Trains 10. LTC approved Packages

1. Lack of motivation in employees 2. Poor Promotional activities & public relation 3. Limitations in decision making process 4. Delayed decision making 5. Not my work attitude of the employees 6. Non existence of full fledge Marketing team 7. Non pro-active behavior of employees 8. Poor customer support services 9. Poor infrastructural facilities 10. Internal conflicts among the employees

1. Buoyancy in the Tourism Sector. 2. Increase in Individual disposable income 3. Air Packages & Road Transport Packages 4. Booming Hotels & Resorts Industry 5. Bids for Contract (National & International) 6. Strategic Tie-ups for better & improved performance. 7. Outbound Tourism Segment 8. Tie-ups with leading institutions & organizations for educational tours & other tours at National & International platform. 9. Booming Medical Tourism 10. Common Wealth Games-2010

1. Leading web portals like Make My Trip, Cox & Kings, Clear trip, Thomas cook, Yatra etc. 2. Economic Downturn 3. Terrorists Attacks & Naxalites Attacks 4. Withdrawal of parental support from the Ministry of Railways, Govt. of India 5. Low fare Airlines 6. Private Small Tour operators 7. Increasing Inflation rate

PROJECT INTRODUCTION IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 26

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

OBJECTIVE & SCOPE Objective: The objective of my project is to evaluate the Market potential for various tour packages of the IRCTC also understanding the price feasibility of the tour packages. Scope: My study will be confined to: o Agents, who are already into selling tour packages of the IRCTC. o Agents, who have not yet started selling the tour packages but are looking forward to come into this segment WHAT CONTRIBUTION WOULD THE PROJECT MAKE & TO WHOM: Results of my survey & analysis would provide a very useful input to the management of the IRCTC who are already facing stiff competition from the giants like Make My Trip, Cox & Kings, Clear Trip, etc. and many small Tour operators. My survey will give them an insight about the customers perception about the IRCTC & various other brands, why do they shift to other brands & what factors influence them to make a purchase decision. With the help of my survey & analysis the IRCTC can plan its products & activities more strategically to gain new customers & retain the old ones. This will certainly help the IRCTC to attain the goal to double its earning from tourism in the year 2010.

METHODOLOGY IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 27

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

o o

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

1. For Questionnaire: (a)Sample size: 75 (b)Sample Composition: o Agents, who are already into selling tour packages of the IRCTC, and o Agents, who have not yet started selling the tour packages but are looking forward to come into this segment 2. For Interviews: (a)Sample size: 10 (b)Sample Composition: Agents, who are already into selling tour packages of the IRCTC Secondary Data: Before getting into the primary data, it was essential that I go through the secondary data to understand the tour packages, & to understand the trends in tourism industry. The sources of secondary data were as follow: Previous studies done in the IRCTC Suggestion & Complaints of the Agents IRCTCs Website Using internet to explore about various Trends in tourism segment

o o o o

DATA ANALYSIS & DATA INTERPETATION IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 28

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

1. Are you already into selling tour packages? Parameters Yes No Total:
80 70 60 50 40 30 20 10 0 No. of respondents Yes No Total:

No. of respondents 50 25 75

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

2. How is the response from the customers? IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 29

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

Parameters Excellent Very good Good Average Poor Total:


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

No. of respondents 10 16 24 18 07 75

Excellent Very good Good Average Poor Total:

Comments: The response from the customers is excellent as it can be seen that 32% agents say that the response from the customers is good, 24% say that its average, & 10% say that the response is excellent. Hence the overall result is that the response from the customers for tour packages is good. Only 9.33% agents say that the customer response for tour packages is poor.

3. What kind of tour package is most in demand? IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 30

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

Parameters Spiritual Tour Package Hill Station Packages Wild life Tour packages Desert & Heritage Tour Packages Beaches & Backwater Tour Packages Total:
80 70 60 50 40 30 20 10 0 No. of respondents

No. of respondents 38 28 00 09 00 75
Spiritual Tour Package Hill Station Packages Wild life Tour packages Desert & Heritage Tour Packages Beaches & Backwater Tour Packages

Comment: Out of the total agents surveyed it was revealed that they are getting maximum demands for Spiritual Tour Packages, & Hill station Packages only 50.66% agents say that the most in demand package is Spiritual tour packages, 37.33 agents say that the most in demand package is the Hill Station package. Where as only 12% agents say that they get maximum demand for Desert & Heritage Packages.

Total:

4. What is the Customers perception about the price of the tour packages? IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 31

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

Parameters Very High Economical Total: 80 70 60 50 40 30 20 10 0

No. of Respondents 12 63 75

Very High Economical Total:

No. of Respondents

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

5. What do customers feel about the facilities included in the tour packages? Parameters No. of respondents Highly Satisfied 35 IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

Satisfied Dissatisfied Highly dissatisfied Total:


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

40 00 00 75

Highly Satisfied Satisfied Dissatisfied Highly dissatisfied Total:

Comment: 46.66% agents say that the customers are highly satisfied with the facilities IRCTC provides with the tour packages. Whereas, 53.33% agents say that the customers are satisfied with the facilities, no complaints.

6. Do you feel that IRCTC should include more packages from Delhi Origin? Parameters No. of respondents Yes 62 No 00 IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

Not sure Total:


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

13 75

Yes No Not sure Total:

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

7. Do you get demand for Bharat darshan & Buddhist Circuit Tour packages? Parameters Yes No Total: No. of respondents 12 63 75 34

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

Comment: 16% agents say that they get demand for the two special trains (Bharat darshan & Buddhist Circuit Trains). Whereas, 84% agents say that they didn't get demand for it yet.

8. Do you put efforts towards promoting the tour packages? Parameters Aggressively promoting Looking forward to promote Do not promote Total: No. of respondents 34 30 11 75

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

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

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

9. Do you feel that IRCTC should also go for outbound tourism packages segment? Parameters Yes No Not Sure Total: No. of respondents 42 00 33 75 36

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

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

10. Do you feel that procedure & Terms & conditions to be an agent of IRCTC are complex? Parameters Yes No Total No. of Respondents 13 62 75

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

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

Yes No Total

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

11. Do You find the websites of IRCTC user friendly? Do You find it convenient? Parameters Yes No Total: No. of respondents 57 18 75 38

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

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

12. How would you rate the services provided by the IRCTC? Parameters No. of respondents Excellent 07 Very Good 33 Good 23 Average 12 IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

00 75

Excellent Very Good Good Average Poor Total:

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

13. How would you rate the customer support provided by the IRCTC? Parameters Excellent Very Good Good Average No. of respondents 00 00 10 43 40

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

22 75

Excellent Very Good Good Average Poor Total:

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

14. Do you want any kind of training support from the IRCTC? Parameters Yes No Total: No. of Respondents 06 69 75 41

IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA

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

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

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

FINDINGS & CONCLUSION


1. There is a huge market for the spiritual packages & Hill station Packages. IRCTC is doing excellent in this segment. 2. Other Tour packages are not so into demand as spiritual & Hill Station Packages are. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 42

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

3. The services provided by the IRCTC are very good; it is true value for money. 4. The IRCTC runs very limited packages to limited destinations.

5. The price of the tour packages of the IRCTC is economical, but yet there are certain packages which are costly. 6. There is a good scope for IRCTC in outbound tourism segment.

7. Some of the agents are not so much motivated but yet there are many who are very enthusiastic about doing good business. And they are promoting the tour packages at their cost aggressively, & some are planning to start it as soon as possible. 8. The website of IRCTC is user friendly, but still it needs some modifications in it. The appearance of the www.railtourismindia.com is not tidy. There are too much information is posted on it. 9. The customer support provided by the IRCTC is not so good & IRCTC has to make it better.

SUGGESTIONS & RECOMMENDATIONS 1. IRCTC should give focus on a 360 degree marketing campaign. It should introduce a new or more customized & diversified website that offers more than destination information, product & package information. IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 43

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

It should be such that allows one to conceptualize & plan personalized travel itineraries in a user friendly manner by browsing attractions, festivals, activities and other pertinent information. 2. IRCTC should also have a separate B2B platform which could provide agents with easy access to exclusive partnership benefits; tie-ups, with India's leading web portals, & provide them with exclusive designed benefits. The no. of smaller agents is growing day by day; this kind of activity will help IRCTC cater to the needs of growing no. of smaller agents. 3. IRCTC should also focus on renewed promotional efforts, along with developing new products as well as creating and nurturing infrastructural facilities to enhance the existing products. "Buddhist Circuit Special Train", "Bharat Darshan", "Maharaja Express" are good examples of developing a new product which in itself is unique in its approach. 4. The IRCTC runs very limited packages to limited destinations. IRCTC should not only include more packages in its feather but also provide special packages to the Niche Class of the society. For example: In some of the packages customers ask for First/Second class AC travel, Five Star accommodation, Helicopter Ride, Priority Darshan(in case of spiritual tour package), etc.. Though IRCTC customizes its package to certain extent on customers' demand, but the customers have to visit the respected office to get it done. It is very inconvenient to many of the users, since there is only one facilitation center in whole Delhi & NCR. So, there are three things that IRCTC should do: a). Develop separate products for the niche class. b). Increase the no. of facilitation centres across Delhi & NCR. Or, c). Enroll the area wise agency for the tour packages & other services & list them on their website. 5. India is one of the best feeder markets for foreign destinations like Singapore, Malaysia, Taiwan, Dubai, etc. IRCTC should also try to grab this market segment as of now it only concentrates on Domestic & Inbound Tourism. 6. IRCTC in collaboration with the Ministry of Tourism, Govt. of India, can promote Rail Tourism at international front. The Europe rail Tourism (Eurail) is the best example of such activity.

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

7. Rural tourism, Medical & wellness Tourism, Eco tourism should be encouraged and IRCTC can offer these as products to attract the International Visitors. 8. IRCTC doesn't have a full fledge marketing team who could actually do follow ups with the agents & tour operators. The agents are not so much motivated, it gives them immense pleasure & confidence when someone from the organization pays them a visit. It will act as a catalyst & the agents will accordingly put their efforts towards doing good business. 9. The Customer support service of the IRCTC is not so satisfactory. The queries are not sorted out well; sometimes they executives do not take calls. So it causes inconvenience & dissatisfaction among the agents & the customers as well. So it is recommended that IRCTC should better take care of it. 10. The payment options for booking rail tour packages should also be revised. The IRCTC accepts all credit cards for booking the tour packages, but very limited access to Debit cards. IRCTC only accepts Debit cards of Karun Vaishya Bank, Deustche Bank, & HDFC. These banks have very limited users, the majority of the people use debit cards of either SBI or ICICI or Punjab National Bank. IRCTC should allow either all debit cards for making payment for the tour packages or at least allow the debit cards of two banking giants-SBI & ICICI. 11. Today it is the Technology era and e-business is becoming the need today. If someone wants to sell the products of IRCTC online through its website, he has to deposit Rs. 2000000 non-refundable to the IRCTC. This is a huge amount & does not provide a platform for the young entrepreneurs. IRCTC should revise this policy & make it more affordable. IRCTC should motivate young talents & make strategic tie ups with the leading job portals & as well as the growing job portals.

BIBLIOGRAPHY IILM INSTITUTE FOR HIGHER EDUCATION, GURGAON-HARYANA 45

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

To make this project, I took help from some secondary sources and these are as:o o o o tm o o o o o o The Internet: www.railtourismindia.com www.irctc.com www.tourism.gov.in http://www.icmrindia.org/casestudies/catalogue/marketing/MKTG122.h http://www.iloveindia.com/economy-of-india/tourism-industry.html The Magazines: TRAVTALK Travel Biz Monitor Travel World Hospitality Biz Voyagers World Along with the secondary data some primary data were also collected, the sources of which are as follow: Interviewing the Executive at IRCTC Interviewing the Agents Questionnaire Survey Interviewing the customers who visit the Tourism Facilitation centre

o o o o

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