INTRODUCTION

i. Growth in Hospitality and Tourism Industry in India:

Tourism has always been a major social phenomenon of any society. It is motivated by the natural desire of every human bein for new e!perience" adventure" education" #nowled e and entertainment. In order to understand each other$s cultures and values as well as to cater several other social" reli ious and business interests" it has resulted in development of many tourist and infrastructure facilities.

This" alon with the pro ress of proper transportation networ# lobally" especially of airways and waterways" has encoura ed people to venture out to the forei n lands. It has facilitated the trade and commerce between the different re ions of a country and between the different countries. %s a result" over the years" it has ac&uired the status of a service industry.

%ccordin to the Travel ' Tourism Competitiveness Report ())* brou ht out by the +orld ,conomic -orum" the contribution of travel and tourism to ross domestic product ./D01 is e!pected to be at U23 456.7 billion by ()4*. The report also states that real /D0 rowth for travel and tourism economy is e!pected to achieve an avera e of 6.6 per cent per annum over the ne!t 4) years. ,!port earnin s from international visitors and tourism oods are e!pected to enerate U23 84.9 billion .nominal terms1 by ()4*. -urthermore" the sector which accounted for :.9 per cent of total employment in ())* is estimated to rise to 6.( per cent of total employment by ()4*.
1

India;s hotel pipeline is the second lar est in the %sia<0acific re ion accordin to =an 2mits" Re ional >ana in Director" and InterContinental ?otels /roup .I?/1 %sia %ustralasia. ?e added that the Indian hospitality industry is projected to row at a rate of 5.5 per cent durin ())6<4:" placin India as the second<fastest rowin tourism mar#et in the world.

i.

Growth of Tourism Industry in Himachal

Tourism industry in ?imachal 0radesh which was facin rou h weather in past is now flourishin li#e anythin . %s per one estimate the number of total tourists who visited ?imachal 0radesh in the year ())6 was 55"(4"7*6.Indians@ 5954*55"-orei ners@ 77*9)*1 which turned out to be *6"9*"977.Indians@*76(:*6"-orei ners@76:67:1 for the year ())5. -or the year ())*<4) ?imachal 0radesh /overnment has set the tar et to attract more than ten million tourists.

In the past few years there has been a tremendous increase in Tour and travel companies who offer attractive pac#a es to tourists for honeymoon" trac#in " mountaineerin etc. Road and air connectivity has also one better lately and now %C and Aolvo buses ply on daily basis to >anali" Dharamshala and 2himla from Delhi and Chandi arh.

Not only the private companies and hotels but ?imachal tourism department .?0TDC1 has also ta#en new initiatives to boost tourism in ?imachal. ?0TDC has conceptualiBed a new scheme #nown as ?ome 2tay which will certainly promote villa e tourism.
2

?imachal /ovt. has also decided to start nature<cure centers and health resorts on Cerala pattern to promote health tourism.

Tourism ,ducation
,ducation is the most crucial investment and an essential element in human resource development. /rowth in Tourism sector needs more and more trained manpower in order to cater to different services in Tourism sector. 0rivate institutes and /ovt. institutes are playin a major role that impart tourism

education to students. Tourism education is helpin country to serve the country better and helpin them in achievin their economic" social and political oals at national and international level.

EXECUTIVE SUMM !"

3

Shi#har

cad$my of Tra%$l and Tourism is the only academy in 2himla" 2ummer hill

area which provides courses in Travel and Tourism >ana ement. This academy caters to those students who want to build their career in Travel and tourism industry. The contribution of the Travel ' Tourism ,conomy to total employment is e!pected to rise from 5.4D" (78"658"))) jobs or 4 in 4(.7 jobs in ()4)" to *.(D of total employment" 7)7")4*"))) jobs" or 4 in every 4).* jobs by ()()" by +TTC. In 2himla" students have very less options available to do such #ind of courses. >ostly students o for >asters in Tourism administration from ?imachal 0radesh University where the number of seats is limited but candidates are more. In that case" 2hi#har %cademy is a boon for those students who do not et chance to et admission in their choice of stream but want to build their career. The company;s oals over the ne!t three years are@ To et ma!imum no of admissions annually. >aintain a ood amount of mar in of profit. %chieve 4)D sale from promotional activities.

In order to achieve these oals" 2%TT has focused on below #ey areas@ ,ffective se mentation and tar etin of students who are #een to build their career in Tourism. 2uccessfully position ourselves as specialist in providin &uality education to students.
4

Communicate the differentiation and &uality of our offerin throu h >ar#etin " >edia and 0R.

Develop a Erand Name in the mar#et.

This academy is situated in 2ummer hill 2himla" ?imachal 0radesh. This is a rented property and operated by >ona Do ra.The employees of this academy are passionate" hard wor#in and have reat e!perience in their respective fields. %cademy has total area of 48)) s&.ft. It;s a double storey buildin . It has total number of 5 rooms. There is 4 CR2 room" ( class rooms" 4 office area" 4 2mall Fibrary" 4 Internet CafG inside the academy"4 meetin room" 4 Canteen. 2%TT;s total startup capital is 9) la#h. 2tart up has been financed by my personal investment. Ref@ %nne!ure I 4 E&p$ns$s: Rent" Office supplies" utilities" phone lines" projectors" stationary" scanner" internet connection" photocopier" +ebsite development" infrastructure maintenance. (. ss$ts: 0rimary Cash and computers" furniture and fi!tures 7. In%$stm$nt@ The bul# of the investment is comin from operator;s personal account.

2%TT is initially offerin 7 pro rams@ 4. Under raduate Diploma for 4 year.
5

(. 0ost /raduate Diploma for 4year. 7. CR2 .Computer Reservation 2ystem" /alileo1 for 7months. 2%TT;s tar et students are those who wish to build their career in Tourism sector. ?imachal 0radesh University" 2himla has >asters and Eachelor pro ram in Tourism %dministration" but number of seats is limited. Due to this" many students who are not only from 2himla" but also from other districts of ?imachal" do not et admission in university every year. This academy is an opportunity for these students. 2%TT is providin hostel facility for students who are comin from other districts of ?imachal to study in 2himla. 2%TTHs main competitor is 'uoni cad$my in Manali and 'an(ra. 2%TT is followin very stron promotion strate y to capture the ma!imum mar#et share. 2%TT has to tar et those who could come down to shimla to do the course and could afford the fee. 2%TT;s pricin is a major consideration. This we have determined by mar#et standards. +e are tryin to provide them with some discounts or scholarship by #eepin our mar in of profit. +e have come up with competitive pricin so that we could capture ma!imum mar#et share in our 4st year of operation.

2%TT has its own website@ www.shi#haracademy.co.in 2%TT is also available on social website li#e -aceboo# and Fin#edin. 2%TT is also plannin to participate in ,ducation -air in ?imachal by ne!t year.
6

2%TT;s e!pected sale in one year is appro!imately ()la#h .%nne!ure I1.

)*C TI*+ *, SHI'H ! C -EM"

This academy is located in summer hill" 2himla. This location is a benefit for our academy as the ?imachal 0radesh University is located in this area. 2himla is the capital of ?imachal and there is not any other institute of travel courses. There are 4( districts in ?imachal. +e can tar et students from other districts who wish to come to 2himla for doin this course.

MISSI*+
Shi#har cad$my of Tra%$l and Tourism will specialiBe itself in one of the best institutes in Travel and Tourism. 2%TT will not only be limited its operation in 2himla but will loo# forward to other places which have potential and students who are #een to build their career in travel and tourism.

'E" T* SUCCESS
,ffective se mentation and tar etin of students who are #een to build their career in Tourism. 2uccessfully position ourselves as specialist in providin &uality education to students.

Communicate the differentiation and &uality of our offerin throu h >ar#etin " >edia and 0R.

Develop a brand name in the mar#et.

S.ECI ) SE!VICES
2%TT is providin some special services to their students which are re&uired by any student in the campus where they study. These services are our U20s also. 4. Fibrary -acility (. Internet CafG 7. 0antry

S )ES )ITE! TU!E

Erouchers for Course Details are obtained from our academy. 0rospectus can also be available on famous boo# stores in ?imachal. %dditional literature has been used as banners" hoardin s" print ads" direct mail" and +eb advertisements.

ECH+*)*G"
2%TT is usin latest technolo y in its office@ 4. Computers (. 2canner 7. 0hotocopier 9. -a! >achine 8. 0rojector :. 0hone Connections 6. Internet Connection 5. +i< -i %ll these are basic e&uipments which are re&uired.

M !'ET +EE-S +- -EM +-S

%s we all #now that ?imachal 0radesh is a -amous tourist Destination. That state demands trained manpower to cater to travel services for people. Eut the options are almost nil. ,ach state ovt.is ta#in initiatives to promote tourism of their own state. Its re&uired to have trained manpower in Tourism 2ector. In order to cater to this demand" we planned to open this academy in 2himla where the potential customer is available but the supply of service is no there. In that case" this institution is a boon to provide trainin to youth who are #een to build their career in tourism sector.

M !'ETI+G ST! TEG"

/. Mar#$t S$(m$ntation Our mar#et is 2tudents who want to build their career in Tourism 2ector. +e have done se mentation as follows@ i. /eo raphic 2e mentation

There are 4( districts in ?imachal which are bein tar eted by us. Ref.%nne!ure< II1 +e are tar etin students from nei hborin city" Chandi ar h also.?imachal 0radesh University is located in summer hill"shimla. 2tudents from other districts too"come to shimla for doin course from University.
10

4.?amirpur (.2olan 7. Eilaspur 9.Nahan 8. >andi :.>anali 6. Cullu 5. Can ra *. Dharmashala 4). Cinnaur 44. Fahaul and 2piti 4(. Chamba ii. -$mo(raphic S$(m$ntation: 4. ,ducation Eac# round@ 2choolin " Colle e" Iualification. (. -amily Eac# round@ ,conomic 2tatus" -amily 2iBe" -amily Fife Cycle. iii. .sycho(raphic S$(m$ntation: 4. >otivation@ 2tudents who are motivated to build their career in travel and tourism sector.
11

(. %ttitude@ 2tudents who have orientation towards tourism industry and want to understand this in depth.

0.Mar#$t Tar($tin(
+e are followin >ulti<2e ment 2trate y. It;s a successful strate y for any or aniBation. There is more scope for e!pansion and rowth with this strate y.

Tar($t Mar#$t is: I. II. III. IA. A. Under raduate 2tudents /raduate 2tudents Can afford to pay fee Ceen to build career in tourism sector >otivated to come to shimla from other districts of ?imachal to study.

iii.Mar#$t .ositionin( +e are positionin in the minds of tar et se ment throu h different services and other tan ibles" offers" price" distribution. I.*ff$rs@ 2cholarship 0ro rams" Discounts
12

2ervices and other tan ibles@ Fibrary" Canteen" Internet CafG" +ritin note pad" pens to +al#<Ins. II..ric$@ Competitive 0rice of Course III..$opl$: Counselor are available at front des# for counselin of students. IA..hysical Ima($ of cad$my@ Our office has very soothin ima e from inside. It creates ur e to study in academy. 0ictures of airlines" tourist destinations" etc. motivate them to study and creates an ambience of the same. wal# in

SE!VICE 1USI+ESS + )"SIS

%ccordin to the Travel ' Tourism Competitiveness Report ())* brou ht out by the +orld ,conomic -orum" the contribution of travel and tourism to ross domestic product ./D01 is e!pected to be at U23 456.7 billion by ()4*. The report also states that real /D0 rowth for travel and tourism economy is e!pected to achieve an avera e of 6.6 per cent per annum over the ne!t 4) years. -urthermore" the sector which accounted for :.9 per cent of total employment in ())* is estimated to rise to 6.( per cent of total employment by ()4*Industry needs trained manpower to cater to service industry.

13

%fter doin course in Travel and Tourism 2ector" students can et employment opportunities in followin areas@

Tour >ana er Counter ,!ecutive in %irlines and hotels Aisa -acilitator officer Own Travel % ency 2ales and mar#etin e!ecutive /uide ,!ecutive in Tour Companies" Travel % encies. Car Rental Companies

M I+ C*M.ETIT*!S
Our main competitor is@

14

Cuoni %cademy was launched in ())7 offerin

courses in Travel and

tourism. Currently "the academy has : centers in North India"where in Delhi is the Re ional Center. Its head office is in >umbai. Cuoni has a brand name in the mar#et.Its a challen e for 2hi#har %cademy to ma#e its brand name in the mar#et.

C*M.ETITIVE E-GE
Our competitive ed e is a combination of our uni&ue services" location and our interaction with students. +e are at ed e by providin them uni&ue and different services" environment and counselin to students. This creates a sense of satisfaction and trust. They can depend on us as far as their career is concerned.

.!*M*TI*+ ST! TEG"

0romotion is very important part of any mar#etin activity.
15

+e are usin followin tools@ 4. d%$rtis$m$nt i. 0rint %ds@ The most popular newspaper are Times of India" The Tele raph" %sian % e and the 2tatesman" Daini# Ehas#ar. These are leadin newspapers havin lar e readership in ?imachal 0radesh. ii. ,lectronic@ Radio . %ir -> R%DIO1" Radio City *4.4"Red -> *7.8"Internet. son s.p#" /oo le search "2ocial 2ites li#e -aceboo#" Fin#edIn" TA channels. NDTA /OOD TI>,"DI2COA,RJ" TR%A,F %ND FIAIN/" N%TION%F /,O/R%0?IC. iii. Outdoors@ ?oardin s" billboards" banners at >all Road " 2ummerhill University area" flyer distribution in other districts too. (..u2lic !$lation @ ,ducation 2eminar in ?imachal to tar et students from other districts.

16

7. Sal$s .romotion@ Discounts" -reedbies .caps" pens" #ey chains1" 2pecial ifts on referrals li#e Titan +rist +atch" No#ia >obile 0hone" i<0od . 9. -ir$ct Mail: 2endin mails to potential students re ardin course details.

.!ICI+G ST! TEG"

0ricin has been done as per the mar#et standards. +e will be introducin 7 courses initially in the mar#et@ Under raduate Diploma in Travel and tourism .4year1 0ost raduate Diploma in Travel and tourism .4year1 CR2. Computer Reservation system1 .7months1 78")))INR 8)")))INR 4)")))INR

+e are followin Comp$tition *ri$nt$d .ric$ M$thod. %s the services are intan ible" it is very difficult to communicate to the mar#et about the character of the offer and the positionin becomes a challen e. Eut price is very communicative. Ey followin this method" we can rab ma!imum potential mar#et as compared to the competitors. Its helpin us to achieve our sales tar et also. *r(ani3ational o24$cti%$ throu(h pricin( is :
17

 To achieve a tar et return on investment. ROI1 To ma!imiBe profit To increase sales Aolume To maintain mar#et share.

S )ES ST! TEG"

>ethods by which we are contactin customers depend on results of mar#etin Ksales research. +e are usin direct mail" +eb<based communication" and personal sellin . In addition printed materials are available to students. +e are usin different methods to enerate leads by participatin in any ,ducation -air in ?imachal. +e are tryin to convert wal# ins into actual sale +e are eneratin 2ales from 2himla" other districts of ?imachal" and +al#<ins.. 0lease refer %nne!ure III for ,stimated 2ales -orecast1

,inancial .lannin(
18

Estimat$d Start up 1ud($t:

EXPENSES
O--IC, R,NT -URNITUR,2 %ND -ILTUR,2 CO>0UT,R +,E2IT, D,A,FO0>,NT 0RO>OTION%F %CITIAITI,2 O--IC, ,IUI0>,NT2 ,2TI>%T,D 2T%RT U0 ,L0,N2, 8)")))INR (")))))INR 48")))))INR 8)")))INR 7")))))INR :")))))INR (6")))))INR

%ssets
-urniture and fi!tures Computers Cash in hand ("))))) 48"))))) :")))))
19

Total fi!ed assets

(7")))))

Capital In%$stm$nt

9)"))))) INR

Estimated Monthly Sales: Promotional Activities

%dvertisement 0ublic Relation 2ales 0romotion +ord of >outh 6)")))INR 4")))))INR :)")))INR 9)")))INR

Total estimated monthly sales

("6))))INR

Break-even Analysis
20

This Erea#<even %nalysis table below" project the fi ures for monthly sales brea# even@

2%TT C*STS -orecast -i!ed Cost

%ll start<up costs" such as Rent" insurance and computers

Aariable Cost

Recurrin costs < 2alary" 0romotion

0ricin >ethod

0rice based Costin . ++EXU!E IV5

Monthly !$%$nu$ 1r$a#$%$n %$ra($ Varia2l$ cost Estimat$d Monthly fi&$d cost Estimat$d Sal$ .$r y$ar

0678777 I+!

97777 I+! :7777 I+!

0077777I+!

21

++EXU!E I

4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

Expenses Assets Investment

22

++EXU!II

23

++EXU!E III S )ES ,*!EC ST ; ++U ))"5

4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

3-D Column 1 3-D Column 2 3-D Column 3

year 1 year 2 year3

24

++EXU!E IV

1!E '<EVE+ .*I+T

25

!E,E!E+CES
!$f$r$nc$ from www.wttc.com for facts and fi(ur$s. !$f$r$nc$ from www.mot.(o%.in for statistical data.

26