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How to create Customer Loyalty Program understanding the Behavior dynamics of the end customer by delivering special services in the Travel & Tourism Industry By: Shraddha Samant 133 Kshiti Shah 142 Parvez Sheikh 147 Akanksha Wattal 176

Creating customer loyalty in the travel and tourism industry

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Page 1: Creating customer loyalty in the travel and tourism industry

How to create Customer Loyalty Program understanding the Behavior

dynamics of the end customer by delivering special services in the Travel &

Tourism Industry

By:

Shraddha Samant 133

Kshiti Shah 142

Parvez Sheikh 147

Akanksha Wattal 176

Page 2: Creating customer loyalty in the travel and tourism industry

• A lot of emotions are at stake when people travel.

• It’s an industry where customer service plays a larger-than-life role.

• Only industry where no physical goods are exported.

Tourism is the temporary, short term movement of people to destination for any

purpose outside the places where they normally live and work.

What is Tourism???

Page 3: Creating customer loyalty in the travel and tourism industry

Types Of Travelers

Incentive tourist

Eco-tourist

Leisure tourist

Religious tourist

Sport and recreation

tourist

Backpacking or youth touristSpecial

interest tourist

Health or medical tourist

Business tourist

Educational tourist

Adventure tourist

Cultural tourist

Page 4: Creating customer loyalty in the travel and tourism industry

Statistics

• Tourism in India is the largest service industry• National GDP-6.23• Foreign tourist arrivals-5.5 million• Domestic tourism visit-740 million•  India generated about 100 billion US$ in 2011

and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

• In the year 2012, 17.9 million foreign tourists visited India.

Page 5: Creating customer loyalty in the travel and tourism industry

Future Prospects • The demand is expected to grow by 8.2 per cent between 2010

and 2019 and will place India at the third position in the world.

• The sector is expected to be the 2nd largest employer in the world, employing 40,037,000 by 2019.

• Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019.

• India to get capital investment worth US$ 94.5 billion in the travel and tourism sector in 2019.

• India is projected to become the fifth fastest growing business travel destination from 2010-2019 with an estimated real growth rate of 7.6 per cent.

Source: Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009

Page 6: Creating customer loyalty in the travel and tourism industry

IndividualsCompanies offers various scheme like:

For Travelling Airways

Jet Airways Indigo

Roadways KSRTC Neeta Volvo

For Stay Package

Serai Taj hotels

EMI Based Schemes Mahindra Country Club

Loyalty cards and memberships

Taj hotels

Page 7: Creating customer loyalty in the travel and tourism industry

Online Portals

Increasing Demand for niche and customised tourism

products.

Online portals are trying to give the customers with just a

click.

Loyalty programmers are the reasons for brand shifting.

Examples: http://www.expedia.co.in/ http://www.cleartrip.com/ http://www.yatra.com/ http://www.makemytrip.com/

Page 8: Creating customer loyalty in the travel and tourism industry

Facilities by Portals

Design Your trip/tour

Convenience(don’t have to go anywhere to book

ticket)

Book your tickets, hotels, cars, activities

Mobile Apps/ mobile services like sms

Low cost tour

Easy cancelation options

Page 9: Creating customer loyalty in the travel and tourism industry

Companies/AgenciesWeakening rupee- fixed exchange rate/20-25% discount on early bookings.

1. Kuoni India:- Rs 58 per dollar for its South-East Asia packages

Customized holidays Cruise offering

a. SOTC:- Subsidiary of Kuoni. Offer box holidays E.g.:- Travel voucher, sterling, leisure, citrus combo.

Page 10: Creating customer loyalty in the travel and tourism industry

2. Thomas cook:- approaching retailers and financial service companies

Points system-brand loyalty card

SCM:- Suppliers-direct providers of goods and services-food,

accommodation, transport, excursions and cultural activities. 

Travel life sustainability segment SENTIDO

3. Top travels:- Wedding themes Health tourism/medical tourism Travel insurance.

Page 11: Creating customer loyalty in the travel and tourism industry

• Short Weekend Getaways

• Farmers' Special• For Newly-Weds• Ladies' Special• Men Only• Pilgrimage Tours• Senior Citizens' Special

• Group Tours• Speciality Tours• Low Price Tours• Tailormade Holidays• Corporate Travel• Tours for NRIs• Students' Special•   

Types of Tours

Page 12: Creating customer loyalty in the travel and tourism industry

Steps taken to Maintain Customer Loyalty

Own Cook at any destination. Eg Aamras in Darjeeling

Special Occasions celebrated during the trip Feedback after the trip ZERO money policy (No hidden cost); Honest &

Caring Mails, messages etc. on special occasions Discounts for frequent traveler. Perfect tour planning

Kesari - A Journey of Excellence, Innovation and Joy

Page 13: Creating customer loyalty in the travel and tourism industry