A Comparative Study of an Innovative Marketing Strategies Adopted by Mahindra Holidays and Resorts (India) Ltd. (MHRIL) and Sterling Holidays Resorts (India) Ltd. (SHRIL)

A Comparative Study of an Innovative Marketing Strategies Adopted by Mahindra Holidays and Resorts (India) Ltd. (MHRIL) and Sterling Holidays Resorts (India) Ltd. (SHRIL)

Jayrajsinh Jadeja (University of Baroda, India) and Kedar Shukla (Rofel College, India)
Copyright: © 2015 |Pages: 17
DOI: 10.4018/978-1-4666-8699-1.ch009
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Abstract

The tourism sector of India is economically important and though has been growing at a substantial rate, it has also undergone some turbulence post Mumbai attack on Hotel Taj at Mumbai on 26th November 2008. However it has started growing gradually and gaining back the momentum since 2009 with a marginal growth rate. The World Travel and Tourism Council calculated that tourism generated INR6.4 trillion or 6.6% of the nation's GDP in 2012. To capture the opportunity of the growing tourism market, and to compete in to the extreme competitive hotel chain market of India, Sterling Holiday Resorts (India) Limited (SHRIL) adopted the innovative marketing strategy in the year 1986 of ‘Providing Holidays on Time Share' basis model. In the current research paper authors have attempted to analyze and explain the ‘Holidays on Time Share Basis' concept and have also attempted to understand the comparative differences between both the service providing companies MHRIL and SHRIL which are leaders in the business with the help of the secondary data analysis obtained from their catalogs, website and marketing promotion programmes.
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Introduction

Tourism technically defended as the travel for recreational, leisure, family or business purposes, usually of a limited duration. Tourism is commonly associated with trans-national travel, but may also refer to travel to another location within the same country. The World Tourism Organization defines, tourists as people “traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. Tourism has become a popular global leisure activity. Tourism can be domestic or international, and international tourism has both incoming and outgoing implications on a country's balance of payments. Tourism is a major source of income for many countries, and affects the economy of both the source and host countries, in some cases it is of vital importance.

The tourism industry of India is economically important and though have been growing at a substantial rate have also undergone some turbulence post Mumbai attack on Hotel Taj at Mumbai on 26th November 2008. However has started growing gradually. The World Travel & Tourism Council calculated that tourism generated INR6.4 trillion or 6.6% of the nation's GDP in 2012. It supported 39.5 million jobs, 7.7% of its total employment. The sector is predicted to grow at an average annual rate of 7.9% from 2013 to 2023. This gives India the third rank among countries with the fastest growing tourism industries over the next decade. India has a large medical tourism sector which is expected to grow at an estimated rate of 30% annually to reach about 95 billion by 2015.

In India the Ministry of Tourism, is the nodal agency for the formulation of national policies and programmes and for the co-ordination of activities of various Central Government Agencies, State Governments/Union Territories and the Private Sector for the development and promotion of tourism in the country. This Ministry is headed by the Union Minister of State for Tourism (Independent Charge). The administrative head of the Ministry is the Secretary (Tourism). The Secretary also acts as the Director General (DG) Tourism. The office of the Director General of Tourism {now merged with the office of Secretary (Tourism), provides executive directions for the implementation of various policies and programmes.

One of the recent development of the sector is the move to grant in principle approval for Electronic Travel Authorization (ETA) to travellers from 180 countries to India, which will further boost tourism in the country, and traveling to India will be made easy once the ETA to visit the country becomes operational as expected by leading research analyst.

ETA, which will allow foreign travellers to apply for a visa from home and receive an online confirmation in five working days, is expected to become operational by October 2014. Barring eight prior reference countries, which include Pakistan, Afghanistan, Iran, Iraq, Somalia, Sudan, Nigeria and Sri Lanka, government has decided to give e-visa to all the 180 countries, besides the favorable policies are being structured and India had considerably relaxed its visa regime and expanded the Visa-on-Arrival (VoA) scheme.

India launched the VoA scheme in January 2010 for citizens of five countries – Finland, Japan, Luxembourg, New Zealand and Singapore — visiting India for tourism purposes. The scheme was later extended to six more countries in January 2011. Ministry of tourism is also planning to launch a dedicated helpline for inbound tourists in a year in 12 languages which may turn operational in about a year. The Info line a dedicated call centre is planned to provide information regarding tourist-related facilities and services available in the country.

According to statistics 6.29 million foreign tourists arrived in India in 2011, an increase of 8.9% from 5.78 million in 2010. This ranks India as the 38th country in the world in terms of foreign tourist arrivals. Domestic tourist visits to all states and Union Territories numbered 1,036.35 million in 2012, an increase of 16.5% from 2011. The most represented countries are the United States (16%) and the United Kingdom (12.6%). In 2011 Maharashtra, Tamil Nadu and Delhi were the most popular states for foreign tourists. Domestic tourists visited the states Uttar Pradesh, Andhra Pradesh and Tamil Nadu most frequently. Chennai, Delhi, Mumbai and Agra have been the four most visited cities of India by foreign tourists during the year 2011. Worldwide, Chennai is ranked 41st by the number of foreign tourists, while Delhi is ranked at 50, Mumbai at 57 and Agra at 65 and Kolkata at 99.

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