Professional Documents
Culture Documents
Firm
strategy
structure
and Rivalry
Factor
Conditions
Demand
Conditions
PortersDiamond
DiamondModel
Model
Porters
Tourismand
andHospitality
Hospitality
Tourism
Industry
Chance
Industry
Exchange Rate Risks
Demand Conditions
Related and
Supporting
Industries
Government
Governme
nt
Domestic
expenditure
on
tourism
has
grown
significantly; the market has reached USD96.7 billion in
2015 and USD332.4 billion in 2025, representing a
CAGR of 6.3 per cent during 200815
100% FDI is allowed in tourism sector which will help
in development of hotels, resorts and recreational
facilities
Campaigns such as Incredible India and Athithi Devo
Bhava were launched to harness the tourism industrys
potential
Introduction of E tourist Visa and M tourist visa for
medical tourism has significantly boosted the tourism
sector. Growth of 1987.9 per cent was registered
during the month of October 2015 as a total of 56477
tourists had arrived on E Tourist Visa as against a
total of 2705 tourists during the month of October
2014
In June 2014, the Indian government approved 150
countries under the Visa on Arrival scheme to attract
Factor Conditions
India offers geographical
diversity,
attractive
beaches,
30
World
Heritage Sites and 25
biogeographic zones
India
has
a
diverse
portfolio of niche tourism
products
cruises,
adventure,
medical,
wellness, sports, MICE,
ecotourism, film, rural and
religious tourism
The
countrys
big
coastline is dotted with a
number
of
attractive
beaches
The
countrys
rich
heritage is reflected in
various temples, majestic
forts, pleasure gardens,
religious
monuments,
museums, art galleries
and urban and rural sites
India is recognized as a
destination for spiritual
tourism
Infrastructure
development
is
not
Airlines
Low cost airlines--growth in low cost
airlines to lower tourism costs and increase
spending on domestic tourism
Increase in international flight operators--newer JVs in collaboration with international
flight operators in 2015(JVs such as Air Asia
and Tata SIA). Entry of Etihad and Vistara.
Increasing number of airports and Higher
passenger traffic- By 2020, passenger traffic
at Indian airports is expected to rise to 450
million from 160 million currently
Healthcare
The presence of world-class hospitals and
skilled medical professionals makes India a
preferred destination for medical tourism
Indias earnings from medical tourism could
exceed USD8 billion by 2020
Tour operators are teaming up with hospitals
to tap this market
Software
Over 70 per cent of air tickets are now being
booked online in the country
A number of online travel and tour operators,
which provide better prices and options to
consumers, have emerged in India such as
makemy trip, yatra.com, goibibo etc.
Bargaining Power of
Buyers: High
PortersFive
Five
Porters
Force
Analysis
Force Analysis
Competitive Rivalry : High
Highly Fragmented Industry
Organized
players
would
barely have 15-20% of the
marketplace
Most of organized players are
present in metros & mini-metros
Large disposable incomes in
towns like Lucknow, Jaipur,
Coimbatore etc. serviced by
family run unorganized players
Industry rivalry is intense but not
cut throat
Rivalry Intense because of low
switching costs, low levels of
product
differentiation,
perishability
of
products
diversity of rivals
Rivalry is not cut throat since exit
barriers are not high, fixed
costs are not high, market
growth is good