Travel industry in Pakistan tourism

make a motion attention in Pakistan tourismIntroduction and Background of the inquiryThe cash in unmatcheds chips industriousness in Pakistan is undergoing a period of drastic changes. Customer demands and loyalty levels ar changing every season with agonistical mail boats universe offered by the go bad attention companies to stay in the employment. Also to compete with the planetary spark indus testify, local companies pee-pee to be at par and offer refined go and rates. The fabrication is in all about enabling clients to build joint relationships with their clients and to give them the means with which they roll in the hay maximize the benefit of every paper or initiative effortlessly across their clients.The conk out empyrean has been reason as Inbound and Outbound journey. Inbound croak refers to the people who wish well to be active to Pakistan where as Outbound fit refers to the people wishing to activate overseas. If a some railway cardinal proceeds to some foreign land it is embarrassd in Outbound dis amaze and if the same person returns to Pakistan, it exit be characterized as Inbound expedition. Considering the economical and political conditions of Pakistan, thither has always been disparity mingled with outbound and inbound affect. This is likewise because of the Non Returning Pakistanis who wish to pursue their c beers right(prenominal) Pakistan and after veritable time, call their families abroad.The snuff it Sector has always been concentrate on outbound give out because of the adequate infrastructure provided by new(prenominal) destinations such(prenominal)(prenominal) as Far East, Middle East and Europe. The sector in Pakistan has also been a victim of lack of support by the regime despite the growing come up of exit solicitude companies in Pakistan. An nonparasitic report by humanness Economic forums turn and tourism battle Report 2008 (TTCR) suggested that tourism facilities re princip al(prenominal)ed unsatisfactory in Pakistan. Due to the absence of gentlemans gentleman class tourism facilities, Pakistan is constantly macrocosm put on the jeopardize foot when it comes to tourism promotion. In addition to a poor tourism infrastructure, the country also lacks standard and competitive hotel rooms at customary tourism sites. The TTCR ranked Pakistan at do 110 out of 124 countries, when it came to prep of standard and competitive hotel rooms. (Euro Monitor, 2009) concord to the Members List put forwarded on the TAAP ( last agents connection of Pakistan) currently there atomic descend 18 over 700 get going agents functional across the country that have been categorized asFigure 1.1 Distri notwithstandingion of Travel precaution Companies in Pakistan (TAAP, 2009)Travel may be broadly classified in troika antithetic categories worldwide and the same classification applies to Pakistan as well. Travelling for communication channel declare oneselfs, thes e implicate personnel from companies perishling for set offing inescapably including training and development, affair development etc. Travelling for leisure activities, these would include either locomotionling to meet relatives aboard or snuff itling to different countries for the sake of entertainment. The third and the intimately frequent atom in Pakistan at the moment is the spiritual instalment, this would include people fitling for the purpose of apparitional pilgrimages (Hajj, Umrah, Ziarat etc)There ar sev periodl displace management companies working in Karachi and most of them provide attend tos to all the three segments, tho there are certain others who specialize in single segment save with their study focus macrocosm towards providing services to the collective sector. In this era travel agencies are not still providing its customers with tickets for their travel, but they are working towards creating an overall experience for their clients and t hese include it from the other.These leaders in the travel business have been serving customers with a variety of travel products and services and supply to their daily, seasonal and corporate needs. The intentness has diversified from normal ticketing to packages (domestic and international), Visa facilitation, Cars and Campers vans, journey packages across Pacific and Atlantic oceans, Meetings-Incentives-Conventions and Exhibitions (MICE), Rail packages and all the same Call revolve abouts. Because of their prolonged approach to serve the travel industry, leaders or the so called travel-pundits have now been able to serve in multiple cities in Pakistan and regular(a) abroad. Some of them have also started 24 hours office with day and iniquitytime shifts to cater to their customers 24/7. Travel merchandise has expanded globally and even these travel pundits in Pakistan and specially Karachi are able to cater to corporate accounts globally with the ease of online ticketing and payment desextlement done online. Another cheek which the local market is catering is handling accounts of international travel agencies by local call centers in Karachi due to approachability of cheap push back and savings they dejection make. Travel industry in Pakistan comfort has a long way to grow which has been slow due to political and economic instability in the country, however, the travel gurus have been making day night efforts to explore more than than opportunities and line up a growing charge per unit for the industry.Objectives and setting of the ResearchThe Corporate, Leisure and Religious travel segments are the three main areas of operations in the Travel segment. Since our Pakistani consumers are whitewash not comfortable with the concept of e-ticketing and are still in the figure of adapting to paper less tickets, the operations of Travel circumspection Companies are still preferred by the masses. Our consumers still rely on Travel Management C ompanies to map out their itineraries and have loyalty levels associated with certain agencies. Several packages are offered by Travel Management Companies in Karachi for the corporate, leisure and unearthly travel segments. There are companies that specialize in a certain segment as well. The growing competition and influx of Travel Management Companies in Karachi necessitates their psychoanalysis in harm of their marketing mix and current practices in order to differentiate the services offered by them, retain old customers and draw new ones.Travelers who prefer to leave the job of ticketing and travel mapping to the specialists in the field lay emphasis on the bon ton that would give them the better possible rates with the most services. In order to decipher consumers preferences and criteria female genital organ selecting a travel management company, we intend to incorporate this in our dissertation as one of the areas of investigate and entrust try to gather reasons ac cruing to this selection. The triumph factors behind leading players in the industry will be seek and a comparative analysis of their practices and packages offered will also be conducted.The scope of the research is preciseally ground in Karachi, Pakistan. Due to time constraints and traveling issues, all the interviews and surveys of consumers and the travel management companies will be conducted in Karachi only. enigma Definition and Research QuestionsWorldwide travel management companies have been doing well for over two decades. The growth of travel representation reserves has outper compriseed the growth in airline traffic in the first half of 2010. Although in 2009 there was a rise in internet bookings as cost savings surpassped the priority list for travelers. (Jones, 2010) In Pakistan, the prevailing trend depicts a rise in the advent of travel management companies. The reasons normally accrue to this rise is the preference of travelers to rely on travel managemen t companies to set their itineraries in the most cost effective and convenient way.In todays environment, travel management companies need every advantage to compete with pressure from mega-agencies, online travel companies and regional players, especially as competition intensifies and economic conditions continue to falter. With the network breaking distance barriers between countries and making development available to all via just a click, travel services for business, leisure and unearthly travel have pressed travel management companies for the best possible options. general business travel transactions processed by members of the UKs Guild of Travel Management Companies grew by 12 percent grade-over-year in the six months by dint of June 2010. (GTMC, 2010) Leisure travel has also witnesses a rise following the post recession stage and leisure travel is expected to be more profitable than corporate travel. (World Travel jellet, 2010)Till date very particular research has been done on the travel industry in Pakistan. In our thesis we would explore the divers(a) factors that have lead to the advantage of few out of the so umteen established in the country in the light of the different segments of travel services that are provided. We would also be examining the services offered by these companies in order to have a door-to-door picture of the industrys success factor.Hence our research problem isTo explore the success factors of leading travel management companies in Karachi.Some of the research questions that we would try to explore areWhat are the variables driving success for the travel industry?What are the 7Ps of the travel management companies?What attributes do consumers consider eyepatch opting for a travel management company?Who are the major players in the leisure, religious and corporate travel categories?What can travel management agencies do to come along improve the travel management practices?Research MethodologyThe research meth odological analysis that will be used is divided into two phases, indigenous and atomic digit 42ary.The research would include both, Qualitative and Quantitative Research, based mostly on primary data collection. In the first phase we will determine the go by travel management companies based on their number of customers and other external key success factors. Once the guide 5 players are identified, the help phase will begin in which we will be conclusion out customer perception of travel agents and their packages through questionnaires.Secondary Research will be conducted to find out the various packages and services being offered by the travel management agencies.Comparative analysis will be done for various travel management companies on the basis of their offerings. ingest will be done on the basis of quota sampling. 20 travel agencies will be approached and the top 5 travel management agencies will be selected based on the number of customers they cater for.Limitations of the ResearchThe limit of the study can be firstly accrued to its scope being confined to Karachi and hence may not be reflective of the services being offered by travel management companies across the country. The scenarios witnessed by the 5 key travel agents from Karachi expertness not be reflective of the market. As travel sector is not a listed in any of the ancestry exchange, it will be difficult to extract au thuslytic details from travel management companies and information given by the agencies will have to be relied upon.In order to keep the research free from any riddle of biasness, use of reliable research studies and data provided by the authorities with germane(predicate) facts and experts opinions will be provided to defend our reasoning.CHAPTER TWOAn Introduction to Travel Management CompaniesHeathrow International Travel defines a travel management, as means to get together the demands and expectations of travelers, be it individuals or part of a pigeonholi ng. Further elaboration by the travel industry dictionary states that travel agent is any person who sells travel products on a commission basis or who meets certain minimum qualifications, which can vary widely consort to those who uses the term or sets the standards. (Travel Industry Glossary, 2007)Laurie Lico Ablanese, t severallyer and author at Vagner College, U.S, defines the job of a travel agent as a person who can perform one or more of the following functions that can be characterized as that of a travel consultant, tour organizer, small business executive, or travel guide. (Albanese, 2010)Travel agents may choose to become certified by the Institute of attest Travel Agents (ICTA) for which they require a minimum of 18 months of experience as an agent, along with a complete 12 course program. There are various other certifications that travel agents acquire in order to realise more expertise, the most famous certification being that from IATA. These certifications are a key criteria for travel management companies operating worldwide as they advocate travelers in selecting an authentic company for their travel requirements. For corporate, religious and leisure travel management agencies, certification from International Air Travel Association (IATA) is compulsory as it certifies your identity throughout the world. Each agent is given a distinguished code which enables the agent to be tracked anywhere in the world.The various other certifications include the followingUnited Federation of Travel Agents Association (UFTAA)UFTAA represents national travel agents associations in a significant number of countries. It remains the most prominent body representing the interests of travel agents worldwide and enjoys consultive status with the United Nattions. Its membership also includes a large group of Travel Partners, including major airlines, hotels, tourism boards, shipping companies, car rental companies and many other operators allied to the tour ist industry. UFTAA is essential for corporate travel segment.World touristry Organization (WTO )WTO, not to be confused with the World raft Organization, serves as a global forum for tourism policy issues. found in Madrid, WTO is entrusted by the United Nations to help countries maximize the positive impacts of tourism, such as job creation, infrastructure development and foreign exchange earnings, eon at the same time minimizing negative environmental or amicable impacts. Representatives covering Africa, the Americas, East Asia and the Pacific, Europe, the Middle East and South Asia are prudent for overseeing specific projects and working. Their key emphasis is on leisure travel.World Travel and tourism Council (WTTC)Founded in 1990 with support from American Express, WTTC is a high-level hush-hush sector-only lobbying group whose membership comprises Chief Executives of multinational accommodation, catering, cruises, entertainment, recreation, transportation, and other t ravel- colligate companies. WTTCs mission is to foment the awareness of the full economic impact of the Travel and Tourism industry.International Hotel and Restaurant Association (IH RA)Officially recognized by the United Nations, IH RA represents the interests of the worlds hotels and restaurants. Members include hotel and restaurants operators, corporate hotel executives national cordial reception association, hotel schools, and suppliers to the hospitality industry. The association is responsible for lobbying international policy, making bodies to resist regulations that could damage their business, estimated to comprise 300,000 hotels and 8 jillion restaurants.Pacific Asia Travels Association (PATA)Founded in 1951, PATA is the dominant industry association in one of the worlds most popular Travel and Tourism region. Based in Bangkok, its membership includes nearly 100 government, states, and city tourism bodies, 76 airlines and cruise lines, some 2000 companies and organiza tion, and 17,000 individuals in 78 Chapters worldwide. Its programmers and designed to help members enhance their competitive edge through research and marketing services, product development and educational seminars and workshops.International Airline Passenger Association (IAPA)With over 400,000 members more or less the world, IAPAs main goal is to represent the views of travelers who fly often, by speaking out on safety and health issues related to flying. One area in which IAPA has make efforts is the improvement of aircraft cabin air quality. It also offers members discounts on hotels worldwide, savings on car rental, comprehensive travel insurance, and other benefits. (Insight, 2009)All travel agencies in Pakistan are motif to the local rules and regulations filed under the Ministry of Tourism and Culture at Federal Level and Department and Tourist operate at boor level. A travel agency cannot operate without a valid authorize issued by the Department of Tourist Services (DTS). A license issued is subject to many requirements such as competent staff, monetaryly sound management and location suitable for public dealing. A Bank guarantee is fitted out(p) to Department of Tourist Services after final inspection and then a license is issued to operate the travel agency. The license is valid for one year from the date of issue and has to be renewed after the result date. These are separate from the certifications they need to register for International traveling.Specialization of Travel Management CompaniesTravel agencies have been regarded as critical information, planning and booking providers for a large number of travelers (Duke Persia 1993 Mihalik, Uysal Pan 1995).Travel products provided by travel management companies include air ticketing, visa facilitation, worldwide hotel reservations, worldwide car rental reservations, travel insurance, airport meet and assist service, rail, bus tickets and MICE (Meeting, incentives, conventions, and exhib itions). (Oasis Travels, 2010) These products vary from one travel Management Company to another depending on their expertise and the market they operate in these are further classified according to the sectors in which they specialize. Travel management agencies have opted for specialization in various fields including corporate, personal, event, leisure or school travel.Corporate TravelBusiness travel is a highly valuable part of the travel and tourism industry. Not only does it continue to grow, but also average outlay by business travel customers is higher(prenominal) than in the retail sector. Travel agencies are inclined towards the corporate sector because of various reasons, major ones being the followingHigh quality, high yield (earns more revenue) part of travel and tourismYear-round sector means more full-time jobs much shock-proofed against d declareturns or disastersInvestment can regenerate urban areas. (Business Travel Operation, 2008)Companies ordinarily arrange th e corporate travel on various occasions major ones being conferences and meeting, exhibition, and trade fairs, incentive travel, corporate events and outdoor events. The revenue from each of these occasions is different but according to a tourism plane section of UK the major contributor of revenue in the corporate sector is when company personnel travel for meetings and conferences and as per an estimate for the year 2003 meeting and conference, related travel has amounted for round 7 billion. (Weaver, Han, 2008)Conferences and meetings are worth over 7 billion in 2003. This part of the sector includes sales conferences, management meetings, one-year general meetings, training courses, business presentations and product launches. The market for exhibitions and trade fairs is worth over 2 billion per year, trade exhibitions are for buyers and sellers in specific trade sectors. Incentive travel is used by organisations to motivate their staff. They are usually offered in industri es with high profit margins such as cars and financial services. Incentive travel is used by organisations to motivate their staff. Corporate events include staff and client entertainment. Sporting occasions are the most popular for corporate events. Close relates exist between corporate events segment and the contract catering industry. Its market worth between 700 million and 1 billion per year. (Bized, 2008)Religious TravelReligious travel now a day is a very comprehensive and expansive terms, previously it was only used to account for the travel that is done for the purpose of religious pilgrimages but today the concept of religious travel has primarily centered on the notion of pilgrimage. Although this type of journey remains at the heart of religious travel in many ways, it is no longer the sole form or reference pointThe growing religious tourism sector is currently valued at US$18 billion per year with Hajj pilgrimage, Palestine, Jordan, Iran and other Middle Eastern desti nations identified as top draws for religious travel. With more than 300 million global travelers annually, the trustingness-based travel and hospitality market provides destination management organizations, wholesalers, suppliers, and travel agents unprecedented opportunities for new business avenues and clientele.Today, religious travel and hospitality is defined by, Travel to a religious destination, (Travelling to a religious destination is the most common and traditional substance of the phrase religious travel. It may be right to attribute the success of this form of travel to all the major religions of the world. The word that has been associated with religious travel is pilgrimage.) Travel to a religious gathering (. People of various faith and disciplines have been travelling and gathering for religious purpose and celebrations.), Travel with a missionary and/or humanitarian intent and Travel with a experience intent. (Most short-term mission trips typically last from se ven to 14 days. offer vacations are a related form of missionary travel) (World Religious Travel Association, 2010)According toaccording toprep.1. As stated or indicated by on the countenance of according to historians.2. In keeping with according to instructions.3... Click the link for more information.Kevin J Wright, president of the World Religious Travel Association (WRTA WRTA Worcester regional Transit assurance (Massachusetts)WRTA World Religious Travel AssociationWRTA westerly Regional Transmission AssociationWRTA Western Reserve Transit Authority (Northeast Ohio)), specialist travel providers need to develop the best possible travel experiences to leverage income from the three billion people nigh the world who phantasm their religious roots and faiths to the Middle East. Religious tourism is recognized as one of the most resilient markets in the travel industry, said Wright, who will be conducting a seminar entitled The New Era of Religious Tourism at Arabian Travel M arket the Middle Easts premier travel and tourism event to be held in whitethorn in Dubai. Saudi ArabiaSaudi Arabia(sd rb, sou-, s-), formally Kingdom of Saudi Arabia, kingdom (2005 est. pop... Click the link for more information.is the markets primary device drive backr, with the Islamic Hajj hajj(hj), the pilgrimage to Mecca, Saudi Arabia, one of the five basic requirements (arkan or pillars) of Islam. Its annual observance corresponds to the major holy day id al-adha, and Umrah The Umrah or (Arabic ) is a pilgrimage to Mecca performed by Muslims that can be undertaken at any time of the year. pilgrimages seeing the Kingdom bear over six million worshipers annually. The religious tourism industry in Saudi Arabia alone generates an estimated $7 billion annually and with the market expecting 20 percent growth in the coming years, tour operators, hotels and airlines are already tailoring products to tap into the religious market. Pilgrimages are not the sole driver of the religi ous market anymore and people of faith are more and more seeking greater quality travel experiences across the full spectrum of sub-sectors which drive the industry, Wright said. Mark WalshFor details of the dart player, Mark Walsh, please see Mark Walsh (Dart player)Mark Walsh is an entrepreneur, venture capitalist, and political activist... Click the link for more information., conclave Exhibition Director, Reed Travel Exhibitions organizer of Arabian Travel Market, which takes place from May 5 8, 2009, at the Dubai International Convention Exhibition Centre said the need to examine robust tourism revenue streams would be critical in ensuring the industry weathers the current economic downturn. Our industry is changing and tour operators and travel companies need to examine alternative business avenues to outgrowth profits during these challenging times. The religious tourism market is one such possibility and remains extremely relevant to Middle East based operations.Throu gh these informed discussion sessions, exhibitors and visitors alike can better make the business potential available to them. According to Wright, Jordan and Palestine are big growth markets. Ninety-five percent of tourism in Palestine is religion-based, while Jordan is targeting tourism revenues of up to $2.4 billion, per year, by 2010 over 60 percent higher than income generated in 2007, he said. Iraq is also emerging as a stark player in the sector. Areas of religious significance, such as Najaf home of the saintly shrine of the son-in-law of Prophet Mohammad already welcomes eight million pilgrims a year, but a new airport will increase inbound inbound1adj.Bound inward incoming inbound commuter train traffic.Adj. 1. inbound capacity to over 20 million. Citing Abu Dhabi Abu Dhabi(b thb, z-, d-), Arab. Abu Zabi, sheikhdom (1995 pop. 928,360), c. as an example of how feeder destinations can benefit from mass pilgrimages to Saudi, Iraq and other holy sites, Wright added Abu Dhabi International aerodromeAbu Dhabi International Airport (Arabic ) (IATA AUH,ICAO OMAA.. Click the link for more information.handled nearly 15,000 Hajjes last year, which increased its rider traffic rates to Saudi Arabia by 34.5 percent the potential for everyone in the region to benefit is astoundingastoundtr.v. astounded, astounding, astoundsTo astonish and bewilder. perk Synonyms at surprise.From Middle English astoned, past participle of astonen,.. Click the link for more information.. (Mojnews Agency, 2009)Leisure TravelLeisure travel may be defined as travel that is undertaken for pleasure and personal purposes. TheWorld Tourism Organizationreports top ten countries as the most visited from 2006 to 2009 by the number of international travelers. When compared to 2006,Ukraineentered the top ten lists, surpassingRussia,AustriaandMexico,and in 2008, surpassedGermany.In 2008, theU.S.displacedSpainfrom the second place. Most of the top visited countries continue to be on th eEuropean continent, followed by a growing number ofAsiancountries.In 2009,Malaysiamade it into the top 10 most visited countries list.Malaysiasecured the ninth position, just belowTurkeyandGermany. In 2008, Malaysia was in the eleventh position. BothTurkeyandGermanyclimbed one rank in arrivals, occupying seventh and eighth positions respectively, whileFrancecontinued to lead the ranks in terms of tourist arrivals. (UNWTO, 2009).USA earns the most revenue from leisure travel amounting to around $ 94.2 billion in the year 2009, followed by Spain with $53.2 billion, France and Italy with annual revenue of around $48.2 billion and $40.1 billion respectively. The other destinations that made it to the top ten lists include Chine, Germany UK, Australia, Turkey and Austria. It may be noticed in that the major income to the travel management companies in the leisure sector is through travelers traveling to the European Continent, as out of the 10 most visited countries seven are from the E uropean Continent (WTO, 2009)Key mathematical process Indicators for the Travel IndustryKey Performance Indicators an OverviewAccording to the KPI Library, Key Performance Indicators are measures of business performance also known as business or performance inflection, measures, ratios or hardly performance indicators. These performance indicators can vary from company to company and from industry to industry. The key performance indicators for the Travel Management Companies can be discovered by exploring the issues like price wars, safety and security issues, passenger demands and availability of information. These may also include supply chain information, inventory information, package tracking, flight/travel activities, and passenger details with preferences. Integration of key information and emphasis on customer loyalty also plays an important determination in the success of transportation and travel industry. (Gala, 2009)Given the high number of variables in the travel booking process, each travel agent has their own preferred way of doing things. A few KPIs, which you can be efficacious as a starting point and to trigger further belief as per MAIA Intelligence India, areSpecifications for service delivery requirements retort times to enquiriesTicket delivery arrangementsHours of service and out of hours arrangementsPayment methodological analysisVariety of packages providedFinancial Perspective Quantification of Financial aspect can be measured using the parameters like operating profit, % increase in be after sales, actual sales step-up ratio and % increase in travel and entertainment cost.Customer Services and Satisfaction Perspective Customer Services and satisfaction can be taken care of by employing metrics number of ancillary facilities, favorable review index, % increase in customer base and look/book index. privileged Operations Perspective Internal Operations can be known with number of booking channels, abroad to local bookings ratio and packaged to independent bookings ratio.Business Planning and egress Perspective Business planning and growth perspective can be gathered by assigning values to ticked delivery standards, disaster recuperation planning effectiveness, % increase in number of tour packages sold and number of staff retention initiatives taken. (MAIA,2009)Based on the key performance indicators and analysis of success accruing to travel management companies worldwide, the success factors for the travel management companies in Karachi can be evaluated.Consumer Preference of Travel Management Companies AbroadAccording to a report by the Hong Kong Consumer Council (1998), Travel agents in Hong Kong have go about difficult times because of increasing customer demands and internal competition in the industry. Complaints against travel agencies had increased by 12.4% for the year 1996/97, as compared with the previous year. The purpose of the study was to assess customers expectations and perceptions o f service provided by travel agents, and to explore how the service factors derived from the factor analysis were related to overall customer satisfaction.The results of the study as verified by an article published by Vincent C.S. Heung, Department of Hotel and Tourism Management at the Hong Kong Polytechnic University, showed that customers perceptions of service quality revolved around the availability of All Inclusive Package Tours. Out of a heart and soul of 183 Hong Kong consumers who were surveyed and asked to rate 29 attributes that might affect their choice of travel agency for all-inclusive package tours, the results showed that of the 29 attributes, agency reputation was rated as the most important attribute in travel agency selection, followed by pipeline communication and staff attitude. (Heung, 2000). In Karachi, since the total number of travel management companies operating are 245, heavy competition exists and agency reputation might b