Gap analysis of travellers’ expectations,
“A case on Cox & Kings in Pune”
Kundan Kumar, MBA II Marketing student
Anupama Tadmarla, Faculty member IBS Pune
Institute and address for communication:
IBS Business SchoolSurvey No. 174,175,DSK Sunderbann Business Hub 1,(Opp. DSK Toyota Showroom, Pawar Public School)Hadapsar, Pune- 411028, Maharashtra.
E-mail: [email protected]
The aim of the study is to analyse the expectations of traveller towards the service provided by travelling company, a case on Cox ; Kings in Pune. A survey has been conducted using questionnaire through online method to gather information of consumer choice and satisfaction of the service. Using various data analysis tools ; techniques like descriptive, factor analyses, the behaviour of targeted consumer has been analysed. The demographic variables like income, age, education etc along with specific variables like safety online booking, courteous behaviour of the employees, offers, promises of the service, comfortability etc are taken for study. This study helps in finding out customer preferences and perceptions from online apps and websites. The analysis can provide the overview of the expectations of travellers and also what they have perceived from the services of cox and kings. This research helps in knowing the new areas regarding behaviour of travellers to enhance customer satisfaction in future which in turn helps the company to improve service and helps in the expansion of business. The analysis can provide the overview of the expectations of the consumers from the services of travelling company.
Key words- service quality, consumer behaviour, expectations of consumers.
Travel agencies play a very critical role in the service market. They act as mediator between business entities (that provides tourism services) and tourist. Fastest growing internet population currently 323 million expected to grow up to 580 million in 2018 according to report by Boston consulting group, is a significant indictor of high potential for growth of online truism services. According to IBEF report the Indian travel market will be US $ 40 billion by 2020. Tourism in India is one of the key growth factors of services industry in India. The rich culture and heritage, vast ecology terrains and places of beauty give a significant potential to tourism industry.
Tourism sector is also a large employment generator in India. The phenomena of travel agency were first initiated in 2000 in Indian market with start of Makemytrip. But due to lack of awareness and low infrastructure the industry has not test a proper growth in initial stage. Now having greater access and acceptance of consumers the industry is growing at its faster pace. The initial focus of these agencies was on airline ticketing but now the business is extended to every sector (like hotels, on road transportation etc.) which is related to tourism.
In India tourism is an essential industry creating more than Rs.77591 crore (US $ 15.56 billion) of significant remote trade income. Subsequently significance of outside visitor can’t be denied in India. Indian government is attempting its best to pull in outside visitor through its mind-boggling India program due to which development rate of remote explorers’ entry in India is increasing at faster rate. This development is apparent when contrasted with world’s tourism industry with a development rate of 4.6% in number of worldwide visitor entry. In India set out operators are endeavouring to give consumer loyalty through expanding administration quality. In this way the point of the examination is to quantify the consumer loyalty of the remote explorers in India with the voyaging offices. For this instrument created via Caro and Garcia, 2008 is utilized to quantify the administration nature of the movement office, it has been changed according to the need of our exploration. They discover three measurements with seven sub measurements which are (1) Personal Interaction – Conduct, Expertise and Critical thinking (2) Physical Environment – Equipment and Ambient Conditions (3) Outcome – Waiting Time also, Valence.
India is one of the most loved traveller’s destinations around the globe, as indicated by world travel and tourism board (WTTC). The Travel and Tourism Competitiveness Report by World Monetary Forum, Indian travel and tourism industry are expected to grow at 12% CAGR over next 3 years is one of the fastest growing tourism sectors after China 16% at first place. India is estimated to establish itself as third largest travel ; tourism industry by 2028 in terms of direct and total GDP, a 2018 economic impact report WTTC.
Challenges for travel agency in India:
Tech infrastructure: very slow response for users’ access from portal.
Customer acceptance: In India most of the customers are not aware about how to use such online platform of company.
The various government initiatives for tourism sector over past few years also leads to growth of various start-ups along with global travel giants. The online tour and travel market in India are alone expected to account for around 50% of total translation by 2020. One of the major factors for the growth of tourism sector is India’s increasing disposable income and rising middle class. The government budget for integrated development of tourist circuits under Swadesh darshan also boost the tourism sector.
But in this highly competitive and digitalised environment it is critical for travelling agency to understand the factors which affects customer satisfaction so that they can justify the improvement area. on-line booking administration will develop to be an imperative part along travelling industry chain. It has turned into a critical issue for on-line travel organizations to consider how to enhance on-line booking services and consumer loyalty. Thus, these days, the research on on-line booking significantly centres around fulfilment assessment with few on connection between online travel operator which benefit with consumer loyalty. Thus, it has been overserved that there is a gap between client perceived and expected administration which results in the establishment of a conceptional model of service quality.
Cox and King ltd. is a major holiday and education travel company which operates in 22 countries across 4 continents. It has been in operation since 1758 with vision of Sir Richard Cox, headquartered in Mumbai, India. Over past three decades it has modify itself into extended operation, multinational travel conglomerate with a new age global customer centric approach. Cox ; Kings four operation key verticals are Education tour, Leisure tour, Hybrid Hotels (Meininger) and outsourcing business.
It is one of the founding members of WTTC (World Travel ; Tourism Council). Cox and Kings is among the biggest players offering a scope of pro alternatives. Creative Packaging, pricing and promoting have been the signs of its prosperity throughout the years. Among its numerous items are Leisure Travel – Domestic (Bharat Deko), Inbound and International, Corporate Travel, MICE, Trade Fairs, Visa Processing and Foreign Exchange. The Outbound Tours are isolated into Duniya Dekho (escorted visits), FlexiHols (altered visits), Luxury Escapades (one of a kind and lavish travel) and NRI (considering Indians over the world).
The Corporate or Business Travel has seen a change from the traditional travel organization mode to add up to movement administration mode. Corporates are searching for incorporated travel arrangements and in this manner limit the aggregate travel spending plan for the corporate while keeping up superb quality model. The Corporate Travel advertise is a profoundly focused market with the nearness of both household and global travel organizations. We trust our image review is high among more than 200 corporate customers, including real household and multinational organizations. It is subsidiary with Radius Inc., the world’s biggest conglomerates in business travel, as their Indi an accomplice. Utilizing the association with Radius, Cox and Kings can offer travel satisfaction service to corporate customers in India and abroad.
To provide quality service to its customer it is expanding its franchisee chain in various cities. The Company is leaving on an aspiring venture to meet the best of substance and innovation to convey clients a consistent experience of booking a completely customizable bundle of package online at a magnificent cost. Cox and Kings Ltd.’ incomes from proceeding operation increased by 7% y-o-y to 2,03,510 lacs in FY16, while EBITDA increased by 11% y-o-y to 82,379 lacs. PAT came in at 5,394 lacs (when contrasted with a net benefit of `9,178 lacs in FY15). Cox and Kings is eyeing over 12 per cent expansion in revenue this financial year on the back of growing domestic travel industry in FY 18.
India is an exceptionally untapped market for outbound tourism. Just 19.5 million individuals voyaged abroad in 2014 as per the Skift Travel and Tourism Intelligence Centre (TTIC) report. A substantial extent of these voyagers incorporates contract workers going abroad, business voyagers, students and Indians visiting loved ones abroad and so on.
India is presently the world’s fastest developing economy and we expect a generous overflow into outbound travel furthermore, tourism. It is seen that individuals of new generation are progressively sure about going outside India. Tour packages remain a prominent decision for an assortment of auxiliary reasons; viz. time-and-cost productivity, a feeling of security, sustenance inclinations, arrangement of united administrations, for example, forex, protection, visas and so on. There are numerous reasons why Cox and Kings offers awesome incentive to clients – its Duniya Dekho image has exceptionally solid customer recall. It endeavours to guarantee the most minimal conceivable cost for its clients by utilizing its purchasing power with sellers to anchor the best deals. it gives finish end-to-end arrangements and bother free travel to its clients, which empowers them to make the most of their vacation to the most prominent conceivable extent. We likewise give customized solutions to suit the necessities of specific networks, for e.g. AmhiTravhelkar focused at the Marathi people group and Gaurav Yatra focused at the Jain people group. Our Bharat Deko scheme is a market pioneer and holds critical brand value among the mid to mass market. In the extravagance fragment, our Deccan Odyssey extravagance prepare encounter is an investigation of India’s most energetic regions, immortal customs furthermore, unmatched wildlife and social decent diversity.
Cox ; Kings steps to fascinate the customer with its new initiatives which are Gateway Goddess propelled: Cox and Kings propelled a much-anticipated ladies elite travel item called Gateway Goddess. With a string of one of a kind tour agenda, Getaway Goddess concentrated on ladies from all walks of life. Being Young: Escorted amass visits for seniors and Bhaktiyatra: Pilgrimage visit bundles. Cox and Kings linkup with banks to dispatch ‘Save Now, Travel Later’ program for tour on EMIs. The program made travel bundles moderate for clients through EMI instalment by opening Recurring Deposit account with banks. The plan likewise let the clients acquire interest. Foreign and also household trips were up for grab under the ‘Save Now, Travel Later’ program. In the event of possibilities, the client could likewise drop the trek with NIL wiping out cost if intimated within 9 months of opening the bank account.
In 2016 the organization has won a series of awards and among them are the World Travel Awards for Asia’s Leading luxury Tour Operator, India’s Leading Travel Agency and India’s Leading Tour Operator. Cox and Kings was picked as ‘Best Tour Operator’ at Travel + Leisure – India’s Best Awards 2016. It likewise won Hospitality India Travel Award for Best Domestic Tour Operator and Best Experiential Travel Company. Cox and Kings Trade Fairs was perceived as Champions of ChinaPlas for 2016, fourth time in succession. Cox and Kings was voted ‘India’s Favourite Tour Operator’ at Condé Nast Traveller India Readers’ Travel Awards 2016. Recently, the organization additionally scooped the ‘Magnificence in Outbound Tour Operations’ honour at the prestigious SATTE Awards 2017 held in Delhi, and the ‘Best Tour Operator: Outbound’ honour at Lonely Planet Travel and Lifestyle Leadership Awards in Mumbai. To ensure flawless management and services Cox ; Kings ensure comprehensive training program for franchisee employee. For retaining the customer relationship, the company ensure a sophisticated customer relationship management system
The CRM is a user-friendly database system that is designed to analyse your customer’s needs and wants.
The system extracts customer data from your booking system and maintains a complete detailed history of all your customers.
It allows you to identify and match opportunities to customers most likely to respond to targeted offers.
The CRM marketing program includes all our own nationally co-ordinated direct offer mails plus a personalised cover letter written as if it comes from you and displays your shop’s contact details.
The CRM program is also an invaluable business tool for winning and servicing your business. It even produces reports which aid you in identifying areas of opportunity and increasing your revenue and profitability.
On the web and Offline Medium will be utilized for the showcasing of Cox and Kings Products and to make the brand mindfulness and connect with the customers. National Level and in addition Regional Marketing Campaigns will be received for making the Cox and Kings brand awareness. But the customers have different perception and preferences due to Increasing players in travel industry. There has always been a gap between the management marketing strategy and consumers expectations. To bridge up the gap it is important for the industry to understand the consumer requirement by analysing their buying behaviour. Thus, the analysis has been done in such a way so that the views of the travellers are being analysed about what they really want form the company. Although this paper will not tell you, how to manage the service parameter but it will brief about the gap between the two with reference to Pune.
Research on consumer satisfaction is regularly intently connected with the estimation of service quality (Anderson and Sullivan,1993; Cronin and Taylor,1992; Bittner and Hubbert 1994; Taylor and Baker,1994; Rust and Oliver, 1994; Levesque and Mcdougall,1996). Most investigations have estimated benefit quality by repeating and adjusting the SERVQUAL display (Fick and Ritchie,1991; Karatepe and Avei, 2001; Lewis,1987; Saleh and Rayan,1991). In any case, there is a need to create benefit quality estimates that are industry and culture particular (Babacus and Boller,1992; Babacus and Mangold 1992; Carman, 1990; Mc Alexander, Dennis, and Koenig,1994; Keratepe et al.,2005; Mattila,1999). Henceforth in our examination scale created via Caro and Garcia,2008 is utilized to quantify benefit quality measurements in voyaging organizations.
According to expectancy disconfirmation hypothesis Oliver, 1980, 1981 clients see benefit quality as the distinction between the real service execution what’s more, their expectation. Disconfirmation is sure when benefit execution surpasses desires, and negative when the inverse is the case. On the off chance that desires intently coordinate execution, an impartial inclination is created Cadotte, Woodruff and Jenkins, 1987. Anticipation disconfirmation hypothesis is regularly considered inside a more extensive model of service utilization Johns, 1994 condensed in Figure 1. The right half of the outline depicts the service conveyance process; that on the left service utilization. Five key ‘gaps’ must be shut before high quality service can be conveyed and there is a further disconfirmation hole (No.6) between purchasers’ discernments and desires whereupon seen benefit quality and consumer loyalty depend.
although several hypotheses exist, identifying with client benefit quality see review by Yi, 1990 anticipation disconfirmation is the most agreeable reason for really estimating service quality. Parasuraman and associates Parasuraman, Zeithaml and Berry, 1986; Parasuraman, Berry and Zeithaml, 1991 have delivered an institutionalized survey, known as ‘SERVQUAL’, which estimates respondents’ ‘desires’ and ‘execution’ scores, and figuring service quality as the contrast between them. This instrument has been broadly embraced all through the service segment. It is made out of 22 things, isolated into five basic measurements: physical assets, dependability, responsiveness, confirmation, and compassion Parasuraman, Zeithaml and Berry, 1986. The five measurements were distinguished experimentally utilizing factor examination and are viewed as particular properties, contributing autonomously to clients’ evaluations of service execution. The SERVQUAL instrument has been utilized in a scope of service settings, including travel operators Lam and Zhang, 1999 visit managing Luk, 1997 and friendliness arrangement Stevens, Knutson what’s more, Patton, 1995.
Mohamed Abd Alla (2007), Service nature of movement operators: The view purpose of vacationers in Egypt, the primary discoveries of the examination is there is an eminent hole between client desires and recognitions comparing to the service quality presented by movement specialists, demonstrating that the clients’ desires for the service quality were not met. He recommended five components named responsiveness, unwavering quality, sympathy, assets and corporate picture and tangibility. Parasuraman et al. (1985), Identified ten segments of SQ: unwavering quality, responsiveness, ability, get to, cordiality, correspondence, validity, security, understanding, physical assets. In their 1988 work these parts were fell into five measurements: unwavering quality, affirmation, physical assets, sympathy and responsiveness. Dependability, physical assets and responsiveness stayed particular, yet the remaining seven parts fallen into two total measurements. Confirmation and sympathy.
Service quality has been estimated by assessing the holes between clients’ desires with respect to benefit and, separately, their apparent execution of the administration; certainly, if desires outperform apparent exhibitions, benefit quality is said to be insufficient, and, thus, clients disappointed (Parasuraman et al., 1985; Lewis and Mitchell, 1990). This speaks to the principle theory of the SERVQUAL display (Parasuraman et al., 1985, 1988) which has been the most well-known technique for benefit quality assessment for a very long while. Albeit at first the model included ten quality qualities (physical assets, dependability, responsiveness, competency, civility, affirmation, validity, security, access, and comprehension), after a time of refinements it came to incorporate a lessened arrangement of five measurements: effects (physical offices, hardware and appearance of faculty), unwavering quality (capacity to play out the guaranteed benefit constantly what’s more, precisely), responsiveness (readiness to encourage clients and give incite benefit), affirmation (information and cordiality of workers and their capacity to motivate trust and confidence), and sympathy (minding and individualized consideration that the firm gives to its clients). Because of feedback coordinated at SERVQUAL, different models for benefit quality evaluation were conceptualized and embraced, increasing huge consideration, both in hypothetical and functional settings.
Parasuraman, Zeithaml and Berry had a profound meeting on the service in bank, Visa organization, value specialist, upkeep part, they found there is a hole between client’s apparent and expected service level and the size and direction of the Gap will impact benefit quality. Thus, they set us a service quality Gap demonstrate, in a word, PZB show which is made out of five service quality Gap:
Gap One: Discernment Gap between client’s expectation on service and service provider for client’s desire;
Gap Two: The Gap between benefit provider’s attention to customer expectation and exchanging the awareness into benefit quality standard;
Gap Three: The Gap between benefit quality standard and the accessible expectation;
Gap Four: The Gap between the accessible service and outside correspondence for false data from notice and other showcasing approaches;
Gap Five: The Gap between client expected service level and experienced service level.
Gap five will be influenced by previous four Gap, so it very well may be viewed as the capacity of Gap one-Gap four. Display PZB characterizes clients view of different service quality (Q) as the Gap between apparent service level (P) and expected service (E). Consequently, keeping in mind the end goal to more readily benefit quality, benefit provider should begin from knowing client anticipated that service would limit the gap by enhancing different service quality.
The study is exploratory and quantitative in nature and was conducted to explore the gap between expectation and perception of travellers towards the service of Cox ; Kings. Primary data has been collected through a designed questionnaire keeping in mind the various aspects of service in Pune area. A 5-point Likert scale was used to measure the perception of respondents. The statistical tools like factor analysis, Anova and descriptive statistics were used to analyse the data with SPSS. T-test was also performed to measure the variation in travellers’ expectation and perception in terms of gender. Research is conducted to study the perception, preference and review of customer through a set of question. To analyse the factor that encourage the consumers to engage in online transactions with the organisation. And to analyse the behaviour of consumer towards online service of the company.
H0: There is no significance difference between travellers’ expectation and perception about various Cox ; Kings services.
H1: There is significance difference between travellers’ expectation and perception about various Cox & Kings services.
Objective of the Study:
The study is exploratory in nature and aims to understand the perception of travellers towards the services provided by Tour & Travel company Cox & Kings.
The research has been conducted to:
To understand the awareness levels of the respondents towards the Cox & Kings services.
To know factors that influences the customer’s choice.
To identify the customer satisfaction level with regards to the service.
The Study in spite of all the precautions exercised has certain limitations:
The sample size is limited in nature.
Time restrictions restricted the study to the smaller number of respondents.
Biased element on the part of the respondents cannot be ruled out completely.