Economics Project Report

Subject:- Managerial Economics

Guided By:- Dr. Megha Jain

Name of Students:-
Pooja Banodha

Itisha Pardeshi

Reeshika Mourya

Talha Parkar
 Table of Contents

Sr. No Contents
1 Executive Summary
2 Overview of Travel and Tourism Industry
3 Tourism Policy in India
4 Introduction About the company:
 About the Competitor
 About the Business
 Executive Summary

The main aim of this project was to understand the effects of the various economic concepts like
demand, supply, elasticity, etc. on a real business. Our group interviewed Mr. Karan Nainani,
Co-owner of "Xplor Travels". This report is based on the information given by him and the
findings concluded by us based on the research and understanding of his business.
 Overview of the Travel and Tourism Industry
Tourism is the most desirable human activity which is capable of changing the socio-cultural,
economic and environmental face of the World. Tourism is one of the largest and fastest-
growing industries in the world; it has the potential to influence the living pattern of
communities. It is one of the most important channels of cultural exchange which breaks down
the barriers between people of different parts of the world. It is the collection of activities,
services, and industries that deliver a travel experience including transportation, accommodation,
eating and drinking, establishments of retail shops, entertainment, business and other hospitality
services provided for individuals or groups traveling away from home. India is a diverse
Country, with over1.3billion people following various cultures, traditions, languages, festivals,
religion, etc. Equally diverse are the category of tourism activity that India offers to her people as
well as to the people across the world. Such diversity owes largely to the geographic, climatic
and traditional multiplicity seen in India's twenty-nine states and seven union territories. In India
tourism sector was considered an important sector only after the Independence and government
have introduced various schemes and plans for its development. The policy intervention in
tourism development is quite apparent. The tourism industry in India is on a great boom at the
moment. India has become a major global tourist destination and Indian tourism industry is
exploiting this potential to the hilt. Travel and Tourism Industry is the second highest foreign
exchange earner for India, and the government has given the travel and tourism
organizations/companies export house status.

The development of tourism industry requires tourism planning. Tourism Planning leads to
tourism development. Tourism Planning is the process of tourism development. Planning refers
to methods and means used in making decisions about the future. Tourism Planning helps in
problem-solving and arriving at decisions which help planner in achieving desired objectives.
Planning for tourism is very crucial. Several countries of the world, especially the developing
countries have lately realized the importance of tourism and benefits which it brings out. The use
of macroeconomic planning techniques for tourism sector is relatively new.The use of
macroeconomic planning methods for national economic development which have been largely
utilized since the end of world war second did not always cover tourism development as a
particular field. The increasing significance of tourism as a source of income, employment
generation, regional development, foreign exchange and major factor in balance of payment for
many countries has been attracting the attention of many governments as well as others with an
interest in economic development.
 Tourism Policy in India
 Tourism Policy in India Tourism emerged as the largest global industry of the 20th
century and is projected to grow even faster in the 21st century.
 India has immense possibilities of growth in the tourism sector with vast culture and
religious heritage, varied natural attractions, but a comparatively small role in the world
tourism scene.
 Tourism policy strengthens the tourism sector and envisages new initiatives towards
making tourism the catalyst in employment generation, environmental regeneration,
development of remote areas and development of women and other disadvantaged
groups in the country.
 It would lead to larger foreign exchange earnings and create conditions for more foreign
direct investment.
 Introduction About The Company

About the Entrepreneur:-

Mr. Karan Nainani is a commerce graduate and completed his professional education from
Maharaja Ranjit Singh College of Professional Sciences, Indore. He is an avid entrepreneur, and
owns a total of 3 business, one of them being "Xplor Travels". His also runs a coaching class
"Aspire and Malhotra Tutorials". Also he owns a franchisee of "Globalisers" in Bhawarkuwa.

About the Business:-

Mr. Karan Nainani started his business 3 years ago with his partner, Sagar Vejrani. "Xplor
Travels" founded on 10th January 2016, is a Tours and Travels business, which provides services
like flight, railway, bus bookings, Visa arrangements, and holiday tours. The business when
initially was off to a slow start but gradually picked up pace in order to meet the requirements of
the market. "Xplor Travels" is mainly on holiday tours. It mainly plans tours for families and
couples. All the arrangements from departure from hometown to arrival at place of visit, they
stay at hotels, food as per the traveler's requirements, vehicle arrangements for local travel and
sightseeing.

According to him traveler should now focus more on rare destinations than the regular ones. The
travel industry don t have any variable or fixed inputs, they have an HR manager who deals with
the customers directly. The service focuses more on promotions and salaries.

This industry works on customer satisfaction and human behavior and timely responses. Their
work starts from arrangements of passports and visa and then booking tickets according to the
customer time suitability then fixing the menu according to requirements of each individual
proceeding with hotel arrangements and facilities or service they would require further (e.g.: cab,
a tourist guide) all these process end only when the customer is back from the vacation only.

They have an oligopoly market which makes it highly competitive in nature. Everything depends
on customer spending power as they choose the agents for the same accordingly.

.
Employees

1 for visa assistance

2 for operational activity

1 for collection

1 accountant

1 HR manager

Competitors

 Ocean trip makers

 Apka Tripwala
 Tiger International Tours and Travels
 Jai Malhar Tour and Travels
 RK Travels
 Feel India Tours and Travels Pvt.Ltd
 Shree Vijaylaxmi Travels
 My Tours and Travels
 Aditya Tours and Travels
 Charvi Tours and Travels Pvt.Ltd
 Priyansh Tours and Travels
 Sudeep Travels and Holiday
 Om Sai Tour and Travels
 Goibibo
 Make my trip
 Comparison with Competitors
After gaining a brief understanding of the tourism industry and also of “Xplor Travel” we can
conclude certain solid points about competition faced by Mr. Karan Nainani i.e. “ Xplor Travel”.

 Competition faced by local firms isn’t much harsh rather faced by Indian online travel
companies .
 Fighting a competition from locals is much easier but cut throat competition is given by
prices of online companies.
 They have an undue advantage as they are directly in touch with the customers which
gives them a lot of scope of improving each day , uninterrupted feedback, solving the
problems in no time , making brand value, making sure that customer is satisfied all this
contribute in future loyal customers.
 Today customers are highly aware and knows the lowest prices available henceforth it
makes tough for them to beat those quoted price and offer the best offer. This is the real
challenge for them today.
 Customers are more closely in touch with them which makes it easier for them to give
them best services and great customer satisfaction as they get a great fundamental
understanding of how customers are, what exactly they need and forming they the trip on
such detailed information.