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HANDLE WITH CARE- A short case on New Travel Packages


The travel companies are inventive in offering travel services to hold its client and to attract newer ones with new attractions in packages. Shopping has been a great attraction for people to travel destinations like Dubai, Singapore, Indonesia, etc.

“Go to Bangkok, buy two large screen LCD televisions and get your holiday free,” reads the advertisement pitch of a Kolkata-based tour company for four-day all-inclusive holiday packages for INR 25,000 per person.

The Electronics market of tourist countries like Thailand, Dubai and Singapore is 30-50% cheaper than India, and sales pitches like these on LCD and LED TVs have become common as what people save on high-end televisions actually makes up for most of their travel expenses.

The imported TV market in India accounts as much as 20% of India market and this offers fast and easy bucks to travel agencies pitching Indian consumers into such deals.

On one end this offers an opportunity for travel agency, business of visiting country and an experience for tourists on another end it is hurting electronic market in India. To control this activity, the India arms of TV-makers like Sony, Samsung, and Panasonic plan to limit support and service backup for imported models. “Such imported sets are disturbing the market equilibrium, sales plan and total legitimate channel, “Sony India sales head Sunil Nayyar said.

Sony and Samsung have decided not to provide any warranty, repair or installation support for imported sets and plan to exclude India from the purview of any international warranty coverage. Panasonic plans to charge the consumer for any component that needs to be replaced in the imported set even during its warranty period.
 

Answer the following Questions:

1.      Evaluate the package in offer for Indian customers by travel agencies?

2.      Why Electronic goods are cheaper in these countries (Singapore, Thailand, and Dubai)?

3.      Will limited or no warranty not hurt the consumer sentiment towards the brand?  Why or Why not?
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