A Study of Growth Barriers Faced by Tour and Travel Agencies in Karnataka

Volume 11, Issue 2, 2026

International Journal of Commerce and Management Studies, ISSN 2456-3684

Paper Title

Author Name and Affiliation

Dr. Smitha L

Associate Professor, Department of Commerce, Government First Grade Women’s College, Tumakuru, Karnataka, India

Abstract

The travel and tourism industry are a significant contributor to economic growth, employment generation, and socio-cultural development. Karnataka, with its rich heritage, diverse landscapes, wildlife, coastal attractions, and cultural resources, possesses immense tourism potential. However, travel agencies in the state face numerous challenges in effectively promoting tourism and sustaining their growth. The present study examines the influence of soft barriers (psychological factors) and hard barriers (practical and operational factors) on the development of tours and travel agencies in Karnataka. A descriptive research design was adopted, and primary data were collected from 402 travel agencies using a structured questionnaire based on a Likert scale. The Yamane formula was used to determine the sample size, and data were analysed using multiple regression analysis. The findings reveal that soft barriers have a stronger influence on the development of travel agencies, explaining 88.6% of the variation in development barriers (R² = 0.886), while hard barriers account for 73.8% of the variation (R² = 0.738). Among the soft barriers, cautious travel decision-making, concerns about inadequate tourism infrastructure, communication and cultural challenges, information overload, and lack of confidence in travel service providers emerged as significant factors. Regarding hard barriers, weak marketing and promotional efforts, inadequate infrastructure and accessibility, restricted online visibility, compliance-related challenges, rising operational costs, weak stakeholder collaboration, and deficiencies in essential tourist facilities were identified as major impediments. The study concludes that both soft and hard factors (Barriers) significantly affect the growth and competitiveness of tours and travel agencies in Karnataka. It emphasizes the need for improved infrastructure, stronger destination branding, enhanced digital marketing, transparent service delivery, stakeholder collaboration, technological adoption, and supportive government policies. Addressing these barriers can enhance tourist satisfaction, increase visitor arrivals, strengthen travel agencies, and contribute to the sustainable development of Karnataka’s tourism industry and overall economic progress.

Keywords

Soft Factors, Hard Factors, Barriers, Tours, Travel Agencies, Karnataka

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DOI

DOI: 10.67061/ijcams.2026.vol.11.issue.02.4079

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